Gao Xiqing: What Is The Most Worthwhile Investment?

Gao Xiqing, the founder of China's stock market and general manager of CIC, said that the state-owned enterprises should be further marketization and retreated from industries that should not compete with the people.

The price of resource assets is close to the bottom of history. We should take this opportunity to invest.

Gao Xiqing said in a recent interview that state-owned enterprises should not operate any industry, and private enterprises and other enterprises can do so.

There is no need to stir in, otherwise there will be a conflict of interest.

Moreover, government departments and governments at all levels have great powers. Government departments and state-owned enterprises are often exchanged for positions of responsibility, and it is difficult to achieve fair competition.

He said:

The spirit of the several plenary sessions of the party has clearly pointed out the direction of this action, and really reached the decisive role of "making the market play a decisive role in the allocation of resources" in the third Plenary Session of the 18th CPC Central Committee. As long as we achieve this, we will go a step further.

There is a saying that reform dividends are gone. From this perspective, I think there is still huge.

Dividends, China's economy will certainly be better.

At present, the global economy is not performing well.

As demand continues to fall, copper prices as a barometer of international economic growth fell to less than $5000 / tonne on Thursday, reaching a six year low. In the past month, the price of crude oil briefly reversed has dropped to less than $45 per barrel.

I mentioned this morning that although the market has already experienced a blow up of commodity sell-off in August this year, traders and analysts believe that this situation is even more worrying because the driving force of this round of price declines is not the oversupply in the past, but the decline in market demand in China.

The last big rescue market, 4 trillion went in, leaving a lot of sequelae; the rescue market may also have sequelae, but we have not seen.

If we continue to use the whole nation system in a hard way, there will be a price.

Market economy has its own law.

However, in the view of Gao Xi Qing, this worry is not necessary. The price of resources is close to the bottom of history. Even if it may fall, the decline may be limited.

He said:

It is said that the price of energy will still fall, and it may fall, but how much can it fall? If we look at historical data, we are already at the bottom.

Like CIC funds or insurance funds or social security funds, as long as they are relatively large and can afford to invest in a longer investment cycle, it is really necessary to take advantage of this opportunity to make some configurations in these areas.

They are selling now.

He explained that the cost of oil production in the past was only a dozen dollars, and now that the average cost of deep sea, oil sand and shale oil has been developed, the average cost has increased to around us $50.

If the market price is less than $50, there will be a fundamental problem. All investment in infrastructure for the petroleum and energy industries will stop.

He said that during the period of stagnation of investment, watching is saving money, but when the economy goes up and the market demand increases, these investments will not come into supply in one day, and there will be an empty space in the next few years. At that time, the next price may be lifted up again.