Chapter 422: Hot Subscription and Depressed Market Conditions
The day Su Mingyu came was Monday, which was already the third day of the subscription. It was also a working day, so Gu Junhao was quite busy.
The market performed well today, with the Shanghai Composite Index rising 0.54% throughout the day, once again breaking through the high of 3170 points of the previous trading day.
During the day, Gu Junhao was busy with work, while Su Mingyu used a computer to watch the stock market. Although he did not plan to participate in the trading, for some people who have traded stocks, watching the stock market, which others think is boring, is actually quite interesting.
For example, when some stocks rise sharply, investors in the stock comment area will appear to be extremely excited. When the stock price rises by two or three points, they will wonder whether it will reach the daily limit.
As for some stocks that have plummeted or are heading straight for the limit down, in addition to the thrilling trading scenes, the comment sections are also full of curses.
In the evening, Gu Junhao took Su Mingyu back home. After dinner, Su Mingyu did not stay for too long considering that there was a pregnant woman in Gu Junhao's family who needed care.
After the two chatted for a while, Su Mingyu returned to the hotel to rest. He was a little tired today. In the next few days, Su Mingyu would stay in Beicang for several days.
As he is about to graduate, he has relatively free time.
The next day, Tuesday, the hot subscription of Junshi No. 2 continued. However, A-shares, which had performed well in January, entered the process of exploring the second bottom starting from today.
Since Tuesday, after the Shanghai Composite Index hit 3174.58 points and failed to hit the pressure level for the third time, A-shares entered into a comprehensive adjustment.
During the week, only Monday had a positive market, while the other four days all closed in the negative market.
The market has been falling for four days in a row, and Xu Jianqing couldn't help but envy Wang Ruoyu's luck. This is simply a case of reversing to pick up someone.
By the time Junshi No. 2 had raised all its funds, the index had once again returned to the bottom near 3,000 points, which was undoubtedly good news for incremental funds.
In fact, this second bottoming out will cause much more damage to investors who do not have a deep understanding of the overall situation than the first bottoming out.
In the first round of bottoming out, although most investors were afraid, they were able to overcome their fear to some extent and appropriately buy at the bottom or add to their positions to seek a way out.
However, when the second round comes, profitable investments will want to keep their profits, investors who have untied their positions will be afraid of being trapped again, and those who are deeply trapped will be afraid of setting new lows.
A series of fears will cause them to lose chips during the second bottoming process.
During this week's decline, Vanke, whose stock price hovered at a low level, once again made its presence felt in front of investors.
On January 12, 2017, Vanke, which is well-known in the A-share market for its equity disputes, issued an announcement after a period of silence: "The company's former largest shareholder intends to transfer all of its Vanke shares to Shenzhen Metro Group."
Baoneng also quickly issued a statement the next day, saying: "We welcome Shenzhen Metro Group to invest in Vanke. As a financial investor, Baoneng supports the healthy and stable development of Vanke."
The entry of Shenzhen Metro has changed Baoneng’s attitude from seeking actual control of Vanke to financial investment in Vanke.
The former largest shareholder was eliminated and Baoneng completely surrendered; the battle for equity that lasted for a year and a half officially entered the second half.
Next, the only unstable factor is the belt. From what Gu Junhao knows, in the end it is Shenzhen Metro Group that actually controls Vanke.
Wan Ke’s Old Wang is completely out of the game. Although the belt seems to be an unstable factor now, a smart man like him is bound to make a very smart choice.
In a few years, even though he owed a huge debt, he would be able to live a carefree life, not to mention that these were his most glorious two years.
As far as I can remember, Daizi eventually transferred his shares to Shenzhen Metro Group. As for whether it was a profit or a loss, or the transfer price, I didn't pay much attention to it in my previous life.
As for Baoneng, it seems that it made tens of billions of dollars in the end. Who paid these tens of billions of dollars? Whose money did Baoneng make? It is worth thinking about for investors.
Vanke's current share price remains around 20 yuan. From the perspective of financial investment and the surge in blue chips before January 2018, it is actually worth buying.
However, Gu Junhao no longer plans to touch real estate stocks, and before January 2018, he will sell out all related stocks in the real estate industry chain.
