Chapter 525: The United States dominates world finance

"Hong Kong began to export financial services to the mainland when senior finance suffered a severe blow. You should pay attention to this." Chen Mingluo said to the fat man.

"What's the difference?" asked the fat white man, "Anyway, Hong Kong's financial services industry is much more mature than us. It should be nothing wrong with them to guide or guide the development of the financial services industry in the mainland, right?"

Fatty white thinks that since Hong Kong is better than the mainland in this regard, a large number of financial service talents will return to the mainland and drive the development of the mainland's financial service industry. Of course, it can effectively and quickly increase the development speed of the mainland's financial industry, which is beneficial to promoting the economic development of the mainland.

But I don’t know why Chen Mingluo expressed objections to this?

"You are just a typical person who doesn't think about it-" Chen Mingluo said to the fat man. "You don't think about what Hong Kong's financial service industry talents can bring to the mainland? Advanced management experience? Or strong funds? Or a deeper understanding of the economy? Or various means to quickly increase capital value?"

"These should be both." Fatty white nodded and replied.

He became increasingly confused about what Chen Mingluo planned to do. These situations are common. Hong Kong is indeed much better than the mainland in this regard. When it comes to capital operation, the mainland is naturally not as good as Hong Kong, which was a British colony. They can be said to have been doing this for nearly a hundred years. After the liberation, the mainland has always regarded capital as the source of all evil. Until the reform and opening up, it still did not have time to reverse this concept. It was not until recent years that it relaxed the description of capital in the field of public awareness.

In this case, it shouldn’t be a bad thing to let industry experts guide the development of the financial services industry in the mainland?

"Okay, then let's take a look at these aspects one by one. Do Hong Kong people really have more advantages than us?" Chen Mingluo nodded and said.

"Listen attentively." The fat white man saw that Chen Mingluo's analysis was not at all confused, so he felt some expectations. After all, Chen Mingluo is the big winner in the capital market, and he did not make less money after him. He attached great importance to Chen Mingluo's views.

Didn’t the old leader say something that a white cat, a black cat, a good cat is a good cat, and Chen Mingluo is a good cat that can catch a mouse in the capital market, which is convincing.

"Just put the first point, advanced management experience. Do you think that when Hong Kong's financial system is almost collapsed, their management experience is still trustworthy?" Chen Mingluo pointed out incisively, "If this management experience is advanced, how could it be defeated by Soros? Not to mention that Soros and others jointly defeated the attack in Hong Kong and the Mainland this time, we all know that this is just an official position. In fact, it is clear to you and I."

The fat white man nodded and silently remained silent.

In fact, this time, Soros and others' blow to the Hong Kong financial industry was a catastrophe. If Soros was the loser of this war, the loser earned billions of dollars in this battle. If the Hong Kong SAR government was the winner of this war, the winner lost more than 100 billion Hong Kong dollars in this battle, and the losses in the stock market and the real estate market are even more difficult to estimate.

Those who make money are losers, and those who lose money are winners. I really don’t know how this conclusion came about? If this conclusion can be established, then this logic can be considered the unparalleled robber logic.

"Let's talk about the second point, strong funds?" Chen Mingluo continued, seeing the fat white man hesitating, he said to himself, "Now many people think that what is most lacking in China is development funds, so the highest decision-makers have been encouraging the introduction of foreign capital. Local government officials have spared no effort in this regard. The introduction of foreign capital is often regarded as an important criterion for assessing the political achievements of officials. In fact, the consequences of doing so are even more terrible."

His meaning is very clear. Not to mention how much development funds can Hong Kong be exported to the mainland after the financial war, even if they can export some funds to the mainland, it may not necessarily bring benefits to the overall situation.

The mainland's own funds have actually continued a lot. It can be said that there is no shortage of development funds at all. What is lacking is only the correct understanding of these private funds at the highest level.

In fact, some leaders at the highest level have a very negative understanding of private funds. They think more of this is a beast that has not yet been released from the cage. Once it is out of the gate, it will have a great impact on the national economy.

The economic foundation determines the superstructure. Once the private economy suddenly occupies the dominant position of the national economy, what will be the result? That will be an important determinant that leads to the instability of the ruling foundation, which is something that no leader can tolerate.

Therefore, we don’t worry about how much foreign capital is introduced, but the scale of domestic capital needs to be regulated from time to time. This is the reason.

"You are not right. In order to introduce foreign capital, it is actually to introduce advanced management experience and technology." Fatty Bai retorted.

"If you say this, do you believe it yourself?" Chen Mingluo said suddenly, "If you don't say anything else, it was said that it was several major projects to introduce advanced technology. Now, which one of them has achieved its goal?"

The fat man suddenly stopped talking. Think about it carefully. Some of the projects introduced at the beginning are now in the harvest season. Unfortunately, none of them have achieved their goal. Everyone has just become processing plants including foreign capital. The real core technology has not been obtained at all.

It’s like the domestic automobile industry, where everyone is engaged in parts assembly, and the real core technology has not been obtained at all. What I said about sacrificing interests and introducing technology is simply nonsense and stinks.

Of course, just like the domestic abandoning the self-developed large-scale passenger aircraft platform project and instead purchasing McDonald's aircraft, the interests of bureaucratic compradors were entangled in it. Otherwise, it would not be so easy for funds to come in.

