Chapter 4 Lecture 03 Looking at the stock market through numbers

●There has been a major change in everyone's mentality towards the entire stock market. ●Who is behind the trust fund? ●I think really good projects should be done by all of us ordinary people. The stock market experienced ups and downs in 2007, and the proportion of stockholders who could finally obtain income from the stock market was not high.In response to this phenomenon, stockholders jokingly called it "taking the elevator". What are the characteristics of the stock market in 2007?How should China's stock market develop?Does the government have an obligation to protect the rights and interests of small and medium shareholders?These series of questions are difficult to figure out.Then, let Professor Lang Xianping lead us to re-examine the stock market through numbers.

Dear guests, audience in front of the TV, hello, everyone.Let's talk about the stock market in 2007 today.I can see that the faces of your guests are all speculating in stocks, right?We don't discuss whether stock trading is a rational behavior.Because you have no other way to go except stock trading, your money will depreciate if you put it in the bank.You are all young and I would like to ask you a few questions to see what you think. What was your impression of the entire stock market in 2007? Why didn't you operate? Can you talk about it?You can also talk about your family's situation.

Audience: I think the stock market in 2007 should be regarded as a year of ups and downs.My father is also speculating in stocks, but he didn't dare to speculate at the beginning of the year.At the beginning of 2007, he felt that it was very dangerous for so many people to speculate in stocks.So, he is really special. Lang Xianping: He is no longer fired? Audience: Yes, he thinks the risk is particularly high this year. Lang Xianping: How much money did he earn? Audience: Make a profit, make a loss, and in the end, make no loss and no profit. Lang Xianping: His work was wasted.What impressed you the most was the sharp rise and fall of the stock market?

Audience: Yes.When the index fell below 5,000 points, I had no idea. I didn't know when the stock market would rise back and when it would stop falling. Lang Xianping: Are you worried that the index will not come back? Audience: I'm not worried. I think the stock market has fallen recently, but it will get better and better in the future. With more supervision, it must be developing in a good direction. Lang Xianping: Is it possible to develop in a bad direction? Audience: This possibility is not very high. The country will adopt some policies to make it develop for the better. All of you here, answer a question for me.Do you think the development of the stock market in a good direction depends on the strength of the country?We are still here to vote. How many students think that relying on the strength of the country can make the stock market better? Please raise your hands.So what is the reason for the rest, does it depend on the enterprise?Raise your hand, corporate conscience?If a company has no conscience, should it be regulated by the government?So, in the end, it's up to the government.Can you see if there is such a possibility: instead of relying on the power of the government, only relying on the company's own conscience and responsibility, it will make the stock market a success?Your answer starts our very important topic today, how can the stock market get better in the future?That is to rely on the power of the government.

Let me talk about the US stock market first.The US stock market was the same as the Chinese stock market before 1934, maybe even worse.You can imagine major banks manipulating stock prices, insider trading...everything.So, in 1929, the U.S. stock market crashed because it was so bad.So since 1934, the US government has been the only government that can directly intervene in the stock market.His thinking can give us an inspiration, that is, we cannot rely on marketization to improve the stock market.The stock market will only get better if it relies on strict government supervision.But everyone should pay attention, the so-called strict supervision does not mean suppressing the stock market.

The purpose of the US government's intervention in the stock market is to serve the general public and small and medium shareholders.From 1934 until today, do you know the difference between small and medium investors in the United States and our Chinese small and medium investors?I have often received complaints recently, and the complaints I have received are piled up like a building. Why do they complain to me?Doesn't he know that he should complain to our government, including the China Securities Regulatory Commission?Perhaps ordinary people feel that it is useless to complain to the government.In the U.S., every minority shareholder knows that once he is wronged, the U.S. government will stand up and uphold justice for him.In this case, every college student in the United States will invest part of his first salary directly in the American stock market after graduation.

