Sitting at home, wealth comes from the sky. This National Day, Chinese assets have truly raised their heads high. Foreign capital can't get their hands on A-shares, so they directly bought up Hong Kong stocks. Chinese securities firms have seen a doubling surge. Is the bull market really here? And how long can it last? How can ordinary people seize this opportunity?

To answer this question, we must first understand how this round of the Chinese asset boom started. There are various opinions from internet influencers, but few hit the nail on the head. Some say it's because the country introduced a package of economic stimulus policies on September 24th. Similar policies have been introduced more than once, and interest rate cuts are not the first time either. A-shares have always been indifferent in the past. How could this time be an exception?

Others say it's because the Middle East is preparing for war, and overseas funds are looking for a safe haven, all rushing to China. This argument sounds somewhat reasonable, but the Middle East has not been in chaos for the first time. Before Iran fired rockets at Israel, funds from Saudi Arabia and the United Arab Emirates had already announced heavy investments in China. At that time, there was no such big wave. What really triggered this wave of Chinese asset boom? It was the United States admitting defeat in this round of Sino-American financial warfare, with the symbolic event being the Federal Reserve's interest rate cut.

Advertisement

In recent years, everyone has a clear feeling that income is not increasing, housing prices are falling, and the stock market is even worse. Making money is getting harder and harder. The reasons for these phenomena include economic cycles, but the most fundamental is the financial war launched by the United States against us.

Since the first shot of the Russia-Ukraine war in 2022, the United States' financial war has already begun. War and dollar interest rate hikes are almost one after another. On the one hand, the United States has made the world chaotic, turning itself into a global capital haven, with a large amount of capital flowing into the United States. On the other hand, interest rate hikes further drain the liquidity of the world. The decline of A-shares and the domestic real estate market almost started at that time.

The United States' plan was to use interest rate hikes to burst our real estate market, stock market, and foreign exchange market, and then use global trade blockades to make Chinese export products unsellable, causing overcapacity. In this way, China's $3 trillion in foreign exchange reserves will one day be exhausted. When that day comes, the United States only needs to move its fingers slightly to control our exchange rate market, just like it did with Thailand during the Asian financial crisis, forcing us to completely abolish financial controls. At that time, the United States could use China's medicine to cure its own poison. What's $35 trillion in U.S. debt? $50 trillion is not a problem. After all, China has accumulated a huge amount of wealth after decades of reform and opening up, and the United States has been eyeing this piece of fat for a long time, drooling.

However, the United States has calculated everything, but still missed two things: First, China has become a real global factory, exporting one-third of the world's industrial products. The United States has increased tariffs and even let its小弟模仿, but good products are not worried about selling. iPhones produced in India are cheaper in labor costs, but they come with E. coli. Do you dare to buy a phone that also comes with a laxative? Vietnamese-produced small commodities are cheap, but their quality is unknown, and only those who use them know. Mexicans are the smartest, simply importing goods from China, labeling them in their own country, and then selling them to Americans. Is it Mexican goods or Chinese goods? Americans can only guess. With an extra middleman, American consumers have become the victims. The more the United States suppresses, the more China's export data increases, and the sanctions are in vain.

What the United States did not expect is that China's Belt and Road Initiative has begun to take effect. We have cooperated with Russia to develop the Far East, built infrastructure in Southeast Asia, and even started digging the artificial canal in Cambodia. We are also investing in factories and infrastructure in Africa, making the infrastructure mania dance globally, which has almost made Biden's lungs explode.

Under such circumstances, the United States' financial war naturally fails. Although it is a financial war, there is no need to spend a single soldier on the surface, but it also has costs. The cost of the United States is the high debt expenditure and the decline of domestic banks. Have you heard the news that a large number of small and medium-sized banks in the United States have gone bankrupt? Interest rate hikes have led to high dollar interest rates. $35 trillion in U.S. debt is not a joke. With such high interest rates, the United States has to pay a trillion in interest a year. What is this concept? It can support more than 700 military bases of the United States around the world.The costs are too high, and the effects are limited. The United States has shot itself in the foot and can only bow its head in defeat, announcing a rate cut. This time, it's finally not pretending anymore; a single rate cut is 50 basis points, which is twice as high as what various institutions predicted. Recently, Federal Reserve Chairman Powell made a public appearance, stating that there will be two more rate cuts this year. With this, foreign capital has completely reacted. In the financial war between China and the United States, the United States has admitted defeat.

A series of phenomena have followed. As soon as the United States announced a rate cut, we immediately proposed a package of economic stimulus plans, as if they were prepared in advance. When the United States cut rates by 50 basis points, we reduced the existing mortgage loan interest rates by the same margin, also 50 basis points. Not only did we lower the interest rates, but we also provided targeted support for the capital market. Banks provided loans to major shareholders of listed companies, sending a signal to foreign capital that Chinese assets are about to be revalued, and we have already taken action.

Following that was an unprecedented wave of a big market trend. A-shares have risen comfortably. In just eight trading days, some people have earned a year's salary, and some have made up for the losses of several years in one go. Foreign capital, looking at this bull market, must be very anxious. It's not that fast from project initiation to research reports and then to the establishment of funds. The A-share market was closed for the National Day holiday, which led to the recent surge in the Hong Kong stock market. If they can't get A-share chips, they can always go to the Hong Kong stock market, right?

The market has already risen, and it's not just for a day or two. It's a reversal, not a rebound. How long can it last? It still depends on whether the United States has further measures. The U.S. election is coming up soon, and the domestic situation is chaotic. But once the new leader takes office, there might be new policies against us. We can only take it one step at a time.