Rebirth of the Capital Legend

“That’s true.” Song Shaopu nodded slightly and said, “After the positive news was released at noon, the current ‘new energy industry chain’ related sectors and concept sectors, as well as a number of industry leaders, have become the core themes and related stocks with the highest certainty in the market.”

Jia Yongxiang responded, "I have to say that the positive news about the 'new energy industry chain' at noon came at a really good time. If it weren't for the release of this positive news, the market trend in the afternoon wouldn't have been able to reverse the trend based solely on the monetary easing signal released by the central bank."

"I would say they complement each other," Song Shaopu said. "Without the central bank's signal of monetary easing, it would be difficult for the positive news from the 'new energy industry chain' alone to drive a violent rebound in the entire market. You can tell from the market's performance in the first few minutes after the market opened this afternoon."

At that time, a number of core leading stocks in the 'new energy industry chain' were included.

The stocks were almost entirely snapped up by large groups of major buyers, all hitting the daily limit.

However, the overall market trend at that time did not show a significant reversal. In fact, due to the sudden surge in buying funds from other main market sectors caused a decline in the performance of other main market sectors, the situation changed later... as market sentiment further fermented.

Supported by the positive news of the central bank's signal of monetary easing.

A large amount of off-market funds entered the market to buy on dips.

This is what supported the market's dramatic rebound, leading to a violent recovery in the overall market.

Looking back, neither of these two major positive factors at midday would have shaped today's market performance, and the resulting market sentiment would not have been as strong as it is now.

"Hmm." Jia Yongxiang nodded, then said, "President Song, shouldn't we make some adjustments to our position-holding strategy now?"

Song Shaopu asked with a smile, "How would you like to improve this?"

"Let's follow the market's actual direction," Jia Yongxiang said. "Since the market has chosen the 'new energy industry chain' route, and due to the release of favorable policies, the 'new energy industry chain' route has become the most certain main theme in the market. So, we can partially adjust our positions to continue going long on the 'new energy industry chain' route. However... the 'new energy industry chain' route is currently in the spotlight, and with the addition of the two major seats, 'Fuxing Road' and 'Huayi Capital,' they have been continuously scrambling to buy on the 'new energy industry chain' route today."

I estimate that as market sentiment continues to develop...

Many other investment groups, both inside and outside the market, will notice the opportunities in the current 'new energy industry chain'.

It seems quite difficult to find relatively cheap chips.

Fortunately, the subsidy policy for the 'new energy industry chain' announced today was rather sudden and probably not anticipated by the market, so there should be relatively few potential buyers in the market.

In other words, there are currently a lot of funds that want to increase their holdings and rush to buy up shares.

Actually, we all start from the same point.

So, from this perspective... the so-called relatively cheap chips aren't that important.

In fact, based on the expected fundamental shift, many leading stocks in the 'new energy industry chain' would still be cheap even if they rose by 20% or 30%, and the certainty would still be quite high.

“Well, what you said makes sense.” Song Shaopu nodded slightly and said, “If there’s an opportunity, let’s adjust our portfolio and buy. However, when sentiment is high, we don’t need to follow the trend of speculative funds in the market and rush to buy at the limit up price. In the current market… as long as sentiment fully recovers and market investment confidence rebounds.”

So, there are actually quite a few opportunities in other main storylines as well.

If we can't participate in the 'new energy industry chain' for the time being, we'll focus on opportunities in other main sectors first.

"Other main themes?" Jia Yongxiang asked. "Is Mr. Song referring to the 'major infrastructure' theme? I feel that in the current market, the 'major infrastructure' theme and the 'new energy industry chain' theme are the most reliable core themes with relatively strong certainty and market synergy."

“Yes, it’s the ‘major infrastructure’ theme,” Song Shaopu said. “Looking at the performance of ‘mainland property stocks’ in Hong Kong, it seems that the core stocks in the ‘major infrastructure’ sector in our A-share market are still quite cheap. With relatively certain expectations for the future, they still offer very good investment opportunities.”

“But our holdings in the ‘major infrastructure’ sector are already quite substantial,” Jia Yongxiang said. “Actually, the ‘consumer electronics’ sector is also a good one. What’s your opinion on this sector, Mr. Song?”

"Consumer electronics?" Song Shaopu was taken aback and said, "You mean the Apple supply chain?"

