Rebirth of the Capital Legend

"Then follow your idea and gradually take profits and exit." Su Yi said after listening to Hou Baolong's words, "In the financial market, stock prices always react to expectations. Since the previous expectations have been fully fulfilled in the continuous rise in stock prices in the past six months, and there is a strong expectation of a subsequent decline, it is time to take profits."

According to the memory in Su Yi's mind.

He knew that this was not the time for a full-scale explosion of "new energy vehicles".

Due to the limitations of lithium battery technology, current new energy vehicles are not yet competitive enough in the traditional energy vehicle market.

In other words, the entire new energy vehicle market cannot be opened up relying solely on self-competition in the market.

Over the past year...

All new energy vehicle manufacturers and corresponding industry chain companies survive almost entirely on the country's subsidy policies.

Once the subsidy policy declines, or the subsidy plan review system becomes stricter, then in the context of free competition with traditional energy vehicles, the demand in the entire new energy industry chain will naturally shrink temporarily, the corresponding production capacity will be reduced, and the performance of the corresponding industry chain companies will also decline.

Of course, the temporary dilemma cannot change this technological route, which is the result of the general development trend of the automotive industry in the future.

It is only in the face of foreseeable and impending industry difficulties.

As asset management and investment institutions, there is really no need for them to continue to hold on and experience subsequent industry difficulties like many companies in the industry when they have already made substantial profits.

Before expectations changed, the industry was still at its peak with strong support from national policies.

It is truly wise to decisively stop profit and reap profits in time.

The so-called "value investment" in the financial market does not mean that you don't need to choose the timing, but that you have to invest in the right stocks at the right time.

Only in this way can you seize the market's excess returns and become an outstanding investor.

"The current market value of our holdings in the 'new energy industry chain' accounts for about 1% of the overall market value of our 'Hua Yi Yuan Zheng No. 15' fund product." Hou Baolong paused and continued, "If we stop profit on this main line, I want to transfer all of this 15% of the position space to the Hong Kong stock market. I wonder if Mr. Su has any suggestions on this?"

"We will invest wherever there are opportunities," Su Yi said. "We don't have to stick to one market or one industry. We are not a public fund company, nor an industrial investment fund. We should be flexible and constantly seek relatively certain investment opportunities with large expectation gaps in the market. I think there is nothing wrong with your idea. Since the current opportunities in the Hong Kong stock market are obviously greater than those in the A-share market, we should appropriately transfer funds to the Hong Kong stock market for investment. Our ultimate goal is to increase the growth of the fund's net value and help our company and the fund investors who trust us make money. Under this premise... any strategy that is beneficial to this condition is correct in my opinion."

Through the discussion just now, and the two people’s analysis of some targets for subsequent investment strategies.

Su Yi still has complete confidence in the abilities of Hou Baolong and Wang Yifan.

At least if he is not a reborn person and has not experienced the development of the financial market in later generations, then, standing at this point in time.

When it comes to grasping and choosing investment opportunities in many thematic sectors, I am probably not as good as these two.

Moreover, he also knew... to carry out the investment strategy formulated by the two.

For the 'Hua Yi Expedition No. 1' fund product, it is indeed beneficial to obtain better net value returns in the following six months.

And the subsequent market development.

The three main investment sectors that the two people were optimistic about, namely "commercial real estate development", "coal" and "security lenses", and their corresponding industry-leading stocks, have indeed experienced a sustained bull market independent of the market.

Among them, according to his memory.

Stocks such as Hengda Real Estate, Rongchuang Real Estate, Longhu Real Estate, Jincheng Coal Industry, Dahua Shares, and Hikvision have seen a tenfold increase in two years.

After the three of them discussed the final investment strategy.

On Thursday, July 7, the trading department of the fund product "Huayi Expedition No. 28" began to adjust its portfolio.

Under the leadership of Hou Baolong, when the market opened, various groups of traders continued to reduce their holdings and sell related stocks of the "new energy industry chain".

However, the holdings of the fund product "Hua Yi Expedition No. 1" are relatively large.

In addition, during a bear market, market liquidity is relatively limited.

Although traders did not sell stocks in a relatively aggressive manner during their operations, they still had a significant impact on the weak market.

After a day's trading.

Due to the continued selling of the main fund product 'Huayi Expedition No. 1'.

When the two markets closed, the main line of the 'new energy industry chain', which had been performing relatively strongly, including new energy vehicles, lithium batteries, charging piles and other related sectors, all showed a sharp decline, and the 'Huayi Expedition 1' fund holding concept stocks with smaller market capitalizations, such as Tianci Materials, Yinghe Technology, Dangsheng Technology, etc., even showed a limit-down trend.

"What's going on? There's no bad news in the market today." After the market closed, the entire 'new energy industry chain' main sector and its core concept stocks all showed a sharp decline. At the same time, the three major indexes of Shanghai Composite Index, Shenzhen Composite Index and ChiNext Index, as well as the main stocks where funds were concentrated in the two cities, mostly closed in the red. In Shanghai, inside Nuoan Fund Company, which is also an investment institution for the 'new energy industry growth hybrid fund product', fund product manager Yang Shengfan was obviously a little confused, "This trend of falling against the trend is a bit wrong!"

"Is it because of the negative news in the market that the subsidy policy for 'new energy vehicles' may change next year, which has led to changes in the market's expectations for investment in the main direction of the 'new energy industry chain'..." said Bao Yongquan, the head of the trading team. "And this has led to the stocks related to the 'new energy industry chain' going down against the trend today?"

"Hasn't it been confirmed that the rumor about the subsidy policy decline is just a rumor?" Yang Shengfan frowned, pondered for a moment, and guessed, "It shouldn't be this problem that caused the big drop. After all, this news has been circulating for many days. If the market was going to react, it would have reacted long ago."

"What could be the reason?" Bao Yongquan thought carefully for a while and said, "Could it be that a fund with a large position in this main line field has taken profits or was forced to stop losses and liquidate?"

"The reason you mentioned is entirely possible." Yang Shengfan responded, "Today, several stocks in the main direction of the 'new energy industry chain' have hit the daily limit. If the sharp drop in this main direction today is due to the selling of related funds, then the market can observe some traces through the Dragon and Tiger List data of these stocks that hit the daily limit." (End of this chapter)