On September 18th, the proportion of A-share stocks with a turnover rate below 3% slightly decreased to 71.55%, while the proportion of stocks with a turnover rate above 5% slightly rebounded from a two-year low to 14.93%, but remained below the threshold level. Overall, the turnover rate has temporarily stopped falling, but whether it can break the downward trend since July remains to be seen.
-------- 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 point, making a reversal or rebound 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 will emerge in the market, making the market trend sustainable. During a bull market, this indicator will consistently remain 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 raise concerns about the risk of a pullback after a surge.
