Rebirth of the Capital Legend

"I hope so." Lu Xiangxiang nodded slightly and responded, "In fact, based on the fermentation of market sentiment in the past two days, observing the enthusiasm of off-market funds entering the market, the comparison between sentiment and incremental funds is still slightly below expectations. If the core theme of the market's 'big infrastructure' wants to achieve a sustained breakthrough trend, it is still a little difficult with the current market volume of 5000 billion in the two cities.

After all, the trapped orders above this core main line are still very heavy.

In addition, if the expectations of the bear market cannot be reversed and everyone believes that this is an oversold rebound, then as the subsequent market goes up and deeply touches the area where the locked-in shares are seriously accumulated, the profit-making funds in the market and the desire to stop profit and sell will become stronger and stronger.

What's more, the booming real estate market will also siphon active funds from the stock market.

This has led to the expectation of liquidity growth in the market being clearly insufficient!"

Although she decided to adjust most of the positions of the "Jufeng Future Growth" fund product she manages to the core theme of "big infrastructure", she still has considerable worries and concerns about the subsequent medium- and long-term trends of this core theme.

However, currently, various funds in the market have chosen the core theme of "big infrastructure".

Moreover, the fundamentals and performance expectations of industries related to the entire real estate industry chain and the corresponding leading stocks are indeed reversing.

So, in order to further increase the net value of the fund.

She had no choice but to follow the market trend, increase her positions in time and keep up with the market in this rebound atmosphere.

"If the market can maintain a volume of 5000 billion, I think... although the general rebound like today cannot continue, the main line of 'big infrastructure', under the strong underlying logic, has a high probability of going relatively independently." Yu Xiaolu said, "After all, under the core main line of 'big infrastructure', the underlying logic is recognized by more and more investors.

Even though market liquidity will not continue to increase significantly.

In other words, it is very likely that after a brief decline in hype sentiment, liquidity will decline again.

However, it is certain that as the future expectations of the "big infrastructure" main line become increasingly clear, its siphoning of funds from other main lines and other sectors of the market will become more and more serious.

What's more, according to the historical market trends in the past six months.

If the market is weak, institutional funds will become more and more concentrated and tend to invest in defensive sectors with greater investment certainty.

Also, from a technical point of view...

Currently, there are many stocks in the main field of "big infrastructure", including a number of core large-cap leading stocks.

The concentrated chip lock-up range is still far away from the current stock price. That is to say, at the current stock price, even if it goes up 30%, it will not reach the core lock-up area.

In the short term, the expected 30% upside is enough for us.”

"That's true." Lu Xiangxiang thought about it carefully and felt that Yu Xiaolu's analysis made sense. "If by the end of the year, the core stocks in the entire 'big infrastructure' main line generally have room for growth of about 30%, it would be enough if we can get this part of the profit."

During a bear market, investors' expectations are not high.

Naturally, their performance pressure is not that great.

According to the expectations of many investors who invest in their fund products, if the 'Jufeng Future Growth' fund product they manage can outperform the market and achieve an excess return of more than 30%, even if it exceeds everyone's expectations, they will be very satisfied.

"There is one more thing, I wonder if Mr. Lu has noticed it." Yu Xiaolu paused and added, "In fact, if you observe carefully, this round of real estate industry chain market explosion is obviously driven by Hong Kong-listed domestic real estate stocks. Over this period of time, the performance of many domestic real estate stocks in the Hong Kong stock market is also obviously stronger than that of A-share core real estate stocks. I feel that... the real core driving force of this round of 'big infrastructure' main line market does not seem to come only from 'Huayi Capital'. It seems that foreign capital is also building a large position in this main line sector and seizing the market pricing power of related core stocks."

"Really?" Lu Xiangxiang was slightly surprised, but she didn't notice this.

Yu Xiaolu nodded and said, "Trends and emotions can be deceiving, but volume cannot. The trend of domestic real estate stocks in the Hong Kong stock market in recent days has been much more abnormal, and the volume has exploded much more rapidly than before. According to the Dragon and Tiger List data, as well as the net value of the fund announced by their institution before, and the semi-annual performance reports of the leading stocks in the liquor, white appliances, and pharmaceutical sectors, and the data of the top ten shareholders of each stock, it can be seen that the vast majority of the holdings of this institution should still be in the A-share market.

