Shi Hanbing: Guard Against Internal And External Collusion And Short China

Human

This reminds me of China's economy and stock market.

In China, there is pessimism.

Regardless of whether this logic is consistent with the most basic common sense, let alone explore the question itself: if anyone is short of China, who will bring it?

Soros believes that the world is flawed, and every market is flawed. What he wants to do is find flaws and maximize their interests by using defects.

If we relate to the Chinese economy, we will find the link between Rhonda Bain and Soros: in the case of China's rapid economic growth, China's stock market has not only failed to reflect this growth, but has returned to the spot 10 years ago.

Overseas, the stock market is generally regarded as a mirror of the real economy.

The stock market is marking the economy. It may fail at certain stages, but it can not always fail.

When China's stock market is in the doldrums, overseas will first look at the bad performance of the stock market and reexamine and assess whether China's economic growth contains water and whether there is still a huge problem that remains unknown.

Once they have identified this doubt, they will go all the way to China.

For them, this kind of thinking is not surprising at all.

That is to say, the strength of overseas shorting China is attracted by the performance of the Chinese market itself, which has made great attraction to overseas speculative forces such as hedge funds.

Despite the turmoil in the subprime crisis, the US stock market is still near its historical high.

As a mirror of the real economy, the stock market brings people the information that the US economy is fully recovering. How can anyone dare to go short of the US in such a situation? Even if "sing empty" or "sing bad", how much impact will it have on the United States? In fact, one thing the United States has been doing is to let the us go nowhere.

In March 11, 2011, Bill Gross, a "billionaire investor" known as the "king of bonds", confirmed to reporters that his bond fund, Pimco, the world's largest bond investment company, had sold all of its US government bonds and moved to big positions in, and began to switch to emerging market and corporate bond markets.

Gross said that such investment strategy is mainly concerned about the US fiscal deficit and the prospect of the US bond market.

But in less than half a year, in August 29, 2011, British media reported that Bill Gross, chief investment officer of the world's largest bond fund Pacific Asset Management Co, admitted that it was a mistake to make short selling of US Treasury bonds.

Affected by the Japanese earthquake and the European debt crisis, a large amount of capital flows into US Treasuries, and the price of treasury bonds steadily increased after March.

After the S & P downgraded the US, the price of treasury bonds continued to become a safe haven for global funds.

In August 2011, when the global financial market was in turmoil, the price of us 10 - year treasury bonds rose sharply, resulting in the yield of treasury bonds falling below 2% for the first time in 60 years.

Gross said, "when you behave worse than the index, you only have to go home at night to drown your worries."

Even the short selling behavior of the world's largest bond investment company like Grosse has suffered a lot in the United States. After a few years, it has also left its heart throbbing and dull pain.

Another example.

In October 19, 1987, the US stock market plummeted. The Dow Jones industrial average price index dropped to 508 points, or 22.6%, and many people did not know what had happened. Following the blind selling, a big crisis was coming.

Greenspan, the chairman of the Federal Reserve, has taken decisive measures to reverse the popularity of the stock market so that the stock market crash has almost no impact on the real economy.

From these examples, we can see how tightly the United States defenses against the short sellers.

In contrast, as a big economy, what China lacks is actually a habit of introspection.

When the stock market fell sharply, the IPO went on as usual. It seemed that we only respected the rules of the market.

This is very absurd and ignorant.

China's disregard for such a long and rampant act of shorting, even conniving, allowing it to gain substantial profits, is a good encouragement to the short sellers, and will attract more overseas forces to short China. Once this impression is formed, it will condense immense.

In order to avoid overseas forces from going to China in a big way, we should first reform, improve and perfect the system without leaving any defects and not giving short sellers opportunities.

Secondly, do not "empty" - the global leading edge of the stock market decline is actually the expression of "emptiness".