Chapter 443: Prince Ning Appears
Looking at the A-share trading in the first four months, whether it was rising or falling, the index was able to fall back to its original position in a very short period of time until it found a new low.
The same was true for trading in May. Starting from the first trading day after the May Day holiday, the Shanghai Composite Index rose from 3,100 points to above 3,200 points, which took 15 trading days.
It only takes five trading days to fall from 3200 points to break through.
From May 23 to May 30, the Shanghai Composite Index plummeted from 3214.35 points at the close of the previous trading day to 3041.44 points at the close of May 30.
The 3041 point is about 40 points lower than the opening point in May. A month's effort can be achieved with just a few trading days of decline.
The downward gap of nearly 30 points on the 30th seems to indicate that it is impossible for the Shanghai Composite Index to return to above 3,200 points again this year.
This is the biggest feature of a big bear market. It’s not that there are no opportunities to make money in the market. Every month there are a few stocks with exaggerated gains, but it is difficult for them to sustain.
A month's hard work can be wiped out in just a few trading days. The index and most of the individual stocks are either at new lows or on the way to new lows.
The money-making effect cannot be sustained, resulting in low market sentiment, which directly affects trading volume, thus forming a vicious cycle.
Investors are much more interested in gossip than the stock market. Influenced by the Sino-Singapore Telecom incident, the voting on 5G standards was the focus of investors' discussion last month.
Although the reputation of Conscience Brand has not been very good before, it seems that its reputation cannot be reversed after this incident.
Despite all the explanations, it was of no avail.
Unlike the bad reputation of the Conscience brand, Gu Junhao's popularity has risen to a new height today.
In the 2018 New Fortune Top 500 Rich List announced at the end of May, Gu Junhao/Zhang Yiru ranked 108th with 21.48 billion yuan.
In 2017, Gu Junhao made the list for the first time, ranking 238th. A year later, Gu Junhao soared from 238th to 108th.
This is also the person who has risen the fastest among all the rich people on the list, and he is also the first self-made billionaire born in the 1990s on the list.
At the same time, he is also the youngest billionaire on the list.
Compared with last year, the assets of the wealthy people on the list who are mainly engaged in the financial industry or listed companies have shrunk to varying degrees this year.
Gu Junhao is the only wealthy person on the list who works in the financial industry but whose assets have not shrunk. It all started with the liquidation at the end of last year.
Even though the stock market has fallen so much, Gu Junhao, whose main business is stock investment, has not suffered any loss in his assets; after the list was released, it was really enviable.
At such a young age, his net worth exceeded 20 billion yuan, ranking second in Beicang District. All of a sudden, Junshi Capital was flooded with media wanting to interview this young billionaire.
There were some interviews that Gu Junhao could refuse, but there were some that he could not refuse. When his wealth reached a certain level, while he enjoyed a glorious status, he also felt that he had no choice.
But this is a bit pretentious. Who doesn't want to experience such a life?
At the same time, Junshi Capital, a company whose main business is investment, has become increasingly familiar to the general public, and Junshi Capital's capital moves in recent years have also been uncovered by the media one by one.
The local people in Beicang have a deeper understanding of this company. After reading the reports, the employees of the physical companies that invested in it thought: "Oh, it turns out that our company also has shares in Junshi Capital."
Since it has invested in many industrial companies, it has invisibly supported a lot of people, and the general public has a relatively good impression of Junshi Capital.
Over the past two years, Junshi Capital's investments in the primary market have been proceeding in an orderly manner. By the middle of 2018, it had invested in more than a dozen small businesses.
Without exception, these companies are physical manufacturing companies, with a few dozen employees and a few hundred employees.
Based on the number of these employees, plus the employees of the two Junshi companies, Gu Junhao has created nearly 4,000 jobs in the local area to a certain extent.
When the company officially moves into its own office building, Junshi Capital will add a considerable number of employees, and the expenses of these employees alone will be a considerable amount a year.
