boyutpedia Chapter 1317 [Struggle for Global Liquidity and Market Pricing Power]
Chapter 1317 [Struggle for Global Liquidity and Market Pricing Power]
Chapter 1317 [Struggle for Global Liquidity and Market Pricing Power]
Foreign investors are also worried that they will become leeks. After all, there is an existence behind the SGX market that they cannot ignore.
That is Qunxing Capital.
Anyone who has been involved in the financial capital circle knows how powerful Qunxing Capital is. The repeated setbacks suffered by the capital tycoons on Wall Street are all thanks to Qunxing. Qunxing is definitely at the top of the food chain in this field.
Moreover, anyone with a discerning eye knows that the birth of SGX and its achievements today have a lot to do with Qunxing Capital and Fang Hong. In fact, Fang Hong is the real decision-maker behind the scenes.
Foreign investors who want to play in this market are, on the one hand, envious of the investment returns here, but on the other hand, they are worried that Fang Hong is setting a trap for them. If the New Securities 50 Index has risen so sharply in the past two years, is it just to attract foreign investors to take over?
After the news came out, some people thought that the SGX market had taken two years to push the index up to such a high level and pushed asset prices to such a high level just to attract foreign capital to take over.
Wall Street or the capital group of North Mei is very unhappy with the way SGX plays its game. Although it has been trying to make a certain big country to continue to open up in the financial field, they do not want to see the way SGX opens up.
Lao Mei hopes that the prices of assets in your market will be driven down to below the floor price, so that he can come in and buy at the bottom and snatch away your high-quality assets at a bargain price.
At the same time, we also don’t want your market to rise. It’s better for it to stay on the floor forever, and then prepare some tools that are conducive to shorting the market. This is the situation I want to see most. I can reap a lot of wealth in your market, and at the same time I don’t have to worry about your market competing with the U.S. stocks for global liquidity and pricing power.
But now the SGX market has become a unique landscape in the A-share market. It has been bullish for two years since its opening, with the highest return on investment in the world. It is still able to maintain its position and there is no sign of a collapse.
Now the scale has also increased, and it has become a huge market with a scale of over 37 trillion.
New Town Securities has become the world's fourth largest stock exchange with a total market value of US$5.53 trillion. Currently, the top three stock exchanges in the world are the New York Stock Exchange with US$19.22 trillion, the Nasdaq with US$6.83 trillion, and the London Stock Exchange with US$6.18 trillion.
In other words, the SGX has now become the largest stock exchange in the non-Western world. It has grown to this level in just two years. What if it were given a few more years?
The rise of the SGX market is something that old magnesium absolutely does not want to see, because it is a huge potential threat to the magnesium stock market. If the SGX opens up access to foreign capital, it will compete with the magnesium stock market for global liquidity and pricing power.
Moreover, there is no good way to suppress the SGX 50 Index, because there are no short-selling tools in the current SGX market, let alone such a powerful tool as the restricted stock transfer and financing. If you want to short-sell in the SGX market, you can, but you have to pay for the chips first. In this market, you cannot short-sell chips that you don't have.
This results in short sellers paying extremely high costs, and short selling in the SGX market is quite dangerous, with risks and benefits being completely disproportionate.
Not only are there no abundant short-selling tools, but the trading mechanism is T+3 for institutions and T+1 for retail investors, which makes short-selling more difficult.
When Fang Hong was doing the top-level design for the SGX, he was more inclined towards the bull market. This is also an undeniable objective fact. Many rules of the game are conducive to long positions and not to short positions.
Because from the very beginning Fang Hong was aiming to create a long bull market and allowed a certain valuation bubble to exist in the market, especially the technology bubble.
Now the results are gradually showing. In the past two years, technology growth stocks in the SGX market have generally seen an encouraging rise, and capital is more inclined to invest in the technology industry. No matter what, after a technology bubble was blown up, real funds have continued to flow into the technology industry.
Some celebrities and technical experts in the technology circle can even raise funds by using facial recognition. Funds have flowed into the technology industry, and practitioners in this industry have also received higher salaries. A lot of money has actually flowed into the real economy, and it will also promote technological advancement.
This is also the positive effect of the bubble, and this is what Laomei did, blowing up the bubble of technology stocks to attract global capital to invest in Beijing and Silicon Valley.
So from the perspective of Lao Mei, of course I hope that the technology bubble in the U.S. stock market will blow up, but you can't do that in the stock market of a big Eastern country. It's best if your stock market keeps falling. This will not only curb your technological development, but also curb the liquidity of global capital. Capital will not come to you, but will go to the capital market in North America, and you will lose your financial pricing power.
Now the rise of the SGX market has blown up the technology bubble and has strongly supported it from being punctured. More capital is enjoying the technology bubble and continues to invest in the technology industry, promoting the upgrading and development of technology.
At the same time, the investment return rate of the New Securities 50 Index has led the major global stock markets for two consecutive years, and its extremely high investment return rate has also attracted the attention of global investors.
For many years, Taiwan has been clamoring for a certain Eastern giant to continue to open up its financial markets. However, when the SGX market opened up access to foreign capital, Taiwan rejected it because it knew very well that the SGX market was going to compete with the Beijing capital market for global liquidity and market pricing power.
More importantly, there is still a big gap between the SGX market and magnesium stocks. The size is still an order of magnitude apart, but the temperament it has demonstrated has the potential to compete, and even if it were a piece of mud, it would not be taken seriously.
At this time, America's lackeys took action again to please their master, but they performed a reverse operation.
Just when the outside world was hotly discussing the issue of the SGX market opening up to foreign investment, the lackeys began to post articles and videos to make a serious analysis, saying that this was an act of compromise by Qunxing, and that they hoped to use the opening of the SGX door as an exchange to ask Amy to remove those companies in the Qunxing system from the blacklist.
At first glance, it seems to be true. After all, according to previous experience, America has always been criticizing and demanding that a certain Eastern giant relax and open up its financial markets.
In addition, the blacklisting incident happened just a month ago, but the SGX market didn’t come early or late, but it just happened that not long after the blacklisting incident, it released news that it would open up channels for foreign investment. This is obviously the result of a compromise.
This fierce action of the lackeys can be regarded as a back-stabbing between the lackeys and their masters. America almost wanted to kill these lackeys. They were more of a hindrance than help, and they were just a waste of dog food.
However, some Chinese people were still influenced by this voice. After reading this analysis, they felt that it made some sense, and a new uproar arose in the public opinion field.
There is also a lot of debate about whether the Singapore Exchange should open up access to foreign capital, with some people agreeing and some against.
Those who agree believe that SGX has the ability to thrive in this market, and they believe even more in Fang Hong’s ability.
Some of the people who oppose it are influenced by the remarks of the lackeys, and some are limited by their own cognition and still feel guilty when facing Western financial capital. They think that they will not be able to defeat the other party in the future, so they are good enough now, and they can't understand why others should be allowed in.
……
(End of this chapter)