"Market hotspots are changing faster and faster, and the sustained profit-making effect is getting weaker."
In the 'Modu Ultratrading Group' where Su Yi was, during the last two trading days before New Year's Day, Xu Qiao, noticing the persistently weak market trend, couldn't help but sigh,
"If this continues... I feel like the Shanghai Composite Index might not even hold 3400 points. The 'lithium battery' main theme, the 'new energy industry chain' main theme, and the major core themes of 'big finance', 'big infrastructure', and 'big consumption' have all been performing sluggishly recently."
"Indeed, the market's sustained profit-making effect has been getting worse recently,"
Lao Zhang said.
"There are no sustainable short-term leaders emerging. Limit up today, limit down tomorrow... Under the influence of short-term sentiment, the loss-making effect of taking on the highest positions is extremely strong. This is not a good sign."
Lao Wu responded,
"To be precise, market sentiment has been deteriorating ever since Brother Su massively cleared his positions in the 'lithium battery' main theme."
"You're right,"
Xu Qiao pondered for a moment and said.
"It seems Brother Su realized that market trends wouldn't be good at the end of the month, and at the same time, the 'lithium battery' main theme, after continuous surges, had fully met its medium-to-short-term expectations, which is why he cleared his positions on a large scale."
Lao Wu said,
"That should be the case. I have to admire Brother Su; his timing for entering and exiting the market is incredibly precise."
"But I guess the index isn't at risk of a sustained sharp decline, right?"
Lao Zhang said.
Brother Chen stared intently at the market's shape and trend, pondered for a moment, and said,
"Hard to say. Although during this period, the Shanghai Composite Index has retreated from around 3600 points to 3400 points, and this position is the lower edge support of the oscillating platform it previously broke through, the market's profit-making effect is getting worse, and trading volume is decreasing.
Once the chips accumulated and deposited above during the previous two stock market crashes loosen up, with the current market volume, it definitely won't be able to absorb it. So... if this continues, I believe the risk of a sustained sharp decline still exists."
"Regardless of whether the market index has a sustained sharp decline risk,"
Xu Qiao said,
"before Brother Su re-enters to long, and before market volume continues to be sluggish, it's very necessary to maintain a light position and constantly guard against market crash risks. At this time... there's no need to pursue high short-term returns; instead, it's about controlling drawdowns."
Lao Zhang said with a smile,
"Anyway, I only have 20% of my position left. I'll wait for the short-term market environment to improve."
"I feel like after 'Kewan Real Estate' was suspended, the entire real estate sector lost its momentum for continuous outbreaks,"
Lao Wu said.
"Looking around, currently, only the 'Baijiu' sector is still worth watching in the entire market. Speaking of which, the fundamental situation of the 'Baijiu' sector should have confirmed a reversal by now, right?"
Brother Chen replied,
"Looking at the performance of first-tier Baijiu brands like Qianzhou Maotai, Wuliangye, and Luzhou Laojiao over the past six months, their industry fundamentals have indeed significantly improved. However, it's probably too early to say it's a reversal; we can continue to observe. With the market being weak, there's no rush to build positions."
"'Consumption' is the direction institutions are operating in,"
Xu Qiao said.
"Compared to the 'Baijiu' sector, I still prefer the 'new energy industry chain'. If we're talking about future market prosperity and the intensity of market demand outbreaks, shouldn't the 'new energy industry chain' be a definite direction?"
Lao Wu said,
"With ample policy support and actual market demand outbreaks, the 'new energy industry chain' is highly certain to have high prosperity in the future. The only drawback of this current core theme is that after continuous surges for about a quarter, it has already fully realized future optimistic expectations, leaving little 'expectation gap' worth betting on!"
"Exactly,"
Lao Zhang said.
"Open cards are the hardest to play."
"However, the related core stocks in the 'new energy industry chain' have generally pulled back by 20-30%,"
Xu Qiao said.
"From this position, the risk-reward ratio should still be quite high, right?"
Lao Wu said,
"Anyway, I think we can wait a bit longer to see how the 'Huayi Expedition No. 1' fund, managed by Brother Su, builds its positions and in which direction it will intervene."
"Yes, I think so too,"
Brother Chen said.
"Let's see how Brother Su builds his positions next."
"I think Brother Su's position-building strategy definitely won't stray from the 'new energy industry chain' core theme,"
Xu Qiao said.
"After all, looking at the entire market, this line has the highest future certainty."
"Actually, the 'consumer electronics' sector is also pretty good,"
Lao Zhang said.
