On June 19, 2015 (May 4, 2015 in the lunar calendar), the Shanghai Composite Index plunged 4500 points and suffered the Dragon Boat Festival tribulation. All the plates floated green and staged a stop-down tide. On June 19, 2015, China's class A shares suffered another setback, which was the fourth plunge this week. On the same day, the Shanghai and Shenzhen stock indexes opened lower and went all the way down; the representative Shanghai Composite Index fell more than 6%, falling to the 4500-point mark. As of the close of the day, the Shanghai Composite Index reported 4478 points, a decline of 6.42%, the transaction 685.50 billion yuan (RMB, the same below); the Shenzhen Composite Index reported 15725 points, a decline of 6.03%, the transaction 601.20 billion yuan; the small and medium-sized board index reported 10273 points, down 5.73%; growth enterprises market index reported 3314 points, down 5.41%. Xiao Shijun, a strategist at Guodu Securities, said in an interview with China News Agency that the reasons for the recent collapse of class A share are mainly concentrated in the regulatory layer's increased supervision of over-the-counter capital allocation and the accelerated pace of new share issuance, but the most critical factor may be that the market is expected to further ease the monetary policy of the central bank. Xiao Shijun further pointed out that due to the consideration of debt norms, the official has been limited in implementing active fiscal policy, so it has actually adopted a very loose monetary policy, but its economic effect is not obvious, but the effect on the stock market is extremely significant. Since June, the government has obviously turned to active fiscal policy. On the 10th, China's Ministry of Finance said that it recently issued a second batch of 1 trillion yuan local government bonds to replace existing debt to stabilize growth and prevent risks. Xiao Shijun believes that it has been more than a month since the last interest rate cut in May, but it has not been seen that the central bank's new loose monetary policy has been realized, and the expectations of interest rate cuts and RRR cuts have repeatedly failed; and the 2 trillion yuan debt replacement means that active finance has been funded, and its effect is likely to be gradually reflected after the fourth quarter of this year. And if the active fiscal policy is effective in the short term, it will in turn mean that the necessity of loose monetary policy has decreased. In the future, monetary policy may enter the observation period, and the loose policy may be delayed in the short term. In terms of specific sectors, all sectors of class A share fell on the day. Among them, mineral products and public transportation led the decline in class A shares, which fell by 9.23% and 9.21% respectively. In response to the future trend, Xiao Shijun believes that the bull market pattern has not changed, but there is still downward pressure on the short-term market. Considering that June is a traditional period of tight capital due to quarterly assessments and other reasons, coupled with the continuous launch of new stocks and other factors, the market capital pressure is high, and the continuous decline in market sentiment has caused great harm. If there is no obvious positive impact, the Shanghai index may fall to 4,000 points within the month.