Chapter 348: Primary Market Opportunities Brought by the Registration System
Every investor has unforgettable events in his investment career, such as a stock that made him a lot of money, a stock that made him a huge loss, and an unforgettable year.
The year 2015 was an unforgettable year for both new entrants and veteran investors with rich investment experience.
It is not an exaggeration to describe the stock market throughout the year with these words: magnificent, thrilling, life-and-death, and on the edge of a knife.
The stock market in 2015 saw the emergence of many new terms that investors will find hard to forget: leverage, margin trading, national team rescue the market, taking over for the country, securities financing, foreign exchange financing and so on.
Through the ups and downs of the stock market, the book vividly educates investors on the knowledge of the stock market.
These are the lessons brought by money. Some people remember them, and some people forget them.
The market's annual increase reached over 60%, while the three-month decline in June, July and August was as high as over 44%. The sharp rise and fall behind the data reflects a new round of wealth transfer and the sad history of countless investors.
Although this round of stock market decline has caused great harm to many people, there are also positive events for the subsequent investment market, and several of them are worthy of investors' summary.
First, with regard to the policies and measures at the regulatory level, supervision has become increasingly strict since 2015. For many violations in 2015, a large number of people eventually suffered the consequences in subsequent investigations.
The A-share market is a policy market, and investors must pay close attention to policy changes, especially several major industrial changes, which will bring great investment opportunities.
In Gu Junhao's view, the strict supervision of the A-share market can be divided into before 2015 and after 2015.
Strictly speaking, this year is still a very chaotic year. Some stocks have staged countless blatant farces, and the means of swallowing up the wealth of shareholders are extremely bad.
The most famous thing about him is probably that he will return to China next week? Although he is still doing well now.
Insider trading, collusion between various institutions, private equity and listed companies is very obvious.
There are countless cases of illegal share reductions, and the chaotic market has improved significantly after the stock market crash.
Second, the development of the bond market. During the stock market decline, the bond market performed relatively well.
The issuance of bonds by governments and companies began to increase significantly, and there were more and more convertible corporate bonds available for trading on the market. Investors began to pay attention to the relatively stable bond market.
The development of the bond market has provided an opportunity for the diversified development of the domestic investment market and also provided investors with more diverse investment options.
In his previous life, Gu Junhao had popularized to many investors how to make money from convertible bonds.
I have the impression that before 2019, ordinary investors were still in a very , and most investors didn’t even know what convertible bonds were.
You only need to open a securities account without investing any money. Whenever a convertible bond is newly listed, you can apply for it and sell it on the day of listing.
Generally speaking, it takes one to two months for a convertible bond to go from subscription to listing.
You need to invest 1,000 yuan for each winning ticket. If you don’t win, you don’t need to invest anything. The financial risk is very small.
On the first day of a new listing, the profit of a convertible bond ranges from tens to hundreds of yuan. Except for a very small number of convertible bonds that broke the issue price, most of the returns on the day of listing exceeded 10%.
There is no need to worry about convertible bonds that have fallen below their issue price. Just leave them as they are. There is a great chance that they will go up in value. If that doesn't work, you can convert the bonds into equity or eventually earn interest.
When not many investors know or understand it, the winning rate of convertible bonds is very high.
In a year, you can make thousands of dollars without any capital, which is a good way to make money at that time when the stock market was sluggish and the returns on A-shares were low.
And this is just the convertible bond issuance income of one account. I remember there was a statistic that the average annual convertible bond issuance income of each securities account should be between 2,000 yuan and 4,000 yuan.
A family with several people and several accounts could earn tens of thousands of yuan a year in free income, which was quite good at the time.
Third, the emergence of many new terms will help investors better understand the market's operating rules and risk characteristics, and enhance investors' market sensitivity and risk awareness.
When engaging in stock trading, the most important thing is to control risks. To put it simply, it means to control the drawdown of the account.
Only by controlling the account's drawdown can you ultimately achieve annual profitability.
Making 5 points today and losing 5 points tomorrow is not a good way of trading and you will end up with nothing in the end.
As for the fourth point, it can be seen as an extension of the third point, which is the education and training of individual investors.
The stock market crash made many investors realize their shortcomings in venture capital.
Under the intentional guidance of regulators, some investors have begun to pay attention to the learning of investment knowledge and skills, and to enhance their investment capabilities and risk awareness.
