I. Market Review
On Wednesday, influenced by falling exterior market, two stock markets opened low and then fluctuated lower due to weak nonferrous metal, coal and finance sections; Shanghai Composite Index once hit 2770, which was the lowest among recent adjustment. Small-cap stocks became more active at almost half session, and real estate section began to rally after days of decline, which drove fluctuation to rebound until the end; two markets both saw slight growth as of closing.
II. Market Observation
1. Trend of breaking initial offering price recurs, Shenzhen Stock Exchange reminds investors of risks.
2. Number of new accounts in A-share market sees slight decline last week while that in fund suffers nearly 20% cutoff.
3. Debt crisis in Europe aggravates and European and American stock markets continues decline.
III. Market Research & Estimation
At present, many funds carry out purchase restriction, which shows obvious weak anticipation by institutional investors; number of new accounts in fund suffers nearly 20% cutoff and investors gear down the pace of entering in the market. Current themed medium & small-cap stocks are universally overestimated and stock market bubbles are to be further squeezed. Investors are suggested to keep cautious.