Decades later, when he retires, he will definitely be able to get a rich return, which is enough money to support him for the rest of his life.The U.S. stock market has created a society of equal wealth for the United States, and this role is very important.I especially emphasize this point of view. The real subject of the stock market should be the general public, that is, small and medium shareholders. The government is very important, and so is the enterprise. What if the enterprise has no conscience?What is the essence of antitrust law in the United States?Anti big family.Therefore, the US government introduced this bill in 1890, the purpose of which is to withdraw the American family from the historical stage of the United States.How to quit?Quit peacefully.You sell the stocks in your hands at a high price-to-earnings ratio, sell them to small and medium-sized investors, and withdraw from then on.Is there any member of the HP family on the HP board?No more, all gone.Therefore, only the U.S. and the U.K. are the majority of companies in the world, so the public can truly enjoy the fruits of U.S. economic development.As long as these listed companies earn 1 yuan, they will develop into 30 yuan through a market-to-earnings ratio of 30 times, thereby bringing benefits to every stock holder.If every company makes money, the wealth of the whole society will be completely owned by the general public—small and medium investors.

Therefore, the US stock market has assumed the function of redistribution of wealth.So, what if the entrepreneurs of listed companies have no conscience?You think Chinese entrepreneurs lack conscience, but let me tell you that American entrepreneurs also lack conscience.As long as you are not bound by strict rules, he will pursue profits, which is the nature of a businessman.The US government has used very strict laws to force every professional manager not to violate fiduciary responsibilities.If you violate your fiduciary duty, if you don’t make money for the common people, if you do things, then the strictest laws will be used to sanction you.For example, in the Enron incident, Enron violated regulations and made frauds. As a result, the company that audited for it would of course go bankrupt, and a partner committed suicide.The United States uses a strict law to keep you from committing crimes.Then in the end, every professional manager will try his best to make money for you, and then develop a price-to-earnings ratio of 30 times through the stock market. In the end, the economic growth of the United States will benefit the general public in the United States. This is what it can create. The reason for an equal wealth society.

If any stock market wants to develop healthily, it must be supported by the power of the government. The purpose is to make us ordinary people make money.For listed companies, they must pass the government's severe punishment laws to prevent them from committing crimes. This is the concept of the stock market.I have been promoting this concept since 2001.Frankly speaking, compared with before 2000, there is a very big gap in the supervision of the stock market by government agencies including the China Securities Regulatory Commission.Why do I say that?This is the result of my personal investigation.It is very important for the management of the fund companies you are concerned about. Let me show you a piece of information. At present, there are 110 million accounts of securities investment funds in China. Why do you put your money there? Are you not afraid that he will take the money and run away?Are you not afraid that our funds will enter the mouse warehouse and use your money to trap you?won't you?Of course they will!So why do you dare to invest in funds, you tell me?

I can tell you that the China Securities Regulatory Commission has not done enough in many aspects.I often criticize them, but I personally agree with the strict management of funds by the China Securities Regulatory Commission, because strict management of funds directly or indirectly protects small and medium investors. There are many more reasons.Because it is more professional and has a larger amount of funds, buying a stock for it is different from buying it for you.Therefore, more than 60% of transactions in the US stock market are done by funds; in the UK, fund transactions account for more than 90%, and the stock market of others is basically supported by funds.Our Chinese fund accounts have reached 110 million, which I think is normal, but why has it reached such a high number?In my opinion, this is also directly related to the strict management of the fund industry by the China Securities Regulatory Commission in recent years.We ordinary people still trust the fund relatively, and I want to give a positive comment on this point in the program.Are our funds flawed?Of course, I will talk about this issue during the broadcast of the program.Let's have a discussion. How many of you guests, including your family members, have opened fund accounts and what do you think of funds?Let me ask this question, please raise your hands for those of you who have never opened a fund account?