Jia Yongxiang nodded and replied, "Yes, it's the Apple supply chain. I feel that the future prospects for this line are actually very good, and there is a certain expectation gap. Because the sales growth of Apple's new products last year was not as expected, and the growth of domestic smartphone shipments has obviously stagnated, many domestic institutions have given relatively lower valuations to the core leading stocks in the Apple supply chain."

However, I think the smartphone market still has a lot of room for growth.

Furthermore, there is potential for further increases in industry concentration.

These domestic companies in Apple's supply chain, after manufacturing Apple products, are fully capable of integrating into the domestic mobile phone supply chain.

There is good potential for growth here, as well as a gap between expectations and reality.

Moreover, looking at some core stocks in Apple's supply chain, their valuations are indeed relatively undervalued, suggesting that there is potential for valuation recovery in this sector.

And then there's Apple's fall product launch event, which is just around the corner, in the second half of the month.

Regardless of how the final press conference goes.

Before the press conference, the market would certainly have very high expectations for it.

This expectation, coupled with the current market sentiment, the general recovery in investment confidence, and the strong market profit-making effect brought about by the surge in the 'new energy industry chain' theme, has created a favorable environment for investment.

I think the Apple supply chain will inevitably see a surge in activity in September and October.

It has embarked on a smooth upward trend.

Moreover, the total size of stocks in the Apple supply chain is much smaller than that of the "major infrastructure" sector, so it wouldn't be particularly difficult for major institutions to drive up the stock price if they wanted to focus on this sector.

Of course, the 'major infrastructure' route is also a good one.

However, at this point in time, I feel that the 'Apple supply chain' route seems to offer better value for money and is more likely to yield excess profits.

After listening to Jia Yongxiang's analysis, Song Shaopu pondered it carefully for a while and said, "Your logic is generally correct, but there is a problem. The 'smartphone industry chain' has already been hyped up by various funds in the market. Look at 'Lixun Precision,' 'Goertek,' 'O-Film Tech'... these core leading stocks are basically all at their daily limit today."

Given this price movement pattern, we can then increase our holdings and buy more shares.

I feel that it's basically the same in nature as the stocks that are being snapped up in the 'new energy industry chain' sector.

Clearly, the 'new energy industry chain' sector exhibits stronger certainty and attracts more speculative investment, resulting in higher market attention.

"So, according to President Song's meaning..." Jia Yongxiang asked.

Song Shaopu said, "Let's buy stocks with sufficient certainty first, stocks that are easy to buy in on the market, and stocks with more stable trends, such as Conch Cement, Gemdale Group, and China State Construction Engineering Corporation, which are in the 'major infrastructure' sector. These stocks may not be as volatile as the speculative stocks in the market, but their trend is stable enough. Look at Conch Cement. Basically, it has been steadily moving upward step by step all the way up. No matter how the market goes, the trend continues. Although the increase in one or two days or one or two weeks may seem small, if you extend the period to one or two months, six months, or one year, the increase will be considerable."

Compared to the overall market, Anhui Conch Cement's stock performance over the past six months has definitely placed it among the top twenty performers in the entire market.

"Understood." Jia Yongxiang nodded and said, "Then I will follow President Song's suggestion and focus on the 'major infrastructure' sector."

Song Shaopu nodded and turned his attention back to the various stock investment exchange platforms in the market.

At this moment, on various stock investment exchange platforms, countless retail investors are still discussing the issue, and the level of discussion is getting higher and higher.

"President Su is truly amazing. The core stocks that President Su bought heavily today have all made it into the top ten most popular stocks on both exchanges in just over an hour."

"Just watch, tomorrow, the stocks of 'Oriental Yuhong', 'Ganfeng Lithium', and 'Tianqi Lithium' will all hit their daily limit."

"It won't hit the daily limit up as soon as it opens, will it?"

"The market won't open tomorrow; it should be next Monday."

"Pretty much, they all mean the same thing. But for these stocks to all hit their daily limit up next Monday, we'll need the overseas markets to cooperate tonight, right?"

"The trend of external markets will inevitably follow suit; look how strong the US stock market is right now!"

"Yeah, compared to A-shares, US stocks are really strong, they've been rising for 10 years, right?"

"More than 10 years? Since the dot-com bubble burst in 01, the US stock market has been rising all the time, and it's still rising now. Who knows how long it will continue to rise?"

"Indeed, it's been over ten years, that's really impressive."

