Rebirth of the Capital Legend

"Hua Yi Capital is really amazing." Zhang Yanjun, investment manager at Hongyuan Capital in Hong Kong, couldn't help but sigh, "It just reaped a lot of profits in the foreign exchange market, and now it's starting to make a killing in the stock market. How can this capital be so powerful? Every time it makes a move, the timing is so accurate."

"After careful analysis, we find that the mainland real estate market and the extremely undervalued mainland real estate stocks do have huge investment opportunities," said Shi Jindong, a core trader at the company. "With such an obvious opportunity, why didn't the main funds from all sides of the market tap into it and form a consistent market trend?"

"It's not that no one has dug for it, but that there is no consistent consensus on expectations," said Zhang Yanjun. "In the financial market, being a step early or a step late will not work!"

He vaguely remembered it was a month or two ago, or a quarter ago.

A very small number of investors in the market, as well as some institutions, have also expressed similar views that there are huge investment opportunities in the mainland real estate market.

But at that time, it was due to lack of confidence in the market.

There are also other reasons why housing prices in mainland cities have not yet fully started to rise.

This view has not attracted the attention of more investors, institutions and hot money groups.

As a result, the real estate sector in both A and H markets not only failed to outperform the broader market, but instead fell instead, lagging far behind the broader market.

"Indeed." Shi Jindong nodded slightly, "Expectations and consensus determine the height of the market and the timing of the outbreak. Expectations do not necessarily mean an increase, but when market funds form a unanimous consensus under strong expectations, the market is bound to be like a flood, unstoppable.

but……"

Shi Jindong paused, and then said, "For Huayi Capital to buy this share of funds so accurately at the outbreak point of the real estate market, it must be partly due to luck, right?"

"Many people also think that the previous large-scale shorting of the pound by this group of funds was luck," Zhang Yanjun said. "In the financial market, an accidental big profit can be said to be luck, but if you can make big profits every time and seize the opportunities, then it is not a matter of luck.

It is said that in the financial market, the money earned by luck will be lost by strength.

If the investment strategy of Huayi Capital and the legendary CEO Su had some luck, I think... the size of the fund of this institution would not have been able to grow to the current level. Besides... how many private equity institutions with a scale of tens of billions in the industry do not have their own hard power and unique skills?"

"The key is that this is too outrageous." Shi Jindong said, "This guy seems to have never made a mistake in judging investment opportunities in the financial market. If this continues... I'm afraid he will make all the money in the market."

Zhang Yanjun said: "That's not the case. If the amount of funds managed by this institution is larger, it will not be so easy to operate. In fact, as the amount of funds becomes larger and larger, the final rate of return, no matter how it is done... will be infinitely close to the trend of the market index.

After all, market liquidity is always limited.

I think this is also an important reason why this institution has not opened new investment funds or established new fund products.”

"He is an expert in both foreign exchange and stock market trading, and he is so good in both investment fields..." Shi Jindong said, "Whether in the mainland or in Hong Kong, among Chinese-funded institutions, he should be the only one like him, right? He is really amazing. No wonder so many bigwigs in the business world are chasing after him, and no wonder the premium rate of the over-the-counter share transfer of the fund product 'Hua Yi Yuan Zheng No. 1' is so high."

"That's true!" Zhang Yanjun sighed, with indescribable envy in his eyes.

"Except for the 'Hua Yi Yuan Zheng No. 1' fund product." Shi Jindong paused, and then said, "It seems that there has been no movement in the 'Hua Yi Cheng Yuan No. 1' fund product under this institution recently. Could it be that... Mr. Su and the main investment goal of this institution is to focus on the stock market in the future and temporarily give up the foreign exchange market?"

"It's not impossible." Zhang Yanjun said, "The foreign exchange market is different from the stock market. In the foreign exchange market, except for special events, the exchange rate trends of various countries generally fluctuate within a narrow range. This kind of narrow range of fluctuations has no investment value or speculation value.

Therefore, when there is no major special event breaking out in the foreign exchange market.

