Rebirth of the Capital Legend

"In fact, it's not just us," said Li Shangfeng. "Other institutions in the industry are basically trend investors who only look at the performance expectations for the next one or two quarters. There are very few 'value investment' institutions that can truly hold stocks for the long term and hold a large position in core leading weighted stocks for more than one or two years."

Just as Wang Shujie said, the bull market in A-shares is short and the bear market is long.

Most of the time, the market lacks liquidity and valuations are suppressed at a relatively low level. The bull market comes and goes quickly, and if you hold a stock for a long time, it will be a complete roller coaster ride.

In addition, according to historical trends, there are only a handful of stocks in the entire A-share market that can survive the bull and bear markets and develop a long bull trend for many years. Except for a few stocks such as "Qianzhou Moutai", "Gree Electric Appliances", "Midea Electric Appliances", "Yangtze River Power", etc., other stocks cannot avoid strong cyclical fluctuations.

Therefore, trend investment can become a common trading and operation method for various institutional groups.

“There are many uncertainties in the market,” Wang Shujie said. “Institutions and investors who can see clearly the performance changes in the next one or two quarters are already very capable. As for investment cycles of more than one year… who can know what the market situation will be like in a year?”

Li Shangfeng nodded and continued, "So, we can't blame the investors in the market and the main institutions for being short-sighted. It's really that the cyclical volatility of our A-shares is too large. Whether it's the valuation of the core companies in the market or the liquidity, they are easily affected by market sentiment.

When market sentiment is good and bullish sentiment is high.

A very high market valuation can be given, PB and PE can be hyped up to the sky, and the price-to-dream ratio is no longer a problem.

When market sentiment is low, market liquidity is scarce, and investors have no confidence.

So even the best quality stocks, and the ones with clear earnings expectations, can still be valued at very low levels, and even the better the earnings, the worse the stock price trend.”

In his opinion, investing in the A-share market.

Market sentiment is the first factor to consider.

As long as the market's bullish sentiment is good, the tolerance rate for trading will be very high, and you can make money no matter what you do. But if the market sentiment is extremely bad, then even if you have done thorough research and even if the stocks you hold are undervalued, you will most likely lose money. This is completely beyond human control.

"Let's take the long view and short position." Wang Shujie pondered for a moment and said, "For the core theme of 'big infrastructure', we can take a longer-term view in logical analysis, and then when we build positions and trade, we can follow the market trend and adjust positions based on the actual market trend, and adjust reasonable stop-profit and stop-loss targets."

Market trends are not static, so their investment strategies naturally cannot remain static either.

In Wang Shujie's opinion, there is nothing wrong with being a trend investor, but in the logical analysis of the main market trends, one still needs to have a long-term vision and be able to understand the underlying logic behind the market outbreak.

After all, only in this way...

When the market enters a period of adjustment, or stock prices continue to rise, a bubble phase occurs.

Only then will you have an accurate assessment in your mind and will not be led by market sentiment and take profits too early when they should not, or have unrealistic fantasies during the stage of overly high bubble valuations.

"Well, OK." Li Shangfeng continued to nod and responded, "Boss Wang, in the Hong Kong stock market, the recent trend of domestic real estate stocks seems to be stronger than some real estate stocks in our A-share market. I am considering... should we make a two-place layout and buy some domestic real estate stocks in the Hong Kong stock market?

I compared the valuations of core real estate stocks in the two markets.

It is obvious that the core real estate stocks in the Hong Kong stock market are significantly more undervalued than those in the A-share market in terms of valuation level.

And in terms of the expected performance elasticity in the future.

Compared with the core real estate groups listed on the A-share market such as Poly Real Estate, Kewan Real Estate, Gemdale Group, and China Merchants Shekou, it is obvious that core Hong Kong-listed domestic real estate stocks such as Rongchuang Real Estate, Hengda Real Estate, Country Garden, Jingcheng Holdings, and Longfor Properties seem to have more explosive power.

Valuations are lower and expectations are better.

So, when the fundamental impacts are consistent.

It is highly likely that the share prices of these domestic real estate stocks listed on the Hong Kong stock market will be more elastic and have greater room for future growth!

