Chapter 468 Relocation
For investors, 2018 is truly a year that is hard to forget and one that they don’t want to recall.
The nine consecutive positive days of the Shanghai Composite Index at the beginning of the year had predicted that this would be an extraordinary year, but no one expected that although we guessed the beginning, we could not predict the ending.
Even in a stock market crash like 2015, investors were happy for at least half a year. The market conditions in 2016 were not good either, but not so exaggerated. There were indeed many big rebounds.
In terms of the degree of misery, the only year that can be compared with 2018 is probably 2008, when the Shanghai Composite Index plummeted 65.39%, and the index fell by 3440.75 points in one year.
At that time, there was no GEM...
On the last trading day, the Shanghai Composite Index closed at 2492.90 points with an increase of 0.44%. The stock index fell by as much as 24.59% throughout the year.
The Shenzhen Component Index fell 34.42% this year, from just over 11,000 points at the beginning of the year to 7,239.79 points on the closing day.
The ChiNext Index closed at 1250.53 points for the whole year, with a drop of 28.65%. The three major indexes performed worse than each other.
The Shanghai-Shenzhen core index fell by more than 16% throughout the year, all 28 Shenwan first-level industries were in the red, and among the 328 concept sectors, only 2 were in the green.
Among the 28 Shenwan-level sectors, the two sectors with the smallest declines were leisure services and banks, at 10.61% and 14.67% respectively.
These two sectors are also the only sectors in the market that have not fallen by more than 20%.
In the entire market, more than 90% of stocks closed down for the year, with the median change being as high as -33.5%. The total market value shrunk by 13.26 trillion yuan throughout the year, and the average loss per investor exceeded 80,000 yuan.
The stock king is still Maotai Liquor Industry. As the highest-priced stock in the A-share market, although Maotai Liquor Industry suffered a financial crisis in the third quarter, its stock price is still very strong.
Maotai Liquor's share price fell from 700 yuan at the beginning of the year to 590.01 yuan at the close of the last day of the year, with an annual decline of 15.41%, far outperforming its sector and the broader market.
If it weren't for this sudden crash, this year's Maotai might have really been able to close the year higher against the market trend, at least in December.
In December, Maotai bucked the trend and closed up 4.43%. It has to be said that Maotai's performance is truly the stabilizer of the sector and the market.
This may also be one of the reasons why major institutions and media outlets were bearish after Maotai’s performance exploded in October.
Otherwise, the stock price cannot be brought down, and there will be no way to enter the market at a lower price. There is no other way but to take over the shares.
However, apart from Maotai, there are only 6 stocks in the A-share market that are worth more than 100 yuan. At the same time, a large number of low-priced stocks have begun to emerge.
Currently, there are nearly one thousand stocks with share prices below 5 yuan, 52 stocks with share prices below 2 yuan, and 3 stocks with share prices below 1 yuan. The cheapest stock in the entire market is Zhonghong Tui, which is priced at 0.22 yuan.
Including a 5 yuan handling fee, you only need 27 yuan to experience A-share trading. The threshold is extremely low.
Looking at the world, this year is also the worst year for global financial assets in more than 100 years. Among all the stock markets in the world, only the stock markets in the football kingdom and India are rising.
For other markets, the decline is just different in degree.
The performance of public funds is the most representative of how bad the market is. Due to position restrictions, public funds cannot go short like private funds and retail investors, and must maintain high positions every day.
It is this position requirement that limits the performance of public funds. Coupled with the frequent occurrence of black swan events throughout the year, public funds often step on landmines.
Throughout the year, excluding equity-oriented funds with abnormal net value, funds that have been established for less than one year and funds that have been delisted within the year, the top-ranked active equity fund is still Junshi Value Mixed, with an annual yield of 5.28%.
Affected by the overall market and individual stocks in December, the net value of Junshi Value Investment Fund also retreated from 2.8925 in November to 2.7942 after the close of December 28.
Compared with the net value of 2.7733 at the end of October, the increase is less than 1%; even so, it is already the best performing public fund in the market.
After Junshi Value Investment, it ranks second on the fund annual yield list with an annual yield of -4.34%!
Countless funds have been delisted, and the number of funds whose overall size has been halved this year is as high as 17. The top funds have all shrunk severely.
The overall return of public funds also hit a new low in the past seven years, if it were not for Junshi Value Investment, a stock-oriented fund with positive returns.
