Chapter 473 Honeymoon Period
“How much did you sell today?”
After the market closed, Gu Junhao asked as usual how much Oriental shares were sold today. Given the large trading volume today, he should be able to sell a lot.
Yes, not only the announcement of share reduction by Sino-Singapore Telecom, but also the market crash of Oriental Shares today is largely inseparable from the funds of Junshi Group.
"We sold about 400 million shares today, and there are less than 8 million shares left. We should be able to sell them all out tomorrow or the day after tomorrow."
"Okay, very good. I'll use the money I sold to invest in liquor stocks."
Different from the post-holiday performance in previous years, after the Spring Festival this year, both the Shanghai and Shenzhen stock markets showed a trend of sharp rebound as various favorable policies were implemented.
In January, the increase in new RMB loans and social financing hit a record high. The capital market was planning to cut taxes and fees. The Shanghai Composite Index broke through 2,900 points and the ChiNext Index broke through 1,500 points.
In terms of the international situation, the tariff negotiations between the two sides have also progressed well, and the US stock market has also broken away from the ups and downs of last year.
All of this happened after the Spring Festival. In essence, all of this is nothing more than preparation for the official launch of the Science and Technology Innovation Board.
Looking through the phenomenon to the essence, it is impossible for the Science and Technology Innovation Board to be issued and listed below 3,000 points. After clarifying this point, there is no need to worry about market fluctuations.
However, the share reduction was just announced last night, and today the 5G sector saw a large outflow of adjustments, which gave Gu Junhao some headaches.
In A-share trading, people always like to attribute the reasons for market fluctuations to a certain person or a certain type of funds. This time it is Gu Junhao's turn.
However, Junshi Capital has already prepared a series of response policies. Whenever it chooses to reduce its holdings in China News Service, the current situation is likely to occur, and these have already been rehearsed in advance.
The General Manager's Office issued an announcement, saying that it continues to be optimistic about the domestic stock market. The reason for choosing to reduce holdings is nothing more than being responsible to investors, taking profits and having its own capital needs.
After all, Junshi Capital is an investment company. As long as it does not violate any laws and regulations, it is understandable to choose to stop profit at a high level.
Next, the investment department will select several physical enterprises for Gu Junhao to choose from, and then make an investment of a certain proportion.
The combination of finance and entities is the route that Junshi Capital has been adhering to in recent years. Over the past few years, Junshi Capital has invested nearly 1 billion yuan through online private placement and offline equity investment.
The nearly 1 billion yuan of funds includes the private placement of Tuopu and the increased holdings of Xushen, as well as new investments in other real enterprises.
In terms of total number, it has exceeded 20, and the current investment scope has expanded to the entire Ningbo city and other surrounding cities in Zhejiang Province. The shareholding is no longer restricted to 10%.
For example, for some companies in other urban areas, if Gu Junhao is more optimistic about the prospects, he will acquire more shares to facilitate his control over the companies.
Through the matchmaking of capital, these 20 or so companies, if they have related businesses, will take care of each other and reach a mutually beneficial alliance, providing a certain guarantee for the companies to cope with subsequent risks.
By reducing its stake in China News Service and investing part of Junshi Capital's profits in real enterprises, this approach will naturally not cause resentment among the upper echelons.
As for the media hype, let Junshi’s public relations department step in and use all the means possible to reduce the number of hot searches, withdraw the article, and more.
In the Internet age, it is extremely important for a company or a celebrity to have a professional public relations team. It is very likely that a very ordinary thing will ruin all reputation if public relations are not done in time.
On February 27, Junshi Value Investment continued to reduce its holdings in Dongfang Shares. Dongfang Shares, which plunged sharply yesterday, did not usher in the so-called first negative of a bull stock.
Today, the share price of Dongfang fell by 6.82% and opened at 28.71 yuan; the huge negative at a high level jumped downward on the second day, and there is no need to explain today's trend.
The abnormal trend of the stock price after reaching 10 times seems to indicate that the trend of Oriental shares, a monster stock across the New Year, has come to an end.
Investors who hit the limit yesterday are extremely depressed today. They lost 30 points in two trading days. They really can't bear to sell their stocks at a loss.
But if you don’t cut your positions, this trend will be over, and you don’t know what kind of decline is waiting for you next .
Even the investors who jumped in to take advantage of the rebound at the end of yesterday's trading were very depressed , as they lost 7 points overnight; but these people cut their losses very quickly.
The call auction performed poorly, so people just pressed the button to sell their stocks and look for the next one. Short-term high-level speculation is so exciting that it is common for profits to decline sharply within a day.
During the day's trading, Dongfang shares opened low and continued to fall, with trading volume remaining high. The stock price rebounded to a maximum of 30.07 yuan throughout the day and hit the lower limit at the bottom.
In the end, with a daily trading volume of 5.24 billion yuan and a turnover rate of 19.12%, Dongfang Holdings maintained its share price in a cross-yin line at 28.53 yuan, down 6.98% on the day.
