Kunpeng Project
Is foreign capital really withdrawing from the Chinese market? Learn the truth about the retreat of foreign capital
Are we going to lose this financial war? Why is the West waging an economic war with us? What exactly are they trying to do?
In fact, to understand the essence of this financial war, we only need to know an important concept, which is money**. The exchange rate is the ratio between two different currencies. For example, 1 yuan is exchanged for 713 yuan, the exchange ratio is 7. 13。If it is converted into currency, both countries will suffer. For example, after the appreciation of the RMB, we can use this money to buy more foreign goods, but our goods are difficult to sell abroad, they will be too high, and vice versa.
Foreign exchange rates have an effect not only on goods, but also on property. The so-called assets are actually those that can make people profitable, such as real estate, bonds, and so on. Their property is also to be measured in money. For example, if the ** of a house is 1 million, in US dollars, it is equal to 1 million minus 713 equals $142,000. If the currency exchange rate changes, so does the value of the property in USD**. For example, if the exchange rate is 8, the value of the home will drop to 125,000, and if the exchange rate is 6, the value of the property will increase to 167,000.
The foreign exchange rate is a measure of the value of a country's property. If the currency exchange rate falls sharply, the whole country seems to shrink a lot overnight, and all kinds of property are as cheap as cabbage. The so-called currency depreciation is to depreciate the other party's currency, reduce the other party's wealth, and reduce the other party's economic strength. This is the other party's means of attack.
That doesn't satisfy them, though. Their ultimate goal is to pocket the other party's land, minerals, enterprises, and technologies when the other party's assets depreciate. That's the essence of a country. This is their harvest plan, and it is also a decisive blow they have carried out in this economic war. In this way, they can achieve a real victory in the fiscal war.
The stock price in the past few days has caused panic among many people, who are worried that the good shares in their hands will be acquired by foreign companies. In fact, this concern is unwarranted, and our company is very difficult to control by foreign investors.
First of all, we must understand that in the current **, there are good ones, there are bad ones, there are expensive ones, and there are cheap ones. A good company must be high, and a bad company may not be cheap. In other words, a good company cannot be easily undervalued, nor can it be picked up by foreign investors.
Second, we must be clear that China has very strict restrictions on foreign investors to take shares, and foreign investors cannot be allowed to take shares. For example, a single foreign shareholding may not exceed 10 per cent, and a foreign shareholding may not exceed 30 per cent. In other words, foreign investors will be subject to a lot of constraints if they want to buy through the secondary market. They want to buy 5% of the shares, unless they hold up a sign, or increase by 10 percent, or 30 percent, before they can become the majority shareholder. It's not impossible, it's just that it's certainly not that easy.
Foreign financial companies also want to enter China's piece of the pie, but it is not simple. Since the end of the last century, China has been opening up its financial sector, allowing foreign banks, insurance companies and ** companies to enter China to conduct business and carry out various financial operations for them. With the rapid growth of China, foreign banks began to invest and expand in China.
But as time passed, they realized that China was not as easy as they thought, and they faced huge competition. Especially in recent years, China has increased the opening of the financial market, liberalized the equity control of foreign financial companies, lowered the entry threshold, and made them treat them the same as domestic enterprises, which makes the competitive advantages of foreign financial companies no longer so prominent, and even has shortcomings such as small scale, poor branding, localization, and inadequate risk management.
Citibank said late last year that it would ** its wealth management products in Chinese mainland as part of Citi's gradual withdrawal from Chinese mainland's private financial markets. In addition to Citigroup, BlackRock, Pioneer Pilot, Norway and other institutions in the United States have also withdrawn from China, and some have even lost money and left. Have foreign financial firms lost trust in China's economy? I think it's because they're not familiar with China, they originally wanted to make money on China, but now they're trapped.
The relationship between China and the United States has undergone tremendous changes, from close cooperation in the past to more like an enemy of the "Cold War." This will have a huge impact on the fiscal policy of China and the United States. However, some people do not have this consciousness and still hold on to the old idea, thinking that American funds can freely enter the Chinese market and then control China's economy. That is both incorrect and dangerous.
In fact, American money has little interest in the depth of China, and they are gradually withdrawing. They all see that China and the United States, two great powers, are independently building financial systems that are incompatible with each other in different markets. In this case, they don't want to put their capital and profits on the big train of rapid development in China. They might as well go back and dig a hole in China with their allies. That's why they're gone.
We need to recognize and understand financial openness with fresh eyes and abandon outdated notions. Fiscal openness does not mean abandoning defensiveness, but showing confidence. It is also an invitation to international investors to know that China's economy is an open, attractive and powerful country. This is an open platform, and we hope that investors from all over the world can enter China and share the fruits of China's economic development with the Chinese people, rather than allowing them to plunder China's property. It's about showing international investors a diversified future, not a monopoly. This is to make international investors understand that if they don't come to China, they will miss out on an opportunity, and they will be left behind by the torrent of time.