Core Viewpoint - The Chinese stock market has experienced a significant pullback, raising concerns about potential further adjustments, with trading volume reaching 3.2 trillion RMB, the second-highest on record [1] Group 1: Market Activity - The trading volume on the 27th reached 3.2 trillion RMB, marking the second-highest record, following a previous high of 3.17 trillion RMB earlier in the week, which is now the third-highest [1] - The micro-cap index saw its largest single-day change, with micro-cap stocks declining by 3.7%, erasing six days of gains, while the CSI 2000 index fell by 2.3%, reducing five days of gains [7] Group 2: Investor Sentiment - Despite the pullback, local investors generally believe that this correction is a reasonable consolidation after several weeks of strong performance and does not necessarily indicate the end of the bull market [7] - Conversations with experienced investors suggest that temporary pullbacks during a bull market are normal, and it is premature to declare the end of the bull market [8] Group 3: Regulatory Environment - There are speculations that local brokers have started to reduce margin requirements for retail and institutional clients, possibly due to some form of guidance from regulatory authorities, although no official confirmation has been reported [8] - The regulatory stance appears to favor a "slow and controlled bull market" rather than a "fast and uncontrolled bull market," reflecting a consistent approach observed in previous bull markets [9] Group 4: Economic Context - The stock market is increasingly viewed as a wealth creation tool for Chinese households, especially in the current economic environment where property prices have declined and the economy is in the early stages of recovery [11] - Retail account openings have remained relatively stable, indicating ongoing interest from individual investors [12]