"Consumer electronics?"
Xu Qiao pondered for a moment and said,
"Although the domestic smartphone market's related demand isn't saturated yet, the growth intensity won't be as strong as in the past two years. Stocks in the 'consumer electronics' sector have expectations for continued future growth, but it's probably unlikely they'll see the multi-fold or even ten-fold increases of the past two or even several years, right?"
"The imaginative space is indeed limited,"
Lao Wu said,
"but the certainty is high. And looking at the recent stock price trends of 'consumer electronics' related sectors and core stocks, capital attention remains very high."
"We'll see after New Year's Day,"
Brother Chen said.
"In these last two trading days before the New Year, the market trend and the direction of main theme performance should not change much."
"Mm, we'll see after New Year's Day,"
Lao Wu responded, also agreeing.
And just as the major speculative funds in the group were all reducing their positions and holding quite pessimistic views on market trends.
Inside Nuo'an Capital in Modu.
In the trading department of the 'New Energy Industry Growth Mixed Fund Product', fund manager Yang Shengfan gazed at the continuously adjusting and shrinking market trend, seeing the core stocks of the 'new energy industry chain' main theme, especially the most core 'lithium battery' sector's leading stocks, which had generally pulled back by 20-30%.
Yet, he couldn't help but feel the urge to massively increase holdings in this main theme at this time.
"Xiao Bao, what do you think about 'Huayi Expedition No. 1', this hottest fund product recently..."
Yang Shengfan asked Bao Yongquan, the fund trading team leader.
"Given General Manager Su's previous operating style at 'Huayi Capital', in which market direction will they build positions?"
Bao Yongquan thought for a moment and said,
"Currently, the market fundamentals are good, and the main themes with high expectations should be the 'real estate related industry chain' and the 'new energy industry chain', right? I feel that if this fund product is going to invest in main themes, it definitely can't avoid these two major areas."
"Mm, I think so too,"
Yang Shengfan said with a smile.
"Manager's meaning is..."
Bao Yongquan was visibly stunned for a moment before realizing Yang Shengfan's intention.
"You want to continue increasing holdings in the 'new energy industry chain' main theme, seize related core high-quality stock positions, and wait for the 'Huayi Expedition No. 1' fund product to build positions and enter the market to lift us up?"
Yang Shengfan nodded and said,
"That's the idea. Of course, even if we exclude the reason that 'Huayi Expedition No. 1' might choose to intervene in the 'new energy industry chain' main theme when building positions and entering the market, purely from the perspective of market performance and trading... I believe this position is also suitable for increasing long positions."
"Shouldn't we wait a little longer?"
Bao Yongquan said.
"At this year-end juncture, major institutions in the industry adjust their positions frequently, strategies change considerably, and market fluctuations will be relatively more intense. Perhaps if we wait a bit longer, we might pick up cheaper, high-quality chips."
Yang Shengfan thought for a moment and said,
"As long as the expectation of a fundamental industry reversal is certain, the expansion of market demand is also certain, and the trend of price increases for major upstream core products is also certain, then timing becomes less important. For us, this position is quite suitable for buying."
"Alright,"
Bao Yongquan nodded.
He then turned and issued the relevant position-increasing trading instructions to the traders.
In fact, during this period...
Even though the market trend for the 'new energy industry chain' main theme has been relatively sluggish, and related core stocks experienced significant drawdowns after 'Financial Street Fortune Road' cleared positions on a large scale, looking at the entire investment market, the issuance of related fund products for 'new energy industry investment' is still continuously increasing.
At the same time, the number of investors subscribing to these fund products is also continuously increasing.
For the fund product they manage, even though its recent net value performance has shown a decline, the fund's scale has surged by nearly 20%.
This indicates that in the OTC market, many investors view this emerging sunrise industry.
Their recognition and approval are both increasing.
With so many new industry investment fund products intervening, and more and more off-exchange investor groups joining in.
Although Bao Yongquan believed that the timing for increasing holdings in core stocks of the 'new energy industry chain' main theme was not ideal, he did not deny that this core theme still had sustained upward momentum in the future market.
Relatively speaking, he also agreed with fund manager Yang Shengfan's personal views.
As market trading time progressed...
Amidst the discussions of numerous investors, speculative funds, and institutional managers.
There were quite a few investors who shared the same thoughts as the main speculative funds of the 'Modu Ultratrading Gang' and the product managers of the 'New Energy Industry Growth Mixed Fund'.
Of course, whether people were bearish or bullish.
