Chapter 19 6. The fourth of the top 10 surveys: capital in China

No matter which school of economics we adhere to, we have to admit the fact that in the increasingly fierce commercial competition, capital has become the only target for all economies to compete for. Whoever holds more capital has the right to speak. The bigger it is, the better one will live in the future. Conversely, the shortage of capital means a comprehensive disadvantage, not only difficult to grow and develop, but even survival will become a problem. Topic introduction: vicious eruption of capital market - competition for capital - self-salvation of private forces If we have a little understanding of economics, we will know the deceitfulness and unpredictability of the capital market, and through our previous analysis, we also understand the negative effects of the capital market on the economy.

However, no one thought that in just 10 years in China, the fastest, most prosperous, and most impressive economic growth was started by stocks. May 19, 1999 was an ordinary and unusual day. It was ordinary because it was the same as all late springs, and there was no difference; it was unusual because it was destined to be written in China. A textbook of contemporary economic history. On this day, the Chinese stock market, which had been silent for two years, suddenly exploded without warning. At the close of that day, the stock indexes of the Shanghai and Shenzhen stock markets rose by 51 and 129 points respectively, and then began an unprecedented sharp rise. In less than two months, it went straight from 1109 points to 1700 points. Such an increase of more than 50% is rare in the world.

In order to commemorate this day when many people got rich overnight, Chinese stockholders spontaneously named this stock market blowout spectacle—5? 19 Quotes according to the tradition. For two full years, this wave of market continued unabated until June 14, 2001, when the Shanghai stock market soared to 2245 points in one fell swoop. The capital market is the wind vane of the macro economy. When China's stock market continues to rise amid flowers and applause, the new economic form led by the Internet is also creating a new bubble in silence. When we are shocked by the madness of the stock market, there is a question that must be said before us.

This is the competition for capital in the commercial society, and this problem has always existed acutely since the day humans stepped into the commercial society. Regarding the competition for capital, it actually refers to the fields that need to be invested in the commercial market, which always exceeds the capital that can be used for investment.As a result, two relatively contradictory concepts have been triggered here. One is called competition, and the other is called cooperation. The so-called competition refers to the struggle for control over capital, that is, the power to decide who controls the direction of capital investment. Under normal circumstances, this kind of control over capital is achieved through compromise and games. This is what economics calls distribution.

Whether it is competition or distribution, the process must be fierce and bloody.As we have seen above, the madness in the Chinese stock market appears to be due to the shortcomings of the system and the malicious manipulation of a few dealers, but it actually reflects a substantive problem-there are all Chinese companies in a capital shortage. Because of the shortage of capital, they will invest in the securities market to raise more capital, and because of the shortage of capital, they will add fuel to the rising market and gain greater benefits from it. Because of this, no matter which school of economics we hold, we have to admit the fact that capital has become the only target for all economies in the increasingly fierce commercial competition. Whoever has the greater right to speak will have a better life in the future. Conversely, a shortage of capital means a comprehensive disadvantage. Not only is it difficult to grow and develop, but even survival will become a problem.

In this fierce competition, all economies will be involved, including all individuals, all enterprises, industries, and even countries. The reason why the country joins the ranks of scrambling for capital is that it also has the function of an economic subject, and there is also a demand for capital. In fact, since 2008, due to the global spread of the U.S. subprime mortgage crisis, coupled with the domestic stock market and real estate industry plummeting, the state-owned banks with a large amount of capital have been overwhelmed and have begun to tighten their money. "Protect the wallet" behavior.

However, due to the protective support for large state-owned enterprises, all banks, regardless of their size, insisted on continuing their loose credit policy in the past, and instead drew a large amount of funds from private enterprises, which brought about a large number of small and medium-sized private enterprises. Shut down and turned on, the situation can almost be described as "tragic". In desperation, many small and medium-sized private enterprises have no choice but to extend a helping hand to the "informal" capital lurking underground.And it is in this movement of self-salvation of private capital that a shining factor can be highlighted.

This factor is the operating efficiency of private capital. Long before this crisis, we have seen the "real estate speculators" and "coal speculators" sweeping the country, and behind these commercial expansions are all supported by efficient financial mechanisms.Many small capitals are finally brought together through the operation of various non-governmental financial organizations to form an effective application. In this process, the speed and quality of the final loan are unmatched by state-owned financial institutions. Hard to beat. Therefore, when our state-owned capital itself is in trouble, private capital has quietly played a role in supporting the market. It is conceivable that in the future economic development, if this private financial system can be properly It may be a great blessing for the Chinese capital circle.