Judging from the recent market trends, the buying behavior of buying funds in these domestic real estate stocks is also relatively resolute. "

"You only considered the expected performance explosion in the future and the elasticity of the stock price, but have you ever considered the liquidity difference between the A-share market and the Hong Kong stock market?" Wang Shujie took over and continued, "Why is there a huge discount in valuation and stock price for the same stock in the A-share market and the Hong Kong stock market? Why are the stocks of our A-share listed companies generally valued higher than those in the Hong Kong stock market? Have you ever thought about this question?"

Li Shangfeng nodded and said, "I have really thought about this question. In my opinion, the main reason for the price difference between AH is the market liquidity premium."

"Yes, it is the liquidity premium." Wang Shujie said with a smile, "This is also the fundamental reason why stock valuations are completely different in the bull market and bear market stages. Even though our A-share market is in a bear market now, the market liquidity is far greater than that of the Hong Kong stock market.

This is also a fundamental reason why the valuations of a group of stocks such as "Rongchuang Real Estate", "Hengda Real Estate", "Country Garden", "Jingcheng Holdings", and "Longhu Real Estate" are lower than those of "Poly Real Estate", "Kewan Real Estate", "Gemdale Group", and "China Merchants Shekou".

Since it is obvious that the valuation of individual stocks in the A-share market is more advantageous and the liquidity is greater.

So, when the fundamentals and impacts are consistent.

Why should we go to the faraway Hong Kong stock market to invest in Chinese real estate stocks whose gains are generally greater than those of similar stocks in the A-share market? "

"What Mr. Wang said makes some sense." Li Shangfeng responded, paused, and then said, "But I think that even if the liquidity of the Hong Kong stock market is relatively scarce compared to the A-share market, the valuations of these domestic real estate stocks are compressed and underestimated. In my opinion, the liquidity of the Hong Kong stock market can fully support the speculation of these domestic real estate stocks. What's more... the recent trend of these domestic real estate stocks, in terms of volume performance, is actually not much behind other real estate stocks in the A-share market.

In addition, looking at the trends of the Hong Kong stock market and the A-share market in recent days.

From the language of the disk.

It can be seen that there is a great linkage between the two, and the trends of the Hong Kong stock market real estate sector and a number of core domestic real estate stocks are clearly ahead of the A-share market real estate sector, playing a certain guiding role.

Of course, I guess this is also intentional on the part of the main funds concentrated in domestic real estate stocks in the Hong Kong stock market.

Moreover, I feel that the main force behind the Hong Kong-listed Chinese real estate stocks is the same as the main force behind the A-share market real estate sector and even the entire "big infrastructure" theme. And it is likely that it is the "Hua Yi Capital" institution that is being discussed quite a lot. "

"According to your point of view, if it is really Huayi Capital that continues to increase its holdings in domestic real estate stocks in the Hong Kong stock market and continues to lead the market trend..." Wang Shujie pondered for a while and continued, "Then there is nothing wrong with the layout in the two places."

"I think so too." Li Shangfeng nodded in response, "Moreover, the layout of two locations can disperse risks and make our positions more reasonable."

"In that case, let's execute the strategy you mentioned," said Wang Shujie.

Li Shangfeng said "hmm", and then conveyed the strategy results discussed by the two to the traders in the trading room, preparing for everyone to execute the new trading strategy tomorrow.

And when he issued a new trading strategy and changed his investment strategy and position building ideas.

The market time has reached 5 o'clock in the afternoon.

The Dragon and Tiger List data of the two cities were refreshed under the attention of countless investors in the market.

According to the updated Dragon and Tiger List data of the two cities, we can see that most of the stocks on the list today are from the main field of "big infrastructure".

And well-known hot money seats such as 'Qingchun Road', 'Four Seasons Road', 'Labor Road', etc. are all on the list.

Of course, right now.

Everyone's attention was not focused on these well-known hot money seats, but was unified on the "Fuxing Road" trading seat which continued to be on the list.

"Haha, the 'Fuxing Road' seat continues to be on the list." When seeing the 'Fuxing Road' seat appear on the Dragon and Tiger List Buying List, Xu Qiao, who was in the main hot money group of the Magic City Ultra Short Gang, couldn't help but laugh and said excitedly, "I said it, the main force of funds attacking the market today must be the 'Hua Yi Capital' institution headed by Brother Su, as expected..."

