The impact of the subprime mortgage crisis on China s capital market

The whole world is in a big economic chain.

The subprime mortgage crisis caused a recession in the United States and a decline in the consumption power of the United States, which affected the world economy, affected China's export enterprises, and affected the economy.

Of course, conduction is not only economic, but also psychological. If investors think that the economy is in recession, they don't invest, don't consume, and live conservatively, then the economy will be in recession.

Since the United States has a large share of the global economy, it will have a negative impact on the global economy.

The crisis in the U.S. subprime mortgage market is showing signs of deterioration, causing the U.S. **.

Violent upheaval. Investors are concerned that the subprime mortgage market crisis will spread to the entire financial market, affecting consumer credit and corporate financing, which in turn will hurt the growth of the US economy.

But at first, many analysts believed that the subprime mortgage market crisis was expected to be contained on a local scale, and it was unlikely that it would pose a major threat to the US economy as a whole.

But for now, the subprime mortgage crisis has seriously affected the world economy, according to the latest data release, the United States GDP has fallen in the second quarter, and it has fallen by 0.5 percent, which has declared the United States economy into recession, and it is expected that the economy of the United States will continue to be sluggish.

Impact on the global economy

The world's major central banks.

of bankers have been focused on stopping the subprime mortgage crisis in the United States.

The resulting shortage of liquidity in the money market has injected large amounts of cash one after another.

Not only that, but the Federal Reserve.

The discount rate has also been lowered.

These efforts have paid off, and currency markets have stabilized. However, many bond products are particularly asset-backed**.

But it is still sluggish.

In addition to fears of another disruption in the credit market, the current ** banks.

Nothing worries more than the impact of credit market turmoil on the global economy. It is generally believed that the United States, the birthplace of the subprime mortgage crisis, will be the most affected.

At first glance, the US economy was not affected by the subprime mortgage crisis: economic growth was very strong in the second quarter; Business spending looks buoyant; The growth of Gongzheng imitation hunger capital is very stable; Gasoline**, which is pulling consumer spending down, is falling. But on closer analysis, the outlook is less bright.

1. It has an impact on the stock, increment and flow of overseas "hot money". The tightening of liquidity in the international financial market will have an impact on the stock, increment and flow of overseas "hot money" in China, which will affect the trend of China to a certain extent.

2. Let the surrounding market continue to be deep, and the mentality of Chinese investors will also be affected to a certain extent.

3. Export enterprises are affected by the U.S. economic recessionFor China's economy, which is very dependent on foreign trade, the substitution role of domestic demand has not yet been completed, and if the world economic crisis caused by the U.S. economic recession occurs, it is difficult for China to stand alone.

4. The impact on the enterprise industry. After the "cold snap" of the financial crisis hit the virtual economy hard, the next thing that affected it was to sell off the real economy. The three major auto plants of General Motors, Ford and Chrysler in the United States have turned to the United States to demand bailouts due to the impact of sales**, financial deterioration, declining market share and poor credit ratings, otherwise they will be forced to go bankrupt.

Some commentators believe that the economic crisis in the United States in the 70s has not been resolved at all, the debt has increased year by year, and there has been no surplus since 1975. Whether it is the Keynesian Roosevelt New Deal or the neoliberalism that replaced it in the seventies, the United States will not be able to escape its economic crisis fundamentally without addressing the gap between social distribution and aggregate demand and aggregate supply.

The impact of the subprime mortgage crisis on the Chinese economy cannot be ignored due to the slowdown in the US economy and global economic growth, and the impact on exports is the most important. In 2007, due to weak import demand from the United States and Europe, China's monthly export growth rate has declined from February 2007 to December.

On the one hand, China's economic growth will slow down to a certain extent, and at the same time, due to the slowdown in China's economic growth, the society's demand for labor force will be less than the supply of labor, which will increase the employment pressure of the whole society.

The subprime mortgage crisis is said that the subprime mortgage industry in the United States has defaulted sharply, and the impact on China's stock market collapse is mainly the following aspects

1. Causing certain losses to institutions and derivatives investing in U.S. subordinated loans;

2. Because of the background of economic globalization, the crisis in the US economy will definitely affect China;

3. There is a subprime mortgage crisis in the United States, and shareholders will be worried about the development of the economy, so that their confidence in the market is insufficient, and the inflow of funds will decrease.