Declining stock price and historically-low valuation characterize China’s stock market in 2018. Behind this are 3 reasons：number of debt default and financial fraud cases of listed companies are ever increasing；the leveraged funds of investors and shareholders suffer from margin call or even go bust；new asset management rule hinders the entrance of new funds. Forward-looking in 2019，the stock market is still bottoming out while rebuilding valuation framework. Risk is yet to be released and investors should wait for investment opportunity patiently.