The financing environment of the two countries is different. The American capital market is more mature and developed than China. Companies that want to do scientific research and development will inevitably need a lot of financing in the early stage to persist for a long time. The primary market environment in the United States is more tolerant of companies that did not make money in the early stage and may develop rapidly in the future. Although China is much better now, in the early years, it was difficult for companies to raise funds without making money for several years, which led many companies to focus only on short-term performance and profitability, and it was difficult to make long-term development plans. So few high-tech companies are large-scale now. Huawei, the largest company, is very strong and does not go public. If Huawei wants to go public, it will definitely surpass Maotai. The scale of listed technology companies is not so large, even if the market value is huge, it still lags far behind Maotai.
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There are not many choices for domestic funds to make value investments. Compared with liquor companies, the explosive growth of technology companies is bound to have a higher return on investment.
For example, a technology company is developing rapidly, which can grow by 50% or even several times a year, and it can last for at least a few years before entering a stable period. The investment income at this stage is the highest; Although the profit margin of liquor enterprises is high, the growth rate is not fast. Maotai, for example, has increased by a dozen or twenty points a year. Long-term investment will definitely make money, but the increase will be less than that of good technology companies. The domestic problem is that there are too few good technology companies, especially big technology companies, which leads the fund to choose leading companies in the main stable industries, while the most profitable industry of A shares is liquor, so the fund will naturally hold liquor companies together.
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Maotai, for example, has a gross profit margin of over 90% and a net interest rate of over 50%, with a steady annual growth of over 10 points. Its inventory not only does not depreciate, but also becomes hard currency. Is there any company in China that can make money more stably than this? Then why didn't the organization go to the group to run liquor as exaggerated as in 2020?
Because of the COVID-19 epidemic. The epidemic situation makes people feel more secure, and alcohol is undoubtedly the most secure industry. Later, for the sake of the epidemic, a lot of liquidity was released to the market, and the stock of the group rose, making it easier for the fund to raise funds. The money raised will continue to push up the stocks opened in the early stage, leading to a surge in leading stocks in some hot industries in the early stage.
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In a relaxed liquidity environment, market sentiment can easily push stock prices to extremes. In 2020, in response to the COVID-19 epidemic, the whole world released a lot of liquidity to the market, and the market had the most money. The long-term rise and fall of the stock price depends on the value of the company, but the short-term rise and fall is usually affected by the capital situation and market sentiment of the market. Due to different national conditions, the two countries have different comparative advantages in the long-term international division of labor, which leads to different industries of core good companies in listed companies. This year, more money has promoted the share prices of companies in advantageous industries, and the bull market atmosphere is obvious and the market sentiment is high, thus further pushing up the share prices. In the final analysis, no matter which country's stock price keeps pushing up, it must be the best and most competitive sector in the market at that time, and it is also the core asset of the stock market. The competitive industries in each country are different.