Rebirth of the Capital Legend

With the help of continued bullish sentiment, more and more buying funds groups continue to take over and buy shares.

At 10:15 am, within the entire main area of ​​"big infrastructure", the real estate, building decoration, building materials, nonferrous metals, coal, steel and other sector indexes all rose from deep water in the early trading to the red market, and the increase in each sector index exceeded 1%.

And it is driven by the entire "big infrastructure" main line.

Several major core indices, including the Shanghai Composite Index, Shenzhen Composite Index and ChiNext Index, also successfully turned positive and rose.

However, due to the siphoning effect of the comprehensive rebound of the "big infrastructure" main line on the active capital groups within the entire market, the liquor, white goods, and pharmaceutical sectors that were once strong at the beginning of the session, as well as the Internet software, film and television media, electronic chips, new energy industry chain and other main line sectors that tend to be in the direction of "technology" that have been abandoned by the main funds recently, have fallen back a lot compared to the beginning of the session.

"This trend of 'big infrastructure' is really a complete reversal!"

Seeing that the overall market sentiment has warmed up, and more and more funds are following the trend to pursue the core stocks and related hot concept stocks related to the main line of "big infrastructure", at this time in Shanghai, inside the "Xino Private Equity Fund" company, the trading team leader Huang Qingyun of the "Xino Future No. 1" fund product trading room exclaimed: "Not only has the sentiment of the entire market reversed, but the volume performance has also improved significantly. This shows that there is incremental capital intervention in the off-site market, and it also shows that the core main line of the market, "big infrastructure", is very likely to be the future market development direction!"

"Today's market trend is really good." Men Xingtao, product manager of the 'Sino Future No. 1' fund, nodded. "After this wave of market cleansing, the chip structure in the main line of 'big infrastructure' should be more stable now, and the trend should be smoother than before."

"Yes." Huang Qingyun responded, "I think so too."

"Fortunately, we didn't follow the market's plunge yesterday." Menxingtao said, "I felt that yesterday's sharp drop was a trap to lure shorts, and it turned out to be true."

"In fact, as long as the expected direction of the fundamentals continues to improve, the main line of 'big infrastructure' will definitely come out." Huang Qingyun said, "Looking at the entire market at present, no other main line has such strong follow-up expectations as the main line of 'big infrastructure', and the current position of the core main line of 'big infrastructure' happens to be at a historical low, which is just right for large funds to deploy."

Men Xingtao nodded and said, "In that case, let's continue to increase our positions and go long!"

In the first half of the year, the main lines of the liquor, white goods, and pharmaceutical sectors exploded, but the funds they managed failed to seize this opportunity, resulting in the mediocre performance of the entire "Sino Future No. 1" fund product in the first half of the year. Now... a new excellent entry opportunity has arrived, and Menxingtao will never miss this opportunity to hold a large position.

"Yes." Huang Qingyun nodded and said, "Are the underlying stocks still the same checks as before?"

Men Xingtao responded: "Add a few more. Currently, the leading stocks in the industry with the strongest buying funds in the market, such as 'Poly Real Estate', 'Conch Cement', 'Shenhua Coal', 'Jincheng Coal' and other stocks, can all be included in our main increase in holdings."

"Okay." Huang Qingyun continued to respond.

He then turned to the traders in the trading room and issued relevant trading instructions.

At the same time as he issued the order to increase his holdings...

At this time, in the internal trading room of Hongyuan Capital, a core trader Shi Jindong was staring at the equally volatile Hong Kong stock market. He exclaimed at the continued rise and explosion of domestic real estate stocks: "Mr. Zhang, it seems that major funds are continuously forcing short positions in the domestic real estate stocks such as Hengda Real Estate, Rongchuang Real Estate, Jingcheng Holdings, and Country Garden. This trend... is too strong without any substantial performance benefits, right? Is this continuous surge forcing the main short positions in the market to cut their positions and cover their positions?"

"There shouldn't be many short-selling institutions on these domestic real estate stocks at the moment, right?" replied investment manager Zhang Yanjun.

Shi Jindong said: "At present, the institution with the largest number of short positions in domestic real estate stocks such as Hengda Real Estate, Rongchuang Real Estate, Jingcheng Holdings, and Country Garden should be the foreign institution BlackRock. However, compared with the previous quarter, BlackRock's short positions in domestic real estate stocks have been reduced significantly."

