Rebirth of the Capital Legend

"Holy crap, is today's Dragon and Tiger Rankings really that explosive?"

Seeing the long-absent "Fuxing Road" trading seat suddenly reappear on many popular stocks in the market, and continuing to make large-scale purchases, caused a stir on major stock investment exchange platforms across the internet, as well as in various internal groups where institutions and speculative funds gather.

"Unexpected, unexpected... On the 'Oriental Yuhong' stock, 'Fuxing Road' not only didn't sell, but actually continued to increase its holdings on a large scale."

"Indeed, 'Fuxing Road' is really amazing. How could they increase their holdings so decisively?"

"Does it seem like 'Fuxing Road' has already made a takeover bid for 'Oriental Yuhong'? It should have reached around 5% of its holdings, right?"

"It shouldn't be. If it had already reached the 5% threshold for disclosure, the parent company of 'Oriental Yuhong' should have issued an announcement long ago. The fact that there's no announcement means that 'Fuxing Road's' overall holdings in this stock haven't reached the 5% threshold yet. But even if it hasn't reached the 5% threshold, it's probably very close. I don't know why 'Fuxing Road' is so optimistic about this stock."

"With excellent fundamentals and strong expectations for explosive earnings growth, there's no reason not to be optimistic. I've said it before... 'Oriental Yuhong' is definitely a future giant stock with a market capitalization of hundreds of billions. We may have doubts about other aspects of 'Fuxing Road,' but 'Fuxing Road's' stock selection, especially the stocks it heavily invests in, is generally correct, and they are likely to experience a continuous surge in the market."

"If we calculate based on a final value of hundreds of billions, 'Oriental Yuhong' still has almost three times the upside potential!"

"I think there is definitely not much risk before this check reaches a scale of hundreds of billions."

"It seems that 'Fuxing Road' saw a large increase in holdings today, and 'Ganfeng Lithium' and 'Tianqi Lithium,' which have made a comeback, are also two potential leading stocks with a market capitalization of hundreds of billions, right? Can the development of the 'new energy industry chain' and the development of new energy vehicles be separated from lithium batteries and lithium resources?"

"That can't be right, can it? Right now, there's only one technological development path: 'lithium batteries'?"

"There's more than one; there's also the 'hydrogen energy' technology route, which is the 'fuel cell' technology route. However, the 'fuel cell' technology route is currently still in the laboratory stage and is far less mature than the 'lithium battery' technology route."

"Fuel cells? That doesn't seem very reliable at all."

"Isn't that a bit much? Maybe it can actually be made in the future? In my opinion, isn't hydrogen energy the cleanest energy source? I feel that 'lithium battery' technology is more like a transition."

"You're kidding, 'hydrogen' isn't safe!"

"Yes, compared to lithium, hydrogen is really unsafe."

"So, the technical approach still needs improvement, but theoretically speaking, the 'fuel cell' technical approach is still feasible!"

"I still favor 'lithium,' 'hydrogen energy' is just too vague and unrealistic."

"No matter which route you take, the whole vehicle manufacturing line can't be wrong, right? No matter which technology route matures, won't it eventually be implemented in car manufacturing plants? So... just hold onto the stocks in the end-user sector, right? As long as the entire new energy vehicle sector continues to perform well, the 'whole vehicle manufacturing' sector will definitely rise!"

"The automotive sector consists of large, heavyweight companies that don't offer much in terms of value for money!"

"How is it possible to have both certainty and flexibility?"

"In fact, certainty and flexibility can be balanced to a certain extent. At the current stage, the technological route of new energy will inevitably develop towards 'lithium batteries'. Since the 'lithium battery' technology route will inevitably be developed first, Ganfeng Lithium and Tianqi Lithium, which have the best upstream mineral resources, are excellent targets. I think that Fuxing Road's large-scale increase in holdings of these two stocks clearly reflects this thinking."

"Since the certainty is so strong, why did the 'Fuxing Road' fund, and the related 'Huayi Capital' institution, massively reduce their holdings in Ganfeng Lithium and Tianqi Lithium? This logic doesn't make sense, does it?"

