Chapter 73 Shanghai-Hong Kong Stock Connect
Thursday, April 10, 2014.
The Boao Forum has announced that it will actively promote the interconnection mechanism between the Shanghai and Hong Kong stock trading markets, and establish a two-way opening and healthy development of the Shanghai and Hong Kong capital markets.
"We should pay attention to the remarks made by someone (a big V)." In his previous life, Gu Junhao always regarded the remarks made by someone (a big V) as a reverse indicator.
Whenever he speaks, either on the same day or the next day, the market or individual stocks will fall rapidly.
At that time, I had a position that had been rising for two or three months, with an increase of 50%. As a result, someone (a big V) made a statement that affected the relevant sector, and the increase was wiped out in just one week.
This was the first time that Gu Junhao felt the power of market information and he was deeply impressed.
However, he should be referring to the Shanghai-Hong Kong Stock Connect. As far as I can remember, the Shanghai-Hong Kong Stock Connect was launched this year. Theoretically, it is good for the overall market.
While waiting, 9:25 arrived and the final quotes were confirmed in the call auction of the two markets. The Shanghai Composite Index opened at 2105.88 points and the ChiNext Index opened at 1374.61 points. Both markets continued to open higher.
Dafu Technology opened lower today, at 25.49 yuan, down 1%.
"It seems that we still don't want to stay too far away from the five-day line. It looks like we still need to adjust today." Gu Junhao stared at the market, thinking about how he should operate.
At yesterday's close, Dafu Technology's stock price deviated from the five-day line by more than one yuan due to its large increase. Judging from today's opening, the main funds want to cool down and take advantage of the rise in the two markets to make another cleanup?
However, it is also possible that some of the hot money inside cannot stand the adjustment and plan to exit.
"Just adapt to the situation. The ChiNext Index should test the resistance level today. The probability of it passing directly is not high."
The two huge negative lines above have trapped the market. It is impossible to pass the pressure level directly unless the volume explodes. However, the Shanghai Composite Index also opened high. In the absence of external incremental funds, there is pressure for funds in the market to be diverted. The probability of passing the pressure level directly is relatively small.
At 9:30, trading began. The Shanghai Composite Index opened high and closed low, and the index turned green, but remained within a narrow range of fluctuations. The lowest point was only below 2100 points, reaching 2098.08 points.
The Shanghai Composite Index performed generally, and funds poured into the ChiNext. The ChiNext Index rose rapidly, and at 9:40, the increase had exceeded 0.7%.
Dafu Technology continued its independent market trend, opening low and then continuing to fall to 25.08 yuan at 9:35, a drop of 1.8%. The trading volume also increased compared with yesterday's morning trading.
"It looks like there will still be adjustments today, but the ChiNext Index should be able to close with four consecutive positive days."
If the Shanghai Composite Index continues its early morning trend, some off-market wait-and-see funds will most likely enter the ChiNext. The principle of buying high and not buying low is still suitable for most people.
At ten o'clock, the ChiNext Index rose by more than 1%, less than 7 points away from the 20-day pressure line. After half an hour of volatility after the opening, Dafu Technology also rose to the opening price again.
At 10:05, Dafu Technology's stock price rose slightly and turned positive to 26.18 yuan, while the ChiNext Index experienced a correction and volatile adjustment.
"It is true that when the index rises, it will pull back, and when the index pulls back, it will rise." Judging from the time-sharing chart, Dafu Technology and the ChiNext Index showed an alternating rise.
This situation continued until the midday closing, with the ChiNext Index at 1393.67, up 1.69% and above the 20-day line, while Dafu Technology closed at 26.05 yuan, up 1.08%, slightly underperforming the index.
At the same time, the Shanghai Composite Index has also risen to a flat position, and the K-line shows a cross-yin line state.
At the midday close, the market received important news. The China Securities Regulatory Commission and Hong Kong Securities and Futures Office jointly issued an announcement to launch the details of the Shanghai-Hong Kong Stock Connect. The total quota of the Shanghai Stock Connect is RMB 300 billion, with a daily quota of RMB 13 billion; the total quota of the Hong Kong Stock Connect is RMB 250 billion, with a daily quota of RMB 10.5 billion.