Junshi Price Investment sold 230 million yuan today, officially clearing out all of its Oriental shares; after three rounds of selling after the Spring Festival, Oriental shares alone raised a total of 1.33 billion yuan.
47.5 million shares, with an average transaction price of around 28 yuan. With an investment of less than 300 million yuan, the total profit exceeded 1 billion yuan.
I have to say, these monster stocks really make money. Even if you have been buying them in the early stages and started selling them in the later stages, the overall return has exceeded 3.5 times.
China News Service continued to fall by 1.51% today, with its share price at 29.45 yuan. The adjustment of 5G for two consecutive trading days has also caused a certain decline in the popularity of the sector.
However, it is impossible for a hot topic sector to end so quickly. The 5G sector can be said to be a major theme hyped before the Ju factory was destroyed.
If Oriental shares are gone, Western shares will take over. Anyway, the leading position will be taken in turns, and it will be my turn tomorrow.
At 3:30 p.m., the newly appointed village chief made his first public appearance and held a press conference on the establishment of a science and technology innovation board and the pilot registration system to promote the stable and healthy development of the capital market.
The convening of the press conference also means that the consultation period for the Science and Technology Innovation Board has officially ended. The specific details should have been prepared, and the next step is the announcement of the details.
After finishing his speech on the Science and Technology Innovation Board, the new village chief concluded: "All parties in the market should work together to make the Science and Technology Innovation Board a success."
Well, those who understand will understand. By the time the Science and Technology Innovation Board is officially listed, there should be no major systemic risks in the market.
At the press conference, he also talked about the changes in the market this year and his feelings since taking office a month ago; as of today, it is exactly the 31st day since he took office.
During the 31 days, the Shanghai and Shenzhen stock markets each rose by more than 300 points. A large part of the public funds that almost all suffered losses in 2018 have returned to their previous net value levels.
Overall, this month, the market has been very respectful to the new village chief. Just like the previous one, investors still have expectations for the new village chief to take office.
On Thursday, February 28, the last trading day of February, both the Shanghai and Shenzhen stock markets fell slightly. The Shanghai Composite Index closed at 2940.95 points for the month, up 13.79% at the end of the month.
The ChiNext Index surged 25.06% in the month, closing at 1535.68 points.
In February, which lasted only 15 trading days, money-making opportunities were everywhere. The A-share market, which experienced a historic bear market last year, has seen an explosion of money-making opportunities after the Spring Festival.
The most intuitive performance is that the net value of Junshi Price Investment Fund has soared from 2.9116 last month to 3.5734 this month!
In 15 trading days, the increase was as high as 22.73%, and the overall size of the fund also increased to more than 35 billion yuan. This is the fastest month-by-month increase in fund size of Junshi No. 2 since its establishment.
"There is no such thing as too early or too late in life. Everything is just right."
When Junshi Capital announced that it would reduce its holdings in China News Service, causing great turbulence in the 5G sector and surrounded by rumors; the new village chief's inauguration conference and Junshi Group's solid performance this month attracted a lot of attention.
In the early morning of March 1, before the new village chief’s speech was digested by the market, A-shares ushered in another major positive news.
MSCI will expand the inclusion factor of A shares in the MSCI Global Fund Quasi Index in three steps, eventually to 20%.
The entire A-share market has a market value of more than 30 trillion yuan in the MSCI sector, accounting for 60% of the total market value of the Shanghai and Shenzhen stock markets. Institutions predict that this expansion will attract more than 300 billion yuan of incremental funds for A-shares this year.
In the next ten years, it is estimated that about 100 billion to 200 billion US dollars of foreign capital will flow in every year, which is indeed a huge positive for A-shares.
Since the market rescue in October last year, A-shares have been enjoying policy dividends before being included in the MSCI factors.
The new policies of the China Securities Regulatory Commission, the gradually improved financial services system, the increasing awareness of preventing financial risks, and the postponement of friction incidents have now led to incremental funds.
With the support of a series of favorable factors, the first trading day of March, just like February, both the Shanghai and Shenzhen stock markets had a good start again.
The Shanghai Composite Index rose 1.80% to 2994 points.
Over the weekend, the China Securities Regulatory Commission released a series of major institutional rules for the Science and Technology Innovation Board, and the Science and Technology Innovation Board finally unveiled its veil to the public for the first time.
Monday, March 4th.
Supported by a series of favorable factors, A-shares in Shanghai and Shenzhen stock markets both jumped upward, opened high and closed higher. The Shanghai Composite Index closed at 3027.58 points, up 1.12%.
Six months later, the Shanghai Composite Index returned to 3,000 points while recovering the downward gap on June 19.
Time is like a drop in the ocean. Nine months ago, no one thought that the Shanghai Composite Index would fall below 3,000 points and even below 2,500 points so easily.
Around the Spring Festival this year, no one expected the index to return to 3,000 points so easily in just 16 trading days.
It’s so fast that the investors can’t react in time. Although they are not bearish on the market before the Spring Festival, they still remain vigilant about it.
