"A perfectly good core market theme, with such strong underlying logic, was abruptly sold off and collapsed by the capital 'Financial Street Fuxing Road'. It's truly speechless."
Watching 'Tianci Materials', 'Penghui Energy', 'Do-Fluoride', and other stocks plunge with massive volume, hitting the lower limit, Zhou Sheng, fund manager of the 'New Energy Hybrid Selection' fund product trading department within Huaxi Capital in Magic City, frowned and sighed helplessly.
"Boss... the market sentiment for the 'Lithium Battery' theme has collapsed."
Trading team leader Tian Xiaohui stared intently at the market trends of the core 'Lithium Battery' stocks and the capital outflow, reporting urgently,
"Now, not only is 'Financial Street Fuxing Road' aggressively dumping shares across the entire 'Lithium Battery' and even the 'New Energy Industrial Chain' themes, but many institutions that previously took positions, and the profitable capital groups that have been continuously locked in, are now beginning to lose confidence, forming a unanimous desire to sell."
"I see it."
Zhou Sheng nodded, sighed, and said,
"Reduce positions. The entire 'Lithium Battery' theme likely won't see any significant market activity in the short term."
"Reducing positions at this time...?"
Tian Xiaohui was slightly taken aback.
Zhou Sheng said with considerable helplessness,
"If we don't reduce positions, we won't be able to reverse the market downturn. We can only watch others make a run for it, needlessly losing our holdings' profits and increasing the fund's net asset value drawdown. So... we can only follow the market trend.
Even if the underlying logic of the 'Lithium Battery' theme hasn't changed, and the prices of 'Lithium Carbonate' and 'Lithium Hexafluorophosphate' are still at historical highs, while the 'New Energy Passenger Vehicle' market is still booming, if the chip structure of the entire theme sector collapses, there's nothing we can do."
"Alright!"
Tian Xiaohui snapped back to attention and nodded.
Immediately, he relayed the relevant trading instructions to the traders behind him, telling everyone to follow the trend and reduce positions amidst the loosening chips of the entire 'Lithium Battery' theme and the massive profit-taking pressure, gradually bringing down the fund's positions to reduce the net asset value drawdown during the core theme's large-scale retreat.
Meanwhile, as Huaxi Capital's 'New Energy Hybrid Selection' fund product began massive position reductions.
At Jufeng Asset Management, also located in Magic City.
In the trading room of its flagship fund product, the 'Jufeng Future Growth Fund Product', Lu Xiangxiang, serving as both fund manager and company general manager, gazed at the completely collapsed trend of the 'Lithium Battery' theme sector and the movements of several core stocks heavily held by her own fund product.
Her brows were tightly furrowed, and a strong desire to reduce positions welled up in her heart.
"Oh my god, today's market trend for 'Lithium Battery', and even the entire 'New Energy Industrial Chain' theme, feels like it's completely collapsed!"
Core trader Yu Xiaolu, sitting in front of the main control computer next to Lu Xiangxiang, widened her eyes, a look of shock appearing on her face.
"How many more chips does 'Financial Street Fuxing Road' have left to dump? It really seems like the entire 'New Energy' theme has been shattered by him."
"The capital 'Financial Street Fuxing Road' is truly insane."
Lu Xiangxiang recalled her first encounter with 'Financial Street Fuxing Road' on the market and said,
"This guy genuinely disregards any market direction, continuously smashing the market regardless of the cost."
"The key is, where did he get so many chips?"
Yu Xiaolu asked, puzzled.
Since the National Day holiday in October, she has continuously tracked the market trends of the core 'Lithium Battery' stocks that 'Financial Street Fuxing Road' has been continuously dumping recently, such as 'Tianqi Lithium', 'Ganfeng Lithium', 'Do-Fluoride', 'Tianci Materials', and others.
But for the past two months, she hadn't seen any trace of 'Financial Street Fuxing Road' entering the market for these stocks.
Furthermore, in the past two months, 'Do-Fluoride' and 'Tianci Materials' have appeared on the Dragon and Tiger List more than 10 times each, yet without exception, 'Financial Street Fuxing Road' showed no buying traces on any of those lists.
Logically speaking...
With such a large volume of capital holding positions, it's impossible for their intervention to leave no trace on the market.
Nor could it hide from experienced traders like her.
Yet she found no trace of 'Financial Street Fuxing Road' establishing positions in any of these four core stocks: 'Do-Fluoride', 'Tianci Materials', 'Ganfeng Lithium', and 'Tianqi Lithium'.
