Source: Brokerage China Author: Qu Hongyan Recently, China Yangtze Power hit a historical high and once again showed the slow bull stock trend of "tripling in ten years". The slow bull market has left behind many passers-by and brought good returns to the steadfast investors. It is "rare for those who triple in one year to be like carp jumping over the dragon gate, while those who double in three years are few and far between." On the other end of the investment world, however, violent collapses are also deafening, with many financial products suspected of "Ponzi schemes" ceasing payments, leaving investors with no hope of recovering their investments. Both positive and negative cases illustrate the importance of forming a suitable mentality towards money in one's lifetime; otherwise, sooner or later, you will divorce yourself from your money. "I call this the money mind, a person's IQ can reach 120, 140, or even higher levels, and perhaps some people's minds are good at doing one thing, while others are good at doing another. They can do things that most ordinary people can't do. But I know some very smart people who make very foolish decisions because they lack the money mind." Buffett once said so. The so-called money mind refers to believing in common sense, believing in compound interest, being cautious and rational, thinking independently, prioritizing security over return, not dealing with people with questionable character, not easily guaranteeing for others, not believing in windfall profits, and not trying to cross legal norms for extra benefits. In today's world of ubiquitous information, everyone's wealth may become the "prey" of those with ulterior motives. Only with the money mind, can one form good behavior habits and shield oneself from separating from one's wealth. Do not entrust your wealth easily. Wealth is easy to lose but hard to accumulate, and trust is a vital reason leading to the rapid loss of wealth. "Do not allow anyone else to manage your business unless you can watch their every move closely and understand their behavior; or you have strong reasons to believe in their character and ability. For investors, this criterion determines when you can let someone else make investment decisions for you." Graham's criterion written eighty years ago is so clear. Almost all the investors who lost their wealth in the financial products have violated the above two criteria. They did not have the ability to closely supervise the whereabouts of their funds, nor did they have sufficient reasons to believe in the character of the product issuers. They easily invested their own wealth solely based on others' glib tongue and a piece of commitment paper. They did not act as gatekeepers of their own wealth and ended up with nothing left even if the government punished the wrongdoers. "An ounce of prevention is worth a pound of cure." This is a phrase Munger often says. Destiny must be in one's own hands, and investors with a suitable money mind will try their best to find suspicious points in their investments to protect the safety of their principal. For example, whether the manager is trustworthy, whether the underlying assets are profitable, whether oneself can timely monitor the risks in the investment process, and whether the sales staff is obtaining large commissions. As long as any unreliable signs are found, these investors firmly will not invest their money. Do not desire to get rich quick. As in the capital market and anywhere else, making money is not easy, and desiring to get rich quick will lead to quick loss of wealth. In the capital market, the desire to get rich quickly often leads to investors over-allocating specific stocks, industries, or assets at the worst time. For example, buying high-risk stocks that can gain huge returns once an adventure succeeds, but the chance of success is very small, also known as "whispering stocks" by legendary fund manager Peter Lynch. "They often tell investors a story with explosive effects. These 'whispering stocks' have a hypnotic effect on people, and it is easy for you to believe that the story the company tells has an emotional appeal that can easily confuse you." This is like hearing a very tempting "sizzling" sound, making you salivate, but you did not notice that there is no steak on the grill. In the eyes of investors who lack the money mind, stable yield provided by blue chips such as China Yangtze Power cannot meet their demands. However, historical experience clearly shows that buying stocks lacking in safety solely based on imagined high yields is unwise. The long-term average investment return of general stocks is 9%-10%, which is also the average investment return of stock indexes in history, a benchmark to measure one's investment performance and the benchmark to measure fund investment performance.
Author: He Jueyuan People's Bank of China (referred to as the "Central Bank") and the State Administration of Foreign Exchange (referred to as the "Foreign Exchange Bureau") officials have stated that gold reserves have always been an important part of the diversification of international reserves in various countries. Most central banks' international reserves contain gold, including China. Gold, as a special asset, has multiple attributes of finance and commodities. Along with other assets, it helps adjust and optimize the overall risk-return characteristics of international reserve portfolios.

Expert believes that the suspension of gold reserves is due to the current high gold price, and the central bank's appropriate adjustment of the pace of gold reserve increase is conducive to cost control. From the perspective of continuously optimizing the structure of international reserves and steadily promoting RMB internationalization, the central bank's future increase in gold reserves is still the general direction.

On that day, the Foreign Exchange Bureau also released data on the scale of foreign exchange reserves at the end of June. As of the end of June, China's foreign exchange reserves were US $322.24 billion, a slight decrease from the end of May. The Foreign Exchange Bureau pointed out that the scale of foreign exchange reserves in June was affected by factors such as major economies' monetary policies and expectations, macroeconomic data, and the rise of the US dollar index. The overall prices of global financial assets rose.