2018 was the last glorious year for the real estate industry. Since then, it has lost its former glory. From the perspective of long-term investment, it is obviously inferior to the new energy industry chain.
The entire battle for equity seemed very chaotic, with funds from various parties involved. Old Wang mobilized all the connections and resources he could to fight against Baoneng's invasion.
But judging from the beginning and the result, perhaps Baoneng’s goal from the beginning was very clear, which was to clear Old Wang out of Wanke.
During the entire struggle, the former largest shareholder always sat on the sidelines and sometimes even stabbed Old Wang in the back. His magnanimity was very unreasonable, considering that his interests would be the first to be harmed by Baoneng's invasion.
Perhaps, the final result is what the original largest shareholder wants to see, or perhaps, Baoneng and even Belt are just pawns.
What Old Wang did made some people unhappy, so they found Bao Neng and kicked him out. In the end, Bao Neng got his hard work fee, and some people got the result they wanted.
Those who worked earned their hard work fees, and those who should leave left; as for equity, it was just a transfer from one hand to the other.
On January 13, 2017, the Shanghai Composite Index closed at 3112.76 points, ending the second week of trading in 2017 with a daily drop of 0.21% and a weekly drop of 1.32%.
The ChiNext Index fell below 1,900 points. The ChiNext Index, which had fallen for seven consecutive days, fell 3.31% in a week. High-ranking new stocks began to plummet sharply. The true bear market for the small and medium-sized start-up sectors may have just begun.
The top five stocks with the largest declines this week are all small and medium-sized start-up stocks. Among them, Kaier shares had the largest decline of 33.22%, and Weilong shares had the smallest decline of 19.96%.
For the ChiNext, even after experiencing a full-year correction in 2016, the current overall valuation is still as high as 59 times.
In a bull market, the investment atmosphere is good and no matter how high the bubble is, there will always be people who will pay for it. But in a bear market, investors become relatively rational.
Whether it is the housing market, the stock market or other investment categories, buying when prices are high and not buying when prices are low has always been the traditional investment thinking of Chinese people.
When investing in a bear market, Gu Junhao believes that it is best to buy stocks with lower price-to-book ratios, especially those with price-to-book ratios between 1 and 3.
If they catch up with the industry cycle or the outbreak of hot spots, these stocks will have a good increase. Even if they fall, these stocks, which are already close to the valuation, are relatively resistant to declines.
There are only two weeks left until the Spring Festival holiday. Judging from the decline this week, investors' sentiment is relatively pessimistic. At the same time, the atmosphere of celebrating the festival is also very strong in the market.
Junshi No. 2, which will complete its fundraising in two days, has raised 25.3 billion yuan before the end of get off work today, including the RMB investment entrusted by Jiufeng Trust again.
The Junshi Capital trading team perfectly broke down the previous US$600 million into smaller pieces and dispersed them among Hong Kong stocks and US technology stocks.
Even with the big pullback in global stock markets in December, the overall return rate of over 12% is still quite good.
In view of this, Xie Jun of Jiufeng Trust decided to entrust Junshi Capital with another RMB investment of 1 billion yuan when Junshi No. 2 started fundraising.
This is also the largest single subscription amount received by Junshi No. 2 since its opening for fundraising. For Xie Jun, this RMB investment is safer than the US dollar investment.
There is no other reason. There is no management fee charged if there is a loss. This is quite good. The reason why many big funds choose Gu Junhao is more based on this point.
In addition to Jiufeng Trust, some other trust institutions and even big clients such as family funds have come to subscribe to Junshi No. 2. The subscription amount of these big clients starts from 100 million yuan.
This is also the reason why Junshi No. 2 raised so much funds in these seven days. Institutional money always has more money than individuals.
Including the two days of last weekend, Junshi No. 2 attracted an average of more than 3.6 billion yuan per day. Although Gu Junhao has asked the staff involved in this fundraising to keep a low profile, the amount of funds raised every day is still widely circulated in the market.
There is no way. Gu Junhao can control the employees of his own company, but he cannot control the mouths of banks and customer groups. There are always some well-informed media that can find out how much funds have been raised.
Since Monday, a few media reporters have been waiting outside the office building where Junshi Capital is located every day. Whenever a subscriber comes out, they will go up to him to inquire how much they have invested.
The popularity was so high that Gu Junhao felt helpless.