This left her utterly perplexed by 'Financial Street Fuxing Road's continuous selling activity.
Lu Xiangxiang pondered for a moment and said,
"While we were watching and tracking these stocks, 'Financial Street Fuxing Road' showed no signs of establishing positions, nor did it appear on any buying lists for these stocks. Yet this capital has reduced its positions by a total of over 2 billion RMB in recent consecutive trading days. Such a massive holding... to quietly enter the market while avoiding the Dragon and Tiger List would require at least several trading days, or even one to two weeks.
Analyzing from this logic... It's highly possible that 'Financial Street Fuxing Road' had already extensively infiltrated this core theme with its positions, specifically in 'Do-Fluoride', 'Tianci Materials', 'Tianqi Lithium', and 'Ganfeng Lithium', long before we began establishing large positions in the core 'Lithium Battery' theme stocks."
"That's unlikely."
Yu Xiaolu was startled.
"Before the National Day, the prices of 'Lithium Carbonate' and 'Lithium Hexafluorophosphate' were still at rock bottom. There were no signs of a cyclical reversal in the 'Lithium Battery' industry. And at that time... wasn't 'Financial Street Fuxing Road' still gambling heavily on the 'demon stock' 'Teli A'?"
Lu Xiangxiang said,
"Only this explanation makes sense. I've noticed that 'Financial Street Fuxing Road' doesn't just focus on one theme in its trading strategy. It's highly probable that while this guy was heavily gambling on 'Teli A', he had already set his sights on the 'Lithium Battery' core market theme and had begun establishing preliminary hidden positions."
"If that's truly the case..."
Yu Xiaolu said, her heart filled with shock,
"Then that's simply incredible.'"
"It is incredible,"
Lu Xiangxiang said,
"but it's the most logical explanation.'"
"At that time, how did 'Financial Street Fuxing Road' manage to predict that the 'Lithium Battery' industry's fundamentals would reverse?"
Yu Xiaolu said,
"This capital's trading strategy is both precise and uncanny. It seems to hit every turning point in market trends and every node of theme changes with unerring accuracy."
Lu Xiangxiang said,
"Perhaps this is the market understanding ability of top-tier speculative capital. This person's rapid rise in the domestic speculative capital circle within half a year means their market understanding and market intuition are definitely not simple.
Sigh... let's not talk about that anymore. Right now, under the continuous selling pressure from this capital, the chip structure of the entire 'Lithium Battery' theme sector has begun to unravel. Many previously locked-in funds are being forced to reduce positions, take profits, and exit. We... probably can't just stand by idly and let this core theme continue to adjust like this."
"Lu Xiang also wants to reduce positions?"
Yu Xiaolu asked.
Lu Xiangxiang nodded, sighed softly, and said,
"Do you have a better way to control the drawdown?"
Yu Xiaolu shook her head and said,
"No, but... currently, on the news front, the prices of 'Lithium Carbonate' and 'Lithium Hexafluorophosphate' haven't fallen. It feels like even if stocks like 'Tianqi Lithium', 'Ganfeng Lithium', 'Do-Fluoride', 'Tianci Materials'... are suppressed by the selling from 'Financial Street Fuxing Road' and other follow-on funds, as long as the underlying logic remains unchanged, the stock prices should still be able to hold up, right?
In the past week, 'Financial Street Fuxing Road' has already sold off over 2 billion RMB in capital volume on the market. Even if this guy's costs are low and his holdings are massive. After selling over 2 billion, he shouldn't have many chips left, right?
Also, the 'Lithium Battery' sector has been continuously adjusting for about a week now. Stocks like 'Tianqi Lithium', 'Ganfeng Lithium', 'Do-Fluoride', 'Tianci Materials'... have even retracted by nearly 20% from their highest points. With its core underlying logic still unchanged. If we significantly reduce positions at this time, won't we be selling at the low point of the adjustment again?
Once we miss the beat, and these stocks rapidly recover their drawdowns amidst further surges in 'Lithium Carbonate' and 'Lithium Hexafluorophosphate' prices, then we will have completely lost our chips. At that time, if we try to buy back positions, we might suffer significant losses and be slapped twice."
"But at this stage, not reducing positions is also difficult,"
Lu Xiangxiang said.
"Who knows how many more chips 'Financial Street Fuxing Road' still has to sell? What if this guy keeps selling for half a month? With his immense market influence, 'Lithium Battery' might fall for half a month, and the drawdown would be far more than these 20 percentage points.
