Epic perspective: Trump's policy to make China stock great again, abbreviated as MCPA. Just look at the data; in these 100 days, all his tariff policies have led to a 17% increase in the Hang Seng Index, a 30% increase in the Hang Seng Tech Index, while U.S. stocks have been declining, with the Dow Jones evaporating trillions.
How did he improve the Chinese stock market? There are several reasons. First, tariffs are an extremely foolish policy. The major seven sister companies in the U.S. along with consumer stocks have been severely impacted. For example, the cancellation of the tax exemption for cross-border e-commerce directly caused a loss in market value for giants like Apple and Google, resulting in a $2.5 trillion loss for technology companies alone. Walmart and Costco also rarely saw declines because 60% of their products are exported from China, and now they can't even negotiate for price reductions.
The second reason is that the valuation of the Chinese stock market has become prominent. During the worst times, the Hang Seng Index had a single-digit price-to-earnings ratio, around seven, while the S&P 500 was at twenty times. Even the analysts at Huashang couldn't stand it, downgrading the U.S. from 'overweight' to 'neutral' while upgrading China's rating to 'overweight'.
The third important reason is the emergence of DPC, which has shown the world that China can achieve from 1 to 100 in non-AI fields as well. Today, Siberia just proposed to completely ban DPC, which is simply to sell more of its Open AI.
The final reason is that China's policies have consistently focused on maintaining stability. After yesterday's market close, when everyone questioned the trading volume, the central bank announced it would cut the reserve requirement ratio and interest rates. Today, the stock market responded by rising to 3,400 points, a new high for the year, with a comprehensive explosion in the financial sector, and over 4,400 stocks, including consumer stocks, hitting the limit-up.
Now, simple trade barriers cannot block the flow of global capital. Constantly shouting about winning will only scare capital away.