I think it is reasonable and correct for Huayi Capital to temporarily shift its investment focus to the stock market.

In the foreign exchange market, there are events like the 'British referendum to leave the EU' some time ago.

You may not encounter it once every three to five years.

If you keep focusing on foreign exchange trading and insist on trading during the garbage time when there are no event-driven events, then in the long run, your rate of return will definitely tend to be normal.

After all, we are doing financial transactions...

In a sense, it is all probability trading.

Since what you are trading is probability, then according to mathematical theory, the more you do it and the more frequently you do it, the closer your winning rate will be to 50% and the closer it will be to ordinary.

Therefore, I think that Mr. Su of Huayi Capital gave up the usual garbage time and only intervened in the market at important time points when important events broke out. This is actually a very smart approach. In the financial market... those who are good at waiting with empty positions are the masters who truly understand this market, and undoubtedly... Mr. Su of Huayi Capital is one of these masters. "

"According to what you said, Mr. Zhang..." Shi Jindong thought for a moment and said, "This institution is currently turning its main attention to the stock market. Does this mean that there are considerable investment opportunities in the A-share and Hong Kong stock markets in the second half of the year, and that the expected sustained market conditions are not bad?"

Zhang Yanjun said: "I think it can be understood this way."

"Then we..." Shi Jindong paused, and then said, "Do we need to follow up on our positions in a timely manner and increase our investment in the A-share or Hong Kong stock market?"

Zhang Yanjun said: "I think it is necessary to increase holdings in both markets. Moreover, in terms of the current A-share market and Hong Kong stock market, I think the investment cost-effectiveness of our Hong Kong stock market is even higher, and the consensus of market funds is also stronger."

The A-share market has just experienced a brutal bull-bear transition.

The dampened confidence of market investors will definitely not be easily restored.

In contrast, when the A-share market was experiencing a huge bull market, the Hong Kong stock market index did not rise much and did not overdraw too much future expectations.

Furthermore, the various funds participating in the Hong Kong stock market are somewhat different from those in the A-share market.

Zhang Yanjun believes that the Hong Kong stock market as a whole is still dominated by foreign institutions. The correlation between the overall market trend is closer to that of the U.S. stock market, but has certain differences with the A-share market trend.

And based on his research and judgment.

After a year or two of platform fluctuations, the U.S. stock market continues to set new highs.

This means that the bull market in the U.S. stock market, which has lasted for ten years, can continue, and with the arrival of a new economic cycle, in the new economic cycle dominated by "technology", the future expectations for the U.S. stock market are obviously still strong.

Since the bull market in the US stock market is still continuing, then the correlation trend between the Hong Kong stock market and the US stock market will continue.

The future outlook for the Hong Kong stock market should not be too bad, and it is very likely to break away from the influence of the A-share market and continue to rise.

Coupled with this is the increasingly scarce liquidity in the A-share market and the weak expectations of investors who are stuck in the quagmire.

He judges a period of time in the future.

As the Hong Kong stock market gradually improves, there will definitely be important northbound funds from the mainland, such as Huayi Capital, moving south in large numbers.

It is obvious that a large amount of funds will follow the trend and move south, which will also help push the Hong Kong stock market further higher.

Therefore, under the influence of many factors.

Zhang Yanjun has already made up his mind about his subsequent investment plans, and is ready to significantly increase his holdings of undervalued high-quality blue-chip stocks in the Hong Kong stock market, as well as core stocks in the real estate sector that are currently in the hot hype area, and high-quality Internet stocks that he continues to be optimistic about.

In the past one or two years, various investors have been focusing on the "mobile Internet".

Now the curtain has fallen.

However, Zhang Yanjun remains firmly optimistic about the future opportunities of "mobile Internet" and still believes that a number of domestic listed Internet companies will be able to further reverse their operating conditions in the future and achieve a double explosion in performance and revenue scale.

