A-shares pulled back to 3,000 in 3 days
I personally feel that the top leaders want to reverse the pessimistic expectations of society this time. The death spiral of deflation must be broken by external forces, otherwise it will be a bottomless pit. If this time it turns into a scam market, it means that the credit will collapse, and no one will believe what they say in the future. It will be a big blow to the confidence of the entire society. Reducing the interest rate of stock is a real burden reduction, but not much. What can really reverse expectations is to make everyone have the illusion of wealth and consume more. Obviously, the housing market cannot have another wave. The only one with a wide enough coverage is the stock market. People who trade stocks are still the backbone of this society. The number is large enough and they have consumption capacity. It’s just that everyone is unwilling to consume under pessimistic expectations. As long as the stockholders have the illusion of wealth, it will inevitably promote consumption and break the deflationary spiral. As for what will happen later, let’s talk about it later. Let’s rescue the people first and then slowly adjust them.
