China-US Financial Working Group Sends Strong Signals: The People's Bank of China announced on the 19th that the fifth meeting of the China-US Financial Working Group will be held in Shanghai from August 15 to 16,2024.

Since its establishment last September,the working group has maintained a frequency of communication once every 2-3 months,and this is already the fifth time.

The meeting was co-chaired by the Deputy Governor of the People's Bank of China,Xuan Changneng,and the Assistant Secretary of the US Treasury,Naiman.

The China Banking and Insurance Regulatory Commission,the China Securities Regulatory Commission,the Federal Reserve,the US Securities and Exchange Commission,and other departments participated.

According to Yuyuantan's official microblog,the China-US Financial Working Group has sent strong signals.

The working group announced that it has achieved two outcomes in strengthening the cooperation for financial stability between China and the US.

This is the first time since the establishment of the China-US Financial Working Group.

As the world's first and second super economies,future cooperation will increasingly be about mutual benefit,seeking directions where you have me and I have you.

Conflict and cold war do not align with the interests of both parties; strengthening communication and promoting win-win situations will be the only choice.

The Federal Reserve has begun to prepare for interest rate cuts,and it is expected that more favorable news will follow.

The main purpose of the China-US Financial Working Group is to strengthen communication and cooperation between the two countries in the financial field to promote the healthy,stable,and sustainable development of both economies.

What bearish news caused the decline of 4,591 stocks today?

In fact,it's just that the interest rate cut was a bit slow.

Can we bottom-fish now?

The global market is rising,but A-shares are still falling today.

The reason is that the central bank announced "no interest rate cut" today.

The loan market quotation rate (LPR) for August remains unchanged.

I believe it's not that the central bank is not cutting interest rates,but rather the pace of easing has slowed down a bit,and the market is just a bit impatient.

As soon as there is no interest rate cut,the market becomes chaotic.

On the morning of August 20,the People's Bank of China authorized the National Interbank Offered Rate to announce that the loan market quotation rate (LPR) for August 20,2024,is: the 1-year LPR is 3.35%,and the LPR for more than 5 years is 3.85%.

This is consistent with last month.

At 15:30 today,the Riksbank cut the benchmark interest rate to 3.5%,in line with expectations.

The Riksbank stated that the pace of policy rate cuts will be slightly faster than the committee's assessment in June,and it is possible to cut the policy rate two to three more times this year.

Once Sweden cuts interest rates,the European Central Bank will likely follow suit.

This week's global central bank annual meeting is on Thursday,drawing worldwide attention and focus,mainly because the Federal Reserve is about to cut interest rates.

Once the Federal Reserve cuts interest rates,central banks around the world generally actively follow suit,and the cut will be greater than that of the Federal Reserve.

Although the market saw a decline of 4,591 stocks today,the panic of individual stock declines has begun to slow down.

With more favorable news,the market may still see a rebound.

ICBC surpasses China Mobile as the "A-share king."

Since August,several state-owned large bank stocks have repeatedly broken through their highest prices.

The main reason is that the funds protecting the market have swept through ETFs and are also buying up bank stocks.

The US stock market looks at technology,India looks at tycoons,and A-shares look at finance,energy,and so on.

At present,the rise in banks is relatively easy to protect the market.

The rise in energy is a way to activate the market.

Generally,only when new energy rises can the market become active,and the index strengthens.

Now,it's just the rise in bank stocks,so the index is somewhat depressed.

ICBC's total market value has surpassed China Mobile to become the A-share king.

Since this is a large-cap stock with a market value of 2.28 trillion,it's hard to say whether it can continue to rise.

However,overall,it is one of the best havens for institutional investors,as some institutions are required by rules not to be empty-handed,so to hedge risks,they will choose stable blue chips for hedging.

A-shares bull market is always sudden; the last time it rose to 5,000 points,it only took half a year!

It's just that when A-shares have a market,the pressure to stay or leave is great.

Because the A-share market is always stimulated by good news; once there is a super good news,the market will explode.

The last time in 2015,it only took half a year to rise to 5,000 points.

So now,whether to bottom-fish or wait is very contradictory for many people.

How to resolve it?

Generally speaking,choosing targets through value investment may resolve the worry of missing the market.

First of all,there are now more than 5,000 listed companies in A-shares,and even if there is a market,they won't all rise together.

So your entanglement with the point is useless,and the focus is still on stock selection,which is more important than any era in the past.

Secondly,under the new national nine articles,value investment is more obvious,and those without value are generally not easy to deal with.

And the growth stocks of value investment are generally the leaders of emerging industries.

They will not appear in manufacturing or sunset industries.

Even if there are demons in these industries,it's not easy to fry.

It's not easy to be at ease even if you fry.

So,through the process of elimination,you will still find the ideal target.

In short,under value investment,only companies with great growth space in the future have great hope.

Even without capital speculation,their own growth will also promote the rise in value.

The number of current fund products is three to five times that of listed companies.

It can be imagined that if A-shares are fully value-invested,those valuable leaders will receive a huge amount of capital allocation,and there is no need to worry about future growth at all.

So look for leaders with great space.

If there is a market,it won't take too long to reach another 5,000 points,just three to five months.

India's 80,000 points,the US stock market's 50,000 points,are also supported by a few leaders.

Look for growth leaders,friends,there is no other way.

Can T+0 save A-shares?

The call to suspend quantitative funds is very high,but there is no progress at present.

However,if quantitative funds are suspended,the market needs T+0 to fill the gap in trading volume.

So I expect T+0 after the suspension of quantitative funds.

Currently,there is no relevant information about these,but the market is falling like this,and I really can't find any new good news.

After all,under the favorable situation of global interest rate cuts,A-shares are still so depressed.

How much interest rate reduction is appropriate?

Negative interest rates?

Currently,it is unrealistic in one or two years.

The interest rate entering the 1 era may appear next year.

The current interest rate is in the 2 era.

Under the continuous low interest rate,hot money always has a time when it can't hold on,and then hot money will enter the stock market to take risks and speculate.

The market is always forced out by falling!