Rebirth of the Capital Legend

Chapter 231 Short Selling Plan!

"The market's hot spots are changing faster and faster, and the continuous money-making effect is getting weaker and weaker."

In the last two trading days before New Year's Day, Xu Qiao, who was in the "Magic Capital Ultra-short Group" where Su Yi was, noticed that the market trend was always weak and couldn't help but sigh: "If it continues like this... I feel that the Shanghai Index will not be able to hold up at 3400 points. The main line of 'lithium battery', the main line of 'new energy industry chain', and the core main lines of 'big finance', 'big infrastructure', and 'big consumption' have all performed sluggishly recently."

"Recently, the market's continuous money-making effect has indeed been getting worse," said Lao Zhang. "There is no sustained short-term leader. Today's limit up, tomorrow's limit down... Under the influence of short-term sentiment, the highest loss effect is extremely strong, which is not a good phenomenon."

Old Wu responded: "To be precise, market sentiment has been deteriorating since the Su brothers liquidated their positions in the main line of 'lithium batteries' on a large scale."

"That's true." Xu Qiao pondered for a while and said, "It seems that Brother Su realized that the market trend is not going to be very good at the end of the month. At the same time, the main line of 'lithium batteries' has fully fulfilled the medium- and short-term expectations through the previous continuous surge, so he liquidated a large number of positions and left the market."

Old Wu said, "That should be the case. I have to admire Brother Su for his accurate timing of entry and exit."

“But I guess there’s no risk of the index continuing to fall sharply,” Lao Zhang said.

Brother Chen stared at the trend of the two markets, pondered for a moment, and said, "It's hard to say. Although the Shanghai Composite Index has retreated from around 3600 points to 3400 points during this period, and this position is the lower edge support position of the shock platform that broke through the previous upward attack, the market's money-making effect is getting worse and worse, and the volume is getting lower and lower. Once the chips accumulated and deposited above in the previous two rounds of stock market crashes loosen as a whole, the current market volume performance will definitely not be able to bear it, so...if this continues, I think the risk of a continued plunge still exists."

"Regardless of whether the market index continues to plummet," Xu Qiao said, "before Brother Su re-enters the market to go long, and before the market volume continues to be sluggish, it is still necessary to maintain a light position and always guard against the risk of a market crash. At this time... you don't need to pursue a high short-term rate of return, but to control the drawdown."

Lao Zhang smiled and said, "Anyway, I only have 2% of my positions left. Let's wait for the short-term market environment to improve."

"It feels like the entire real estate sector has lost the momentum to continue to explode after the suspension of Kewan Real Estate," said Old Wu. "Looking at the entire market, only the liquor sector is worth watching. The fundamentals of the liquor sector should have reversed, right?"

Brother Chen replied: "Looking at the performance of first-tier liquor brands such as Qianzhou Moutai, Wuliangye, and Luzhou Laojiao in the past six months, the fundamentals of the industry have indeed improved significantly, but it is still too early to say that there will be a reversal. We can continue to observe. The market is weak, so there is no rush to build a position."

"The 'consumption' sector is the direction of institutional trading." Xu Qiao said, "Compared with the 'white wine' sector, I still prefer the 'new energy industry chain' line. If we talk about the future market prosperity and the explosive strength of market demand, it should be said that the 'new energy industry chain' is the main line of certainty, right?"

Old Wu said: "With sufficient policy support and the actual market demand, the future prosperity of the 'new energy industry chain' should be highly certain. The only bad thing about this core line is that after a quarter of continuous surge, the optimistic expectations for the future have been fully fulfilled. There is not much 'expectation gap' worth gambling on!"

"That's right." Lao Zhang said, "Open cards are the most difficult to play."

"However, the core stocks related to the 'new energy industry chain' have generally fallen back by 20 to 30 percent." Xu Qiao said, "At this point, the profit and loss ratio is still relatively high, right?"

Old Wu said, "Anyway, I think we can wait a little longer to see how the 'Hua Yi Expedition No. 1' fund managed by Brother Su will build its position and in which direction it will intervene."

"Yes, I think so too." Brother Chen said, "Let's see how Brother Su will build his position next."

"I think Brother Su's position-building strategy is definitely inseparable from the core theme of 'new energy industry chain'." Xu Qiao said, "After all, looking at the entire market, this line has the highest future certainty."

"In fact, the 'consumer electronics' line is not bad either," said Lao Zhang.

