China'S Economic Development Is The Foundation Of Rising Stock Index.

The stock market is a direct financing for the real economy and a place for the real economy.

Because listed companies are directly financing investors, listed companies can reduce the cost of financing.

At present, there is a public opinion that China's economic slowdown will not support the rise of the stock index.

The reason for such public opinion is that China's GDP growth rate continues to fall.

From 1992 to 1995, China's GDP grew for two consecutive years in four years.

In 2014, China's GDP grew by 7.4%, but in 2014, the scale of GDP in China was 3 times that of 1992.

The US GDP grew by 2.4% in 2014.

According to the current scale of GDP in China and China's economic pformation, it is more appropriate for our country to maintain a growth rate of GDP of about 6%.

Thirty years ago, China's comparative advantage was low labor cost, so "made in China" became the engine of China's economic development.

Now China's comparative advantage is science and technology. "China creation" will become the mainstream of China's economic development and become the cornerstone of the rising stock index.

Our country

The first half of 2015 has been published.

We note that in the first half of 2015, the net profit of leading enterprises in some traditional industries dropped sharply compared with the same period last year. For example, the net profit of conch cement in the leading industries of cement industry decreased by 19.17% compared with the same period last year.

Leading enterprise Lu Tai A net profit fell 27.76% compared to the same period.

At present, the dividend yield of some listed companies in China is higher than or close to the five year deposit rate of our banks.

There are other listed companies.

It has also been higher or closer to the five year deposit rate of our bank.

At present, most investors think that China's stock market is not a place for investment and financing, but a casino with zero sum game. It is also deeply affected by it. Therefore, no matter what good the government gives, investors will sell stocks and leave the stock market, because investors believe that the government's good will have nothing to do with the gambling market, and even think that the government's good intentions are to entice investors into the casino.

The investment income of stocks should mainly come from the year-end dividends of listed companies, rather than from the price difference between low purchase and high selling of stocks, so the average investment yield of stocks should not exceed the average profit margin of listed companies.

If the average investment yield of stocks exceeds the average profit margin of listed companies, then the capital will flow from the real economy to the stock market, which will have a negative impact on China's economic development.

Even if China releases good macroeconomic data, the listed companies have good business performance. However, as long as the SFC officials are dereliction of duty, dereliction of duty, and even join forces with interest groups, the functions of China's stock market will not be repaired.

If the Chinese stock market is not completely rectified, even if the national team rescues the market, no matter how much money the country has, the money of the state will earn their pockets by interest groups and become their laughing stock.