With a week of continuous decline and low trading volume, most investors believe that in the bear market environment, people with large funds are unwilling to invest.
But in fact this is not the case. Looking at the A-share market throughout 2016, the investment in the primary market and the popularity of the private equity industry in the secondary market show that Gu Junhao has his own appeal, but there are more industry factors involved.
It just happened to coincide with the explosive growth period of the private equity industry.
"Okay, that's almost it. Let's end it early. The company will put 2.7 billion of its own funds into it, making up 28 billion yuan. The fundraising will end today." After get off work, Gu Junhao announced the end of fundraising without any warning.
He has been working seven days in a row since last weekend. The Chinese New Year is coming soon, and Gu Junhao does not want to work seven days in a row again. The recent non-stop work has been really tiring.
In addition, when he walked out of the company after get off work every day, he was surrounded by a group of reporters. Gu Junhao was somewhat uncomfortable with it. Some more unscrupulous media even followed Gu Junhao home, but fortunately they couldn't get in.
Although he has been interviewed by the media, Gu Junhao is not used to living under the spotlight. The frequent harassment from reporters has already affected his mood.
"Ah? It ends today? Aren't there still two days left?" Gu Junhao suddenly announced the end of fundraising, which surprised everyone.
"Well, it's over. That's it. 28 billion is enough. It's almost enough. I'm harassed by the media every day. I'm worried that it will affect the baby in my wife's belly."
"Uh, boss , you are too deceiving. Isn't this a perfunctory reason? You blame the media for the early end of the show."
"Haha, never mind. Everyone has worked hard these past seven days. I believe you don't want to work seven days in a row. So let's just leave it at that."
"It's hard, but it's exciting. We can do it."
"Okay, let's decide it this way. It doesn't matter to you. Our colleagues in the bank and the law firm have been working really hard recently. They are the ones who have been working the hardest." Gu Junhao said, looking at the people in the meeting.
Since last week, the custodian bank has dispatched a working group to work directly on-site at Junshi Capital. The law firm that cooperates with Junshi Capital has also sent a number of legal personnel to assist on-site.
"Haha, Mr. Gu, you're too polite. We are all fine." The leaders of the bank and the law firm said that they were fine and could continue fighting.
However, Gu Junhao didn't want to go on any further.
In seven days, the funds that needed to be raised have almost been raised. Judging from the diminishing returns of funds, it will be impossible to maintain this growth in the next two days, so today is already relatively quiet.
According to today's estimates, we can only raise about 20 to 30 billion yuan in the next two days of the weekend. In this case, we might as well add our own money.
Anyway, in addition to reserving some of the company's cash, more of it will be invested in the market.
The next two days will be a rare rest day before the Chinese New Year, so there is no need to continue spending money on a small amount of money.
Another benefit of ending early is that, just like the previous times, we can always maintain the idea that Junshi No. 2 is a very popular product. Just like hunger marketing, it is beneficial to the promotion of the brand.
"Okay, everyone; let our company staff handle the rest. Let's go to the next hotel. Thank you all for your efforts over the past seven days."
Then, Gu Junhao apologized and said, "As you all know, I have a pregnant woman at home. Next, my assistant and Mr. Wang Ruoyu, the fund manager of Junshi No. 2, will entertain you."
"Mr. Gu, you are too polite. This is within the scope of our work."
"Yes, Mr. Gu should go back if he wants to."
The external personnel who participated in the fundraising of Junshi No. 2 this time were all normal staff members of the unit. After a few leaders came for a round, they had not come anymore. Everyone could understand that Gu Junhao did not show up in person.
Li Xinyu and Wang Ruoyu were just asking everyone to go out, but Gu Junhao stopped Liu Ruihuan and told her that Zhang Yiru asked her to go to her house for dinner. This was what Zhang Yiru had asked before Gu Junhao left in the morning.
Since entering Junshi Capital last Saturday, Liu Ruihuan has been working here for seven days. During this period, Zhang Yiru came to see her twice, but there were too many people at the scene, and there were media reporters blocking the way outside, so Gu Junhao didn't dare to let her come again.
During the two visits, Zhang Yiru was caught on camera by reporters during one of the visits. It was the first time that Junshi Capital’s wife appeared in public with a big belly.
