In the financial industry, especially in the stock market, many people believe it is a dispensable virtual economy. Therefore, whenever we mention revitalizing the stock market as revitalizing the economy, there will be many opposing voices, including many experts who believe that solely activating the stock market has no effect on the real economy. They think it is better for banks to directly lend to enterprises on a larger scale or for companies to issue bonds for faster financing.
I mentioned this week that we must elevate the importance of revitalizing the stock market to a higher level; all management must recognize that activating the stock market is a prerequisite for China's economic transformation. This is supported by inherent investment logic.
Economic transformation is about developing technological innovation because technological innovation can create new demands and new industrial opportunities. However, entrepreneurial ventures in technology are personalized and mostly involve uncertainties, so indirect financing is not a viable path. Neither state-owned banks nor private banks dare to finance tech companies; banks have their own loan review rules and fear that tech companies will go bankrupt and fail to repay. Therefore, technological innovation requires the development of direct financing, which includes both risk investments in the primary market and direct financing through listings. The reason why risk investments in the primary market dare to invest is that there is a strong secondary market for future listings and realizations. Ultimately, the success of economic transformation still relies on a prosperous stock market for support.
Many experts have significant misunderstandings about the stock market and the financial market. Many believe that financial practitioners earn high salaries without doing anything substantial, which is why experts look down on figures like Buffett and Soros, considering financial industry practitioners as detrimental to the development of the real economy.
They will never understand that the strength of the United States is built on a strong financial market foundation. They will also never understand that the small British Isles once occupied over 30 million square kilometers of land on Earth, and the reason the British Empire was so powerful is that they introduced the stock market from the Netherlands, establishing a strong capital market that provided a continuous flow of funds for the expansion of the British Empire. The United States, as the descendant of Britain, also relied on a strong capital market to become the world's leading power.#BabyMavin合约地址f9c7 Very good, worth holding.#美国大选后涨或跌？ #比特币矿工收入飙升 #11月市场预测 
