My fintech empire.

Chapter 1426 [Market Value Competition, A-Mei, do you want to join? ]

Global capital poured into the SGX market in large quantities. When Amelika saw these data, he was furious. He gritted his teeth and screamed in his heart: That was money that should have flowed into the Singapore capital market!
Since the beginning of the year, the Beijing-Mei stock market has also been rising. The Dow Jones Index has rebounded from more than 21000 points at the end of last year to more than 25800 points now, once again reaching near its historical high. However, it fell by -2018% in the whole year of 5.63, while the SGX-ST 50 Index soared by +46% during the same period. The return on investment in the Beijing-Mei capital market was completely surpassed by the SGX.

As of now in 2019, the Dow Jones Index has risen by +10.93%, which is indeed a good increase and very impressive.

However, the New Securities 50 Index is more powerful, with a cumulative increase of +12.29% during the same period. This is even after the correction on Friday. If calculated based on the current historical high, the cumulative increase has reached +14.30%. And this is based on the cumulative increase of +46% in the whole of last year.

It is the nature of capital to pursue profits. This market has a higher return on investment than your own market. Global capital is of course willing to come to Dongda to play, and some of Laomei’s own capital has actually secretly gone to the Singapore Exchange to play.

The price keeps rising like this, and I can’t stand watching others making money. I can’t hold back any longer.

The only one who can hold on is Shua Capital. They actually want to come very much, but they can't, they don't dare to, and they can't come. If they come less, it's meaningless. If they come more, the New Securities 50 Index will definitely not rise. It is because you, Shua, didn't come that it has been rising sharply.

Moreover, if Squid Capital comes in large numbers, magnesium stocks will be finished. Coming would be tantamount to admitting defeat, so Squid can only watch.

If we want to curb global capital from entering the SGX market, unless the Beijing Magnesium Capital Market can outperform the SGX market, and unless Squid Capital can push magnesium stocks up more sharply than the SGX 50 Index.

But it cannot be pulled up because the bubble is too big. Now the market value of magnesium stocks is almost twice the GDP of magnesium mixed with water.

If Youang Capital plays this way because it thinks it is not fast enough, Fang Hong would wake up laughing at night if he knew about it. If Youang Capital explodes in magnesium stocks, Fang Hong will immediately push up the New Securities 50 Index. They are playing a market value competition together and can directly explode the other party.

Even if we take into account the two neighboring cities that are lagging behind, taking the closing data of 2018 as an example, the total market value of the A-share market is only about 81% of the national GDP. If the Singapore Exchange is taken out for calculation alone, it only accounts for about 46.2% of the national GDP. In other words, there is a lot of room for growth.

If Zai Ang Capital dares to play a market capitalization competition, Fang Hong can let the Xinzheng 50 Index double its current basis in 2019. Can Zai Ang Capital try to double the Dow Jones Index to or points based on its current basis?

Fang Hong has great confidence that the SGX 50 Index can be doubled. Even if it is doubled, the total market value of the entire SGX market will only be 127 trillion yuan, which still has not exceeded the national GDP in 2019. Although the beginning of this year is not long, the expectation that the national GDP will exceed 130 trillion yuan this year is a foregone conclusion.

On the other hand, if the magnesium stock market doubles, the total market value will soar to more than 70 trillion US dollars. Even if Squid Capital has ten thousand guts, it will not dare to do so. It is true that the magnesium stock market must rise, but it is impossible for it to rise like this.

The SGX market has seen such a big rise. In addition to the strong support of Dongda's own economic fundamentals and the value support of those listed companies on the SGX, Fang Hong is also playing a market value competition game with the Beijing Mei capital market, but Lao Mei dare not follow.

As long as the return on investment of the SGX market can lead the magnesium stock market by a large margin and suppress it, magnesium will not be able to stop the general trend of global capital flowing into the SGX market, because capital is profit-seeking by nature and cannot be changed by personal will.

However, in this market value competition game, Lao Mei cannot afford to follow it even if he wants to. The space height of the New Stock Exchange 50 Index is there, and the space height of Lao Mei's field is already very limited. Magnesium stocks have been rising since the financial crisis in and quantitative easing has been launched until now, and too much of the space height has been consumed.

Between the two, the market of Macau is like an old man in his seventies or eighties, who is about to die; while the market of SGX is like a teenager who has just entered the teenage stage and is full of vitality.

It is said that no matter how high your kung fu skills are, you will still be defeated by a young and strong person. That's the truth.

It's already hard enough for the prison to keep its business from collapsing. How can you, an old man in his seventies, compete with young people? Young people fall down and get up on the spot without any problem. You can continue to run. If you, an old man in your seventies, fall down, you will be sent to the ICU at best, or die on the spot.

Now Lao Mei can only watch the global capital continue to rise and flow into the SGX market. There is really nothing it can do. Moreover, the market capitalization competition game does not mean that Lao Mei will not play it if he does not follow Fang Hong. Anyway, the competition game is on. It is up to Lao Mei to follow or not. If you don't follow, you will have to accept that your investment return rate will always be suppressed by the SGX market.

……

After the weekend, it was Monday, February 2th.

Today, the three major stock indices of the A-share market jumped higher one after another, easily reversing last Friday's negative line in one fell swoop. From the market point of view, all concepts of the three major trading markets were in the green, theme stocks performed strongly, pork, chips, flexible screens and other sectors rose one after another, the market's bullish atmosphere was unusually active, and individual stocks showed a general upward trend.

The ChiNext Index has been very strong since the Spring Festival holiday, rising sharply and entering the so-called technical bull market in just a few days. The Shenzhen Component Index has also achieved a cumulative increase of +20% since it rebounded from its lowest point, also entering a technical bull market.

Around 10:45 am, major market software pushed news updates:
【The increase of the Xinzheng 50 Index expanded to +2.05%, and the index reached 4883 points, setting a new record high. Bionic Power Company closed the board limit, recording seven consecutive boards, and the market value reached a record high of 7116.94 billion. 】

The most dazzling of the three major stock indices of the A-share market at present is the Xinzheng 50 Index. Stimulated by the epic positive news over the weekend, it easily reversed last Friday's negative line and reached a new historical high.

As for individual stocks, the one that topped the popularity list was Bionic Power Company, which formed a "T" shape last Friday and opened higher today at +3.37%. After falling back 2 points, it was quickly pulled up and broke out of the seven-day winning streak.

This stock has been included in the NSCE 50 Index for several months and has excluded another stock. The current surge in market size has also made a significant contribution to the NSCE 50 Index.

Various investment institutions in the capital market have generally reassessed the value of Bionic Power Company. It was previously positioned as a pure military stock and after it became profitable, it was given a price-to-earnings ratio of about 35 times. Now it has been raised to a price-to-earnings ratio range of 50 to 55 times.

Because Bionic Dynamics Company is taking the route of "dual-use integration of military and civilian use", and in the commercial market, the cute pet robot dog has a very good start.

In addition, if we look at a long cycle of more than five years, Bionic Dynamics also provides enterprise-level products in the space field. To put it bluntly, in the future development of the moon, building a lunar research station, etc., the company's products also have a huge market demand.

Institutions generally think that the P/E ratio of 55 times given to Bionic Power is very reasonable. The market value corresponding to this P/E ratio based on the net profit in 2018 is 9790 billion yuan. There is nothing wrong with rounding it off to 1 trillion yuan, because everyone has not forgotten that Bionic Power also has the label of "Quartz", and it is one of the core subsidiaries of Quartz.

Investors participating in the SGX market know that as long as a listed company is labeled as a "galaxy", it can enjoy a certain additional premium.

……