I don’t know if you’ve noticed, but the global stock market has been hitting new highs lately, but A-shares and Hong Kong stocks are the two exceptions that are falling, even the trend and pattern are almost the same. In the past two years, the capital flow between Hong Kong and China has become increasingly close, and even Hong Kong stocks have gotten A-share disease. After political integration, capital market integration is also inevitable. Of course, this also has a lot to do with the more passive political and economic situation in China and Hong Kong under the trend of global capital circulation.
Foreign enthusiasm is like fire, these two stock markets play dead every day, what is happening? I found that these days the FTSE A50 flash crash from time to time, foreign capital also continuous net outflow, 4 days wildly sold 13.2 billion. And hold stocks also followed the kill, the index directly scared to their knees! To put it bluntly, the market is worried about the moths in the periphery.
China-US relations are tense, the United States and allies of sanctions in waves, the capital will of course be aware of the words. South China Sea, Taiwan Strait atmosphere is increasingly tense, the Chinese Communist Party in the political, economic and military relations with the United States is getting colder and colder, which has to make people think.
On April 8, the U.S. Senate introduced a bill called the “Strategic Competition Act of 2021” and announced that it had the support of legislators from both parties. From the content of the bill, which is more than 20 pages long, it can be said that it is very unfavorable to the Chinese Communist Party, with the implication of “comprehensive confrontation”; it is also the first programmatic document prepared by the United States after Biden took office. On the same day, the U.S. Department of Commerce announced the inclusion of seven Chinese supercomputing entities in its “entity list,” which should not be just a coincidence. In fact, when Biden announced his $2 trillion infrastructure plan, “to win the competition with China” was one of the reasons. In his first press conference, he claimed that “China will never be allowed to surpass the United States during his term of office”.
After Biden “won” the election, his crackdown on the Chinese Communist Party did not abate. A typical example is the Xinjiang issue, in which he joined hands with allies to impose sanctions on the Chinese Communist Party and hit it hard. The Chinese Foreign Ministry can only put out the war wolves to put out harsh words, this said “resolutely oppose and urge the United States to immediately stop the wrong approach” and so on, but these are not helpful, even their own incitement to the public boycott Nike, H&M this thing can only end up in a dismal, dusty. In the end, they are still afraid to use the double-edged sword of nationalism to deal with Europe and the United States.
At present, the Chinese Communist Party’s countermeasures are indeed limited, and it can only bear the bitter consequences of sanctions itself. In the “list of entities” involved in the two listed companies, China Great Wall once fell, Xinwei communications announcement clarification still fell 5%, the technology stocks also took the ditch!
To put it bluntly, the world speaks with its fists, science and technology, military and finance are the three fists of the United States, the strength is also the strongest. And A shares of the three most slagging sectors, is the technology brokerage military! From the stock movements of the two markets, you can see the huge gap between the national strength of the two countries.
A shares of the plunge, and the U.S. sanctions have a lot to do with it, resulting in the flight of foreign capital. a50 was shorted, has a lot to do with it. I just saw the news that global sovereign funds are significantly reducing their positions in emerging markets, and China is certainly the first to do so. Personally, I think this may just be the beginning.
Of course, April 9 A-share plunge another reason, is the thick eyebrows Shunfeng Holdings burst, a word down triggered a chain reaction, 15 tens of billions of funds have also stepped on the mines, thus dragging down the entire white horse blue chips, the index also constituted a depression!
In the evening of April 8, the express giant Shunfeng Holdings’ performance report scared everyone. SF’s quarterly performance forecast shows that the company’s net profit for the first quarter is a loss in the case of high growth in volume pieces to maintain. Net profit is expected to lose 900 million yuan to 1.1 billion yuan from January to March this year, while the same period last year was a profit of 907 million yuan. This is a very scary comparison.
At a time when the holdout stocks are vulnerable, Shunfeng represents not only itself but also the institutional holdout white horse stocks. Its performance is less than expected, but also triggered investors to other white horse stock performance concerns, April 9, the day, Maotai, Ningde, Huichuan Technology and other across the board plunged, that is, there is money to run ahead.
Express this industry competition pattern is not good, the threshold is also low, too many players from all walks of life. There are Ali Jingdong and other e-commerce system, and recently came a new pole rabbit, the industry competition can be described as fierce! Although Shunfeng is the boss of the courier industry, and take the high-end route, but far from the point of monopoly, can only follow along with the price war; by burning money to invest in the future, it is strange not to lose money. Currently Shunfeng Holdings has retreated 40% from the high, the market value has evaporated more than 200 billion, but the market value of 320 billion, compared to Shentong’s 13 billion, Yunda’s 38 billion, 34 billion of Yuan Tong, China Tong’s 120 billion, obviously still not cheap. After all, market share Cai 10% or so, relying on word of mouth alone is difficult to support the valuation of 300 billion!
