The Collapse Of Share Prices Could Hurt Investors Even Beyond 2008.

At present, the stock price of most of the companies in the market has shown a bubble.

The small cap stocks represented by the company are even more serious.

Excessive stock prices will cast a shadow over future earnings prospects. Even in the most successful reform process and economic prospects, investors who buy too high priced stocks will not be able to get satisfactory returns.

Although bubbles make money easy and fast, our net value also benefits from the rapid growth of bubbles.

We also agree with the positive significance of the active capital market in promoting direct financing and economic pformation, but we also believe that the recent performance of the market has underestimated the difficulty of reform and ignored it.

Hardship and possible suffering.

At present, the market is making a big stride after easily passing 4000 points, and the bubble keeps going at this speed.

Let us begin to consider the collapse of another bubble that may soon come. Due to the entry of huge leverage funds, this stock price collapse may hurt investors even beyond 2008.

Although there are various reasons for this difference, as Mark and Twain said, history will not repeat itself, but it will carry the same rhyme. The basic characteristics of human nature have never changed.

Although we do not know when the bubble will burst, the outcome may have been doomed. The process of uncertainty is just the process. The overall bill is easy to figure out. It is only the individual gains and losses distribution that is not clear.

The following market will be challenging for the fund managers. The stock market will have strong winds and waves. The net value of the fund will also fluctuate greatly like the ships in the big waves. We are psychologically prepared for this. We are also confident that we will steer the helm and continue to move forward in a successive cycle of prosperity and failure, so as to earn a good long-term income for our investors.

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The trend of the renminbi has again touched the hearts of the people.

If we start from the formation mechanism of the RMB exchange rate in August 11, 2015, until the establishment of the RMB index in December 2015, the RMB trend will have a distinct policy mark, and a new anchor basket for the RMB exchange rate will be established. Then, the new round of RMB exchange rate going down before and after the new year's day in 2016 is accompanied by a panic attack that releases the risk rapidly.

In the early January 5, 2016, the yuan hit a new low of more than four and a half years from the middle price of the US dollar, down 137 basis points from the previous day, and fell for the sixth consecutive trading day.

The day before January 4th, the central parity of RMB against the US dollar dropped by 96 basis points, breaking through the 6.50 pass.

On the day of offshore market, the spot exchange rate of RMB against the US dollar fell nearly 700 basis points, down 6.6.

Previously, the market expected that the RMB exchange rate would remain weak, but it is still in the controllable range. Especially before joining the SDR, the RMB exchange rate generally declined to the US dollar, but the two way shocks.

Since then, the renminbi has been falling from the middle price to the offshore market, and accompanied by the stock market crash and capital outflow, which shows that the situation is grim.

If the bearish expectations are accumulated, the damage to the market will be greater.

HSBC analysts predict that the euro yen trend will be stronger than the US dollar in 2016, and the renminbi will weaken further against the US dollar.

Risks continue to accumulate, but they are still in the controllable range.

Referring to data from Mr. Wan Zhao, an analyst at China Merchants Bank, since the beginning of 2013, other emerging economies have experienced a serious currency crisis, while the renminbi is the best performing currency in emerging economies.

It is linked to a basket of currencies, giving the yuan a very wide range of elastic fluctuations, but it also means that the appreciation of the RMB against the US dollar in 2016 will be difficult to achieve.

According to the data released by the foreign exchange trading center in December 28, 2015, the CFETS RMB exchange rate index in December 25th was 100.87, an increase of 0.87% compared with the end of 2014, which increased by 1.61% and 0.07% respectively compared with the basket of BIS currencies and the basket of SDR currencies.

In December 31, 2015, the CFETS RMB exchange rate index increased by 0.94% compared with the end of 2014, compared with the basket of BIS currencies and the basket of SDR currencies respectively appreciated by 1.71% and 1.16% respectively.