It feels like the stock market is bullish, but the cryptocurrency market is a bit sluggish. Are you all withdrawing your cryptocurrency to A-shares to wait for the bottom? !
The trading market really wins people over with its rising prices. Once it rises, people immediately come back. I thought the stock market had been thrown into the garbage heap and no one played it anymore, but I didn't expect that overnight, everyone would be talking about stocks. Yesterday, the Shanghai Stock Exchange conducted an intraday test for the first time. The market index rose by more than 6%, and the index rose directly to above 3,200 points. The intraday increase was nearly 200 basis points. How crazy is this?
The key point is that stock investors have not yet participated. Basically, brokerage firms are simulating orders on behalf of stock investors. If all stock investors participate in simulated trading, the market index may directly reach the daily limit.
There are obviously more people around me talking about stocks. The big Vs have dusted off their bodies and started to sing bullish songs. I just saw Lin Yuan, the folk stock god, shouting: A-shares will only start the bull market when they rise to 4,500 points! Many banks' large-denomination certificates of deposit are no longer attractive. Some even deposited today will be withdrawn and transferred to the stock market tomorrow.
In the past few days, we have seen a lot of positive news from the central bank. The positive impact of the reserve requirement ratio cut has been implemented, the interest rate cut has taken effect, and the adjustment of the interest rate of existing mortgage loans has also been clarified. What's next?
The central bank reiterated over the weekend the promotion of securities, funds, insurance company swap facilities and stock buyback and increased re-lending. What signal does this send?
Judging from the market sentiment, after a weekend, the central bank may be worried that the market has forgotten that there are still such great positive factors that have not yet been implemented.
First of all, the initial amount of the swap facility for major financial institutions is 500 billion yuan. It has been made clear before that if the effect is good, there may be a second and third phase and so on.
What this means is that each institution can obtain a certain amount of liquidity funds from the central bank by using the financial products in their hands as collateral, and then use the funds for stock market investment. The key is that they can only invest in stocks, which means that if this policy is implemented, there will be another 500 billion yuan of incremental funds waiting to enter the market.
Secondly, stock repurchase and shareholding increase re-loan mainly refers to listed companies obtaining loans from banks at a lower interest rate for stock repurchase and shareholding increase. The loan interest rate is around 1.75%, which is very low. The initial scale is around 300 billion.
In a sense, for those companies with high dividends, the annual dividend rate is already higher than the repurchase rate, which means that the repurchase enthusiasm of listed companies is relatively high, which is equivalent to giving money to listed companies.
So, now you know how valuable these two policies are!
If the central bank's reserve requirement ratio cut and interest rate cut are a general release of liquidity to boost market confidence first, then swap facilities and repurchase and re-lending are more precise stimuli for the stock market recovery. Moreover, these two items have brought in nearly one trillion yuan of incremental funds into the market for the first time.
There is no need to worry about the lack of incremental funds entering the market in the future. Now that policies are in place, a large amount of off-market funds are already rushing into the market. The next step will be to accurately regulate the entry of funds into the market, which is expected to prompt the market to move out of a larger level of main upward trend.
In comparison, the cryptocurrency market is not so good. Everyone has been watching you for almost a year, but you are still half dead. CZ has also come out and said that he doesn't care about Binance anymore. I guess he is tired of the cryptocurrency circle. He didn't make more money but got into trouble. He might as well go all in on the A-share market. $BNB