Why did the central government decide to prop up the stock market?
There is no other way, there is really no other way
It is tearful to talk about it
Real estate,
Large in size, poor in quality, serious land abuse over 20 years, built houses for grandchildren. But there will definitely be no grandchildren, the population has collapsed. The central government knows that it can't pull it up, and it has to continue to fall;
Big infrastructure,
It's saturated, there is no place to build, just like a certain Twitter friend said, unless you install an elevator on Mount Everest;
Manufacturing,
Serious overcapacity, involutionary price war, and if you make all the manufacturing workers in the world unemployed, the whole world will collectively boycott you, because their society also needs stability, and their politicians also want jobs and tax revenue;
Consumption,
As of 2022, the leverage ratio of the people has exceeded 60%, reaching the average level of G20 countries, but the average per capita GDP of G20 countries is US$17,688, and China's is only US$12,600. This is achieved under the premise of maintaining the value of the RMB through foreign exchange controls. In fact, there is not that much. The figures of the Statistics Bureau are not credible. The people are carrying such heavy debts, what do you want them to spend? Unless the central government gives money to the people, but the people would rather use it to pay off debts than spend it. The central government knows it, so fuck it, just don't give it.
Investment,
The average profit margin of industrial enterprises above designated size is only 5%, and many enterprises are making losses. Why are they still investing in expanding reproduction? Mental illness? Local governments do want to invest, and they don’t have to pay back the money anyway, but the efficiency of government investment is very low, and the marginal utility of GDP is decreasing. The central government also knows that it is a bottomless pit.
Finally, after thinking about it, I decided to invest in stocks...
So, is this a flash in the pan or a hundred flowers blooming?
Worth pondering! ! !
