Chapter 445: High-profile Bargain Hunting
The three major indexes began to fall rapidly in the afternoon, and by 1:30 p.m., they all turned green. China News Service also once again headed towards the limit price after its last failed pull-up in the afternoon.
At two o'clock in the afternoon, China News Service completely hit the lower limit price, and the market returned to calm again until the closing.
The Shanghai and Shenzhen stock markets opened high and ended low. The Shanghai Composite Index closed down 1.05%, the Shenzhen Component Index fell 0.9%, and the ChiNext Index fell 0.72%.
China News Service’s trading volume today reached 7.48 billion yuan, and the turnover rate reached 16.04%!
As a large state-owned enterprise with annual revenue exceeding 100 billion yuan and a market value of more than 300 billion yuan at its peak this year, a turnover rate of 16% means that a large portion of funds were forced to liquidate their positions today.
The after-market Dragon and Tiger List also showed that today, whether buying or selling, it was mainly institutional seats. The top five seats on the Dragon and Tiger List sold a total of more than 1 billion yuan.
These are all bloody chips. Of course, they all belong to the investors and have nothing to do with the institutions themselves. Some conscientious institutions will one day write an apology letter to brush them off.
In the end, it will be the investors in the market who pay the bill.
Following last Friday, the three major institutional seats of Junshi Group all appeared in the top three buying seats of Ning Wang on the Dragon and Tiger List; today, Gu Junhao, who strongly advocated bottom buying, once again made the three major institutional seats of Junshi Group appear in the top three buying seats of China News Service.
This time, it can be said that Gu Junhao was buying at the bottom in a high-profile manner. For two consecutive trading days, he bought a total of more than 2 billion yuan in two stocks!
With the market trading volume not high, more than 2 billion yuan was invested in bottom fishing in two trading days, and the effect was already very shocking.
However, these 2 billion yuan of funds only account for less than 2% of the funds that Gu Junhao can mobilize. Taking all this into account, Junshi Capital's current strength is also relatively strong.
On June 26, China News Service opened at a low price of 12.90 yuan and closed at 13.28 yuan on the same day, with the decline narrowing to 1.48%.
With a trading volume of nearly 4 billion yuan and a turnover rate of 8.88%, China News Service still has a lot of stop-loss orders, and Junshi Group also continues to implement its original buying plan.
Ningwang and China News Service were the two stocks that Junshi Group focused on bottom-fishing in June and July.
According to the plan, Junshi Price Investment will buy Ningwang and China News Service with a market value of 1 billion yuan respectively, and Junshi No. 2 and its proprietary trading will buy 2 billion yuan respectively.
5 billion yuan was invested in each of the two stocks, totaling 10 billion yuan for building a position, which is a huge investment. Now only one-fifth of it has been bought, and the process of building a position is still very difficult.
Fortunately, the daily trading volume of these two stocks is not small. During the period when Junshi Group was building its position, the lowest daily trading volume of these two stocks was over 2 billion yuan.
On days with high trading volume, the trading volume was nearly 4 billion yuan, which is relatively friendly for large funds to build positions.
For a fund of Junshi Capital's size, the stocks it can choose from are actually very limited. There is basically no need to choose stocks with a market value of less than 3 billion yuan, unless they have great growth potential.
Excluding the company's normal reserved expenses, reserves, etc., the current operational funds under Junshi Capital's control are approximately 70 billion yuan.
The 70 billion yuan of funds include stocks, bonds, etc. with a market value of nearly 20 billion yuan. The remaining less than 50 billion yuan will be invested by Gu Junhao in the A-share market after October.
In terms of specific position allocation, the current main stock configuration is based on the three major sectors of medicine, technology, and gold; in the future, liquor will also appear in the holdings.
I can’t lose the title of the Sauce-flavored Manager.
In addition, new energy including the three giants of photovoltaics and the two giants of lithium mining will also reappear in the holdings.
According to Gu Junhao's plan, after completing the position building by the end of this year, the investment scope of Junshi Group in the secondary market will cover A-shares, Hong Kong stocks, US stocks, bond market, etc.
The holdings will include liquor, medicine, new energy, automobiles and technology stocks. At different times, the corresponding holdings will be adjusted according to changes in different sectors.
The main focus is on reasonable balance in positions; in this way, the fund's net value will not fluctuate too drastically due to excessive concentration in a certain sector.
At the end of June, the Shanghai Composite Index officially fell below the 60-day line at the monthly level with a monthly decline of 8.01%, and the index lost support.
As for seeing the 3,000 point level again, it will probably be next year. At the end of this month, the Shanghai Composite Index closed at 2,847.42 points.