To be honest, Shunfeng is a good company, after this performance explosion, the chairman Wang Wei personally came out to apologize, saying that the quarter did not operate well, management negligence, similar problems will not occur a second time! This apology has also caused a lot of concern in the country. To put it bluntly, the business model is too important to the company! For example, the liquor industry, are competing for price increases, and are looking forward to Maotai price increases, while the courier industry can only play the price war, and can not see the end. I believe Wang Wei will also have a second apology, the future of such white horse stocks flash crash will also be more and more. This is actually a microcosm of the entire Chinese macro economy.
When it comes to the mines of Shunfeng, in fact, I have recently paid attention to the mines of another APP, although it was at the end of last year, but still can say a good thing, because there is a strong iconic significance.
P2P platform gold wallet that provides investors with internet gold finance solutions (web image)
Another company has been added to the list of China’s P2P mine explosions. But this time, the target of investors’ suspicion and resentment is not the company, but the police and the government. Because many clues and evidence show that it was the government’s intervention that made this company, which could have collapsed without a lightning strike, leave investors with no money back.
Recently, the official website of “Gold Wallet”, which is under the banner of internet gold wealth management solution, was taken offline and the APP data was zeroed out. According to investor inquiries, the Chaoyang branch of the crowd-related economic cases reporting platform tips, gold wallet has been filed.
According to the official website, the gold wallet provides investors with a liquidity solution for physical gold, and users can not only use the gold wallet to complete physical gold investment transactions, but also deposit their stocks of physical gold into the wallet. And the company claims that when you buy gold on its platform, you can not only earn the difference, but also receive interest on a regular basis.
The main body of gold wallet operation is Beijing YingYan Network Technology Co., Ltd, which was established in 2014. 2020 on July 27, the return of overdue problems, the original agreement of T + 3 working days constantly postponed, the scope of overdue continues to expand.
According to land media reports, the police intervened on August 14, 2020, and the executives of Gold Wallet were taken into custody for investigation. So far this P2P platform involving 1.3 billion and more than 10,000 people has started to thunder. The most important thing is that the government has not investigated whether the company has the ability to repay or not the ability to pay, directly all the people in the company pot end, even the investors are still chatting with customer service, customer service was arrested, seems very hasty.
In fact, after the emergence of overdue, gold wallet expressed the sincerity of cashing out. The company explained that the overdue was due to various irresistible reasons such as the emergence of bad debts. “The CEO of the company later recorded a video, promising with everyone that he would make legal calls and guarantee that there would be no problem in paying back the principal within two years.” And just a few days before the arrest, the gold wallet has reached a cooperation intention with the Minmetals Group, this group is willing to take several hundred million to underwrite.
The company’s capital shortfall at the time was four to five hundred million, far enough to underwrite to make up for the lenders’ losses, and even to pay in advance, saying that the agreement was signed after waiting a few more days. This is a very good channel to compensate investors for principal and interest. But a few days before the agreement was signed by the police to end, this road is all blocked. Many investors suspect that the insider involved in this is not the government’s interest.
It is probably meant to say that, compared to other companies that have been mined, the business situation of the gold purse is quite good, not deteriorating to the point of collapse of the mine. The actual fact that there are large groups willing to fund the cooperation, so the cash is no problem. But eventually the government detonated.
This news is just stabbed out, I presume and group loan network, also in the ability to repay the loan when the police forcibly seized, the investors had the possibility to get back a little principal, and ultimately not get back a penny. This is how it is in China, the official is the biggest triad, P2P trillions of investment market, and eventually thousands of companies all thundered, only a few left. Who swallowed these trillions of dollars? The platform or the government? I think only the government they themselves know.
Of course, the seizure of gold wallets may also be related to the trend of seizure of gold investments in China in the past two years.
In the middle of last year, China’s major banks shut down many gold investment products, including futures, spot, and paper gold investments, on the grounds that they were too risky. In fact, in general, whether it is futures or spot, gold is still much less volatile than normal stocks. If you don’t restrict people from speculating in stocks, why should you restrict people from investing in gold?
Last year gold rose rapidly and said there was risk. But this year, gold performance has been sluggish, such a situation, why the restrictions on investment in gold measures are not removed?
Fundamentally, it is still because the Chinese Communist government is now trying to de-dollarize and establish a system of value reserves independent of the dollar, so it is diluting the dollar and is pulling Taiwan gold. Like Russia, China has been desperately buying and hoarding gold in the past few years as an anchor for the internationalization of the yuan and to fight against the dollar. Although China is not yet able to challenge the dollar’s position as the world’s number one currency, the rush to buy gold and sell off the dollar can still play a little role in de-dollarization. Of course, this is also to prevent being kicked out of the dollar trading system, gold can act as an intermediary function of foreign exchange transactions.
The country is rich or the people are rich, hide wealth in the country or hide wealth in the people, in fact, has been a pair of contradictions. Let the private investment trade gold and store gold, then the official hoarding is more difficult, unless the copycat, so the best way is to restrict. Now the global currency over-issuance, gold anti-inflationary properties reflected more and more obvious. The common people know to invest in gold and collect it. These actually form a competitive relationship with the Chinese Communist authorities. So it makes sense that the major banks would restrict investment in futures, spot, and paper gold.
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