Gu Mingde: What Is The Real Meaning Of Shanghai And Hong Kong?

Shanghai and Hong Kong have been coming down for a week, and the two exchanges and two investors are all in the dark.

It was hoped that the expectations of the other investors would rise sharply in the near future.

The real significance of Shanghai and Hong Kong links will not only have a long-term impact on the share price convergence of the two places, but more importantly, China's capital account has taken a big step in opening to the outside world.

The head of the HKEx said well that China's QFII and QDII only opened a window to the outside world, and now Shanghai and Hong Kong have opened a door.

In order to open this door, the state and management departments have been planning for many years.

This is China's special national conditions. The scale of China's foreign exchange reserves is already the sum of the top seven developed countries.

In emerging countries, India, Russia, Brazil and other countries, foreign exchange reserves and economic growth are not as stable as China.

But these countries are more freely convertible than China.

China's economy needs to be marketization, and it needs RMB internationalization. It needs full liberalization of capital account. The amount of foreign currency exchanged by residents within the US dollar (50 thousand) and restrictions on foreign investment should be relaxed every year.

However, every step in China is very difficult.

Because management and residents have a kind of inexplicable panic or worry. Once China's capital account gates are opened, wealthy people in China, whether legal or illegal, will escape from China. At the same time, foreign hedge funds will rush into China, hype up stocks and real estate, and the achievements of China's reform and opening up in the past thirty years have been swept away.

This worrying mood makes China

Opening to the outside world and the reform process of the market economy are far behind the financial strength and risks that China already possesses.

In June this year, China's Shanghai Composite Index failed to enter the emerging stock index (MSCI), and the international investment community did not recognize the status and pattern of China's market economy.

At least tell us that China's legal rich group is not thinking all day about how to get money out of the country.

Because in this world, the country where real money can generate money is China.

In the first thirty years of China, China got rich first and then went abroad to hope to earn more money.

This is the reality.

In the rise, China needs a market economy, needs RMB internationalization, convertibility, and achieves the integration of the domestic economy, excess capacity and the world economy.

From this point of view, Shanghai and Hong Kong through a substantive step.

We cheered.

Shanghai and Hong Kong also tell us at least that the overall level of China's Shanghai and Shenzhen stock prices has been in line with international standards, even at a low level.

There is no need for Chinese investors to fear that the stock price will plummet after the international stock market is opened.

On the contrary, the Shanghai and Shenzhen stock markets will take a real bull market.