My fintech empire.

Chapter 1227 [Breaking the Law of Seven Losses, Two Draws, and One Win]

According to the statistical yearbook data disclosed by the SGX, as of December 2016, 12, the total market capitalization of the SGX had reached 30 trillion, and the annual closing price of the SGX 25.92 Index was locked in at 50 points, with a cumulative increase of +1983.95% for the whole year.

In addition, the report shows that at the end of 2016, the market value of shares held by natural investors (i.e. small retail and general shareholders) in the Singapore Exchange was 2.81 trillion yuan, the market value of shares held by professional institutions (i.e. public and private equity funds) was 7.29 trillion yuan, and the market value of shares held by general legal persons was 15.5 trillion yuan.

In addition, the scale of natural investment in SGX exceeded 2016 million at the end of 200, which is not even a fraction of the 1.5 million investors in the entire A-share market.

The actual situation is that the number of 200 million is not the limit of the SGX, but the limit of investors in the A-share market.

This is because there are basically only so many investors in the A-share market who meet the entry requirements of the SGX, and there are only so many investor accounts in the entire A-share market with assets of over one million.

These 200 million investment accounts are all high-net-worth accounts, the kind that can produce millions of cash flows at any time.

Among the 1.5 million shareholders in the A-share market, only more than 200 million can meet the threshold of the SGX. Now they have all come through. This shows that it is not that the SGX is not attractive, but that there are only so many retail investors who meet the entry threshold and they have basically come to play in this market.

In addition, another data in the yearbook report has attracted the most attention from the market and has sparked heated discussions.

The report further pointed out that more than 78% of natural investors participating in the SGX market are in a profitable state. It also found that more than 50% of the holders of the five major SGX 75 ETF funds are in a profitable state. The median return of SGX investors reached RMB 22.87.

This median earnings data is truly amazing.

Compared with the average, the median is the most valuable indicator and the one that best reflects objective facts. The average seems unreliable.

After all, if you average my wealth with God K's, my income can easily surpass super-rich people like Gates and Buffett.

The material report disclosed by the SGX is also very credible. The SGX 50 Index is close to doubling its annual line. If it were not for the impact of the financial war in the foreign exchange market in December, the annual line's physical K-line would have definitely doubled.

Moreover, in the past year, many investors who bought the Xinzheng 50 ETF have made a lot of money by posting their earnings online and on WeChat Moments.

More than 70% of the participants in this market make money, and everyone believes that the data of the SGX is not exaggerated.

There is no doubt that this is unique in the history of A-share market over the past 20 years and is beyond the cognition of many people. It is said that the stock market always follows the law of seven losses, two draws and one profit, but the SGX has broken this law and created the myth that more than 70% of investors have made money.

Yes, in the eyes of many people, this is an incredible mythical achievement.

This result is unexpected, but also reasonable.

Because the SGX has largely eliminated companies that go public for the purpose of raising money, and has largely eliminated fraudulent listings and the practice of buying companies in bulk for cash and then packing up to make a profit.

The SGX has been storing more water than it has been pumping out, driving the stock market to continue to rise. Last year, IPOs raised around 3400 billion yuan, which was the water pumped out from the market, while the funds that came in were 4.5 times as much, exceeding 1.5 trillion yuan. The net inflow of funds in the SGX 50 Index reached 1.08 trillion yuan for the whole year.

Another key factor that cannot be ignored is that the profits earned overseas by Qunxing Capital, founded by Fang Hong, were reflected in the SGX and the SGX 50 Index through the listing of Qunxing companies.

Directly or indirectly, all participants in the SGX market have enjoyed the premium brought by Qunxing Capital's global profits, which is also the key factor for more than 70% of SGX investors to make profits.

What does this mean? To put it in a more down-to-earth way, the huge amount of wealth earned by Qunxing Capital overseas was shared with the Chinese people through the SGX market. Otherwise, it would definitely not be able to support the achievement of more than 70% of investors making profits.

As reflected by the rise in stock prices, investors have realized a wealth premium by holding stock assets. Qunxing Capital did not directly distribute the profits earned overseas to participating shareholders through dividends, but instead converted them into strong credit support, bringing strong confidence support to the market.

This support is directly reflected in the market as stock prices and stock indexes remain stable, and investors have confidence in holding stock assets.

Although Qunxing Capital did not actually pay any money, everyone knows that it has the ability to do so and will definitely take action when necessary. The underlying logic behind this is that Qunxing Capital has the ability to do so because it has made a lot of money overseas.

The downward adjustment of the Xinzheng 50 Index in the past few days is because most investors in this market have made a lot of money. Now that the Chinese New Year is approaching, it is normal to sell some stocks and cash in some of the money for consumption.

Facts also prove another point: mass consumption does not need to be deliberately stimulated, especially young people who have a strong desire to consume. As long as they have money, you never know where they will be dancing in the next nightclub. The key is to have money to spend. If you only talk about stimulation but don’t have a few coins in your pocket, what kind of stimulation is that?

There is no doubt that the most effective way to stimulate consumption is to increase wages and income.

Look, small retail investors participating in the SGX market have earned considerable property income this year. In the past year, some of them earned 20,000 to 30,000 yuan, some 50,000 to 70,000 yuan, or even more than 100,000 yuan. Now it is the Chinese New Year, and they are cashing out to have a good year, or buying a car, replacing furniture to improve their quality of life, etc.

The most important thing is still confidence. Investors and shareholders participating in the SGX market are optimistic about the future, have confidence in the market, and have new expectations for their future income, which can further inspire them to dare to consume.

Indicators such as income expectations and confidence can directly affect a person's consumption behavior, and they will be used to determine whether to spend more or save more in the future.

……

The next day, Monday, January 1, the SSE 16 Index fell to 50 points and then stopped falling. At this point, this round of adjustment of -1933.21% in total was declared over, and the adjustment range would not be expanded any further.

Because shortly after today's closing, a blockbuster news came out, that is, the SGX's trillion stabilization fund is coming.

In addition, a piece of rumor has been circulating that the SGX's trillion-yuan stabilization fund will conduct market operations in February and plans to invest 1150 billion yuan of off-market funds into the market.

This is almost equivalent to telling everyone clearly that the adjustment is over and the market will start to rise again. If you are still bearish, you should sell at the floor price. Don't miss the opportunity and get hurt.

As soon as the news came out, at the opening of the next day, Tuesday, January 1, the Xinzheng 17 Index opened directly at 50 points, with a sharp increase of +1967.02%, creating a high opening gap. After the opening, it went straight out of the barefoot shadow without any retracement, opening high and moving high all the way.

The SGX market saw a general rise in both volume and price.

As of 15:50 closing, the Xinzheng 2000 Index regained the 3.54-point integer mark with a long, bare-headed and bare-footed positive line. The index rose by +2004.91% after the market to 3077 points, with a total turnover of billion for the day.

……

(End of this chapter)