Then, in the entire market, no fund will have positive returns, and it can be said that the entire market will be wiped out!
Junshi Price Investment's performance throughout the year has maintained the last bit of face for its peers in the public fund industry; of course, these people may not care.
But for industry associations, having a fund with positive returns throughout the year is always much better than having no fund at all, and it also has certain highlights in terms of publicity.
It is really unexpected that the champion return of public funds in 2018 is only a pitiful 5.28%, and to be honest, this championship is somewhat watered down.
Until mid-September, the net value of Junshi Price Investment's fund was in a downward trend. It was only after opening for subscription and replenishing working capital that the fund achieved a major turnaround in October, allowing it to make a profit for the whole year.
Prior to this, Junshi Price Investment had controlled the overall size of the fund to a smaller level by relying on the annual limit, and combined with the minimum standard position operation model, it was able to control the extent of losses.
Afterwards, by liberalizing the subscription method, the overall size of the fund was expanded, and a large amount of new funds entered the account, achieving the effect of double covering the position.
Afterwards, the market experienced a big rebound in October. During the rebound, Junshi’s stock selection strategy was excellent, and it achieved the ultimate return ratio that month.
Simply put, it is like a retail investor who transfers most of the funds out of the securities account in a bear market. Although the position seems high, the overall loss is within a controllable range.
When the time is ripe, we will increase our holdings by transferring funds and turn losses into profits in one fell swoop.
Gu Junhao used the method of setting limits to block potential funds outside the fund, and then released it for subscription when needed, thus increasing his holdings in one fell swoop and laying the foundation for victory.
This method is very shameless, and among the current public funds, only Gu Junhao can achieve such an effect and maximize the effect.
Other fund managers, even if they wanted to use this method, could not do it because they do not have the appeal of Gu Junhao.
This appeal is inseparable from Junshi No. 2's stable performance throughout the year, in addition to its excellent performance in recent years.
Before September, Gu Junhao would rather give up management fees and maintain a low position or even an empty position in Junshi No. 2 for a long time, thus greatly reducing losses for customers.
From late September to the end of the year, Junshi Group's bottom-fishing was even more amazing, and Junshi No. 2's performance was also excellent.
Throughout the year, Junshi No. 2 stood out from the entire market with a net value of 1.8353 and a yield of 21.99%, attracting a lot of attention.
It was also the stable performance of Junshi No. 2 throughout the year that stabilized Gu Junhao's basic base and won the trust of large investors, while small retail investors pushed up the popularity of the fund when the fund's returns rose.
The combination of private equity funds and public equity funds is an advantage that not all fund managers have, as they have no shortage of both funds and popularity.
As long as the rate of return remains stable, Gu Junhao's advantage will be maintained.
A very dishonest method, but also very effective.
The end of another year has arrived, and Junshi No. 2, whose total scale has reached 51.388 billion yuan, is once again about to open subscription and redemption channels.
Nowadays, the opening of subscription and redemption channels for Junshi No. 2 at the end of each year is a major event in the Beicang District. Countless wealthy people wave their checks and rush to the financial building from all directions.
But this year, we have to move on to a different place and a different time.
Because Junshi Capital is about to move to a new office building, in its fifth year of entrepreneurship, Junshi Capital will officially move into its own office building.
Junshi Building, which has already completed its soft furnishing, has seen employees move in one after another since mid-December.
January 1, 2019 , New Year’s Day.
The renovation of the new 16-story office building located along Changjiang Road took more than half a year. The four big characters "Junshi Capital" on the top of the building shine brightly in the winter sun.
The interior of the building does not look like that of a wealthy financial company, but rather looks more like the style of an Internet company, full of technology and youthful atmosphere.
The hotel is fully equipped with dedicated staff restaurants, leisure areas, gyms and other facilities.
However, considering that the company's boss is less than 27 years old and the company is generally young, the media and bigwigs from all sides who rushed to the scene after hearing the news understood it.
Today is the day that Junshi Capital officially moved into its new office building. The local Chamber of Commerce, in conjunction with Junshi Capital, hosted a charity banquet .
More than a dozen media outlets from all over the country came to the event after hearing the news, as well as many colleagues in the industry and some bigwigs who sent their blessings on the Internet.
It can be said to be quite impressive.
Even though it is still a relatively marginalized individual in the industry, Junshi Capital's overall management scale of nearly 100 billion yuan has forced some of its peers to look up to it.
