Technology company, I will become the light of China!

Chapter 510: Capital Market Divergence, Longxing Capital Prepares to Swing the Sword

It's three o'clock in the afternoon.

The Longguo stock market was closed.

Due to the tremendous power of the "Cloud Piercing Arrow", international capital has completely changed its view of Dragon Country's military strength and has rushed into the market to buy at the bottom.

You know, the previous few countries' test launches of intercontinental missiles all failed, only Longguo succeeded, and it was in the launch silo on the deck of a warship. Now no country in the world dares to say that it is safer than Longguo.

A range of 1.2 kilometers, Mach 25, and the ability to carry multiple nuclear warheads - just putting these pieces of information together is enough to make you excited.

An intercontinental missile with a speed of Mach 25 is almost impossible to intercept.

This means that as long as Longguo wants, it can drag the whole world to see the King of Hell.

If Russia's Dead Hand system is theoretical nuclear strike coverage, then Dragon Country's Dongfeng Express is a practical nuclear coverage.

Between theoretical nuclear coverage and practical nuclear coverage, even a fool knows which one should not be messed with.

After confirming that Longguo was "absolutely safe", not only the old aristocratic capital in the West, even the American Angsa capital began to come to Longguo's stock market to look for opportunities.

The direct intervention of international capital has caused the Dragon Country stock market index to set a new record.

The Jinlong Technology Index rose by 17%, with Longxing Group rising by 140%, Kunpeng Company rising by 89%, Xinjiang Technology and ByteDance rising by 104% and 91% respectively. Other technology stocks were also driven up, with the smallest increase being 2%. However, due to the suspected insider trading and financial fraud of several technology companies, the index fell by 99.99% in one line, pulling down the overall market's gains.

The Hang Seng Index and the Weighted Index increased by 15% and 14% respectively. It can be said that the Dragon Country's stock market is now thriving and booming.

The crazy buying spree of international funds also brings risks, that is, a large number of junk stocks also rise following the trend.

Anyone who has experienced a bull market knows that at the beginning all stocks are rising.

When the price reaches a certain height, institutions will sell all their chips and let retail investors take over. The last retail investors to enter may face a loss of 50% or even higher.

The first phase of the bull market is over. If funds recognize this market, they will enter the second phase, which is to look for valuable stocks.

Take the U.S. stock market for example. After the Internet bubble burst in 2000, the stock market plummeted by 80% in three years, causing countless retail investors to lose their fortunes and their families to be separated. However, financial institutions and international capital still recognized the U.S. stock market.

When the "Seven Sisters of US Stocks" came onto the historical stage, US stocks entered the second stage. All junk stocks were rejected, and all retail investors and institutions unanimously speculated on leading technology stocks.

Although the US stock market experienced the subprime mortgage crisis and its stock price plummeted again, it only took one year for the US stock market to complete the adjustment and then continued to rise.

This is the value bull market and also the second stage of the long bull market.

At this time, the village chief of the Securities Regulatory Commission, Xiao Gang, stared at the market index and muttered to himself: "In eight trading days, the market index is about to double. This is not a good rhythm."

He underestimated the money-making ability of Longxing Group, Kunpeng Company and Jiangyu Technology. At this moment, he realized that he could no longer allow the capital market to continue to grow wildly, and he must guide market funds to gather towards concept leading stocks.

Judging from history, US stocks have provided the secret of a bull market that has lasted for more than a decade.

With the homework ready to copy, it was impossible for Xiao Gang not to understand. He immediately picked up the receiver of the internal phone on the desk and contacted his secretary, saying, "Notify everyone to hold a seminar on the financial market."

"Okay village chief."

The call was hung up and the secretary issued an urgent notice.

Not only Xiao Gang realized it, but the village heads of the Hong Kong Securities Regulatory Commission and the Formosa Securities Regulatory Commission also realized that market funds were too crazy and far beyond their control, and they had to cool down the market.

On the one hand, it can prevent the birth of "monster stocks", and on the other hand, it can guide value investment and allow the market to embark on a long bull trend.

