"Damn, no way? Is the 'Financial Street Fuxing Road' fund still selling?"
Bao Yongquan felt numb all over after seeing the Dragon-Tiger List data disclosed for stocks like Duofudu, Tianci Materials, and Penghui Energy.
He couldn't figure it out.
Why did the 'Financial Street Fuxing Road' fund hold such a massive amount of chips.
From what he had seen, for about a week straight, the 'Financial Street Fuxing Road' fund had already sold off over 2.5 billion in chips on the market, single-handedly crashing the entire "lithium battery" main sector.
Following his exclamation...
Yang Shengfan's gaze also fell on the disclosed Dragon-Tiger List data for both markets, and the look in his eyes was filled with disbelief.
"How is that possible?"
Yang Shengfan said, frowning deeply.
"How could the 'Financial Street Fuxing Road' fund have so many chips? Damn... they've already sold off nearly 3 billion in chips, selling every day, continuously suppressing the market... it's unbearable."
"The stealth capability of this fund is just too terrifying, isn't it?"
Bao Yongquan couldn't help but exclaim.
"Sigh..."
Yang Shengfan sighed heavily and said,
"Our fund's positions have increased a bit too quickly recently. Now, we're quite passive."
"So what should we do now?"
Bao Yongquan asked.
"The 'Financial Street Fuxing Road' fund's continuous profit-taking through position reduction is truly terrifying. We have no idea how many chips this guy still holds. And with the influence this fund has on market sentiment, even if the fundamental logic of the 'lithium battery' core theme is sound, without capital support, its short-term market trend will be very difficult to improve!"
Yang Shengfan pondered for a moment, then said helplessly,
"We can't control market sentiment, but since the fundamental logic of the 'lithium battery' core theme is sound, and the prices of 'lithium carbonate' and 'lithium hexafluorophosphate' are still holding above 100,000 and show a further upward trend, while the market demand for 'new energy passenger vehicles' continues to rise, then... we can only continue to hold our chips, waiting for the market to gradually emerge from the correction and usher in a new upward trend."
"But our fund's position in the 'lithium battery' main theme is quite heavy now,"
Bao Yongquan said.
"If we hold full positions without adjustment, with the 'Financial Street Fuxing Road' fund continuously reducing positions for profit-taking, and the sentiment of the 'lithium battery' core theme collapsing further.
At the same time, with more and more institutional funds following suit and selling. And in a situation where the current market trend is unclear, market volume has been unable to break through, and the index also carries a significant risk of correction.
The net asset value drawdown of our fund product could be very severe. Year-end performance reviews and fund rankings are just around the corner. If our fund fails to meet the previously set performance targets, and ranks poorly internally within the company and in the industry, it might not be conducive to our growth in scale next year."
Yang Shengfan knew Bao Yongquan was right, but currently...
Facing the "lithium battery" core theme and its related core heavyweight stocks, which had already experienced a violent correction of about 20%.
With no major changes in the overall industry fundamentals or company fundamentals.
He simply couldn't convince himself to significantly reduce positions.
Moreover, because their fund's entry cost was already relatively high, following the trend to reduce positions at this time, even though it could reduce potential future drawdowns and losses, would also increase their holding costs.
What if the 'Financial Street Fuxing Road' fund has already completed its position reduction?
What if the market bearishness caused by the continuous selling of 'Financial Street Fuxing Road' has already materialized, and the emotional feedback has been fully reflected?
Then, their decision to follow suit and reduce positions at this time.
Could very likely result in losing chips and becoming one of the long positions trapped in a bear trap.
"Let's wait and see,"
Yang Shengfan continued to ponder for a while, ultimately unable to make the decision to follow the trend and reduce positions.
"Trading based on sentiment while ignoring fundamental logic goes against our investment strategy. I think... we still cannot be led by market emotions. As long as the logic followed during position building hasn't changed, and expectations haven't changed, then the severe stock price fluctuations caused by emotional volatility can only be temporarily ignored.
We are not speculative hot money in the market; we cannot be swept away by emotions. We should maintain a sufficient medium-to-long-term perspective and think from a fundamental logic standpoint. As for the fund performance review at year-end..."
