The decline in the US stock market has an impact on the China stock market. If the US stock market falls for a long time, it will have a huge impact on the China stock market, which may lead to the economic crisis and operational difficulties in China. If the US stock market falls in the short term, it will have little impact on China. China's overall economic operation is basically stable. Even in the face of external influences, the government has the tools and ability to maintain stable economic growth and lay a good foundation for the stable operation of the stock market and foreign exchange market.

Since 1997, the US stock market triggered the fuse mechanism for the first time, and the market was sad. The fuse of the collapse is the collapse of international oil price and the global spread of COVID-19 epidemic, and the deep-seated one is the market bubble caused by long-term capital overvaluation. The multiple risks exposed by the plunge are worthy of vigilance.

First of all, we should be alert to the risk of continuous and violent fluctuations in the crude oil market. In the short term, the downward pressure on international oil prices continues to exist. With the global spread of the epidemic, measures such as city closure and restrictions have been implemented one after another, and the international demand for crude oil is difficult to improve in the short term.

After the failure of oil production negotiations, the Organization of Petroleum Exporting Countries (OPEC) and Russia will inevitably compete for market share, and the price war may be inevitable. The uncertainty of the international crude oil market has increased sharply, which has increased the risk of the global financial market.

The Global Research Department of Bank of America reported that the COVID-19 epidemic has brought a supply-side impact, so it is more important to adopt medical and health policies and targeted fiscal policies than monetary policies. Some institutions have called on the government to pay for the COVID-19 test, which may be more effective than the Fed's interest rate cut. The collapse of the US stock market also revealed that the false prosperity caused by overvaluation is unsustainable, and the long-term structural risks are worthy of vigilance.