On August 21st, the proportion of A-share stocks with a turnover rate below 3% rose to 66.71%, a new high since April; the proportion of stocks with a turnover rate above 5% slightly decreased to 17.79%, again approaching the threshold level; overall, the turnover rate continues the downward trend that began in July.
-------- Note: 1. When the proportion of stocks with a turnover rate below 3% increases, especially near historical highs (dashed line in the chart, representing a reversal trend), it means the market is likely to encounter a temporary low, making a reversal or rebound more likely.
2. When the proportion of stocks with a turnover rate above 5% remains above the threshold (dashed line in the chart), a strong profit-making effect emerges in the market, making the market trend sustainable. During a bull market, this indicator will remain consistently above the threshold, leading to a broad-based market rally; while during a bear market, this indicator is mostly below the threshold, and occasionally exceeding the threshold should be viewed with caution due to the risk of a pullback after a surge.