Most of them don't?Does your family have any?Not only you, but also your family members, including father, mother, brother, sister... If your family has opened a fund account, please raise your hand.Still not much, what about the others?Stock trading by yourself?Let me ask you, why did your family buy funds? Audience: The main reason is that inflation is very serious and real interest rates are negative, so deposits are obviously irrational.Investing in the stock market, our risk is still relatively large.So, we chose the fund.Because fund managers are more professional, their information channels and investment methods are better than our own. Lang Xianping: Do you believe in funds so much?Aren't you afraid that he will cheat you? Audience: Because there is competition and there are many fund companies, if a fund company tries to cheat you, you can choose another fund.As you said just now, the China Securities Regulatory Commission is also very good at supervising this, and there are many related regulations such as third-party custody.So, I think the possibility of being cheated in the current environment is very small. Lang Xianping: So you are willing to entrust your money to a more professional professional manager to manage it, because you trust him, and you think that there are various relevant laws that restrict him. Audience: Yes, I think these fund companies can still be trusted. I can tell you this, we must have a correct understanding of the fund.There are a lot of reports recently, but I think they are not comprehensive.So it is the last two years that my country's fund industry has entered a period of relatively strict supervision. We have no way to make a more credible conclusion on my country's fund industry, because the time is too short.I can tell you this, as long as you buy a fund, all your returns are basically the average return of this market. Taking the United States as an example, the top ten funds with the highest gains this year are often not the best performers in the second year.In other words, it is very difficult for you to buy funds to outperform the market.In addition, even if the fund outperforms the market, it is difficult to maintain at the peak for more than one year. This is the conclusion given to us by the US fund.Generally speaking, no more than 30% of funds can outperform the market.And the 30% of the fund also varies from year to year.In the United States, the fund's return can only be a little higher than the market.So, why do people still buy funds?The reason is to expect a stable rate of return.This phenomenon is very reasonable.Let me give you an example. I believe that many of your family members buy insurance, which is also a form of securities. When you buy insurance, have you noticed a phenomenon, that is, savings insurance.How much money do I save every month, and I can get a lot of money back when I retire in 30 years.There is such insurance, right?If you are sick or have an accident, you can still be compensated. If there is no compensation, you can use it as savings. After saving how much money you save every month, you can get a large amount of money when you retire, right?But what about its rate of return?That is, save 1,000 every month, save 1,000 every month, and get back how much tens of thousands you get when you retire. If you save 1,000 every month, how do you calculate this rate of return?If the rate of return is equal to zero, it is 1000 plus 1000... Added to the end and returned to you.Please note that American securities include insurance, funds, and pensions.The success of these securities in the United States is based on the stock market in the United States.This point of view is very important, and I think every ordinary person in China should understand this point—why do I pay a little money for insurance every month, but when I retire, I will get a lot of money?It may be different for each insurance company. I think the return rate of insurance may be around ~8%.Do you know why?This return rate is the average return rate of the US stock market over the past 50 years.From 1940 to 1990, the average rate of return of the US stock market was close to 8%. That is to say, I put money into it every year. On average, it is calculated according to the compound interest rate of 8%, so how much money you all make.The American people have strong confidence in the supervision of the U.S. government. Therefore, every college graduate puts his salary in the stock market as soon as he graduates.Due to the growth of the U.S. economy, more and more people are putting on stocks, which makes the U.S. stock market continue to grow.What if your rate of return is not 8%?Then, the value of all securities related to insurance and pensions will immediately cause major problems, and may even cause the collapse of the insurance market and the pension market. Although we have a lot of securities, in the end you find that all of them are linked to the stock market.It can be said that in the West, whether government bonds or corporate bonds, they are basically a substitute for stocks, or a combination of stocks.Today, ordinary