However, in the blink of an eye, the index has returned to above 3,000 points, and Maotai's stock price has risen from the lowest price of 509 yuan to today's price of 789.30 yuan.
Maotai Liquor Industry, whose stock price has risen by more than 50%, has refreshed its historical highest price again and again. Looking back, many institutions are troubled by the deep pit in October 2018.
Among the top ten holdings of Junshi Investment in January, the liquor sector appeared again after 10 months, making major institutions and investors realize that Gu Junhao had successfully bottom-fished again.
Up to now, Maotai's price has increased by more than 50%, which makes people even more jealous. Why can Gu Junhao always make such accurate predictions?
March is the time when Junshi Price Investment announces its first quarter financial report and the top ten fund positions. The market has begun to look forward to changes in Junshi Price Investment's first quarter financial report.
Since the three high-profile calls for bottom-fishing in mid-September last year, Junshi Price Investment's quarterly changes in holdings have unknowingly become one of the market's focus.
Invisibly, Junshi Value Investment has established a relatively authoritative credibility in the A-share market through the performance of its funds and Gu Junhao's own extraordinary performances.
At 5:30 p.m. on Friday, March 15, Junshi No. 2 promptly announced its first quarter financial report and top ten holdings, with no changes from those announced in January.
Ningwang, China News Service, Maotai, Wuliangye, Oriental Fortune, Mindray Group, Hengrui Group, Aier Group, Sunshine Group, and Longji Group.
The holding direction is still mainly liquor + new energy + technology; but everyone knows that next, China News Service will undoubtedly be removed from Junshi Investment's top ten holdings.
As of today, Junshi Value Investment has met the 15 trading days stipulated in the announcement of the share reduction.
That is to say, starting from next Monday, March 18, Junshi Group has met the prerequisite conditions for reducing its holdings.
On March 15, the share price of China News Service, which had been adjusted continuously this month, closed at 28.38 yuan. The share price has fallen below all support levels of the 5-day, 10-day and 20-day lines on the daily level.
Perhaps, they also felt the pressure from Junshi Group's share reduction, and even if the funds still remaining in the market had no intention of selling, they also did not dare to push up the price.
Another 5G stock, Oriental Shares, experienced a sharp adjustment in the last three trading days of February, but unexpectedly stabilized its trend in early March.
After stabilizing on March 1, Dongfang shares have once again gone on a four-day winning streak, with the share price soaring directly to an all-time high of 40.49 yuan, attracting the attention of the market.
But unfortunately, this was just a flash in the pan. Dongfang shares did not continue with the momentum after the Spring Festival and went straight to the 50 yuan price expected by retail investors.
On March 8, Dongfang Holdings opened at the lower limit price without any warning, with the share price at 36.44 yuan. After rising to the historical high of 41.88 yuan during the trading session, the share price plunged sharply again.
In the end, Dongfang Holdings, which made an inverted T-shape and returned to the lower limit price, officially ended its crazy trend.
The after-market Dragon and Tiger List showed that hot money began to sell off stocks on a large scale. The main force behind the market crash today was Brother Zhao, who sold off more than 180 million yuan in a single day.
The team that took over was the Tibetan Mastiff, which bought more than 150 million yuan in a single day.
On March 11, Dongfang Holdings once again closed at the limit down, showing that the Tibetan Mastiff team collectively cut losses and ranked first on the Dragon and Tiger List, with a total sales of 70 million yuan.
Buying a position has become a hot money seat with the nickname "Pork Rong". Pork Rong, who mainly engages in taking over business, once intervenes in a certain stock at a high position, it also means that the market of this stock is completely over.
As of March 15, Dongfang shares closed at 30.07 yuan, with the share price falling 21.18% in one week.
Since then, Oriental Shares started its long road of decline, and the price of 41.88 yuan became the highest point in its history that was difficult to surpass.
On March 18, affected by the sharp rise in the Shanghai and Shenzhen stock markets, the 5G sector, which had been adjusted for a month, rebounded today. The leading Dongfang shares unexpectedly made a comeback and hit the daily limit again.
This trend is really very similar to the trend of the magic car that rose from time to time after reaching its peak in order to attract the attention of retail investors.
Not every flow of funds will be like the Wencheng Gang, who recklessly smashed the limit down and flexed their muscles, pushing up the stock price while selling out. This is the norm for A-shares to fall from highs.
Sino-Singapore Communications' share price rose 2.85% today with a small volume, and the share price was 29.19 yuan. Junshi Group, which lifted the sales restriction ban today, began to reduce its holdings in Sino-Singapore Communications.
It is still the public funds that sell first. Today, Junshi Price Investment sold 35,000 lots, with an average transaction price above 28.5 yuan, and the selling funds were nearly 100 million yuan.
Selling in the secondary market is not the main channel for Junshi Group, but bulk transactions are. Therefore, the impact on stock price fluctuations will be smaller.
Although bulk transactions are generally sold at a discount, Junshi Group will lose a considerable amount of profit, but this is also a last resort.
“Let’s first reduce our holdings to 4.99%, and then selling them later will be much easier.”
