1. On August 3rd, the total trading volume of the Shanghai and Shenzhen stock exchanges fell rapidly after touching the 20-day moving average, dropping to 1.99 trillion yuan, marking the 16th consecutive trading day below this average (2.52 trillion yuan).
2. On August 3rd, the ratio of margin buying to the total market capitalization of A-shares, a measure of leverage, surged to 12.21%, the highest since October of last year. It has fluctuated 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 a bull market. A leverage ratio exceeding 15% indicates an overheated market risk, requiring caution.
