First, the RMB exchange rate has risen sharply!The chairman of the Federal Reserve said that the US dollar interest rate cut is already under consideration, and as soon as the news came out, the US dollar index plummeted, and the people's exchange rate soared by nearly 1% in an instant, which will have a profound impact on the global economy and financial markets, including China**.
The Fed's rate cut could have a ripple effect, including affecting the monetary policy of other countries. For example, the market expects the Bank of Canada to follow the Fed's lead and join in cutting interest rates this year. The U.S. interest rate cut is a boon for China** and the economy. The interest rate cut will narrow the interest rate gap between the RMB and the US dollar, attracting more hot money to flow into the Chinese market, thereby promoting the sharp rise in the United States, which will also have a boosting effect on the world, and China is no exception.
Second, recently, Beijing's A-shares have risen in full swing, and many ** have doubled or even doubled or tripled in the short term. So, what about the common regulatory letters in Shanghai and Shenzhen, it is puzzling, maybe Beijing A-shares are pro-birth.
Correspondingly, the Shanghai and Shenzhen ** hit new lows, and hovered below 3,000 points for many days. The only bit of liquidity was attracted to the Beijing Stock Exchange. There are many shortcomings such as the lending of restricted shares, and there is no change in sincerity. As a result, over-the-counter funds are looking forward to entering the market.
Third, the Bank of Japan is in a dilemma, whether to withdraw from easing or not, is a question!
Previously, the Bank of Japan hinted at abandoning yield curve control, but regretted it halfway. And now, the Bank of Japan has finally officially announced that it will exit the policy of negative interest rates next year. Negative interest rates and easing policies that have lasted for more than a decade are coming to an end.
In fact, Japan's motivation to withdraw from easing is not strong. First, Europe and the United States are now turning. The market has expected the Fed to end its rate hike cycle and cut rates 100% next year. The ECB is also expected to cut interest rates by at least 50 basis points next year.
Fourth, foreign capital shorting will not return!The sharp drop in A-shares was mainly affected by the sharp outflow of foreign capital, with a net outflow of more than 10 billion yuan in northbound funds, which could make nearly 6 billion yuan outflow in Shanghai Stock Connect and nearly 4 billion yuan in Shenzhen Stock Connect in one day. This shows that foreign investors' confidence in A-shares has been shaken, which may have been affected by the international situation or the problems of A-shares themselves. The outflow of foreign capital does not mean that they have given up A-shares, after all, they still hold a large number of A-shares**, and their outflow has also created space for subsequent repatriation. If it can appear, foreign capital is likely to accelerate the return of foreign capital, bringing positive stimulus to the market.