Today, the most attention-grabbing event is still the central bank's press conference, with people from all walks of life hoping to find benefits for their own industries in this conference.

The Shanghai Stock Index has surged by 5%, and the initial effects of the US interest rate cut are becoming apparent.

After this round of significant growth, it is estimated that no news media will force the issue of Japan's "lost three decades" onto China's economy anymore, right?

In addition to the favorable policies for the real estate industry, there are also unexpected policies.

The release of these policies represents a huge change in the focus of the central bank's work in the future.

Does this transformation mean that the reservoir of the renminbi will change in the future?

The direct entry of 2.4 trillion yuan into the stock market is within expectations for the aforementioned economic stimulus policies.

After all, after the Federal Reserve's interest rate cut, our country's monetary policy space will be larger.

On the one hand, the pressure of RMB appreciation will force us to cut interest rates and reserve requirements as soon as possible.

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On the other hand, the domestic economy faces great pressure during the process of the Federal Reserve's interest rate hikes.

So, all the policies at today's central bank press conference were expected, but after the meeting, many people realized that this is the central bank encouraging the development of China's stock market.

Firstly, for example, economist Hong Hao directly stated: "Start with 500 billion, you can have another 500 billion, and you can have a third 500 billion."

To put it more bluntly, the central bank is urging you to buy stocks.

For this interpretation, the official statement is more accurate: The People's Bank of China has created a structural monetary policy tool for the first time to support the capital market.

One of them is the securities, funds, and insurance companies swap facility, which supports qualified securities, funds, and insurance companies to use their own bonds, stock ETFs, and constituent stocks of the CSI 300 as collateral to exchange for high-liquidity assets such as government bonds and central bank bills from the central bank.

This policy will greatly increase the capital acquisition and stock increase of related institutions.

The funds obtained by institutions through this tool can only be used to invest in the stock market.

Everyone must pay attention to the final statement, which is equivalent to 1.5 trillion yuan of funds that are specifically and only used for investment in the stock market.

Secondly, support for listed companies to increase loans, guiding commercial banks to provide loan funds to listed companies and major shareholders, with a public fund support ratio of 100% and an interest rate of only 2.25%.

The first batch of quotas is 300 billion yuan, and if the policy is well utilized, 900 billion yuan is also possible.

The total of these two funds is 2.4 trillion yuan, which can directly enter the stock market through loans.

For financial institutions, stock ETFs, and CSI 300 stocks, direct pledge to leverage and buy stocks.

As soon as this policy came out, people immediately proposed ideas, such as some listed companies in the A-share market now have a dividend yield of 4-5%.

Borrowing at an interest rate of 2.25% to repurchase shares, you can arbitrage a 2-2.5% interest difference through the company's dividends in a year.

If you are the boss of a listed company, what would you choose?

Do you still remember the bull market of leveraged financing in 2015?

At that time, it was social capital that leveraged and created a very urgent short-term leveraged bull market, which ended with the adjustment of exchange rates and a large outflow of capital.

Now, the main body of leverage has changed, and listed companies and financial institutions have become the main body of leverage.

Will it trigger the next bull market in A-shares?

Referring to the experience of the US stock market's ten-year bull market, there is no secret to the rise of the stock market, which is nothing more than creating money and buying stocks.

However, there is a problem here.

In addition to the Federal Reserve's unlimited quantitative easing that has been supplying funds to the market, how can funds be directed to the direction you want them to go?

This question may give us an answer by reviewing the history of the rise of the US stock market.

After the burst of the US internet bubble in 2000, the NASDAQ index entered a ten-year bear market, but during these ten years, the Fed's money printing has never stopped.

The essence of this is that the Fed has accurately put money into the US real estate market through its regulatory policies.

In 2003, the US government introduced a "Dream Down Payment Act" to provide mortgage insurance subsidies for farming income families, reducing the threshold for homebuyers.

When dreams and down payments appear in the name of an act at the same time, the Fed once again created a loose monetary environment by lowering interest rates.

So, people who are constantly looking for hope and dreams have abandoned the dream of the internet and rushed into the US real estate market.

Since then, the US has entered a prosperous cycle of real estate until the subprime mortgage crisis occurred in 2008, and the US real estate dream was shattered.

In these years, the NASDAQ index has been relatively stagnant, and it has not been rising as others have said, but has been rising very difficultly due to the lack of funds from the real estate market.

Finally, it gave up all the gains under the subprime mortgage crisis.

Subsequently, after 2009, then-Federal Reserve Chairman Bernanke saved the US from the brink of depression with QE and zero interest rates.

Bernanke made the Fed and the US government guarantee the US stock market, and then stimulated credit and activated the economy with low interest rates and money supply.

For US state-owned enterprises, the cost of bond financing is unprecedentedly low.

Obtaining cheap funds through bond issuance and repurchasing stocks has become a very tempting choice.

Doing this has two benefits for companies: as a result, the scale of US corporate debt began to rise rapidly.

At the end of 2009, the overall circulation scale of US corporate bonds was less than 6 trillion, and by 2023, it had reached 10.9 trillion US dollars.

The scale of corporate bonds has nearly doubled.

Many companies, although their profits have stagnated, have become an important source of wealth creation by issuing bonds, financing, repurchasing stocks, and increasing EPS to push up stock prices.

Knowing the history of the US stock market, let's look back at the various policies introduced by the three major financial giants this time.

Are they very targeted?

Is it because real estate has become a thing of the past, and residents' leverage cannot be added, and then various methods are used to add corporate leverage?

So, why is our central bank so concerned about the capital market now?

Is it just to promote a bull market in the capital market?

In preparation for the internationalization of the renminbi again.

According to a report by the Wall Street Journal on September 21: Saudi Arabia and China's financial markets are deepening their cooperation.

Saudi Arabia is going to issue the first stock ETF invested in Hong Kong, China, and this fund has been approved by the Saudi Capital Market Authority.

From now on, Saudi Arabia can directly invest in Chinese enterprises with the renminbi earned from selling crude oil, first in Chinese companies in Hong Kong stocks, and then gradually into A-shares.

Is all this very familiar?

When oil was bound to the US dollar, the US dollars earned by Saudi Arabia were mainly used to invest in the US stock market and buy US Treasury bonds.

In other words, Saudi capital is also a backbone force in the ten-year bull market of US stocks.

For the global financial situation, it is now in the process of the old order gradually collapsing and the new order is still being established.

The international status of the renminbi has been significantly improved in the past two years.

If the market share of the renminbi wants to expand again in the future, it must have a place for foreign capital to invest conveniently, whether it is venture capital or risk-free investment.

Otherwise, for overseas capital, holding the renminbi can only depreciate, which is not as secure and cost-effective as hoarding gold.

Only by establishing investment channels for the renminbi and obtaining good positive feedback for investing in renminbi assets is the key to the problem.

So at this time, the stock market has become the best place to accommodate overseas renminbi investment.

In other words, the real estate market can no longer serve as the latest reservoir of money.

Although many policies favorable to the real estate market have been introduced today.

But compared with directly targeting the stock market with 1.5 trillion yuan, it is still a small matter compared to a big one.

Because at this stage, 1 trillion yuan can no longer continue to stimulate the rise of housing prices, but 1.5 trillion yuan entering the stock market can make A-shares have a good profit effect and gold absorption capacity.