In addition to the Securities Regulatory Commissions in the three places, the State Administration of Foreign Exchange of Longguo also held an emergency seminar in response to the soaring exchange rate of the Longguo currency.

Director Zhao Ge sat in the main seat and said with a serious look: "The capital market has been too crazy recently. The massive exchange of international capital has caused our Dragon Country currency to surge."

"Ten days ago, the exchange rate of U.S. dollars to Dragon Country Currency was 1 to 6.44. But after only ten days, 1 U.S. dollar can only be exchanged for 6.01 Dragon Country Currency, a drop of 6.68%. This level of drop is rare in history."

After briefly explaining the problem, he also expressed his concerns.

"This level of surge in the Dragon Country currency is not good for export trade, and it affects all aspects of our Dragon Country market, so I'm asking for your opinions. I want to know whether we should control the foreign exchange market. If we do, what is the magnitude of the control?"

When the question was raised, everyone in the meeting room looked at each other, waiting for the first person to take action.

About ten seconds later, a woman sitting in the third seat on the right said:

"I don't think there is a need for foreign exchange control. Let the market choose freely, because international capital has gradually recognized our Longguo market. Even if the exchange rate rises further, we still have obvious investment advantages."

"No no no!"

As soon as the words fell, someone immediately refuted: "Free market choice is often accompanied by capital coercion, which will increase the risk of economic crisis. Moreover, although international capital recognizes our Dragon Country's capital market, don't forget that we also have import trade to take into account."

"That's right. We are a major trading country. If the exchange rate is too high, our exports will have no advantage."

Some people immediately agreed, but others disagreed and refuted.

"I don't think so. Without price advantage, we can compete on quality. If we rashly interfere with the exchange rate, it will only be a waste of money for international capital to buy up our Dragon Country assets at a bargain price!"

"If the product has no price advantage, it doesn't matter how good the quality is. Everyone has different spending power. For example, Pinxixi recently took advantage of its price advantage to catch Taowu.com and Wang Dong's platform off guard."

"If the exchange rate is controlled, wouldn't that be a waste of money for international capital?"

“If we don’t control it, what will happen to foreign trade?”

The argument between the two sides in the conference room became more and more intense, and the tone became more and more serious.

On the one hand, they want to intervene in the exchange rate, thinking that the Dragon Country currency cannot continue to rise like this, otherwise it will easily lead to a sharp drop in overseas orders.

Perhaps many people do not understand why the appreciation of the Dragon Country’s currency would hinder the export of goods, nor do they understand why it is not possible to go the high-end route by improving quality.

In fact, this has to start from the background of globalization.

In December 1991, with the announcement of the dissolution of the former Soviet Union, the US-Soviet Cold War officially ended, and a new world order began to be established around the United States.

After becoming the world's largest country, the United States took the initiative to take the lead in globalized trade, trying to make countries all over the world work for the United States.

Why do you say you work for the United States?
After the United States proposed the concept of globalized trade at that time, it took the initiative to cut off low-end manufacturing, leaving only high-profit industries such as finance, technology, and medical care.

The low-end manufacturing industries that were cut off were transformed into orders that flowed to China, Mexico, and Southeast Asian countries.

To put it bluntly, from the very beginning of its participation in the globalized trade system, Longguo has positioned itself as a "low-end industry OEM."

This is a bit like Rice Company, which has been pursuing the low-end and cheap mobile phone route since its debut.

You said you wanted to go high end?
You said your phone has high configuration?

Excuse me!
The market just doesn’t buy it!

Countries and mobile phone brands are actually similar. If you want to break the stereotype, it won’t happen overnight.

In other people’s impressions, your Longguo products must be cheap, because cheapness has always been your main feature.

……

Listening to the heated debate between the two sides in the conference room, Zhao Ge also understood one thing: whether to protect import and export trade or the domestic capital market is a difficult problem.

Not only Zhao Ge was in trouble, Xiao Gang from the China Securities Regulatory Commission also frowned.

At this time in the meeting room of the Imperial Capital Securities Regulatory Commission, there were also two groups of people holding different opinions.

"It's been falling for seven years, almost eight years, and now it hasn't risen much. It hasn't even reached the top of 2007. How can you rush to create selling pressure so soon? What will investors and foreign investors think?"

