Chapter 293 The Impact of Suspension
It is now February and the beginning of spring is approaching, but the chill has not yet faded, the weather is still cold, and the stock market is still trading the same way.
After the big drop last Friday, the market was hit by multiple negative news over the weekend, and the market was gloomy.
Whether it is individual stocks or indexes, every time there is bad news after a big drop, this has become the inertia of A-shares. There will always be a part of funds that are ahead of the times, and this is inevitable.
The political turmoil among the senior management of Banco de Sinclair and the collective reduction of holdings by the original major shareholders; Mexico's indefinite suspension of its high-speed rail project, and the number of IPOs issued in the last batch at the end of the year reached 24, far exceeding market expectations.
Among the multiple negative factors, the biggest negative news is the failure of interest rate and reserve requirement cuts, which dealt a heavy blow to the market.
On the 2nd, Monday, the Shanghai Composite Index gapped down to 3148.14 points, down 1.98%, and the experts' support of 3200 points was instantly broken.
Monetary policy has always been a major factor driving this round of increases. The failure of interest rate cut expectations has dealt a huge blow to market sentiment. Throughout the day's trading, the Shanghai Composite Index has always maintained a low-level fluctuation pattern.
With low weighting, the style has once again switched to the ChiNext side. Dongfang Wealth, Tonghuashun and Yinzhijie, which have continuously adjusted to the weekly support position, have rebounded today.
Theme stocks once again took up the banner of the index's advancement. A total of more than 2,000 stocks in Shanghai and Shenzhen stock markets rose, while 268 fell. Excluding ST stocks, more than 60 stocks hit the daily limit, and the number of stocks that hit the daily limit was only among some stocks with Chinese characters in their names, less than a dozen of which.
For two consecutive weeks, there have been sharp downward gaps on Mondays, with the performance differences among the three major financial sectors being the most obvious.
Last week, the three major financial sectors all hit the daily limit due to a sharp gap. Among them, the performance of securities firms, which were the leaders of this round, was particularly eye-catching.
However, despite today's gap down, the performance of the securities sector was much better than last week, and the sector as a whole formed a false positive trend.
Xibu Securities and Huanghe Securities both achieved a substantial upward trend after probing the bottom support level.
The shrinking trading volume and the false positive cross trend near the support level indicate that the securities sector is likely to bottom out in the short term.
The same is true for Dongfang Wealth, which has recently followed the securities sector.
Dongfang Fortune also opened low today at 38.08 yuan. The stock price maintained a green fluctuation trend only within three minutes of the opening. With the support of the daily 20-day line support and the weekly 5-day line support, it quickly turned red.
Within 15 minutes of early trading volatility, Dongfang Wealth's trading volume was stable. After 9:50, Dongfang Wealth began to gradually become stronger and its stock price rose rapidly.
In just two minutes, Dongfang Wealth quickly rose by more than 3%, quickly breaking through the 39 yuan price level.
At 10 o'clock, with the gradual increase in trading volume, Dongfang Fortune successfully broke through the 40 yuan price mark, with the share price at 40.66 yuan, up 5.58% and successfully regaining its footing at the five-day line price mark.
At 10:10, Dongfang Wealth even hit the daily limit price.
Dongfang Wealth, which has been bearish by many institutions recently, achieved a sharp rebound after a week of continuous adjustment, proving the resilience of its stock price.
After a day's trading, Dongfang Wealth's final share price fluctuated by nearly 12%, a sharp increase of 6.34%.
Oriental Fortune is the best performing of the three GEM stocks held, while the other two also performed well, all rising to varying degrees.
On the first trading day after the New Year, the ChiNext Index bottomed out near 1,400 points and rebounded, leaving a T-shaped K-line trend on the K-line. The trend on the first trading day of February was similar to that in January.
Today, the lowest point of the ChiNext Index was fixed at 1660.05 points, which was stronger than the first trading day in January.
After opening low and hitting the bottom throughout the day, the stock index quickly rose and eventually achieved a 0.97% increase. The stock index closed at 1696.83 points, just one step away from 1700 points.
The market for small and medium-sized enterprises remains strong. Although the Shanghai Composite Index is still in continuous adjustment, more than 2,000 stocks in the two markets closed in the green today, and the money-making effect of the two markets performed well.
With the increase in the money-making effect, the adjustment of the securities sector is nearing its end, and the adjustment of the Shanghai and Shenzhen stock markets is nearing its end.
The main factors that affected the sharp pullback of the index today were stocks with Chinese characters in their names. Directly affected by the negative news over the weekend, even CNR and CSR, which have always performed strongly, both hit their daily limit today, and a series of stocks with Chinese characters in their names fell across the board.
Of the two Junshi funds that had already fully expanded their positions in the last few trading days of last week, the one that suffered the most serious losses today was Zhongguo Jiaojian.
