It's really incredible, U.S. stocks have risen again, and after a new all-time high, it has risen for seven consecutive years, awesome. Let me show you the trend of the Dow Jones index of U.S. stocks, the slow bull market in the past few decades is really envious, jealous and hateful. What is envious and jealous is the happiness of American stockholders, they don't have to think about things, they don't have to operate, they make money every day, and their stock market wealth continues to reach new highs. What I hate is our A shares, which have fallen for three days in a row, there is really no new low, only lower, and the wealth of shareholders is ruthlessly harvested and ruthlessly evaporated. What is the reason for this?
First, the nature of the stock markets in China and the United States is different. The U.S. stock market is an important part of a resident's wealth. Therefore, any president who comes to power attaches great importance to the maintenance of U.S. stocks, and still listens to the voice of Wall Street, and any policy move will take into account the direction of U.S. stocks. The essence of our A-share is to position itself as a service tool for the real economy. How to serve the real economy is to provide a steady stream of financing and facilitate the financing of major shareholders. Therefore, the Chinese and American stock markets are for the sake of shareholders' wealth, and the other is for the financing of major shareholders. The essential difference between the two means that all the stock market rules and systems are fundamentally different. So why is it that at a time when A-shares are constantly hitting new lows and are so sluggish, and investors are constantly calling for the suspension of IPOs, it is still only a phased tightening of IPOs, and the pace of new listings is still continuing. Herein lies the reason.
Second, the U.S. economy has strong economic growth, while our economy is under great pressure. According to public data, the GDP of the United States in the third quarter reached an astonishing 5.2%, and this was achieved against the background of the Federal Reserve raising interest rates 11 times in a row, and the risk-free rate reached 5.25%. This shows how resilient the U.S. economy is. Our GDP growth rate in the third quarter was only 4.9%, and this growth rate is still achieved on the basis of continuous stimulation, the implementation of active fiscal policies, continuous interest rate cuts, and large-scale release of additional currency. Therefore, a clear comparison of the actual economic conditions of the two countries shows that the US economy is still very strong. Especially with the Fed's interest rate cut next year, the probability of a soft landing for the U.S. economy is quite high. And the two major thunders on our current head, real estate and local debt, still cannot be solved in the short term. The stock market is a barometer of the economy, which means that the trend of A-shares can only keep falling. U.S. equities continued to move higher.
Third, international geopolitical tensions are deepening. At present, the Russia-Ukraine war is still ongoing, and the Palestinian-Israeli conflict is also in full swing. Moreover, the United States has deeply believed that the essence of China and the United States is competition. This means that all actions of China and the United States are fighting but not breaking. This will inevitably affect the direction of the funds. This year, how many foreign investors have been running away, such as BlackRock, the world's largest asset management company, Norway's sovereign wealth fund, Vanguard Capital, etc.
So there are so three essential differences here, and it is really difficult for A-shares to get up!