1. The total trading volume of the Shanghai and Shenzhen stock exchanges on August 18th was 2.40 trillion yuan, a slight increase from the previous trading day, trading above the 20-day moving average (2.33 trillion yuan).
2. On August 18th, the ratio of margin buying to A-share market capitalization, a measure of A-share leverage, rebounded rapidly to 9.8%. It has been fluctuating around 10% throughout the 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, 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.
