My Fintech Empire

The next day, Qunxing Capital held a press conference to release important information, officially announcing the launch of the Qunxing Employee Welfare Housing Plan, which will invest 4 trillion yuan to build 13.7 million new homes.

Although this news has been circulating on the Internet for several days, it still caused a huge sensation when Qunxing Capital officially announced it.

People from all walks of life felt dizzy when they saw the figure of 4 trillion. You know, the total amount of land transfer fees in 300 cities last year was about 4 trillion. Some business owners couldn't help but swear when they saw the news. Qunxing is really rich. Now the movement is calculated in "trillions".

Qunxing Capital has always been quick in doing things. As long as the internal confirmation is made, it will be implemented according to the established plan.

The project bidding was also announced at the press conference. Enterprises and units in the relevant industrial chain quickly heard the news and took action, such as construction units, construction units, etc., and in fact, they had already taken action.

This is a trillion-level super-large cake, and it is an extremely high-quality engineering business. Because this is Qunxing's order, who doesn't know the credit of this company? There is no need to worry about the arrears of project payment.

In addition, various home appliance and furniture related companies are not idle, and they are also working hard to participate in this bidding competition.

The huge scale of 13.7 million new residential units has been added, all of which must be built according to the configuration of fine decoration and ready to move in. Air conditioners, refrigerators, washing machines are all standard.

Related companies are also doing evaluations, and it is expected that the demand for air conditioner orders will reach 41.5 million units. Last year, the retail sales volume of the domestic air conditioner market was 57.87 million units, equivalent to more than 71% of the total sales volume in the country last year.

The air conditioner is configured according to the standard of one unit in each room, so there is a demand scale of more than 40 million units. Washing machines, refrigerators, televisions and other electrical appliances are configured according to the standard of one unit per household, but they have also reached a huge demand of 13.7 million units each.

It has to be said that there are too many industrial chains associated with a house. The 4 trillion yuan has affected hundreds of industries and hundreds of millions of people.

Why is it so hard to quit buying a house? We can get a glimpse of this from here. It is related to so many industries and so many people's jobs, and its impact on the macro economy is obvious.

Although there is a lot of resistance to this matter, there are actually quite a lot of supporters. There is no doubt that corporate giants such as refrigerators, air conditioners, and washing machines are all supporters, because this is really good for the performance of these giants.

This is an important factor in Fang Hong's decision to acquire land and build new houses, rather than to acquire existing commercial houses. On the one hand, the price is not cost-effective, and on the other hand, these helpers will disappear. Acquiring land to build new houses will bring new performance growth points to the entire upstream and downstream of the industrial chain. Only when they can get a piece of the pie in their respective links will they support and assist.

This is also true for acquiring land. The budget expenditure for acquiring land has reached an astonishing 700 billion yuan, and the resistance from local governments will also be reduced. After all, for the current incumbent, the key is to improve their performance while they are in office. As for the future, of course, they believe in the wisdom of their successors...

Enterprises in the physical manufacturing field can get a piece of the pie from the 4 trillion yuan, so these people are very happy, but there are three groups of people who are very unhappy. One is the intermediary, one is the real estate company, and the other is the bank.

Because this huge pie not only has nothing to do with them, but will also be impacted.

Qunxing invested 4 trillion yuan to build 13.7 million new houses. These houses are completely free of financial attributes. Excluding more than 700 billion yuan in land acquisition expenses, the remaining 3.3 trillion yuan has completely flowed into the real industry, that is, the steel, cement, home appliances, furniture, etc. used to build houses. These are undoubtedly the real economy.

If these houses are not provided by Qunxing for its employees to live in for free, but become commercial housing for value assessment, the location is not bad, and the conservative estimate is greater than the current national average price of 8,500 yuan/square meter. Calculated at a price of 9,000 yuan/square meter, the total value of the public area of ​​1.5 billion square meters can reach 13.5 trillion yuan.

In other words, banks will lose about 13.5 trillion yuan in loan income in the next 30 years, and this is the best loan business.

Because if home buyers buy houses with a 30-year mortgage loan, the interest is almost equal to the house price.

If buyers pay for these houses, the total price of the house and interest will reach 27 trillion yuan.

On one side is 4 trillion yuan, on the other side is 27 trillion yuan, and the 23 trillion yuan in the middle is squeezed out by the stars, so that these houses do not have any financial leverage.

And from the figure of 23 trillion yuan, it can also be seen from the side that the resistance is indeed very large.

…

In the following days, the stock market in the capital market also strengthened, and listed companies in related industrial chains all ushered in an increase, such as several leading companies in the white appliance sector, and the cement sector, etc., which repaired the index dragged down by the decline of the banking sector.

On Monday, May 7, the three major stock indexes of the A-share market all strengthened and ended in the red. The Xinzheng 50 Index broke through the adjustment range with a big positive line and led the three markets, and stood on the 3,800-point integer mark for the first time to set a new historical high.

The SGX 50 Index rose by +2.95% after the market today, reporting 3830.17 points; the Shanghai Composite Index rose by +1.48% to 3136.64 points; the Shenzhen Component Index rose by +1.92% to 10626.51 points. The total turnover of the three major trading markets was 1040.2 billion, of which the SGX market was 618.8 billion.

In May, the SGX 50 Index of this year's A-share market was so strong that it was terrifying in the eyes of many investors. In the first month of the year, under the atmosphere of "big is beautiful, core assets", the Shanghai and SGX markets chased each other.

Looking back now, the Shanghai Composite Index peaked at 3587 points and fell back to 3136 points. Not only did it rise many times but also fell back, and even the annual line red plate could not be maintained. The current annual line fell by more than 5 percentage points.

On the other hand, the SGX 50 Index has been widening the gap with the Shanghai Composite Index after exceeding it in absolute points. In hindsight, every correction is an excellent opportunity to buy at the bottom, and a sharp drop is a golden pit. The annual line has also come out of three consecutive positive lines since the opening of the market in 2016.

The positive line of the SGX 50 Index this year has risen from 2907.91 points to the current 3830.17 points, and the annual line has accumulated a +31.71%. It has not only shown a crushing trend in the A-share market, but also a gap-level leading position in major global capital markets.

Since its historical lowest point of 788.87 points, it has risen by +385% in less than two and a half years. Such an investment return rate is unmatched worldwide.

It is no wonder that global capital will be eager to move after the news of "New Hong Kong Connect" landed. The SGX market is not only large enough, but also has higher returns than the US stock market.

As time goes by, various work arrangements related to the "New Hong Kong Connect" continue to advance smoothly, and many overseas investment institutions are also gearing up. Foreign capital is still flowing into Hong Kong, just waiting to invest in the SGX market after the "New Hong Kong Connect" is officially launched.

……