Even if you don't like it, you can only keep it in your heart.
A black Cullinan parked steadily in front of the Junshi Capital Building. Gu Junhao and Zhang Yiru got out of the car first, followed by Zhang Mingde and Qin Ruolan, who came out holding little Gu.
Looking at the magnificent and brand new Junshi Building, Zhang Mingde and his wife were speechless for a moment.
The two were quite proud of their self-made son-in-law , but no matter how much news they had read before, they had heard that their son-in-law had a lot of cash.
None of them is as shocking as seeing a towering building in person. Even if Ningbo is not a first-tier city, it is still a top second-tier city.
Although housing prices have not skyrocketed like in some places in recent years, it still requires strong financial strength to buy a 16-story building like this.
For ordinary people, a house is always the most intuitive measure of strength and wealth.
While other young people of the same age are still struggling to buy a house, my son-in-law is already able to buy a building.
Well, I heard that it was paid in full, it’s so generous!
After seeing this office building, Qin Ruolan felt a sense of pride. It is said that a son-in-law is half a son, and having such an outstanding son-in-law is enough to satisfy her.
"Dad, Mom, let's go in." Gu Junhao said to the stunned Zhang Mingde and his wife.
If one does not return to his hometown when he is rich and powerful, it is like walking in fine clothes at night; although Gu Junhao did not show off in a big way, he was very happy to invite his relatives to visit his own office building and enjoy the praise of his elders.
To Gu Junhao, Zhang Mingde and his wife are no less important than his own parents.
When they were dating Zhang Yiru, neither of them showed excessive doubt towards Gu Junhao who did not have a proper job, and they were very tolerant.
Later in the entrepreneurial process, Zhang Mingde also provided great support. Although he was an intellectual, he did not have financial support.
But in terms of personal connections, the financial officer Guo Yuanwei who recommended Gu Junhao has now become Gu Junhao's right-hand man.
What's more, Zhang Mingde also served as the legal representative of Junshi Capital in the early stage. Those who understand this position of legal representative know that if things go wrong, he will become the scapegoat.
If something happens to the company, Gu Junhao, the actual controller, may not have any big problems, but Zhang Mingde, the legal representative, will definitely be unlucky. At least he will definitely lose his job as a teacher.
Was it because of the 2% stake that Gu Junhao gave him? No; at that time, Junshi Capital’s 2% stake was not as dazzling as it is now.
The profits from that few shares were almost dispensable to Zhang Mingde, not to mention that he was holding them on behalf of his daughter.
The reason why Zhang Mingde was willing to do this was simply to use his career to protect his daughter and son-in-law, and he would take the responsibility if anything went wrong.
Poor parents in the world~
As soon as the Cullinan stopped, it was recognized by the media gathered downstairs. If it was in Beicang, Gu Junhao's Cullinan would be as famous as the Phantom with a price of 88888.
Photographers pressed the shutter buttons of their cameras frantically; of course, the main people they were capturing were Gu Junhao and his wife.
During the capture process, it is inevitable to capture little Gu making her first public appearance, but these pictures will be processed later.
Photos of children must be blurred, which is almost an industry-wide rule, not to mention that the media and public relations departments have already made arrangements in advance.
Little Gu, who was only two years old, was held by his grandmother. His round eyes darted around, and he seemed a little nervous, but not afraid.
After greeting the reporters waiting downstairs, Gu Junhao took Zhang Yiru's hand and walked into the office building with his father-in-law and mother-in-law.
When they arrived at the floor with the most employees and met Gu Junhao's family, everyone, regardless of their position or age, stood up to greet them.
"Hello, Mr. Gu."
"Hello, Madam Boss."
"Hello, uncle and aunt."
The employees had no complaints about being asked to work overtime today. They received triple pay plus red envelopes, and they could just show off and save face in the company. They didn't have to do any specific work, so why not?
After all, Zhang Mingde and his wife are teachers with many years of teaching experience. Faced with such a situation, they did not seem embarrassed and responded generously.
Little Gu was also babbling in Qin Ruolan's arms. It was the first time he saw so many people and he seemed a little excited.
On New Year's Day 2015, Gu Junhao and Zhang Yiru officially got engaged, and the market then entered a five-month crazy growth mode.
Three years later, on New Year's Day 2019, Gu Junhao led his family and officially moved into his own office building.
What will happen to the stock market in 2019?
