Today, history was witnessed once again as the opening index literally hit its upper limit! A record high of 1,500 individual stocks reached their daily limit up, and nearly 800 remained so at the close. The two markets saw a staggering volume of 3.45 trillion yuan, setting a new record for A-share daily transactions – this is just too intense.

However, expectations were set too high, leading to significant intraday volatility. The index once fell nearly 10%, almost turning negative! But it was pulled back without any real danger. Particularly, the ChiNext and STAR Market soared by 17%, and these are indices, which is mind-boggling.

In the past, when individual stocks hit their upper limit, it could bring joy for several days. Now, a 10% increase feels embarrassing because there are 20% and 30% increases, and new stocks that can multiply by ten in just four days! This is by no means a normal market; it's overly exuberant.

Aigu Jun's view is that this is definitely a bull market, beyond any doubt. But the first round of this crazy bull market is nearing its end. Today's sharp drop in the Hong Kong stock market set an example for the mainland market. Those who are making money should not get too complacent; take it easy.

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Remember one thing, what is the purpose of this bull market? It is to repair everyone's balance sheets and stimulate consumption. Therefore, the authorities will absolutely not allow the 2015 leveraged bull market bubble to burst again. The current economic environment also cannot afford another crazy bull market followed by a mess. Only a slow bull market aligns with the national interest!

So, below 3,500 points, no one cares, but above 3,500 points, there will definitely be regulation. Today feels like a watershed for this market trend; it's not a market where you can just lie back and make无脑 profits anymore! Take it easy and don't chase high prices blindly.

1. Premier: Study and reserve a batch of policies and measures to stabilize the economy and promote development, and launch them in a timely manner according to changes in the economic situation.

On the afternoon of October 8th, the Premier presided over a symposium with economic experts and entrepreneurs to listen to their opinions and suggestions on the current economic situation and the next steps in economic work. He emphasized the need to quickly implement a package of incremental policies, to accelerate the implementation of policies that have been introduced to ensure early effectiveness, and to come up with specific plans for policies under study as soon as possible! At the same time, in conjunction with planning next year's economic work, study and reserve a batch of policies and measures to stabilize the economy and promote development, and launch them in a timely manner according to changes in the economic situation.

Comment: The press conference at 10 am today did not deliver the anticipated trillions of "big moves." Therefore, the sharp drop in A-shares, including the significant drop in the Hong Kong stock market, is somewhat related to this disappointment!

However, the Premier's speech at the symposium, in conjunction with planning next year's economic work, indicates that fiscal policies will definitely be introduced; it's just a matter of when they will come.From the perspective of the stock market, there is no need to unleash all the big moves at once; controlling the pace is also quite good. There are still multiple windows ahead, such as the Standing Committee of the National People's Congress (NPC) Chairman's meeting in early October and the NPC Standing Committee in late October/early November, which could also be time nodes for policy releases!

Aigu Jun believes that boosting the stock market can increase everyone's confidence and stimulate consumption. However, for the economy to recover and escape deflation, more fiscal stimulus policies are needed! In summary, the central bank has done what it should do, and now it's up to the finance department.

2. Industry insiders: The requirement that credit funds are strictly prohibited from entering the market in violation of regulations has not changed, and there is currently no window guidance.

Today, news shows that regulatory authorities are strengthening the supervision of the banking system's funds. Financial regulatory departments have provided window guidance to commercial banks to strictly control leverage! Industry insiders emphasize that bank credit funds are strictly prohibited from entering the stock market in violation of regulations, which is a financial regulatory red line that commercial banks must adhere to. Currently, there is no understanding of the relevant window guidance and its specific content.

Comment: Today, the first cooling by regulation has arrived, and bank credit funds are strictly prohibited from entering the stock market in violation of regulations! This is a rule that has long been in place and is not new. Moreover, there is no special window guidance.

Aigu Jun believes that in such a crazy market, there must be borrowing to speculate in stocks. Now, consumer loans and online loans can easily get tens of thousands or even hundreds of thousands! However, high leverage financing will be relatively less, and it is already difficult to find financing institutions in the market.

The goal of the regulatory authorities is to move money from the bond market and bank deposits to the stock market, rather than encouraging everyone to borrow money to speculate in stocks! Especially the post-90s and post-00s generation, they are speculating in stocks in the way of cryptocurrency speculation, and in their eyes, there are only chips, no company concept. Such fierce young people have made the regulatory authorities a bit nervous!

In summary, there are not many people who are now using consumer loans to enter the stock market, and the higher-ups need to be prepared for the future. Today, the signal conveyed once again is very clear, the regulatory authorities want a slow bull market, not a reckless bull or a crazy bull.

3. Tonight, more than 40 companies announced plans to reduce holdings.

Recently, the market has been booming, and major and minor non-holders are also accelerating the reduction and cashing out. From September 24th to today, as of the time of writing, more than 40 listed companies have announced plans to reduce holdings today, including some shareholders' "clearance-style" reductions! From September 24th to today, more than 100 companies have disclosed progress in reducing holdings or plans to reduce holdings.Commentary: Since the beginning of this bull market, more than 100 companies have announced share reductions. Tonight, over 40 companies, including Guoguang Electric, Trina Solar, and Tianyue Advanced, as well as many semiconductor companies, are among them!