"Brother Su's courage is unmatched by ordinary people." Lao Zhang responded, "Today, the net purchase amount of the 'Fuxing Road' seat on the list is close to 8 million, and on the recent Dragon and Tiger List, Brother Su's 'Fuxing Road' seat has only net purchases on the 'Big Infrastructure' main line, with no signs of selling. This fully shows that... until now, the 'Huayi Capital' institution headed by Brother Su has been continuously increasing its holdings of the 'Big Infrastructure' main line."

"It seems that Brother Su will not give up until the core theme of 'big infrastructure' is completed." Old Wu also responded at this time, "This should be a good thing for the market. Of course, it is also a big benefit for us..."

"Hehe, that's right." Xu Qiao continued with a smile, "It's all thanks to Brother Su's control over the market that I was able to buy all the stocks I participated in today at the daily limit. I really made a lot of money today, and the market sentiment fermented quickly in the afternoon. I estimate that the premium will not be small when it opens tomorrow."

"Xiao Xu, your judgment of buying and selling points in this market has improved." Brother Chen praised at this time, "You did a really good job in today's market."

Xu Qiao smiled and said, "Thank you for the compliment, Brother Chen. It's all thanks to the good market sentiment!"

"The core theme of 'big infrastructure' has been established today, so it's basically all out, right?" Lao Zhang said, "I feel like tomorrow we can continue the trend. This wave seems to be a medium-term forecast. At least there will be swing profits, right?"

Old Wu responded: "Today the trend has been established, but the continuity depends on the follow-up buying. If the volume can be moderately expanded tomorrow or even in the future, and the buying follow-up is good, then we can indeed look at it from a high perspective, lock in the position, and conduct swing trading. But if the volume shrinks tomorrow, it is hard to say."

"Today, the market has increased its volume by nearly 300 billion," said Xu Qiao. "The market should not decrease tomorrow, right? After all, the sentiment is so good after the closing, and there are so many financial media promoting it. Not to mention how much off-market funds will enter the market, the active funds in the market should adjust their positions and continue to focus on the main line."

"It's hard to say." Brother Chen replied, "The emotional feedback after the market closes is sometimes not accurate. In other words, the emotions after the market close can only affect the first fifteen minutes of tomorrow's opening, or the first five minutes of trading. The subsequent trading trends still depend on the emotional feedback during the market and the profit effect."

"I think there is no problem." Lao Zhang said, "Yesterday's sell-off and this morning's sharp sell-off have cleared a lot of short-term profit-taking in the early stage, as well as the free locked-in shares. Now in the main line of 'big infrastructure', there are a number of popular core concept stocks and leading stocks with heavyweights. The upward pressure at this position is not great. As long as the sentiment supports it and the fundamentals are still improving, the probability of continued rise is very high. It is also foreseeable that buying will continue to increase in volume. What's more, today, the 'Huayi Capital' institution headed by the Su brothers has used the 'Fuxing Road' seat to continue to increase its holdings of the main line of 'big infrastructure' on a large scale. This is a major positive stimulus."

"Well, I don't think there is a big problem either." Xu Qiao said, "The market has come to this point, and the trend has been formed. There is no reason for it to be suddenly cut off. If the market fluctuates greatly tomorrow and there is an opportunity to buy at a low price, I will definitely continue to increase my position and buy."

"Haha, same..." Lao Zhang laughed and said, "I don't believe that the main theme of 'big infrastructure' can fall back under the current sentiment and favorable impact."

"Let's wait and see how the emotions develop and what the news is like tonight." Old Wu was much more cautious than the other two in terms of trading thinking and operations. He responded, "At this point, it's not good for the emotions to be too consistent, but it's also not good for them to be too divergent."

"Eh... the news about Huayi Capital continuing to increase its holdings of the core leading stocks in the real estate sector seems to have made it to the social media hot search list." Just as several people were discussing it enthusiastically, Brother Chen turned his eyes and suddenly saw the topic on the social media hot search list. He was surprised, "Brother Su's influence on the market seems to be getting more and more terrifying!"