Bad news can be divided into substantive bad news, periodic loss, policy loss, policy bad news and unexpected bad news. Constant bad news will lead to the continuous decline in stock market prices, forming a "bear market." Its preventive measures include avoiding market risks and dispersing system risks.
Bad news often leads to the overall decline of the stock market, and constant bad news will lead to the continuous decline of stock market prices, forming a "bear market."
All kinds of factors and news (such as the deterioration of listed companies' operating performance, bank tightening, bank interest rate increase, economic recession, inflation, natural and man-made disasters, etc., which lead to stock price decline) are called bad news.
Bad news: factors and news that are beneficial to bears and can lead to a decline in stock prices. For example, on 20 10/0,65438+10, 12, the central bank announced that it would raise the RMB deposit reserve ratio of deposit-taking financial institutions by 0.5 percentage points, resulting in a 2.8% drop in the Shanghai Composite Index and a 2.97% drop in the Shenzhen Component Index on 13. Deposit reserve refers to the deposit prepared by financial institutions in the central bank to ensure the needs of customers to withdraw deposits and settle funds. The ratio of deposit reserve required by the central bank to total deposits is the deposit reserve ratio.