people spend 40% of their money on stocks, 20% on insurance, and the remaining 40% on bonds.What are the benefits of bonds?It can give you a stable return. In the United States, young people buy stocks and old people buy bonds.For the investment of the entire asset, no matter how you choose, it is impossible to get rid of stocks, but the amount of stocks you hold determines the size of the investment risk, it's as simple as that.The government's strong supervision makes our small and medium shareholders have confidence in the government. This is the essence and root of all problems. On this basis, the stock market can grow steadily, and stable growth must give you a stable return to support insurance and retirement funds.Everyone is also more concerned about the issue of Hong Kong stocks. A while ago, the through train for Hong Kong stocks was stopped. On the day of the stop, Hong Kong stocks plummeted 1,526 points. If you are concerned about our situation in 2007, you should remember that in the second half of 2007, Premier Wen Jiabao severely cracked down on underground finance in Shenzhen. Why hit?Take Hong Kong as an example, the underground finance in Hong Kong is unimaginable.I live in Hong Kong myself, and I often have to go through Luohu Customs in Shenzhen.There are dozens of small shops as soon as the Shenzhen Luohu Customs exits. On the surface, they are small shops selling cigarettes and lighters. In fact, they do not rely on this to make a living, but rely on exchanging RMB for a living.Its amount of funds is huge, which is unimaginable for ordinary people-I saw with my own eyes that several large baskets of RMB were removed from the truck and exchanged for 100,000 yuan. I will give it to you at that time. The efficiency is very high, the exchange rate is very good, and the credit is also excellent. , there will be absolutely no counterfeit banknotes.When Hong Kong people want to exchange Hong Kong dollars and renminbi, they basically use underground finance. Go to Hong Kong and have a look. There are financial industries everywhere, and there are places to exchange Hong Kong dollars everywhere.Why is that?It is because of their underground finance.There is this demand for underground finance, so the Hong Kong government's approach is to make these underground finance fully surface for government supervision.If the underground finance in Hong Kong cooperates with the underground finance in Shenzhen, the bridge between the two will make it very easy for our mainland stockholders to speculate in Hong Kong stocks—you only need to give him 100 yuan, and he will convert it into the corresponding Hong Kong dollar for you to trade stocks for you.The reason why Hong Kong stocks rose from more than 10,000 points to 30,000 points is the effect of the underground Hong Kong stock through train.Therefore, the central government announced the suspension of the through train for Hong Kong stocks, and the stock market would fall by 1526 points in one day.At present, most of the gains in Hong Kong stocks come from domestic funds, and domestic funds basically enter Hong Kong through Shenzhen. Since this channel exists, it is superfluous to open a direct train for Hong Kong stocks.And for the Hong Kong stock through train itself, I believe there must be many restrictions. Therefore, it is better to take the underground financial channel.I think the first step in our government's understanding of the Hong Kong stock through train is to make it clear that this approach is theoretically correct.However, how do you find a substitute for these banned underground finance in the next step?Because the market has this demand, there must be a black market if there is demand.The entire chain needs to be regulated. Let’s be frank today, I don’t want to see this kind of capital hitting the Hong Kong stock market aimlessly, which is not good for the Hong Kong stock market.We hope that the Hong Kong stock market will evolve according to the local economic development.Personally, I am more worried that virtual funds will enter the Hong Kong stock market through underground finance and bring the domestic bubble to Hong Kong.I agree with Premier Wen Jiabao's approach to rectify Hong Kong's finances.Block virtual funds, especially the first and second virtual funds.The first item is the entrepreneur’s money, and the second item is the corruption money.After blocking this, what is the next step?To be standardized.We hope that normal funds can still flow in and out freely, but supervision is very important.When I talk to you today from the beginning to the present, you will find that I have been emphasizing one thing, and that is supervision. Without a good regulation, it is impossible to have a good stock market.Therefore, for the so-called Hong Kong stock through train itself, the next step is to improve your supervision and make it more standardized. This is the real soul of the Hong Kong stock through train. There are some other phenomena that are worthy of our concern, and that is the problem of the Beijing-Shanghai Railway.The amount of financing for the Beijing-Shanghai