On August 31st, the proportion of A-share stocks with a turnover rate below 3% slightly decreased to 68.16%. Although this week saw a new high since April, there are signs of leveling off in recent trading days. The proportion of stocks with a turnover rate above 5% further decreased to 16.13%, initially falling below the threshold and approaching the more than one-year low reached in April. 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% rises to near a medium- to long-term high, 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.
