Chapter 432: First Harvest of US Dollars
There are more and more low-priced stocks, and a sudden flash crash of an individual stock during the trading session, heading straight for the limit down, is a major feature of the stock market in 2018.
It’s not that the leeks don’t work hard, nor is it that the leeks are not vigilant. Maybe a certain stock target was doing well a few days ago, and the trading in the morning of that day was also normal, but the stock price may fall to the limit at the moment of opening in the afternoon...
At this point, it is too late to sell to stop the loss.
This is what an extreme bear market situation is like. Except for a very few sectors and individual stocks, it becomes particularly difficult to achieve stable profits.
For a certain stock, you may be making profits today, but you may be stuck in a deep market tomorrow or after a few trading days, and the market trend will have no sustainability at all.
In this kind of market, for ordinary investors, the best way is to reduce trading.
The Shanghai and Shenzhen stock markets fell for four consecutive trading days, ushering in February 2, Friday, which was also the last trading day of the week.
In the morning session, the Shanghai Composite Index jumped downward slightly, opening at 3419.22 points. The Shenzhen Component Index and the ChiNext Index opened lower simultaneously.
Although it was only a small downward jump, the index also left a gap.
After having fallen below the 5-day, 10-day and 20-day lines in succession, the Shanghai Composite Index's gap-down opening caused a panic on the market.
At 9:30, after trading began, the Shanghai Composite Index fell rapidly, falling to a low of 3388.86 points, breaking the 3400 point mark.
On the morning of the fifth trading day since the correction, the Shanghai Composite Index fell 200 points, and the extent of the correction was still quite severe.
The Shanghai Composite 50 and CSI 300 indices, represented by the leading blue-chip stocks, were still in a state of volatility . After four trading days of sharp sell-offs, the decline paused today.
Today, Gu Junhao did not continue to go to the trading room to check the market. After two months of circulation, the funds from Xu Jianqing's proprietary trading and the reduced positions of LP Jiufeng Trust finally returned to Junshi Capital's account.
First of all, in terms of own funds, since the establishment of its proprietary trading platform in 2016, Junshi's proprietary trading platform has reaped fruitful results in NVIDIA, Tianqi Lithium and Longji Green Energy Technology Co., Ltd. in the past two years.
After experiencing the stock market crash in 2015 and sideways fluctuations throughout 2016, Longji Green Energy Technology Co., Ltd.'s stock price finally exploded in 2017.
The share price of Longji shares rose to a maximum of 42.95 yuan throughout the year. On the last day of December 2017, Longji shares closed at 36.44 yuan, which was 3.43 times higher than the cost of holding shares in the proprietary trading account of 10.6 yuan!
Longji Green Energy Technology Co., Ltd., which was listed in 2012, had a market value of only 6 billion yuan at the beginning of its listing. By the end of 2017, the market value of Longji Green Energy Technology Co., Ltd. had reached 70 billion yuan.
As a company also in the photovoltaic industry chain, Longji Green Energy Technology Co., Ltd. has made various capital arrangements this year, and its stock price has been rising steadily since July.
On the other hand, ST Hairun, another former star stock in the photovoltaic industry chain, is facing delisting because its share price fell below 1 yuan. The consequence of being abandoned by the capital market is so tragic.
Like the liquor industry, after experiencing a cold winter in the industry, the photovoltaic industry has ushered in a major reshuffle this year, and some companies in the industry chain have since withdrawn from the stage of history.
Some companies have since become industry stars, the most representative are Longji Green Energy Technology Co., Ltd., Yangguang Power Supply Co., Ltd. and Tongwei Green Energy Technology Co., Ltd.
In the era when photovoltaics were booming, these three companies were also known as the Three Musketeers of Photovoltaics. While Longji's stock price soared throughout the year, the stock prices of these three companies also performed relatively well.
Throughout the year, Yangguang Power Supply rose by nearly 80%, and Tongwei Co., Ltd. rose by more than 90%. The three companies that broke through the siege can be said to have had a good year in 2017.
The same is true for Gu Junhao. Longji shares, whose stock price soared throughout the year, was reduced by Gu Junhao from 330,000 lots to 30,000 lots, and the funds recovered reached 1.05 billion yuan.
Junshi's proprietary trading account spent 350 million yuan to take over Longji shares from Gu Junhao's personal account. After this reduction in holdings, the proprietary trading account still holds Longji shares with a market value of 110 million yuan.
From the time when Gu Junhao finally bought in with his personal account to the big sell-off at the end of 2017, Junshi Capital made more than 800 million yuan from Longji Shares!