Judging from all these aspects, Gu Junhao now deserves the title of the second richest man in Beicang. After all, he has solved many social problems.
The richest family is still the Ma family of Shenzhou. Gu Junhao's assets are 25.46 billion yuan less than theirs .
Of course, Gu Junhao did not dare to compare himself with them. They had 60,000 to 70,000 employees, which could be said to be a giant in Beicang.
The dull month of May ended just like that. In previous years, May and June were months with relatively good market conditions, but this was not the case in 2018.
In Gu Junhao's impression, since April, the market has been in an extreme unilateral downward trend.
This extreme trend will continue until the policy bottom appears in October, and then the market bottom at the end of the year, and the overall market and individual stocks will be able to stabilize the trend.
In June, the two things Gu Junhao had to wait for were Ning Wang's launch and Sino-Singapore Communications' resumption of trading.
Ningwang has been confirmed to be officially listed on June 11. The subscription date of Ningwang can already be seen on the subscription channel. Ningwang, with an issue price of 25.14 yuan, is expected to raise 5.352 billion yuan and issue a total of 217 million shares.
Junshi Capital will certainly actively participate in Ningwang's online and offline subscription. Not only in the subscription, but also after the official listing, Junshi's three major secondary market investment sectors will significantly increase their holdings.
Actively subscribing and substantially increasing holdings are due respect for the most promising stocks on the GEM in the next four to five years.
As for China News Service, it has been one and a half months since it was suspended in mid-April. Specific handling measures are also underway, and there is currently no specific timetable for resumption of trading.
Since the Shanghai Composite Index gapped downward on May 30, the index has indeed never reached the high of 3,200 points again. It only rebounded to around 3,150 points on June 7, ending the rising trend in June.
On June 8, the three major indices fell collectively. The Shanghai Composite Index's 5-day line, 10-day moving average and 3,100-point integer mark were all breached. The CSI 500 Index hit a new low in nearly four months during the session.
The ChiNext Index also fell below the 1,700 mark on the same day. At the close, the Shanghai Composite Index fell 1.36% and the ChiNext Index fell 1%.
During the trading session, the situation of flash crash and limit down occurred again, and many stocks had flash crash and limit down today.
On the news front, the popularity of Ningwang's listing is still driving the popularity of the Ningwang concept, and rice will also be listed on the Hong Kong stock market soon.
Lei Jun's life seemed like a cheat, and the company he founded finally went public. In Mr. Gu's eyes, Lei Jun's life was worthy of respect.
Although Dami has received mixed reviews online, in Gu Junhao's opinion, Dami is a company that is truly leading the Chinese people into the era of smart phones.
The ultimate cost-effectiveness has brought down the price of smartphones in the market. Only when ordinary people can use smartphones can we truly enter the smartphone era.
If rice had been released a few years later, people might still be using those expensive and poorly made copycat brands. The emergence of rice created a catfish effect in the market, leading to a reshuffle.
It can be said that this man who seems to have a cheat code has made contributions to domestic science and technology.
Oh, and there’s also the giant company owned by Lao Ma Tou, which also announced today that it has raised US$14 billion in financing, with a valuation of US$150 billion.
According to insiders, this round of financing may be the last round of private equity financing before its listing, and it may be listed on the A-share and H-share markets simultaneously next year or the year after.
The timeline is fine, but the outcome is not.
In the evening, the specific results regarding Sino-Singapore Telecom were officially released. The two parties reached a settlement agreement. According to the latest settlement agreement, Sino-Singapore Telecom paid 1 billion US dollars and prepared another 400 million US dollars to be kept by a third party in order to remove the company from the list.
The formal signing of the settlement agreement also means that the day for Sino-Singapore Telecom to resume trading is getting closer, but this result is obviously unacceptable to the public.
Since June 9, public opinion has become increasingly unfavorable to the company, with overwhelming negative news directed at this industry leading company.