Zhongguo Jiaojian plummeted 8.96% during the day, with a loss of more than 20 million yuan in one day. Even with the surge in Dong Fang's wealth and Wu Peng's T-trading, these losses could not be recovered.
The stock market is like a train. Every investor needs to reach a different station. When some people get off, others will get on. The brokerage firms have completed their adjustments, and Chinese-character stocks began to adjust this week. All of this is unpredictable.
Fortunately, Gu Junhao knew the exact location of the terminal, so he was able to handle the adjustment with ease. He just needed to follow the train and get off near the terminal.
The gradual stabilization of the three major financial sectors was fully reflected in the following few trading days. The Shanghai Composite Index continued to maintain the volatile trend of highs and lows in January, and the financial sector played a role in maintaining stability.
In the following trading days of this week, small and medium-sized enterprises continued to perform very well in this process, and the index even attempted to hit 1,800 points during trading on Thursday.
The stock index has reached this point, the first trading day of this month, and the lowest point of this round has become clear.
On February 6, both the Shanghai and Shenzhen stock markets closed in the red, and Dongfang Fortune also ended a week of rising trends. This round of rebound in Dongfang Fortune's stock price once again set a new historical high at 47.47 yuan, continuing to lead the ChiNext forward.
The sharp drop in the Shanghai Composite Index since its rebound on Thursday and the further adjustments made by brokerage firms have also affected Dongfang Wealth.
As of Friday, Dongfang Wealth finally ended its upward trend and fell 5.56% during the day, with the stock price closing at 41.25 yuan.
Although the stock price fell sharply during the day, compared with the average purchase price of around 39 yuan that Gu Junhao bought it at, there was still a certain degree of profit, and the performance made Gu Junhao very satisfied.
By the evening, an announcement from Dongfang Wealth made the funds that had been laundered that day completely uneasy.
Dongfang Wealth announced in the evening: "It is planned to disclose a major event. According to the relevant provisions of the GEM stock listing rules, upon the company's application, the company's stock will be suspended from the opening of the market on February 9, 2015. The stock will resume trading after the company publishes the relevant announcement through the designated media. Investors are requested to pay close attention."
The moment he saw the suspension announcement, Gu Junhao smiled.
This sudden suspension of trading, without disclosing the specific reasons for the suspension, has left both the funds that fled and those that entered the market today somewhat stunned.
However, Gu Junhao knew the reason for his suspension, and I believe most of the big funds also knew it.
This is also the reason why Gu Junhao strictly required Xu Jianqing and Wang Ruoyu not to touch Dongfang’s wealth this week, even if it is intraday T.
If you don't know the specific day when the stock will be suspended and there is an expectation of suspension, the best way is to hold the stock so that you don't have to sell it at a loss. You must know that the current suspension rules are still quite confusing.
Many companies that were trading well in the morning might be suspended in the afternoon. The suspension of thousands of stocks after the stock market crash was even more random. This is how an irregular market works.
"Haha, I guess it's the acquisition of Tongxin Securities. This wave of good news is no less than the merger of CNR and CSR. Combined with its characteristics as a GEM constituent stock, speculation is inevitable."
The suspension of Dongfang Wealth is not only beneficial to itself, but also to Tonghuashun. Its suspension is equivalent to handing over the leadership of the Internet finance sector to Tonghuashun.
This can be seen from the daily limit of Tonghuashun on Tuesday. Affected by the rebound, Tonghuashun opened high and closed high on Tuesday this week, and the stock price finally hit the daily limit, although the subsequent trading days did not achieve a sharp rebound like the previous surge.
But after a week, Tonghuashun finally ended with a huge increase of 10.12%, and the stock price returned to above 60 yuan, closing at 60.38 yuan.
As the Chinese New Year approaches, some funds do not want to lock up their cash flow in suspended stocks, and instead choose to speculate on other leading stocks in the same sector. This is also normal.
The suspension of trading undoubtedly makes it more likely that some funds will attack Tong Huashun.
During the last round of increase, Tonghuashun’s highest price was 70.94 yuan, which is less than two daily limit increases away from the current price. I believe it will be able to break through soon.
The impact of Dongfang Wealth's suspension is not limited to Tonghuashun and the Internet finance sector. As the largest market capitalization stock on the ChiNext, it requires a lot of funds every day, which has a great impact on the rise and adjustment of the ChiNext.
While locking up part of the funds that are dumping the market, it also releases more bullish power. A large portion of this capital will inevitably continue to remain in small and medium-sized enterprises, which also eases the pressure on the rise of the ChiNext Index.
Subsequent transactions also proved Gu Junhao's prediction. The ChiNext Index and Tonghuashun only experienced a slight adjustment on the first day of trading on February 9, and then started to rise.