Even though the institution 'Hua Yi Capital' has core stocks such as real estate and infrastructure in the Hong Kong stock market.

There is most likely a layout.

But it is definitely not the core major buyer force.”

In fact, just as Yu Xiaolu guessed...

When the main fund product "Hua Yi Expedition No. 1" managed by Su Yi stirred up the core main line of "big infrastructure" and frantically swept up stocks on a large scale in the A-share and Hong Kong stock markets, especially when the underlying logic of the entire "big infrastructure" main line became clearer and clearer, the real estate markets in various cities in the mainland became more and more hot, and the housing prices rose, the trend had already been established.

Some foreign institutions that focus on investing in the Hong Kong stock market.

For example, several stock investment funds under BlackRock Asia Pacific Investment Group and several stock investment funds under Aberdeen Asset Management Hong Kong City Investment Company... are also buying core stocks related to the "big infrastructure" theme, significantly increasing their holdings of domestic real estate stocks, as well as related cement, building materials and other stocks whose businesses focus on the mainland real estate market.

Of course, except for foreign institutions.

Some Hong Kong-funded institutions in Hong Kong have also generally realized this main investment opportunity in the "real estate industry chain" and are increasing their holdings in this direction.

"I heard that BlackRock is also significantly increasing its holdings of core real estate stocks such as Hengda Real Estate, China Resources Land, and Kewan Real Estate, as well as real estate industry chain stocks such as Huaxin Cement, Huaguo Building Materials, and Shenhua Coal. At the same time, its positions in financial stocks such as banks are also increasing." At this time, in the fund trading room of Hongyuan Capital in Hongcheng, core trader Shi Jindong said, "Mr. Zhang, I feel that this round of market is really fierce, and I think... we need to continue to increase our holdings in domestic real estate stocks, as well as building materials and financial fields."

"Even these big institutions have started to get involved..." Fund manager Zhang Yanjun sighed after hearing Shi Jindong's words, "It seems that our previous predictions about the market trend and our expectations for the core theme of the 'real estate industry chain' were indeed underestimated."

"That's right." Shi Jindong continued, "No one expected that this round of market would come so fiercely, and the fundamentals of the entire real estate industry chain changed so suddenly."

Zhang Yanjun smiled and said, "It's because everyone has misjudged the strength of the national policy before, and they don't believe that the policy will be so strong. In this round of real estate market, many institutions in our Hong Kong City are probably under-positioned, right?" "Yes." Shi Jindong nodded and said, "I guess not many institutions have much position in domestic real estate stocks. On the contrary, there are many institutions that are heavily invested in Cheung Kong, Sun Hung Kai, New World... and other related real estate stocks. These local real estate companies in our Hong Kong City seem to have nothing to do with the main line of 'real estate' this round. When domestic real estate stocks have risen by more than 30%, the stock prices have basically not moved."

"This is not surprising." Zhang Yanjun said, "After all, the core of this round of market expectations is the overall recovery of the mainland real estate market. Our Hong Kong real estate market actually has little potential. Unfortunately... our 'Four Major Families' have basically withdrawn from the mainland market in the past two years. Now it is naturally impossible for them to eat the cake of this round of mainland real estate market expansion. In this case, the stock price has no motivation and fundamental support to rise."

Shi Jindong nodded again and said, "I think so too. The funny thing is... many people in the market are still thinking about making up for the rise in these stocks, or are still doubting the underlying logic of domestic real estate stocks, and think that Huayi Capital, the institution that stirs up market sentiment, is just speculating blindly."

"Let them think so," Zhang Yanjun said. "The bears in the market are also bulls. The more funds that miss out now, the more likely it is that when the trend of fundamental changes becomes clearer in the future and the performance really explodes, these investors or institutions that are currently skeptical and bearish will come in to support the market."

"Mr. Zhang, how much room do you think there is for the current round of domestic real estate stocks and the mainland real estate industry chain?" Shi Jindong asked with bright eyes, "Do you think there is room for at least doubling?"