"You can't treat leaders as fools. In fact, they are much smarter than you. They know what is the core interest. The core interest is neither the national interest nor the national interest. That is one's own interests, and the interests of one's own family are definitely not the interests of the people." Chen Mingluo said.

Fatty white smiled bitterly when he heard this. He couldn't refute it when talking about it. After all, his small group was also working for his own interests. This time he joined forces with Chen Mingluo to make money in Hong Kong. Isn't it actually a matter of this?

The income calculated in billions of dollars is actually self-evident.

"As for the deep understanding of the economy, there is no need to say more about this." Chen Mingluo pointed out, "Hong Kong's geographical location determines that there is no real economist among them. The cramped environment and narrow space do not have the foundation in this regard. The so-called rich people nowadays are just nouveau riche who make money by speculating on real estate projects. Everyone knows this, that is, they must be supported by official support. In fact, they are just compradors of official interests and cannot be considered real economic figures."

"Okay, OK, the heroes of the world have become so unbearable in your mouth--" Fatty white waved his hand, "It's easy to make tendency mistakes when you stay with you."

"Well, I won't mention this. Let's take a look at the last question and various means to quickly increase capital value." Chen Mingluo nodded and said, "This question is actually what worries me the most."

"Why?" said the fat white man inexplicably. "In any market, financial derivatives are very dynamic and can balance trading risks and expand the proportion of returns. This method has existed for many years, so there should be no problem."

"For the economy, what should be done cannot be done accurately-" Chen Mingluo replied.

The so-called financial derivatives simply refer to some trading methods that use the principle of financial leverage. Although Chen Mingluo has used this kind of thing, he is cautious.

It is precisely because it is too easy to make money and too easy to lose money by using this, Chen Mingluo even is a double-edged sword. While being able to quickly accumulate wealth, it is also easy to cause a fatal blow to the economy.

From a macro perspective, the financial derivatives market has three basic functions.

The first is the resource allocation function. The price discovery mechanism of the financial derivatives market is conducive to the rational allocation of resources in the whole society.

On the one hand, the derivatives market is similar to a perfectly competitive market, and its price is close to the equilibrium price of supply and demand. This price is used to allocate resources and is better than using spot signals to arrange production and consumption in the next period. Therefore, the price formed by the derivatives market often becomes a price in a country, or even around the world.

On the other hand, the price of the financial derivatives market is the expectation of the basic market price, which can reflect the future expected rate of return of the basic market. When the expected rate of return of the basic market is higher than the average rate of return of social funds, social funds will flow to places with high yields.

The second is the function of reducing national risks. National risks include political risks, economic risks, and financial risks.

These three risks are closely linked and have a strong interactive relationship. For example, this Southeast Asian financial crisis firstly arises financial risks, which in turn leads to economic and political risks.

The financial derivatives market plays an important role in reducing national risks. It is first reflected in the derivatives market that can reduce financial risks, improve the efficiency of the financial system, expand the liquidity of the financial system, provide borrowers with ways to enter new markets and ways to avoid risks, and generally reduce financing costs. Whether a country can hedge its foreign exchange reserves, how to avoid foreign debt risks caused by exchange rate changes, etc., will affect the country's economic risks.

Another function is to accommodate social hot money.

The emergence of the financial derivatives market has provided a new investment channel for social hot money, which not only transforms part of the preventive monetary demand into investment monetary demand, but also generates new investment monetary demand, which makes the increasing social hot money have a place to stay under the increasing monetization, marketization, securitization and internationalization of the economy and plays a role in participating in the financial derivatives market.

"But then again, have American financial derivatives really played these roles?" Chen Mingluo asked back, "The junk bonds in the 1980s were glorious for a while, but they did not continue to be glorious."

There is another sentence that Chen Mingluo did not say, that is, the later subprime loans, after the rapid development of the next ten years, finally became the fuse that triggered the global financial crisis. Oil futures and other things, the unreasonable rise in oil prices, should also be related to this.

Because of this, Chen Mingluo believes that the three functions of financial derivatives are just theory and it is really hard to say whether they can play a role. At least he did not see that these tools really play a role in regulation except for seeing some people using these tools to make money.

This is like the warrants created by domestic securities firms later. The only ones who can make money are these securities firms. In other words, the people who set the rules can only sigh and do not enjoy any benefits from it.

Some of the popular financial derivatives nowadays mainly start from the United States, and their main transactions are also in the United Kingdom, the United States and other countries. Chen Mingluo naturally has reason to infer that only these few countries make money, and other countries are extremely likely to lose money.

For example, copper futures, some large Chinese companies also went to play with them, but ended up losing billions of dollars, which were all earned by Britain and the United States.

Because only Americans can make money, Americans must say that this kind of financial derivatives is good. Nowadays, economics and finance mainly control the right to speak. Therefore, many people do things for them according to their ideas, but they still don’t know that they have taken advantage of it. This may not be their original intention, but it seems that many facts are like this.

"That's why I said that letting Hong Kong people export financial service talents to the mainland is actually a stupid act of dragging the mainland into the water." Chen Mingluo asserted to the fat man, "I can almost say with certainty that the problems that will arise in the future are the major companies controlled by the so-called related elites. Let's wait, and then they will cry."

When the fat white man heard this, he felt skeptical. However, after thinking about it carefully, he believed more. What Chen Mingluo said sounded the same thing.
Chapter completed!