Su Yi, at this time, maintained a calm demeanor, waiting for New Year's Day, and still hadn't issued any fund position-building instructions.
However, after he received news from Lei Kaishan.
The other party indicated that at the beginning of the New Year, on New Year's Day, they would expose negative information about Qin Song, the chairman of 'Jingcheng Holdings' group.
Su Yi's heart stirred.
He quickly transferred 1 billion yuan into his Hong Kong stock trading account, opened recently at 'Huaxin Securities', before New Year's Day.
And then naked short-sold a significant amount of 'Jingcheng Holdings' Hong Kong shares.
Under his naked short selling.
On Thursday, December 31st, the last trading day before New Year's Day.
Amidst a general surge in the entire Hong Kong stock 'real estate' sector, 'Jingcheng Holdings' stock price suddenly plummeted by over 5%, and sell-short orders on the trading platform surged rapidly.
"Huh... Is someone shorting 'Jingcheng Holdings' stock?"
As Su Yi was aggressively placing sell-short orders, far away in Hong Kong City, inside an investment company called 'Hongyuan Capital', a trader named Shi Jindong, who was also eyeing this stock, had a large position in it, and was firmly bullish on its future trend, believing that 'Jingcheng Holdings' would yield rich investment returns with the reversal of real estate fundamentals and the expectation of listing on A-shares and scale expansion, instantly noticed the unusual activity on the trading platform.
"What's wrong?"
Hearing Shi Jindong's voice, investment manager Zhang Yanjun hastily asked.
Shi Jindong continued to scan the trading trend of 'Jingcheng Holdings' and said,
"It's plummeting against the trend, with surging sell orders and instantaneous volume... The trend of 'Jingcheng Holdings' is clearly a bit abnormal."
Hearing this, Zhang Yanjun quickly switched his phone screen to the trading trend of 'Jingcheng Holdings'.
Seeing its continuous decline with increasing volume, his expression clearly became serious:
"In 10 minutes, the selling volume reached 20 million. This... is indeed a bit abnormal."
"Could it be that there's a definite negative piece of news?" Shi Jindong pondered.
Zhang Yanjun thought for a moment and said,
"Although the stock price is falling rapidly, the volume absorbing it is also very large, so it shouldn't be caused by negative news. Let's wait and see... According to our research data, in the past two months, housing prices in major core cities in mainland China have generally risen sharply. The core investment logic for real estate is solid.
Furthermore, 'Jingcheng Holdings' has the potential positive catalyst of listing on A-shares and possesses several high-quality development projects in Modu. Its valuation and market capitalization are clearly underestimated, supported by strong fundamental logic. So, no matter who is selling, there's no need for us to be overly nervous."
"Alright!"
Shi Jindong nodded, just about to breathe a sigh of relief.
But when his gaze returned to the stock price trend of 'Jingcheng Holdings' on the trading platform, he saw that its price, despite already plummeting by 5 points against the market, showed no signs of stopping its fall.
Instead, it further crashed with increased volume, and the decline on the trading platform instantly reached over 10%.
This instantly made his recently relaxed mood become extremely tense again.
And as 'Jingcheng Holdings' stock price suddenly and inexplicably plunged and flashed crashed, it wasn't just 'Hongyuan Capital's' traders, holding large amounts of shares, who were tense.
Other parties holding large amounts of this stock.
As well as the head of the 'Jingcheng Holdings' Group's securities department, responsible for monitoring unusual movements in their company's stock, whose expression also grew tense.
He immediately reported the relevant anomalies to his direct superior, which then quickly reached Chairman Qin Song's ears.
Qin Song watched his group's stock show a clearly abnormal trend, pondering for a long while.
Only then did he start using his connections to inquire about relevant news.
Then, half an hour later, after the Hong Kong stock market had closed and 'Jingcheng Holdings' stock price had plummeted by about 13% during the day, he learned that his company's stock had been shorted.
He knew the source of the short-selling institution was a domestic capital institution but wasn't sure exactly who it was.
When he realized this...
Almost subconsciously, he realized that he might have been targeted by a competitor.
But who was this competitor, and what exactly did they want to do? He still didn't know.
However, as an old hand in the business world and also the helmsman of 'Jingcheng Holdings' Group, he believed it would be relatively easy to release some positive news to stabilize the stock price.
So, even though he realized at this moment that someone was attacking the company's stock, he didn't pay enough attention to it, nor did he think about further investigating the source of the crisis.
And this... led to the subsequent turn of events, which for a time, completely exceeded his control.
(End of Chapter)