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Why does China need to rescue the stock market now?
Currently, the national fiscal pressure is enormous, local governments are heavily in debt, and ordinary people still have some money in their pockets, so they play a game to divert funds.
The national team holds chips like Huijin and others that bought below 3,000 points; these chips are gradually sold off at high levels, and the profit from the price difference makes up for the fiscal gap.
Essentially, it's about making a profit from the price difference.
Local governments hold some shares of state-owned enterprises, also sold off at high levels, with the proceeds filling the local fiscal gap and continuing urban development.
Basically, it’s about inflating undervalued shares to exchange for real money.
The main beneficiaries are listed companies and retail investors.
Listed companies raise a large amount of money through IPOs from the stock market to support corporate expansion.
Then they sell off at high levels to take cash from investors.
Essentially, it’s about exchanging cheap company shares for real cash.
Retail investors, with their high-level trading skills, keep buying low and selling high to profit from the difference, which is similar to the national team.
There are also exchanges and securities firms earning commissions, and the government earning stamp duty—all winners.
The only losers are retail investors.
Their fate is already sealed—they are cattle and sheep slaughtered by all parties.
In the end, losing money can’t be blamed on the government; it can only be blamed on their own lack of skill. Why can retail investors make huge profits while others suffer?