The way Chinese people make money has changed, and five new cycle signals are being sent.

The way Chinese people make money has changed, and five new cycle signals are being sent.
Original BWC Chinese Network 2018-01-11 19:04:04
Now, many people find that money is harder to earn than before. In fact, it is a logical change in making money. The way to make money has changed. Now it has entered a higher level of “capital economy” – nothing more than three channels, namely, selling Resources, resource allocation, and capital.

This is partly confirmed by Forbes’ “White Paper on 2018 China’s Emerging Middle Class Wealth” published today (January 11). The white paper says that the new middle class is the main beneficiary of China’s economic development. This emerging middle class is young. The accumulation of wealth through intellectual capital is an important player in the upgrading of the new consumer economy.

The way Chinese people make money has changed, and five new cycle signals are being sent.

Image source FT

As the most important investment trend of China’s new middle class, it is directly related to policy and monetary volume. At present, the growth rate of money supply (M2) announced by the People’s Bank of China (that is, the speed of printing money) has increased year-on-year in recent months. Both are around 9%, 2.8 percentage points lower than the same period of the previous year. This means that the strength of controlling the leverage of the financial industry is continuing and the money will become more expensive (interest rate). Under this jungle law, the original mindset of making money will exist for the time being, but as a rational investor, you should give up the illusion.

The BWC Chinese Network Financial Watch team believes that under the background of the current global liquidity feast, it is entering the eve of a new profit cycle, or there are five new signals.

The way Chinese people make money has changed, and five new cycle signals are being sent.

Image source drum blog

The first signal is: Now that China’s way of creating wealth has reached the era of “printing stocks”
Some senior investors who have contact with BWC Chinese Network have told us that China’s profitable winds have entered a new stage of “printing stocks to get rich” from the “printing era”. If there are any dividends in China that have not been discovered, then The equity of a startup with investment potential is the most important untapped wealth. The data released by Forbes in the 2017 Global Science and Technology 100 Rich List also confirms this phenomenon. The world’s top 100 technology richest assets totaled over US$1 trillion for the first time, the youngest is only 27 years old, and China’s technology richest people have the fastest growth rate. , accounting for a quarter of the total number of rich.

The way Chinese people make money has changed, and five new cycle signals are being sent.

Image source CNN

The second signal is: If the urban agglomeration represents the current Chinese economy, and the “Chinese village” represents the future of the Chinese economy.
In the next 30 years, the miracle of China’s economic wealth will start in the countryside. Since the reform of commercial housing in 1998, many rich people who have been converted into dividends due to land and housing have been born, thanks to the stimulation of productivity by land marketization. It will now benefit from the capital dividend generated after the financialization of the land. After the capitalization of the land, it was realized overnight through financial means, and the land that was not worth the money ushered in the spring of soaring prices. In the next 30 years, the house must be used for living, but please don’t ignore the land-related economic trends, which may become China’s latest land-related dividend distribution. At the moment, many capitals are being deployed in China’s rural market. Transportation, infrastructure, gardening, health care, sanitation, pension, education, retail, food and integrated services will all emerge in the future of rural China.

The way Chinese people make money has changed, and five new cycle signals are being sent.

Huaxi Village is known as “the first village in the world”. In 2012, the total income of Huaxi Village has reached 52.45 billion yuan.

The third signal is: China has entered a higher level of credit economy
The uncertainty of the US dollar will increase the global capital’s large-scale and large-scale, and induce global asset prices to enter a painful cycle. At this time, if the higher your credit accumulation indicates that your borrowing ability is stronger, the more It is possible to cross the monetary tightening cycle to dig into these assets. This is also the most secretive truth of accumulating wealth from ancient times to the present. In fact, China has entered a higher level of credit economy, this time will be initiated by new technologies. Because new technologies generate excess profits, this will also trigger sensitive intellectual capital.

The fourth signal is: Chinese technology companies have exploded to catch up with Western technology.
China has surpassed the United States in the total scale of traditional manufacturing. Now, when large-scale infrastructure has been basically completed, it is now focusing on high-tech, and Chinese people are experiencing the speed of catching up with Western technology, including mobile Internet technologies. , artificial intelligence, robotics, big data, unmanned technology, new consumption, etc.

The way Chinese people make money has changed, and five new cycle signals are being sent.

Picture from The Telegraph

The fifth signal is: “International Master” will return to the rivers and lakes
It seems to be getting clearer and clearer, and another new opportunity to make money is going to the Chinese. This opportunity is an important economic phenomenon that Trump will generate by preferentially protecting its own economy through counter-global trade measures. It is the separation of economic activities on the border. It is obvious that these actions will block the flow of goods. When foreign exchange reserves are insufficient, foreign countries will restrict the import of foreign goods, which will cause imported goods to form a larger price gap both inside and outside, which may hinder the flow of international goods. Domestic goods will also form a larger price gap inside and outside the country to form arbitrage space, thus earning the difference. Because the constant immigration or personnel movement has formed a new Chinese community in many countries, this means that they will form customary consumption needs for their own goods, such as Haitao, legal border trade and so on. (Finish)

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