Chapter 321 The Second Stock Market Crash Arrives
The market is in a state of panic, and foreigners are also getting involved, and will wait until the market opens on the morning of Monday, July 27.
Foreign media even revealed that the Securities Investment Fund has recently repaid some of its commercial bank interbank loans.
This has led to the market's greater concerns about the early withdrawal of rescue funds.
"Is a certain team going to run away?"
"I'll go, just make a profit and run away?"
"What should we do when the market opens today? Should we run away in advance?"
Shrouded in this sentiment, the stock indices and individual stocks in Shanghai and Shenzhen stock markets have performed extremely sluggishly since the start of the call auction, and investors' fragile nerves were fully reflected at this moment.
The Shanghai and Shenzhen stock markets both opened lower, with the three major indexes falling below the five-day line. Funds for individual stocks began to flee in panic again since the start of the call auction.
When the rescue funds once again used the two oil companies and bank stocks to maintain the index, the funds fleeing the Shanghai and Shenzhen stock markets became more and more eager.
In recent times, investors who have suffered continuous losses and big falls have formed a mental inertia.
Due to muscle memory, as long as the prices of the two oil barrels rise, investors will sell their stocks at a loss and flee without even checking the market. They will clear their positions with one click.
Under such circumstances, the Shanghai and Shenzhen stock markets plunged sharply today, with the Shanghai and Shenzhen stock markets falling 8.48% in one day. The index broke through 4000, 3900 and 3800 points, closing at 3725.56 points.
The ChiNext Index fell 7.40% today, closing at 2683.45 points.
Between two trading days, the six consecutive daily limit increases of the three major indexes were instantly swallowed up.
Thousands of stocks hit the limit down again as expected. Today, among Junshi No. 2's holdings, Wuliangye, one of the three largest weighted stocks, hit the limit down overnight, with its share price at 24.93 yuan. Maotai plummeted 8.07% to 201.52 yuan. Vanke A plummeted 7.85% to close at 14.20 yuan.
Within one day, Maotai Liquor Industry returned to a state of floating losses, while the profits of Wuliangye and Vanke A were less than 3%. Even Home De Lisboa, which had already been on a monster trend, fell 5.13% today.
Investors who participated in the transaction once again experienced a trend that no one was immune to, which was extremely depressing.
"Wuliangye will increase its position by another 50,000 lots, and Maotai Liquor will increase its position by 5,000 lots." Gu Junhao ordered slowly.
Vanke A's position is already quite high and is still in a floating profit state. There is no need to increase the position for the time being.
Although Wuliangye is also in a floating profit state, the market value of its holdings is not very high in terms of the overall market value. There is no problem in adding positions at the limit price.
As for the worry that a certain team will run away, it is of course nonsense at the moment.
In just one month, most of the trading volume in the Shanghai and Shenzhen stock markets was contributed by the rescue forces led by a certain team. How could they escape so quickly?
In this case, I will increase my holdings again, which can be regarded as cooperating with the market rescue efforts anyway.
Amid the sharp drop, rescue funds had to step in again to maintain the situation, which appeared extremely passive.
On Tuesday, with the entry of stabilization funds, the Shanghai Composite Index began to rebound after falling to a low of 3,537 points. The index bottomed out and rebounded to 3,600 points, and the decline narrowed to less than 2%.
Today, the ChiNext Index still fell sharply, reaching 3.78%. The Shanghai and Shenzhen stock markets had a daily turnover of 130 million yuan, and a total of 360 stocks in the two markets hit the daily limit.
In after-market news, a certain team made a large-scale buying spree today, purchasing a total of 21 stocks.
The China Securities Regulatory Commission spoke out three times within 24 hours to maintain stability, and its determination to protect the market was very firm. The central bank also made a very rare statement in support of the bulls before the market opened on the 29th.
The Hong Kong Stock Exchange has significantly lowered the transaction fees for northbound A-shares under the Shanghai-Hong Kong Stock Connect, and northbound funds’ enthusiasm for buying has increased significantly.
Individual stocks that violated the regulations in reducing holdings, such as AVIC Industrial, were investigated and punished one after another. Under the thunder, the short-selling team was restricted again on the 29th.
On the 29th, after a morning of sluggish performance, a certain team made another move in the afternoon, and the three major indexes were significantly pulled up. The Shanghai Composite Index rose 3.44% today, and a total of more than 300 stocks hit the daily limit.
When two armies fight, they are strong at the first blow, weak at the second, and exhausted at the third.
The previous rescue efforts were accompanied by thousands of stocks hitting the daily limit, but today only more than 300 stocks hit the daily limit. The reason is that there was no support from the volume.
Since the comprehensive rescue of the market on July 6, whenever the stock index performed poorly, rescue funds would come like a savior.
In the early days, retail investors cheered for the shorts to be defeated because of this thrilling rise.
With thousands of stocks hitting the daily limit several times this month, retail investors and even some small institutions can no longer bear this torture. Whenever rescue funds are raised, they do not think of fully cooperating as before, but instead run away.
Take advantage of the increase in rescue funds to run away, just to recover some losses, nothing else to think about.
This is the general performance of the market during the second half of July trading.
Under such circumstances, the strength brought by the market rescue has become weaker and weaker. The failure to reach the expectation of thousands of stocks hitting the daily limit today is a landmark event.
Today will be a watershed moment for the market rescue.
If nothing unexpected happens, the market rescue will continue, but the performance of the Shanghai and Shenzhen stock markets may not be as good as expected.
