1. The total trading volume of the Shanghai and Shenzhen stock exchanges on August 4th was 2.2 trillion yuan, rebounding from the lower end of the year's fluctuation range. However, it has not yet broken free from the downward trend since June, marking the seventeenth consecutive trading day below the 20-day moving average (2.5 trillion yuan).
2. On August 4th, the ratio of margin buying to A-share market capitalization, a measure of leverage, was 7.5%. This fell back to near the lower limit of the one-year fluctuation range from the high point reached yesterday since October of last year. It has been fluctuating around 10% this year, but the volatility has intensified significantly 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.