Railway exceeds 220 billion. Many of you are students of finance. Let me ask you to discuss: How do you think this 220 billion should be raised?This is a very practical question, please share your views, who will pay the money and how will it be paid? This is different from the financial analysis you usually learn, how do you think it should be handled.Find a volunteer, otherwise it will be roll call like a class.Come, please speak. Audience: I think it should be in the form of bonds, because according to the SM theorem of our company's financial management, the cost of bond investment is lower than equity financing, so it is better to issue bonds for a long time. Lang Xianping: Do you think the interest rate is relatively low? Audience: Yes. Lang Xianping: Compared with stocks, it may be a little cheaper.Any other ideas?I hope everyone has an innovative idea, is there any other?We lesbians should also speak more.You designate a lesbian to speak next. Audience: We can now set up a company. To set up a company means that its capital can come from multiple sources.First of all, the state can inject capital, which is one aspect; the second aspect is to borrow from banks and encourage some private capital to inject capital into it. Lang Xianping: What you two said is very important. The government uses certain methods, such as issuing loans, to finance this project.Whether you can attract private entrepreneurs to invest is very important.Our program can definitely show that this project has found a huge amount of investment.I want to tell you a new way of thinking. First of all, I ask you, can this project make money?Do you know how long it takes for the railway from Beijing to Shanghai? About 5 hours, right?more or less. How long is your flight?You still have to take a taxi to the Capital Airport, change your boarding pass, and board the plane... how many hours will it take?I want 5 hours, almost 5 hours.We don't have any data, I just let you tell me with your sixth sense, please raise your hand if you think the Beijing-Shanghai Railway will lose money, one, two, three, four... If you think it will make money, please raise your hand, almost is everyone.OK, hands down.Why don't you want to make this money?Why do you think this is a government action?Classmates, guests, audience in front of the TV, why can't you do it? Why do most of you think that good projects cannot be done by us ordinary people?Why must it be government-led?Why must entrepreneurs do it?Why can't it be you?Have you ever thought about your own interests?Why is America so rich?It's not that the US government is rich, but that every common person in the US is rich. In other words, the wealth of the US is truly hidden in the people.Therefore, a good project should not be done for an entrepreneur, should not be done for a government, who should it be done for?All the common people.If you think this is a profitable project, why don't you do it? Regarding this project, I appeal to the government not to do it. I think entrepreneurs should not do it. It should be done by the audience in front of the TV and the guests.Ok, next topic, how do you do it?You are all majors in finance, let’s see how your learning effect is?Audience: There are too many people, and there are different opinions. A talented person should be appointed. Lang Xianping: For example, who? Audience: You need to find a lead person, and then gather funds to do it. Lang Xianping: Good.You are still elitist, find the most talented person to raise money, and then do it again.Thinking still needs to be broken through. You are the hope of our country in the future. If you have a finance degree, you don’t know it, so how can you do it?Speaking. Audience: I think this project should be used for IPO listing, and then issued to the majority of shareholders in the form of equity. Lang Xianping: Can we make the Beijing-Shanghai high-speed railway an independent company, and what guarantee will we use?Just use the cash flow that the high-speed railway can create in the future as a guarantee.Don't you all tell me it's going to make money?So the future cash flow should be profitable. Since you think this cash flow can make money, then we will use the future cash flow as a guarantee. What do you think?Okay, let me ask you again, what is this kind of investment that is independent and guaranteed by future cash flow in theory?It's called project financing.In the past, most of the project financing was borrowed from banks.Through this program today, all our teachers and students appealed for a new plan: change project financing to A-share listing. What do you think of an IPO, that is, an A-share listing.For every viewer in front of the TV, you can buy the stock of the high-speed rail project with as much money as you have.There is no problem at all in raising 220 billion.I think just because this is a good project, it should be given to all of us ordinary people.Ladies and gentlemen, what is this about the stock market?soul!This is the process of redistribution of wealth in the stock market.The reason why the U.S. market is so good is that it undertakes