This makes the retail shareholders who are still trapped inside even more uneasy. If nothing unexpected happens, the company will face huge losses after resuming trading.
Some radical investors even said that they would never buy China News Service’s shares even if its share price fell to the bottom.
On June 11, Ningwang officially landed on the A-share market. The stock price rose 43.99% on the day to 36.20 yuan. Junshi Group has some holdings in Ningwang, not much, but still much more than retail investors in the secondary market.
Next, Junshi Capital’s trading team will wait for the stock to delist and start adding positions.
On June 13, China News Service resumed trading after being suspended for two months. In two months, things have changed a lot. The Shanghai Composite Index has fallen from above 3,200 points to around 3,050 points today.
The ChiNext Index also fell from between 1,800 and 1,900 points to almost falling below 1,700 points.
Not to mention the negative news about the company itself, the rebound in the index alone is enough to cause two limit downs.
Today, both A-share and H-share of Sino-Singapore Telecommunications resumed trading. As for A-share, Sino-Singapore Telecommunications opened at the limit down, with the share price at 28.18 yuan. There were over 10 billion orders on the limit down board!
As for Hong Kong stocks, the performance was even worse. China News Service opened at 16 Hong Kong dollars, a drop of 37.5%!
"Oh my god, this is too cruel. How low is it going to fall?" Liu Tingting said in shock as she stared at the trend of China News Service.
“Looking at the situation, his profits will be at least cut in half. This ban has changed his fundamentals.” Gu Junhao continued.
In fact, it was more than just a halving. Gu Junhao was still deeply impressed by the trend of China News Service in 2018. Among A-shares, its stock price only stopped falling when it fell to around 12 yuan. Based on the closing price before the suspension, it had fallen by two-thirds.
As for Hong Kong stocks, the decline is similar. Although today's opening price of 16 Hong Kong dollars is exaggerated, according to the decline value, selling or shorting at this price will not be a loss at all!
The share price of China New Communications in Hong Kong stocks has stabilized at around HK$10. Based on today's opening price, there is still at least 60% room for growth.
In fact, relatively speaking, for companies that have both A and H shares listed, it is more cost-effective to bottom out in Hong Kong stocks. Not to mention the difference in exchange rates, with the same amount of money, you can buy more chips in Hong Kong stocks.
In terms of time, the advantage of Hong Kong stocks is also very obvious. The decline at the opening alone is equivalent to the decline of A-shares in three or four days, which saves a lot of time costs.
However, there is a certain daily limit on the amount of Hong Kong stocks that can be purchased through southbound funds. The only part of Junshi Group that is not affected by this is its proprietary trading.
For this purpose, Gu Junhao had already informed Xu Jianqing and started buying large amounts of China News Service when the stock price fell to around HK$10. Gu Junhao had decided to buy the bottom of this stock since the stock was suspended.
The bottom-picking strategy had already been decided, and the next thing was left to the market. On that day, China News Service's Hong Kong-listed stock fell 41.56% and closed at HK$14.96, nearly halving in one day.
Today, the trading volume of Sino-Singapore Telecommunications' Hong Kong stocks also set a record of up to HK$3.58 billion, with funds fleeing in panic, including a number of institutions.
There are some institutions with long-term vision, but there are also many that are short-sighted. There are even more that follow the same pattern of chasing rising and falling prices as retail investors.
On June 14, China News Service, whose A-shares continued to hit the limit down, saw its Hong Kong stock price decline narrowed significantly, with the share price closing at HK$14.80, down 1.07% on the day.
After a day of rest, China News Service experienced another sharp drop on June 15, with a drop of 11.49%, fixing the share price at HK$13.10. However, the short-selling force has obviously decreased a lot, with only HK$780 million traded on that day.
The weekend market was dominated by China News Service, and A-share investors were particularly miserable. The stock price hit the limit down and huge orders were placed. There was no chance to escape and they could only watch the stock price fall step by step.
