1. The total trading volume of the Shanghai and Shenzhen stock exchanges on August 25th was 1.83 trillion yuan, breaking the low for the month and hitting a new low since April. It remained below the 20-day moving average (2.3 trillion yuan, which has fluctuated around this average since August) for the fourth consecutive day.
2. On August 25th, the ratio of margin buying to A-share market capitalization, a measure of leverage, rebounded to 9.29%. It had been fluctuating around 10% this year, but since May, the fluctuation range has widened to 7.25%-12.21%, indicating significantly increased volatility.
-------- 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 higher market activity, potentially approaching or in the midst of a bull market. A growth rate exceeding 15% indicates a risk of market overheating, requiring vigilance.
