The message was sent out early in the morning, but the effect was absolutely sensational.

Countless stock investors are awakened by the rapid ringing of the phone in their sleep, and then they hurriedly turn on their computers or mobile phones and enter any financial website or forum.

At this time, they didn't even need to search for it, all kinds of related news posts had already spread all over the place.

"Breaking news! The country finally stepped in to save the market and lowered the stamp duty!"

"Must-see! The China Securities Regulatory Commission is about to adjust these rules..."

"Surprise! The most stringent new regulations on shareholding reduction in history, when will the second shareholding reform be carried out?"

"Should the IPO be suspended? Chen Jie, the leading public fundraiser, angrily accused the China Securities Regulatory Commission of indiscriminate issuance of new shares and proposed that the issuance must be restarted only if the market price exceeds 5,000 points..."

The overwhelming news made investors dizzy, as if they were in a dream. However, after a short period of digestion, everyone realized that the unprecedented good news had really come! The market, which had fallen for nearly half a year, was finally about to rebound!

When the market opens tomorrow, how will the market behave?

Will there be a daily limit?

If I don’t have a position, is there still a chance to get on the train?

Billions of stock investors, unable to sleep all night, could only suppress their surging emotions, post crazily on the Internet, and engage in heated discussions with other stock investors.

at the same time.

Mandarin Oriental Wangfujing, Baijing.

In a luxurious suite, several people sat around the circular sofa and talked about recent events.

"Awei, I have compiled and submitted feedback to the China Securities Regulatory Commission on the issues you have discussed with me. Do you think they can truly implement them?

Chen Jie, who had just finished the meeting, did not go back to his residence to rest. Instead, he immediately rushed to the hotel where Chen Weidong, Lin Zeju and the others were staying, and recounted what had just been discussed in the meeting.

"of course not."

Chen Weidong shook his head, "Our financial market still has a long way to go before it can achieve true "severe punishments." It is impossible for them to make up their minds to rectify the market chaos just because of your few words.

elephant."

"Even if you do have a certain social status."

"**, no, wouldn't it be in vain?" Chen Jie swore and wanted to throw half of the cigarette in his hand on the ground, but he hesitated and pressed it into the ashtray.

Obviously, he is very dissatisfied with the behavior of the China Securities Regulatory Commission.

"That's not the case. It would be good if they can shout slogans for a while and tighten the pace of IPOs."

Chen Weidong has long been accustomed to this, so he doesn't have much expectations.

Reforming the securities market is no less difficult than purging the Football Association.

Think about the past life, the stock market has been hovering around 3,000 points, and it was a battle to defend 3,000 points almost every year.

The problems faced by A-shares can be counted on two hands.

Even though the majority of stock investors later called for it, and the top management directly intervened and introduced some innocuous policies, in the end, the thunder was loud but the rain was small, and no fundamental improvement was achieved.

This is mainly because reform policies are formulated by industry elites.

And these elites are inextricably linked to those with vested interests, and cannot emotionally separate themselves from their interests, so it is difficult to introduce drastic policies.

"Well, what you said makes me feel a little less confident." Chen Jie sighed depressedly, "I asked representatives from other securities companies, and they all felt that there is still a big bubble in the market at this position."

"If I aggressively enter the market to buy the bottom at this time, will I take over?"

He was a little hesitant.

On the one hand, although the market index has been cut in half, it still has a double increase compared to 998 in 2005.

On the other hand, given his position, he has access to much more information than ordinary investors, so he naturally lacks confidence in the various good news released by regulators.

Ordinary investors, when they see a bit of good news, can rush into the stock market to buy the bottom, but he can't.

He had so much money on hand that it was very troublesome to get in and out.

Where will the stock market go next? Will it hit bottom, rebound, and hit new highs? Or will it rebound and continue downward?

Nobody knows.

This confusion of not being able to control the future made him very insecure.

This has nothing to do with status or height. Even people at the top of the political and financial circles face this problem.

Everyone is trying to cross the river by feeling for stones.

No one is much stronger.

However, there is one exception.

That's Awei.

Seeing that he is still as calm and calm as ever, it means that he probably already has a countermeasure in mind.

Therefore, he believes that Ah Wei will be able to guide him to a new peak this time.

