#夏日创作营 This question hits many retail investors right in the core of their pain, and it truly touches on the deeper suffering of investing in A-shares. Your feeling of “there’s nowhere left to fall” is based on judgments of valuation and fundamentals, but the market is still falling because something has gone wrong on the trading and sentiment side.

Simply put: you’re looking at “value,” while the market is falling due to “liquidity” and the “gap in expectations.” The具体 reasons break down as follows:

· The cruelty of the “final leg down” (forced selling): When the stock price breaks through certain liquidation levels of leveraged products (such as structured notes like Snowball, margin positions), or falls below an institution’s risk-control stop-loss line, forced selling is triggered. This isn’t because people are bearish, but because they have to sell. Meanwhile, retail investors who couldn’t hold on earlier “cut losses” in panic, creating a vicious stampede of selling. This makes the price deviate from value.
· “A good price” requires “worse news” to confirm: Market bottoms are never “without bad news,” but rather when “bad news is exhausted.” As long as the market still expects economic data to worsen, policy support to fall short of expectations, or external friction to intensify, capital won’t dare to enter. Stock prices aren’t determined by past value—they’re determined by expectations of the future. As long as expectations keep deteriorating, valuation can be compressed indefinitely.
· Liquidity is being drained (vicious cycle): The more it falls, the greater the redemption pressure on funds. Fund managers are forced to sell stocks to meet redemptions; selling pushes net asset value further down, triggering the next round of redemptions. Until this negative loop is broken, the market lacks incremental capital—only a contest of existing positions remains, and any rebound is likely to die off without follow-through demand.
· Time cost and opportunity cost: A-shares have a tradition of “grinding out a bottom.” Since you know it will eventually rise, why would big money buy now? They’d rather wait for a right-side signal (for example, a high-volume big bullish candle) to confirm before chasing, and they don’t want to spend time during a slow bleed. For them, it’s better to buy one day later with a bit of added premium than to take a month of uncertainty risk upfront.

Here are a few practical suggestions for you:

1. Distinguish between “can’t fall further” and “rises immediately”: It’s true that this is a historically low-valuation zone, but undervaluation can last a long time. Be mentally prepared—the time to form a bottom may be measured in quarters or even years.
2. Check the quality of your holdings: If what you hold is trash stocks or overvalued thematic plays, the decline may just be the beginning. If it’s core blue chips or ETFs, review your leverage ratio—never add leverage near the bottom. Living through it is more important than trying to bottom-tick.
3. Strategy: “lie flat” or do systematic investing (DCA): Since you can’t judge the lowest point, either stop constantly watching your account and just let the wind blow, or use idle funds to DCA broad-based index funds in batches to average down.

This current drop is mostly about eliminating the last optimists. The bottom’s feature isn’t “nobody is selling,” but rather “everyone who wanted to sell has already sold.” If you feel you can’t hold out anymore, that might mean you’re one step closer to the real bottom.

If you’re willing, you can tell me what kind of stocks you’re holding (for example, blue-chip value, technology themes, or ETFs), and I can help you analyze specifically whether it’s better to “hold to the end” or “rebalance.” 😊