God-level Trader of Rebirth

Chapter 465 Keynesianism

"This is a high probability event, just go ahead and do it without having too many worries."

Chen Weidong nodded slightly and confirmed his point of view again.

Economy is economy, finance is finance, and the two cannot be confused.

But in the financial field, no one is more confident than him about the future trend of China's economy.

As a "passer".

He is very clear that due to the impact of the subprime mortgage crisis, domestic foreign trade exports will plummet starting in the second half of the year.

"Exports", one of the three carriages, encounters resistance and will inevitably drag down the economic data for the whole year.

This is what the country does not want to see.

Therefore, in order to maintain the economic growth rate for many years, it is very reasonable for policymakers to launch a series of monetary policies to stabilize the economy and finance at this important juncture of the dollar's weakness and the internationalization of the renminbi.

The total scale of these policies will reach about [-] trillion yuan, so they are collectively called the "four trillion plan."

Through the four trillion plan, we will increase government spending, increase employment, consumption, and accelerate internal circulation to avoid an economic downturn.

The theoretical basis of this plan is Keynesianism.

The core purpose is to let the government run a money printing press, print money, and then invest in the construction of railways, highways, and other infrastructure.

Through these large-scale construction projects, the development of machinery, steel, construction and other industries is stimulated.

With the development of these industries, social demand will be greatly expanded and the original decline will be overcome.

However, economic theories emerging in any era have their own limitations.

We cannot demand that what we do now will be correct in the future.

At least for now, there is no better solution to the economic downturn than the "four trillion plan".

So he reminded Chen Jie by the way, hoping that he would pay attention to the manufacturing sector as much as possible and help the manufacturing industry recover.

After all, this is the best period of transformation for the manufacturing industry. Only by promoting the influx of capital into the manufacturing industry can we effectively promote the technological upgrading of the entire industry.

Chen Weidong talked a lot and suddenly felt a little tired.

They came back from Europe, took a ten-hour flight, and socialized for most of the day after landing. They still haven't had a good rest until now.

The main reason why I stay up late is to overcome the jet lag.

Otherwise, the feeling of being sleepy and unable to sleep would be even more torturous.

"Awei, it's getting late. You should rest first. We will discuss it when we have time." Seeing Chen Weidong's sleepy appearance, Chen Jie glanced at the time on his watch again, although there were still many things in his heart. Confused, but it’s hard to continue asking questions.

It was already [-]:[-] in the morning, and it would be dawn in half an hour, but he was still in high spirits.

I believe there are many people like him who stayed up all night today.

So, he warned the two of them several times to have a good rest, and then left the hotel leisurely.

However, after he left, Chen Weidong did not turn off the lights and rest immediately.

Lin Zeju was still sitting on the sofa, with no intention of moving at all.

At this time, outside the floor-to-ceiling window, looking far into the distance, the sky was slightly lit up, glowing with a misty white fish belly.He was silent for a while, and finally asked: "Awei, according to your guess, which industry will benefit the most next?"

When Chen Weidong heard this, he touched his chin, and an intriguing smile appeared on his face.

"Aren't you asking knowingly?"

April 24, [-].

In the morning, nine fifteen.

Affected by multiple favorable factors such as the reduction of stamp duty and restrictions on shareholding reduction, the Shanghai and Shenzhen stock markets experienced an unprecedented "blowout" just as they entered the collective bidding stage.

The Shanghai Composite Index opened 8.25% higher.

The Shenzhen Component Index opened 8.72% higher.

More than [-] listed companies have reached their daily limit.

After the market opened, large selling orders appeared one after another for China Petroleum, Industrial and Commercial Bank of China and other heavyweight stocks, causing the index to have a correction of nearly 5%, and the daily limit of many stocks was also opened.

14:00 noon.

Central Huijin issued a statement saying:
In order to ensure the state’s controlling position in key state-owned financial institutions such as ICBC, China Construction Bank and China Construction Bank, support the steady operation and development of key state-owned financial institutions, and stabilize the stock prices of state-owned commercial banks, Central Huijin will independently purchase ICBC, China Construction Bank and other key state-owned financial institutions in the secondary market. Construction of the Third Bank's stocks and relevant market operations will begin from now on.

Once the news is released.

The two city indexes surged again.

The Shanghai Stock Index surged 304.7 points, or 9.29%, with a trading volume of 2460.49 billion, a new high since the "5.30" in [-].

The Shenzhen Component Index surged 1130.60 points, or 9.59%, with a trading volume of 1170.8 billion, also hitting a new high in the past ten months.

until closing.

There are a total of 1586 stocks in the two cities, and almost all of them hit the daily limit that day, which is a unique miracle in the 18 years since the establishment of A-shares.

While everyone was celebrating, the theory of "financial power" proposed by Chen Jie at the meeting was also spread by people in the industry, and soon set off a heated discussion in the TV media and the Internet.

Some well-known financial columns also followed current events and invited a number of economists during prime time to provide in-depth comments on this topic.

Chen Jie himself said optimistically when being interviewed by many reporters: "If everyone is confident, then this is the bottom of A-shares."

His words were quoted by the Securities Times and published in the upper left corner of the newspaper in the most eye-catching position.

At the same time, it also added fire to the desperate rebound of A-shares.

Many investors who have stayed away from the market due to the deterioration of the market environment have also begun to consider whether to believe in A-shares again and re-enter the market.

In the following two weeks, as various good news continued to come out, signs of stabilization in the market became more and more obvious.

Just when the market generally believed that the market was brewing a new round of upward trend.

Across the ocean.

Lehman Brothers, a century-old financial family—the fourth largest investment bank in the United States—suddenly reported that it was about to go bankrupt.

This small ripple caused the global financial market, which had finally calmed down, to once again set off a huge wave! (End of chapter)

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