Chapter 446: Holding up a Sign
To sum up the market situation in the first week of July in one sentence, the Shanghai Composite Index changed from a battle to defend 2,800 points to a battle to defend 2,700 points.
After falling for several consecutive trading days, the Shanghai Composite Index finally fell below 2,700 points for the first time during trading on Friday, closing at 2,691.02 points.
In late trading, chip stocks rebounded collectively, driving the index back above 2,700 points and closing at 2,747.23 points.
The break of 2,700 points, the intervention of copycat funds and the deep V rebound have brought a certain popularity to the market, and technology stocks continue to play a role in activating the market.
After two and a half years, the Shanghai Composite Index once again entered the 2,600 point area, which no one expected.
On January 29, 2018, the Shanghai Composite Index hit a high of 3,587.03 points. Now it is at 2,700 points, a drop of more than 800 points.
Now, not only have GEM stocks suffered widespread slumps, but many high-quality stocks on the main board have also hit new lows since the stock market crash.
A lot of the funds flowing into the Shanghai and Shenzhen stock markets today are aimed at these high-quality stocks that have hit new lows; since the decline in 2018, the first round of large-scale bottom-fishing in the Shanghai and Shenzhen stock markets should have started in July.
It can also be seen from the posts in Taoguba, Xueqiu and other stock communities that more and more people are calling for bottom fishing recently.
As for some of the stocks with relatively good performance mentioned in the speech, it is believed that their valuations have fallen to a reasonable range, and now is a relatively appropriate time to buy at the bottom.
There is no much objection to the reasonable range, and bottom fishing is actually possible, but the biggest question is whether retail investors can hold on to their chips?
Even if you buy at the real bottom, can you make money?
The so-called bottom is not a certain day, but a range. This range can be a very long period of time. During this period of time, the biggest problem is whether you can hold on to the chips in your hand.
The comments in these communities are actually not wrong. Bottom fishing under normal market conditions is indeed as stated in the comments.
But 2018 was a very unusual year. Both the internal and external environment changed a lot during this year, and the same was true for A-shares.
Under extreme market conditions, there will be extreme trends. The principle of my A-share market is that when you are being hyped up, I can pull you up to the sky.
But one day, when the market enters an extreme bear market, it may fall to the point where you doubt your life. What good is a reasonable valuation? I can even cut your valuation in half.
But no matter what, today's deep V can give the market a breath of fresh air. With large amounts of capital involved, there must be some profit.
As for how long the market trend can last, we can only leave it to the market.
Counting the week at the end of last month, it has been half a month since Junshi Group built up its positions in Ningwang and China News Service. Over the past half month, the positions in these two stocks have been completed.
Ningwang was delisted on June 22 and trading ended on July 6, a total of 11 trading days. The lowest price was still the limit price of 63.49 yuan on June 22.
On July 5, Ningwang’s lowest price was 64.88 yuan, and then it began to rise. The bottom area of the sky-high price of 8.6 billion yuan was still very supportive.
Ning Wang, with a total market value of 5 billion yuan under the Junshi Group, is held in three regions with different costs, but overall, the cost is below 70 yuan. As of today's closing, it has only just made a floating profit.
At the close of today, Ningwang closed at 70.88 yuan, with a daily increase of 3.01% and a turnover of more than 3.5 billion yuan. Since its listing, Ningwang has become the most active stock on the GEM.
Ning Wang is active and Sino-Singapore Communications is not bad either. On July 3, Sino-Singapore Communications, which had been falling continuously, even showed a trend of rising limit. The straight rise of hot money in the late trading pushed Sino-Singapore Communications’ stock price to the upper limit price of 13.45 yuan.
Stocks like Lay's, which have been definitely delisted, will occasionally rise to the daily limit. It is reasonable for hot money to make a rebound in China News Service, whose share price has fallen by nearly two-thirds.
Among these hot money, there are many big hot money bosses like Brother Zhao and Longjing Road. The hot money on Longjing Road is different from the general hot money that does intraday trading.
Every time they buy, it is a big deal and they will hold the stocks for a long time. Their style is closer to that of individual investors, who mainly focus on trading in short periods of time.
In an era when hot money is still popular among retail investors, stocks that have been heavily invested in by Longjing Road are always more popular among retail investors, and the same is true for China News Service.
As of this Friday, China News Service closed at 13.04 yuan, and its lowest point in recent times was 12 yuan.
Unlike Ning Wang's floating profit holdings, China News Service, which is held by Junshi Group, is currently in a floating loss state across the board. However, Gu Junhao has completed another new record in his life!
That is, in actual sense, Junshi Capital has already formed a stake in China News Service!
As of July 6, Junshi Capital and Junshi Fund held a total of 371.35 million A-share and H-share China New Telecom shares, with a total holding cost of 4.92 billion yuan, a holding cost of 13.2 yuan, and a shareholding ratio of 7.76%!
As of today's closing, the total market value of China News Service's A-shares was 62.37 billion yuan, down nearly 90 billion yuan from the market value of just over 150 billion yuan at the beginning of its resumption of trading.
