Everyone says that A-share market is powerful but no one can explain its essence. The content is very dry, so please explain it briefly. (We will explain A-share market and A-share market together) The essence is actually very simple. Throughout history, it is rare for a bank, an association or a bureau to work together. Every time a big A-share market appears, it means that China's currency and financial markets will undergo fundamental changes.
To put it simply, along with the introduction of the five major policies of the central bank, I will not list them one by one, but those who often pay attention to the news should know about them. Subsequently, 2,300 stocks rebounded rapidly. Someone will definitely ask why if you have money, you should support the stock market instead of investing in the real economy?
But the central bank stands at a height far beyond the ordinary people's cognition. We all know that China's industry is invincible, and one country can match the strength of the entire Western industry, but haven't you discovered something magical?
That is, the market value of Chinese companies is almost a fraction of that of many American companies. For example, companies like Apple, Nvidia, and Microsoft are often worth trillions of dollars.
The highest point even exceeded 3 trillion US dollars, while many Chinese technology companies have a market value of only hundreds of billions at most. Although there is a certain gap between Chinese and US companies, the gap is definitely not that exaggerated!
Why did such an outrageous thing happen? The answer is simple. China is the world's first industrial power, but not the world's first financial power. Therefore, many companies worked hard to sell products and finally made tens of billions of dollars. As a result, after a trip to the financial market, their assets evaporated immediately. In such an environment, the huge income earned through foreign trade has been unable to return to the country to form an economic effect.
Therefore, as long as the central bank supports the stock market trend in the future, the temporary rise and fall will not affect the overall situation at all, and this may be the first step in the financial counterattack. There are currently three major problems: First, the financial market is not strong, which affects corporate profits. Now, action has been taken.
Second, ordinary people are under great debt pressure, so they started to raise housing interest rates, issue consumer vouchers, exchange old for new, and upgrade industries. These are all ways to increase income for everyone and reduce some burdens!
The last one is that local finances are tight. Judging from the experience of the United States, it is very likely that the central government will step in to replace the balance sheet of local finances. Simply put, it is to use national credit to provide a bottom line. Only in this way can all regions be able to go into battle lightly and regain vitality. Don’t find it incredible. Otherwise, how do you think the United States deal with its 35 trillion US dollars of debt? In fact, it is transferred to national credit. If the United States can use it, naturally other countries in the world can use it as well.
The reason why all the big moves were not released this time is because on the surface the U.S. Federal Reserve began to cut interest rates on September 19, but it is actually still shrinking its balance sheet internally (this is why I am bearish on the B market recently). This means that it is not ruled out that the U.S. will suddenly raise interest rates again to launch a sneak attack!
Let's stop here! If I talk too much, you won't understand. Everyone sees the world differently and has different results. Just follow your heart. [Eat melon]
#A shares return to 3000 points#