The news of the defeat of the Entente armies of Britain, France, and the United States on the Western Front soon spread throughout the world through the airwaves, and public opinion in various countries was in an uproar, and many people in various countries believed that Germany and Austria were only afraid of the possibility of turning the tables, after all, at this time, the Entente lost one million people, and the strength of the troops on the Western Front was not superior to the German army.

It's over, it's over! In today's situation, once the British, French and American armies cannot gain a foothold in France, first of all, France will be completely defeated, because the French army has all returned to France this time, the troops of the colonies in the open sea have all been withdrawn back, and the British mainland army has been almost all sent to France, and the British mainland has very few troops. Then they will no longer be able to land in France, and the only one who can compete with Germany is Huaguo.

After the news of the great defeat of the British, French, and American armies reached New York and Shanghai in China, the New York stock market and the Shanghai stock market fell sharply one after another, and the stocks of the British, French, and American companies listed on these two stock markets kept falling, and in just three days, most of the stocks of the British, French, and American companies turned into waste paper, and people even used them to wipe their buttocks too hard.

The biggest loss this time was the US army, with a loss of 700,000 people, of which 400,000 were killed in battle, 300,000 were captured, and a small half of the 300,000 who escaped were injured and sick in the process of fleeing. Many people committed suicide by falling from tall buildings by dropping stocks from the rooftops that would become waste paper.

Affected by the defeat of this campaign. The New York stock market was ravaged by a Category 12 typhoon, and the entire U.S. economy fell sharply. Banks had to tighten monetary policy, many factories, mines, and enterprises were forced to close down due to poor capital turnover, and more factories failed to receive orders and closed down, resulting in a large number of workers losing their jobs and a depression in the market.

At the beginning, the impact on the stock market in Shanghai was much lighter, after all, there were not many European and American companies listed in China, and the defeat of the Entente on the Western Front was a matter for Britain, France and the United States, but the Chinese expeditionary force in Europe did not lose. The stock market of local Chinese companies is relatively stable, but with the extension of time, the stock market drought of local Chinese companies has also begun to be affected, and then like a chain reaction, the sharp decline in the stocks of European and American companies soon swept the entire stock market.

The entire stock market was affected, which was a major matter related to the national economy, and departments such as the commercial sector and the Securities Regulatory Commission quickly collected complete information and reported it to the Cabinet and the Presidential Office.

Premier Song Shijie personally met with Xiao Zhenlei with the report, and after listening to Song Shijie's report, Xiao Zhenlei asked: "What do you think about the cabinet and what are you going to do?" ”

Song Shijie said: "This stock market crash was caused by the war disrespect on the Western Front. It has little to do with China, but after all, China is a member of the Entente, and many European countries are listed on the Shanghai Stock Exchange, after the stocks of these European and American companies fell sharply. It also affected the local listed stock market in our country, and in just a few days, it swept the entire stock market, which has never happened since the establishment of our new government. At present, our relevant departments are actively preparing for the bailout, and I would like to hear the president's opinion. I don't know what instructions the Great President has? ”。

Xiao Zhenlei smoked a cigarette and pondered for a few minutes and instructed: "It has been five years since we founded the country, and these five years. We have washed away the shame of the sick man of East Asia, broken free from the mountains that pressed on us, whether politically or economically, we have made unprecedented brilliant achievements, and in foreign wars, our army has defeated one strong enemy after another! We must not let such a good situation be lost, and we must preserve the current economic results at all costs, and immediately let the government intervene, on the one hand, to implement administrative intervention, and on the other hand, to mobilize a large amount of funds to prepare for the rescue of the market. In terms of administrative intervention, the China Securities Regulatory Commission should immediately introduce policies to strengthen the supervision and control of the stock market, for example, the stock price fluctuations of each stock in the stock market must be limited to a range every day, and there must be a limit for the stock to rise to a certain extent on the same day, and if it falls, there must be a limit for falling to a certain extent, and the stock price of any stock cannot be allowed to fall into waste paper within a day, nor can the stock price of any stock rise to an unimaginable height within a day. Why? Because our country and Western countries do not use it after all, the stock market of European and American countries has been established for a long time, and they already have a way to deal with various stock price fluctuations, and the economic foundation of European and American countries is strong, our economic foundation is weak, European countries do not need to carry out administrative intervention now, let the market automatically adjust, but our country is not good, China's economic market does not have such a strong self-regulation ability, the government should do macroeconomic regulation and control, can not let the market be in a state of turmoil for a long time, This has a great impact on our economic development, and we must immediately bail out the market, and the cabinet should have already reserved a certain amount of funds to deal with market fluctuations that may occur at any time, right? Now there is no need to hesitate, act immediately, if the funds are not enough, you can ask the financial department and the national bank for help, first pull up the stock prices of some upstream enterprises controlled by the state, as long as the stock prices of some upstream enterprises on the stock market are pulled up, the stock prices of the middle and lower reaches of listed companies will rise, you go back and deploy immediately, let the government intervene as soon as possible, I will not keep you! ”