"Double?" Zhang Yanjun smiled and did not answer directly. Instead, he changed the subject and said, "Xiao Shi, how many cities and places in the mainland have you been to?"

Shi Jindong was slightly stunned, not knowing why Zhang Yanjun asked this. After thinking for a while, he said, "I have been to Yuezhou, Modu, and Yanjing. Among them, I stayed in Yuezhou longer."

"Then you should go around more and learn more." Zhang Yanjun said, "The mainland real estate market is much larger than our Hong Kong city, and the infrastructure construction is also more rapid. The demand space of the entire industry is extremely huge. Once the trend of the entire industry reverses, its explosive power is unimaginable.

Not to mention doubling the space...

Once the fundamentals of these domestic real estate stocks that have expanded wildly and have a comprehensive layout in the mainland real estate market are completely reversed, their future performance will have room for explosion by at least 5 times or even more than 10 times. Although the current size of Hengda Real Estate and Rongchuang Real Estate is small, the size of these two companies will be at least billion in the future. "

"Five times, or even ten times the space?" Shi Jindong was shocked. "Boss Zhang, isn't that too exaggerated?"

Zhang Yanjun chuckled and said, "Just wait and see if you don't believe me. I have a hunch that this heavy investment will be the most outstanding and brilliant investment record in our career."

He has worked in many cities in the mainland before and knows the huge space and potential of the entire market under the unshakable "urbanization construction" strategy.

Therefore, at that moment, the main market trends of the real estate industry chain in the two markets suddenly went into full turmoil.

He keenly noticed the investment opportunities in this field and asked traders to follow up with positions at the first opportunity.

Now, we see that foreign institutions are also following suit with all their might.

Moreover, the investment trend of the entire market has clearly changed.

His confidence in investing in the core line of the real estate industry chain is even stronger, and he dares to go all in and make a shocking and gamble investment decision.

Likewise, at almost the same time...

As more and more market institutions in both places realize the investment opportunities in the real estate industry chain.

Other astute individual investors, hot money in the international capital market, and retail investors are also changing their strategies and planning to increase their holdings in related positions in the real estate industry chain.

The shift in the entire market's capital group is increasingly stimulating market sentiment.

Moreover, on Friday evening, amid the expectations and attention of countless people, the U.S. stock market once again reversed the previous trading day's decline, reversing yesterday's decline and returning to a sustained upward trend.

Such a trend in the peripheral markets has made the investment sentiment in the two markets even more hot over the weekend.

This has also caused a number of core real estate stocks in the two markets to frequently appear on the hot search lists and hot discussion lists on major online stock exchange platforms.

All sell-side institutions have begun to issue investment research reports that show they are increasing their holdings and are optimistic about the market.

On the Internet, a number of financial bigwigs and investment bloggers have begun to study real estate stocks, and have published lengthy articles, collectively singing the praises of the corresponding real estate stocks.

Under the concentrated bombardment of bullish views from all sides.

Over the weekend, the emotions of retail investors were so aroused that they could not sleep. They were eager to buy in full as soon as the market opened on Monday.

However, such high sentiment did not actually bring much incremental funds to the market.

Nor did it make the core theme of the market's "big infrastructure" form an opening limit-up or a high-opening and high-closing squeeze situation due to changes in sentiment.

When Monday, August 8, arrived, the two markets reopened for trading.

After ten minutes of call auction and a brief five-minute trading break.

When the market really entered the continuous bidding trading period, the "big infrastructure" main-line related sectors, which had been highly promoted for two consecutive days last week, and their corresponding weighted core leaders, as well as hot concept stocks, instead opened sharply higher and then plunged in large volumes.

Countless profit-taking and various short-term speculators who got the upper hand.

Taking advantage of the high market sentiment at the beginning of the trading session and the huge influx of follow-up orders, they sold off their chips in a big way and reaped profits immediately.

Moreover, a large number of short-term profit-taking orders are pouring in again.

The index, which had opened sharply higher, was instantly dragged down, and before too many people could react, it began to plummet, causing countless people who had bought the highest index at the beginning of the session to be stunned for a moment, cursing in their hearts.