The chairman of the China Securities Regulatory Commission, Yi Huiman, said that by the end of 2020, foreign investment has maintained a net inflow for three consecutive years, and foreign investors’ holdings of A-share assets exceeded 3 trillion yuan. The attractiveness of China’s capital market is strong, foreign capital has also received good returns, and the potential is still great. At present, there are also some interesting phenomena in the market. For example, some scholars and analysts pay more attention to external factors than domestic factors. They pay more attention to U.S. bond yields than LPR, Shibor and China Treasury bond yields, and pay more attention to overseas inflation expectations than domestic CPI. I will not comment on this phenomenon, but in light of the new development pattern, I suggest you do some thinking.
Recent regulatory actions are as follows: 1. The Banking and Insurance Regulatory Commission strictly inspected the entry of operating loans into the housing market and the stock market; 2. The China Securities Regulatory Commission emphasized that the registration system never meant relaxation of review requirements; 3. Popular funds suspended subscriptions; 4. Yi Gang stated that my country has Larger room for monetary policy control. Monetary policy has always been maintained within a normal range, with adequate tools and appropriate interest rates; 5. Yihuiman commented on the market: Many institutions paid too much attention to changes in overseas markets and neglected to pay attention to their own factors; as long as there is no excessive leverage, they will not pay event. It can be seen from the above that the regulatory attitude is clear, the market must be stabilized, and it is based on the healthy, long-term, and benign development of the market. In short, it is “stable.” As for the overseas market mentioned by Chairman Yi, it mainly refers to the yield of U.S. Treasuries. The original words are: “Some interesting phenomena have also appeared in the market. For example, some scholars and analysts pay more attention to external factors than domestic factors, and pay more attention to U.S. bond yields than LPR, Shibor and Chinese Treasury bond yields. Inflation expectations are more concerned with domestic CPI. I do not comment on this phenomenon, but in light of the new development pattern, I suggest you do some thinking.” From the historical data, China’s stock market is indeed affected little by changes in U.S. bond yields, more It is affected by domestic monetary policy and economic growth. However, the monetary policies of various countries now have a certain degree of mutual influence and mutual restraint, and there is a certain correlation between the overall volatility of A-shares and U.S. stocks. After the epidemic, the world’s currencies have loosened, and the global stock market and housing market have risen together. At present, all countries’ worries about inflation and interest rate hikes after inflation have surpassed the impact of the epidemic on the economy. At the US FOMC meeting on interest rates last Thursday, Powell’s signal was that although there are internal differences, interest rates will not be raised in the short term. Economic growth is still doubtful, employment is still unstable, and inflation rises are temporary. If interest rates are raised, it will be temporary. Communicate with the market in advance. Regarding my country’s domestic monetary policy, the President of the People’s Bank of China said on the 22nd: implement a prudent monetary policy; maintain the continuity, stability and sustainability of the policy. In mid-January, the central bank scaled down and continued the MLF to tighten funding in order to respond to short-term asset price increases and increased leverage in the stock market, real estate market, and bond market. Subsequent MLF equalization operations have achieved zero investment and zero withdrawal of funds. The domestic market is currently at a relatively high level, but compared with the US economy, there are the following differences: 1. The domestic impact of the epidemic is relatively small, and the United States, etc. The difference between countries that have just stepped into recovery is that my country is already in the mid-stage of recovery from the epidemic, and there are a large number of high-quality assets in itself, and the upward pressure on my country’s national bond yields is relatively small; 2. Because the overall economic situation is better, the rise in commodities has brought about The impact of imported inflation is controllable and not enough to have an impact on my country’s monetary policy; for individuals, no leverage is the first and most important principle of investment. Secondly, the market turbulence has intensified recently, so don’t do it is the best strategy.