Chapter 458: Boosting Market Confidence
Ning Wang's instant limit boosted the sentiment of the ChiNext and its concept stocks to a certain extent. The Shenzhen Municipal Government's rescue measures at the weekend also boosted the local stocks in Shenzhen.
At the opening, a total of five local stocks in Shenzhen Stock Exchange collectively reported a flat board, leaving retail investors with no chance at all.
"It's too independent. This approach won't last long. It will probably be over in a day or two. Sigh." Gu Junhao sighed.
If the market is on the flat board and there is no turnover, the probability of going far is relatively small. The real rise is never in the form of a flat board.
All the monster stocks will have room for sustained growth only when there is sufficient turnover. Other investors are not fools and it is impossible for them to rush in and take over the shares for you.
Gu Junhao hates this kind of one-line sentiment, including Ning Wang's trend today.
However, Ning Wang did not have many orders today. If the market changes, the possibility of opening them is still relatively high. The best trend will be a change of hands on the board and then a wash.
Stocks must have sufficient turnover. If Ning Wang has sufficient turnover today, it will be a sign of reversal.
Today's Shenzhen local stocks, which are the weather vane, all remained flat, ending today's market trend ahead of schedule. Short-term funds had nowhere to go and could only run around in all directions.
At 9:45, the high-dividend and high-bonus board moved up abnormally, and Huahong shares closed the board straight and became the leader of the day. However, this sector, which has been hit hard in recent years, obviously can no longer drive the sentiment of the broader market.
At 10 o'clock, the Shanghai Composite Index reached a daily high of 2611.97 points and began to turn downward. Ten minutes later, the three major indexes of the Shanghai and Shenzhen stock markets began to turn green one after another.
"It's cold again, and it continues to bottom out. Today's market is like this. The good news over the weekend will only last for half an hour, giving people a chance to run away."
Last week's continuous sharp decline has made the market like a frightened bird. Once the index starts to turn downward, it is no surprise that followers will rush out decisively.
This is probably also a major feature of the bottom and top areas. The intraday diving behavior is very serious. Repeated diving market tortures the undetermined people to sell.
At 10:40, the automobile sector, which had performed weaker than the index in the morning, accelerated the outflow of funds as it fell unilaterally in the morning. Changan Group fell 6%, and blue-chip stocks such as Shanghai Gas fell more than 4%.
As a type of consumer goods, the automobile sector saw a good growth last year. So far, like the liquor sector, there has been no significant oversell, except for some weak stocks in the sector.
Judging from the performance of auto stocks today, the consumer sector will start to be hit again today.
Yes, only when the big consumer sector has officially fallen to the bottom, can the Shanghai and Shenzhen stock markets be considered to have reached their true bottom.
Unfortunately, after so many days, Gu Junhao still failed to wait for Maotai to hit the limit down, and the price still remains above 600 yuan. Even the price of Wuliangye is currently around 60 yuan.
Liquor is really strong, and its ability to withstand declines is simply amazing, which shows the depth of capital participation.
No matter what, Gu Junhao still wants to wait a little longer. A retracement rate of around 20% is still very attractive for this concept sector with large trading volume.
At the midday close, the three major indexes had all fallen by nearly 1%. The Shanghai Composite Index closed at 2586.25 points, down 0.79%.
In the afternoon trading, the three major indexes no longer had any upward performance. Consumer stocks began to plummet across the board since the afternoon. Haier shares hit the limit down in the afternoon, and the automobile sector as a whole fell by more than 4%.
Ning Wang also opened in the afternoon, but the follow-up was good, and it always maintained a high-level fluctuation of more than 8%, and performed very strongly throughout the day.
In a market downturn, strong stocks like this are still very conspicuous. Among the stocks held by Junshi Value Investment announced last Friday, Ning Wang is still the largest holding.
On Saturday morning, Gu Junhao continued to maintain his bullish view on major social platforms. Today's performance of Ning Wang can be said to have greatly made him proud.
Another heavily-held stock, China News Service, also performed very well today. China News Service, which bottomed out at 14.50 yuan last Friday and rebounded, finally made a V-shaped reversal.
China News Service, which had an amplitude of nearly 9% throughout the day, also rose by 2.83% in the late trading, and its share price returned to above 15 yuan, closing at 15.60 yuan.
Today's China News Service also performed well. China News Service opened flat in the morning and surged more than 6% during the session. Although it fell significantly in the afternoon, it was still in the red against the market trend.
At three o'clock in the afternoon, the full-day trading ended, and the three major indexes fell collectively by more than 1%. The Shanghai Composite Index and the ChiNext Index fell by nearly 1.5%, both hitting new lows since last week.
