The Chinese government pulled away all the core personnel of these state-owned financial enterprises and set up a military base for a large-scale, two-week-long campaign to operate in the capital market.
The purpose is to maintain secrecy; not a single word can be leaked to the outside world.
The turmoil in China's and even the world's capital markets has led to speculation about the specific reasons behind it.
Because it involves such a wide range of issues, the companies directly affected are these overseas-listed Chinese companies.
China's capital is shrinking, and shrinking at an incredibly rapid pace.
As for the A-shares market, it is not as volatile as overseas capital markets because only social security funds, medical insurance funds, and some specialized industry investment funds are contracting here.
Because the A-shares market is essentially a "meat stewed in the pot" (meaning the money stays within China), it's extremely difficult for capital to go overseas, especially in the last decade.
The use of foreign exchange and overseas investment are subject to extremely strict regulations.
Underground banks in coastal areas have been cracked down on time and again in recent years, all in an effort to lock up funds within the country.
Therefore, only some social security and medical insurance funds in China that cannot be easily manipulated are adjusting their stock holdings; other funds have not actually been affected much.
Even so, the semiconductor sector of A-shares has directly entered a period of hardship.
Semiconductor stocks, which had previously soared due to the concept of domestic substitution, have been plummeting almost every day, with declines even more dramatic than those of Chinese internet companies listed in the US.
After all, many chip concept stocks, although more than a decade has passed since 2018 and they have made great progress, cannot support their current valuations given the extremely shrinking demand for chips in the future.
Over the past two weeks, the stocks most affected have been chip stocks and Chinese concept stocks.
Therefore, people in the financial industry are speculating that it is because of significant adjustments in Chinese policy, and some well-informed capital is starting to rush to invest.
China's capital market, as well as Chinese companies listed overseas, are extremely vulnerable to policy influences.
Faced with this sudden change, the market is speculating.
People dared not buy, they only dared to sell.
Why has China suddenly made such a big move recently?
They are selling off almost all of their overseas assets, and at the same time, they are also selling off our debt.
It's normal for China to sell off US Treasury bonds; it has been doing similar things for the past decade.
However, such a large sell-off is very unusual.
"Yes, many of China's mines in Africa, which had finally stabilized and were ready to be developed, have all been shut down."
Whether looking at their actions in the capital market, their overseas asset management, or the overseas operations of Chinese state-owned enterprises, it appears to be a sign of comprehensive contraction.
"Is China planning to take action against the eastern islands?"
"It shouldn't be. At present, China's actions are limited to the economic field, and no large-scale military mobilization has been detected."
"Have our spies in China not sent back any messages?"
"The incident happened too suddenly; all of us moles in China's financial sector were taken away."
They haven't sent any news back yet.
The mole, or traitor, was a fictional character created by John Lee Carrey in his 1974 novel *Tinker Tailor Soldier Spy*, and its metaphorical nature led to its widespread use.
"Let's wait and see. It seems our old adversary is taking this very seriously, completely blocking out key information."
However, we need the intelligence agencies to act quickly; in this situation, every day earlier is better than none.
"There is a theory that China has achieved a breakthrough in some key technology, which is why it has taken such a big step."
This crucial technology could cause turmoil throughout the entire economic sector.
However, this claim is rather unconvincing; a breakthrough in a single technology could not possibly elicit such a strong reaction from China.
"Get all of China's spies moving, combine all the information, and make the most accurate judgment possible."
The reason why America has never regarded China as a competitor is that even after China's GDP surpassed Japan to become the world's second largest, America's main target of attack remained Russia.
This is not only due to the influence of the World Island theory on American decision-makers, but also, and very importantly, due to vested interests.
The capitalists that Russia cracked down on back then were ostensibly bureaucratic capitalists after the end of the USSR, but in reality, many of them were actually European and American capitalists.
After that wave ended, Western countries, especially the Americans, actually had very little interest in Russia.
China is different. When China was still weak, capital from developed countries was flowing into China continuously, to the point that they wanted to decouple because the interests of both sides were too intertwined.
This is completely different from attacking Russia.
Therefore, interests are also a very important reason.
In addition to the reallocation of state-owned capital, China also has an important task in studying and assessing the impact of virtual reality technology on the real estate market, and how to mitigate the effects of a complete collapse of the real estate sector.
The collapse of the real estate market seems inevitable, and China has already dragged it out long enough.
However, we need to mitigate this impact.
For example, if a house that was previously worth two million is now only worth one million, but the buyer still has a loan principal of one and a half million to repay, then the buyer will not be willing to continue paying for this negative asset.
This is a case that has actually happened many times in China.
It could lead to a large number of bad debts for banks, or even cause the collapse of the entire financial system.
The decline in real estate values in third- and fourth-tier cities has forced local governments to implement increasingly stringent measures to curb second-hand housing transactions.
In one instance, a scandal broke out in a certain area where the government required real estate agents to "embellish" listed prices.
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