"That's right. If we destroy the market confidence that we have worked so hard to build so quickly, we might as well not launch that intercontinental missile!"

"I don't agree with your ideas. If the funds are not guided in a certain direction, it will only create endless hidden dangers in the future!"

"It's more than a hidden danger, it's a catastrophe!"

"Oh, it's not that exaggerated. The US stock market fell by 80% and trillions of dollars of wealth evaporated, but it still recovered. You are just worrying too much. The capital market should be liberalized to let stockholders and institutions choose the bottom themselves!"

"No market has ever been able to rise by strict control. Let me be frank. If we want the Dragon Country stock market to rise steadily, we must let the market choose its own direction."

There were fourteen people in the conference room, and eight of them supported market freedom.

The financial knowledge they learned in the past and their understanding of the market have told them that the financial market must maintain a high degree of freedom.

The reason is very simple, the financial market is a devil's market.

There are many stories of getting rich overnight and losing money overnight.

If strict control is implemented, the financial market will lose its high risk and operability. How can one get rich overnight?
To be honest, the money earned by stock investors who become rich overnight or futures investors does not come out of thin air, but is the bloody chips of other people.

The essence of the capital market is cannibalism, it just depends on who is the cannibal.

"What should I do?"

Xiao Gang was extremely conflicted.

Not only Zhao Ge and Xiao Gang, the Securities Regulatory Commissions in Hong Kong and Taiwan are also facing choices and are also having heated discussions.

After eight consecutive days of increases, various new crises and difficulties have been exposed.

Before a result is reached, the exchange rate is not controlled and the capital market is allowed to grow freely.

The next day.

Thursday.

The Dragon Country stock market continues to soar.

The three major indexes rose by an average of 8%, with Longxing Group taking the lead again with a rise of 60%. More and more investors opened accounts to enter the market, and securities stocks also saw an explosive rise.

On Weibo, TikTok, and Penguin News, stock investors exchanging their experiences with each other can be seen everywhere.

[God of the Stock Market]: "According to this momentum, as long as Longxing Group does not pull back, the market's upward trend will not stop. This level of killer weapon is a financial atomic bomb!"

[Pindao Fahao Mancang]: "I have listed my house on Beike.com, sold my car second-hand, and uploaded my wife's information to Jiayuan.com. My brothers, follow me into the stock market!"

[Xiao Shen doesn’t know how to trade stocks]: “Oh my goodness, my wife has signed up for Jiayuan.com, so I’ll sign her up for If You Are the One and ask her to help me get some money for the bride price. I’m going to go all in!”

[Little Frog]: "Is it such a big deal? What should I do with someone like me who doesn't have a wife? How about you lend me your wife for a while, and at most I'll give you half of the money I make."

Once market sentiment rises, it cannot be stopped. It is easy to manipulate one retail investor, but if there are 100 million retail investors, it is not something that financial institutions can withstand.

When the Dragon Country stock market soared, global assets plummeted. Nasdaq, Dow Jones, S&P, Nikkei, Bombay, German DRX and other well-known global indexes were all falling, and international funds were frantically exchanging cash to invest in Dragon Country.

It is worth mentioning here that if international funds want to invest in the Longguo market, it is impossible to invest directly with their own currency. They need to convert it into Longguo currency first and then invest in the market.

According to the previous monetary system, the party exchanging currency needed to use U.S. dollars as an intermediate currency to exchange for currencies of other countries.

To put it simply, if you want to exchange 1 Dragon Dollars, you first need to exchange your local currency, such as Japanese Yen or British Pounds, into US dollars, and then use US dollars to exchange for Dragon Dollars.

Under this global monetary system, the status of the US dollar can be imagined.

But now, with the global application of the GIANT PANDA bank settlement system, the US dollar is no longer the only intermediate currency for foreign exchange exchange. The Dragon Dollar and the Euro have become emerging intermediate currencies. Other countries' currencies against the US dollar, Dragon Dollar and the Euro can be directly exchanged in the GIANT PANDA bank settlement system.

