Last night's U.S. stock market witnessed a stunning scene, with the share prices of two former banking titans plummeting by 99% and 68%, respectively.

In the meantime, the share price of a Chinese internet giant surged by a significant 14% against the trend.

This scene may be a preview of the economic trajectories of China and the United States for a long time to come.

The watershed between the two nations' economies has emerged!

01, The Watershed Appears

The United States has recently halted its previously active money printing press, as the bankruptcies of Silicon Valley Bank and Signature Bank have made them realize that the fundamental issue lies in the significantly increased interest rates. However, in an effort to control inflation, the Federal Reserve actually raised interest rates by 25 basis points in March.

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As interest rates continue to rise, the fixed assets in the hands of the public will keep depreciating, leading people to choose to withdraw their funds back to themselves, thus breaking the banks' capital chains. Therefore, after a year of monetary tightening, the United States has to face a difficult dilemma.

The situation in our country is clearly different. Our economic development has always pursued steady progress, and now our economy is slowly recovering.

The severe economic conditions in the surrounding areas will indeed affect our country, but we can fully activate reserve requirement ratio cuts to deal with such situations.

We have previously established a foundation of low inflation, and lowering interest rates is not a problem at all, nor will it bring pressure of inflation to us. Therefore, we have more available tools at our disposal.02, Technology Innovation Industry Suffers

There is a significant disparity between China and the United States in the field of technology innovation.

Under the pressure of liquidity emergencies, banks are forced to sell off bonds. In the context of interest rate hikes, the risk of losses is magnified.

Currently, the financial crisis in American banks has impacted the development of the technology innovation industry, which is related to some of the drawbacks of American technology policies.

The technology innovation industry requires substantial financing, and the financial crisis in the United States has, to a large extent, suppressed the development of technological innovation.

Financial institutions such as Silicon Valley Bank primarily invest in the capital industry through venture capital, investing in technology innovation companies, and banks act as the link between investors and startups, especially Silicon Valley Bank.

According to surveys, many American venture capital firms and numerous tech startups have business dealings with Silicon Valley Bank. Now that Silicon Valley Bank has collapsed, it is likely that the American startup ecosystem has been shaken.

In recent years, the United States has introduced many measures to restrict technology innovation companies from attracting global funds, and due to this financial crisis, domestic financing will also decrease. Because of decoupling measures that impose many restrictions on foreign capital, financing for startups has become even more difficult.

The United States may weaken its position in the venture capital field and may also damage American technology innovation capabilities. Without this driving force, the economic growth of the United States becomes a significant question.

03, China's Counter-Rising Trend

(Translation of the rest of the text is not provided as it was not included in the original prompt.)The situation in China is just the opposite.

Despite restrictions from Western countries, our country's new energy vehicle industry has gradually taken a leading position globally.

BYD, as the leading enterprise, has now surpassed Tesla in sales, and its latest annual report also shows that the company's profit growth has reached more than 400%.

At the same time, our country's platform economy has regained vitality, and after the previous antitrust rectification, the internet giants have started a new wave of growth.

Alibaba has divided its platforms into six, and it is possible that they will be listed separately in the future. This good news immediately pulled up the price in the US stock market by a large margin of 14%.

In contrast, Silicon Valley Bank's quote in the US stock market plummeted by 99% last night, and the current stock price is only 0.4 yuan, and it will only be traded in the OTC market afterwards.

Due to the expectation that future financing will become more and more difficult, most of the US technology stocks have also fallen. Tesla, META, Google have fallen by more than 1%, and Apple, Microsoft, Amazon have also fallen by 0.4% to 0.8%.

Although the overall Nasdaq index fell by 0.4%, the Nasdaq China Golden Dragon Index has risen by a large margin of 3.5%.

I believe that the overall trend in the future will be the same as the current stock market situation, with China's economy going up and the US economy falling into a recession.