The decline in Hong Kong stocks has made A-share investors even more uneasy. In three trading days, the share price has fallen from HK$25.60 before the suspension to HK$13.10. It is still unknown how long it will take for the A-share limit to be lifted.
June 18, Monday, is the Dragon Boat Festival, and the market is closed for one day. Since 2015, the Dragon Boat Festival for A-shares has gradually been known as the "Dragon Boat Festival Disaster".
On Tuesday, China News Service resumed trading and its A-shares naturally continued to hit the daily limit, and the performance of Hong Kong stocks was equally terrible.
Sino-Singapore Communications opened at HK$11.42 that day, and its share price plummeted 15.92% throughout the day to close at HK$9.85. It even fell to a low of HK$9.56 during the session.
In just four trading days, all the rebounds of China News Service since its low point on July 7, 2016 were wiped out. A market with no growth target can sometimes be really scary.
In two years, the stock price has increased by more than three times, but it can be completely wiped out in just four trading days or even one day.
However, today is an exciting day for the Junshi Group, especially the proprietary trading and Junshi No. 2, which have been operating with low positions for a long time.
Following Gu Junhao's order, traders including those from public funds began to buy the bottom of China News Service. This can building a country through science and technology, right?
On June 20, China News Service, a Hong Kong-listed company that had been falling for four consecutive trading days, finally opened higher for the first time. China News Service, whose share price had fallen by nearly two-thirds, finally rebounded for the first time.
Sino-Singapore Telecommunications opened higher and continued to rise that day, with its share price rising 20% to close at HK$11.82. The Hong Kong stock market finally stopped falling, bringing hope to A-share investors.
As of today, the A-share stock of China News Service has fallen to 18.49 yuan after five consecutive limit downs.
After experiencing a big rebound, the Hong Kong stock market began to stabilize, with the share price stabilizing between 11 and 12 Hong Kong dollars, and there were no more big ups and downs like in the previous few trading days.
A-shares still show no signs of delisting. As of June 22, the last trading day of this week, China News Service closed at 14.98 yuan for A-shares.
Compared with the price of 31.45 yuan before the resumption of trading, the price of Sino-Singapore Communications has been cut in half. Fortunately, Sino-Singapore Communications, which was at the limit price today, had a small increase in volume, with a daily turnover of 124 million yuan.
The dawn of delisting is just around the corner, and another stock that Gu Junhao is paying attention to, Ning Wang, was also officially delisted today!
Starting from the first trading day after listing, Ning Wang has experienced 8 trading days of flat trading. As of June 21, the stock price closed at 70.54 yuan.
Based on the issue price, Ning Wang’s share price rose 2.8 times in eight trading days, but this is just the beginning.
On June 22, Ningwang welcomed the delisting moment. The attention of the entire market was cast on this stock. The market was very much looking forward to how it would perform after the delisting.
In the morning session, Ningwang opened at 72 yuan, and it experienced a sharp sell-off since the opening. Within one minute, Ningwang's transaction volume was 1.18 billion yuan, and the stock price plummeted from 72 yuan to 63.49 yuan, hitting the limit down!
To be honest, King Ning, who has a larger issued capital, has accumulated a large amount of profit-taking after eight trading days. In the case of unclear market conditions, there will definitely be funds that want to escape and take profits.
But no one expected it to be so brutal, with a 13% drop at the opening. No one expected this.
"Hurry up and buy, don't panic, take as many as you can, don't worry about it, just buy." Gu Junhao directed the trading team of Junshi Price Investment to buy Ning Wang at the bottom.
At the same time, he directed Wang Ruoyu and Xu Jianqing's trading teams through internal calls to buy at the bottom at the same time.
Is the Ningwang at more than 60 yuan expensive? Calculated based on the issue price next year, it is indeed expensive, but for Gu Junhao who plans to hold it for a long time, this price is really too cheap!
That's really how much Gu Junhao dares to take. Gu Junhao doesn't care about the current index market conditions. The funds in his hands are already starving!
