The Primary Risk Of China'S Economy Is Lack Of Bottom Line.

A major problem in the capital market is that investors are not mature enough.

Many investors do not have enough vigilance against risks, so there is a faction in the market who thinks that it should be allowed to teach investors by default, avoiding the government's covert exposure and letting investors learn from the market.

Although there is an immature side, it does not mean that they should be watched as they buy lessons from real gold and silver in the market. Behind a large number of risk events, there must be imperfect management and dishonest enterprises.

Some highly motivated investors enter P2P and enter financial companies to seek profits. They really need to review why they can not identify hidden risks.

But in the current credit soil, if Internet finance is not allowed to be supervised, local exchanges, small loans, financial management and Mammon Inc will be flooded. That will be a bigger mistake.

It is the eternal prerequisite of economics that we can not take responsibility entirely to the greed of human nature, and the greed of human nature. It is the duty of policy and supervision to restrict human nature to keep the bottom line of law and the bottom line of credit.

If supervision is not in place, it is better to slow down.

If all responsibilities are pferred to the private sector, what is the need for regulation?

Recently, the US media again exposed the problem of formaldehyde exceeding the standard of wood flooring produced in China.

As early as March 2015, the CBS company's 60 minute program exposed hardwood flooring.

Some of the products are over standard formaldehyde, and the problem of composite wood flooring sold by Chinese factories is produced. This factory deliberately conceals the fact that the formaldehyde content of its products is much higher than that stipulated by California.

After the incident was disclosed, the company subsequently announced that it would suspend the sale of all laminated wood flooring purchased from China.

Although no specific data are available, many products exported to the US are being squeezed.

In American supermarkets, Chinese food is becoming less and less. Even if there are, it is often crowded into corners and it is difficult to see the day. This is closely related to China's food credit discount in recent years.

Imports and exports of textile and clothing are also declining, and products from Latin America and Southeast Asia and South Asia are increasing in US stores, which is related to cost and credit.

Now it's the floor again. Building materials are an important part of China's exports to Europe and the United States. The phenomenon of self destruction and reputation of the Great Wall is distressing.

The ten thousand step is to say that even if the US wants to reduce imports from China, the credit damage of Chinese products has just given the other party a handle.

Data in January this year showed that China's imports and exports to Europe, America, Japan and ASEAN markets declined.

In January, the EU was China's largest trading partner, with a total trade value of 290 billion 330 million yuan, down 9.9%.

The total trade volume between China and the United States was 269 billion 890 million yuan, down 9.9%.

The total trade volume between China and ASEAN is 234 billion 250 million yuan, down 10.8%.

The total trade between China and Japan was 131 billion 540 million yuan, down 6%.

This may be only a relay station in the process of decline.

Three major causes

The product credit has no rewards and penalties. The parents have suspected that the new house has been decorated, and the suspected formaldehyde and other standards have caused the child's leukemia. But until now, there has been no Ju Youzhen's deterrence about the quality of the products. The practice is to open the door and blow the wind for several months after the decoration, which makes the credit of the products more difficult. Thirdly, the distribution link is competing against the price and the cost is rising, so that the profit of the enterprise is as thin as the knife edge. Last year, chatting with the friends of the building materials industry is all a bitter tear. The big brand also joins in the price war under the pressure of this festival and that section, and the profit can be flat even if the profit is flat, even if it is on the top, it can use cheap glue to make up without using expensive glue. First, there is no perfect protection mechanism for property rights, followed by right.

Sometimes the so-called financial innovation is only an improved version of private usury.

The author listens to an insurance company's introduction. They have about 1000000 local population, Mammon Inc has more than 40, small loan companies do not make a pretence, change the signs and make a comeback, it seems that the innovation is in the bag. In the final analysis, profiteering and subsidies are many people's mouth watering.

Some overseas companies now want to make a big discount on privatization. Today, if you want to withdraw from the market tomorrow, you want to have A shares listed, but what about the credit of the stocks? How will the Chinese companies stand on the international market and how to price them?

Whether it is shopping carnival or high quality products, and occasionally having both is possible, and always want to get high quality products at discount, this is a fantasy.

This is especially true in financial markets. It is not known that financial officials come to the platform of local exchanges. They are publicized as achievements everywhere. Once the accident is said to be market behavior, local financial institutions should always monitor financial risks and sometimes become the initiators of risks.