"On the first trading day after the holiday, I invested 60,000 yuan within the first ten minutes of the morning session, and lost 5,200 yuan before an hour had passed. On October 9th, it fell another 10%, costing me 9,000 yuan," a netizen with the username "momo" complained on social media. The stock market's ups and downs have given many new investors, who entered the market with dreams of "getting rich quickly" after the National Day holiday, a roller coaster-like experience.

In the week before the holiday, A-shares continued to open and trade high for several days, with a significant increase in both volume and price. This surge in the market has ignited the investment enthusiasm of countless new and old investors, leading to a surge in account openings and those adding to their positions.

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The International Finance News reporter noticed that there are still many investors who want to "borrow to invest in stocks." According to bank staff, the balance of credit loans and the redemption volume of open-end financial products have both increased significantly in recent days.

The movement of market funds has alerted several banks. According to incomplete statistics, since October 8th, more than 30 local bank institutions have issued warning statements regarding the flow of credit loan funds into the stock market. Industry experts have also emphasized that investors must not use leverage to invest in stocks, as losses could lead to huge debts and legal risks.

There has been a significant increase in consumer loan balances.

"Want to borrow money to buy stocks? The interest rate is only 2.95%," a netizen asked on a social platform. Due to the relatively fast disbursement and lower costs, many netizens who want to obtain investment capital to catch up with the stock market boom have turned their attention to consumer loans.

Coinciding with the "Eleven" consumption peak season, the borrowing cost of bank consumer loans has also dropped in a timely manner, and various promotional activities have emerged. Taking Jiangsu Bank as an example, a product launched by the bank before the holiday, under certain conditions and with the addition of interest-free coupons, can have a minimum interest rate of 1.88%. At the same time, China Merchants Bank, Shanghai Pudong Development Bank, and others have also rolled consumer loan interest rates into the "2" range.

"As long as the capital turnover is done reasonably, it is impossible to distinguish whether the money invested in the stock market comes from loans," said a loan intermediary, who can provide a series of "services." After the loan is disbursed, they can also help customers with cashing out and other operations to avoid bank account supervision.

The International Finance News reporter learned from a credit officer of a major bank that customers withdrawing cash or transferring funds multiple times indeed bring difficulties in investigation. "But for situations where loan funds enter the real estate market, stock market, or cash out, we have a comprehensive investigation model. As long as we investigate and find it, we will require the customer to settle immediately and include them in the gray list."

The reporter confirmed from this person that the relevant loan balances have indeed increased significantly recently. "We are currently focusing on investigating the situation of credit loan funds entering the stock market, and the results may be more numerous after a while." The person said, "In addition, the redemption volume of open-end bank financial products has also increased a lot recently, as everyone wants to catch this wave of the market."In addition to loan and financial product redemptions, during the National Day holiday, large-denomination certificates of deposit (CDs) are also being transferred in large numbers, with transfer interest rates of 3%, 4%, and even higher frequently appearing.

"The transfer of large-denomination CDs is at an interest rate of over 3%, causing congestion," and "the highest transfer interest rate has reached 4.58%, with the interest being waived." On the last day of the National Day holiday, many netizens shared on social media platforms. However, as the A-share market fluctuates after the market opens, the heat of transferring large-denomination CDs seems to have decreased.

Although the market fluctuates significantly, the enthusiasm of new investors cannot be stopped. On October 8th, Guojin Securities disclosed on the public account platform that since the press conference held by the State Council Information Office on September 24th, investor participation has been enthusiastic, and the number of account opening appointments has increased significantly. The number of daily account opening appointments continues to grow, and the willingness of investors to enter the market during the holiday period remains undiminished. Looking at the data of account opening appointments, it has increased by 150% compared to the average number in the past month. In terms of the age structure of the customer base, customers in the post-80s and post-90s age groups are the majority, and there are even some post-00s customers.

"Is the money entering the market owned by oneself? Is it idle funds? Can it withstand a loss of more than 50%? If the answer to any of these questions is no, then entering the stock market requires careful consideration," Li Nan, an associate professor at the Shanghai Advanced Institute of Finance, reminds investors, "Even if the answers to all three of the above questions are affirmative, it is also necessary to set clear trading rules for oneself. Young investors should not devote all their precious time and energy to the rise and fall of stocks, but should focus on improving their own abilities."

More than 30 banks have made intensive statements.

The voices of "borrowing to invest in stocks" are endless online, and banks in many places have urgently made statements in recent days.

According to incomplete statistics by reporters from the International Finance News, since October 8th, at least 30 banks have issued statements on the issue of the direction of credit funds, mainly local rural commercial banks and rural credit institutions, all of which clearly state the consequences of the misuse of funds in the announcements.

For example, on October 10th, the announcement by Changting County Rural Credit Cooperatives showed, "Loan funds are strictly prohibited from entering the stock market, bond market, futures market, and financial market! At the same time, it is strictly forbidden to use these funds for real estate investment or to repay non-business loans! If discovered, the loan will be recovered in advance according to the contract, please ensure that the use of funds is compliant!"

In addition, there are many rural commercial banks and rural credit institutions such as Hunan Mayang Rural Commercial Bank, Guangdong Lianjiang Rural Commercial Bank, and Shunchang Rural Credit Union that have issued statements. In addition to recovering loans in advance, many institutions have also clearly stated that they will require borrowers who misuse funds in violation of regulations to bear the risk of penalty interest.

