Chapter 450: Net Value Drawdown under Negative Conditions
On July 19, the Shanghai Composite Index had fallen for four consecutive days, and it happened to be a Thursday.
The Shanghai Composite Index hit 2,800 points in the morning, but after failing to stabilize, it began to turn downward.
It only rose for 15 minutes throughout the day, and then went down all the way, maintaining a downward trend throughout the day.
The technology sector, which had been rising for four consecutive trading days, began to diverge today. China News Service once again entered a sideways adjustment state. The ChiNext Index was affected by this and adjusted significantly today.
On the news front, the now-prosperous Lao Ma Tou has invested in Focus Media, holding 10.3% of the shares. Today, Focus Media's shares hit the daily limit, with the share price at 10.93 yuan, and the market's over-capped orders exceeded 900,000 lots.
The price remained flat, with nearly 1 billion yuan of funds blocked. It was the same routine used by Sanjiang Shares. However, the retail investors who had been fooled once would not be so easily deceived nowadays.
The comments section of Focus Media shares are mostly filled with sarcasm. The performance of Sanjiang shares is still fresh in people's minds, and many people complain about its ugly performance.
What's worse, some people began to worry about the future of this once excellent media company; after all, the companies in which Lao Ma Tou invested had encountered major problems in their subsequent operations.
Compared with the two Ma's, Xiao Ma is more honest in the capital market. Whether it is the companies that have invested or ordinary shareholders, Xiao Ma's harvesting methods are more gentle.
There are companies in the A-share market where Xiao Ma has invested, but there has never been a continuous one-line profit-taking behavior like Sanjiang Shares.
By leveraging influence, you can invest in a listed company, and then the stock price will directly rise to the highest level in one wave, and then there will be an unlimited selling process.
Although they are in the same Zhejiang Province, Gu Junhao has no good feelings towards them in his past and present life. In the capital market, Gu Junhao tries not to touch the stocks of the Lao Ma Tou series if possible.
It was another day of big drop. The Shanghai Composite Index fell for five consecutive days. The ChiNext Index fell 1.11%, falling below 1,600 points to 1,590.06 points.
The Shanghai Composite Index broke through the daily line again, and the offshore RMB has fallen to the 6.8 yuan mark. The two markets are once again in a precarious state.
On Friday morning this week, the Shanghai Composite Index was still in a weak adjustment state and there was still a possibility of further decline; for this reason, the large financial sector had to be used in the afternoon to maintain the index.
As soon as the market opened in the afternoon, the three major financial sectors all rose, driving the index to rise rapidly. On the ChiNext side, Ning Wang, which surged more than 4% in the morning, boosted market sentiment.
Half an hour later, Ningwang's daily limit reached 7%, and the stock price was 88.70 yuan, breaking through the previous high. Ningwang concept stocks all moved up.
Although it has not yet been included in the GEM index constituent stocks, Ning Wang's influence on the GEM is already visible.
The main board uses big finance to maintain the index, and the ChiNext drives up the concept stocks by lifting Ningwang, thereby boosting the short-term sentiment of the market.
"What a great show of skills. The coordination was beautiful. No wonder people say Bai Dagua went to work for the national team."
"Awesome! It actually rebounded. I thought it would break 2,700 points again. But the big financial stocks seem useless. My stocks actually fell when it was rising."
"Hey, King Ning has reached a new high. The higher the price, the less I dare to buy. It is indeed the fate of a leek."
"I understand now that only high-quality new stocks like these are worth playing with because there are fewer locked-in shares. Those broken stocks on the ChiNext are useless, and bottom-fishing is a dead end."
"In a weak market, I can only invest in new shares like this, but the price is too high. I can't buy many shares. Oh, it's annoying."
"Doesn't Junshi Capital hold a large stake in this stock? The financial report has also come out. In the list of the fifth largest circulating shareholders, Junshi's holdings are still quite good. Let's buy it."
"The top ten shareholders are not the top ten shareholders. Besides, they only hold 3.07% of the shares. It's unknown whether they have run away or not. I think it's better to buy the bottom of China News Service."
"Zhao Laoge of China News Service and his colleagues have all fled, and we don't know when the adjustment will be completed. We can't hold on. Besides, Junshi Group cannot be moved within half a year. It won't matter if we wait a few months."
"By the way, Brother Zhao and his gang made a few profits and ran away. Does that count as cutting off the Junshi Group?"
"What the hell are you cutting? You don't even look at their cost. Their A-share holdings are only 13.2 yuan, while the cost of Hong Kong stocks is only around 10 Hong Kong dollars. How can you cut theirs? You're just carrying their sedan chair."
"I regret it. When China News Service announced that Junshi Group was raising its stake, the stock price dropped to 12. Why didn't I buy it then? If I had bought it, I could have gotten 40 points and recovered a lot of losses."