"Then this wave of domestic real estate stock market is not a simple short squeeze." Zhang Yanjun said, "No matter what the internal logic is, since the market trend has developed in this way, we should respect the market trend and continue to increase our holdings of corresponding domestic real estate stocks and increase our holdings in the real estate main line.

I have studied the situation of the mainland real estate market in the past two days, and also looked at the forecasts of major institutions on the future trend of mainland housing prices.

It was found that there are still big differences among people in their expectations for the bull market in the real estate market.

But at the same time, the enthusiasm of the market feedback was clearly beyond the expectations of many people.

This shows that the logic of the overall reversal of the property market is still in a process of gradual verification. It also shows that the entire real estate main market trend is most likely still in the initial stage of an outbreak.

As long as the mainland's property market continues to be hot and demand continues to grow, then... the explosion in performance will sooner or later be reflected in these domestic real estate stocks.

What's more, real estate development is an industry with high leverage attributes.

Performance elasticity is high.

This provides more room for speculation on stock price increases.

I think these fundamental reasons are the key factors for the continued bull market of domestic real estate stocks and the continuous short squeeze in the Hong Kong stock market recently.

Of course, it is also true that some major funds are deliberately creating this bullish atmosphere and deliberately guiding other fund groups in the market to short sell domestic real estate stocks. At present... in the market, are there any relatively consistent views on this major fund that is wantonly buying and continuously shorting domestic real estate stocks? "

Shi Jindong thought for a moment and said, "In the current market, many institutions predict that the funds behind this round of large-scale buying and short squeeze of Hong Kong-listed domestic real estate stocks are most likely from Huayi Capital."

"'Hua Yi Capital'?" Zhang Yanjun asked in surprise, "Are you sure it's this institution?"

Shi Jindong responded: "I think the probability is that the recent trend of our Hong Kong stock market, especially in the real estate sector, the trend of these domestic real estate stocks is very closely linked to the trend of real estate-related stocks in the mainland A-share market. They are basically moving in sync. According to the Dragon and Tiger List trading data released by many core real estate stocks in the mainland A-share market a few days ago, it can be clearly seen that it is Huayi Capital, an institution, whose fund product called Huayi Expedition No. 1 is continuously buying. This is enough to show that Huayi Capital is leading this round of real estate market and forcing the Hong Kong stock market to short the domestic real estate stocks."

"This institution made such a big splash in foreign exchange trading just a month ago," Zhang Yanjun said. "I didn't expect that they would move into the stock market now. It's such a grand move!"

"If it is confirmed that Huayi Capital is leading this round of real estate market." Shi Jindong said, "What is Mr. Zhang's opinion on this round of market and what is his prediction? Where can this round of real estate market go? At present, Hengda Real Estate, Rongchuang Real Estate, Jingcheng Real Estate, Kewan Real Estate, Country Garden... these domestic real estate stocks have generally risen by more than 30% from their lows in just a few trading days. Can we really expect a doubling of the market?"

Zhang Yanjun said: "To judge the height of this round of market, we must first analyze the improvement of the mainland real estate market and judge the specific trend of housing prices. According to the various market data and market research we have obtained, it is obvious that mainland housing prices are in a new round of explosive cycle.

If it is expected that housing prices in the mainland will generally double from their low point within one or two years.

So, in a good market environment.

As several domestic real estate companies that are expanding rapidly and have advantages in nationwide layout, their revenue and profit explosion will never be lower than the increase in housing prices, and may even be several times higher than the increase in housing prices. "

"Do you think that the current housing prices in the mainland will double in the next one or two years?" Shi Jindong asked. "Compared with the GDP growth rate and the growth of residents' income, it seems that it is still difficult to achieve the goal of doubling the housing prices. In addition, the mainland real estate market has always been a highly regulated market. Whether the market is overheated or overcooled, the intensity of policy supervision will be immediately strengthened, resulting in unpredictable trends."

Zhang Yanjun laughed and said, "Even if it is a regulated market, it is difficult to stop the trend. When market confidence is overflowing, it is also regulated. Everyone's desire to buy stocks will be stronger. Compared with the housing price-to-income ratio of our port city, the mainland real estate market obviously still has huge room for growth, and the mainland's urbanization construction road also has huge room for improvement. In other words... the 'big infrastructure' strategy advocated in the current financial market is obviously feasible from a macro perspective."

"Isn't it too optimistic?" Shi Jindong said with some doubt.

