Why Does The Central Economic Conference Stimulate The Market?

As 2015 is drawing near, many investors are looking forward to another big market.

In the end, many investors saw the dawn, the Shanghai Composite Index rose 1.77%, the Shanghai and Shenzhen 300 index rose 2%, and the Shenzhen stock index reached the first round of this round of market price, and there was no eating quotas on Monday.

The high point, many people cheered across the year can expect.

On Monday, the four day central economic work conference ended. We can see that the meeting focused on five aspects: capacity, inventory, leverage, cost reduction and compensation.

Among them, the "cost reduction" is more conspicuous.

This concept, on the one hand, is to reduce the tax burden on enterprises, and the enterprise's income tax is estimated to make some adjustments; on the other hand, it reduces the proportion of enterprises to pay five risks and one gold for employees.

Tax reduction has always been what many experts and scholars hope the government can do. They hope to reduce the cost of enterprises by lowering taxes.

Reagan Economics said: by reducing the operating costs of enterprises, we can stimulate economic development.

In 1982, the US GDP was about 1.3 negative.

After implementing the measures of reducing taxes to stimulate the economy, the GDP of the United States reached 7% in 1984, and the contrast was very large. The difference of GDP between the outside and inside was 9%.

Therefore, we also expect that this measure can be implemented in China next year, and it will be effective next year, and it will really work in the next year.

Of course.

The main reason is the sweep of insurance funds.

Recently, insurance funds sweep the stock market as a scenic spot, especially after Vanke suspension.

Vanke suspension of restructuring, the effect continues to ferment.

It is also normal for everyone to worry about such a radical insurance fund. After all, these funds have the nature of short-term investment.

Moreover, in the context of deleveraging, the leverage removed by the Chinese banking industry in 2013 and the leverage removed by the Chinese securities industry in 2015 are now returned safely through insurance funds.

Shui Po believes that the deleveraging of insurance funds may be the next important topic in China's financial sector.

In addition, the market at the end of the year has another significant factor.

Because the registration system of the State Council has just been passed by the National People's Congress, and the speed is faster than everyone's imagination.

Water skin reminds you that maybe before the new year's day, the market will usher in a real change.

You must also realize that the direction of insurance funds sweeping is characteristic.

First, big blue chips; second, relatively dispersed ownership; third, undervalued valuation.

In fact, the insurance fund has been sweeping into real estate stocks and bank shares for a long time, and this action has lasted for six months, and mainly comes from several more radical insurance companies, such as Qianhai life, Ampang, and happy life.

Why are insurance companies so radical?

It is believed that this is mainly related to the nature of insurance funds.

Insurance companies mainly sell omnipotent insurance, which is a kind of insurance that can be freely combined with protection and investment.

However, some insurance companies are more radical. Some insurance companies are almost zero, and have evolved into 100% financial products.

In order to compete with other financial products for tourists, insurance companies generally promise that the return of funds to insurance customers will be very high, and the annual yield is generally between 5% and 7%.

If the promised annual income is so high, where can the insurance company find the money? It can only invest in assets that can bring high returns.

In this way, for insurance funds, we can enter and attack, retreat and defend.

If we go in, maybe we can get the right of speech of the listed companies, or even reorganize the board of directors and hold the table together.

This, of course, stimulated the stock market.