"Who the hell knew that this damn company had reached a settlement with the other party? Who the hell would dare to buy it if they hadn't reached a settlement? I even suspect that Junshi Group has an inside story."
"You are kidding me, right? It is up to the other party to decide whether to reconcile or not. How can the Junshi Group be so powerful? I can only say that they have a good vision and vision."
"It's not too late to say anything, damn, Ning Wang's stock price has reached its limit!"
"Hey, cool, I'm rich. I bought it at 81 yesterday and sold it at the upper limit today. I made a little more than 1 yuan per share. I finally got some money back. Thanks to the main force."
"The guy above is awesome. He didn't even continue to hold the stock when it hit the daily limit."
"I don't dare to do that anymore. In this market, you just run away when you make money. Any return you can get is a good gain. I used to listen to value investing and hold on for a long time, but I got ripped off badly."
"Ah, me too. I wish I had understood this earlier. Now I'm still stuck in Zhongguo Ping An, and I don't know when I can get my money back."
Thanks to the big financial sector's efforts in the afternoon, the three major indexes all closed up by more than 1% after today's close. The Shanghai Composite Index returned to above 2,800 points, and the ChiNext Index returned to above 1,600 points.
Ningwang failed to hold the daily limit in the final trading session, with the share price at 90.93 yuan, up 9.70% on the day, and the daily limit price of 91.18 yuan, becoming a new high for Ningwang since its listing.
At present, among the constituent stocks of the ChiNext, a price of over 100 yuan is a big test for stocks, and Ning Wang is no exception. At prices above 90 yuan, investors have already shown a tendency to be afraid of heights.
Previously, when the share price of GEM stocks rose to above or around 100 yuan, the inherent routine was to make large-scale high dividends and share transfers to bring the share price down.
Then they use the popularity of high dividends and share transfers to hype and drive up the stock price, and then they sell off their holdings, but this trick no longer works nowadays.
Since taking office on June 41, 2016, the crackdown on high dividends and share transfers has been as persistent as that on IPOs. After nearly two years of crackdown, there is no chance for continued speculation on the concept of high dividends and share transfers.
Over the weekend, the vaccine incident escalated. In the Internet age, the media's continued tracking and high-level attention pushed the incident to a climax.
By Monday, vaccine concept stocks affected by the incident fell collectively and were almost at the limit down.
This time, Junshi Value Investment's net value was affected to a certain extent, and its holdings, Zhifei shares and Watson shares, both hit the daily limit.
Although a certain amount of positions have been reduced since last week, it is impossible to reduce all positions after all. The pharmaceutical sector was affected by this today and the decline was also large.
"Gradually increase the holdings of pharmaceutical stocks that you have reduced. There is nothing much to say. It is a risk as well as an opportunity."
Putting aside other things, Watson shares' limit down price today is only 18.92 yuan. The stock price was nearly 100 yuan during its peak period. Taking advantage of the negative news, adding positions and doing T will definitely be no problem.
There will definitely be short-term impact, and the market is still three months away from the first policy bottom. The Shanghai Composite Index is still more than 300 points away from the real bottom, and the ChiNext Index is still around 400 points away.
A short-term pullback is certainly inevitable, but in the long run, the negative news at this time can simply be said to be giving away chips.
You should know that among Junshi Price Investment, except for China News Service and Ning Wang, which are basically fully invested, the rest are not fully invested, and the most held is only about 5%.
In this case, there is no need for Junshi Price Investment to be afraid of negative news, and there is no possibility of being forced to stop loss due to position reasons.
In fact, this is true for many large industries. Some negative news in a certain period of time may be a good opportunity to buy at the bottom.
For example, when there was the plasticizer scandal in liquor, who could have thought that the price of liquor would rise to such an extent a few years later?
The major negative impact caused by the incident is only temporary. It is fine as long as the fundamentals of the industry remain unchanged. As long as the demand is there and the expectations are still there, it is completely possible to buy at the bottom.
The companies that survive after the bad news are those that can stand the test.
Today, the Chinese-headed stocks that have not been seen for a long time took over from big finance and assumed the responsibility of protecting the market. The negative news in the pharmaceutical sector caused the market to switch from the previous technology + medicine to the current technology + weight.
What remains unchanged is the technology sector. After two trading days of differentiation, the semiconductor sector strengthened again today.
On the 24th, the theme of yesterday was maintained. The infrastructure sector, led by the Chinese character "Zhong" (Chinese) stocks, surged, driving the Shanghai Composite Index to soar above 2,900 points.
In three trading days, the Shanghai Composite Index, led by its heavyweights, rebounded by more than 150 points. As of the close of July 24, the Shanghai Composite Index closed at 2905.56 points, up 1.61% on the day.
