What exactly is the FTSE China A50 Index? Why do many people use it to judge the trend of A-shares? Is this scientific? Originally this was a very simple matter, but now it has been complicated by others, and has even become an important weapon in the financial war between C

What exactly is the FTSE China A50 Index? Why do many people use it to judge the trend of A-shares? Is this scientific?

This was originally a very simple matter, but now it has been complicated by people, and it has even become an important weapon in the financial war between China and the United States, so today’s video will not work unless it is explained clearly.

FTSE China A50 Index is a real-time tradable index that includes the 50 A-share companies with the largest market capitalization on the Shanghai Stock Exchange and Shenzhen Stock Exchange. It is currently listed in Singapore. The index

is a bit like our Shanghai Stock Exchange 50. It is originally a very simple thing, an ETF that tracks the big A externally. Similar indexes are available in many foreign stock markets, such as the CSI 500 ETF listed in Japan.

In essence, the rise and fall of these ETFs can indeed be used as a reference for the trend of big A. Note that I am talking about a reference, not the only criterion. But here’s the problem. Now on China’s self-media platforms, a large number of bloggers are using a series of FTSE China indices as a basis for judging the trend of big A, amplifying the emotions of stock investors.

One of the most typical operations is that after our 12 trillion bond was launched last Friday, FTSE China tripled its long position and fell 16.6%. So many people say that this is because the policy did not meet the expected results. After getting used to the 10cm rise and fall of big a, many people thought the market collapsed when they saw the 16.6% drop. So the transmission effect appeared. From Friday to the opening of today, the market has been filled with panic.

So is this judgment correct or not?

The FTSE China A50 Index is a betting market worth tens of billions. It is listed overseas and can be easily controlled by foreign investors. The daily turnover is just over 100 million.

But our Big A is the third largest capital market in the world, with a total market value of 51 trillion. Think about it, how can a fund with a scale of around 10 billion influence the trend of our market worth tens of trillions? So this is why I said above that it can only be a reference basis, and the weight ratio is very low.

The problem is that Big A is a market with a lot of retail investors, accounting for as much as 29%, which is even higher than the 18% of professional funds. This means that our Big A is destined to be a market with very large emotional fluctuations. Retail investors are destined to lack professionalism. This professionalism includes the reserve of professional financial knowledge and trading capabilities. Therefore, foreign forces with ulterior motives can manipulate our stock market through public opinion.

This step is to form a brain memory and constantly brainwash the FTSE China A50 Index and the deep binding of the big A trend in the media. Before the National Day, after the big bull market started, many big V's were citing the rise of FTSE China A50. Therefore, many investors believe that the big rise of FTSE China A50 means the big rise of Big A.

In fact, this is completely putting the cart before the horse. In fact, it should be the big A that leads the FTSE China A50 Index. This is like training a dog. You keep giving it meat and bones. After a long time, when you make actions, it will form a fixed mindset.

After more than a month of training, many retail investors have been deeply bound to this understanding. If FTSE China A50 rises, the big A will rise. Now on the other hand, when the index falls, doesn't it mean that Big A is about to fall sharply.

At the same time, 99% of investors cannot tell the difference between the FTSE China a50 index, FTSE China triple long, FTSE China triple short and other indexes.Anyway, as long as everyone sees a big drop, panic will come. Coupled with the deliberate amplification of some big Vs, the panic is infinitely amplified.

If this chain is finally formed, it will be too easy for foreign capital to control Big A in the future. They only need to control a market with a daily turnover of more than 100 million, and then use public opinion to amplify the leverage, and eventually they can leverage hundreds of thousands of Chinese stock markets. Think about how terrible this is.

In the shareholding structure of our Big A, the proportion of foreign capital is only about 4%. It can be said that this proportion is very low. Three months ago, when the yen raised interest rates, U.S. stocks, Japanese stocks, and even markets such as Türkiye collapsed. But nothing happened to Big A. What does this mean? Big A is actually not within the scope of global capital circulation. The actual role of foreign capital in Big A is not as great as imagined.

But the problem is that our public opinion has been manipulated. By manipulating public opinion, people can control the big a. Now the game between China and the United States has entered a new stage. If we cannot hold the pricing power of big a in our own hands, how can our economy recover, how can we attract global liquidity, and how can we become a real economic power?

Over the past 30 years, the country has been making progress. We Big A investors must also make progress. If you never learn, have no own understanding of things, have no basic financial knowledge, have no understanding of international trends, and always come to Big A with a speculative mentality, then it is no wonder. Our capital market will be easily controlled by others.