What does hot money mean?

What does hot money mean?

Hot money, also known as hot money, or speculative short-term funds, the purpose of hot money is to use money to make money in as little time as possible. Short-term speculative funds that move quickly in the market in pursuit of high returns. The biggest difference between hot money and legitimate investment is that the purpose of hot money is purely speculative profit-making and does not create jobs, goods or services. The objects speculated by hot money include stocks, futures, crude oil, gold, other precious metals, currencies, real estate and even agricultural products. In the ten years from 2001 to 2010, the average amount of hot money flowing into China was US$25 billion per year, equivalent to 9% of China's foreign exchange reserves during the same period.

What is hot money in stocks?

Hot money is hot money. It refers to short-term assets that flow between various financial markets in pursuit of high profits. It has the characteristics of strong speculative nature, fast liquidity, and obvious tendency. If there is a difference, then hot money is an international fund that flows around the world specifically to earn short-term capital gains such as exchange rate differences in various places. Hot money can also include domestic private funds, so it is larger than the general concept of hot money. The existence of hot money can play a certain positive role in regulating international capital surplus and shortage and activating financial markets. However, its negative effects are also considerable: first, hot money will cause ups and downs in the foreign exchange market due to speculative operations that shake a country's exchange rate, and ultimately distort the exchange rate level; second, large amounts of hot money entering and exiting a country will cause a large increase or decrease in foreign exchange reserves. Promote the sharp rise and fall of the stock market; third, the rapid movement of hot money often has an opposite effect on the monetary control policies of various countries. For example, when a country raises interest rates to curb inflation, international hot money will pour in, forcing the country to passively increase the amount of currency and aggravate inflation. This will obviously make it more difficult for the monetary authorities to stabilize the economy and affect the expected effect of macroeconomic regulation in the country. Hot money will not only cause economic turmoil and financial crisis, but also spread the crisis to other countries through speculative operations in the financial market.

What are hot money and private equity?

Hot money:

Hot money, also known as liquidity or hot money, refers to liquid funds seeking short-term returns. These funds flow extremely fast. Once investors (usually institutional investors) seek short-term investment opportunities, hot money will pour in. Once investors obtain expected profits or find that the investment opportunity has passed, the capital will quickly flow out. . The formation of hot money is due to the globalization of financial markets and the rapid expansion of international investment funds.

Introduction:

Hot money, also known as hot money or speculative short-term capital, although there is no official definition of it, usually refers to short-term funds that flow rapidly for the purpose of speculative profits. Capital, and its entry and exit often easily induce market and even financial turmoil. Hot money flows extremely fast. Once investors (usually institutional investors) seek short-term investment opportunities, hot money will pour in. Once investors obtain expected profits or find that the investment opportunity has passed, the capital will quickly flow out.

Private placement:

Private placement is relative to public placement. Private placement refers to the sale of stocks to a small number of financial institutional investors (usually less than 35). This method can be exempted, such as in the United States. Securities and Exchange Commission registration process. Investors must sign an investment letter declaring that the purpose of purchase is investment and not for re-sale.

Features:

First, "private equity" investments have basically no liquidity.

Second, the reason why it is called "private equity" is that investors cannot be recruited publicly, shares cannot be sold on the open market, shares cannot be sold on the Internet, etc.

Third, investors in private equity can be angel investors or venture capital investors; they can be individuals or financial institutional investors. But no matter who it is, he must be a qualified investor.

What does hot money mean?

Read more about hot money. Hot money is also called hot money, or speculative short-term funds. The purpose of hot money is to use money to make money in as little time as possible. It is only for the pursuit of high profits. Short-term speculative funds that move quickly in the market in exchange for returns. The purpose of hot money is purely speculative profit-making, not the creation of jobs, goods or services. In October 2011, new foreign exchange outstanding funds showed negative growth for the first time in the past four years, and overseas hot money left China.

What is the difference between the main force and hot money?

Whoever can dominate the trend of the trading variety is the main force. Hot money mainly enters and exits in the short-term, and plays the main role most of the time. But the main force is not necessarily hot money anymore. Big funds will still fight on a large scale, and the holding period will be relatively long.

What is hot money?

In the stock market, short-term assets that flow between financial markets in pursuit of high profits are called hot money. To put it bluntly, hot money is short-term investors

Hot money buying means hot money buying stocks, but hot money does not specifically refer to the operation of stocks. The speculative movement of international short-term funds is mainly to avoid political risks. Hot money is a speculative behavior that pursues the benefits of exchange rate changes, changes in the prices of important commodities, or changes in international securities prices. Hot money is a speculative behavior that pursues benefits from changes in exchange rates.

Although the general definition can be said like this, how to identify hot money and determine the amount of hot money is not an easy task. First of all, the inflow of hot money creates false prosperity that fuels the economy. Secondly, hot money has entered in large quantities, increasing the scale of foreign exchange holdings, affecting the normal operation of monetary policy, disrupting the normal execution of the financial system, and exacerbating domestic inflationary pressure.

Hot money is different. They are extremely active in the stock market and their operating methods are flexible and changeable. When the management makes a speech and the funds are still hesitant and wait-and-see, hot money dares to make money without the funds' activeness. With the participation, a large number of people entered the market and opened positions, resulting in a rapid increase in trading volume. Having extremely high investment enthusiasm often becomes the vanguard of rebound and the leading indicator of market stability. Following the operating ideas of hot money often helps investors seize market opportunities and obtain short-term profits more quickly.

What are bookmakers and hot money in the stock market?

