The next Tuesday, around 13:50 in the afternoon, Fang Hong was watching the New Securities 50 Index. At this moment, the increase exceeded 2 percentage points. He had completely reversed yesterday's negative line and recovered the 12,000-point mark.
It is poised to hit a new all-time high.
After the NSE 50 index broke through the 12,000-point mark, it has actually reached Fang Hong's target position, leaving enough room for the inevitable adjustments that will follow.
Just when he was about to issue instructions to his subordinates to suppress the market, Tian Jiayi, who was in the company, sent him a message: "There has just been news from the external market. A so-called insider revealed to the agency that the Magnesium Fed
The interest rate hike cycle is about to begin.”
Fang Hong was a little surprised when he heard this, but it was reasonable, and he immediately replied: "The rumors are most likely true. Before raising interest rates, let's do an expectation management for the market. However, at this time, Lao Mei should be in the middle of the night.
It’s really a lot of painstaking work.”
This is an obvious thing. One of the purposes of suddenly releasing such news at this time is to cause trouble for the NSE 50 Index. However, Squidward Group did not expect that Fang Hong was planning to let the NSE 50 Index proceed at this moment.
Periodic callback.
Just now, I planned to let my subordinates do the work, but now I can skip this step.
After chatting with the beautiful assistant for a few words, I ended the conversation and looked at the trend of the NSE 50 Index again. Sure enough, around 14:05, the NSE 50 Index began to fall rapidly. Apparently the news had spread.
At the end of the trading session, the price turned negative and turned green.
Moreover, judging from the flow of funds, foreign capital is flowing out, and the foreign exchange market has also become significantly more volatile.
After the close, the NSE 50 Index closed down -0.36% to 11,746.26 points, with a turnover of 2.16 trillion. It has remained at the 2 trillion level for three consecutive trading days.
The Federal Reserve was about to start an interest rate hike cycle, and suddenly such a gust of wind blew, which immediately attracted the attention of global capital.
When many people heard this news, they thought it was fake news.
Around this time last year, the Federal Reserve lowered interest rates to zero, and also launched unlimited QE. It has only been a year since it was completed. Is this the case or is it going to raise interest rates?
There are also many capital institutions who believe that this matter is definitely not a fiction, especially those of the world's top large institutions. They have richer and more real-time information channels and are well aware of the difficulties that Beijing Magnesium is currently facing.
In the current environment, it is clear that the big Eastern countries and Amalica are competing for global capital to look east or west.
As for the current situation, global capital is obviously looking more favorably to the East. The income from U.S. dollar assets is continuing to be less attractive to funds. The key is that there is a better place on this planet.
Therefore, the U.S. dollar has to raise interest rates to increase the attractiveness of funds, thereby attracting money from all over the world to enter Beijing Magnesium.
Although it has only been a year since the era of zero interest rates began, and it is definitely not the best time for the US dollar to start an interest rate hike cycle at this time, Ah Mei has too few cards to play now, and the opponents are increasingly playing cards.
Come bigger.
Raising interest rates this time is definitely a last resort, and this is the biggest difference from previous interest rate hike cycles.
…
The next day, Wednesday, February 24th.
Today, the three major stock indexes in the A-share market fell across the board, group stocks in the two neighboring cities fell sharply, and the heavyweight stocks in the SGX market also fluctuated and weakened, and the profit-making effect became worse.
The SGX 50 Index also closed a long negative line today, breaking out of three consecutive negative trends. It fell sharply -2.29% after the market closed at 11,477.56 points, with a turnover of 2.08 trillion. Although the volume continued to shrink, the SGX market has experienced a decline in the last five trading days.
The average trading volume per day is maintained at 2 trillion.
"We can let the SGX disclose this year's reforms to the outside world." Fang Hong thought for a while and said, then looked at Tian Jiayi: "Go and say hello to the SGX."
It was around 17:40 in the afternoon. Tian Jiayi thought about this for a while after hearing this, and couldn't help but said: "The market is now in an adjustment period, and with the expectation of the Federal Reserve raising interest rates, isn't the timing a bit inappropriate?"
Hearing this, Fang Hong said simply: "There is no right or wrong time. How can the development and reform of the SGX market be affected by the Federal Reserve? It is necessary to face this expectation head-on and digest the bad news at the same time."
It’s not a bad thing.”
Tian Jiayi nodded: "Okay, I know what to do."
…
After three consecutive days of decline and correction, on Thursday, the SGX 50 Index rebounded 1.37% to close at 11,634.76 points. The SGX market maintained a high trading volume of 2 trillion for six consecutive trading days.
After the market closed, at around 15:39 p.m., the SGX held a press conference and issued a major announcement, which caused a huge sensation in the capital market.
In order to enhance the investability of the index, based on building a multi-level capital market system, and promoting the incubation and cultivation of national strategic emerging industries, Xincheng Stock Exchange plans to launch the SSE Comprehensive Securities Index, the SSE 500 Index, the SSE 1000 Index and
Its index ETFs and industry ETFs solicit opinions from the public.
As soon as this news came out, investors from all walks of life, big and small, went crazy!
Obviously, everyone was shocked by this.
Because there was no news before, the SGX suddenly issued a draft opinion. This made everyone unprepared and was caught off guard for a while.
This news immediately became the front-page headline of today's financial news. Various capital institutions immediately began urgent discussions, and even hundreds of millions of investors were discussing it.
With the announcement of this news, some people were happy and some were sad.
Small-cap stock holders in the SGX market are undoubtedly excited to see this news. This is definitely good for small- and mid-cap stocks. In the current SGX market, the market liquidity allocated to small- and mid-cap stocks is higher than that of the NSE.
There are far fewer super large-cap stocks in the 50 index. The reason is that there is no index or corresponding ETF representing small and medium-cap stocks. We can only rely on institutions and large investors.
Retail investors with small capital cannot trade individual stocks because they cannot reach the threshold of the SGX market.
However, the future launch of the NSE 500 Index and NSE 1000 Index, as well as the corresponding index ETFs, including industry ETFs, will usher in huge liquidity support for the more than 2,000 small and medium-cap stocks currently in the SGX market.
This is definitely a real benefit.
However, this matter is obviously negative for super large-cap stocks. To put it bluntly, it is negative for the NSE 50 Index.
Because there will be more choices in the future, retail investors in Big A do not have to crowd into the New Certificate 50 ETF, and the funds will inevitably be diverted to the New Certificate 500 ETF, the New Certificate 1000 ETF and many industry ETFs.
From now on, the daily trading volume of a single New Certificate 50ETF, which can easily exceed 100 billion, will probably become a thing of the past, and it will be difficult to see such terrifying volume in the future.
In the future, the daily trading volume of a single ETF will drop to 100 billion or 500 to 600 billion a day.
This round of major reforms in the SGX market will only be negative for the SGX 50 Index in the short term. In the long term, the fundamental logic has not changed. On the contrary, the market has become more and more perfect.
However, this matter is extremely negative for the two neighboring cities!
At this time, the majority of retail investors have not realized this. Only a small number of people have realized this, and the majority of basic citizens are even less aware of it.
Those financial rentiers have realized that something is bad. They can see at a glance that the SGX is no longer allowed to suck the blood of the SGX. The reform this time is to unplug the tube that sucks the blood of the SGX.
