A Shares Collapsed On Thursday.

The first trading week of 2016,

The market is down sharply, with a four degree trigger fusible mechanism.

The Shanghai stock index has lost about 7% in two trading days, and has fallen by nearly 10% in the whole week. The Shenzhen stock index and the growth enterprise market index have fallen even more, and the weekly decline has reached 14% and 17% respectively.

Hot spots, supply side reform is expected to accelerate the rise of cyclical stocks, coal, iron and steel, nonferrous metals and other strong market forces; military stocks were also affected by the news, active; in addition, many recent listed times.

This week, we opened up the word limit, and the share price was greatly affected.

This week, the A share market is most concerned about the fuse related news.

On Monday, the fusing mechanism came to its first trading day after its formal implementation in January 1st. On the same day, the A shares plummeted, triggering the fusing mechanism twice, and there were thousands of shares in the stock market.

On Thursday, A shares fell panic again, triggering fuses for two times, and continuing to perform 1000 shares trading. On the 4 trading day, the Shanghai and Shenzhen two cities lost more than 7 trillion yuan in market value.

It is worth noting that the above two triggers

In the trading day, the Shanghai and Shenzhen 300 index closed to the second fuse threshold after breaking the first fuse position and resumption, and the time interval of the two fuses on Thursday was significantly shorter than that on Monday.

This has also raised concerns about the "magnetic attraction effect" in the market, and there has been a demand for a suspension of the fusing mechanism.

On Thursday night, the Shanghai Stock Exchange, Shenzhen Stock Exchange and CICC issued a notice to suspend the implementation of the index fusing mechanism since January 8th.

According to Deng Ge, a spokesman for the securities and Futures Commission, judging from the nearly two cases of futile implementation, the negative effect of the fusing mechanism is greater than the positive effect.

Therefore, in order to maintain market stability, the SFC decided to suspend the fusing mechanism.

The recent devaluation of the renminbi has accelerated, and investors are worried about the tension in the capital market.

In addition, small and medium sized stocks in the A share market are overvalued. Once entering the adjustment trend, it is easy to generate liquidity risk that they want to sell, and the market's panic is also related to this. It is suggested that we should pay attention to the future trend of central action and other policies, as well as the clearing situation of some stock valuation bubbles.

The expected acceleration of supply side reform is the inherent logic of the current cyclical stock market.

China and Thailand securities also believe that the steel plate will continue to rise, because the four super expected factors in the short term is difficult to falsify (steel price intermediate rebound, real estate cycle recovery expected, a large number of production capacity to withdraw from the promotion of profit elasticity, supply side reform to help power production clearance), it is the stock price and expected to strengthen each other stage, the trend rate is not the end of the trend.

Because this is a plate opportunity, this rally will benefit all the stocks in the sector, so in the future, we will focus on the wheel rhythm in the sector.