1. A stock market maker can determine the trend of a stock to a large extent, and it can be called a stock market maker. Generally speaking, stock market makers have strong funds and own or will soon own a large amount of the stock. If a stock has no public or undisclosed good or bad information, but suddenly deviates seriously from the trend of the market, it is most likely caused by stock market makers. Banker is a term with Chinese characteristics. Stock banker is a term that has emerged in the stock market in recent years. If you can follow the stock banker, you can obtain extraordinary profits. However, it is very difficult to correctly judge the banker's intentions, and countless people have been trapped.

2. Hot money is also called hot money, or speculative short-term funds. The purpose of hot money is to use money to make money in as little time as possible. It is short-term money that flows quickly in the market just for the pursuit of high returns. Speculative money. The purpose of hot money is purely speculative profit-making, not the creation of jobs, goods or services.

3. The fundamental difference between bookmakers and hot money in stocks lies in whether they operate stocks. Bankers generally operate the stock price, and there is usually a process. The purpose of hot money is to earn stock prices, and usually will not stay on a certain stock for too long.

It is best for investors to have some preliminary understanding of the stock market before entering the stock market. In the early stage, you can use Geniugubao to simulate stock trading. There are some basic stock knowledge materials worth learning. You can also build your own set of mature stock trading knowledge and experience through the above related knowledge. I hope this helps you, and happy investing!

What does the stock Longhu list and well-known hot money intervention mean?

The stock Longhu list or well-known hot money intervention means that a large amount of money has entered the stock, usually bankers or state funds. (In fact, the national team is also a bookmaker).

For example, during the market rescue in July ***, several well-known business offices of CITIC Securities and Guotai Junan bought some stocks at the bottom, which were entered by the national team; there were also some stocks that were entered by well-known private equity or hot money (active hot money was mainly concentrated in Jiangsu, Zhejiang, Chengdu , Shenzhen, Shanghai, Fujian and other places), such as Xu Xiang’s daily limit death squad in Ningbo, etc. Generally speaking, if a certain stock has a large amount of hot money and institutions entering, and it is on the Dragon and Tiger list, it means that hot money and mainstream funds have reached consensus, and the probability of continuing to rise is high. Considering that it is easy to purchase goods with large funds but difficult to ship goods, bookmakers will choose some hot spots in stock selection. In this way, hot money will collectively relay the goods, and the goods will be easy to sell. When it gets crazy, it can also attract some large retail investors to follow suit, so it is possible for retail investors to dominate the world. Makes sense.

The capital dragon and tiger list can generally be seen on Dongcai and Tonghua. There are also apps like "Stock Advance" (Android version only, IOS can follow WeChat ID). They track based on big data The banker trends recommend 3 banker stocks every day. You can track the stock trend as a reference.

Several popular hot money companies in the domestic market are as follows:

1. Guotai Junan Department

Including Guotai Junan Trading Unit (227002); Shanghai Fushan Road Securities Business Department (will save itself after being trapped); Chengdu North First Ring Road Securities Sales Department; Shanghai Jiangsu Road Securities Sales Department; Shanghai Tianshan Road Securities Sales Department; Trading Unit (010000); Shenzhen Yitian Road Securities Sales Department; Nanjing Taiping South Road Securities Sales Department ; Shanghai Dapu Road Securities Sales Department; Chengdu Jianshe Road Securities Sales Department; Guotai Junan Guangzhou Renmin Middle Road Securities Sales Department (it is rumored that many of the seats of celebrity private equity Zexi Investment are in Guotai Junan)

2. Everbright Department

Including Everbright Shenzhen Jintian Road Securities Sales Department (unusual style); Shanghai Century Avenue Securities Sales Department; Hangzhou Qingchun Road Securities Sales Department (first-class hot money); Yuyao Yangming West Road Securities Sales Department; Ningbo Jiefang South Road Securities Sales Department; Fenghua Nanshan Road Securities Sales Department;

3. CITIC Department

Including CITIC Hangzhou Yan'an Road Securities Sales Department (legend is Zhang Jianping's seat); Shenzhen Fuhua 1st Road Securities Sales Department; Fuzhou Lianjiang North Road Securities Sales Department; Shanghai Century Avenue Securities Sales Department; Shanghai Huaihai Middle Road Securities Sales Department; CITIC Securities Shanghai Liyang Road Securities Sales Department (a sudden rise in 2014)

4. Galaxy

Including Ningbo Cuibai Road Securities Sales Department (Ningbo Death Squadron); Ningbo Daqing South Road Securities Sales Department (likes to repeatedly speculate on a stock); Shaoxing Securities Sales Department; Xiamen Meihu Road Securities Sales Department;

5. China Investment Department

Including Wuxi Qingyang Road Securities Sales Department; Hangzhou Global Center Securities Sales Department

6. Huatai Department

Including Chengdu Shu Jinlu Securities Sales Department; Nanjing Jiangning Jinye Road Securities Sales Department; Jiangyin Futai Road Securities Sales Department; Shaoxing Shangda Road Securities Sales Department; Shenzhen Yitian Road Rongchao Business Center Securities Sales Department; Hangzhou Ding'an Road Securities Sales Department; Yangzhou Wenchang Middle Road Securities Business Department.

What is the difference between small and medium-sized retail investors and hot money?

There is no difference, except that they have relatively strong funds and even control the stock price

What is the difference between institutions and hot money? ?

Institutional funds are large, and they will rise in the long term. In contrast, downstream funds are small, fast in and out, very fierce