Xu Yiding: The Stock Market Mission Under The "China Dream"

At present, we are in the critical period of "the rise of a great power to a real power" and the realization of the great historical change of "China dream".

Against this background, A shares are expected to usher in a new round of historic opportunities in the next two or three years.

First, "resolving potential financial risks and winning time for reform" is the current stock market mission.

At present, China's economy is in the turning point of the pformation from the old economy to the new economic pformation of "consumption + technology innovation" driven by the "investment + export" mode in the first ten years.

In the pformation, the potential financial system risk brought by the extreme development of the original economic mode is becoming the primary challenge for the success of the new economic pformation.

Resolving the potential financial risks and winning time for deepening reform has become an urgent problem in the current stock market.

In my view, including the high leverage ratio in the business sector and the government's huge debts, all need economic pformation, and economic pformation takes time and needs more capital.

The key is the need for the stock market. After the stock market rises, the wealth effect is slowly generated, the direct financing is expanded, the above problems are solved, the time for the reform is won, the time for pformation is won, and the economic pformation is successful.

Two, the dividend of the rule of law was released in the fourth Plenary Session of the 18th CPC Central Committee to help China's economic success upgrade and lay a long-term foundation for cattle.

In the fourth Plenary Session of the 18th CPC Central Committee, we passed the decision of the CPC Central Committee on comprehensively advancing several major issues of governing the country according to law.

To some extent, the decision will comprehensively build up the framework of China's modern judicial reform.

It is an important prerequisite for the success of economic pformation.

From the international experience, whether the emerging market countries can succeed in economic pformation and whether they can avoid Latin Americanization, whether a legal, fair and market-oriented system can be built will be the key.

This is also the logic of the Fourth Plenary Session of the market and the rule of law.

With the opening of the medium and long-term reform framework under the rule of law, we have reason to believe that China's economy has successfully pformed and upgraded, laying the economic foundation for the long-term A bull market.

Looking forward to the future, the domestic economy can no longer sustain the growth rate of over 8%, and the big probability will even drop again at the current level of 7.3%.

However, the downward trend of the economy does not mean that the stock market will not go well; on the contrary, we are optimistic about the future stock market development.

Standing at the present, A shares will soon usher in a large number of incremental capital supply, which is expected to promote a historic investment opportunity.

Huge real estate investment funds will gradually withdraw from other investment targets, and the stock market is obviously the most likely choice.

At the same time, A shares will also receive more institutional funding.

It is estimated that China's basic long-term pension fund, surplus fund, social security fund, public maintenance fund, enterprise annuity and insurance fund can enter long-term funds of up to 10 trillion and 600 billion yuan.

With the acceleration of the internationalization of RMB, the domestic stock market will become more internationalized and more overseas funds will enter.

In the medium and long term trend, various factors are promoting the concentration of social investment funds to the stock market, and A shares have already had the capital condition of taking cattle.

Under the overall national strategy, the strategic position of the stock market will continue to uplift.

Whether it is actively promoting its own deepening reform, such as the perfection of securities law, the introduction of registration system, the modification of delisting system, or pushing it into the international market, such as the introduction of Shanghai and Hong Kong links, the expansion of QFII and RQFII quota, etc., we can see that the policy is fully guiding the long-term healthy development of the stock market.

Coupled with the active influx of social capital, the stock market already has three essential factors: "strategic need + policy bonus + capital push".

As a result, the A share market in the next two or three years should be firmly valued. Investors are expected to usher in a historic opportunity for a new round of stock investment.

Five, firmly optimistic about the blue chips of state-owned enterprises represented by aerospace industry.

On the whole, the Shanghai Composite Index has been at the bottom of the large scale in recent years. In July this year, the A share market has produced an important inflection point. The fourth cycle of China's stock market has already opened.

Once the Shanghai Composite Index breaks through 2480 points, the upward space is completely opened, and the first target points to 3000 points.

Under the strategy of "China dream", the stock market mission will include the following aspects: enhancing the vitality, influence and control of state-owned enterprises in the economic field -- supporting the reform of state-owned enterprises; supporting the core of national security in military affairs -- the leap forward development of military industry and information security; and supporting the new economic power in technological aspect -- the growth of strategic emerging industries.

As a result, the blue chips, aerospace industry, information security, health care, and new energy vehicles, mobile Internet and high-end equipment will be the biggest beneficiaries of the stock market in the future.