Dazhi VIP data shows that since July 21, the A-share financing balance has exceeded 1.9 trillion yuan for 12 consecutive trading days.

Specifically, in the 12 trading days from July 21 to August 6, the financing balances of the two cities reached 1.90 trillion yuan, 1.92 trillion yuan, 1.92 trillion yuan, 1.93 trillion yuan, 1.93 trillion yuan, 1.95 trillion yuan, 1.97 trillion yuan, 197 million yuan, 197 million yuan, 197 million yuan, 197 million yuan, 198 million yuan and 199 million yuan respectively.

While the A-share financing balance continues to rebound, the proportion of financing purchases to A-share transaction volume has exceeded 10% for several consecutive trading days, exceeding 11 of the 12 trading days.

From July 21 to July 31, the proportion reached 10.29%, 10.42%, 10.11%, 10.45%, 10.11%, 10.84%, 10.83%, 10.39% and 10.43% respectively.

On August 1, the proportion of financing purchases to A-share transaction volume dropped to 9.72%. However, on August 4 and August 5, the proportion once again exceeded 10%, 10.04% and 10.12% respectively.

Analysts pointed out that according to historical experience, the amount of financing purchases accounts for more than 10% of the total transaction volume of A-shares, which often indicates the start of a phased market.

In contrast, the balance of margin trading has dropped from more than 30 billion yuan at that time to less than 10 billion yuan after suspending margin trading business in July 2024 and increasing the margin trading ratio.

As of now, the balance of margin trading is still hovering around the scale of 10 billion. From July 2 to August 5, the proportion of A-share margin trading volume in A-shares has never exceeded 0.05%.

On July 10, 2024, the China Securities Regulatory Commission stated that in order to effectively respond to investors’ concerns and maintain the stable operation of the market, after fully evaluating the current market situation, CSI Financial Company’s application to suspend margin trading will be approved in accordance with the law, and will be implemented from July 11, 2024. The existing margin transfer and securities lending contract can be extended, but it must be settled no later than September 30, 2024.

At the same time, the China Securities Regulatory Commission approved the stock exchange to increase the margin ratio of margin trading from no less than 80% to 100%, and the margin ratio of private equity securities investment funds to participate in margin trading from no less than 100% to 120%, which will be implemented from July 22, 2024.

Regarding the recent continuous recovery of A-share financing balance, analysts pointed out that this shows that the market sentiment of leveraged funds is rising at the current stage.