TLDR;
This video discusses a strategic "2029 Big Picture Hidden Map" orchestrated by China, involving the internationalization of the RMB, technological innovation, and the revaluation of "Made in China." The speaker highlights key events in September that signal this plan's progression and advises viewers on investment strategies to capitalize on these trends, focusing on technology, undervalued Chinese industries, and RMB-related financial opportunities.
- China is strategically laying out a plan for the next five years, focusing on the internationalization of the RMB.
- Key events in September, including policy changes and international collaborations, signal the progression of this plan.
- Investment opportunities lie in technology, undervalued "Made in China" industries, and RMB-related financial sectors.
Introduction: A Grand Game Unveiled [0:00]
The speaker introduces a significant, quietly unfolding plan that will impact the next five years, referring to it as a "grand game of chess." This game, concerning how money will change, is illustrated by four seemingly unrelated events in September that, when connected, reveal an astonishing picture. These events include the reform of reinvesting foreign profits, a phone call between Chinese and US leaders, the launch of the International Operation Center of Digital RMB in Shanghai, and the listing of RMB Treasury bond futures in Hong Kong.
The Four Key Events in September [0:21]
On September 15th, the Foreign Exchange Administration issued a notice to promote the reform of reinvesting foreign profits, which means it is now more convenient and with a lower threshold for foreigners to reinvest their earnings in China. On September 19th, leaders from China and the United States had a significant phone call. On September 24th, the International Operation Center of Digital RMB was officially put into operation in Shanghai, dedicated to internationalization rather than domestic operations. Lastly, on September 25th, the vice governor of the central bank stated the need to accelerate the progress of listing RMB Treasury bond futures in Hong Kong.
The "2029 Big Picture Hidden Map" [1:15]
These four events are not coincidental but part of a larger strategy called the "2029 Big Picture Hidden Map," which is currently in a covert planning stage. The establishment of the Digital RMB International Operation Center signals the seriousness of the RMB's internationalization. This internationalization aims to create a channel for the revaluation of assets across China, allowing China to regain pricing power over its manufacturing industries, which are currently valued in US dollars.
The Three Dimensions of the Strategy [2:50]
The "2029 Big Picture Hidden Map" involves a set of combination punches across three dimensions. The first dimension is a breakthrough in technological innovation, particularly in artificial intelligence, where China and the United States appear as leading powers. The second dimension involves a complete revaluation of "Made in China," which is complicated and requires the ultimate settlement of the Sino-US trade mechanism. The third dimension is the internationalization of the RMB, which serves as a channel for revaluation.
China-US Relations and Revaluation of "Made in China" [3:36]
The phone call between Chinese and US leaders on September 19th is significant, with both sides emphasizing the importance of their relationship and economic/trade issues. There is potential for a meeting between the leaders at the APEC summit in South Korea in November, which could revive the mutual visit mechanism and ease tensions. Easing China-US relations is crucial for the revaluation of "Made in China," as it allows for agreements to be reached and the value of Chinese goods to be recognized internationally.
Internationalization of the RMB and Financial Opening [6:23]
The internationalization of the RMB provides a channel for the revaluation of Chinese goods and assets, increasing the value of the RMB in the international market. The events in September, such as the reform of reinvesting foreign profits, the establishment of the International Operation Center of Digital RMB, and the listing of RMB Treasury bond futures in Hong Kong, are paving the way for this. These initiatives aim to keep money in China, build international infrastructure, and provide investment channels for RMB holders.
Investment Strategies: Big A, Gold, and the US Dollar [7:13]
For the Big A (Chinese stock market) in October, a cautiously bullish approach is recommended, focusing on three directions: core technology independently advanced by China, a revaluation of "Made in China" (dependent on China-US relations), and the financial industry/internationalization of the RMB. Gold is expected to continue its bull market trend, while the US dollar is likely to remain volatile and weak due to its high interest rate relative to other currencies.
US Stock Market Outlook [9:30]
The US stock market performed acceptably in September, and despite global uncertainties, the United States remains a leader in global assets. Considering the high US dollar interest rate, the US stock market still has upward momentum, making adjustments a potential buying opportunity.
Conclusion: The Golden Window Period [10:06]
The events in September collectively point to a grand "2029 Big Picture Hidden Map" encompassing technological breakthroughs, the revaluation of "Made in China," and the internationalization of the RMB. This is a golden window period for layout, and it is crucial to pay close attention to market trends and policies related to the internationalization of the RMB. Those who are well-prepared will seize the opportunities, as this overall situation will become clearer over time.