Rebirth of the Capital Legend

Just as Song Shaopu looked towards the market financial information platform.

An important piece of information about the property market was suddenly released on a market financial information website. The information indicated that the average housing price in major cities in the country has increased by more than 15% year-on-year, and the hot property market in various regions is still continuing. Real estate development companies and industry institutions all expect that the property market will continue to be hot. Stimulated by the active rush to buy by home buyers and investors, housing prices will most likely continue to rise for a long time in the future.

Upon seeing this message, Song Shaopu frowned slightly, knowing that his hopes and expectations would most likely be dashed.

However, when hopes and expectations are dashed.

He became more optimistic about the logic behind the explosion of the real estate sector and the subsequent market trends of the entire "big infrastructure" main line.

"It seems that the hot property market and the trend of rising housing prices can no longer be stopped." Song Shaopu said with emotion, "If the property market continues to be hot, it will probably siphon active capital flows in the financial market. It is estimated that the overall bear market situation will continue for a long time."

"Most investors in the market are not expecting a bull market," said Jia Yongxiang. "Whether it is from the perspective of time or space adjustment, it is difficult for the A-share market to get rid of the bear market in the overall situation. But even if the market cannot get rid of the bear market, we should still be optimistic about the local market.

What's more, the market has continued to shrink and fall to its current position over the past half year.

When many stocks are clearly oversold.

There are also opportunities for an oversold rebound or a sustained rebound.

In short, at this point, when the market is clearly oversold, it is unnecessary to remain pessimistic. "

"There will definitely be an oversold rebound from a technical perspective," said Song Shaopu. "The key lies in the strength and sustainability of the main line of 'big infrastructure'. Only when this main line comes out, our main fund 'Hua Rui Excellent Growth No. 1' will have better performance in the second half of the year."

The moment when he asked Jia Yongxiang to transfer most of the fund's positions to the main line of "big infrastructure".

It is destined that the net value performance of the fund product "Hua Rui Excellent Growth No. 1" will be tied to the market development of the main line of "big infrastructure".

That is to say, the fund product they are now in charge of.

It is already equivalent to a theme investment fund with the main line of "big infrastructure".

In this situation, his attention and hopes naturally shifted to the core theme of "big infrastructure".

"I don't think there will be any problem." Jia Yongxiang said firmly, "With the positive effects of the hot offline real estate market, the core theme of 'big infrastructure' will definitely come out after a short period of chip exchange and form long-term bull sectors such as white appliances, liquor, and medicine. After all, with the continued hot real estate market, related real estate industry chain stocks have strong performance expectations in the second half of the year and next year."

As the two were talking...

A group of retail investors in the market also seemed quite excited after seeing the newly released positive information.

"This good news comes at the perfect time. I don't think we need to be too pessimistic tomorrow!"

"How is this good news? The offline real estate market in various cities is booming, so isn't it obvious that housing prices will rise? The key is whether the booming real estate market can be transmitted to the stock market."

"I think it should be okay, right? After all, the stock market has been falling for so long, there is enough space and time."

"That's not necessarily true. I think the hotter the property market is, the worse the stock market will be."

"Why is this? The booming property market and rising housing prices can be transmitted to the stock market through the 'real estate industry chain', prompting the performance of listed companies in the relevant industry chain to improve? As long as the performance improves, the stock price will naturally rise with the expected support of the performance."

"Expectations and emotions are hard to predict. In my opinion, the core logic behind stock price increases is ultimately determined by capital. As long as capital continues to buy, stock prices will rise. Is every bull market driven by the performance of listed companies? No, the fundamental reason...is still the expansion of liquidity, driven by a huge amount of incremental capital."

"It is definitely money that drives stock prices up, that's true, but expectations and emotions are also important. Without expectations and emotions, where would the money come from?"

"But the booming property market will inevitably siphon liquidity from the financial market. Isn't this a disguised way of reducing the amount of active funds flowing into the financial market?"

"That's right. Alas...Based on this logical analysis, there is still no hope for the subsequent market situation!"

"If you ask me, it's useless to analyze so much. The most important thing is to look at the movement of big funds. As long as big funds can continue to buy, the stock price will naturally rise. If big funds don't want to buy, or feel that the subsequent market outlook is very pessimistic, then the market will not be good."