The three major monetary systems centered around the U.S. dollar, the Chinese yuan, and the euro also represent the three major economies on the planet today.

This is also the reason why the exchange rate of the Dragon Country currency will skyrocket. The US dollar hegemony system has been gradually disintegrated.

Friday.

This is the tenth trading day for the interoperability of Longguo’s stock market data and also the last trading day before the weekend holiday.

There is basically no suspense.

Continue to soar.

Longxing Group continues to take the lead.

Before listing, Longxing Group's subscription winning price was 0.71 yuan. However, in just six trading days, its stock price rose by 17.75 yuan, a 2500% increase. The same batch of listed high-quality technology stocks also rose by a terrifying level of between 600% and 1500%.

Why is the rise so crazy?

Four words.

International funding!

Don’t think that the US bull market is entirely dependent on its own funds.

It engages in globalized trade, and the only industry that remains local is the financial industry.

Who supports the US financial industry?

Still international funds!

Now international capital has found a new value valley, and its security is far greater than that of the United States, which naturally led to the current situation.

With the booming stock market in Dragon Country, various marketing accounts have emerged, hysterically cheering for the bull market.

"The Nine Yang Magic Skill has been broken. There is no time to mourn. Now it is the time when the Ten Yangs are in the sky. The Dragon Country stock market has risen!"

"Goldman Sachs has upgraded the rating of the Dragon Country stock market and predicted that the Golden Dragon Technology Index will likely reach 10000 points by the end of this year. After seven years, a new round of bull market has arrived!"

"It shocked my mother for a whole year. Longxing Group has risen for six consecutive trading days, with an increase of 2500%, becoming the highest in history!"

"I can't believe it! Global assets are being sold off crazily by international capital. Only China's capital market is on the rise. Will China be the world's financial center in the future?"

With the overwhelming publicity, more and more new investors are opening accounts, wanting to keep up with the times and also hoping to make a fortune.

In just ten trading days, fourteen days had passed, and even the auntie selling vegetables on the roadside no longer asked "Have you eaten?" when she met an acquaintance, but asked how much the stock price had risen.

Under the deep stimulation of everyone investing in stocks and making money, the deflationary economic state has been corrected, and the real estate, automobile and consumer industries have all shown signs of recovery.

Lei Bing, who had been worried that Chen Xing would suffer losses if he took over Country Garden not long ago, suddenly realized that the man had already expected this day.

You thought he was on the first floor and you were on the second floor, but unfortunately he was already on the third floor.

But is this the end?

Do not!
In just a few days, Lei Bing realized that Chen Xing was not on the third layer, but in the atmosphere. People had already predicted this day.

The economic deflationary state has been corrected, the consumer market has been revitalized, and the sluggish real estate market will see another rise.

It’s just that it’s not growing wildly, but growing towards high-quality housing.

As Chen Xing said at the beginning, he wanted to use the Internet of Things and AI technology to create a high-quality smart community, which perfectly fits the attributes of high-quality housing.

"As expected of an entrepreneur, perhaps he has already seen through the economic operation model. It's really not simple." Lei Bing sighed.

If he had been able to foresee what would happen today, he estimated that the debts of Country Garden and Evergrande Group would become popular, with many consortiums wanting to take over and carry out high-quality development.

But a pity.

Chen Xing took the lead.

Evergrande Group has also paid a "deposit" for its debts. If nothing unexpected happens, Longxing Group will have the potential to surpass the global real estate industry and become a well-deserved leader.

Many real estate company CEOs are beating their chests and stamping their feet, saying that if they could see the economic recovery in advance, they would definitely get a piece of land at all costs.

Because the people of Long Country have a characteristic, that is, they love to save money and buy houses.

If a Dragon citizen suddenly becomes rich, like winning 500 million in lottery, his first reaction would definitely not be to use the money to travel around the world, but he would think about what kind of house to buy, and then what kind of car to buy, and then consider other things.

Even if you already have a house, it does not affect the idea of ​​changing houses.

Purchasing land and houses is something that is engraved in the DNA of the Dragon people. Since ancient times, having a house of one's own is considered a complete family.

……

When some people are happy, others are sad.