Yang Shengfan paused and said,
"An excellent fund product is not judged solely by its performance over a few months or quarters, but by its long-term performance. I believe that as long as we adhere to our established strategy, and diligently follow our trading and operating approaches, our fund product will definitely gain recognition from a broad base of investors in the future."
"But what about the market's adjustment risk?"
Bao Yongquan said.
"Aren't we considering that aspect?"
Yang Shengfan thought for a moment and said,
"Do you think the market's adjustment risk will be very severe? After the previous two rounds of stock market crash adjustments, there is now a 'national team' with trillions in holdings acting as a market stabilizer.
Even though market liquidity has been a bit poor recently, and the index faces immense pressure in its upward breakthrough, the probability of another 'stock market crash' situation like before is still extremely small. Under the expectation of tighter liquidity at year-end, I think...
Even if the index adjusts downwards, at most it will adjust to around the 3300-point level, with a 10% range being the extreme. And our main heavily invested area, the 'new energy industry chain' main theme. From the market trend, it has already adjusted ahead of the broader market index.
Currently, the index is still hovering around 3500 points, but in the 'new energy industry chain' main theme, especially the 'lithium battery' main sector, the corresponding core stocks have basically completed an adjustment of about 20% from their historical highs.
Under this magnitude of adjustment. With the overall industry fundamentals continuing to improve and corresponding market demand still booming. I believe that even if suppressed by short-term sentiment, there isn't much room for further downward adjustment.
Furthermore, regarding the 'Financial Street Fuxing Road' fund... This fund has indeed acted unscrupulously in continuously crashing the market for profit-taking, but this guy has already sold off 3 billion worth during this period. As a speculative fund in the market, I don't believe the amount of capital he holds could reach tens of billions.
Therefore, overall, the impact of the 'Financial Street Fuxing Road' fund's continuous selling on the market trend should be nearing its end. As for the retail investors and institutional groups who followed suit and sold. Without the 'Financial Street Fuxing Road' fund as a market leader, their desire to sell will definitely gradually decrease.
What's more, given the fundamental situation where market demand for 'new energy passenger vehicles' continues to surge, it's foreseeable that their market sales will continue to boom around the year-end. Many smart funds will still come in to acquire chips and continue to go long on the market.
Overall... I believe that at this position, even though our fund's overall holdings are relatively passive, there's no need to be overly pessimistic about the trend of the 'lithium battery' and even the 'new energy industry chain' main themes."
"Alright."
After listening to Yang Shengfan's analysis, Bao Yongquan nodded and stopped trying to persuade him.
In reality, he himself had been hesitant about whether to follow suit and reduce positions.
And just as the two were greatly shocked by the recently disclosed Dragon-Tiger List data, and were comprehensively analyzing the impact of 'Financial Street Fuxing Road' fund's continuous large-scale position reduction on the 'lithium battery' main theme, and thus further discussing and formulating subsequent trading plans.
Many other institutions with positions in the 'new energy' main theme.
As well as numerous speculative funds and retail investors who were following the Dragon-Tiger List data and the motives of the 'Financial Street Fuxing Road' fund, were also greatly shocked at this moment, and the discussion was exceptionally heated.
Among them, within the "Modu Ultra-short Squad" main speculative fund group, where Su Yi was.
After reviewing the Dragon-Tiger List data for several listed stocks in the "lithium battery" main theme, Xu Qiao speculated in the group,
"For over a week straight, Brother Su alone has reduced positions and taken profits exceeding 2 billion in capital volume on the disclosed Dragon-Tiger List. Now... it should be nearing its end, right?"
"Didn't Brother Su say before that his position in Kewan Real Estate only accounted for about 40% of his total position?"
Old Zhang replied after hearing Xu Qiao's words.
"According to Brother Su, if his remaining 60% position is in the 'lithium battery' and 'new energy' main themes, then the scale should be around 4.5 billion to 5 billion. With over 2 billion in position reduction on the list, the actual reduction might be around three to four billion, so it should indeed be nearing its end."
"Old Zhang, is your calculation... scientific?"
Old Wu said.
"Does Brother Su really have such a massive amount of capital chips?"
Old Zhang said,
"Based on the disclosed Dragon-Tiger List data, and Brother Su's previous position reduction data through block trading channels, it's pretty much consistent."
"Brother Su is truly amazing!"
