Core Viewpoint - The perception of valuable assets is shifting from real estate and automobiles to health, skills, cash flow, and financial knowledge due to recent economic changes in China [1][3][5][12]. Group 1: Real Estate and Automobiles - Historically, real estate and automobiles were seen as the most valuable assets, with national average housing prices increasing from 2000 RMB per square meter in 1998 to a peak of 11,000 RMB per square meter in 2021, a rise of 5.5 times [1]. - In major cities like Shanghai and Shenzhen, average housing prices surged from 3,000 RMB per square meter to 60,000-70,000 RMB per square meter [1]. - Recently, from 2022 to now, average housing prices across the country have dropped by 30%, with significant adjustments even in core areas of first-tier cities [3]. Group 2: Health - The importance of health is increasingly recognized, with individuals prioritizing their well-being over work, leading to a rise in gym memberships and regular health check-ups [5][7]. Group 3: Skills - Possessing strong skills is crucial in the current job market, as it reduces the likelihood of being laid off and facilitates quicker re-employment if job loss occurs [7][8]. Group 4: Cash Flow - Stable cash flow is essential during economic downturns, allowing individuals to manage expenses and navigate unemployment without immediate financial stress [9][11]. Group 5: Financial Knowledge - Mastery of financial knowledge and investment skills is becoming increasingly valuable, as it helps individuals avoid losses and seize investment opportunities, especially as the economy recovers from deflation [12][14].

Core Viewpoint - The rapid devaluation of cash in China is anticipated over the next five years due to severe monetary overproduction by the central bank, with M2 money supply reaching 331.98 trillion yuan, a year-on-year increase of 8.8%, while consumer prices are experiencing deflation, indicating a trend towards economic contraction [1][3]. Group 1: Economic Trends - The monetary overproduction is primarily due to excess liquidity within the financial system that is not reaching the real economy, leading to a perception of cash scarcity [3]. - The slowdown in income growth and shrinking consumer demand are contributing to economic deflation, resulting in significant inventory accumulation for businesses, forcing them to lower prices to recover funds [3]. Group 2: Asset Devaluation - Real estate prices are expected to continue their downward trend, with the average price of second-hand residential properties in 100 cities dropping to 13,381 yuan per square meter, a year-on-year decrease of 7.38%, marking 41 consecutive months of price decline [5]. - The automotive industry is facing a price war, with domestic mid-range cars dropping by 20,000 to 30,000 yuan and luxury imports seeing reductions up to 90,000 yuan, while second-hand electric vehicles are depreciating rapidly [8]. - The value of university degrees is declining due to an oversupply of graduates, with 12.22 million expected to graduate in 2025, and a lack of practical experience among graduates making them less attractive to employers [10]. - The collectibles market is experiencing a downturn, with significant price drops in items like the panda stamp and modern artworks, as reduced disposable income limits demand for such investments [13].

Group 1: Economic Overview - The future expectation is that cash will depreciate rapidly due to severe domestic currency overproduction, with M2 reaching 330 trillion, double that of the US and more than the combined total of Europe and Japan [2] - Despite the expectation of inflation, the economy is currently in a deflationary cycle, with CPI down 0.1% year-on-year in the first half of the year, indicating a trend of stable but declining prices [2] - The lack of rapid depreciation of currency is attributed to two main reasons: insufficient confidence among businesses and consumers leading to a shrinking loan market, and a weak real economy causing reduced consumer income and spending power [2] Group 2: Real Estate Market - Since 2022, domestic housing prices have entered a long-term adjustment phase, with declines observed in second and third-tier cities, and first-tier cities like Shanghai and Shenzhen also experiencing price drops [5][7] - In Shanghai, housing prices have fallen from over 90,000 yuan per square meter to over 60,000 yuan, a decline exceeding 30%, with expectations of further decreases as prices return to reasonable levels [5][7] - The decline in housing prices is driven by three factors: extensive real estate regulation since 2016, reduced consumer income and purchasing power, and a prolonged decline in prices leading to a lack of investment appeal [7] Group 3: Automotive Market - The automotive market is experiencing a price drop, with some models from brands like Honda and Chevrolet seeing reductions of over 60,000 yuan, while domestic brands like Geely and BYD are also engaging in price promotions [6][9] - Average price reductions in the automotive sector range from 20,000 to 30,000 yuan, with some models dropping from 220,000 yuan to 180,000 yuan, indicating a continuing price war in the coming years [6][9] - Factors contributing to the decline in automotive prices include an oversupply due to the influx of electric vehicles, reduced purchasing plans among middle-income consumers, and increased competition from tech companies entering the automotive sector [9]