Chapter 235: An In-depth Analysis of the "Nine Articles of the State" (Part 1): A Groundbreaking Product

Last night, a piece of heavy news swept the screen: the State Council issued the "Nine National Regulations" again after a lapse of ten years.

All major financial media outlets and V-listers of all sizes reprinted the article and cheered.

The focus of attention is mostly on two aspects.

The first aspect: After the release of the "Nine National Policies" in 2004 and 2014, the stock markets ushered in a bull market. So, if the "Nine National Policies" are released again in 2024, will there be another bull market?

The second aspect is that everyone is focused on specific measures such as "strict listing control," "continuous supervision," "quantitative restrictions," and "strengthening delisting efforts."

Few people think about it.

Why do we need to introduce the new "Nine National Policies"?

What is the purpose of issuing the "Nine National Policies"?

What kind of results will the new “Nine Articles” lead to?

At this point, some stockholders may retort: ​​"There's no point in studying this. If you have this time, you might as well watch Douyin."

This is what ignorance is all about.

I can illustrate this with two examples.

First example:

As early as the Central Economic Work Conference at the end of 2016, the policy of "housing for living, not for speculation" was proposed. In the following years, policies have been tightened layer by layer, and "housing for living, not for speculation" has been repeatedly emphasized.

Nowadays, the grass on the graves of real estate companies that do not believe in evil, do not listen to advice, and do not consider policies is already three feet high.

For investors in real estate stocks, a halving is considered the lightest blow, while the worst case scenario is that their investment has been cut in half, and some investors have even had their stocks delisted.

This is the result of not listening to advice and not considering policies.

Second example:

The 2014 "Nine National Policies" proposed "promoting innovation and entrepreneurship" and emphasized "guiding the orderly development of securities and futures Internet businesses."

For this reason, during the bull market of 2014-2015, everyone was crazy about "double innovation" technology and internet stocks. Among them, one of the most popular stocks was Internet brokerages, such as Tonghuashun and Eastmoney.

I believe that stock friends who have read the first 100 chapters of this article should know this history.

This is the benefit of listening to advice and observing policies.

The policies behind the stock market of any country are the biggest driving force. The energy they possess is beyond the imagination of each of us, and the fluctuations they can create are exactly what you and I need to pay attention to.

Now, let’s get back to the topic and talk about why the new “Nine National Policies” were introduced.

This has to be traced back to the Central Financial Work Conference held in October 2023. Old stock friends should all know that I repeatedly emphasized this conference at that time. This is a financial conference held only once every five years.

At this meeting, the idea of ​​building a "financially strong country" was proposed.

That is, the "six strengths" - a strong currency, a strong central bank, strong financial institutions, a strong international financial center, strong financial supervision, and a strong team of financial talents.

Old stock friends should also know that I repeatedly emphasized the content of this speech at that time.

This is a very important context, a very important background, and also an important background for the launch of the new "Nine National Policies".

Let us reread the important contents of these three documents again, and combine them with the current context of the Sino-US dispute and the great changes unseen in a century, and we can draw a conclusion.

That is:

Our currency will become the world's currency in the future.

Our central bank will become the world's central bank in the future.

Our capital market is different from the US capital market.

What is "financial culture with Chinese characteristics"?

(Harmonized)

After reading this, did stock friends suddenly understand?

Does it seem familiar?

Yes, it is a combination of our country’s ancient business culture and some modern financial concepts. This is the “financial culture with Chinese characteristics”.

We can think about this more deeply.

In today's China-US dispute, when my country is gradually decoupling from the US economically, we are building a "financial market with Chinese characteristics."

The height and level of this financial market are directly comparable to Wall Street, and even surpass it.

Surprise or not?

Is it surprising?

Therefore, we must reinterpret the "Nine Articles of the State" based on this background and concept and from a higher perspective.

Article 1: General requirements.

This paragraph is an important guideline that connects the past and the future. Compared with the "Nine National Articles" of 2014, we can see large sections of new wording, which can be said to be completely different and a complete reform.

If we say that the "Nine National Policies" of 2014 were standard and followed the rules.

Then, the "Nine National Policies" of 2024 are like a sharp sword.

This sword, called "financial market with Chinese characteristics", is shown to foreign countries on the one hand and to the domestic market on the other.

We can read two passages:

"Adhere to combining the general laws of the capital market with China's national and market conditions, and uphold the political and people-oriented nature of capital market work."

"We must uphold and strengthen the leadership of the Party, give full play to the Party's political, organizational and institutional advantages, and ensure that the capital market always maintains the correct development direction."

Does it sound like a battle cry?

Moreover, the article also gives a five-year plan, a plan until 2035, and a plan for the middle of this century - "to build a high-quality capital market that matches a financial powerhouse."

By the middle of this century, my country will build a "socialist modern power."

In other words, by then, my country's capital market will at least be on par with Wall Street.

This is a hard requirement with a time limit and cannot be taken lightly.

To sum up, the new "Nine Articles of the State" is a landmark product, and we cannot understand it with old thinking and old ideas.

It will have an extremely profound and far-reaching impact on my country's capital market.

If we do not take it seriously, or even look down on it, some people and some institutions will suffer great losses.

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Fellow stockholders, use your hands to make money and send a free gift of love.

Your support is my motivation to update.