Secondly, I personally think that the stock market at that time was very poor.
Mature, stock price manipulation, rampant insider trading, and fraudulent performance of listed companies are also common. The implementation of the securities law frightened the bankers at that time and withdrew from the stock market to take shelter.
In response to the Southeast Asian financial crisis and post-disaster reconstruction, the central government began to implement the strategy of "expanding domestic demand" on 1998. At the end of the same year, the long-delayed securities law was finally passed by the National People's Congress, and it was decided to be formally implemented on 1 July 19991. 1June, 1999, the central government put forward a major strategy of "developing the northwest", and at the same time initiated the seventh consecutive interest rate cut since 1996. Despite these advantages, people still don't believe that a bull market can come. Because in accordance with the spirit of the securities law to be implemented soon, the work of decoupling trust from securities began. There is also the trend of large-scale reorganization and merger of securities companies, which has affected the stock market decline.
But it was in unexpected May that the "5. 19" market suddenly broke out. Coupled with the demonstration effect that the world stock market, led by the United States, generally continues to rise, high-tech concept stocks, represented by internet stocks, jumped, and the stock index rose from 1047 on May 7 to 1999. In just one and a half months, the stock index rose by 68%, and the Shanghai Composite Index rose to 65438, 1999 on June 30. And for the first time, the historical "top of the box" 1500 points were stepped on-this is the famous "5 19" market in the history of securities.