Song Shijie immediately stood up and said, "Yes, I'll go back and notify all departments to cooperate with each other and intervene immediately!" ”

In the afternoon of the same day, the spokesman of the Chinese Cabinet held a press conference to announce the government's formal intervention in the rescue of the market, the cabinet spokesman said at the press conference that the government has prepared enough funds, and is fully confident that the stock market will recover in the shortest possible time. The system stipulates that the trading price of a stock in a trading day shall not increase by more than 10% compared to the closing price of the previous trading day. The trading price of the stock in a trading day shall not fall by more than 10% compared to the closing price of the previous trading day, and the order that exceeds the decline limit is invalid and is a falling limit.

Once this system is introduced, there is no longer any stock in one day fell into waste paper, as a result, the government's funds to save the market have also been greatly reduced, except for a few predators on the stock market, the vast majority of them are small stock retail investors, the government spent money to save the market, the stock market of some upstream enterprises is slightly too high, shareholders have found out, have begun to follow up.

The introduction of the price limit system has both advantages and disadvantages, the China Securities Regulatory Commission not only explained the role of the policy at the press conference, it has several roles: first, the exchange, members and customers of the daily risk control to create the necessary conditions, the price limit locks in the customers and members of each trading day may add the maximum floating profit and loss and closing profit and loss, which provides an objective and accurate basis for the exchange and members to set the initial margin level and maintenance margin level. As a result, the margin concealment system for futures trading can be effectively implemented.

Second, the system can effectively slow down and suppress the impact of emergencies and excessive speculation on futures prices, give the market a certain amount of time to fully resolve the impact of these factors on the market, prevent prices from rising and plummeting, and maintain normal market order.

Third, the system can enable futures prices to operate on a more rational track, so that the futures market can better play the function of price discovery.

Fourth, when there are abnormal phenomena such as excessive speculation and market manipulation, adjusting the price limit range often becomes an important means for the exchange to control risks.

However, after the introduction of the system, there have been many drawbacks: first, it distorts the trend of stock prices; Second, it creates obstacles for shareholders to operate; Third, it facilitates the manipulation of stock prices by market makers. The price limit system not only increases the difficulty of shareholders' operation, but also provides convenience for large funds to manipulate stock prices. It uses its information advantages, capital advantages and runway advantages to make charts and make graphics to trick stockholders, or be deeply trapped, or cut meat cheaply.

Stockholders quickly discovered the benefits of the price limit and the drawbacks it brings, but on the whole, the benefits still outweigh the disadvantages, which makes investors more cautious when investing in the future.

Huaguo's securities market was quickly brought under control, and the market began to pick up slowly, with orders received again from some factories that were about to close down, and workers who had been resting at home for half a month were notified to go back to work.

The economic situation in China has been controlled, but it is not so easy in the United States, the market in the United States is extremely depressed, there is no precedent for the United States to intervene in the stock market, and the stock market in the United States has a basically perfect system, even if the government wants to intervene, it is impossible, and can only allow the market to adjust freely, but in the past six months, the United States has lost more than one million people before and after the European battlefield, which is not a small number.

Such heavy casualties caused many Americans to march in the streets, and the Americans demanded that the government withdraw its troops and stop the war with Germany, on the grounds that the affairs of the European continent were the affairs of the Europeans, and that the Americans had nothing to do with them, and that the United States did not have to participate in European affairs. But since the war has started, where is it so easy to withdraw if you want to? Since they have already entered the war, they must fight to the end, but fortunately, the United States is the dominant player on the North American continent, and the Germans will weigh one or two even if they want to fight North America. (To be continued......)