"I think so too." Shi Jindong chuckled and said, "Compared with the A-share market, the stocks in our Hong Kong stock market obviously have more valuation advantages and cost-effectiveness, and the entire market is more mature. I also think that this time, the large-scale southward movement of institutional funds by Huayi Capital and the violent increase in positions and speculation in domestic real estate stocks will definitely stimulate more institutional main funds from the mainland to move south.

After these funds flow south, they will certainly not just follow the trend and invest in the real estate sector as the main area.

As long as a large amount of funds come in, the liquidity of our Hong Kong stock market will increase.

Then, it is only natural that the valuation of the corresponding stocks will increase.”

Like Zhang Yanjun, although he has various doubts and suspicions about the institution "Huayi Capital" and the legendary President Su who can always accurately step on the market rhythm and hit the pulse of the market's main line of outbreaks, he is extremely confident in the future market trend. He also believes that at this time, they should take advantage of the cheap market valuation and the moment when the relevant hot main line has just started to pick up, and increase their positions significantly to grasp the high-quality chips at the bottom.

And just as Zhang Yanjun and Shi Jindong were discussing.

The same thing happened within Hongyuan Capital, Hongcheng, and other similar capital investment companies and asset management fund companies.

We are also analyzing current market trends and making corresponding adjustments to investment strategies.

Moreover, everyone's eyes almost unanimously began to look towards the real estate sector that had just been hyped up by the institution "Huayi Capital", as well as a number of domestic real estate stocks.

Of course, it’s not just Hong Kong capital.

A number of foreign institutions have always dominated the pricing power and market trends of the Hong Kong stock market.

At this time, attention was also focused on domestic real estate stocks in the Hong Kong stock market.

Among them, in Hong Kong, BlackRock Investment Fund's fund trading department, fund manager Anastasia was furious when she saw the abnormal movements of domestic real estate stocks in the Hong Kong stock market for two consecutive days, and the fact that the fund products she managed had no holding weights for this.

"Why are you so slow? Why is it that when housing prices in various cities in mainland China have reversed their downward trend and have been rising month-on-month for several months, our holdings in the 'real estate' sector are still zero?" Anastasia angrily threw the data file on the housing price trend analysis of major core cities in mainland China in the past six months to the ground, staring at Harit, the head of the fund strategy analysis department, "What are you studying all day? Can't you grasp such an obvious investment opportunity? Is life in Hong Kong too comfortable, so that you have lost your judgment and sense of smell in the financial market? If so... then I can give you a long vacation, and you don't have to come to work in the future."

"It's not that we have lost our judgment and sense of the market," Hallett explained, "it's just that the market didn't agree with the logic of the real estate sector before."

"Really?" Anastasia sneered, "Then why do you agree now?"

"This is just a short-term speculation of funds." Hallett said, "I don't think the 'real estate' sector can have a sustained market trend."

"It's a pity that you don't have the final say in the market." Anastasia said, "Is it the job of a strategy analyst to make subjective assumptions about the market trend? Harriet, I have to start doubting your ability to do your job. If I hear such subjective conclusions from you again in the future, I might consider changing someone to take on this position."

When Harriet heard her words, she stood there with an unpleasant look on her face.

After Anastasia scolded him, she was too lazy to pay attention to him anymore. She turned to the others and said, "I want all the institutional research reports and industry data on the main line of 'China Real Estate' in the past six months. Give it to me by tomorrow morning at the latest. Also... the latest strategic trends of the institution 'Huayi Capital' and the holdings data that can be found. Don't forget that."

After the previous battle over the pound exchange rate.

As the investment fund business manager of BlackRock Group in China, Anastasia has never really confronted this institution head-on in the financial market. But when she heard that the main force driving this round of real estate market trends was Huayi Capital,

There was no hesitation in my mind and I had already paid enough attention to it.

Of course, she is not the only one. Many foreign institutions investing in Hong Kong stocks have also turned their attention to Huayi Capital and are inquiring about the institution's next strategic move.

It seems that, accidentally...

Su Yi ordered everyone to adjust their positions towards the main line of "real estate".

It has already aroused the nerves of countless major funds in the market and opened up the bullish momentum of the market which has been sluggish for several months.