the function of wealth redistribution. It allows private entrepreneurs to withdraw from the stock market, allowing ordinary people to benefit from the healthy growth of the stock market.We can even go to the extreme, prohibiting institutional investment, and requiring individual accounts to buy every lot of stock, turning it into a real public holding.I think our opinion will definitely be highly valued by the central government after the program is broadcast.For such good projects, we need to raise funds in the stock market, not selling them to any group or institution, but to whom?Here you go!After we had this kind of consensus, you discovered that the stock market I had expected had such a function. The last topic is also the hottest topic in 2008: stock index futures will be launched soon.I can tell you that I am not opposed to stock index futures, but the launch of any stock market investment tool must conform to the nature of the stock market.What is the essence?The interests of all small and medium shareholders!Do you understand what I mean?After the launch of stock index futures, will it bring benefits to our small and medium investors?can not say it clearly.Since you can't explain clearly, why rush to push this? The company that operates the stock index futures project is also very familiar to me, and they have done a lot of work.The amount of funds in stock index futures is large, and they must ensure that stock index futures are not manipulated.I hope this company can rethink, what benefits does your launch of stock index futures have for small and medium investors? I hope that today's program can give our management a very clear outline. What is the purpose of the share split and stock index futures you engaged in in the past?Don't think that the introduction of the same tools is called "in line with international standards", no, this is a superficial phenomenon.Don't think that if you have low-rent housing and affordable housing, you will be successful, it is not.Stock index futures are the same.Why did you launch stock index futures?If you just want to be in line with international standards, then don't push it, it's troublesome.Why should you?This aspect is worthy of our government and experts and scholars to do further research. Today I clearly tell all the guests present and the audience in front of the TV, what kind of understanding should we have about the stock market?That is, during the healthy growth of the stock market, the only task that the government should undertake is to strengthen supervision.The purpose of supervision is not to suppress the stock market, but to protect the interests of small and medium investors. There is a relatively good phenomenon: our fund accounts have reached 110 million.Moreover, many of your guests told me that you are willing to buy funds.In other words, you are confident that the China Securities Regulatory Commission will have strong supervision over funds.However, when we talked about the operation of the Beijing-Shanghai high-speed railway, we gained a deeper understanding: the main body of the stock market is small and medium investors, and we need all small and medium investors to participate. Audience: Hello, Professor Lang.Since 2007, my country's stock market has risen from more than 1,000 points to more than 6,000 points. This phenomenon rarely occurs in the world. What do you think? Lang Xianping: In 2007, the Shanghai Composite Index, according to what you said, reached a maximum of 6124 points.Dear guests and viewers in front of the TV, you should pay attention to one thing. Before 6124 points, the stock price trend of our stock market cannot be separated from one factor, which is the "beastial impulse" mentioned by the great economist Keynes. The 6124 point is a replica of the CNPC story I just told.Climbing up and consolidating, as a result of such an analysis, you will find that after the stock market rose to 6124 points, a similar phenomenon occurred in PetroChina.After November 2007, whether it was the Hong Kong stock market or the mainland A-share market, a problem occurred that we didn’t pay much attention to, but it was a huge problem: everyone’s mentality towards the entire stock market had undergone a major change. This kind of "beastly impulse", everyone is even more irrational.Since then, the entire stock market has entered a period of hesitation, and investors have also entered a period of thinking.Do you have any other questions? Audience: We all know that the rise of China's stock market from its lowest point in September 2005 to its highest point in 2007 happened against the background of the appreciation of the RMB and the continuous growth of the Chinese economy.Japan went through the same thing in the late 1980s.What do you think is the difference between the Chinese stock market and the Japanese stock market?Will China's stock market crash? Lang Xianping: Very good question, you asked very profound.I would like to ask all the guests and audience to pay attention to one thing. While the exchange rate of the yen has risen sharply, Japan's interest rate has been lowered, and