Brother Chen couldn't help but exclaim.
"I remember a few months ago, Brother Su's capital volume shouldn't have exceeded 1 billion, right? Now it's approaching tens of billions, truly impressive."
Xu Qiao also said,
"At Brother Su's wealth growth rate, give him another year or two, and his capital volume could directly rival the richest person, couldn't it?"
"The larger the capital volume, the more difficult the growth,"
Brother Chen said.
"Do you think Brother Su can still speculate on 'monster stocks' now? With such a large capital volume, there are very few investment targets. With his ability, he can now only focus on main theme investments and implement medium-to-long-term strategies."
"That's true,"
Old Wu nodded in response.
Old Zhang chuckled and said,
"Before, I thought Brother Su was unparalleled in his ultra-short-term thinking and his ability to create 'monster stocks.' Now... seeing his massive movements, I only just realized that his medium-to-long-term investment approach and his main theme investments are also incredibly impressive."
"This can no longer be described as just 'impressive',"
Xu Qiao said.
"It's simply a peak of mastery."
"This round, the major institutional groups heavily invested in the 'lithium battery' main theme are truly the ones who have been completely harvested by Brother Su,"
Old Wu said.
"Now the sentiment of the entire 'lithium battery' main theme has completely collapsed, and the follow-on selling is virtually endless."
"Hehe, these institutions getting harvested this round... I'm quite happy to see it,"
Xu Qiao said.
"It serves these guys right for often relying on their capital advantage to control the market so tightly."
Brother Chen paused, then continued,
"Brother Su reducing positions like this makes me feel he's very bearish on the short-term market trend!"
"Mm, I have that feeling too,"
Old Wu nodded in response.
Old Zhang said,
"Anyway, I'll just follow Brother Su's line of thinking. If he significantly reduces positions, I'll take profits, clear my positions, and wait. And looking at the market trend, it really does seem precarious."
"There shouldn't be another 'stock market crash'-like adjustment, right?"
Xu Qiao said.
"But then again, with Brother Su reducing positions like this... it's always right to be cautious. Unfortunately, almost half of my position is locked up in Kewan Real Estate, and I can't move it even if I want to."
"That stock, Kewan Real Estate... it probably won't resume trading in the short term, will it?"
Old Wu said.
Xu Qiao replied,
"According to market news, it seems Kewan Real Estate's management plans to introduce Shenzhen Metro Group for asset injection, diluting the relevant shares held by Baoneng Group. There's definitely no hope of resuming trading in the short term. This round, Baoneng Group really fell into a trap; they bought so many chips but still couldn't outmaneuver Kewan Real Estate's management."
"You can't really say they fell into a trap,"
Brother Chen said.
"Recently, Modu's housing prices have started to skyrocket, and the fundamentals of the real estate industry seem to have truly reversed. From a fundamental perspective, Kewan Real Estate's stock is still relatively undervalued.
Coupled with the reversal of the real estate industry's fundamentals, the increased performance expectations brought by the 'spring' in the housing market, and the asset injection, Kewan Real Estate's share price will definitely surge after it resumes trading in the future.
From this perspective... although Baoneng Group didn't gain control of Kewan Real Estate Group, their investment will definitely yield significant profits. Large-scale profitable exit in the future is foreseeable.
So, what Brother Su said before about Baoneng Group's purpose, which was very likely to use public opinion to speculate on Kewan Real Estate's share price to rapidly increase the value of their holdings and earn profits through a surge in share price, is entirely possible."
"I hope so,"
Xu Qiao said.
"I bet 50 million on this stock."
As messages in the group rapidly refreshed, and several speculative fund bigwigs in the group discussed the Dragon-Tiger List data, Su Yi's position size, and his trading motives.
Su Yi looked at the total of 5.8 billion in funds that had been recalled to his account, a smile on his face.
After about a week of continuous large-scale market crashing.
His positions had been reduced to below 10%, with a total of over 500 million in chips still held, not yet fully divested.
And according to current market liquidity.
Even though more and more funds were following suit and selling during his continuous position reduction.
But he estimated that these last 500 million-plus chips should be completely sold off in one or two trading days, allowing him to complete his liquidation trading strategy before the arrival of 'Stock Market Crash 3.0'.
(End of Chapter)