My Fintech Empire

The next Tuesday, around 13:50 in the afternoon, Fang Hong was watching the New Securities 50 Index. At this moment, the increase exceeded 2 percentage points. He had completely reversed yesterday's negative line and recovered the 12,000-point mark. There is a strong tendency to set a new historical high.

After the NSE 50 index broke through the 12,000-point mark, it has actually reached Fang Hong's target position, leaving enough room for the inevitable adjustments that will follow.

Just when he was about to issue instructions to his subordinates to suppress the market, Tian Jiayi, who was in the company, sent him a message: "There has just been news from the external market. A so-called insider revealed to the agency that the Magnesium Fed The interest rate hike cycle is about to begin.”

Fang Hong was a little surprised when he heard this, but it was reasonable, and he immediately replied: "The rumors are most likely true. Before raising interest rates, let's do an expectation management for the market. However, at this time, Lao Mei should be in the middle of the night. It’s really painstaking.”

This is an obvious thing. One of the purposes of such news suddenly being released at this time is to cause trouble for the NSE 50 Index. However, Squidward Group did not expect that Fang Hong was planning to let the NSE 50 Index proceed at this moment. Periodic callback.

Just now, I planned to let my subordinates do the work, but now I can skip this step.

After chatting with the beautiful assistant for a few words, I ended the conversation and looked at the trend of the NSE 50 Index again. Sure enough, around 14:05, the NSE 50 Index began to fall rapidly. Apparently the news had spread. At the end of the trading session, it turned directly down and turned green.

Moreover, from the perspective of capital flows, foreign capital is flowing out, and the foreign exchange market has also become significantly more volatile.

After the close, the NSE 50 Index closed down -0.36% at 11,746.26 points, with a turnover of 2.16 trillion. It has remained at the 2 trillion level for three consecutive trading days.

The Federal Reserve was about to start an interest rate hike cycle, and suddenly such a wind blew, which immediately attracted the attention of global capital.

When many people heard this news, they thought it was fake news.

Around this time last year, the Federal Reserve lowered interest rates to zero, and also launched unlimited QE. It has only been a year since it was fully implemented. Is this all or is it going to raise interest rates?

There are also many capital institutions who believe that this matter is by no means a fiction, especially those of the world's top institutions. They have richer and more real-time information channels and are well aware of the difficulties that Beijing Magnesium is currently facing.

In the current environment, it is clear that the big Eastern countries and Amalica are competing for global capital to look east or west.

As for the current situation, global capital is obviously looking more favorably to the East. The income from U.S. dollar assets is continuing to weaken its appeal to funds. The key is that there is a better place on this planet.

Therefore, the U.S. dollar has to raise interest rates to increase the attractiveness of funds, thereby attracting money from all over the world to enter Beizhou Magnesium.

Although it has only been a year since the era of zero interest rates began, and it is definitely not the best time for the US dollar to start an interest rate hike cycle at this time, Ah Mei has too few cards to play now, and the opponents are increasingly playing cards. Come bigger.

Raising interest rates this time will definitely be a last resort, and this is the biggest difference from previous interest rate hike cycles.

…

The next day, Wednesday, February 24th.

Today, the three major stock indexes in the A-share market fell across the board. The group stocks in the two neighboring cities fell sharply. The heavyweight stocks in the SGX market also fluctuated and weakened, and the profit-making effect became worse.

The SGX 50 Index also closed a long negative line today, breaking out of three consecutive negative trends. It fell sharply -2.29% after the market closed at 11,477.56 points, with a turnover of 2.08 trillion. Although the volume continued to shrink, the SGX market has experienced a decline in the last five trading days. The average trading volume per day is maintained at 2 trillion.

"We can let the SGX disclose this year's reform matters to the outside world." Fang Hong thought for a while and said, then looked at Tian Jiayi: "Go and say hello to the SGX."

It was around 17:40 in the afternoon. After hearing this, Tian Jiayi thought for a while and couldn't help but said: "The market is now in an adjustment period, and with the Fed's expected interest rate hike, isn't the timing a bit inappropriate?"

Hearing this, Fang Hong said simply: "There is no right or wrong time. How can the development and reform of the SGX market be affected by the Magnesium Fed? We must face this expectation head-on and digest the negatives together." It’s not a bad thing either.”

Tian Jiayi nodded: "Okay, I know what to do."

…

After three consecutive days of decline and correction, on Thursday, the SGX 50 Index rebounded +1.37% to close at 11,634.76 points. The SGX market maintained a high trading volume of 2 trillion for six consecutive trading days.

After the market closed, at around 15:39 p.m., SGX held a press conference and issued a major announcement, which caused a huge sensation in the capital market.

In order to enhance the investability of the index, based on building a multi-level capital market system, and promoting the incubation and cultivation of national strategic emerging industries, Xincheng Stock Exchange plans to launch the SSE Comprehensive Securities Index, the SSE 500 Index, the SSE 1000 Index and Its index ETFs and industry ETFs solicit opinions from the public.

As soon as this news came out, investors from all walks of life, large and small, exploded!

Obviously, everyone was shocked by this.

Because there was no news before, the SGX suddenly issued a draft opinion. This made everyone unprepared and was caught off guard for a while.

This news immediately became the front page of today's financial news. Various capital institutions immediately began to discuss urgently, and even hundreds of millions of shareholders were discussing it.

With the announcement of this news, some were happy and some were sad.

The small-cap stock holders in the SGX market were undoubtedly excited to see this news. This is definitely good for small and medium-cap stocks. In the current SGX market, the market liquidity allocated to small and medium-cap stocks is much less than that of the super large-cap stocks in the SGX 50 Index. The reason is that there is no index and corresponding ETF representing small and medium-cap stocks, and they can only rely on institutions and large investors.

Small-cap retail investors cannot trade individual stocks because they cannot reach the threshold of the SGX market.

However, the launch of the SGX 500 Index and the SGX 1000 Index in the future, as well as the corresponding index ETFs, including industry ETFs, will bring huge liquidity support to the more than 2,000 small and medium-cap stocks in the SGX market. This is definitely a real benefit.

However, this matter is obviously bad for super large-cap stocks, to put it bluntly, it is bad for the SGX 50 Index.

Because there will be more choices in the future, retail investors in the A-share market will not have to crowd into the New Securities 50 ETF, so funds will inevitably be diverted to the New Securities 500 ETF, the New Securities 1000 ETF and many industry ETFs.

In the future, the daily trading volume of more than 100 billion yuan for a single New Securities 50 ETF will probably become history, and it will be difficult to see such a terrifying volume in the future.

In the future, the daily trading volume of the six New Securities 50 ETFs will drop to less than 100 billion yuan, and 50 to 60 billion yuan at most.

This round of major reforms in the SGX market will only have a short-term negative impact on the New Securities 50 Index. In the long run, the fundamental logic has not changed, but the market has become more and more perfect.

However, this matter is an epic and huge negative impact on the two neighboring cities!

At this moment, the majority of retail investors have not realized this, only a few people have realized this, and the majority of investors are even more unaware.

That group of financial rentiers realized that things were bad. They saw at a glance that the SGX would not allow them to suck blood. This reform is to pull out the tube that they use to suck blood from the SGX.

…