Chapter 1425 [Beware of straying from reality to imaginary]
As time went by, in the afternoon, the broad market indexes of the three major A-share markets maintained a unilateral upward trend across the board.
At around 13:17, the NSE 50 Index successfully reached the 4,900-point mark, and the increase expanded to 3 percentage points. The distance from the 5,000-point mark has been shortened to within 100 points, and funds from all walks of life in the entire market are boiling.
The large financial sector also rose rapidly after 13:20 in the afternoon, with the brokerage sector once rising by more than 6 percentage points, breaking through the high point on November 19 last year.
In the current market situation, the short sellers have been beaten. As long as you go long, it is difficult to lose money by just buying with your eyes closed.
By the close of trading, the three major A-share stock indexes had surged in volume across the board.
The New Securities 50 Index rose 3.35% to 4945.19 points; the Shanghai Stock Exchange Index rose 2.68% to 2754.36 points; the Shenzhen Component Index rose 3.95% to 8446.92 points.
The total transaction volume of the three major trading markets was 1,723.1 billion, and the volume in the two neighboring markets was also very obvious, adding up to more than 500 billion. The transaction scale of the SGX market today once again set a new historical record, becoming a new record with a transaction volume of 1,175.4 billion.
The largest single-day trading volume since the stock exchange market opened.
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Xincheng, Jingxinju Villa.
At this moment, Tian Jiayi is reporting to Fang Hong: "The influx of overseas hot money is obvious, and what is certain is that the short-term funds from the off-site are accelerating to enter the market, and leveraged funds are definitely increasing, including over-the-counter capital allocation."
After hearing this, Fang Hong said simply: "Let the SGX strictly investigate and control the entry of leveraged funds into the market, especially OTC capital allocation."
Today, the turnover of the SGX market not only once again returned to the single market and exceeded the trillion-level turnover, but also set a new historical record. The scale of transactions in one day reached an astonishing 1,175.4 billion, and funds that were short of the market came into the market one after another.
Among them, there are some people who are using leveraged funds again. There is too much good news in the current market, and they are all real and major good news. Now there is a meeting at this time, and everyone is looking forward to some news that is good for the financial market during the meeting.
Not only has domestic capital begun to secretly increase leverage to engage in capital allocation, but foreign capital inflows have also surged. More and more international hot money is also pouring into the SGX market. Since the beginning of the new year, it is good that the offshore RMB exchange rate has strengthened again.
reflect.
Fang Hong said in a deep voice: "The SGX market is going to rise. There is no problem. The general direction is to maintain the upward momentum. There is no problem if the market with a trillion-dollar turnover becomes the norm, but the money cannot be leveraged, otherwise the disaster-level disaster in 2015 will happen."
The market will repeat itself again."
As long as the funds on the market do not have too much leverage, it will not be a big problem. Even if the mood ebbs, there will be no stampede. After all, the SGX market has multiple bottom-up mechanisms such as trillions of stabilization funds.
Moreover, Fang Hong had already suppressed the spatial height last year. In October last year, the NSE 50 Index rushed above the 4,500-point mark. If it had not been suppressed, it might have exceeded 5,000 points on November 19 last year.
After reaching 4500 points in October last year, it began to enter the adjustment stage, and at the end of the year it even unilaterally pulled back to 4200 points.
Just to reserve room and height for 2019, Fang Hong is letting the SGX market play a market capitalization competition with Bei Magnesium Capital Market, but this does not mean blindly soaring. We cannot rely on the fact that SGX is in the "teenage" stage.
At this stage, he has no scruples and consumes money like crazy.
The other one has to wait for the value of the company itself to grow. Market bubbles and value growth cannot deviate too much, and the return on investment can clearly and significantly lead the stock market.
The key is to strictly control the entry of leveraged funds into the market. The return on investment in the stock market is so high, which also amplifies human greed. The NSE 50 Index is heading all the way to 5,000 points. The bull market has lasted for more than three years, and many people have forgotten that 2015
Years of pain.
The necessity of controlling leveraged funds is self-evident.