Indeed, the market has been too hot lately. Many major shareholders, seeing that retail investors can't get their hands on shares, are very anxious and decide to distribute their shares among everyone. I ask you, are you moved or not?

The initial wave of share reductions in a bull market doesn't necessarily indicate much; at most, it serves to cool things down a bit. However, if the market continues to rise, the number of companies reducing shares will only increase! After all, for many junk stocks, the company's value is something that major shareholders, directors, supervisors, and executives understand better than you and me.

Therefore, for stocks that announce share reductions, have poor fundamentals, and have seen huge gains, it's important to pay attention to the risks! Once a retreat occurs, the fluctuations could be particularly severe.

4. China Concept Index Down Over 6%, A50 Bucks the Trend with Nearly 3% Increase

Tonight, popular China concept stocks continue to decline, with the Nasdaq Golden Dragon China Index down 6.5% as of press time. Among them, U.S.-listed brokerage stocks plummeted collectively, with Tiger Brokers down over 21%, and Futu Holdings down nearly 20%. EHang Intelligent dropped over 19%, Bilibili, Weibo, and Beike saw multiple stocks down over 10%, Li Auto and XPeng Motors dropped nearly 10%, and Pinduoduo and Alibaba fell over 7%. The FTSE A50 Index still rose by more than 2%, having previously increased by more than 3%.

Commentary: Tonight, China concept stocks followed the sharp decline of Hong Kong stocks, and the magnitude is quite significant! Mainly due to the recent gains, coupled with the "big move" during the day's meeting not meeting expectations! Some foreign capital has started to cash in on profits, which is also quite normal.

However, the A50 rebounded by nearly 3%, so there's no need to worry too much. The momentum is on our side now, and foreign capital's establishment of positions in Chinese assets has just begun. The current holdings are only a little over 5%, and at their peak, they exceeded 15%, theoretically offering at least double the space for growth!

Of course, if Hong Kong stocks continue to plummet tomorrow, A-shares will inevitably be affected. Today's strong performance in the A-shares is to make up for the gains missed by Hong Kong stocks during the holiday! Tomorrow, bulls and bears will have a real fight, but millions of new investors have opened accounts for the National Day holiday and will be able to buy stocks tomorrow. With the support of new retail investors, we bulls will surely win.

Daily Market Talk:Other news.

DBS Bank in Singapore has raised the target price for CITIC Securities A-shares to 45 yuan, an increase of 50%. In a bear market, securities firms are seen as troublemakers, with CITIC Securities being criticized daily; but as soon as a bull market arrives, they become desirable, proving that only rising prices can change beliefs.

If CITIC can still increase by 50%, then securities firms must continue to double. However, with the index already at 3500, there is still speculation on the first phase of the bull market's big finance! This round of market seems to be able to reach 5000.

New China Insurance: It is expected that the net profit for the first three quarters will increase by 95% to 115% year-on-year. New China Insurance earned 20 billion in the first three quarters, with a market value of less than 160 billion! The price-to-earnings ratio is only 7 times, which is not expensive.

So when the bull market comes, the insurance sector actually has the greatest performance elasticity. Insurance companies hold a bunch of stocks and can win directly. Securities firms earn commission fees, two-way financing money, and of course, they also have proprietary trading, but their performance is definitely not as strong as insurance.

Retail investors are "running" into the market, and the number of retail investors in some index funds has surged fivefold. The biggest change in this bull market is that buying ETFs has become the first choice. Today's trading volume of 3.45 trillion yuan, with stock ETFs contributing 350 billion yuan, most of which are bought by retail investors and speculative capital.

Why are people buying ETFs? Because those who do not have permission to trade on the ChiNext and STAR Market can also buy. Moreover, ETFs have a large elasticity, rising more than most stocks when they rise, and falling less when they fall! In short, this round of bull market may be built up by ETFs.

CITIC Construction Investment: The Chinese stock market is transitioning from a "blitzkrieg" to a "protracted war". This means that the index has returned to 3500, which is the center of value. It will not continue to rise unilaterally, but will enter a rhythm of oscillation and washing, and poor stock selection will no longer allow for easy wins. New investors may have to start paying tuition fees, let's wait and see.

Liu Jipeng: Restricting major shareholders' reduction can protect the bull market to reach 4000 points. This is the truth, as the index has risen by several hundred points, and many shareholders are eager to reduce their holdings!

The current launch of this bull market is to make ordinary investors earn money, not to make the top 1% of large and small non-tradable shareholders extremely wealthy. The wave of reduction is still something to pay attention to.I won't elaborate further, but there's a saying that in a bull market, "warning about risks is akin to cutting off someone's livelihood, and cutting off someone's livelihood is tantamount to killing their parents." However, despite the bull market, the short-term surge is indeed too intense; caution is advised against blindly chasing highs and mindlessly buying stocks.