After the end of today's trading, there will be a certain impact on Junshi No. 2, that is, Wuliangye will be suspended.
Wuliangye, which hit the daily limit on Monday, rebounded slightly for two consecutive trading days, rising 0.51% today and its share price was 25.73 yuan.
Wuliangye’s suspension this time is based on the planning of issuing shares and implementing an employee stock ownership plan.
After today's suspension, Junshi No. 2 holds 150,000 lots of Wuliangye, with a total market value of more than 385 million yuan.
"That's good. Suspension of trading is also a good thing, so it can prevent the stock from falling." Gu Junhao said with a smile.
During this period, buying liquor stocks is just to reduce the decline and be safer, which is equivalent to hedging.
Even so, as of today's suspension of trading this month, Wuliangye still fell 18.83%. Fortunately, Gu Junhao did not intervene at the beginning of the month, so there is still some slight profit margin.
The effect of the rescue gradually became less obvious. In the following two trading days, the Shanghai Composite Index ended the turbulent July with two consecutive declines. The stock index finally closed at 3663.73 points.
After peaking at 5,178 points in June and falling 7.25% for the whole month, it fell again by 14.34% this month.
The ChiNext Index plunged another 11.15% following a 19.31% drop in June, closing at 2539.84 points for the month.
After the trading ended on July 31, which happened to be the weekend, the stock market crash that lasted for more than one and a half months dealt a severe blow to the market.
Whether new or old investors, they have lost great confidence in the market.
Most people have given up hope for the market trend in August, or even this year, and it is already a luxury to be able to make a profit.
The last time Junshi No. 2 was announced at the end of July, its overall scale was 3.126 billion yuan, with a net asset value ratio of 6.2535.
Affected by the sharp drop, the increase was less than 4 million yuan compared with last week.
This 4 million yuan increase is all due to the popular stock Home Depot.
Except for a big drop this week, Home De Lisboa shares remained strong in the other four trading days, with two consecutive daily limit increases on Thursday and Friday, and the share price has reached 32.66 yuan.
Home De Liss Holdings, which achieved a 58% surge this month, also pushed the market value of Gu Junhao's holdings to over 260 million yuan. However, after entering this week, Home De Liss Holdings' trading volume has increased significantly.
The increase in trading volume also means that Home Depot, which has been rising continuously with almost no adjustments, is accelerating into a stage-by-stage top position.
Even if it is a ten-fold stock, it is impossible to achieve that goal in just one round of increase.
After the weekend of August 1st and August 2nd, A-shares ushered in August trading.
Although rescue funds are still being frequently injected and the index has occasionally risen sharply, it has never been able to break through the big negative line on July 27, let alone launch another attack on the 4,000 point level.
On Friday, August 14, the last trading day of the first half of August, the Shanghai Composite Index hit a high of 4,000.68 points during the day, and then closed down 0.27% for the day.
At the same time, since August 3, the share price of Home Depot has continued to rise sharply, and as of yesterday, the share price reached a high of 51.99 yuan.
Home Depot, whose daily turnover reached 1 billion yuan but only rose by 0.7% , fell below the five-day moving average for the first time today amid obvious stagflation.
Today, Home De Lisboa Holdings Co., Ltd. had a transaction volume of 760 million yuan, a sharp drop of 5.2%. After a month of rising, it is very obvious that the stock price has peaked in the short term.
The highest price of this round, 51.99 yuan, is very unique and very consistent with the style of some old bankers and hot money.
Gu Junhao has successfully cleared out his holdings in Home De Lisboa shares yesterday and today.
This round of "monster stocks" brought a total of 320 million yuan in funds back to Junshi No. 2, with a profit of over 200 million yuan, laying a solid foundation for the decline of blue-chip holdings.
However, this monster stock has not yet finished its run, and there will be opportunities to intervene again in the future. You just need to wait for the opportunity.
The weird trend of Home Depot shares was one of the few bright spots in the market last month and this month.
Last month, Home Depot was all the rage, but this month another stock is competing for the spotlight.
Influenced by a certain team's placard-raising, Mei Yan Jixiang emerged as a dark horse this month and was awarded the title of "the king's woman".
The market has not been able to break through and recover the big negative line on July 17 for 10 trading days. From the daily line point of view, there were two cross negative lines with large volume on the 11th and 14th of this month, and the topping trend is very obvious.
The rescue efforts failed to restore investors' confidence as of Tuesday, August 18.
The Shanghai Composite Index fell by 6.15% with a large negative line that penetrated all the daily moving averages, showing a broken state.
Home Deli shares also fell continuously on Monday and Tuesday this week, with the share price falling below the 10-day line to 44 yuan.
The Shanghai Composite Index once again broke through 4,000 points on the second trading day of the second half of August, dealing a heavy blow to the market.
At this point, anyone with a little investment experience will know that 4,000 points will be a major threshold for A-shares in the future.
After the break, investors lost all confidence in the following three trading days and both markets continued to fall.
Friday, August 21st, is the last trading day of the week.
The Shanghai Composite Index barely closed at 3507.74 points, a sharp drop of 4.27% on the day and 11.54% in one week.
The ChiNext Index fell 12.42% this week, falling below 2,400 points to 2,341.95 points.
Judging from the weekly K-line, the decline of the two markets this week is similar to the largest single-week declines since the stock market crash on June 15.
This also means that the second bottoming out after the stock market crash has arrived. If the performance is poor next Monday, it will enter the second round of stock market crash this year until the policy bottom is broken and the real market bottom is found.
