1. The total trading volume of the Shanghai and Shenzhen stock exchanges increased for the third consecutive day to 2.55 trillion yuan on July 31st, marking the fifteenth consecutive trading day below the 20-day moving average (2.57 trillion yuan), although it is gradually approaching it.
2. On July 31st, the ratio of margin buying to the total market capitalization of A-shares, a measure of leverage, fell to 7.60%, near the lower limit of its fluctuation range over the past year. It has been fluctuating around 10% throughout the year, with significantly increased volatility since May.
-------- Note: 1. Trading volume reflects the views of major institutions, speculative funds, and retail investors on A-shares. Volume above the moving average indicates increased total trading volume and a more optimistic market sentiment, while volume below the moving average indicates decreased total trading volume and a cooling market sentiment.
2. Since 2015, the leverage level of A-shares has mostly remained between 6% and 10%. A leverage ratio exceeding 10% indicates high market activity, potentially approaching or in the midst of a bull market. A leverage ratio exceeding 15% indicates an overheated market risk, requiring caution.
