My Fintech Empire

At around 2 p.m., the turnover of the SGX market exceeded 1.7 trillion, and the SGX 50 Index was still fluctuating upward. Now every 0.1 percentage point increase is a record high.

Half an hour later, the trading volume exceeded 1.8 trillion.

The main volume was the explosion of the six SGX 50 ETFs, because many retail investors tried single T+0 today, especially those who were very active in the market, who couldn't help but try it today.

The implementation of the new trading rules has made all kinds of funds more active than usual, and has also created miracles in trading.

Near the last 10 minutes of trading time at the end of the trading day, the SGX 50 Index broke through the 8,600-point mark, and the trading volume of the SGX market reached 1.93 trillion. This number shocked everyone. People from all walks of life were staring at the SGX holdings, watching the trading volume continue to move towards the 2 trillion mark.

However, in the end, it was still a little short.

As of the close, the SGX 50 Index rose by +3.35% to 8606.78 points, and the SGX market had a total turnover of 1975.1 billion yuan.

But today, the combined turnover of the three major A-share trading markets also broke through the 3 trillion mark again. The Shanghai Composite Index closed up +1.86% today, with a turnover of 429.9 billion yuan, and the Shenzhen Component Index closed up +2.19%, with a turnover of 653.6 billion yuan.

Although the turnover of the SGX market today did not break through 2 trillion yuan, the volume of 1.97 trillion yuan is still a breakthrough. Compared with 1315 billion yuan on the previous trading day, today's increase is 660.1 billion yuan, which is more than the total volume of the Shenzhen Stock Exchange throughout the day.

But then again, it is true that the volume has increased by 660.1 billion yuan today, but judging from the net inflow of funds, it is only about 107 billion yuan in net inflow.

This shows that the reason for today's huge volume is the new trading rules. It is mainly due to the mutual turnover of funds in the market. Many people buy and sell, and then buy again. Some people use arbitrage within a single T+0 trading day. Of course, some people fail to arbitrage and their losses increase instead.

Under the new trading rules, 1 yuan can be traded twice within a day, so when calculating the transaction amount, it is 2 yuan.

What if the increased volume of 660.1 billion is all net inflow? Then the New Securities 50 Index must be pushed to the daily limit, and the entire SGX market must be pushed to the point where thousands of stocks hit the daily limit.

…

The next day, Tuesday, the trading volume of the SGX market shrank to 1.69 trillion, failing to continue to break the record. This is also a reasonable performance. Although the super main force is still doing long, it is not as strong as yesterday.

After the New Securities 50 Index rose by +3.35% on Monday this week, it did not continue to rise in the next four trading days, but adjusted at a high level for four trading days.

During this period, the trading volume of the SGX market did not fall below 1.35 trillion. Not only has the trillion-dollar transaction become the norm, but the average has also moved up significantly. This is the result of the implementation of the new trading rules, and it is also expected. It would be abnormal if the trading volume did not increase.

After the SGX 50 Index adjusted at a high level for 4 days, it strengthened again in the next six trading days and continued to reach new highs. It directly came to six consecutive positive lines, closing up +2.08%, +0.04%, +0.66%, +1.04%, +0.98 and +2.00% respectively.

Especially the sixth positive line, which sent the SGX 50 Index to the 9,000-point mark in one fell swoop, closing at 9,097.33 points, and the highest point in the session reached 9,185.96 points. On that day, the trading volume of the SGX market also reached 1.73 trillion, second only to the 1.97 trillion volume on the first day of the implementation of the new trading rules.

The SGX 50 Index broke through the 9,000-point mark, which is something that countless stockholders dare not even think about, especially in March this year when the global stock market plummeted and the SGX 50 Index plunged all the way to 5,262.42 points. At that time, the top was 6,794.27 points. Everyone either thought it was the top of the universe, or even the optimists thought it would take about two years to repair it.

Who dared to think that the SGX 50 Index could reach above the 9,000-point mark within the year?

However, an important factor that cannot be ignored in such a strong bull market is that the wealth harvested by the Qunxing Group overseas has allocated an astronomical figure of 5 trillion to the SGX market.

During this period, every K-line of the SGX 50 Index that rose by more than 1 percentage point had 5 trillion yuan of funds going long, and the net purchase volume was no less than 100 billion yuan. There was net purchase every trading day, and the lowest net purchase in one day was more than 30 billion yuan.

These are all real money entering the SGX market.

As the SGX 50 Index broke through the 900 billion mark, countless investors began to boldly wonder whether it would be possible to break through the 10,000-point mark within the year?

This idea was something that no one dared to think about in the first half of this year. Even during the period of rapid exponential growth in July, no one dared to think that the SGX 50 Index would break through 10,000 points within the year.

But now it has broken through 9,000 points, and the 10,000-point mark is no longer a distant thing. Everyone dares to think about it and even has expectations.

…

Wednesday, November 25.

“Since the development of the SGX market, the SGX 50 Index alone has been a bit overwhelmed by the massive amount of funds pouring into the market…” said a participant from the SGX management.

At this time, Fang Hong was attending an internal seminar at the headquarters of the SGX, the topic of which was the next reform of the SGX market.

Another manager at the meeting agreed: "This is a different time. Facing the new situation, it is indeed extremely unreasonable for the SGX market to have only one SGX 50 index."

After a while, Fang Hong said in a deep voice: "The SGX market has been born for nearly five years. It is undoubtedly a great success, but in the process of development, there are indeed many problems. Now it is time to face them. The biggest problem can be described in four words - top-heavy."

The head of the SGX and the managers attending the meeting nodded. "Top-heavy" is indeed the biggest problem. The 50 constituent stocks in the SGX 50 index account for nearly 70% of the entire SGX market, and the other 2,000 stocks account for only more than 30%.

Even in the New Securities 50 Index, it also faces the problem of "top-heavy". The size of the two stocks, Xingyu Technology and Matrix Quantum, known as the "big and small kings", also occupies a considerable proportion among the 50 constituent stocks.

Xingyu Technology and Matrix Quantum are super big guys. The total market value of these two listed companies is almost 50 trillion, which is a very exaggerated number.

At the current closing price, the latest market value of Xingyu Technology has reached 28.23 trillion, and it is going to the 30 trillion mark. The market value of Matrix Quantum has also reached 17.97 trillion, and it is going to the 20 trillion market value mark.

The market value of these two companies is indeed ridiculously large, and there is a certain amount of bubble, but both have enough value growth to fill the bubble. To put it bluntly, it is worth the price. The market value itself is reasonable and recognized by the capital market.

But it may not be a good thing for the SGX market. Now if any of these two stocks drops by 3 or 5 points, the market index SGX 50 will not be able to hold it down. Conversely, if it rises by 3 or 5 points, the index will not be able to hold it down.

In the past, it was possible to use other trillion-dollar stocks such as Jiuzhou Blue Arrow to hedge and create a seesaw effect, but now this method is gradually failing, and these stocks sometimes need others to help them do seesaw hedging.

In short, the "top-heavy" problem faced by the SGX market must be solved. If it is not taken seriously now, there may be big problems in the future.

…