Minsheng Securities: Bull market may be in the stage of consolidation and gathering again.

Minsheng Securities released a research report stating that the bull market may be in a phase of consolidation and reabsorption of funds. In August, the overall market rose, with the Shanghai Composite Index surpassing 3800 points to reach a new high since 2016; Han's laser had a monthly increase of 110.36%, with its stock price surpassing Maotai to become the new "stock king." In analyzing the future trend of the current market, what does the significant rise in Han's Laser's valuation reflect in terms of expectations? The institution attempted to provide some analysis from a historical perspective: Looking at the driving force of the rise, this round of bull market is mainly led by liquidity. Since the beginning of this year, the market's rise has been mainly driven by loose liquidity, with the A-share market sentiment basically at a low but still at a relatively low level. From a long-term perspective, until there are clear signs of a tightening of liquidity, the possibility of the market peaking is relatively small. In terms of trading sentiment, the margin trading volume as a percentage of the total market turnover continues to rise, indicating a high trading heat in the market. There is overheating in the market trading, and based on historical experience, the probability of a significant rise after a correction in the short term is low. It may enter a phase of consolidation and reabsorption of funds. If the margin trading heat decreases sharply, it may have a certain impact on sectors such as TMT, which have a high participation in margin trading, in the short term.