The ChiNext Index also plummeted by 7.86%, and its monthly line has fallen for three consecutive days. The closing point of 1606.71 has returned to the position at the beginning of the last wave of the bull market in January 2015.
In June 2015, the ChiNext Index hit a new high of 4,000 points. In just three years, the index alone has been more than halved.
In such an environment, it is no exaggeration to say that the constituent stocks of the ChiNext are littered with corpses.
With the listing of King Ning and the new king's ascension to the throne, the original old ministers will inevitably be abandoned by the market. For a long time in the future, the GEM will be dominated by medical care and new energy.
After three months of sharp decline, Junshi Price Investment's net value has retreated to 2.4817, a 9.09% drop compared to its highest point in March.
A very interesting data is that during the upward trend, due to quota reasons, the overall scale of Junshi Price Investment increased mainly due to its own increase.
However, Junshi Value Investment, which has been falling for three consecutive months, has not seen much decline in its overall scale due to the decline in its stock price. In fact, its overall scale has even increased to a certain extent, maintaining at around 12 billion yuan.
Gu Junhao had seen this kind of situation in his previous life. That was during the hottest period of time for the fund. During the first few months of the decline, Cai Ge, Kun Kun, Lan Lan and others also experienced a certain increase in scale during the decline.
This is all due to the reason that investors increased their holdings. Some funds that were bought at high prices, after being trapped, chose to start increasing their holdings to lower their holding costs.
Some investors who bought in early and made a lot of profits also believe that after about three months of continuous decline, it is a more appropriate point to increase their positions.
Fortunately, it is still kept within the limit, otherwise the fund size would grow even faster.
Most of the time, the market is not really short of money, but what it lacks is confidence. Just based on the performance of Junshi Price Investment's retracement being kept within 10% over the past three months, investors will still have hope.
This is a trust in Junshi Price Investment's historical performance, and also a trust in Gu Junhao himself under the halo.
As for the performance of Junshi No. 2, it is still very stable. Over the past three months, although Junshi No. 2 has only maintained a low position, its turnover rate is very high and its operations are quite frequent.
The reason why Wang Ruoyu and his team frequently make markets is to minimize . With such frequent operations, if Gu Junhao is a little more ruthless, he can make a lot of management fees.
The simplest way is to negotiate the commission with the brokerage firm , lower the commission rate to 80,000, and then get the rebate.
Compared with those insider trading, this is already the most conscientious one, so being a fund manager in the A-share market is really a happy thing.
However, Gu Junhao disdains to do so. On the contrary, he will negotiate the commission to the lowest standard. With Gu Junhao's ability and the blessing of the Reborn BUG, making money in this way is somewhat embarrassing for the Reborn.
Monday , July 2nd .
The first trading day of July is also the first trading day of the second half of 2018.
On that day , the Shanghai and Shenzhen stock markets gave investors a big showdown. Both markets opened low and went down throughout the day, with heavyweight stocks such as steel, coal, banking, real estate, and securities suffering heavy losses.
The Shanghai Composite Index fell 2.52% to 2775.56 points, once again setting a new low for the year. The heavyweight SSE 50 Index fell nearly 4%.
The real estate sector has begun to show signs of collapse. An internal document from a large developer has leaked, requiring employees to accelerate the recovery of funds and to resolutely implement the strategy of "early sales, more sales, and fast sales."
At the same time, we will intensify the collection of accounts receivable and make every effort to obtain a pre-sale license.
The good days of real estate are coming to an end.
Looking at the performance of A-shares in the first half of the year, it can be described as terrible. The Shanghai Composite Index fell 13.90% in the first half of the year, the Shenzhen Component Index fell 15.04%, and the ChiNext Index fell 8.33%.
In the first half of the year, 2,916 out of the 3,528 stocks in the two markets fell, accounting for 82.65%, and the median decline was 20.13%.
In the past six months, the largest decline in stocks has reached 85.63%! The number of stocks with negative net value has also reached a record high of 194, and the largest record of consecutive limit falls is 30 limit falls!
In the first half of the year, the number of IPOs was only 63, accounting for only 14.38% of the whole of last year. In the future, 63 companies would only account for half a month at most during the peak period.
A series of data show how bad the A-share market was in the first half of the year. Under such circumstances, Junshi Price Investment's 6.58% retracement rate in half a year is not difficult to be accepted by the market.
The decline on the first trading day in the second half of the year did not stop Junshi Group from continuing to bottom out in Ningwang and China News Service, and the trading team is still trading as planned.
For these two stocks, Gu Junhao can be very sure that they are currently in the bottom trend; he has no other idea except to increase his holdings.
Just so high-profile! Just so rich!
