JPMorgan Chase suddenly dumped a staggering 1.1 trillion Hong Kong dollars worth of Hong Kong stocks, reducing their holdings from the original 1.31 trillion Hong Kong dollars to a mere 187.06 billion Hong Kong dollars, almost completely liquidating their positions!

At the same time, Morgan Stanley made the most pessimistic forecast for the Hang Seng Index, suggesting that in the worst-case scenario, it could plummet to 12,000 points, while the CSI 300 Index might drop to 2,600 points.

Not only are Wall Street capital shorting the Hong Kong stock market, but they are also openly bearish on the Chinese stock market.

However, JPMorgan Chase later explained that they were not liquidating but transferring their positions, due to the high custody costs and low profits. Going forward, the business in Hong Kong and Taiwan will be taken over by HSBC and Standard Chartered.

But is it really that simple?

If we connect this series of events with the Federal Reserve's implicit interest rate cut expectations, we can discover the hidden deeper meaning. A fierce storm may be brewing.

It is important to understand that the Hong Kong stock market is a barometer of the global economy. Unlike A-shares, the Hong Kong stock market allows for profiting from short selling.

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Moreover, there are no excessively high barriers for global investors, which means that the Hong Kong stock market has international characteristics and is more susceptible to manipulation by foreign capital, providing more room for arbitrage operations by foreign investors.

It can be said that whenever the global economic environment improves, the Hong Kong stock market always recovers first; and whenever the global economic situation deteriorates, the Hong Kong stock market is also the first to be affected.

Therefore, over the past four years, due to the impact of the pandemic, the Hong Kong stock market has experienced a continuous decline for four years.In this scenario, JPMorgan Chase's withdrawal from the Hong Kong stock market may signal that the global economy is about to enter a more severe recession.

The latest employment data released by the United States shows that the number of new non-farm jobs in the U.S. in July was 114,000, significantly lower than expected. At the same time, the U.S. unemployment rate rose to 4.3% in July.

This means that the current issue is no longer whether the U.S. dollar will cut interest rates, but whether the U.S. economy will fall into a recession.

Therefore, it is not surprising that global investors are pulling back their capital under the influence of public panic.

Through the international gold price climbing to a new historical high again, we can see that global investors are choosing to take shelter.

From another perspective, the United States has been trying to short the Chinese stock market and real estate market, but has not been able to find the right opportunity. Now that it has entered a critical stage in the Sino-American game, if there is no action, it may miss the opportunity.

Therefore, taking advantage of the final stage where the U.S. dollar interest rate cut has not been determined, the Hong Kong stock market has become the best entry point. Wall Street financial groups are not only shorting the Hong Kong stock market but also singing the Chinese stock market down, which shows that the United States has a very malicious intention.

Whether to cut interest rates or not is entirely up to the United States, and the good or bad economic data is also led by the United States. The United States has actually become the dealer of the global financial market.

In this case, instead of guessing when the United States will cut interest rates, it is better to develop our own economy. So recently we have indeed seen that no matter what signals the Federal Reserve releases, China has always been the main focus.

The recent economic data has obviously warmed up, and it is estimated that China's GDP growth rate will further increase in the third and fourth quarters.Data released by the National Bureau of Statistics for July shows that our high-end manufacturing continues to gain momentum, with the production of new energy vehicles, chips, and 3D printing equipment all experiencing year-on-year growth between 25% and 30% in July.

In terms of consumption, the retail data for July increased by 0.7 percentage points compared to June, indicating that consumption has passed its lowest point.

At the same time, the average unemployment rate for the first seven months was 5.1%, a decrease of 0.2 percentage points from the same period last year. This is another encouraging signal.

In this context, what is the significance of shorting China or bearish talk about China?

Wall Street has miscalculated.