Whoever can get low-cost funds is the king of the financial industry!

Why do you say that? We deposit our money in the bank, and the current interest rate is 0.35% per year, and the one-year term is 1.5%. The bank lends our funds to enterprises at an interest rate of at least 4%. A few years ago, when trust products, especially real estate trust and infrastructure trust, flourished, many keen investors took their own properties to the bank for mortgage loans, and the money from the loans was used to choose a trust product with an interest rate of around 10%. The loan interest paid to banks is about 7% per year, and their net profit is 3%.

Second, make money with asymmetric information.

The so-called information asymmetry means that some people know some important information and others don't, so those who know the information will have the advantage to participate in those high-quality investment projects in a short time and profit from them.

Third, the money given by the central bank

Giving money here does not mean transferring money directly to our bank account, but refers to the loose monetary policy provided by the central bank.

For example, from 2005 to 2007, there was another huge bull market in the stock market. Many people made money in this bull market. But when we come back to the market, are the people who speculate in stocks unique, experienced and skilled? Actually, it is not! The money earned by that wave of market is the money given by the central bank. The monetary policy of the industry leads to the appreciation of RMB, and in the process of appreciation, the stock market naturally has a re-pricing process.