The Shanghai Stock Exchange Index plummeted 8.5%, the biggest drop in nearly eight and a half years, reappearing the 1,000-share limit

Shen Zhengyang, an analyst at Northeast Securities, commented when talking about the late diving, that if there is no incremental funds, whoever controls the fundamentals, the game of stock funds is like playing mahjong, as long as you look at the opponent's card.

Qilu Securities analyst Luo Wenbo pointed out that short-term arbitrage people do it with a rebound rather than a reversal mentality, so it is normal to flee once they fail to see a new information policy.
He also believes that there are no hot spots that can be speculated on weekends, and it is normal for the market to be confused.
In addition, the decline in commodity markets, emerging market currencies, and external stock markets last weekend made the market more panic.
In the case of large accumulated profits, it is easy to flee in trouble.
Today's three major index futures contracts fell sharply again, of which all four IC contracts fell by their limit.
The overall basis discount has been extended and the range has expanded.
Can this be understood as investors' extreme bearishness on the market outlook, leading to a substantial discount on the futures index, which in turn triggers a correction in the spot market? In this regard, CITIC Futures researcher Zhang Ge believes that this cannot be simply concluded, and multiple factors must be considered: First, for ICs with a large discount, the proportion of corresponding constituent stocks suspended for trading is still about 20%, which is representative of the index.
It can be considered a test; second, although the transaction holding ratio is still relatively active, the holdings of the three major contracts have decreased significantly compared with the previous ones; third, IC and IH are newly listed contracts.
It is normal for the margin volatility to be higher than that of IF; she also believes that after this round of sharp decline, market risk hedging demand will inevitably increase, and the short order formed due to hedging demand will also cause the basis to fall.
The two cities once again saw a limit of 1,000 shares today, with less than a hundred stocks rising, and some leading stocks such as CITIC Securities, Bank of Communications, and Sinopec all closed their limit.
The Shanghai and Shenzhen 300 Index closed at 0.
00 points, down 8.
56%; the main August contract of the Shanghai and Shenzhen 300 Index futures closed at 3,647.
8 points, down 10.
00%, and 1,707,000 lots were traded.

"The article comes from Huitong.
com.
"