China'S Investors Are Mostly Out Of The Stock Market.

Recently, there is a popular view in the market that under the current circumstances, Chinese people are the most vulnerable to cash holdings.

Because the current Chinese consumer price index (CPI) is much higher than the one-year deposit rate (and this interest rate is controlled by the central bank, which is the central bank's direct pricing for commercial banks).

For example, China's CPI in June was 1.9%, and the one-year deposit rate was 1.5%.

0.6%.

Negative interest rate refers to the rapid rise of the consumer price index (CPI), which is higher than the bank deposit rate and leads to the negative interest rate of bank deposits.

The negative interest rate under China's control not only means that the people are losing money in the bank deposits, but also a way for the government to pfer the wealth of the creditors to the debtors through monetary policy, and even through the government's way of plundering the wealth of the very scattered bank creditors.

This will not only lead to the weakening of the vast majority of consumption power, but also lead to unfair distribution of social wealth.

Therefore, some people say that in the current situation, cash holders are the most vulnerable, and the gap between the rich and the poor is widening.

Since the money held by residents is becoming increasingly worthless, how to reduce the possible losses caused by this kind of possession? Some people ask for a variety of ways of investment instead of cash.

For example, you can choose to invest in stocks, insurance, dollars, gold and so on.

However, from the current situation, Chinese residents choose to invest in the stock market.

So last year

After the collapse, Chinese investors were all out of the stock market.

According to the latest figures of China registration and settlement center, as of July 15th, only 50 million 729 thousand and 400 of the 108 million 652 thousand and 600 investors of A shares still held stocks, funds and other securities.

Up to 57 million 923 thousand and 200 accounts are currently in empty positions, accounting for up to 53.31%.

By the end of May this year, individual investors accounted for 26.29% of the market value below 10 thousand, at a relatively low level.

That is to say, since last year, Chinese residents have been withdrawing from the stock market, so it is impossible for them to invest in the stock market.

As a matter of fact, if China's stock market can not be recuperated for a long time, the market is completely rectified and the Chinese stock market can be self repaired, the Chinese stock market is almost impossible to get out of the current predicament.

Therefore, under the current circumstances, it is impossible for Chinese residents to abandon the holding of cash and enter the stock market.

In other words, Chinese residents can enter insurance and invest.

As for China's insurance industry, though it has made great progress in recent years, insurance is a rather chaotic market from the beginning of development. Even Chinese residents feel like pyramid schemes for insurance. Under such circumstances, it is also far from reality for Chinese residents to take insurance as an investment tool.

As for entering gold, it is only a small investment, and large-scale entry is equally impossible.

From the first half of the data, we can see that in the face of the negative interest rate of bank deposits, the first countermeasure taken by Chinese residents is to pfer bank deposits into the real estate market to buy housing.

It can be said that in the first half of this year, the growth rate of housing mortgage loans for Chinese residents increased by more than 30%, and the total amount of their mortgage loans accounted for more than 1/3 of the total bank loans.

This also means that in the face of serious negative interest rates and mortgage lending rates to the lowest level, domestic residents in particular have already held a number of housing residents to enter the real estate market.

However, if the residents enter the real estate market investment, if the housing prices rise, of course, this investment is a way to avoid negative interest rate risk; if housing prices do not rise, and even fall, then the housing investment risk of nearly 5 trillion in the first half of this year is unknown.

Experience is always the past. Investment always faces the future.

Therefore, the deposits of Chinese residents enter the housing market, which accommodates huge amounts of capital, but no one can know how high the risk is when the high housing prices enter the market.

However, from this year's booming housing market, many housing investors are seeing the future of their investment and running in this direction.

Similarly, how do we know the future?

Also, from the first half of this year, the scale of social financing increased to 9 trillion and 750 billion yuan in the first half of 2016, 961 billion 800 million yuan more than that of the same period last year.

In June, the broad money (M2) increased by 11.8% compared with the same period last year, while the narrow sense (M1) increased by 24.6% compared with the same period last year, and the scissors gap between the two widened.

The rapid growth of M1 also means that both Chinese residents and enterprises are more willing to hold demand deposits and cash.

Because the rapid growth of M1 is mainly due to the increasing risk of domestic and foreign investment markets since last year's stock market crash. Both enterprises and individual investors have to withdraw from the medium and long-term investment market and hold high liquidity demand deposits for short-term operation. Of course, it is more important because the government has adopted an over stimulation incentive policy to the housing market to reduce the mortgage interest rate and the down payment ratio to the lowest level in history, and encourage more residents to take advantage of this privilege to enter the real estate market. This enables domestic residents to move into the real estate market and move into the real estate market, and enter the hands of real estate developers, so that real estate developers can hold a large number of demand deposits.

In addition, real estate enterprises and residents are like this, as is the case with other enterprises.

In the first half of this year, investment in domestic private enterprises was becoming weaker and weaker. They also preferred to hold cash rather than invest more.

This shows that in the current economic situation, other investment risks are very high. Enterprises and investments are unwilling to increase investment, and are unwilling to increase high-risk investments. Therefore, they prefer to hold cash and demand deposits.

That is to say, under the current high risk of investment in every market, it is probably a good choice for enterprises and Chinese residents to hold current accounts and cash, which is also a kind of helplessness. These are entirely the result of government policies.