"Consumer electronics?" Xu Qiao pondered for a moment and said, "Although the domestic smartphone market has not yet reached saturation, the explosive growth will not be as strong as in the past two years. There is an expectation that stocks in the 'consumer electronics' field will continue to grow in the future, but it is unlikely to achieve the kind of multiple or even ten-fold growth that they did in the past two years, or even in the past few years, right?"

"The imagination space is indeed limited." Old Wu said, "but the certainty is high. And looking at the recent stock price trends of the 'consumer electronics' related sectors and related core stocks, the continued attention of funds is still very high."

"We'll see after New Year's Day." Brother Chen said, "In the last two trading days before the New Year, the market trend will continue in the direction of the main line and there should be no changes."

"Well, let's see after New Year's Day." Old Wu responded and agreed.

At a time when all the major speculators in the group were reducing their positions and were quite pessimistic about the market trends.

Magic City, inside Nuoan Capital Company.

In the trading department of 'New Energy Industry Growth Hybrid Fund Product', fund manager Yang Shengfan was staring at the market trend of continuous adjustment and shrinking volume. He saw that the core stocks of the 'new energy industry chain' had generally pulled back by 20 to 30 percent, especially the leading stocks of the core 'lithium battery' sector. He couldn't help but think of increasing holdings of this main line chips on a large scale at this time.

"Xiao Bao, what do you think of Huayi Expedition 1, the most popular fund product recently..." Yang Shengfan asked Bao Yongquan, the fund trading team leader, "Based on the previous trading methods of Mr. Su from Huayi Capital, from which market direction will they build positions?"

Bao Yongquan thought for a moment and said, "The current market fundamentals are good, and the main market lines with high expectations should be the 'real estate-related industrial chain' and the 'new energy industrial chain', right? I feel that if this fund product wants to make main line investments, it will definitely not be able to avoid these two main areas."

"Yeah, I think so too." Yang Shengfan smiled and said.

"Manager, what you mean is..." Bao Yongquan was obviously stunned for a moment, and then he realized what Yang Shengfan meant, "You want to continue to increase your holdings in the main field of 'new energy industry chain', seize the relevant core high-quality stock chips, and wait for the subsequent 'Huayi Expedition No. 1' fund product to enter the market to help us?"

Yang Shengfan nodded and said, "That's what I mean. Of course, if we exclude the fact that Huayi Expedition 1 chose to enter the market through the main line of the new energy industry chain, from the perspective of market performance and trading alone... I think this position is also suitable for increasing positions and going long."

"Why don't we wait a little longer?" Bao Yongquan said, "At the end of the year, major institutions in the industry adjust their positions frequently, and their strategies change greatly. The market fluctuations will be relatively more drastic. If we wait a little longer, we may be able to pick up cheaper high-quality chips."

Yang Shengfan thought for a moment and said, "As long as the expectation of a reversal in the industry's fundamentals is certain, the expansion of market demand is certain, and the price increase trend of major upstream core products is certain, then timing is not so important. This position is still a good buying point for us."

"Okay." Bao Yongquan nodded.

He then turned around and issued relevant trading instructions to the traders to increase their positions.

In fact, during this period of time...

Even though the market trend of the main line of 'new energy industry chain' is relatively sluggish, and the relevant core stocks have experienced a large retracement after the large-scale liquidation and exit of 'Financial Street Fortune Road', looking at the entire investment market, the issuance of relevant fund products for 'new energy industry investment' is still increasing.

At the same time, the number of investors subscribing to this type of fund products is also increasing.

As for the fund product they manage, even though the net value performance has been declining recently, the fund size has soared by nearly 20%. This shows that many investors in the OTC market are interested in this emerging sunrise industry.

Its awareness and recognition are increasing.

With the introduction of so many new industry investment fund products, more and more OTC investor groups are also involved.

Although Bao Yongquan believes that it is not the right time to increase holdings of core stocks in the "new energy industry chain", he does not deny that this core line will continue to rise in the future market, and relatively speaking, he also agrees with the personal views of fund manager Yang Shengfan.

As market hours go by…

Amid discussions among numerous investors, hot money, and institutional managers.

There are many investors who have the same idea as the main hot money of the 'Magic City Ultra-Short Gang' and the product managers of the 'New Energy Industry Growth Mixed Fund'.

Of course, it doesn’t matter whether you are bearish or bullish.