Gu Junhao has invested in Longji Shares for more than two years and made a miracle of more than 800 million yuan, which is talked about in the A-share investment circle. However, this is not the highest profit in the proprietary trading.
The company with the highest return is Nvidia. Junshi Capital, which invested US$180 million in Nvidia, also reaped the first rewards in late 2017 and early 2018.
Nvidia's share price had reached nearly US$250, but Gu Junhao sold off 7 million shares in the first major move, leaving him with only 150,000 shares.
The huge reduction of 7 million shares brought Junshi Capital a profit of US$1.6 billion, or RMB 10.4 billion. The current market value of Nvidia shares held by it is approximately RMB 240 million.
Taking into account factors such as exchange rates, Junshi Capital has earned more than 10 times the profit on Nvidia stock.
In fact, Nvidia's trend is not bad. If Gu Junhao reduces his holdings at this time, he will not be able to gain much advantage in the price difference, even if he takes into account the turmoil in the global stock market in 2018.
After all, the president on the other side of the strait attaches great importance to US stocks. It is impossible for star stocks like Nvidia to continue to fall sharply.
Reducing holdings is the main consideration. This guy has gone crazy and can do anything, although the funds of Junshi Capital are nothing in the US stock market.
But this is also the result of Gu Junhao, Xu Jianqing and other trading teams working hard and staying up late to overcome the time difference and make profits in Mi stocks.
If a fire breaks out in the city gate and innocent people are affected, it would be a huge loss for Junshi Capital.
Therefore, after this reduction in holdings, Gu Junhao will use a more covert method to divide the US dollars held by the company in order to make his own funds and the funds of Jiufeng Trust safer.
Similarly, Junshi Capital has also sold off all the funds entrusted by Jiufeng Trust and returned them to their proper accounts.
Thanks to the year-round surge in Hong Kong stocks, it's no surprise that both Shunyu Optics and Mahua Holdings have doubled in value, while US tech stocks are still on a gratifying upward trend.
Of the US$600 million entrusted to Jiufeng Trust, a total of US$1.371 billion was recovered in the year-end liquidation, with a yield of 128.5% over the past year and a half.
Over the past year, Xie Jun has been smiling from ear to ear. Every time he sees Gu Junhao, he is smiling. When little Gu was born, Xie Jun even gave him a big red envelope personally.
This is actually quite rare. After all, it is the profits created by Gu Junhao that make him happy.
Speaking of which, it is easier to make money in US stocks. Even Hong Kong stocks are better than the A-share market. The A-share market has been hovering around 3,000 points all the time. It is not an exaggeration to say that it is the most difficult market to make money in the world, right?
Gu Junhao couldn't help but think of a sentence: "If I hold the Nasdaq ETF from now on, I wonder how you will deal with it?"
This time, Gu Junhao informed Xie Jun in advance of Junshi Capital's large-scale reduction in holdings. Although there is still more than half a year before the first redemption, Gu Junhao still has to inform such a large investor of such a big move.
After a secret conversation between the two, Xie Jun accepted Gu Junhao's analysis of clearing out the inventory, and when Gu Junhao said that he would invest the funds in US stocks in a more covert way in the future, Xie Jun also expressed his willingness to cooperate.
As an important figure in the system who is in charge of the local trust institution, Xie Jun has a certain political sensitivity, but he did not expect that Gu Junhao's vigilance is so high.
Although Xie Jun did not quite agree with the views expressed by Gu Junhao, in his opinion, Gu Junhao was a little too pessimistic. However, this kind of consideration for safety is also a good thing for investors.
In fact, since November, when Gu Junhao limited the price investment in Junshi, Xie Jun could guess that Gu Junhao would have relatively large moves in his positions, but he still didn't guess that Gu Junhao would welcome 2018 by clearing his positions.
All the money has arrived today. Gu Junhao stared at the numbers in the major accounts, 2.971 billion US dollars and 1.05 billion RMB, and couldn't help feeling dazed.
Since Jiufeng Trust has not yet reached the first redemption deadline, these US dollars will remain in the investment account for the time being.
The two amounts added together, calculated at today’s exchange rate, would be worth approximately RMB 20.4 billion, of which 11.45 billion actually belongs to Junshi Capital!
Including the cash held by Junshi No. 2 and Junshi Value Investment, the two investment companies currently controlled by Gu Junhao, excluding normal operations of the companies, hold a total of 63.5 billion yuan in cash!