Japan's credit has been relaxed.Why?Because the U.S. Treasury Department indulged the yen during the sharp appreciation of the Japanese currency, many Japanese trading companies took the opportunity to become bigger and stronger.Funds are cheap, so Japan's funds are inflated; low interest rates have caused Japan's capital flows to flood.Flooding funds flow into the stock market, causing bubbles in the stock market; entering the property market, creating bubbles in the property market, buying products, and causing inflation.Therefore, the essential factors of Japan's exchange rate rise, stock market bubble, property market bubble and inflation are excess liquidity. How did Japan's bubble burst?To put it simply, the large amount of debts of major commercial companies has made social and financial risks out of control.Because the debt ratio is too high, financial risks have been accumulating. At a certain stage, the entire economic bubble in Japanese society will burst if there is any disturbance in the world.The reason for this collapse in Japan is excess liquidity.This is different from China, where the appreciation of the RMB exchange rate is due to the substantial accumulation of foreign exchange.So, does China have a liquidity problem?Of course there is, but China's liquidity problems are not the main cause of the stock market bubble.For example, pig farmers don't want to raise piglets anymore, and use the money from raising pigs to speculate in stocks and real estate, so some operators transfer the money out to form so-called virtual funds and enter the stock market and property market, causing inflation.The reasons for our inflation are different from those in Japan.Raising interest rates and tightening credit can solve Japan's problems, but it cannot solve China's problems.Why?The practice of raising interest rates and tightening credit is a further blow to the deteriorating investment and business environment. This is the reason why my country's macro-control has not been able to effectively contain the bubble in recent years. Audience: Just now you talked about the through-train issue of the Hong Kong stock market.I thought of the price of A shares.Now that the price of A shares is higher than that of H shares, will the price of mainland A shares drop as the mainland market continues to open up? Lang Xianping: Many of our original media or many people in China believed that Hong Kong stock prices would rise sharply, which would eventually equalize the prices of both parties.Now it seems that the opposite is true. According to the current stock market trend, many of our stocks have fallen to 20% of the highest price. Audience: Hello, Professor Lang, I would like to ask you who or which interest group has been the biggest beneficiary in the bull market in the past two or three years?Will it fall to a lower level in the future?Rogers said that everyone is still optimistic about China's overall economic situation.So, do you think that individuals and retail investors can re-enter this market when the market reaches several thousand points? Lang Xianping: This question is very specific. Fortunately, you didn't ask me which stocks to buy.Moreover, after the launch of our QHI, we have not seen any significant actions by foreign capital, but this action is not without.Taking Hong Kong stocks as an example, the trend of Hong Kong stocks is closely related to the actions of international speculators. In 1997, Hong Kong's assets were overvalued, and there were stock market bubbles and property market bubbles.So, how do international speculators sweep Hong Kong people's money?That is to short sell the Hong Kong dollar, forcing interest rates to rise and causing the stock market to plummet. In 1997, it was different from today. As long as there is a bubble in Hong Kong's assets and stock market, there will basically be international institutional investors who will speak ill of the Hong Kong dollar.International speculators do this to force Hong Kong to raise the Hong Kong dollar interest rate, thereby hitting the stock market and making a fortune for themselves.Now, there is no bubble in Hong Kong's property market.A large amount of money has been transferred from the mainland to Hong Kong.Please note that there are many foreign institutional investors in Hong Kong. They say that the Hong Kong dollar will appreciate in order to make Hong Kong stocks rise and make money by driving up Hong Kong stocks. Today, we use several materials to take stock of the stock market trend in 2007. Number 1: Our Shanghai Composite Index has risen to 6124 points. Number 2: Our government stopped the through train for Hong Kong stocks. As a result, the Hang Seng Index of Hong Kong stocks fell sharply by 1526 points that day. Figure 3: The number of fund accounts in China has reached 110 million. Number four: PetroChina, 601857, which brings painful memories to our millions of shareholders. Number five: The cost of the Beijing-Shanghai high-speed railway is 220 billion. Thank you, all guests, and thank you to the audience in front of the TV for watching this program.See you next time.