What is the reason for the recent stock market crash?

The recent stock market crash is really for investors: walking on the road is also hit by bricks, or lying down is also shot. The fundamental reason is that the development trend of the financial industry is likely to bring financial crisis to China in the long run. In order to reverse this trend, the central government artificially created a financial crisis and forced the financial industry to change its development mode. The means to create the financial crisis is to stop providing short-term working capital to the financial industry. The stock market is really on fire at the gate, and the fish in the pool are injured. Explaining this process in detail is very professional. I don't understand many bank terms myself, so I can only say them briefly.

In recent years, China's financial industry has made great progress, but this great development has a poor stimulating effect on the economy. In the first half of this year, the currency grew rapidly, but it reflected the downturn of the real economy. In other words, many bank loans did not enter the industries that needed funds most, and a large amount of funds flowed into wealth management products or trust products, and eventually most of them flowed to the real estate industry and government loan platforms, resulting in the abnormal development of the real estate industry. Even low-cost short-term funds in the interbank lending market can be invested in long-term wealth management products. In other words, money is idling in the financial system. Personally, I have heard that some people inside the bank borrow money from the bank themselves, then put in high-interest wealth management products, and even directly lend usury. In state-supported industries, a large number of small and medium-sized enterprises cannot obtain loans. If this trend is not stopped and accumulated, the industries in urgent need of development will become more and more depressed; Too concentrated in the real estate industry, as long as the real estate shows signs of trouble, it will bring a major crisis to the financial industry.

At the beginning of June, the financial industry continued to lend explosively, and these loans remained idle. However, in the middle of each year, banks need a lot of money. For example, the deposit reserve has been turned over, the financial funds have been transferred, and the state has recently cracked down on the abnormal flow of foreign exchange, and some foreign exchange has to leave the country, which has brought about the demand for funds. Generally speaking, banks have enough funds to pay, but due to the time gap in the use of funds, the funds that may be withdrawn in the short term are not enough. Therefore, there is a short-term capital borrowing market between banks. Banks borrow money from each other to make up the difference temporarily, and then return the money to each other after it is returned. If there was not enough money between banks, the central bank used to lend some money to make up the difference. Because these banks lent too much in early June, they were basically short of money, so no one had any funds. However, this year, the central bank did not lend a penny, which led to a shortage of money and soaring lending rates (I recently borrowed some money at the interest rate of 12% in the bond repurchase market, hahaha, make some stupid money from banks! They used to make money for us all day. The shortage of money caused the financial system to be in urgent need of cash, so the stock market, which was the easiest to cash out, became the hardest hit. Estimate those wealth management products, funds and the like. Selling stocks at no cost to get cash and ease the financial pressure. Didn't you see, the biggest decline in this stock market crash was institutional heavy stocks. Bank stocks with triple P/E ratio are in full swing, hahaha. Don't forget to buy stocks recently, and the organization will give you a free bargain-hunting, haha.

The central bank wants to force banks to reduce the scale of loans, reduce the idling of funds and put loans where the country needs them most through the man-made financial crisis. The so-called killing chickens to show monkeys. However, the profit-seeking nature of capital, even if the loan scale is reduced, is difficult to ensure that funds can really support economic development, even if chickens are not killed, monkeys will continue to be alive and kicking.

Briefly for your reference.