"Isn't this logic quite sound? The previous sharp correction in the 'new energy industry chain' theme, besides the exit of 'Fuxing Road' and 'Huayi Capital' institutions, was mainly due to market rumors that subsidies for the entire industry would be phased out next year, and the government would reduce investment in related industry chains. If subsidies are indeed reduced next year, and government-led investment in the new energy industry is reduced, then the new energy industry chain will continue to weaken, depressing valuations. At the same time, 'Fuxing Road' and 'Huayi Capital' institutions will massively reduce their positions to lock in profits and avoid the risk of a market correction due to compressed valuations. Doesn't that make perfect sense? Isn't this normal trading logic?"

"As for the two major positive developments released in the market today, and the subsequent return of 'Fuxing Road' and 'Huayi Capital,' isn't it because these two major positive developments directly impacted the fundamentals of the entire 'new energy industry chain'? And didn't they influence the expectations of investment institutions and retail investors regarding the future market trend? Since expectations and fundamentals have changed under the influence of these two major positive developments, isn't it normal trading logic for 'Fuxing Road' and 'Huayi Capital' to take the opportunity to buy back shares? There's nothing to discuss or debate about here!"

“That makes sense. In fact, based on the usual operations of 'Fuxing Road' and 'Huayi Capital', they can usually make a profit by buying in the same stock the next day. Judging from their past buying behavior, they have almost never failed.”

"I think the specific stocks and amounts purchased by the two related seats, 'Fuxing Road' and 'Huayi Capital,' are secondary. The key is the enormous impact of this purchase on the market."

"Yes, both 'Fuxing Road' and 'Huayi Capital' have increased their holdings significantly, which likely means that today's sharp V-shaped rebound in the market is the bottom of the recent market correction."

"This also indicates that the core themes in the subsequent market development will most likely be the 'major infrastructure' theme and the 'new energy industry chain' theme."

"Yes, that's true. In fact, these two lines were the strongest in the market this afternoon!"

"It seems that President Su completely looks down on the film and television media, internet software, and internet applications sectors, and hasn't increased his holdings in these areas even a little bit."

"To be honest, I also think that the film and television media, internet software, and internet applications sectors can't become the core theme of the market. After all, the fundamentals of these sectors are indeed not optimistic, and they can't compare with the 'major infrastructure' theme or the 'new energy industry chain' theme that is directly stimulated by major positive factors."

"However, the fundamentals are quite poor, but the market's speculative expectations are still very strong." "That's true, after all, the two stocks that went from limit down to limit up today both came from the 'film and television media' sector."

"Actually, among these major sectors, there is another hidden line, namely the 'Internet finance' sector. This sector seems to have fundamental support and is also a sub-sector that can attract a lot of short-term funds to speculate aggressively."

"Is the 'Internet finance' sector not going to work out? Actually, apart from the banking sector, other financial sectors are not doing too well. After all, the stock market is no longer in a bull market. In a bear market, any market sector that is strongly correlated with the stock market will basically have a hard time making a comeback."

"Don't even consider the 'Internet finance' sector; it's not worth it."

"The safest approach is to directly buy the stocks that Mr. Su has significantly increased his holdings in. I feel that 'Oriental Yuhong' will hit a new high tomorrow and continue to rise sharply."

"That's beyond doubt. After all, with President Su continuing to increase his holdings on a large scale, the influence... it's hard for 'Oriental Yuhong' not to rise tomorrow!"

"Indeed, Mr. Su has a strong market influence. The three stocks that Mr. Su has been heavily investing in on the stock exchange, namely 'Oriental Yuhong,' 'Ganfeng Lithium,' and 'Tianqi Lithium,' have all soared into the top five of the most popular stocks on the market."

"What are the two remaining stocks?"

“Naturally, it’s the two stocks, ‘Huaxin Cement’ and ‘Huawen Online’.”

"Yes, these are the five stocks that are currently ranked in the top five of the market's most popular stocks. Based on preliminary analysis... I think these five stocks will perform well tomorrow and will most likely continue to hit the daily limit."

"Huaxin Cement and Huawen Online will most likely hit their daily limit, but the three stocks that Mr. Su bought on Fuxing Road, whether it's Oriental Yuhong or the two lithium giants, Ganfeng Lithium and Tianqi Lithium, have a large circulating market capitalization. It seems difficult for them to hit their daily limit, right? Moreover, these three stocks have already risen quite a bit today, which means that some of the expectations have been overdrawn."