"Why look so far ahead? I just want to know whether the market will rise tomorrow."

"If the market is going to rise tomorrow... it will probably be difficult."

"Today's market trend is so bad, it will most likely continue to fall and adjust tomorrow. It won't be that easy to rise."

"This so-called positive news has no stimulating effect on the short-term market trend. After all, these news and data are nothing new. They are not important policy benefits released by regulators, central banks, the Ministry of Housing and Urban-Rural Development and other high-level departments. Moreover, these positive news were expected by market funds before. There is nothing beyond expectations. Otherwise, the main line of 'big infrastructure' would not have fallen like this today."

"That makes sense. I have to stop losses tomorrow."

"Don't think too much in a bear market. The trading volume of the two markets has dropped to 600-700 billion. Unless the trading volume reaches 1 trillion, the main line of 'big infrastructure' will not work at all."

"I agree. Volume is the prerequisite for market trends. Without volume, there will be no market."

"Without the money-making effect, how can there be volume? I think we should first create the money-making effect to attract more incremental funds and investors to enter the market, right?"

"The market is full of locked-in shares. Who would be so kind as to try to make money?"

"We can only rely on the 'national team', right? I remember that the 'national team' has not reduced its holdings since it intervened in the market during the stock market crash last year. Now the 'national team' holds trillions of funds. If they don't dominate the market and create a money-making effect in the market, who else can we rely on?"

"The 'national team' is not stupid. At this time, the macro-economy and related industries have no expectations. If they really use real money to help everyone out, is that really selfless? That's impossible!"

"It still depends on everyone to save themselves."

"Self-help? Market investors are a mess, how can they help themselves? Look at the data of the Dragon and Tiger List of the two markets today. Who are the ones who are dumping the market? They are all the hot money and retail investors who were lurking in the market before. The real main funds, such as Huayi Capital headed by President Su, did not reduce their positions today."

"I don't think it's a bad thing that retail investors and hot money are leaving the market in large numbers."

"Yes, the turnover here is quite good. I was optimistic about the main line of 'big infrastructure'. Now there are favorable incentives, I am even more optimistic."

“Just because institutional funds didn’t reduce their positions today doesn’t mean they won’t reduce their positions tomorrow.”

"To develop a major core theme, it is not up to any one fund to decide, but it still depends on the true direction of the combined force of market funds."

"Anyway, regardless of whether there are positive news or not, those who are chasing the main line of 'big infrastructure' today will basically have no chance of profiting and exiting tomorrow."

Despite the favorable stimuli, among the discussions among many retail investors, there are still very serious differences in their views on whether to be bullish or bearish on the market.

It's just that there are differences in opinions.

It is still much better than the generally unanimous bearish and pessimistic thinking of everyone before the announcement of the two cities' Dragon and Tiger List and the corresponding positive news.

As the discussion continues and time goes by.

Late into the evening, U.S. stocks continued to open higher and continue the bull market, which also gave domestic investors some confidence.

However, this recovery of confidence through the external market and small positive stimuli has not been able to support the overall recovery of market sentiment, nor has it been able to stimulate the entry of incremental off-market funds into the market, nor has it been able to prevent retail investors who were trapped in stocks related to the "big infrastructure" main line from locking up their positions and being reluctant to share.

When the next day, Thursday, August 8th, arrived.

The two markets opened lower despite the stimulation of the external markets hitting new highs.

After ten minutes of call auction, at 9:25, the Shanghai Composite Index, Shenzhen Composite Index and ChiNext Index all opened slightly lower.

And the index opened lower across the board.

The 'big infrastructure' main sector, which was responsible for almost all the funds received yesterday, performed significantly weaker than the market as a whole. In the call auction phase, there were also many retail investors and hot money who decisively stopped losses and cut their positions on the core hot stocks of the 'big infrastructure' main sector.

"The sectors related to the main line of 'big infrastructure' and their corresponding stocks led the decline at the opening, while the liquor, white appliances, pharmaceutical and banking sectors clearly showed a trend of opening flat or slightly higher." Seeing the opening situation of the two markets, Xu Qiao, who was in the main group of hot money in the Magic City's ultra-short gang, said, "This opening pattern, on the one hand, shows a certain degree of pessimism about today's market, and on the other hand, it also shows that the core main line of 'big infrastructure' is very likely to continue to adjust today, right?"