If left unchecked, not only would it be bad for the market itself, but it would also gradually drive the entire population to "break away from reality and turn to virtuality" to repeat the mistakes of Lao Mei. How much leverage did hedge funds add to the various financial derivatives in Lao Mei's capital market?
If leveraged capital allocation is ignored and left unchecked, no one will have to work, and no one will want to work. If you can get rich in the short term in the stock market, you can get rich by trading stocks. Who will still want to work? Who will still want to work? Who will still want to work?
Are you willing to engage in the real economy?
In this way, if things go on like this, in less than ten years, the country's economic fundamentals will inevitably move towards the road of "shifting from reality to virtuality", which will inevitably lead to the hollowing out of internal industries. Isn't this the current path of Lao Mei?
Facts have proved that without the fundamental support of the real economy, it will be a dead end after the virtual economy takes over. In the end, it will just drink poison to quench thirst and eventually explode on the spot.
Fang Hong will not go to extremes. Instead, physical advancement and virtual economy will coexist and prosper. He will find a balance between the two and will not go to extremes.
The two cities next door are another stage. For a long time, the villagers believed that if the stock market keeps rising in a bull market, it will not be conducive to people's struggle. If they can easily make money from the stock market, they will not want to work, and they will get something for nothing.
, so we come to the conclusion that the stock market cannot rise.
This is a typical situation that goes to the other extreme. Except for a few financial rentiers, the vast majority of people are harvested until their pockets are dry. The result is sluggish consumption, which then stimulates consumption and releases inflation.
However, funds cannot flow to the lower strata and can only circulate in the financial system, leading to a huge temperature difference between inflation for the rich and deflation for the poor. The two groups cannot empathize with each other.
Now that Fang Hong has the ability to make changes, he will naturally not go to extremes. The real economy and the virtual economy should find a balance to coexist and prosper together. If the stock market rises, the real economy cannot be discarded.
This chapter is not over yet, please click on the next page to continue reading! In other words, we want all people to stop thinking about the wealth appreciation of financial assets as the core and main source of income.
But it is also true that human nature is greedy. When under normal circumstances it is certain to make a guaranteed profit of 100,000 yuan, one will think of adding ten times the leverage to directly make 1 million or even 10 million.
Obviously, similar greed must be resolutely eradicated.
Fang Hong allows someone to earn 1 million or even 10 million, but he is not allowed to do it by leveraging. Earning the same amount of money without leverage means that he has contributed enough physical wealth to society.
The root cause is still the redistribution of wealth, but it is redistributed from the capital market.
Trying to leverage ten times or even dozens of times leverage funds to obtain huge profits in the short term. To put it bluntly, people who are supposed to get one share are greedy and want to take ten or dozens more shares than others. Such distribution will eventually cause problems.
, and if there is a problem, it will explode in the form of a concentrated explosion, which is the so-called blood collapse, and there will be nothing but chicken feathers on the ground.
To condone leverage is to let the current group of people eat everything up, leaving nothing for the people behind, and only letting the latecomers take over. The latecomers may suffer several losses and be fooled several times, but they cannot always be fooled. In the end, they will either
He just doesn't want to play with you, or he just flips the table over.
But at this moment, Tian Jiayi looked at Fang Hong and asked: "Where is the influx of international hot money?"
Hearing this, Fang Hong said calmly: "Don't worry about it. There is an upper limit on the shareholding ratio of foreign capital in companies listed on the SGX. Hot money can't afford to splash. If there is too much short-term hot money, long-term patient capital will be needed."
Take less and let them play the game."
If foreign investors take more long-term patient capital, the share of short-term hot money will be smaller, and they will not be able to make waves; vice versa, if they take more share of short-term hot money, they will take less long-term patient capital. When the hot money is gone,
, Patient Capital will take over.
Because the upper limit of foreign capital's shareholding ratio in companies listed on the SGX is currently fixed, no matter what they do, it will not affect the tone of the entire market. At most, it will only have some short-term impact, which is completely controllable.