This has very positive significance for the long-term development of the stock market.
In his previous life, Gu Junhao graduated with a degree in finance. Although he had certain advantages in professional knowledge compared to more investors, before 2015, he was just a leeks with slightly larger amount of capital.
In his previous life, during the circuit breakers in 2015 and even 2016, it was common for Gu Junhao to hit the limit down.
It was the stock market crash and chaotic market in 2015, as well as the news that countless people lost their fortunes after the crash, that made Gu Junhao deeply aware of whether he should continue trading in this market.
Individuals are powerless to change the overall market structure. If they want to survive in this market, they must learn to adapt.
How should you respond and adapt to the rules and countless hidden arrows to stabilize your own profits.
After realizing a series of problems, Gu Junhao finally perfected his investment system after several years of hard work.
Eventually, you will be able to survive in the stock market with a stable profit model and become a big individual investor with a large amount of capital.
In this life, Gu Junhao was able to navigate the stock market in 2015 with ease and did not need to realize the popularization of this knowledge.
But Gu Junhao believes that through this year's market conditions, somewhere in this world, there must be investors like him in his previous life who will have the same experiences.
Retail investors are only limited by their slowness in receiving news and their limited cognition, but that does not mean they are not smart or good at learning.
On the contrary, most retail investors who can survive in the stock market for a long time have stronger thinking and learning abilities than many people.
After the final battle of the year on December 31, a large number of summaries and opinions on this year's market conditions appeared on major social media platforms, and countless investors posted their annual profit charts.
Although there are some profitable ones among them, looking at the overall profit chart, the performance of small retail investors throughout the year is terrible.
Part of the loss-profit graph even came to a sudden halt in June and July, and then it was a straight line.
Obviously, most of these investors are those whose positions were liquidated during the stock market crash, although it cannot be ruled out that some of them have not traded since they sold their shares at a loss in June and July.
Behind countless profit charts are the stock investors’ sorrow and tears for a year. However, compared with real estate investors, stock investors’ mentality is much better.
No matter how much you lose, as long as the principal is still there, you can continue to fight.
Judging from the comments on the Internet, although most investors believe that the bull market of 2015 will not reappear in 2016, they still maintain a certain degree of confidence in the overall market.
Most investors believe that this year's fluctuation range should be around 3,500 to 4,000 points. There are still certain opportunities for arbitrage within this range, and they hope to recover their investment next year.
Few investors have thought about withdrawing from the stock market after suffering huge losses, and have never thought about whether this market is suitable for them. This is the true psychological portrayal of investors.
They are both new and fun-loving, but in terms of mentality, they can be said to have the best mentality among all investment categories.
Although they will curse when the stock market is falling, they will do whatever they want after the market closes, which is very cute.
There are four days of holidays for New Year's Day, and the market will officially open on the 4th after New Year's Day. For some reason, in the past few years since his rebirth, Gu Junhao always feels that there are more holidays now than in the future.
In later generations’ impression, the holidays were adjusted back and forth, and in the end it felt like there was no holiday at all.
I don’t know if it’s a memory error or a difference in mentality, but in Gu Junhao’s impression, it is indeed so .
There is no traveling around as imagined, and the life of rich people is not always colorful. For Gu Junhao, it is much more comfortable to stay at home as a cat in winter than to wander around.
But in essence, most people who are good at stocks have rather boring personalities. Gu Junhao is one of them, he is more of a otaku.
Of course, Gu Junhao nowadays cannot enjoy the leisurely life he had before when he was a full-time stock trader. His few days of vacation are mainly spent on reading documents.
The investment division, which was reorganized from the fund business department, has officially entered the primary market research stage after several months of trial operation.
Before New Year's Day, Gu Junhao received several primary market investment research reports that looked pretty good. He took advantage of the holiday to study them at home.
In fact, the timeline has come to 2016, which is indeed not a good time point in terms of primary market investment.
On the one hand, since the monetary policy is still in a loose state, there is no shortage of money in the primary market.
In the past two years, many well-known projects in the previous life have received large investments, often tens of billions or even hundreds of billions of dollars. The money Gu Junhao has is not enough to qualify for entry.
On the other hand, as various industries have entered the bottleneck period, the head industrial chain has basically been close to perfection, and there are basically no opportunities to enter the market, so there is naturally no need to think about these.
However, the lack of opportunities for the top players does not mean that there is nothing to do in the primary market. This is the opportunity brought by the registration system.
