1. The total trading volume of the Shanghai and Shenzhen stock exchanges on August 5th reached 2.66 trillion yuan, rebounding from the lower end of the year's fluctuation range and initially rising above the 20-day moving average (2.5 trillion yuan), the first time since July 10th.
2. On August 5th, the ratio of margin buying to A-share market capitalization, a measure of leverage, rose to 7.92%, hovering above the lower limit of the one-year fluctuation range. It has been fluctuating around 10% throughout the year, but 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, A-share leverage levels have 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.