Su Xiaoli, a senior researcher at Su Xi Zhi Research, said in an interview that strictly prohibiting credit funds from flowing into the stock market has always been a "red line" in the banking industry. It is emphasized again during the current hot stock market period, firstly, to remind banking institutions to be more vigilant and strengthen management against such credit violations in the current situation, and secondly, there are indeed some novices entering the market behind the overheating of the stock market, lacking understanding of banking credit rules. Such reminders are important measures to strengthen financial investor education and fulfill the protection of financial consumers."During the current period of continuous stock market increases, banking institutions need to pay special attention to the flow of consumer loan funds. Before lending, they should prominently highlight the rules for the compliant use of credit funds to clients, and during the lending process, they may also verify the consumer scenarios and related consumption vouchers of clients," Su Xiaorui further analyzed, "For consumers, it is also necessary to clarify the purpose of consumer loans, to be aware of the high-risk characteristics of the stock market, not to blindly chase highs, and to maintain risk awareness."

In addition, according to media reports, financial regulatory authorities have provided guidance to commercial banks through regulatory windows, requiring financial institutions to attach great importance to investor appropriateness management and investor protection, to strengthen internal controls and compliance management, and to strictly control leverage. Shao Hui, an assistant professor at Zhejiang University's International Business School (ZIBS), pointed out that this indicates that regulatory authorities are highly vigilant about bank credit funds flowing into the stock market and may strengthen administrative penalties in the future to curb this behavior.

According to the public penalty information from the National Financial Regulatory Administration, since July of this year, at least seven banks, including Jiangxi Yongxin Rural Commercial Bank, China Post Savings Bank Taizhou Branch, Zhejiang Xiaoshan Rural Commercial Bank, and Guangfa Bank Anyang Branch, have received large fines for consumer loans illegally entering the stock market. Among them, the penalty for Zhejiang Xiaoshan Rural Commercial Bank reached as high as 4.5 million yuan.

The risk of borrowing money for stock speculation must be vigilant.

Xiao Wang (a pseudonym) is a "veteran player" in the stock market. He told reporters that in the investor communication group he is in, there is a high call for borrowing consumer loans, redeeming financial management, and even selling houses for stock speculation. "Many in the group are borrowing money for stock speculation," Xiao Wang shared, "Indeed, some people have made money. Before the National Day, a stock friend mortgaged his house and made 5 million in three days. This may also be one of the reasons why everyone is keen on adding leverage."

The stock market never lacks myths, and those known online to take risks and make a lot of money are more survivors' bias. "Leverage speculation, pray for yourself," one netizen said, during the 2015 bull market, he once fantasized about making a big profit with loans, and after various online loans and credit card cash withdrawals, he ended up owing more than 800,000 yuan.

Why has consumer loans become the first choice for most investors to add leverage? In Shao Hui's view, the main reason is the large cost price difference between bank consumer loans and securities financing.

"This interest rate difference tempts some investors to obtain lower-cost funds through consumer loans in order to achieve higher returns in the stock market," Shao Hui pointed out, "This behavior poses serious risks, including amplifying investors' loss risks, triggering personal financial and liquidity risks, thereby damaging personal credit, and may lead to an increase in non-performing loans and a decline in asset quality of banks."

Furthermore, what kind of impact may the large influx of funds from illegal cashing out of loan funds, concentrated redemption of open-end financial management, and clustered transfer of large-denomination certificates of deposit into the stock market in a short period of time bring?

Shao Hui believes that the possible negative consequences include asset bubbles, deterioration of bank asset quality, large fluctuations in the stock market, and increased instability in the financial market."If the stock market experiences an adjustment, investors using leverage may face greater losses, as losses are magnified by the leverage effect," Shao Hui analyzed. "Furthermore, if the stock market bubble bursts, it could impact the entire financial system, affecting the stability of banks and other financial institutions."

"One should recognize that it is investors, not consumers, who buy stocks, and the purpose of investment is to hope for a return," Li Nan stated directly, "The most common behavioral fallacy in the stock market is the 'gambler's fallacy', which always assumes that the known past changes in stock prices represent the future changes in stock prices. However, there are many factors that determine stock prices, with the main factor being whether the company issuing the stock is a profitable good company. Stock prices can also be influenced by the emotions of traders. Judging the quality of a company requires very professional skills, with both clear and reasonable analysis logic and rich practical experience. Predicting investor emotions is even more of a 'mission impossible.'"

What should new and old stock investors pay attention to in the face of stock market fluctuations?

"Do not use leverage!" Li Nan emphasized in the interview, "Using bank consumer loans for stock speculation is illegal. At the same time, the cost of credit card cash withdrawals and various online loans is high. Borrowers may face annual interest rates of over 18%, as well as late fees and service charges. They are more likely to face 'compound interest' debts, with average monthly interest rates not lower than 3%. Margin financing is also illegal and costly. If you finance at a 1:10 ratio, if the stock price drops by 10%, you will be forced to liquidate and lose all your capital. If the stock is suspended and cannot be liquidated, you may still owe the financing company a huge debt."

"For non-professional investors with financial needs and who hope their wealth can continue to grow in the long term, proper asset allocation is the only way to achieve this investment goal," Li Nan concluded, "At present, among financial institutions such as securities firms and bank wealth management subsidiaries in China, there are very few that can provide such asset allocation services. There is also a severe shortage of related professional financial talents, which cannot meet the needs of residents' wealth management. This is also an area where relevant financial institutions need to work hard to improve their capabilities."