If it weren't for this big drop, Gu Junhao would have to spend at least 7.5 billion yuan to hold a stake in a company with a market value of more than 150 billion yuan.
Now, it only takes less than 5 billion yuan to buy 7.76% of the shares . As originally thought, Gu Junhao has implemented his plan of high-profile bottom-fishing this time.
As for Prince Ning, Gu Junhao is far from being able to raise a placard, but his total holding of 71.4286 million shares can also rank him among the top five among the circulating shareholders.
After the market closed, Gu Junhao said to Li Xinyu, "Send a letter to China News Service in the name of Junshi Capital and Junshi Fund."
"Okay, boss, you are going to do something so big this time. I wonder what kind of impact it will cause." Li Xinyu said with a smile.
This is the first time that Junshi Capital has raised its stake since its establishment , and the company being raised is China News Service, which is currently in the vortex. It has to be said that Gu Junhao has played a big role this time.
Gu Junhao had never experienced raising a placard before, so he chose to send the letter after fully building a position. This move was also learned from Vanke's initial battle for equity.
During the previous battle for Vanke’s equity, Gu Junhao discovered that these investors did not stop after buying 5%, but often chose to send letters to listed companies after the weekend trading ended.
Baoneng, several of the purchases of the belt directly exceeded the 5% or 10% range. This is easy to explain. We didn’t have time to count.
In fact, before buying at the bottom, Gu Junhao had never thought about the possibility of raising the placard. In his inherent impression, the market value of China News Service has always been over 100 billion yuan, and buying 5 billion yuan should be below 5% under normal circumstances.
But since he has raised his stake, he might as well do it. Anyway, Gu Junhao has no plan to sell China News Service within six months. It's just a pity that it will be difficult to do T with the 5 billion yuan of funds.
This is equivalent to 5 billion yuan of liquidity being locked up, which is somewhat a pity. As for the ways to sell shares holding more than 5%, there are many ways, and it is not necessary to only announce it in the secondary market.
You can go through the equity transfer agreement or bulk transaction channel, which is all possible and not very troublesome.
At five o'clock in the afternoon on July 6, China News Service released its latest announcement. Since April, China News Service has become the focus of the market. This announcement was quickly pushed through the small window news of major market software.
"The company received a letter from Junshi Capital stating that from June 19 to July 6, Junshi Capital Co., Ltd. and Junshi Fund Co., Ltd., through their affiliated accounts, purchased a total of 371.35 million shares of the company's capital through centralized trading. After this equity change, Junshi Capital holds a total of 7.76% of the company's total share capital, thereby triggering the placard mechanism."
As soon as this news came out, it immediately caused an uproar in the capital market. The fact that insurance funds frequently raised their stakes in the past two years appeared again in China News Service?
After the China News Service announcement was issued, Junshi Capital and Junshi Fund also quickly issued an announcement statement on their official website!
"Our company is an investment company and has no intention of intervening in the equity of any listed company. Everything is mainly based on financial investment. In addition, we hope that China News Service can successfully overcome the difficulties and overcome the difficulties together!"
Although the performance of the two funds that have been announced to the public has not declined much, it is still mediocre.
As the A-share market continued to fall, even Gu Junhao's loyal fans thought that Junshi Capital's investment results this year would be maintained in this low-position manner.
Unexpectedly, Brother T made such big news just as trading started in the second half of the year.
At this moment, the stock comment section of China News Service has become extremely popular. Since significantly reducing its holdings last year, Junshi Capital has almost been in stealth mode recently.
"Fuck! This is the first time Brother T has raised a sign. Awesome! He bought 5 billion shares of Sino-Singapore Telecom. So powerful!"
"Don't get excited, don't get excited. 5 billion is nothing to Brother T. Didn't you read the news? Brother T controls nearly 80 billion in cash flow, and he hasn't raised a single round of financing!"
"In other words, if Brother T raises funds, he can easily get hundreds of billions of cash flow? Holy shit! When did Brother T become so terrifying?"
"It all started one day in October 2014 when a small retail investor posted a message on Taoguba. From then on, the gears of fate began to turn."
"Brother T's cost is about 13.2 yuan. Now the share price of Sino-Singapore Telecom is 13.04 yuan. Should I buy Brother T's stock?"
"Brother, Brother T has already raised his stake. You can't sell it for at least six months. Why are you rushing in? With the current trend of Sino-Singapore Telecom, what if the stock price continues to fall?"
"What the hell, this coward must have suffered huge losses this year. Didn't he read Junshi Capital's announcement? Let's overcome the difficulties together! We don't know why Junshi Capital bought in, but it's all investors' money anyway."
"Is the above person stupid? Didn't he read the announcement? Junshi Capital bought the shares through three major accounts, of which its own funds amounted to about 2 billion yuan, which is real money."
"If you believe it, then go buy it at the bottom. Anyway, I won't buy it. Whoever buys this cowardly company will be HJ!"
"Fuck, are you sick... I just wanted to make some money, why are you scolding me?"
