There are 150 million shareholders in the two cities, and only more than 5 million people meet the entry threshold of the SGX, which can be said to be rare.

However, such a large million, even if it is 5 million people, can theoretically support the super large liquidity of 5 trillion yuan, and even if there are 2 million people who open accounts on the SGX, they can fully support it.

What's more, in addition to shareholders, there are also basic people, and the number of basic people in China is several times that of shareholders, not to mention that there are more than 300 million basic people.

With Fang Hong's current influence and appeal, the passive index fund investment varieties such as on-exchange ETFs and over-the-counter ETF feeder funds will definitely be highly sought after by the public, thus bringing abundant liquidity to SGX.

There are also some active public and private equity funds on the SGX, some institutions that want to hug the lap of Qunxing Capital, etc., which can be said to have no worries about liquidity and financing ability at all.

……

In the next few days, Fang Hong stopped paying attention to the A-share market for the time being, but set his sights on the foreign exchange market and cared about another important matter.

On Wednesday, August 5, Luo Qingan also happened to find him because of Fang Hong's concern.

At about 16 o'clock on Wednesday afternoon, the two met.

At this moment, Luo Qingan handed a document to Fang Hong and said: "The decision of the Bank to further improve the central parity quotation of the RMB exchange rate against the US dollar and enhance its marketization and benchmark has been determined to be announced to the public on the 11th of this month. ”

Fang Hong read the material roughly and then pretended to be surprised and said, "This ...... Isn't it too sudden? When the market is in shock, the exchange rate reform is suddenly implemented? ”

The 811 exchange rate reform has finally come.

Another important thing that Fang Hong paid attention to during this period was this matter, judging from Luo Qingan's statement, Yang Bank did not admit that this was an exchange rate reform, but improved the central price quotation of the RMB exchange rate against the US dollar.

In other words, after the implementation of this measure, the central mother no longer guided the formulation of the central parity of the RMB exchange rate, but handed over the pricing power to the interbank foreign exchange market, and the supply and demand of the market determined the pricing of the RMB exchange rate.

According to Mundell's impossible triangle theory, the free flow of capital, the independence of monetary policy, and the fixed exchange rate cannot be possessed at the same time, and one of them must be abandoned.

The exchange rate reform measures mainly include two measures: first, the positive policy of maintaining the stability of the RMB against the US dollar has been revoked, and the exchange rate has been adjusted with reference to a basket of currencies; The second is to increase the range of exchange rate fluctuations, that is, to allow the exchange rate to fluctuate freely within a certain range.

In other words, between the free flow of capital, the independence of monetary policy, and the fixation of the exchange rate, exchange rate fixation has been abandoned.

Seeing his surprised expression, Luo Qingan immediately added, "What do you think about this?" ”

Hearing this, Fang Hong wanted to say: It's all settled, what else can I think? With the eyes, of course.

However, Fang Hong also understands that this kind of major change came to tell himself about a week in advance, the hidden meaning is that your position should be stabilized, knowing that your Qunxing Capital is very good at making money through the game of the foreign exchange market, you can't amplify volatility here in order to make money, it is best to help if necessary.

For any institution, whether it is good news or bad news, as long as you can know the news in advance, it is a good thing, and you can make a targeted layout in advance and get huge benefits from it, which is nothing more than bad news and good news.

Knowing the news in advance and ambushing in advance can make money.

But obviously, Fang Honghe was informed of this matter early, and he didn't want him to make money.

However, since he was asked what his opinion was, Fang Hong couldn't say nothing, so he said: "My opinion, on the whole, must agree, to promote the internationalization of the RMB, you can't always anchor the dollar." ”

Speaking of this, Fang Hong immediately changed his words, he looked at Luo Qingan and said bluntly: "It's just that the timing of the launch is debatable, the stock market panicked and plummeted last month, and now it has finally stabilized. ”

Fang Hong looked at the materials in his hand, paused for a moment and said: "Secondly, this blitzkrieg operation method is a bit radical, and there are still many import and export enterprises in the public that may not be able to accept a one-time devaluation, especially in the current time window, if the market is moderately depreciated, the effect will be much better; In addition, communication with the market should be maintained, if the communication is insufficient, it will also lead to the negative effect being amplified and causing panic in the market. ”

"The Federal Reserve has been raising interest rates for three quarters, and has not raised interest rates until now, other countries will communicate with the market before the reform, and the communication with the market is still not enough, of course, the bank must be worried that after the communication, the market will be crazy to buy foreign exchange, which is also understandable, the reform always has to pay some costs, but the cost of early communication should be less than this suddenly to the market a huge shock."

Luo Qingan nodded silently and didn't say anything, but he also heard what Fang Hong meant, Fang Hong agreed with the general direction of this matter, but he had a different view on the specific implementation methods.

After a while, Fang Hong continued: "Another is that the current exchange rate formation mechanism is relatively prone to depreciation and appreciation. In the face of a strong US dollar, the basket of currencies can certainly alleviate the depreciation pressure of the RMB against the US dollar, but in the face of other shocks, the exchange rate of the RMB against the US dollar and the RMB CFETF basket of currencies will increase the depreciation pressure on each other. In the face of the uncleared foreign exchange market, the RMB CFETS basket currency may fall into the dilemma of being easy to depreciate and difficult to rise. ”

"The last point is that the management of market expectations is also debatable, and it is difficult for people to form correct market expectations in this exchange rate reform, and the management of expectations should be the basic responsibility of Yangxing."

Speaking of this, Fang Hong changed his words again and added, smiling: "Of course, I can understand the difficulties of the Yang Xing, sometimes if the general direction of the exchange rate is too clear, the market is easy to rise or fall wildly, mainland investors are easy to follow suit, if the expectation management is not in place, once the herd effect rises, there may be systemic risks." ”

At the end, Fang Hong sighed and said: "As soon as the exchange rate reform comes out, plus the marketization of interest rates is also being carried out simultaneously, and the economic environment at home and abroad is also in the adjustment period, I think many banking institutions, enterprises, including the public will be confused, to be honest, I am also quite confused now, I don't know if the exchange rate is the key?" Or is it based on interest rates? Proactive expectation management is perhaps the best way to go. ”

Luo Qingan saw that Fang Hong said that he had finished expounding his views, and the two then chatted a few more words and ended the interview.

Lao Luo is quite relaxed, after all, he plays the role of a microphone in it, bringing the words and reporting Fang Hong's opinion to complete the task, as for other matters have nothing to do with him, naturally there is no need to worry about it.

…… (End of chapter)