Does financial openness mean that we have lost the financial war? Why are Western countries waging financial wars against us? What is their purpose?
In fact, in order to understand the essence of financial warfare, we only need to understand one key concept, and that is:Exchange rate。The exchange rate is the ratio of one currency to another. For example, now 1 dollar can be exchanged for 713 yuan, then the exchange rate is 713。If the exchange rate changes, the economies of both countries will be affected. For example, if the exchange rate rises, then our money can buy more foreign goods, but it is not easy for us to sell our goods to foreigners because they think it is too expensive, and vice versa.
The exchange rate affects not only goods, but also goodsAssets。Assets are things that can make money, such as houses, bonds, and so on. The value of assets should also be calculated in money. For example, if the value of a house is 1 million RMB, then in US dollars, it is 1 million divided by 713, probably 14$020,000. If the exchange rate changes, then the dollar value of the house will also change. For example, if the exchange rate rises to 8, then the dollar value of the house will drop to 1250,000, if the exchange rate drops to 6, then the dollar value of the house will rise to 1670 thousand.
The exchange rate is like a scale that reflects how valuable a country's assets are. If the exchange rate falls a lot all at once, it will be as if the country has suddenly lost weight, and all assets have become as cheap as cabbage. This is an important goal of financial warfare, which is to make the opponent's exchange rate fall to the bottom, make the opponent's assets shrink sharply, and thus weaken the opponent's economic power. That's how they attack.
However, they are not satisfied with this. Their ultimate goal is to use their own currency to buy the core assets of their opponents, such as land, minerals, enterprises, technology, and so on, taking advantage of the discount of their opponents' assets. These assets are the real wealth of a country. This is their harvest plan, and the final blow of the financial war. Only by doing this can they truly control their opponents and truly win the financial war.
*The recent sharp drop has made many investors beat the drum in their hearts, fearing that the good in their hands will be sniped by foreign capital, or even annexed. In fact, there is no need to worry about this, because it is not so easy for foreign capital to get rid of our listed companies.
First of all, we must understand that some of the listed companies in the market are good, some are bad, some are expensive, and some are cheap. The stock price of a good company is naturally not low, and even if it is a bad company, the stock price is not necessarily low. This shows that our good ** is not something that can be underestimated and missed by foreign capital.
Secondly, we must know that our country has strict regulations on foreign participation in the equity of listed companies. For example, a single foreign shareholder can only hold a maximum of 10% of the shares, and all foreign shareholders together can only hold a maximum of 30% of the shares. This means that there are great restrictions on foreign investors who want to list companies in the secondary market. If they want to buy 5% of the shares, they have to raise their cards, and if they want to continue to increase their holdings to 10%, or even 30%, or even want to take a controlling stake, it is even more difficult. It's not that it's impossible, but it's definitely not as simple as it seems.
Foreign financial institutions want to get a piece of the Chinese market, but it is not so easy. Since the end of the last century, China has opened up its financial industry to the outside world, allowing foreign banks, insurance, and other companies to do business in China and provide various financial services. China's economy is developing rapidly, and foreign financial institutions have also seen the huge potential of the Chinese market and have increased investment and expanded their business.
However, over time, foreign financial institutions have found that the Chinese market is not as easy to mix as they think, and there is great pressure on competition. Especially in recent years, China's financial industry has opened up more actively, canceling the shareholding restrictions of foreign financial institutions, relaxing the entry conditions, and giving foreign capital the same treatment as domestic ones, which makes the advantages of foreign financial institutions not obvious, but exposes their weaknesses, such as small scale, weak brand, lack of localization, poor risk management, etc.
At the end of last year, Citibank said it would sell its personal banking wealth management business in Chinese mainland as part of Citi's gradual withdrawal from its personal banking business in Chinese mainland. In addition to Citigroup, BlackRock Capital of the United States, Vanguard Pilot**, and Sovereign Wealth of Norway** are all withdrawing from the Chinese market, and some are even leaving at a loss. Have these foreign financial institutions lost confidence in the Chinese market? I think that these foreign-funded institutions wanted to cut the leeks of Chinese investors because they did not adapt to the Chinese market, but they were so strong that they could only cut the meat and leave.
The relationship between China and the United States has changed dramatically, and it is no longer the intimate cooperation of the past, but more and more like a Cold War adversary. This has significant implications for the financial policies of both countries. However, some people are not aware of this, and they are still stuck in the old way of thinking, believing that financial openness is to open the door to American capital, allowing them to enter and exit the Chinese market at will, and thus control China's economic lifeline. This thinking is wrong and dangerous.
In fact, American capital does not want to deepen the Chinese market, but is gradually retreating. They have seen the future trend:The two superpowers, China and the United States, each have their own financial systems, which are incompatible with each other. They are unwilling to tie their funds and interests to China's high-speed car in such a world. They would rather go back to their camp and dig a hole for China with their allies. That's the truth of their departure.
We need to look at financial openness from a new perspective, rather than using outdated thinking. Financial openness is not about giving up on the defensive, but about demonstrating self-confidence. It is an invitation to global investors to tell them that China's financial market is open, attractive and powerful. It is to welcome global investors to come to the Chinese market and share the dividends of China's economy with the Chinese, rather than letting them steal China's wealth. It is for global investors to see that the future world is not single, but diverse. It is to let global investors know that if they don't come to the Chinese market, they will miss a once-in-a-lifetime opportunity, and they will be left behind by the tide of the times.