The Federal Reserve has moved again! Just announced the third round of rate cuts, bringing the interest rate down to 3.5%-3.75%. But this time, internally, things are not so peaceful — out of 12 decision-makers, 3 voted against the cut, marking the most intense disagreement since 2019.

Things are indeed a bit tough in the US — inflation still needs to be controlled, employment isn’t doing great, and policy uncertainty is exploding. But interestingly, global capital has already made a choice — pouring into China like crazy.

Data speaks for itself: in the first half of the year, foreign investors net bought $10.1 billion worth of Chinese stock funds, and in just one month of the second half, they poured in another $6 billion; even more astonishing is the Shanghai-Hong Kong-Shenzhen stock connect, where overseas long-term funds have flooded in $10 billion into Chinese assets, and Chinese concept ETFs are selling out rapidly. Why so crazy? China’s economy grew 5.2% in the first three quarters, driven by consumption and high-end manufacturing, plus ongoing policy easing — who can resist?

Another key factor — the renminbi is strengthening. What does this mean? Cross-border shopping and studying abroad costs directly decrease, and the costs for import enterprises are significantly reduced. The more stable the renminbi, the greater the foreign capital's confidence to enter, creating a virtuous cycle. The Central Economic Work Conference has already confirmed that in 2026, proactive fiscal policy will continue to coordinate with accommodative monetary policy — this certainty is here.

This round of rate cuts by the Federal Reserve is like dropping a stone into the global capital pool — all money is now heading in one direction — the Chinese market. For those of us in the crypto space, how long can this wave of capital dividends last? Should we rethink our asset allocation now? These are all worth pondering.