Flooding: Chained equities drive global price discovery and reduce “vulnerability”

ACCORDING TO NEWS FROM JULY 31ST, AT A PRIVATE MEETING UNDER THE CHEONAN LINE, ON THE SUBJECT OF STOCK CONTRACTS SUCH AS TRISTAR ELECTRONICS, SK HERCULES, MODERN MOTORS, AND GLOBAL PRICING TRENDS FOR CORE ASSETS, PROMINENT ECONOMISTS HONG ZHENG SAID THAT THE EXCHANGE HAD LOWERED THE THRESHOLD FOR INVESTORS IT WILL HELP TO MAKE THESE ASSETS MORE OPEN, WITH MORE DIVERSIFIED INVESTOR STRUCTURES, AND TO FIND PRICES THAT ARE MORE RAPID AND EFFICIENT AND REDUCE THEIR VULNERABILITY TO CLOSED AND SINGLE STRUCTURAL INVESTORS. “ONE OF THE CENTRAL REASONS WHY THE UNITED STATES SHARE HAS GROWN IN COMPARISON WITH OTHER MARKETS IS THE OPENNESS OF CAPITAL.” IT IS A GOOD THING THAT TODAY MORE ASSETS CAN EXPAND THE USER BASE. IT WAS ALSO NOTED THAT THE VALUE OF LISTED COMPANIES WAS ULTIMATELY DETERMINED BY THEIR PROFITABILITY AND THAT ARBITRAGE MECHANISMS IN GLOBAL MARKETS WOULD FACILITATE THE RETURN OF PRICES TO HARMONIZATION. UNLIKE ASSETS THAT DEPEND ON MARKET TRANSACTIONS FOR PRICE, SUCH AS GOLD, BITCOIN, LISTED COMPANIES ARE ABLE TO GENERATE CASH FLOWS ON A CONTINUOUS BASIS AND THEREFORE THEIR VALUE CAN BE DISCOUNTED BY FUTURE PROFITS. WHETHER A COMPANY DEALS IN KOREA, THE UNITED STATES OR OTHER MARKETS, ITS INTRINSIC VALUE DOES NOT VARY DEPENDING ON THE PLACE OF LISTING. “THE ARBITRAGE WILL CONTINUE TO ELIMINATE THESE PRICE DIFFERENTIALS AND PROMOTE PRICE REDUCTIONS FOR THE SAME ASSET IN THE GLOBAL MARKET.” TURNING TO FINANCIAL INNOVATIONS SUCH AS CHAINS OF STOCK, HONG BELIEVED THAT ENCRYPTION TECHNOLOGY WAS DRIVING GLOBAL CAPITAL MARKETS TOWARDS A 24-HOUR CHAIN OF TRADE, WHICH IN ESSENCE INCREASED THE EFFICIENCY OF GLOBAL PRICE DISCOVERY AND WAS AN IMPORTANT EXPRESSION OF FINANCIAL INNOVATION. AT THE SAME TIME, HE NOTED THAT FINANCIAL INNOVATION AND DEREGULATION WERE TWO SIDES OF THE SAME COIN, WHILE HISTORICAL EXPERIENCE HAD SHOWN THAT GRAND NARRATIVES, CREDIT EXPANSION AND DEREGULATION WERE THE THREE KEY ELEMENTS NECESSARY IN THE BOOM CYCLE OF FINANCIAL MARKETS。