"Oh my god, I thought the ChiNext would be lucky enough to stand above the 20-day line today, but it looks like there is no hope today." Gu Junhao was speechless when he saw the news.
The details were responded to so quickly, they must have been prepared a long time ago. It seems that funds will flow back into the Shanghai Stock Exchange in the afternoon. The opening of the Shanghai-Hong Kong Stock Connect will undoubtedly be beneficial to some large-cap blue-chip stocks and AH dual-listed stocks.
As funds flow into large blue chips, highly valued small and medium-sized stocks will inevitably be neglected, and the risk of a pullback in the ChiNext will become even greater.
At the opening of the afternoon session, the big blue chips of the Shanghai Composite Index collectively leading the gains, rapidly pulling up the overall market index, and related stocks with negative premiums for AH shares all hit their daily limit.
During the same period, the ChiNext Index quickly fell from above the 20-day line, with a drop of more than 0.5% in half an hour. However, at this time, Dafu Technology rose abnormally, with its share price quickly rising from 25.93 yuan to 26.70 yuan, an increase of 3.59%.
"There's something wrong with the volume. The amount that has been pulled up is not as large as the amount that ran away in the morning. There are no big orders." The strange performance of Dafu Technology on the market also attracted Gu Junhao's attention.
Although we are optimistic about its stock price rising in the long term, the sudden news of the launch of the Shanghai-Hong Kong Stock Connect is obviously bad news for small and medium-sized enterprises, and it is impossible for Dafu Technology to have no reaction at all.
"Small orders are coming in, and large orders are going out. This means that some of the funds want to run away." After observing for another ten minutes, Gu Junhao decided to go with the flow.
At this time, Dafu Technology is still in the process of rising, but they are all small orders of less than 1,000 lots, while the selling orders are getting bigger and bigger.
"Sell." When Dafu Technology's share price hit 27.39 yuan, with an increase of more than 6%, three orders of more than 2,000 lots appeared on the market in an instant to dump the stock.
In that case, let’s lend a hand. Gu Junhao also had 3,000 lots of Dafu Technology in his hands. He directly set a flat price of 25.77 yuan and quickly escaped.
Listing the flat price does not mean that the transaction will be completed at the flat price. It is executed according to the real-time buy orders. Large and small buy orders digest Gu Junhao's 3,000 lots of Dafu Technology.
After the last sell order at 27.03 yuan was executed, Gu Junhao's 3,000 lots of Dafu Technology were also successfully liquidated, with an average transaction price of 27.10 yuan and a capital recovery of 8.13 million yuan.
It was already two o'clock. This time, Dafu Technology did not choose to go against the ChiNext Index, but fell back as quickly as the index.
At 2:05, Dafu Technology fell to 26.49 yuan, and the increase narrowed to 2.79%. The fifteen-minute drop was as high as 3.5%, ranking among the top five-minute drops within the day.
At 2:15, Dafu Technology fell to 26.18 yuan, and the ChiNext Index also fell below the yellow moving average of the day.
"Looking at the selling volume, we have to wait until the closing auction to buy it back. It can't be stopped." Gu Junhao thought as he looked at the continuously falling share price of Dafu Technology.
Dafu Technology did not stay in the red market for long. The decline at the end of the trading day further accelerated the panic of funds in the market. At 2:30 p.m., Dafu Technology was priced at 25.08 yuan, and the decline returned to 2.69%.
In just forty minutes, Dafu Technology went from a rise of more than 6% to a drop of 2.69%. The nine-point drop was a drastic change. Countless retail investors who rushed in at high levels were cursing at this moment.
At 2:35, after Dafu Technology rebounded slightly from 25.08 yuan to 25.56 yuan , it was again hit by a sell order of 5,000 lots.
The stock price instantly fell to 24.70 yuan, a drop of as much as 4.33%, when it finally received a large buy order. Four orders totaling nearly 8,000 lots quickly pushed up the stock price.
The stock price quickly rose from a low of 24.70 yuan to 25.31 yuan, an increase of 3%, while the decline narrowed to less than 1%.
“Forget it, let’s wait for the call auction before placing an order. It looks like the price will fall further.” The 8,000 lots just now were not a direct buy order, but were divided into four orders. It seems that the main fund does not want to push the stock price too high.