The sudden rise of Longguo assets and the sudden surge in the exchange rate of Longguo currency caused many foreign exchange traders to lose their positions.

Anyone who has played in the foreign exchange market knows that it often comes with extremely high leverage of ten times, fifty times, or even a hundred times.

If the U.S. dollar rises by 0.1%, on their trading page, that could be a 1%, 5%, or even 10% profit.

This round of surge caused the Dragon Country Currency to surge by 6.68%. If one goes long with a 668-fold leverage, the profit would be %.

1 yuan becomes 6.68 yuan, and 100 million yuan becomes 668 million yuan!
This is the foreign exchange market, also known as the leverage devil market.

While everyone was immersed in the rising trend of Dragon Country's assets, Chen Xing had already set his sights on the island country's capital market.

Dragon Kingdom Deep City.

Longxing Group Bantian Base.

After finishing today's trading, Li Daxiao came to Chen Xing's office and reported the results of the past few days:

"Mr. Chen, I feel the time is almost right. The traders on the island country think we are just like the Wall Street tycoons, and they are treating us as ATMs. They have gradually relaxed their vigilance."

During these few days, he applied his teacher's strategy of crossing the Chishui River four times.

Virtual and real.

Real and empty.

Do you think I want to buy the bottom of the stock market and indirectly control the island country’s high-quality companies?

Sorry, when you are rushing to raise the stock price and collect chips, I will throw all the low-priced chips back to you little bastards.

After several rounds of transactions, the Longxing Group's trading team has made profits of over 10 billion yuan.

Unable to discern their opponent's intentions, the island nation's national team was completely confused, and their ability to pull ahead became smaller and smaller.

The most important thing is that after completing the manufacturing industry, Longxing Group’s operation team moved on to the financial industry, and then to the medical industry.

Even if the island nation’s national team wants to put out the fire, it is impossible for it to buy the entire stock market by itself.

It is for this reason that they have gradually relaxed control and intend to take a wait-and-see approach.

After listening to Li Daxiao's report, Chen Xing said calmly, "Don't worry, I'll give you another week to confuse them and help them pull all the plates. You must make sure that if you don't make a move, it's fine. If you make a move, you must kill them with one strike!"

“Do we have to be so cautious?”

Li Daxiao smiled and teased.

Although it is a good thing to be cautious, he is afraid that his opponent will come to his senses. Now that he is dizzy, he feels that this is the best time.

However, what he didn't know was that Chen Xing had inside information.

Saito Ii of the FSA and senior executives in the island nation's financial sector sensed something was wrong and held an emergency discussion meeting.

After a night of discussion, they decided to deliberately reveal their flaws to see what this trading team from Longguo wanted to do.

If Li Daxiao reveals his intention at this time, they will immediately mobilize foreign exchange reserves to protect local high-quality enterprises.

Because the Asian financial crisis in 1997 has taught them a lesson, they don't want their high-quality assets to be controlled by outsiders again.

But they probably never imagined that someone had already sent the content of the meeting to Chen Xing without changing a word.

"It's always better to be cautious. After all, we only have one chance to swing the sword. If we are discovered, the consequences will be very serious!"

Chen Xing did not tell Li Daxiao the inside story, but he emphasized his tone.

The six words "the consequences are very serious" made Li Daxiao intuitively feel that if he failed this time, he might be ruthlessly fired. He quickly put away his smile and said, "Then let's study it again and try to make it perfect."

"Go."

Chen Xing nodded slightly.

After Li Daxiao left the office and closed the door, he muttered to himself: "This is the key to the comprehensive upgrading of industrialization. We must not let it down."

If patented technology is the shackles wrapped around the body, then the production equipment is the sword of Damocles hanging over the head.

Due to changes in the international situation and the rise of Longguo's new energy vehicle industry, German companies and island companies have begun to restrict equipment exports to Longguo.

Faced with this dilemma, Lei Jun had to restart the industrial chain of Ancient Elephant Kingdom.

If you want to solve the problem of production equipment once and for all, the best way is to transform Japanese-funded enterprises into Dragon-funded enterprises!
(End of this chapter)

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