At present, although their holdings in domestic real estate stocks are already considerable, they are far from being heavy holdings.

Therefore, facing the forced rise of domestic real estate stocks, they are currently somewhat embarrassed.

They want to continue increasing their holdings, but they are unable to make up their minds to pursue higher prices when almost all domestic real estate stocks have seen short-term gains of more than 30%.

I want to reduce my position and lock in profits, but I'm afraid of selling out my chips.

But if you hold the position without changing it, you are worried that the corresponding stocks will continue to soar and you will miss the opportunity to grab market profits by investing heavily.

"Whether we are optimistic or not, the market has the final say," said Zhang Yanjun. "We cannot speculate subjectively on how the market will go. We must respect the market trend and follow the buying funds to make timely changes in trading strategies. This is the right way to trade. Since market funds have chosen to continue to go long violently at this position, we should just follow them."

Shi Jindong asked: "Mr. Zhang means... that we continue to increase our holdings?"

"Yes, continue to increase your position." Zhang Yanjun nodded and said, "At this position, it is better to make a mistake than to sit back and wait and see and let go of the opportunity.

From a short-term perspective, there are many domestic real estate stocks in the market.

With no obvious changes in other real estate stocks, the continuous increase of more than 30% in just a few trading days is likely to lead to a decline and adjustment.

We can consider it from a long-term perspective, as the mainland real estate market has undergone tremendous changes and housing prices are rising steadily.

This continuous short squeeze and rising trend is supported by fundamentals and has a sustainable logic.

Also, from a long-term perspective, with the expectation that mainland housing prices will double, the 30% or so upside potential for domestic real estate stocks is not worth mentioning at all.

If housing prices in the mainland generally double.

The share price of these domestic real estate stocks can at least double, or even triple or quintuple.

We can’t just think in terms of short-term logic, we still need to have a broader perspective and use long-term logic and fundamental logic to work backwards.”

"Okay." After listening to Zhang Yanjun's words, Shi Jindong nodded slightly and said, "Then let's follow your wishes, Mr. Zhang, and continue to increase our holdings."

After saying that, Shi Jindong immediately began to direct other traders.

Using the funds in the account, he continued to go long on domestic real estate stocks in the market and bought a large number of corresponding stock chips.

With the unusual movements of almost all real estate stocks in the mainland and Hong Kong markets, many major institutions in the two places continued to buy and follow suit.

In the two markets, as market trading hours progress.

All real estate stocks, especially some real estate industry chain stocks that are closely related to the development of the mainland real estate market, are rising more and more fiercely.

At 10:38 am, 'Golden Land Group' hit the daily limit.

At 10:47 a.m., "Beijiang Communications Construction" hit the daily limit, "Huaxin Cement" and "Huaxin Building Materials" both hit the daily limit, and a number of heavyweight infrastructure stocks with "Hua" in their names, including "Huazhong Metallurgical", "Huajiao Construction", "Huazhou Construction", "Huazhou Railway Construction", "Huazhou Railway Construction"... rose violently.

At 11:02 am, on the Hong Kong stock market, the share prices of the three musketeers, 'Hengda Real Estate', 'Rongchuang Real Estate' and 'Jingcheng Holdings', all rose by more than 10% during the day.

At 11:13 am, 'Huaguo MCC' hit the daily limit, completing a reversal of yesterday's trend.

At 11:19, near the closing of the midday session, many popular stocks in the market's "big infrastructure" main concept, such as "Shenhuo Shares", "Tianshan Cement", and "Capital Group", all hit the daily limit. In the entire "big infrastructure" main field, the real estate, steel, coal, nonferrous metals, building decoration, and building materials sector indexes all rose by more than 2.5%. Among them, the real estate development sector index reached a daily increase of 3.63%.

Finally, when 11:30 arrived, the two cities closed at noon.

The three major indices, Shanghai Composite Index, Shenzhen Composite Index and ChiNext Index, all closed higher. Among them, the Shanghai Composite Index rose by more than 1.5%, and the CSI 300 Index rose by more than 1.73%, fully completing the reversal of yesterday's trend.

Then, after the two markets closed at noon...

The bullish sentiment of the entire market is becoming more and more intense. On and off the market, more and more investors, as well as major institutions and hot money, have further focused their attention on the extreme reversal, the "big infrastructure" main line hot sector, and related hot stocks that have completed the counter-attack trend.