1.The first case of a shares
Recently, Shandong Weiming biomedical Co., Ltd. (securities code: 002581, hereinafter referred to as "Weiming pharmaceutical") issued the announcement on the purchase of bonds and foreign investment, and repurchased the 100 million yuan corporate bonds issued by its own company in the open market at the price of 80 million yuan. As the "first case" in the A-share market, Weiming pharmaceutical's repurchase of its own bonds at a low price has aroused market concern.
It can be said that Weiming pharmaceutical's bond repurchase at a negative cost can achieve many things at one stroke. On the one hand, repurchase at a price lower than the face value of the bonds is equivalent to a kind of "negative cost financing", which can reduce the pressure on the company's capital expenditure. On the other hand, early repo is convenient to plan the repayment rhythm and avoid a large number of bonds maturing at the same time. In addition, it indirectly shows that the company has abundant cash flow and stable operation, which can enhance the confidence of investors in the secondary market.
2."Red light" keeps on
Interest rates and reserve requirements are being cut all over the world
As a listed company, Weiming medicine can carry out this wave of "Sao Qi" operation by means of "negative cost buy back". I have to say 666! However, for individual investors, it is not so lucky. Because recently, the market has ushered in a wave of monetary easing policy from the United States to China, from reducing interest rates to reducing reserve requirements. For Chinese families and individuals, the RMB in their hands is like orange peel, shrinking in the autumn wind.
Some people even shout: "the era of negative interest rate" is coming! Is that true? The answer is: very likely.
If you don't believe it, please look at all kinds of "bad news" of lowering reserve requirements and interest rates all over the world!
On September 20, the people's Bank of China cut interest rates. The one-year loan prime rate (LPR) is 4.20%, and the LPR over five years is 4.85%. Compared with the previous value, the 1-year LPR decreased by 5 basis points for the second time in a row, and the 5-year LPR was the same as last month.
On September 19, the Federal Reserve cut interest rates. The Federal Reserve announced a 25 basis point cut in interest rates, reducing the target range of the federal funds rate to 1.75% - 2.00%. This is the second time that the Federal Reserve has cut interest rates this year, less than two months after the last one.
On September 16, the people's Bank of China lowered the reserve requirement. A comprehensive reduction of 0.5 percentage point will be made and about 800 billion yuan will be released.
On September 13, the European Central Bank announced that it would cut interest rates and restart QE. The European Central Bank announced a 10 basis point cut in deposit rates to - 0.5%. We will continue to cut interest rates on the basis of negative interest rates.
At the same time, the global monetary easing policy is also in an orderly way. Brazil, Japan, Indonesia, Switzerland, Norway, the United Kingdom, the United Arab Emirates and other countries have also announced the relevant resolutions to reduce the reserve rate / interest rate
3.Form a normal state
"Negative interest rate era" is getting closer
Once upon a time, "negative interest rate" was a strange word to us Chinese. After all, most of the people who got rich first, except for those who swept around like the Wenzhou real estate group or a few who entered the stock market, chose to deposit their money in the bank, and then lay at home to be popular and spicy with interest. For ordinary people, the bank deposit is very safe and the interest rate is very good, so it is often regarded as the first choice of sound investment.
However, a series of changes brought about by the reduction of reserve requirements and interest rates may completely change this situation. Why? First of all, we need to look at lowering the standard. It will release the margin of commercial banks in the central bank, increase the supply of market funds, and the increase of money circulation will cause inflation. In other words, the RMB in everyone's hands will become less and less valuable!
Again, the interest rate cut means that the bank deposit rate will be directly reduced. Now, the demand deposit rate of the four banks is only 0.3%! With the continuous interest rate reduction, I believe that the current interest rate of bank deposits is not far away from 0! Once the zero rate comes, will the negative interest rate be far away?
In fact, negative interest rate refers to the inter-bank market lending rate. It can also be understood as the interest rate for commercial banks to deposit their surplus reserves in the central bank, not the interest rate for residents to deposit in commercial banks. In terms of the current deposit interest rate, there is still a certain amount of interest and it won’t lose money. However, according to the current trend, it is difficult to say if interest rates continue to be cut in the future. Looking around the world, with the economic downturn, China is likely to follow the footsteps of Europe and the United States and enter the era of negative interest rates.
4.Waiting for a rich man to become a loser
No, you can do something.
If even deposits have negative interest rates, there is no doubt that it is inadvisable to continue to deposit funds in banks as a means of investment, and we can only seek other investment channels. At present, China's real estate market is flat under the setting of "real estate, housing and non speculation". Even if a large amount of money enters the real estate market, it will be difficult for it to achieve its former glory.
For P2P, which once became popular, has entered the second half of the "mice passing the street, everyone shouting" and no one can withstand the three consecutive attacks such as "overdue, thunder, boss running the road". After all, you want high interest rates, but some P2P may be concerned about your principal.
What about China's stock market? In fact, it's not much better than the real estate market and P2P. The A-share market has always been criticized for its short-term speculation and taking all of the market makers. In addition, with the rapid development of insider information, the valuation can not reflect the basic value of the company. People without two brushes dare not easily set foot, otherwise they will easily become the "little leek" to be cut.
For family and individual investors, is there any other financial management method besides the limited investment channels mentioned above? We believe that the standard & Poor's quadrant can be used for asset allocation and insurance can be used as a tool for family asset allocation.
Standard & Poor's family assets quadrant
The figure divides the family assets into four quadrants, forming four accounts. The assets proportion of the four accounts is different, the purpose is different and the nature is different. For example, the annual income of the family is 1 million, the money to be spent is 10W, the life insurance is 20W, the money for the living is 30W, and the money with the appreciation of the principal is 40W.
This picture is more suitable for most middle-class families in China, and it is relatively reasonable to buy insurance with 20% of the money. From the perspective of asset preservation and anti inflation, the standard & Poor's family asset quadrant chart is used to make asset arrangement, which can ensure that a family's overall finance can be very stable in the case of extreme risks.
5.Haijun's point of view
We believe that the reduction of reserve rate and interest rate is closely related to each of us. The negative interest rate and inflation brought by the interest rate reduction will directly affect the wealth of every family and individual. In this regard, we should enhance risk awareness and make early arrangements.
The era of negative interest rate is coming, which is becoming a consensus. If you just deposit money in the bank, it is likely to become poorer and poorer. For all investors, it's time to think carefully about how to optimize the portfolio.
For middle-class families, using standard & Poor's Quadrant for insurance financing, especially the comprehensive allocation of domestic and foreign insurance, can hedge exchange rate and ensure cash flow.
For high net worth individuals, we can consider using overseas insurance, overseas trust and other means to put wealth inheritance on the agenda. The confidentiality, asset security and investment protection of the scheme need the assistance of professionals.