"Can this still be called overdrawing expectations? No one could have imagined that President Su's related seats would make such a large-scale increase in holdings in these three stocks!"

"It's hard to say, but I still have more confidence in 'Chinese Online'."

"For 'Huawen Online' to make a breakthrough, it must hit the daily limit tomorrow, right? Only a quick limit-up and consistent performance can alleviate the profit-taking pressure on the market. After all, there were quite a few profit-taking positions in this stock yesterday."

"It definitely has to hit the daily limit. If it can't break a new high, the upward trend will quickly come to an end."

"Relatively speaking, the stock 'Oriental Yuhong' is indeed safer and more certain. After all, the stock 'Oriental Yuhong' has hit a new high today, releasing all the previous pressure and re-consolidating the shareholding structure. What's more, there's the stimulus of 'Fuxing Road' continuing to increase its holdings today."

“The stock 'Oriental Yuhong' represents the ‘major infrastructure’ sector, while 'Ganfeng Lithium' and 'Tianqi Lithium' represent the ‘new energy industry chain’ sector. I think that as long as we focus on these two sectors, we can’t go wrong. As for the other sectors, we’ll have to see how the market performs tomorrow.”

"Yes, that makes sense. I also think that following this line when making a chart is the safest approach."

"What I'm worried about is that, given President Su's enormous market influence, tomorrow there won't be any opportunity to buy the three stocks: 'Oriental Yuhong,' 'Ganfeng Lithium,' and 'Tianqi Lithium'!"

"No way, with such a large market capitalization and circulating shares, it's impossible for these three stocks to hit the daily limit immediately upon opening."

"Not necessarily. 'Oriental Yuhong' will most likely not open at the daily limit, but in the 'new energy industry chain' sector, even without the large-scale increase in holdings by Mr. Su's two related seats, 'Fuxing Road' and 'Huayi Capital,' these two stocks are already the core leaders in this sector. This afternoon, these two stocks were already heavily bought up, and they were considered the core leaders of this 'new energy industry chain' theme. In other words, even without Mr. Su's large-scale increase in holdings, I feel that these two core leaders will most likely open at the daily limit tomorrow, thanks to the buying pressure from other major institutional funds and other follow-up stocks in the market. After all, the policy benefits for the 'new energy industry chain' theme this time are huge, completely benefiting these two stocks!"

"It's highly unlikely. I feel that after the market opens tomorrow, the 'new energy industry chain' sector will definitely see a large-scale increase in trading volume."

"Stocks on the periphery will definitely see increased trading volume, but the core leading stocks are unlikely to see increased trading volume!"

"It's okay. Just buy when there's a chance of volume and divergence. If there's no chance, either wait or switch to other sectors."

"Let's see how the 'Film and Television Media,' 'Internet Software,' and 'Internet Applications' sectors perform tomorrow. I think the main and secondary themes that performed strongly this afternoon will definitely diverge tomorrow. Only those that continue to strengthen can be considered the core themes and leading stocks. If there is a huge divergence in the market tomorrow, you can basically give up on them. After all, with such good market sentiment, if you're going to buy, you should definitely try to buy the leading stocks to bring in excess returns from the market."

"Yes, I think so too..."

"But regardless, the continued increase in long positions by the two related seats, 'Fuxing Road' and 'Huayi Capital,' is ultimately a positive for the market as a whole."

Amidst the heated discussions among the vast retail investor community in the market…

At this moment, the internal groups of many active speculative investors in the market were also in an uproar.

Among them, Zhao Zhiyuan, a major speculative investor group from Shandong province, who bought back a large amount of his positions during the day, but whose main holdings were still concentrated in the core leading stocks of the film and television media, internet software, and internet applications sectors, was surprised to see today's explosive trading data. He frowned and said, "Are the related seats 'Fuxing Road' and 'Huayi Capital' trying to attract most of the active capital flow in the market, as well as many scattered institutional funds, to the 'major infrastructure' main theme and the 'new energy industry chain' sub-theme with such a large-scale increase in holdings?" (End of this chapter)