In addition, in the secondary market, the two companies have a combined market value of nearly 10 billion yuan and total assets of nearly 75 billion yuan!
Of the 63.5 billion in cash flow, more than 17.7 billion belongs entirely to Junshi Capital.
You don't know until you calculate it. Once you calculate it, you will be shocked. With his daily buying and selling, Gu Junhao really doesn't have much idea about his own wealth and the funds he can use.
This liquidation can be regarded as a good inventory, which can help you figure out how much assets you actually have and how much money you can control.
“No wonder there are more and more rebirth novels. If you have a certain amount of basic knowledge and are reborn in the past, it’s really easy to make money.”
Gu Junhao stared at the account for a long time. There was too much money. He could never spend it all.
From the time my personal account was initially opened to now, over the past five years, my personal wealth has actually exceeded 20 billion yuan.
In November this year, Forbes ranked him 238th on the domestic celebrity list, which caused quite a stir. For this reason, Gu Junhao even came out to explain that the stock market goes up and down, and his wealth is nothing.
In fact, Gu Junhao was not wrong. The stock market has been doing relatively well since 2017, and the market value of listed companies controlled by the wealthy have increased to varying degrees.
When the big bear market comes in 2018 and the external environment changes, the wealth of these people will shrink to varying degrees. For ordinary people, it will not have much impact except adding more topics of conversation in life.
Now it seems that the original ranking was far too low. According to my actual net worth, I still have a chance to enter the top 100.
Compared with last year, the wealth of the top 400 people has increased significantly due to the stock market rebound throughout the year. The richest man in Beicang District benefited from the bull market in Hong Kong stocks throughout the year, and his wealth soared by more than 10 billion yuan.
The richest man in the country also changed his belt. The stock price of the most important listed company controlled by his belt soared 458% throughout the year, and his personal wealth reached 281.35 billion yuan.
For several consecutive years, the richest man has been in the real estate industry, and the Internet companies represented by Xiao Ma and Lao Ma ranked second and third respectively.
The past few years have been a rare highlight for real estate tycoons, but after the end of 2018, life is not so good anymore.
Holding tens of billions of cash is also a happy worry. Investors' money certainly cannot be used, but Junshi Capital itself has about 18 billion yuan of funds that can actually be used.
"It seems we need to pool our resources and find a place to spend the money. It's not a good idea to leave so much cash lying around for a year or two."
After reaping more than 1 billion U.S. dollars from U.S. stocks this time, they should at least use some of the money to invest in domestic companies, and improve their own and their employees' welfare, right?
Increasing year-end bonuses for the company and employees, and purchasing additional vehicles, are no longer considered spending money for Junshi Capital, which has received huge amounts of revenue today.
Suddenly, Gu Junhao's eyes turned: "Hey, Xiao Li, what do you say about us buying an office building?"
"Ah? Boss, are you crazy? It's too much money?" Li Xinyu, who had been looking at Gu Junhao in a daze for a while, was confused by Gu Junhao's sudden question.
Then, Li Xinyu added: "You yourself said that the current housing prices are so expensive and the bubble is too big. You don't even buy stocks of real estate companies. Why are you thinking of buying a house at this time?"
Li Xinyu has followed Gu Junhao for several years. Although he does not participate in the secondary market investment, he still knows some inside information of the company and Gu Junhao's investment direction.
Over the years, her experience has increased a lot. Li Xinyu can also understand the overheated real estate market in recent years, and she also admires her boss's decision to encourage Xu Jianqing to buy a house in the past two years.
Facing Li Xinyu's questioning, Gu Junhao smiled without saying anything. Looking across the country, this year's housing prices can indeed be considered to be at the top, but this is not the case in the industrial city of Ningbo.
Take Beicang for example. After the increases in 2016 and 2017, the average house price in Beicang District is now around 15,000 yuan per square meter.
Apart from the urban area, the areas with relatively expensive housing prices are the over-hyped seaside villas. The average housing price in this shabby place has been driven up to more than 12,000 yuan.
But in 2022, this place cannot be sold even for 8,000 yuan, but the housing prices in the city have been rising, and the expensive areas are already close to 30,000 yuan.
So on the whole, in 2018, as long as you don’t go to the seaside to be sucked, spending 400 to 500 million to buy an office building of your own in the city is actually a good investment.
Seeing Gu Junhao smiling and remaining silent, Li Xinyu couldn't help but ask, "Boss, are you serious?"
Gu Junhao looked at his assistant's surprised eyes, smiled and said, "Why not?"
