Yesterday they were still shouting “Come back, come back quickly,” but today I just threw a pot of cold water on my head.

On Wednesday, A-shares did not hold on at 3,000 points. The volume of the two markets plummeted, falling more than 5,000 shares. The high-ranking stocks that had surged in the early days took a dive in the afternoon, and many stocks staged a “sky floor” market.

Among them, Coney Mechatronics, Rifa Seiki, Riying Electronics, Hanma Technology, Nanfang Seiko, Dongfang Jiasheng, Yashi Optoelectronics, and Aonong Biotech all fell to a standstill.

Krei Mechatronics, the “king of consecutive boards within the year,” which had previously gone out of the 13th straight board, also directly fell to a standstill today.

Since February, Krei Mechatronics has continued to run wild. The cumulative increase during this period has exceeded 200%, and surpassed Shenzhen China A's record of 11 consecutive boards in one fell swoop, becoming the new king of A-shares in 2024.

Recently, however, Klei Mechatronics, which continues to be “hyped up,” issued several reminders to be wary of stock price pullbacks, saying that there is a risk of excessive market sentiment and irrational speculation.

As of today's close,The turnover of the Shanghai, Shenzhen and Beijing markets surpassed trillion yuan for the first time in the Year of the Dragon. Among them, the Shanghai and Shenzhen markets had a turnover of 1356.7 billion yuan, an increase of 366.6 billion yuan over yesterday; the turnover of the Beijing Stock Exchange was 14.9 billion yuan.

Where did today's huge sums of money come from?

According to market participants, the first part comes from emptying capital to make up positions. According to the latest data, the financing balance of the Shanghai and Shenzhen markets increased by more than 11 billion yuan on the 27th, ushering in “7 consecutive increases.”

Second, several “small essays” circulating in the market today are all very related to quantitative trading.

Earlier, news about the “resumption of previously suspended quantitative strategies” came out of nowhere.

Among them, a “small essay” explains that today's market volume is large, or transactions can be carried out normally due to brokers' notices. Among them, the DMA business has resumed, at a scale of about 300 billion yuan to 400 billion yuan. Most quantified opening periods are set in early March, and there is some pressure to redeem them. Today is February 28. The recovery at this point in time is probably to absorb the turbulence and pressure ahead of time.

However, later, some media sought evidence from the regulatory authorities, claiming that the rumor was untrue.

Furthermore, there is news thatDMA business restricted. DMA business, or long and short profit swaps, mainly refers to the form of private equity quantitative institutions leveraging through brokers' own trading counters. It can also be understood as a method of quantitative strategic financing.

According to China Securities Taurus, brokerage firms have tightened their DMA business, only allowing private equity to operate their own funds, and the funds raised are gradually withdrawn (cannot be continued after the contract expires); furthermore, the DMA business leverage ratio cannot exceed 1:1.

This afternoon, a number of agencies confirmed that they have indeed received the notice, and the scale of the DMA strategy cannot be added in the future.This is probably the main reason for the slump in the market.

However, several large and medium-sized quantitative private equity firms also said that they have not received any notice from brokerage firms to reduce leverage, and the current DMA business has not yet been affected.

Some industry insiders said that this may be the action of individual brokerage firms. If the news is true, the DMA scale will drop further, and there will also be some passive changes in how brokers' business is exhibited.

In fact, in February of this year, there was news that private equity once again received instructions not to add DMA business quotas and proposed to pay attention to risk prevention. The industry speculates that the method of supervision may be a high level of attention, mainly monitoring, and some fine-tuning and guidance. As a result, DMA is currently still on the edge of regulatory concerns, and processing may be more flexible.

So will the rebound in A-shares come to an end?

Some agencies said that the liquidity “fire” has been completely extinguished, and all passive selling pressure has been released.

Chen Guo of CITIC Construction Investment believes that the V shape of the market since the beginning of the year is indeed less correlated with changes in fundamentals/profit expectations; it is more a microstructural issue. Currently, the “fire” of the A-share liquidity problem has been completely extinguished and is being watched to death, so there is no need to worry about another big fire happening.

In the process of falling rapidly to 2,635 points at the beginning of the year, all weak passive selling capital pressure has been released, and the remaining financing or other leveraged funds mean that they have capital to make up positions or have a relaxed structure, that is, if the market falls below 2,700 again, they will not be forced to sell.