Furthermore, the overall market trend in both markets has consistently faced a huge problem with trading volume. From mid-November until now, almost a month has passed, and the total market turnover has been stuck at 500-600 billion RMB, unable to climb higher.
As the saying goes, 'volume brings market activity'. Without volume, even if expectations and sentiment are good. It's difficult to achieve sustained upward movement. The Shanghai Composite Index has also been hovering in the 3500 to 3600 point range for over a month now.
No matter how many times it attempted to break through, it couldn't reach 3700 or 3800 points, let alone the 4000-point bull-bear line that everyone strongly anticipates. Therefore, regardless of the sentiment changes and market performance in the 'Lithium Battery' theme.
Just looking at the overall market trend, the risk of a sustained correction is also significant. Since 'Financial Street Fuxing Road' has shattered the chips of the 'Lithium Battery' and even the 'New Energy Industrial Chain' themes.
Then I suggest we, at this point, reduce positions and take profits along with most of the locked-in capital groups. Controlling the fund's net asset value drawdown first is more important."
"Well... alright!"
Yu Xiaolu, seeing Lu Xiangxiang insist on changing the trading strategy, paused before nodding in response.
She then quickly issued instructions to the other traders,
"Everyone, focus on reducing positions in 'Lithium Battery' theme stocks that have ample liquidity and relatively good demand. Try to lower our fund's position from 95% to below 85% before the market closes today."
The other traders in the trading room heard Yu Xiaolu's instructions.
Their fingers quickly tapped on the computer keyboards in front of them, using their respective trading accounts to rapidly reduce positions, take profits, and sell the relevant chips.
As the traders sold off the chips they held at market prices.
The trend of the core 'Lithium Battery' stocks in both markets became even uglier.
Ultimately, under continuous selling pressure and the crushing effect of numerous profit-taking and recent stop-loss orders, when 3 PM arrived and both markets closed.
The 'New Energy Industrial Chain' theme, especially the 'Lithium Battery' sector, suffered a massive setback.
Its sector index plunged by over 5 percentage points, while popular stocks like 'Do-Fluoride', 'Tianci Materials', and 'Penghui Energy' all closed at their lower limits.
At the same time, due to the suspension of 'Kewan Real Estate'.
The plunge in the core 'New Energy Industrial Chain' theme also directly affected overall market sentiment.
This caused other core market themes to also enter adjustment phases, and the widespread adjustments across various themes naturally led to all major indices, including the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index, closing down for the day.
Among them, the Shanghai Composite Index fell by over 1.5%, breaking through the 3500-point mark.
Facing such a closing situation...
The market's investor groups were naturally quite disappointed.
However, because 'Financial Street Fuxing Road' had publicly sold off large amounts on the Dragon and Tiger List a week prior, many speculative capital and retail investor groups who followed this trading seat and gathered in the 'Lithium Battery' theme had started reducing positions early, mostly escaping today's calamity.
On the contrary, the numerous large institutional funds that had been continuously taking on 'Lithium Battery' theme chips.
And had been continuously increasing positions on a large scale in the 'New Energy Industrial Chain' theme.
This time, they were stunned by 'Financial Street Fuxing Road's continuous selling, becoming the market investor group with the largest recent losses and the most severe drawdowns in their holdings.
Among them...
Yang Shengfan, product manager of Noah Capital's 'New Energy Industry Growth Hybrid Fund', who had been boasting on public social platforms in the preceding trading days, watched his fund's full position of over 8 billion RMB and the net asset value trend that had seen significant drawdowns for several consecutive days.
He had completely lost the spirit with which he had boldly declared he would buy as much as 'Financial Street Fuxing Road' sold.
Both his facial expression and inner emotions appeared exceptionally anxious.
Because once his fund reached a fully invested state.
He was no longer able to sustain the market trend, much less dictate it.
"They've been selling for a week straight. 'Financial Street Fuxing Road' should have finished dumping its chips, right?"
As Yang Shengfan felt anxious, fund trading team leader Bao Yongquan, whose brows were also tightly furrowed and who had been terrified by 'Financial Street Fuxing Road's selling, spoke.
However, when he shifted his gaze to the Dragon and Tiger List that had just refreshed after market close for both markets.
He saw that in the 'Lithium Battery' theme, for the several core stocks on the list, 'Financial Street Fuxing Road' was still sweeping the sell orders, with a colossal total selling amount still exceeding 800 million RMB.
He was utterly dumbfounded again, staring blankly at the computer screen for a long time, unable to recover.
(End of chapter)