The essence of a “long bull market” is a positive capital feedback loop constructed by a “survival of the fittest elimination-and-clearance mechanism + strong cash dividends/annihilation-style share buybacks.”
In A-shares
1. The scale of capital extraction is far greater than passive allocation.
2. To prevent manufacturing from being cleared out, and to avoid “increase revenue without increasing profit” alongside vicious over-competition, the return on capital has remained low for the long term. Either profits are retained for continued inefficient investment, with the portion genuinely used for annihilation-style buybacks being extremely small.
3. Share part of the responsibility for employment, bearing some social responsibility and inefficient operating expenditures.
4. Also shoulder part of the debt-destabilization responsibility; for blue-chip SOEs and central enterprises, shareholder returns are not a priority. They undertake inefficient or even ineffective asset spending, taking on counter-cyclical tasks of “expanding the balance sheet and providing backstops.”
Holding A-shares is essentially taking on the responsibility of debt stabilization, while some Hong Kong stock assets are, in essence, an offshore projection of the costs of A-share debt-stabilization backstops.
On the other hand, DeFi’s foundation for a long bull market has already been established.
Survival of the fittest elimination-and-clearance mechanism + strong cash dividends/annihilation-style share buybacks + low operating expenditures
In A-shares
1. The scale of capital extraction is far greater than passive allocation.
2. To prevent manufacturing from being cleared out, and to avoid “increase revenue without increasing profit” alongside vicious over-competition, the return on capital has remained low for the long term. Either profits are retained for continued inefficient investment, with the portion genuinely used for annihilation-style buybacks being extremely small.
3. Share part of the responsibility for employment, bearing some social responsibility and inefficient operating expenditures.
4. Also shoulder part of the debt-destabilization responsibility; for blue-chip SOEs and central enterprises, shareholder returns are not a priority. They undertake inefficient or even ineffective asset spending, taking on counter-cyclical tasks of “expanding the balance sheet and providing backstops.”
Holding A-shares is essentially taking on the responsibility of debt stabilization, while some Hong Kong stock assets are, in essence, an offshore projection of the costs of A-share debt-stabilization backstops.
On the other hand, DeFi’s foundation for a long bull market has already been established.
Survival of the fittest elimination-and-clearance mechanism + strong cash dividends/annihilation-style share buybacks + low operating expenditures