Recently, the performance of U.S. stocks has been quite eye-catching, with six consecutive trading days**, and the all-time high has been constantly refreshed. This makes people feel emotional, and envy, jealousy and hatred arise spontaneously. It seems that American investors do not need to bother to operate, and they can earn wealth by lying down, which is really enviable. The A** field is three consecutive trading days**, the trend is sluggish, the wealth of shareholders is decreasing, and helplessness arises spontaneously. So what's the problem?Let's break it down.
The reason why U.S. stocks have been able to hit new highs in a row is partly because the United States** occupies an important position in the U.S. economy. Any session of the United States attaches great importance to maintaining stability, listening to the voice of Wall Street, and keeping the trend good. Whatever policy measures are taken, the impact on ** will be taken into account. The essence of A-shares is a tool to serve the real economy, and its purpose is to provide financing facilities to the real economy and major shareholders. Therefore, the essential difference between China and the United States has brought about a fundamental difference in the rules and systems. This is also the reason why when the A-share market was in a downturn, shareholders called for the IPO to be stopped, but the actual situation continued to promote the IPO.
On the other hand, the growth of the U.S. economy is strong, while the economic pressure of the A** field is greater. According to publicly available data, the GDP growth rate in the United States in the third quarter reached a staggering 52%, which comes after the Fed has raised interest rates 11 times in a row, bringing the risk-free rate to 525% of the background realized. This shows that the resilience of the U.S. economy is very strong. Driven by stimulus measures such as active fiscal policies, interest rate cuts, RRR cuts, and large-scale water releases, the GDP growth rate of A-shares in the third quarter was only 49%。By comparing the actual economic conditions of the two countries, it is clear that the growth of the US economy is still very strong. Especially with the Fed's interest rate cut next year, the probability of a soft landing for the U.S. economy is quite high. The A** market is facing problems such as real estate and local debt, which are difficult to solve in the short term. ** is often a barometer of the economy, which also means that A-shares can only continue to move lower, while U.S. stocks continue to move higher.
In addition, the deepening of global geopolitical tensions has also had an impact on the flow of funds. At present, the Russia-Ukraine war is still ongoing, and the Palestinian-Israeli conflict is also at a critical moment. Although Sino-US relations have eased recently, the nature of the competition between the two sides is difficult to change. The United States is convinced that competition between China and the United States is inevitable, which has led to the actions of both countries to be mainly fighting but not breaking. This will inevitably affect the flow of funds. We have also seen that in the past year, many foreign investors have been continuously withdrawing from the A** market, such as BlackRock, the world's largest asset management company, Norwegian sovereign** and Vanguard Capital. These three essential differences make it difficult for the A** field to get up.
All in all, the ability of U.S. stocks to hit new highs in a row is related to its position in the U.S. economy and the resilience of the U.S. economy. The A** field is affected by the essential differences between China and the United States and the high economic pressure. In addition, the deepening of international geopolitical tensions has adversely affected the flow of funds. These reasons have combined to lead to the downturn in A-shares. However, we still need to continue to monitor market changes and look for suitable investment opportunities.
As a self-editor and writing assistant, I deeply feel that the downturn in the A** market has caused great distress to investors. In the face of the continuous new highs of U.S. stocks, we can't help but ask, why can't our A** market be like U.S. stocks?It's heart-wrenching. However, I believe that the root cause of the problem is not just in the A-share market, but in China's economic and financial system.
First of all, as an important part of the country's economy, the importance of maintaining stability in the U.S. stock market has been highly valued. The U.S. and regulators have taken a series of measures to maintain stability. From a policy perspective, they are more attentive to the voice of Wall Street, and fully consider the impact of ** when formulating policies. Correspondingly, China pays more attention to the development of the real economy, positioning it as a tool to serve the real economy, and the main purpose is to meet financing needs. This makes China's first-class rules and regulations more inclined to serve the needs of large shareholders and financing needs, rather than maximizing the interests of shareholders. The difference in this system determines the difference between our A**field and the American **field.
Second, the pressure on China's economy is closely related to the downturn in A-shares. Compared with the strong growth of the U.S. economy, China's economy is facing multiple pressures such as structural adjustment, environmental governance, and deleveraging. Although it promotes economic growth through various policy measures and stimulus measures such as interest rate cuts and tax cuts, it is still difficult to change the predicament of China's economic development in the short term. This makes the A** market lack strong economic support, and the confidence of shareholders has been shaken to a certain extent.
In addition, the instability of the international geopolitical situation has also adversely affected the flow of funds. As the Russia-Ukraine war continues and the Palestinian-Israeli conflict intensifies, global investors are increasingly concerned about risks. In particular, the competition between China and the United States has made foreign investors more cautious about the Chinese market. This further exacerbated the slump in the A** field.
To sum up, there are many reasons behind the fact that the A** market has been in the market for three consecutive days**, while the U.S. stock market has been in the market for six consecutive days**. The essential differences between China and the United States, the difference in economic growth and the instability of the international geopolitical situation are all reasons for the downturn in A-shares. As investors, we need to be aware of these issues and study the market deeply to find investment opportunities. At the same time, only by strengthening financial supervision, reforming the system, encouraging innovation, improving market transparency, and providing a better investment environment for shareholders can we achieve the long-term healthy development of the A** market.