Abstract: China's M2 scale has surpassed 300 trillion,and with a comprehensive interest rate cut,the influx of funds into the stock market for stock trading is expected to increase.

If you are afraid of direct stock trading,the market will have ETFs and funds to market to you.

Gradually,as the proportion of these funds entering the market increases,the market will follow.

The same is true for the US and Indian stock markets.

The cornerstone of the global stock market relies on institutions,not retail investors,which is why there is a trend towards reducing retail investors.

Main Body: The 30 trillion insurance assets are about to undergo a significant change,and the proportion of entering the stock market for stock trading will be approaching.

The financial regulatory authority has issued two major policies in one day.

On August 2,the financial regulatory authority issued the "Notice on Improving the Pricing Mechanism of Personal Insurance Products" and the "Notice on Smoothly and Orderly Carrying Out the Switching of Personal Insurance Products".

Looking further,the much-anticipated insurance product's guaranteed interest rate will undergo a significant adjustment.

From September 1,the upper limit of the guaranteed interest rate for newly filed ordinary insurance products will be 2.5%,and from October 1,the upper limit of the guaranteed interest rate for newly filed dividend insurance products will be 2%,and the upper limit of the minimum guaranteed interest rate for newly filed universal insurance products will be 1.5%.

Insurance products with interest rates higher than the above limits will cease to be sold.

According to the "2024 China Insurance Development Report",China's insurance asset scale has increased to 30 trillion,and it has been the second-largest insurance market in the world for seven consecutive years.

In 2023,the development of the insurance industry has become a highlight of the economy,with total premium income exceeding 5 trillion yuan for the first time,and the premium growth rate is about 9.14%,far higher than the economic growth rate of 5.2%.

The increase over the past 10 years since 2013 has been 187%; the scale of insurance assets has increased year by year,with the total scale exceeding 20 trillion for the first time in 2019,reaching 29.96 trillion yuan in 2023,and has been the second-largest insurance market in the world for seven consecutive years.

In addition to the insurance industry,the scale of bank wealth management products in the banking industry has also continued to increase.

In the first half of 2024,the total amount of wealth management products and the scale of existing products have been steadily increasing.

The existing scale has also increased from 26.20 trillion yuan in March to 29.29 trillion yuan in June,approaching the 30 trillion yuan mark.

The scale of insurance funds is 30 trillion,and the scale of bank wealth management funds is also close to 30 trillion.

With a comprehensive interest rate cut and a global interest rate cut trend,the expectation of Chinese bank wealth management and insurance wealth management for stock trading will increase.

The investment strategy of the US life insurance industry is relatively aggressive,with equity assets accounting for up to 76.3% of independent accounts,while debt assets only account for 15.6%.

However,China's public funds,with a total of 31 trillion,only have a total scale of 6.6 trillion for stock funds and mixed funds.

In addition,the scale of US pension funds investing in US stocks is $17.4 trillion,accounting for 20% of the entire US stock market,and the allocation ratio of pensions to US stocks is 42.5%.

China's pension allocation ratio is still relatively low at present,expected to be around 15%.

India was also 15% before and is striving to raise it to 50%.

The "National Social Security Fund Domestic Investment Management Measures (Draft for Comments)" released last year mentioned that the social security fund's maximum investment ratio for stock and equity assets can reach 40% and 30%,respectively.

That is to say,China's pension stock trading ratio is still the lowest in the world,and of course,it may also be a problem with A shares.

If pensions are internationally laid out,the expected proportion of investment in stocks will increase.

Today's data shows that as of the end of July,the scale of equity ETFs (excluding cross-border ETFs) has exceeded two trillion yuan.

For equity funds with a total scale of more than 600 billion yuan,ETFs have "one-third of the world," becoming an important force affecting the market.

That is to say,one-third of the fund funds are used to buy ETFs.

The West is even more so,with half of all stock trading funds being ETFs.

In a market-oriented stock market,individual stocks fall more and rise less,so there are fewer retail investors and more funds in the West.

In the future,after China's A shares become Westernized,it will also be difficult to trade,and it is likely to be similar to the West in the future.

After all,it is not easy to find a daily limit board among 5,000 listed companies,unlike before when there were only 2,000.

It was easy to hit the daily limit with a small plate and a low price,but now it is too difficult.

So the future is an institutional market,an institutional era.

Pay attention to the high-growth core leaders in the ETF component stocks.

Overall,China has a huge amount of funds that can be used for stock trading,and the policy has also mentioned increasing the proportion of these funds in the stock market many times,but there has been no more action yet.

It even leads to some views that the current falling market may be an opportunity for them.

Regardless of the reason,from an international perspective,funds cannot be in fixed income all day,and entering the market for stock trading will be the main trend.

For example,75% of Norway's national sovereign funds hold US stocks.

Of course,other people's index is bullish,and our index is not good,and many friends will have opinions on this,but in the long run,the funds for stock trading mainly buy ETFs,so the index will be stable in the future,and the growth leaders will not lack national-level fund layout at least.

And the current decline and over-correction may be a big turning point window.

I am very optimistic about the current over-corrected high-growth core leaders,and there will be a lot of funds for stock trading in the future,and now only the signal to push up is missing.

And a comprehensive interest rate cut,low interest rates will be a long-term trend,and funds entering the market will be inevitable.

Rise up,my big A.Non-agricultural thunder,the whole world is green.

The global capital market has encountered a "Black Friday" this week.

The Federal Reserve did not cut interest rates,and the unemployment rate of the July non-agricultural employment data jumped.

The unemployment rate in the United States in July was 4.3%,the highest since October 2021,triggering the Sam Rule's economic recession alarm.

Worries about an economic recession in the United States have impacted the global stock market,and the main capital markets around the world closed down on Friday,with a large area of green.

Virtual currencies were also scared to collapse,and a "big escape" of funds was staged.

At 8:00 a.m.on August 3,Beijing time,the price of Bitcoin collapsed to below $61,000,and it had just rushed to $71,000 three days ago.

What to do in an economic recession?

As the world turns defensive,the world looks to China again,hoping that China can lead the way out of the predicament.

The yuan is soaring!

The offshore yuan against the US dollar has risen by more than 1,000 points in a single day,recovering the 7.15 threshold,and is reported at 7.1437,the highest since January this year,and as of the time of writing,it is reported at 7.1701.

The global concern about deflation is beginning.

The US chip giant suddenly explodes!

Intel plummeted by 26%!

15,000 people were laid off globally.

Without the Chinese market,the giants have started to explode.

When the market consumes interest rate cuts and the dual impact of oversupply of goods,the world may turn to deflation.

If it continues to be suppressed by a recession,the effect of global interest rate cuts will also be relatively limited.

This may not be far away,as the current inflation in the West is mainly driven by wars.

Bank of America believes that market participants may have underestimated the extent to which interest rates need to fall to stimulate a weak economy that is no longer driven by government spending.

If the world enters a recession,the inflation in the West will burst,and China's manufacturing advantage will be further highlighted.

Now is the stalemate,the United States is trying to pull back manufacturing,and China just needs to wait and defend.

Because the cost advantage is on our side,as long as their economy is not good,their support targets will collapse completely.

It is not easy to rise with support,and the advantage is innate.

Like A shares,many companies have been supported,but how many can come out in the end,and they go bankrupt as soon as there is a bear market.

So the world's truth is the same,now is the time to compare naked swimming,and the survivors are the kings.

Pay attention to the core leader growth stocks,find the ones with large space,large industry space,and large market space.