The share of the Chinese yuan in global payment currencies has increased, with expectations of an acceleration signal. Status determines scale; although the A-share market has tormented us countless times, when conditions do not allow for a low profile, the value of blue-chip stocks has the strength to stand up.

On December 21st local time, the Society for Worldwide Interbank Financial Telecommunication (Swift) released its latest report, which showed that in November 2023, in the global payment currency ranking based on the amount, the Chinese yuan rose to the position of the world's fourth most active currency, with a share of 4.61%.

In that month, the top five global payment currencies based on the amount were the US dollar, the euro, the British pound, the Chinese yuan, and the Japanese yen. Additionally, when considering international payments outside the eurozone, the Chinese yuan ranked fifth in November, with a share of 3.15%. Compared to October 2023, the total amount of yuan payments increased by 34.87%, while the total amount of payments in all currencies increased by 5.35%.

The era of the British pound as the empire on which the sun never sets has ended, and it is destined to be surpassed by China soon. The euro is mainly supported by the European Union, and in terms of trade, our hard investment in Europe is quite limited, with more being swaps. In the future, after China surpasses Europe in the automotive and industrial sectors, there will be little business left, perhaps some luxury goods trade.

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Oil is one of the main commodities that determine the scale of currencies. Observing how Iraq was attacked by the United States for not using the US dollar and Libya was beaten by France for not using the euro illustrates the importance of oil trade. However, in the future, due to the trend of new energy replacing fossil fuels, the hard support for currencies will depend on economic strength and influence. It will take a long time to surpass the US dollar, and it is expected that when China's GDP exceeds that of the United States by more than three times, this influence can be mitigated. This is because the United States' influence is not only reflected in GDP; many anti-American funds still exist in the United States. Such super influence requires a significant global change to reverse.

Similar to the British pound, after the empire on which the sun never set was surpassed by the United States, the pound's influence was also replaced. This time, it is not a third world war, nor a hot war, but mainly an economic war. Therefore, when China's GDP surpasses that of the United States by more than three times, our currency's share may achieve surpassing the US dollar, or at least be on par with it. Complete replacement is impossible and unrealistic, unless the United States disappears.

Under the Belt and Road Initiative, China's overall monetary policy is more stable than the US dollar, and it will not use interest rates to harvest the world like the United States when it becomes stronger. Under the harmonious society, China's currency will maintain low interest rates in the long term, and inflation will mainly be resolved through commodity price intervention. For example, the recent surge in coal prices was easily solved by issuing a guided price overnight. Argentina has recently gone crazy due to inflation, which cannot be solved by economics. The conventional Chinese method is a faster decision, but this kind of determination is difficult for Western countries to achieve.

The world does not need so many currencies; with more than 200 countries, only a few currencies will be needed in the future. To control costs, digital currencies will become global, and digital currencies of various countries will appear. The price of gold will continue to rise because when the US dollar starts to lower interest rates and China's economy begins a new round of stimulation, there is also a concern about an excess of US dollars, which will drive up the price of gold in a global scramble.

China still has many areas that are not open to the world. With the current real estate bottleneck and all industries having been speculated, the next step is to open up to the world. Next year, under the expectation of US dollar interest rate cuts, it is the best window to expand openness. Each time China significantly opens up or expands its openness, it is done during the US dollar's interest rate cut cycle, which is the best offensive window. When the enemy retreats, we advance.As the largest economy in the future world, all industry leaders will be Chinese, and under such favorable conditions, the internationalization of our country's currency will be very rapid. Correspondingly, the value of A-shares will also increase.

Recently, Middle Eastern funds have invested in NIO, and a large number of Chinese domestic internet companies have also gone public overseas. Correspondingly, they are also international investments in Chinese assets. Driven by China's rise, more international funds will speed up their entry into A-shares in order to allocate Chinese assets.

Overall, BlackRock came to A-shares at the wrong time. 2018 was a turning point in China's economic growth, the real estate market also began to show pressure from hidden bombs that year, and it was also the starting point for the full implementation of the registration system. Correspondingly, the stock market also began to face pressure at this time, and it is normal to be knocked out of A-shares now. If BlackRock came to A-shares now, it might be more appropriate.

What is needed to reach 10,000 points is the support of blue-chip growth, and blue-chip growth is supported by industry integration, which is supported and driven by the clearance of junk stocks and the rise of blue chips. This time requires a process. Now that the IPO rules have changed, the expectation of a corrective market is coming. At the same time, driven by the multi-layered market such as the Beijing Stock Exchange and the New Third Board, the market will become more transparent in the future, and the incidents of junk stocks deceiving will become smaller. At that time, the funds will be driven by value growth, or market value allocation. The market will be strong. Although this is a matter of the future, at least compared to the present, the global market with great potential is expected to be my great China.

A-shares, come on, 10,000 points, and it is worth looking forward to expanding openness next year.