Dynasty

Dynastic Bull

Economic order has always been tectonic the principles of stock valuation had fundamentally changed over the years. The most recent jump in China’s stock market caused recent theory that the tectonic shifts in the stock market are the main causes. When stock market shares rise by 20% within 2 weeks, a broker had found the route cause in three thousand five hundred years of Chinese imperial history. This is the pattern of chaos leading to the establishment of a new dynasty. This was followed by the consolidation of power and then they prosper. This pattern was being repeated. Long term confidence and dedication in China’s economy is defiantly suspected and understandable. It is in fact not a credible source for the stock markets random jump in numbers. Sort term factors play a much larger role in the influence of the stock market. 162 billion dollars was put into the Chinese economy by the People’s Bank of China. The investors saw the rate downgrade as a sign that the Chinese government wanted to make a less prominent monetary policy. A stronger stock market helps china’s economy in any way possible. One of the main reasons the big rise in debt within the last 5 years was due to bonds and loans for financing. Equity valuations on the rise will allow banks and other firms to become stronger and their balance sheets will become more prominent. They will do this by issuing shares or divesting assets. Stock markets play the largest role inside of the economy especially inside of china. The money that the Chinese government put into the economy was a big success and helped the survival of the country.

http://www.economist.com/news/finance-and-economics/21636094-there-good-reason-shares-rise-manic-market-policy