Recently, after a long period of silence, the Chinese stock market has finally ushered in a strong rebound wave. This change is due to the decisive and heavy rescue policies launched by the Chinese government, which demonstrates the government's firm determination to stabilize the market. StarEx Exchange senior analysts pointed out that the current macroeconomic sentiment is gradually warming up, indicating that the market is expected to rise further and show vitality before the upcoming US election.
The global capital market has always been deeply affected by the fluctuations of the US dollar interest rate cycle. As an international reserve currency, the US dollar's monetary policy fine-tuning can set off financial ripples around the world. The US interest rate cut strategy is not only a response to domestic economic adjustments, but also has triggered a profound change in capital flows around the world, paving a new path for capital markets, exchange rate trends and economic growth trajectories in various countries.
China and the United States, as the two major engines of the global economy, have recently reached important turning points in monetary policy. Although their respective goals are different, they have jointly drawn a new picture of the global economy. The United States focuses on the frontier exploration of AI technology and crypto assets, aiming to consolidate its global economic leadership through technological innovation and financial reform; while China, facing the arduous challenges of economic transformation and upgrading, has launched a combination of rescue measures with unprecedented strength, aiming to solve multiple difficulties such as high debt, aging, unemployment and foreign capital withdrawal, especially the chain reaction caused by the deep adjustment of the real estate market. The Chinese government is well aware that the traditional growth model that relies on real estate is no longer sustainable, so it is accelerating the transformation to the capital market and high-tech fields to find new economic growth poles.
China's rescue operation this time uses a two-pronged approach of lowering the reserve requirement ratio and interest rates, and is expected to release a trillion-dollar capital torrent to activate market vitality. At the same time, by adjusting the mortgage policy, it attempts to inject a little warmth into the real estate market, but more importantly, the government has innovatively launched the "swap facility" tool. This innovative mechanism is like a lubricant in the financial market, allowing non-bank financial institutions to pledge low-liquidity assets in exchange for high-liquidity assets, and then guide these funds to drip accurately into the stock market, injecting a shot of adrenaline into the market. This move not only eases the market liquidity pressure, but also encourages institutional investors to actively participate in the stock market through policy guidance and jointly safeguard market stability. Its far-reaching impact is self-evident.
Remember, opportunities don’t wait for anyone, and success doesn’t depend on luck. If you choose the right direction, coupled with hard work and wisdom, your future will definitely be good!