Sure enough, after Chen Weidong thought for a moment, he said with great certainty: "If the position of A shares is the bottom, it is okay."

"First of all, we must understand that the main reason for this stock market crash is the subprime mortgage crisis in the United States."

"The subprime mortgage crisis was formed because American banks extended housing loans to people who lacked the ability to repay and had poor credit status, and ultimately caused massive credit defaults."

"There is a key incentive here, which is excessive asset securitization."

The mortgage loan for a house in the United States is actually a "tripartite agreement" signed by the home buyer, developer, and commercial bank.

For example, if you want to buy a house and don't have enough money, the bank will use the house you want to buy as a mortgage and give you a loan to let you buy it.

Then, the bank can collect your mortgage payment every month, and this collection will last for twenty years.

If you are able to repay the money, of course nothing will happen.

Regarding this "tripartite agreement", our domestic banks will choose to lock it in a drawer or even a safe for fear of losing it."

But the United States is different. Their financial industry is very developed, and the "tripartite agreement" held by the bank can be regarded as an asset in a sense.

Since it is an asset, it has value.

Therefore, this "asset" quickly attracted three people.

One is an investment bank, the second is an insurance company, and the third is an appraisal company.

This chapter is not finished yet, please click on the next page to continue reading the exciting content! These three people have done a very big thing, which is "asset securitization."

American banks do not want to store these funds for twenty years and affect the capital turnover efficiency.

Therefore, when investment banks came, they hit it off immediately and agreed to securitize real estate mortgages.

As a result, the major banks in the United States packaged up all their mortgage business and sold it to Wall Street. Wall Street then redesigned and packaged it and sold it to other investors.

This solves three major problems:

Investors have new products, get high returns, and only need to tolerate a little risk.

These home buyers who take out loans can also enjoy relatively low loan interest rates.

At the same time, the capital turnover efficiency of banks has also improved, and Wall Street can also make money from it. This is a "win-win-win" good thing.

The birth of this "subprime loan market" did have significant effects at the beginning.

From 1994 to 2006, the home ownership rate in the United States increased from 64% to 69%, close to 70%. Many poor people own their own homes, social welfare has been greatly improved, and "home ownership" has almost been realized.

"status.

As a large number of housing loan and mortgage businesses are securitized, financial investment institutions continue to regard it as a bond-type investment product.

However, the subprime mortgage market is still developing and there are still many deep-seated contradictions.

Especially in 2000, the Internet bubble burst in the United States, the IT crisis occurred, and the economy began to slow down.

In order to promote economic growth and employment, George W. Bush had to use real estate as a new economic growth point.

Therefore, in addition to continuously lowering interest rates, the Federal Reserve also actively supports the "housing and housing" policy and provides mortgage loans to low-income home buyers with a leverage of 60 times.

The low interest rate policy has reduced the cost of residents' loans, and people's enthusiasm for purchasing houses through loans has been increasing, stimulating the development of the real estate industry.

Subprime mortgages have become the first choice for home buyers whose credit conditions cannot meet the requirements for preferential loans, creating a booming real estate market.

From 2001 to 2006, the real estate market in the United States quickly boomed due to government support through mortgage loans, and house prices increased by an astonishing 85%.

The booming housing market has made even subprime mortgage securities a hot commodity.

Many financial institutions "package" this very popular financial derivative with secondary securities or even junk securities from other industries and promote them to investment institutions around the world.

As a result, the housing problem in the United States has changed from a local problem to a global problem, and from a regional problem to a national and even global problem.

By 2007, the size of mortgage loans for Americans to purchase houses was already as large as the GDP of the United States.

In view of the irrational rise in housing prices, in order to promote the return of housing prices to rationality, the Federal Reserve began to continuously raise interest rates, causing the American housing market to gradually cool down.

However, the decline in housing prices and the increase in interest rates have increased the pressure on borrowers to repay their loans.

More and more people are unable to repay their loans, and there are more and more defaulters. As a result, banks and other lending institutions are unable to recover funds, and there are more and more bad debts.

As a result, the subprime mortgage crisis began to break out and intensified, gradually spreading to every corner of the financial market related to subprime mortgages.
To be continued...