"I think today's opening pattern is slightly beyond many people's pre-market expectations." Hearing Xu Qiao's words, Old Wu laughed and responded, "Don't you think that the core theme of 'big infrastructure', the related concept sectors, and the core concept stocks, opened a little weak but actually strong?"

At the reminder of Lao Wu, Lao Zhang stared at the market, pondered for a moment, and replied: "It really feels like this. The check of 'Huaguo Zhongye' fell so sharply at the end of yesterday's trading. According to normal logic, it should open below 5% today, but it only opened about 2 points lower.

There are also several popular concept stocks such as 'Pingmei Energy', 'Capital Shares', 'Tianshan Cement', etc.

Yesterday's trend was basically burying people.

But if you look at their current market feedback, the negative feedback is not serious. Among them, Pingmei Energy basically had a ceiling and floor trend yesterday. Today, it should have opened at the limit down, or at least opened 7 points lower, but in the end, the stock only opened 4.5 points lower.

At the same time, the Hong Kong stock market opened simultaneously.

The negative feedback effect on the domestic real estate stocks was obviously smaller. The Hong Kong-listed stocks of 'Kewan Real Estate', as well as 'Rongchuang Real Estate', 'Hengda Real Estate', 'Jingcheng Holdings', 'Country Garden' and other stocks basically opened slightly lower, and there was no panic selling.

In general……

This small-scale negative feedback and the slightly lower opening trend can be fully explained for the funds in the market.

Moreover, the entire "big infrastructure" main line showed an increasing volume trend during the call auction stage. This also shows that during the call auction stage, other main funds were quite active in taking over the stop-loss orders in the "big infrastructure" main line area.

Overall, I am optimistic about the rebound trend of the main line of "big infrastructure" today, and I am also optimistic that the major market indices can stabilize at this position. "

"I agree with what Lao Zhang said." Brother Chen paused and responded, "In fact, think about it carefully, has the logic of the core theme of 'big infrastructure' changed? It has not changed at all. What has changed is the market sentiment and the chip structure of the entire main line. In this case... when the main line market has not yet fully fermented and the overall position is still at the bottom, then we should not be too pessimistic.

Of course, so much money was lost in the market yesterday.

There is a strong demand for short-term funds for stop loss and take profit today, but the market's incremental funds and active buying are slightly insufficient.

Therefore, it is unlikely that the 'big infrastructure' line will fall sharply today.

However, it is basically unrealistic to reverse yesterday's market trend.

Most likely, the market will fluctuate widely, continue to digest yesterday's short-term floating chips, and allow other major institutional funds to continue to build positions calmly. "

"Wait for yesterday's stop loss to hit a daily low." Xu Qiao chuckled, "Wait for this daily low to appear, and it will probably be another good buying point."

"I think so too." Old Wu responded, "Looking at the entire current market, I always feel that the main line of 'big infrastructure' brought about by Brother Su using his trading seat is the most cost-effective for investment and speculation. Stocks like 'Shenhuo Co., Ltd.', 'Pingmei Energy', 'Tianshan Cement', 'Beijiang Communications Construction', 'Capital Group', 'Yu Development', 'Bayi Steel', 'Linggang Co., Ltd.'... these popular concept stocks that have become recognizable this time will definitely not end at this high level. We can completely take over at a low level and make a second wave of the market."

Following a brief discussion among the few people.

The market trading time has reached 9:30, and the two markets have ushered in formal bidding and continuous trading.

As soon as the two stock markets began to fluctuate, the Shanghai Composite Index, Shenzhen Composite Index and ChiNext Index quickly fell further. At the same time, the liquor, white goods and pharmaceutical sectors rose, while new energy, film and television media, communications, chips and other technology sectors fell. The traditional sectors in the main line of "big infrastructure", such as real estate, building decoration, building materials, steel, coal, nonferrous metals, etc., continued to fall and led the market decline under the joint selling of short-term profit-taking, short-term stop-loss and free trapped shares.