The Central Bank suspends increasing its gold reserves. In June 2024, China's official gold reserves were 72.8 million ounces, unchanged from the previous month. The central bank has suspended increasing its gold reserves for two consecutive months. After 18 consecutive months of increasing official gold reserves, the official gold reserve in May showed zero growth month-on-month, and the official gold reserve scale in June remained unchanged. "This further confirms that the central bank has stopped increasing its gold reserves." Wang Qing, chief macro analyst at Dongguan Securities, said that the current high gold price, and the central bank's appropriate adjustment of the pace of gold reserve increase is conducive to cost control. From the perspective of continuously optimizing the structure of international reserves and steadily promoting RMB internationalization, the central bank's future increase in gold reserves is still the general direction.

Many experts believe that considering the advantages of gold in hedging, anti-inflation, long-term preservation and appreciation, the direction and long-term trend of the central bank's continuous increase in gold reserves has not changed. The World Gold Council's 2024 annual survey of global central bank gold reserves (CBGR) shows that more than 80% of the central banks surveyed expect the total amount of official gold reserves in the world to continue to increase in the next 12 months. Reserve managers hope to use gold to reduce risk and prepare for the continued uncertainty of global politics and the economy.

Less influenced by factors such as gold prices, central banks of various countries may slow down their pace of purchasing gold in the short term. However, the overall trend has not changed, because central banks around the world have realized that gold plays a pivotal role as a strategic asset under long-term uncertainty. The Director of the World Gold Council's Global Central Bank and Asia-Pacific Region, Fan Shaokai, said that due to the influence of factors such as gold prices, central banks of various countries may slow down their pace of purchasing gold in the short term, but the overall trend has not changed.

Foreign exchange reserves remain stable in June. As of the end of June 2024, China's foreign exchange reserves reached US $3,222.4 billion, a decrease of US $9.7 billion or 0.30% from the end of May. The Foreign Exchange Bureau pointed out that in June 2024, affected by factors such as major economies' monetary policies and expectations, macroeconomic data, and the rise of the US dollar index, the overall prices of global financial assets rose. Comprehensive effects of exchange rate conversion and changes in asset prices led to a decrease in the scale of foreign exchange reserves that month. However, China's economic recovery continued to improve, and the steady promotion of high-quality development provided support for the continued basic stability of foreign exchange reserves.

Author: He Jueyuan First-person pronouns are not necessary in English. Second-person pronouns are generally not necessary in interrogative sentences.

The following words are needed to be translated as follows: I requested：CBGR should be translated as global central bank gold reserves. In its 2024 annual review published yesterday, the World Gold Council's survey of central bank reserve managers showed that over 80% of respondents expected global official gold reserves to increase in the next 12 months to meet the covered crisis, reserve accumulation, and return objectives. The survey of 70 central banks also revealed strategic issues. Among these problems, the emphasis has shifted from MMT and the execution of unconventional monetary policy to long-term resilience and geopolitical risk.

Author: He Jueyuan First-person pronouns are not necessary in English. Second-person pronouns are generally not necessary in interrogative sentences.

Author: He Jueyuan First-person pronouns are not necessary in English. Second-person pronouns are generally not necessary in interrogative sentences.

Author: He Jueyuan First-person pronouns are not necessary in English. Second-person pronouns are generally not necessary in interrogative sentences.

Author: He Jueyuan First-person pronouns are not necessary in English. Second-person pronouns are generally not necessary in interrogative sentences.

Author: He Jueyuan First-person pronouns are not necessary in English. Second-person pronouns are generally not necessary in interrogative sentences.

In terms of exchange rates, the US dollar index increased by 1.1% on a month-on-month basis in June, and major non-dollar currencies all fell, with the Japanese yen, euro, and British pound against the US dollar falling by 2.2%, 1.2%, and 0.8%, respectively. In terms of bond prices, the USD-denominated hedged global bond index rose by 0.9%; the 10-year euro bond yield fell 25 basis points to 2.49%; and the 10-year Japanese bond yield fell slightly by 2 basis points to 1.06% month-on-month. On the stock price side, the S&P 500 index rose by 3.5% in June, the STOXX 50 index in Europe remained unchanged, and the Nikkei 225 index rose by 2.9% month-on-month.

"With the launch of the Fed interest rate reduction process in the later period, there is not much room for the US dollar index to rise, which means that the negative valuation effect brought by exchange rate conversion factors is controllable." Wang Qing told reporters that under the prospect of a global financial environment shifting towards easing, the risk of a large-scale decline in global capital markets in the short term is small, and factors affecting global financial asset prices are expected to continue to drive positive growth in China's foreign reserves.

Wen Bin believes that the current international economy is recovering moderately, the global manufacturing PMI has been above the boom-bust line for 6 consecutive months, and international trade continues to improve. China's export structure is continuously upgrading, the "circle of friends" in foreign trade continues to expand, high-level opening up is orderly promoted, and exports are expected to maintain a medium to high-speed growth. In terms of stabilizing cross-border capital flows, China's basic position will continue to play a role. "China's economic situation is stable and improving, which is conducive to maintaining overall balance of payments and laying a solid foundation for stability of foreign exchange reserves."

Editor/Jeffy