Wow, the A-share market has been incredibly lively these past two days! The Shanghai Composite Index has skyrocketed, surging by more than 10% in just four trading days, with the highest increase of over 320 points. Investors who were used to seeing the index remain stagnant are now thrilled, rushing into the stock market to grab shares. As a result, the trading system of the Shanghai Stock Exchange was overwhelmed, leading to a slow confirmation of transactions.

Has the stock market's sudden boom caused the trading system to fail?

The sudden surge in A-shares has taken everyone by surprise. Many had thought that the stock market was doomed this year, but suddenly this happened. The Shanghai Composite Index has gone crazy for four consecutive trading days, with a cumulative increase of over 10%, a rise that hasn't been seen for a long time.

Everyone was eager to enter the market to bottom-fish, but lo and behold, the Shanghai Stock Exchange's trading system couldn't handle it. On the morning of January 24th, the stock auction trading of the Shanghai Stock Exchange experienced a slow confirmation of transactions. Although it temporarily recovered at noon, issues reoccurred in the afternoon. This has certainly caused anxiety among investors.

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The central bank suddenly releases liquidity, and investors scramble to grab shares.

So, what exactly caused the stock market to surge suddenly? It turns out that the central bank suddenly released liquidity! On January 24th, the People's Bank of China announced a comprehensive reserve requirement ratio cut of 0.5 percentage points, along with a 20 basis point interest rate cut. This is the highest reduction in nearly four years, and it has instantly ignited the market.

A seasoned investor said, "The central bank's operation this time is really powerful! A comprehensive reserve requirement ratio cut combined with a significant interest rate cut is a double whammy. This not only releases a large amount of liquidity but also reduces corporate financing costs, which will definitely be of great help to economic recovery."

This central bank operation can be said to have exceeded market expectations. Many analysts believe that this shows the regulatory authorities' determination for economic recovery. No wonder investors are scrambling into the stock market to grab shares, with the two markets' transaction volume exceeding 1 trillion yuan for three consecutive trading days, showing how optimistic everyone is about the future market.

As incremental funds flood in, can the market continue to rise?

Seeing the stock market so hot, many investors who have been on the sidelines for a long time can no longer sit still. Some say, "I've been waiting for an opportunity, and now it seems the opportunity has come, I must enter the market!" Indeed, as market sentiment improves, many incremental funds are beginning to stir.However, there are also some rational voices cautioning everyone to be careful. A senior investment advisor said: "After a sharp rise in the short term, the market may experience some fluctuations. Investors are advised not to blindly chase highs and should operate according to their own risk tolerance."

So, can the market continue to rise? There are different opinions on this. Some believe that with the continuous involvement of incremental funds, the index may still rise again. However, others worry that rising too fast may trigger profit-taking, leading to a short-term correction.

Which sectors have the most potential? How should investors operate?

Faced with this wave of the market, many investors are pondering what stocks to buy. Some analysts suggest paying attention to the TMT sector and the new energy sector, believing that these industries have good prospects for future development.

However, some people also remind that the gains of the current heavyweight targets have not been small and may need to be reduced appropriately. A private fund manager said: "The market sentiment is quite excited now, but we still need to stay calm. It is suggested that investors can appropriately reduce their positions and seize structural opportunities."

So, how should ordinary investors operate? A financial expert gave advice: "Consider adopting a fixed investment approach to avoid chasing rises and killing falls. It is important to diversify investments and not put all eggs in one basket."

How should we rationally view behind the stock market surge?

To be honest, seeing the stock market so hot, I am also quite excited. But after calming down and thinking about it, I still have some worries. After all, the stock market rising too fast is not a good thing and is prone to creating bubbles.

The surge in A-shares this time has indeed injected a strong stimulant into the market. But as ordinary investors, we still need to maintain rationality and not be blinded by short-term gains. After all, investment is a long race, and we need to learn to seize opportunities amidst ups and downs, rather than blindly chasing rises and killing falls.