In three trading days, three medium-sized positive lines pushed the index above 2,900 points, which no one expected.
However, the rise in the index is of no use, as it only pulls up the big financial and Chinese-headed stocks. Today, securities companies have risen sharply, and Zhongxin Construction Investment has even closed the board.
Brokerage firms and sectors with Chinese characters in their names have been abandoned by the market for a long time. The funds trapped in them cannot be released even after three days of growth.
As for external funds, no matter how you pull them, apart from the index looking better, only a few will follow suit, making it look more like a one-man show.
So over the past three days, even though the index has continued to set new highs since this round of rebound, individual stocks are still in a continuous decline.
Not only did the rise fail to boost market sentiment, but due to the differentiation of sectors, it caused accelerated capital outflow.
An ineffective pull-up is destined to not last long. In the five trading days since July 25, the index began to continue to pull back just like the last time it pulled up.
As of July 31, the last trading day of the week, the Shanghai Composite Index closed at 2876.40 points, and the highest point of this round of rebound was set at 2915.30 points.
Although the Shanghai Composite Index rose 1.02% on a monthly basis, the index did not even dare to touch 3,000 points and was still very weak.
The ChiNext Index was even worse, with four consecutive negative monthly lines, closing at 1561.26 points, a monthly decline of 2.83%.
As pharmaceutical stocks continued to adjust in the last few trading days, although some positions were added, the impact on the net value of Junshi Price Investment was still significant.
At 9:30 p.m. on July 31, the latest updated net value showed a net value of 2.4906, a slight increase of only 0.04% from the previous month.
If it were not for the 12.05% monthly profit of China News Service and Ning Wang's intraday T profit, the net value of Junshi Price Investment would continue to decline this month.
On the last trading day of July, the Shanghai and Shenzhen stock markets only traded 273.13 billion yuan, a new low since February 14, the last trading day before the Spring Festival.
The manufacturing PMI data released this evening also hit a new low in five months. In addition, there are policies that indicate that we must firmly carry out the work of deleveraging.
At the same time, we must resolutely curb the rise in housing prices. The sharp rise in housing prices has become a topic of national concern.
In the evening, the offshore RMB hit a new low of 6.8293 yuan. In addition, relevant departments have also visited various places to inspect the relevant disposal work of vaccines.
On the last night of July, bad news was everywhere, like a dark cloud pressing down on the sky, leaving the market with no chance to react.
On Tuesday, August 1st, a new trading month began. Following the green opening in July, A-shares once again educated investors by opening green on August 1st.
On that day, the Shanghai Composite Index rose in the morning and then fell back, plummeting 1.80%. The index broke through the 5-day line, 10-day line and 20-day line.
The ChiNext Index fell 1.24% and closed at 1541.86 points. Both markets were in the red. Except for some local speculation, sentiment was extremely low.
The same was true on Thursday, August 2. Following yesterday's sharp drop, the Shanghai and Shenzhen stock markets fell again today. The ChiNext Index fell below 1,500 points during the session, setting a new low in three and a half years.
Liquor, food and beverages, home appliances and other major consumer sectors officially began a collective sell-off today. The liquor group hit the daily limit today, and Gujin Gongjiu and others fell 7%.
Maotai Liquor Industry once again fell below the 700 yuan mark, closing at 695.84 yuan.
The large consumer sector, led by liquor, saw its first collective sell-off today, and there was a certain increase in volume. This also means that the extreme market conditions in the second half of the year have officially begun at the beginning of this month.
On Friday, August 3, even though an emergency meeting was held to discuss decisions on maintaining financial stability, MY friction resurfaced, causing the Shanghai and Shenzhen stock markets to plummet again.
In just three trading days, the Shanghai Composite Index lost all the gains made in the entire month of July, falling below 2,800 points again to 2,740.44 points.
The decline of the ChiNext Index was particularly severe, falling by more than 7% in five trading days to 1481.61 points. This week was the week with the largest weekly decline since April 2016.
The exchange rate broke 6.9, internal data was not good, and external frictions re-emerged. Under the influence of internal and external factors, the A-share market was in a panic. Technology stocks that had rebounded strongly in the previous period also suffered sharp declines in the past few trading days.
The entire market was like a headless fly, without any ability to resist. The public offering funds experienced an extremely severe drawdown. In the first three trading days of August, Junshi’s price investment drawdown rate reached more than 5%!
At the end of this weekend, the net value of Junshi Price Investment was fixed at 2.3587, and the drawdown rate in three trading days was as high as 5.59%. These are also the three trading days with the largest drawdown rate since Gu Hao took over the fund.
There is only one word to describe the investor's account: "miserable!"