"Don't worry, our A-shares will have such a day too."

"I wonder when that will be? It feels like there's no hope for at least the next twenty years."

"Enough talk, let's set a new record first."

"A new high? You mean 6124 points? That seems pretty difficult. I'd be grateful if it could break 3500 points first, let alone hit 6000 points. I can't even imagine it."

"Yes, if this rebound can break through 3500 points, we'll be thankful."

"I think 3500 points shouldn't be a big problem. At least it should fill the gap left by the stock market crash at the beginning of the year, right? That's not too much to ask, is it?"

"With Mr. Su's 'Fuxing Road' and 'Huayi Capital' increasing their long positions on such a large scale, I feel there is definitely hope."

"Regardless of whether the index can recover to 3500 points, just follow Mr. Su's lead."

"That's right. As long as we follow Mr. Su's trading strategy, we can't go wrong. Next Monday, we will decisively increase our holdings in 'Oriental Yuhong', 'Ganfeng Lithium', and 'Tianqi Lithium'."

"Is it still worth buying 'Oriental Yuhong' stock? I feel like it's almost reached its peak."

"The dragon's head doesn't talk about the top, don't you know that?"

"It just broke a new high, how could it be almost at its peak? There should be at least room for it to double. If it reaches a scale of 100 billion, then it's more than double the potential."

"A scale of 1000 billion is probably too far away."

"Given the current heat in the real estate market, it doesn't seem like it's going to happen anytime soon!"

"As for the core leading stock, I think we should still look at 'Huaxin Cement'. Although 'Oriental Yuhong' has the support of Mr. Su's 'Fuxing Road' seat, 'Huaxin Cement' is clearly at a lower position and has stronger market momentum. As for 'Oriental Yuhong', today's trading data showed that apart from Mr. Su's 'Fuxing Road' seat making large-scale purchases, other speculative funds didn't really follow up."

"Today's trading data for 'Oriental Yuhong' shows that although speculative funds didn't really follow up, institutional investors did enter the market, and there were even one or two institutions increasing their long positions at new highs. What does that mean?"

"The institution that took over the 'Oriental Yuhong' check today is really hard to understand."

"It's okay if you don't understand. My idea is not to predict the peak, just follow it. If 'Oriental Yuhong' really peaks, there will definitely be clear signals. Right now... there's no need to rush."

"Agreed. Just hold your positions. Anyway, when the market peaks, President Su's 'Road to Rejuvenation' will definitely give a signal."

"That's right. With a big shot like President Su helping to lock in the shares, if you don't dare to buy these, why bother buying the leading stocks? Just buy bank stocks directly."

"Speaking of which, bank stocks have really performed quite well this year."

"Bank stocks have all risen above 5000 points on the Shanghai Composite Index, so of course they're not bad."

"However, bank stocks performed poorly today. I originally thought that bank stocks would surge today due to the positive effect of the central bank releasing liquidity, but I didn't expect them to barely move."

"After such a significant rise, it's reasonable for it to take a break now, right?"

That makes sense.

"I think the market opening next Monday will depend on the performance of the 'major infrastructure' sector and the 'new energy industry chain' sector. Only if these two main sectors perform well can the overall market be good. If these two sectors, which performed the best today, fail to show any sustained momentum, then it's best to take profits as soon as possible."

"The 'new energy industry chain' sector will definitely be fine next Monday. There's a high probability that many leading stocks in the sector will continue to open at their daily limit. As for the 'major infrastructure' sector, it's really hard to say. I feel that the 'major infrastructure' sector is a bit too high, and the previous adjustment period wasn't long enough. I feel there's some divergence in the market trend, and its sustainability is hard to predict!"

"Why do I feel that the 'major infrastructure' sector has a higher degree of certainty than the 'new energy industry chain' sector?"

"Yeah, I have to say, I feel the same way."

Amidst the heated discussions and analyses of the market outlook among countless investors, institutions, and speculative funds, a chorus of voices filled with opinions and insights from various sectors, the market is in a state of flux.

The market continues to move forward...

In the evening, sentiment both inside and outside the market intensified again, seemingly giving people a feeling of returning to a bull market.

Then, late at night, the peripheral markets opened for trading.

As a stock market that never disappoints, the US stock market once again opened higher and continued to rise amidst much attention, setting a new historical high and injecting even higher expectations and investment confidence into the domestic financial market next Monday. (End of this chapter)