Ning Wang, which performed brilliantly, closed the board again in the closing period. Ning Wang, with a total transaction volume of 1.36 billion yuan throughout the day, bucked the market trend and hit the daily limit, becoming one of the few turnover boards on the market today.
China News Service rose again by 2.37% today, closing at 15.97 yuan. The two heavily-weighted stocks rose against the market trend, indicating that the lowest positions since this round were created last Friday.
Considering the decline in the index, it can actually be confirmed that these two stocks have bottomed out ahead of schedule.
Especially Ning Wang, whose performance has exploded. If nothing unexpected happens, the price of 59.51 yuan should be the lowest point in its history since its listing.
Compared with June 22, Ningwang’s lowest price on the first day of trading was 63.49 yuan, and the retracement rate was only 6.68%!
However, compared with the highest point of 95.08 yuan, its retracement rate of 59.77% is quite terrifying.
Investors who bought at high prices, even if they firmly believed in King Ning and did not sell at a loss, must have suffered a lot in the past three months, right?
However, more investors should be cutting their losses.
Many times, even if you firmly believe in a stock, it will be difficult to hold on to it if you buy it at the wrong position and it encounters a decline and adjustment phase.
Chasing high prices will ruin your life!
The continued downward trend of the market has caused investors to lose all confidence, forcing the national team to take action once again to maintain the index, and the ones mobilized were still the big financial institutions and the two oil companies.
More than 40 stocks in Shanghai and Shenzhen stock markets hit the daily limit!
However, it is of no use. In a market with no confidence at all, the more the two oil companies are mobilized, the more afraid investors become.
The two markets have fallen to the current level. What is needed is not the so-called maintenance of the index, but to boost investors' confidence!
On the 16th, the Shanghai Composite Index fell nearly 1% again. As heavyweight stocks such as HuaDa Technology Co., Ltd. on the ChiNext suffered heavy losses, the index fell 2.68% during the day and closed at 1216.69 points.
Ning Wang, which hit the daily limit yesterday, maintained red market fluctuations throughout the day. It was also affected by emotions in the late trading and closed with a drop of 0.43% at 68.85 yuan.
The ChiNext Index is on the verge of 1,200 points, and it only takes one more call auction to break below that level...
After a decline lasting 9 and a half months, the index returned to its level around July 2014, which was the starting point of the 2015 bull market.
Everything has returned to the starting point, and the index has once again reached a historical bottom. After the heavy losses, the A-shares have more than 300 stocks priced below three yuan, setting a nine-year high.
As investors who are still staying in the market, don’t you know that this is a historic bottom?
Gu Junhao couldn't believe that A-share investors would be so ignorant. There were many people who could see the historic bottom.
But apart from those who are deeply trapped, investors holding coins off the market, even though they know that this is a historic bottom, still dare not buy at the bottom.
Everything stems from the lack of confidence. Without confidence, there is no confidence.
Gu Junhao even felt that the rise in the two oil companies and the large financial sector led by securities firms was a deliberate attack on the confidence of off-market currency holders.
So what if yesterday’s situation repeats itself, and so what if the stock price hits a new low below three yuan? Those who hold the currency have been scared out of their wits and dare not buy at the bottom!
Although there have been policies for various projects to boost market confidence, it is ultimately a lot of noise but little action. Apart from the Shenzhen Stock Exchange putting out tens of billions of funds, there has been no substantial action.
Just like the rescue of the market after the stock market crash in 2015, the market now urgently needs strong and flexible policies to boost market confidence.
Gu Junhao cannot give such confidence. Even today, after two consecutive trading days of decline, when he was interviewed by financial media, he still maintained a bullish view.
When being interviewed by financial media , Gu Junhao said with certainty: "This is the bottom, and it is a historic bottom. Many high-quality stocks have fallen too far below their valuations. You can buy the bottom and wait patiently!"
"If ordinary investors cannot grasp the market trend, I suggest that you delete the stock software after buying at the bottom and wait a year to see. Of course, you should buy some high-quality stocks, such as new energy, medicine, liquor, etc."
The media that Gu Junhao was interviewed today is a relatively authoritative securities newspaper in the industry and has a certain official nature in the industry.
Perhaps it was deliberately arranged because such a young fund manager with large cash flow has made high-profile bullish comments twice in less than a month.
The next morning, October 17, the official website of the China Securities Regulatory Commission announced that the public comment period for the proposed amendments to the share repurchase system for listed companies had ended.
The first step of the rescue policy may start with stock buybacks.
In this light, the exclusive interview arranged for Gu Junhao is more like a part of the market rescue policy; this interview may be a milestone interview for Junshi Capital.
In the autumn of 2018, Junshi Capital, which has been steadily advancing and working hard for nearly five years, has finally become a force that cannot be ignored in the current domestic capital market.
