On July 30th, the proportion of A-share stocks with a turnover rate below 3% rose to 71.16%, a new high since April 24th of this year. Since May, the proportion of stocks with low turnover rates has generally shown a fluctuating upward trend. The proportion of stocks with a turnover rate above 5% was 20.83%, a new low since April 17th, indicating temporarily low market activity, although it remains above the threshold.
-------- Note: 1. When the proportion of stocks with a turnover rate below 3% increases, especially near historical highs (dashed line in the chart, representing a reversal trend), it means the market is likely to encounter a temporary low point, making a reversal or rebound likely.
2. When the proportion of stocks with a turnover rate above 5% remains above the threshold (dashed line in the chart), a strong profit-making effect emerges in the market, making the market trend sustainable. During a bull market, this indicator will consistently remain above the threshold, leading to a broad-based market rally; while during a bear market, this indicator is mostly below the threshold, and occasionally exceeding the threshold should be viewed with caution due to the risk of a pullback after a surge.