February 10, Tuesday; just like last Tuesday, Tonghuashun's trend was strong. The stock price bottomed out slightly in the morning and then quickly rose. Since then, it has been fluctuating near the daily yellow moving average.
At 1:40 p.m., Tong Huashun's share price began to increase slowly and entered the second rising stage. By two o'clock, Tong Huashun's share price had risen by more than 5%.
With the increase in trading volume, the stock price moved upward step by step. At 14:19, a transaction volume of nearly 50 million yuan pushed Tonghuashun's stock price to 64.87 yuan, hitting the daily limit.
Two minutes later, Tong Huashun's daily limit order exceeded 1 billion yuan, and the stock price hit the daily limit again. On the first two Tuesdays in February, Tong Huashun achieved the daily limit, which was a very peculiar performance.
The impact of Dongfang Wealth's suspension gradually became apparent in the following trading days. Tonghuashun opened sharply higher by 4.52% on Wednesday, and its stock price hit the daily limit again just 15 minutes after the opening, and has not opened again for the whole day since then.
The daily limit price of 71.36 yuan also broke through the previous high smoothly without any pressure.
On Thursday, Tonghuashun closed with another T-shaped board, and its stock price achieved three consecutive boards, completely ignoring the fluctuations of the broader market and the ChiNext Index.
Judging from the after-market Dragon and Tiger List, institutions were deeply involved in these three daily limit ups and were unusually active. On Friday, Tonghuashun once again closed with a big increase of 4.46%.
Tonghuashun's share price has surged 35.81% in one week and has reached 82 yuan. Since 2015, Tonghuashun's share price has risen from around 45 yuan to the current 82 yuan, and it is still the best performing stock on the ChiNext.
At a price of 82 yuan, the market value of Gu Junhao's holdings has reached 131.2 million yuan.
One stock can help you achieve financial freedom, and the charm of finance is undoubtedly revealed.
After the end of this week's trading, excluding the two-day weekend, there are only two trading days left before New Year's Eve 2014.
The stock market rebound is in full swing, as if spring is about to arrive.
This weekend, Dongfang Wealth unexpectedly released its 2014 annual report before the New Year and during the suspension period.
In terms of overall revenue, Dongfang Wealth's operating income in 2014 reached 612 million yuan, an increase of 146.31% over the previous year.
The net profit attributable to the listed company reached 165 million yuan, a significant increase of 3213.59% over the previous year, and the cash flow was as high as more than 236 million yuan. This series of data impressed the market.
Among the top ten circulating shareholders announced during the same period, except for the actual controller of Dongfang Wealth, major funds occupied six seats. Among them, two major social security funds were ranked after the actual controller, with a total holding of more than 3% of the total share capital.
Since the annual report was announced in advance and the shares were suspended from trading, it would be impossible for the top ten circulating shareholders of Dongfang Wealth to completely withdraw based on the recent trading volume.
Once the top ten circulating shareholders were announced, the bearish views of Dongfang Wealth by major analysts and media were refuted.
Amidst the cursing, these bearish media and analysts are trying to justify themselves.
"10 shares for 2 with 2 free, 0.6 yuan for every 10 shares, not bad, so there will be 140,000 lots."
Gu Junhao said to himself that although the two Junshi funds' holdings in Dongfang Wealth did not make it into the top ten shareholders, their holdings were still not small.
After the conversion, the share price of Dongfang Wealth will inevitably drop again. After the increase, the additional holding of 40,000 lots will be able to obtain more profits. For 0.6 yuan per 10 shares, the cash dividend is also a considerable amount.
He received a portion of the cash flow, increased equity, and expected rising stock prices. Gu Junhao was very satisfied with his operation as he increased his holdings against the market trend despite the bearish comments from experts.
After the financial sector stabilized last week, the Shanghai Composite Index entered a rebound phase this week, with five consecutive positive days in a week. The stock index rebounded from the lowest point of 3049.11 points to 3203.83 points, a surge of 4.16% in one week.
To sum up the trend of the Shanghai Composite Index in the past two weeks, it was too affected by policies. Last week, the index plummeted due to the failure of expectations of interest rate cuts and reserve requirement ratio cuts, and this week's five-yang line trend was also caused by policy stimulation.
The central bank recently stated that it will continue to maintain its loose policy, and on the 12th, which was Thursday this week, it released a small amount of money to rescue the market, resulting in the index successfully breaking through 3,200 points.
Once the policy is tightened, the stock index will perform very poorly, but once it is relaxed, it will be able to rise rapidly. The policy market is very obvious in the overall market.
Entering 2015, whether it is the regulatory authorities' investigation into leveraged funds or the changes in the central bank's monetary policy, these impacts on the stock market have made Gu Junhao, who is experiencing this round of market again, more seriously aware of the bull market and the stock market crash.
