"Recently, we are not only compiling data on the Hang Seng stock market, but also on the situation between China and the United States.
I can tell you this, a small situation is very likely to affect the direction of the entire Hang Seng stock market.
Based on this, I am sure that Hang Seng's market will definitely rise to a new height."
Zhou Zihao said with certainty.
"Is it?"
Luo Jiaming narrowed his eyes, and then said: "Let's talk about it. If what you said is accurate, we will immediately buy the Kamai Mall.
If this wave really goes up, we will at least earn several hundred million."
"good."
Zhou Zihao opened the first picture and started explaining.
"This picture is China's GDP growth chart over the years.
As can be seen from this picture, China's GDP index has been rising slowly since 2006, and its growth from US$3 trillion to US$34 trillion in 2015 was all achieved through bank credit.
This is data only for 15 years.
Under such crazy bank expansion, we conclude that China's banking system is no longer able to support further expansion.
They need to rely on a one-time depreciation of the Chinese currency to boost exports.
The depreciation of the Chinese currency will stimulate economic and trade growth, thereby boosting the entire stock market.
Including Shanghai Stock Exchange Index, Shenzhen Stock Exchange Index and A-share index.
Of course, as the most cutting-edge Hang Seng stock market, I believe it will benefit the most."
Zhou Zihao pointed at the picture and said.
"What if China doesn't choose to release money? You have to know that China released money in 2008, and as a result, housing prices skyrocketed.
What if there is no economic relief?”
Luo Jiaming asked.
“We don’t need to worry about this.
How much money did the United States release this time? Four trillion U.S. dollars. A total of four trillion U.S. dollars was thrown into the market.
Every time the market is rescued, a lot of dollars are thrown in.
By the same token, if Huaxia's banks have 10% bad debts (3.5 trillion U.S. dollars), how much bailout is needed, and how much does the Huaxia currency need to depreciate?
The fluctuations in the stock market are just off the balance sheet.
Once a bad debt occurs, the bank will bear it and then it will be included in the balance sheet.
Then through the tbr (trustbeneficiaryreceipt) interest rate adjustment, thereby affecting the bank."
Having said this, Zhou Zihao drew another picture.
"This is the information and information we got from Wall Street.
According to the imf's estimate, the minimum level of foreign exchange reserves is 2.7 trillion (foreign exchange reserves at the end of January were 3,230.9 billion). According to the rate of loss of 100 billion per month, there will be less than half a year...
Therefore, within this half year, if China wants to stimulate further economic development and catch up with the United States.
Then the Chinese currency must be devalued."
Zhou Zihao said.
"What you said makes some sense. But now I see that the Chinese currency has been rising against the US dollar recently.
This shows that China does not want to accept this wave of US dollar orders at all.
Moreover, China is still limiting power and production capacity, so we don’t see any intention of taking over this wave of water release.”
Luo Jiaming also comes from an economic background, so naturally he will not let go of these small details on the issue.
"This is why China must devalue to stimulate the economy."
Zhou Zihao adjusted his glasses.
“In 1960, in order to develop, South Korea’s Samsung gave 80% of its shares to a Wall Street consortium at a low price.
It is precisely because of this that a large number of free patented technologies have been obtained from the United States for free.
Then it started to flourish.
Today, the entire Samsung Group accounts for more than 76% of South Korea's GDP.
In other words, Koreans can no longer leave Samsung.
And Samsung is the big cow of the Wall Street consortium.
It is equivalent to continuing to use Samsung's big teat to produce milk for the Wall Street consortium.
By the same token, in 1985, because Japan was unable to resolve its trade surplus with the United States, it signed the Plaza Accord under the pressure of the United States.
The Plaza Accord caused the Japanese economy to burn into ashes for twenty years.
It has completely become the economic cow of the United States.
These are two of East Asia's once strongest economies.
Focusing on the Middle East, at the 1980 oil conference, the United States determined that oil settlement must be pegged to the U.S. dollar.
This is why the US dollar has always been the hardest currency in the world.
What do these examples illustrate?
This shows that oil, as well as many large economies, are already tied to the U.S. dollar.
Now is the process of market economy and global integration.
China alone cannot stop the US dollar from selling out and others taking over.
Therefore, if the Chinese currency is pegged to the U.S. dollar at this time, causing it to appreciate against the euro and yen, it will lose its manufacturing competitiveness.
At this time, there is a need for the Chinese currency to depreciate.
Once the Chinese currency depreciates, it will be equivalent to one U.S. dollar in hand now, which can buy things that could only be bought with 1.5 U.S. dollars.
China's manufacturing industry accounts for 62% of the world's manufacturing industry.
When the devaluation stimulates exports and the economy surges, it will definitely drive a surge in the entire market.
Therefore, I am optimistic that the Hang Seng stock market will rise to 28,000 points.