What will be the impact of a large amount of overseas funds entering the domestic market? Which industry should a large amount of funds choose to have an annual return rate of more than 400%?

First, what impact will a large amount of overseas funds enter the domestic market?

This needs to be divided into two aspects:

1. For the purpose of investment:

This means that overseas funds come in to build factories, open companies and other investments in industry. This is good for the growth of our country's economy.

For example, if the German BMW company enters China to build a branch factory, it will bring relevant technology and talents, and the products produced by the company will not have to pay export tariffs (if the products are exported to China in Germany are required to pay tariffs), save a lot of money, reduce production costs, and naturally reduce product prices, which is good for consumers. In addition, the technology, talents and effective management methods it brings have all brought benefits to China's economic development.

2. For the purpose of plundering people’s wealth:

That is speculation. The target of speculation is not limited, but generally these funds will flow into the stock market and real estate market.

Why did foreign capital come in now instead of speculating before? This is related to the appreciation of RMB.

The RMB has actually been undervalued (I won’t go into details here). Now the Chinese government is forced to appreciate the RMB due to international pressure.

For example: When the exchange rate of RMB to US dollar is 1:8, I enter China with 1 million US dollars, which can be exchanged for 8 million RMB according to the exchange rate; after a while, when the exchange rate of RMB to US dollar When the ratio is 1:7, if I exchange 7 million RMB for 1 million U.S. dollars (this is the capital), I will have 1 million RMB left, which means I have earned 1 million RMB from the Chinese government during this period.

Of course, it is not that simple for foreign capital to come in now. When foreign capital comes in, it naturally needs to be exchanged for RMB, so the government has to print a large amount of RMB to meet the exchange requirements of foreign capital. Printing too much RMB will cause excess liquidity and eventually lead to inflation.

After these foreign capital came in, they bought stocks and real estate, so China's stock market and real estate market were speculated by these funds and continued to rise. After reaching a certain height, foreign investors immediately converted their RMB holdings back into U.S. dollars and then withdrew from the Chinese market. The direct consequence of this was the collapse of the stock and property markets, causing an economic crisis.

Let’s give an example:

When the exchange rate is 1:8, foreign investment of 100 million U.S. dollars comes in and is converted into 800 million yuan. Domestic real estate and stock speculation becomes 16 100 million yuan (the stock market is dominated by big dealers, which is unfair to the common people). Then when the exchange rate became 1:7, it was converted into US dollars, and it became 230 million US dollars, making a profit of 130 million US dollars. Then it was taken back home. In this way, China's foreign exchange reserves suffered a loss of US$130 million. In other words, the claim on the wealth of foreign societies is reduced. These claims can be obtained cheaply with domestic social wealth (trade surplus). In other words, the social wealth created through hard work in the country is transferred to outsiders for free.

Summary: Therefore, the large influx of foreign capital has caused China’s inflation and plundered a large amount of social wealth.

Second, what industry can a large amount of funds choose to invest in with a yearly return of more than 400%?

It seems that only the financial industry~~~~

It's very simple. I control a stock, buy 1 million shares when it's worth 1 yuan, speculate its price, and sell them all when it's worth 5 yuan. In this way, I can get 5 million, which is better than The original investment of 1 million earned 4 million more. In the end, the only victims are the ordinary people who follow the trend and buy.