I have a flow system

Chapter 289 Technology Company-Financial Crisis-China’s Richest Man

Liu Mei stayed in Yuncheng for a week before leaving.

She finally saw the company's final annual report and wanted to say something, but recalling Wu Zhou's positioning of the company and future plans that day, Liu Mei didn't say anything in the end.

Although Runan Capital is also one of the capitals, she is also very clear about the current level of competition between China and the United States.

It used to be globalization, but now the global economy is de-globalization, and it may eventually become a regional economy.

Although China has the most complete industrial chain in the world, it still lacks high-end development in many areas. At the official level, this is also a focus.

If you want money, you have money; if you want policies, you have policies.

In the eyes of many people, the previous Aiying Group was actually a 'manufacturing' enterprise. Many so-called technology companies in China are actually just manufacturing in nature.

The core business of manufacturing companies is the production and sales of physical products, and the previous Aiying Group was mainly engaged in this area.

The core business of technology companies usually involves research and development, innovation, technical services, etc. Last year, the sales entity business of Aiying Group was too dazzling, overshadowing the performance of Aiying Group in "technology".

"Manufacturing companies are facing the traditional physical product market. In China, a fully competitive market, competition will be very fierce, and an inevitable price war is bound to come. And although sales will be very good in 2020, this is a special situation where the world is flooded. The market is very deceptive.”

"Once inflation rises, interest rates will inevitably begin to be raised vigorously. At that time, the market is likely to undergo a polar reversal, from high consumption to cautious consumption. If our Aiying Group's industries continue to maintain the original low-added The value-added manufacturing industry will inevitably face a huge impact.”

"The current investment is to better cope with the upcoming 'market impact' in the future." These were the 'truths' Wu Zhou told Liu Mei at that time.

Liu Mei also didn't expect that Wu Zhou's positioning of the company was actually a 'technology enterprise'. If this was the positioning, then all Wu Zhou's actions of spending a lot of money last year seemed to make sense, and technology enterprises are indeed the richest. Scene', this can be seen by looking at the leading companies in the stock market.

"How long will it take for this future you think to come?" Liu Mei asked back.

"The more water they release, the faster it will come. At the current rate of release, it will only take one or two years at most, and their interest rate hikes should be very aggressive." Wu Zhou knows the specific answer, but he certainly won't Too specific.

In 2020, the United States' massive money printing and rapid growth of national debt led to a surge in money supply. This was to alleviate the economic impact of the virus. After all, if the intensity was not strong at that time, the financial crisis would have come directly, that is, a crisis sooner or later. Crisis issues.

As a large amount of money poured into the market, the supply of funds increased, which led to a decline in market interest rates, promoted the prosperity of the stock market and real estate market, and also increased inflationary pressure.

This is due to the large supply of money leading to rising demand, coupled with factors such as supply chain shortages and rising labor costs, and price levels begin to rise. As inflation increases, tightening policies are needed to control inflation.

And once the United States starts to raise interest rates, the inevitable result will be.

1. The cost of borrowing is rising, both for individuals and companies. The higher the interest rate, the more interest will be paid. For individuals and companies with debts, this is equivalent to a direct increase in their liabilities, thus Increased debt repayment risk.

2. The high interest rate stage will also suppress consumption and investment demand. Bank deposit interest rates are high, so wouldn’t it be more appropriate to deposit money in the bank? In terms of investment, investment is to earn income. At this stage, of course, it is deposited in the bank for 'investment'.

3. The result of raising interest rates will inevitably be a reduction in money supply, which is directly opposite to the interest rate cutting stage. This will make it difficult for companies to obtain financing, which will affect their production and operations, and further directly affect the economy.

Finally, after the United States drastically raises interest rates, it will also make U.S. assets more attractive, attracting international capital to flow into the United States, leading to capital outflows from other countries, and exacerbating the instability of the international financial market.

In short, as the world currency, the U.S. dollar will bear the inflationary pressure of interest rate cuts globally. However, after a drastic increase in interest rates, it will lead to increased debt burdens, falling asset prices, reduced money supply, increased risk of debt defaults, and international capital flows. , the risk is greater abroad

This is also the direct cause of the financial crisis triggered by 'every' sharp interest rate hike in the United States.

After waiting for the high-quality assets of other countries to depreciate sharply due to the "financial crisis", the United States will cut interest rates again. Funds will pour into these "bankrupt" markets and use their own cheaply printed banknotes to directly "buy the bottom" of these high-quality assets. In this process of raising and lowering interest rates, excess profits are earned.

As for the US dollar itself, because it is integrated into these high-quality assets, it will also make them 'valuable'.

In the current wave, the high-quality asset that the United States wants to 'buy the dip' most is undoubtedly China.

Of course, the national level also knows this. In order to prevent some "blind" business leaders from crazy expansion of production capacity at this stage, they have even implemented "limiting power and production capacity".

"Your business acumen has always been extremely keen. I don't know what the future will bring, but according to 'history', what you said is very likely. Last year's unusually prosperous market was a bit like the turning point of global market prosperity and decline. "These capital investors with big money actually have many "market analysis and research" personnel. It can be said that they are all talents at the top of the market. The serious investors have some talents who have truly experienced the "cycle". .

Liu Mei just didn't expect Wu Zhou to notice this, but as long as he noticed it, the more risk awareness he had, the greater the possibility of surviving the crisis.

The products of "technology companies" have higher added value and lower market competition, which can make it easier for companies to survive in the face of future financial crises.

That being said, it would be unwise for Wu Zhou to suddenly drive away those 'owners' and pay huge amounts of cash at this stage.

She was also curious, where did Wu Zhou's money come from?

But even though she was making insinuations, Wu Zhou still didn't say anything.

So in the following week, Liu Mei wanted to use her eyes to see where the money came from.

But within a week, those investors who left gradually received the cash for the 'share' repurchase.

But after all these people got the money, Liu Mei still didn't find out where Wu Zhou got the money.

'If Wu Zhou had planned this long ago and he had started to raise the money, then that would be fine. But if it was a spur-of-the-moment idea, he could have raised 2500 billion in one go.'

Liu Mei found that she could not understand Wu Zhou, or she had never understood him from beginning to end.

With a little regret, Liu Mei finally left. She also needed to report the whole incident to her 'superior'.

At the same time, some mysterious being found out some details about the internal affairs of Aiying Group, and with their cooperation, major capitals gradually disappeared from the list of shareholders of Aiying Group.

"The management is withdrawing, and some big bosses say they are not optimistic about the future of Aiying Group!"

"With hundreds of billions of buybacks, why is Aiying Group valued at one trillion?"

"Aiying Group's shares have changed significantly, and Wu Zhou's shareholding has increased again."

"With a trillion-dollar valuation, Wu Zhou becomes the youngest richest man in China."

(End of this chapter)