At this time, Su Yi remained calm and waited for the arrival of New Year's Day. He still did not make any fund building instructions.

However, when he received the news from Lei Kaishan.

The other party stated that they would expose the negative information about Qin Song, chairman of the Jingcheng Holdings Group, at the beginning of the new year, on New Year's Day.

Su Yi's heart moved.

Quickly before New Year's Day, 10 billion yuan was transferred into his account through the Hong Kong stock trading account opened at "Huaxin Securities" not long ago.

And sold a lot of "Jingcheng Holdings" Hong Kong stocks through naked short selling.

Under his naked short selling.

Thursday, December 12, is the last trading day before New Year's Day.

Amid the overall surge in the real estate sector of Hong Kong stocks, the share price of Jingcheng Holdings suddenly continued to fall by more than 5%, and the number of short-selling orders on the market increased rapidly.

"Hey... who is shorting the stock of 'Jingcheng Holdings'?"

While Su Yi was selling short on a large scale, far away in Hong Kong, an investment company called "Hongyuan Capital" also had its eyes on this stock and held a large number of shares. They were firmly optimistic about the subsequent market trend of this stock and believed that with the fundamentals of the real estate industry reversing, "Jingcheng Holdings" would have a rich return on investment with the expectation of listing on the A-share market and the expectation of scale expansion. The trader Shi Jindong instantly noticed the unusual movement on the market.

"What's the matter?" Hearing Shi Jindong's voice, investment manager Zhang Yanjun asked hurriedly.

Shi Jindong continued to glance at the trend of Jingcheng Holdings and said, "It fell against the trend, the selling was overwhelming, and the volume increased instantly... The trend of Jingcheng Holdings is obviously abnormal."

When Zhang Yanjun heard this, he quickly switched the phone interface to the market trend of Jingcheng Holdings. Seeing that it was still continuing to decline in volume, his expression became obviously solemn: "In 10 minutes, the selling volume has reached 2000 million. This... is indeed a bit abnormal."

"Is there any clear negative news?" Shi Jindong pondered.

Zhang Yanjun pondered for a moment and said, "Although the stock price has fallen rapidly, the volume of purchases is also very large. It should not be caused by bad news. Let's wait and see... According to our research data, in the past two months, housing prices in major core cities in the mainland have generally risen sharply. The core investment logic of real estate is fine, and the 'Jingcheng Holdings' check has the potential positive stimulus of listing on the A-share market, and it owns several high-quality development projects in Shanghai. This valuation and market value are obviously low, and there is a strong fundamental logic to support it. So no matter who is selling, we don't need to be too nervous."

"Okay!" Shi Jindong nodded and was about to breathe a sigh of relief.

But when he looked back at the stock price trend of 'Jingcheng Holdings', he saw that after its stock price had fallen 5 points against the trend, not only was there no sign of stopping the decline, but it continued to plummet in volume, with the decline reaching more than 10% in an instant.

This made him, who was just about to relax, instantly become extremely nervous again.

When the share price of Jingcheng Holdings suddenly plummeted for no apparent reason, it was not only Hongyuan Capital, which held a large number of shares, that was nervous.

Others hold a large number of shares in this stock.

As for the head of the securities department of Jingcheng Holdings Group, who was monitoring unusual movements of the company's stocks within the Jingcheng Holdings Group, his face became nervous. He hurriedly reported the relevant changes to his direct supervisor, who then quickly heard the news of the incident to Chairman Qin Song.

Qin Song looked at the obviously abnormal trend of his group's stock and pondered for a long time.

I just started using my connections to inquire about relevant information.

Then, half an hour later, when the Hong Kong stock market had closed and the share price of Jingcheng Holdings had plummeted by about 13% during the day, he learned that his own stock had been shorted. He knew that the source of the short-selling institution was a domestic institution, but he was not sure who it was.

When he realized this...

Almost subconsciously, he realized that he might be targeted by his competitors.

But he still didn't know who this competitor was and what he wanted to do.

However, as a veteran in the business world and the helmsman of the Jingcheng Holdings Group, he thought it was relatively easy to come up with some favorable news to stabilize the stock price. So even though he realized that someone was attacking the company's stock, he did not pay enough attention to it, nor did he think about further investigating the source of the crisis.

And this... led to the subsequent course of events, which, for a moment, was completely beyond his control.

(End of this chapter)