The recent sharp fall in US-listed stocks triggered market concern and transmitted this negative sentiment to the A-share and Hong Kong stock markets, resulting in a rapid decline in the stock market. After the sharp fall in the stock market, the market began to worry about the loss of the bull-bear dividing line and risks such as the unwinding of financing positions.

However, from the policy level, after the sharp fall in the stock market, it began to show signs of a warm wind, and the Chinese stocks that had fallen sharply for many days also began to rebound sharply, and the A50 index also showed a trend of rapid rise. this series of market phenomena have brought some room for imagination to the A-share Hong Kong stock market on July 29.

On March 9 this year, the Shanghai Composite Index hit a low of 3328.31 and remained for more than four months. On July 28th, the Shanghai Composite Index hit 3312.72 points, slightly lower than it was on March 9 this year. However, this index has fallen below the annual line, and the A-share market is currently engaged in a fierce game of competition between bulls and bears.

Not only the Shanghai Composite Index, but also for the Shenzhen Composite Index, it is also in the process of contending for the annual line. Above the annual line, it means that the stock market is running in a bull market, while below the annual line, it means that the stock market is in a state of bear market adjustment. Under the background of the registration system being rolled out in an all-round way, the A-share market will actively keep the market index above the annual line to maintain the smooth progress of IPO.

In the stock market, it is essentially a process of wealth redistribution. However, it can also be vividly described that stock investment is also a process of information game. In short, who gets the advantage of market information, who is more likely to get the initiative, whose information lags behind, is naturally easy to become the object of market losses.

Behind the accelerated decline of the A-share market, on the one hand, the market index hit a new low for the year, and on the other hand, foreign investors bought on a large scale. On July 28th, the scale of foreign capital sweeping goods reached more than 8 billion yuan, which more or less sent a more positive signal to the market.

Foreign capital has the power of foresight in the A-share market, whether it is capital advantage or information advantage, it will have greater advantages than ordinary investors. It is believed that the operation of foreign investors to increase their positions against the trend is also inseparable from their prescient sense of smell. Or, they have gained more initiative in the information channels, which may indicate that there may be a retaliatory rebound in the A-share market after a sharp fall.

Since the official opening of the Shanghai-Hong Kong Stock Connect, the trend of foreign investment has become a must-see market indicator for A-share investors. In the process of continuous decline in the market, if there are signs of sustained large net inflows of foreign capital, it may indicate that the market inflection point is coming. On the other hand, if the market continues to be strong, but there is a sustained large net outflow of foreign capital, then the stock market may soon have a phased turning point.

Although the continuous net flow of foreign capital may not have absolute accuracy, after years of market verification, the large net flow of foreign capital has become an important weather vane of the A-share market. In the final analysis, the stock market is still a process of market information game, and it is easy for the party with information advantage to gain more active investment advantage.

From the analysis of the price performance of A50 index and Chinese listed companies last night, we also took the lead in the trend of retaliatory rebound, which will directly affect the opening trend of the A-share market, and it is estimated that there is a higher probability of opening sharply. However, for the market, the most concerned issue is that the A-share market on July 29 will open high or go high or low?

The market itself has a certain degree of unpredictability, and the stock market ultimately operates according to its own operation law. However, to think from another perspective, in the context of "risk prevention and bottom line" and the rising expectations of the Federal Reserve to raise interest rates, it is very difficult for the market to rise sharply unilaterally, even if the market opens high and goes high. It does not necessarily mean that the market can directly hit 3731 points, or even 4000 points.

Therefore, even if there is a retaliatory rebound in the A-share market in the next few trading days, or even promote the market index to return to a high near 3500, investors need to maintain a certain degree of rationality. In a volatile market environment, when the stock market falls irrationally, you can choose to be moderately bold, but after a sharp rise in the stock market, you need to be as cautious as possible.