Under the registration system, Gu Junhao will focus his investment opportunities in the primary market more on small and medium-sized enterprises.
It is undeniable that the formal implementation of the registration system has brought certain impacts and even adverse consequences to the secondary market.
But for some small and medium-sized enterprises, it is actually quite beneficial, at least it makes their financing more convenient.
Although most of them are mainly for cashing out through listing, it cannot be denied that there are still some entrepreneurs who are serious about doing business. The convenience of financing allows them to better focus on their main business.
For example, many small and medium-sized enterprises around Ningbo City successfully went public before and after the formal implementation of the registration system, such as Deye Technology and Xushen Company, with which Gu Junhao had a good relationship. It was he who helped Gu Junhao to solve the bridge financing last time.
These are relatively well-known companies, and there are countless other companies that are smaller in scale and market value after listing.
After listing, the market value of these stocks generally remains at around 20 to 30 billion yuan, and they are not very well-known among A-shares.
The reason why some of them were remembered by Gu Junhao was simply because they were companies around Ningbo City.
When it comes to buying stocks, in addition to some industry leaders, Gu Junhao still prefers stocks in Ningbo and areas near Jiangsu, Zhejiang and Shanghai.
Investing in stocks in developed regions, relatively speaking, has better risk resistance and specific performance. These are just considerations based on investment preferences and have nothing to do with region.
Regarding primary market investment, Gu Junhao's policy is to focus on some small and medium-sized enterprises in the new energy vehicle industry chain to see which ones have investment needs, and to make early arrangements based on the concept of specialized specialty small giants created by later generations.
It mainly focuses on mid- and downstream companies in the new energy vehicle industry chain, such as auto parts companies like Berning Auto Parts, in which I previously invested personally, and some companies in the new materials industry.
The main style is an industrial investment. Others are reborn to become Internet tycoons, but Gu Junhao is reborn to organize people to tighten screws by hand. He is so rebellious.
There is still no need to seek controlling stakes . Financial investment is the main focus, and a wide-ranging operation is carried out just like venture capital. Each company's investment share remains between tens of millions of yuan. This is currently the most favorable investment direction for Junshi Capital in the primary market.
As long as one or two companies go public, the investment cost can be recovered. It doesn’t matter even if the rest are all lost, it can be regarded as supporting local employment.
Even if these enterprises cannot go public, if they want to continue operating they will still improve the local employment environment to a certain extent.
Gu Junhao only hopes that the industrial companies he has invested in can hold on for a while longer when the economic environment reverses in the next few years, so that his "big money spending" in the primary market will not be in vain.
After reading the business reports of the investment department for two consecutive days, Gu Junhao found a number of companies with good quality among many companies that were interested in receiving investment.
Most of these companies are similar to Berning Auto Parts. With the development of the industrial chain, they have encountered better opportunities, but the founders are still hesitant about whether to expand production and increase investment.
Unsustainable expansion may lead to a break in the company's capital chain, but looking at the business that is delivered to the door, it is reluctant to give up, which makes people feel conflicted.
This also brought an opportunity to Gu Junhao. What Gu Junhao had to do was to solve their problems financially, just like he did in the beginning.
Different from start-up companies, these small and medium-sized enterprises basically have a certain history and their own business channels, and do not need too many resources from venture capital companies.
What is lacking is an opportunity brought by a financial investor. Under the premise of ensuring absolute control, with financial support, the company's fundamentals can achieve a qualitative transformation.
On the third day of the New Year's Day holiday, Gu Junhao felt a little bored after reading reports at home for two consecutive days. On this day, Gu Junhao, who had let go of his worries, accompanied Zhang Yiru back to Jiangbei.
After delivering New Year gifts to the children in the welfare home, the next step was to return to Mr. and Mrs. Zhang to celebrate New Year's Day together, just like before.
Speaking of which, Zhang Mingde is still the legal representative of Junshi Capital. Although he does not participate in the company's operations, Junshi Capital will pay him a normal salary every month.
Although Zhang Mingde, Aunt Huang and Lao Lu are ordinary people in life, it must be said that they are all benefactors to Gu Junhao before and after his rebirth.
Of course, the greatest benefactor is right beside him. Without Zhang Yiru, Gu Junhao may not be short of money now, but there is a high probability that he will end up repeating the same path as in his previous life.
