Rebirth of the Capital Legend

"The 'new energy industry chain' sector, judging from the opening situation of the initial call auction, is indeed the strongest core sector in the market. However, it doesn't seem like it's easy to participate in this sector today," Xu Qiao thought for a moment and said. "All the core leading stocks in this sector hit the daily limit up right at the opening, making it impossible to buy in. Even if you could buy in, there's no expectation today, so it doesn't seem like there's much point in participating."

However, regarding the 'major infrastructure' sector, there still seems to be considerable disagreement throughout the day.

If the market falls and divergence widens after the official opening, buying some shares at a lower price would offer a good gamble.

"Indeed, the 'new energy industry chain' sector is showing strong momentum, but it's not easy to participate in today," Lao Zhang said. "In this sector, core leading stocks like 'Shuguang Shares,' 'Power Source,' 'Tianci Materials,' 'Ganfeng Lithium,' and 'Tianqi Lithium' are basically locked at their daily limit with large buy orders, making it impossible to participate. As for other related concept stocks... even if there are disagreements, it doesn't feel worthwhile to participate with such high opening prices; the cost-effectiveness of the gamble is clearly not high."

"What do you all think of the stock 'Huawen Online'?" Old Wu pondered for a moment and said, "I feel that although the initial opening auction trends of the film and television media, internet software, and internet applications sectors are weak, they are not without opportunities. After 'Huawen Online' surpasses its previous high, it will continue to rise smoothly without any pressure."

"Let's see how the market reacts after the opening," Chen replied. "If the market reacts strongly, the gamble is indeed very worthwhile. Even though the film and television media, internet software, and internet application sectors are under great pressure to rise today, there is money driving up the price of 'Huawen Online.' If it can break out and hit the daily limit, then the probability of this stock having a second wave is still very high."

"Where is the check from Oriental Yuhong?" Xu Qiao asked.

"This stock has also hit a new high. Relatively speaking, I think 'Oriental Yuhong' is a safer bet for follow-up buying than 'Huaxin Cement,' right?" Old Zhang said. However, 'Beijiang Jiaojian' is also worth noting. It seems that its upside potential and short-term investor confidence are quite high. Judging from the initial opening auction, apart from the popular core stocks and leading stocks in the 'new energy industry chain' sector, this stock performed the strongest in the initial opening auction among other main sectors."

“‘Beijiang Jiaojian’ is a good stock,” Lao Wu said. “But it was locked at the daily limit by large orders during the initial auction, so it feels like I can’t participate. If the stock breaks down and gives me an opportunity later… the certainty won’t be so strong, so I have to be careful.”

"So, replenishing the quantity after a plate bursts is also an option, right?" Old Zhang said.

“A stock that crashes after hitting the daily limit is not as simple as just adding more volume,” Lao Wu responded. “The current market enthusiasm for ‘Beijiang Jiaojian’ is not very high. If it really crashes, it will be very difficult for it to recover.”

“I think ‘Beijiang Jiaojian’ is indeed worth paying attention to,” Brother Chen said. “Yesterday, this stock was the only one in the entire market that was locked at the daily limit up. Although the market was not very hot, the circulating shares of this stock are not large, so it can hold up.”

Moreover, the turnover rate of this stock was not low yesterday, and its trading volume was already quite high.

With market sentiment further improving and investor confidence rebounding, the current situation is quite positive.

There is no reason for the large group of investors who bought into this stock yesterday to take profits and exit the market on such a large scale with such small profits.

And today, the sentiment surrounding the 'major infrastructure' sector is generally positive.

The opening price movements of the two core stocks, 'Huaxin Cement' and 'Oriental Yuhong', were largely in line with expectations during the initial call auction.

I feel that if there's an opportunity to buy this stock today.

It's still worthwhile to boldly take over and participate.

Of course, I think the best scenario for this stock today would be if it opened slightly higher, or rather, if it entered the actual pre-market auction phase, creating a sufficient turnover at the open, and then large orders locked it at the daily limit up. That would be a more perfect scenario.

As for the check for 'Oriental Yuhong'...

Although there are some disagreements in the market, with Mr. Su's "Fuxing Road" seat providing guidance and emotional support, and given that this stock has already freed up all the previously trapped positions, the probability of an opening pullback and widening of disagreements is not high. If the opening price is not particularly high, it still feels worthwhile to participate.

Among the three core leading stocks in the entire "major infrastructure" theme.

The investment value of 'Huaxin Cement' is relatively low.

Firstly, this stock has a large circulating share capital and market capitalization. After two consecutive limit-up days, the profit-taking desire of those in the market is strong. Secondly, with the presence of stocks like "Oriental Yuhong" and "Beijiang Jiaojian" diverting attention and funds, the combined strength of "Huaxin Cement" will not be as strong as it was last week.

Another issue is that the expectations of the vast majority of retail investors in the market are too uniform regarding this stock.

This means there won't be many active speculative funds willing to continue driving up the price for retail investors at this level.

“Brother Chen makes a good point.” Old Zhang nodded and said, “In terms of priority, the core leading stocks related to the ‘new energy industry chain’ are definitely the highest, followed by the leading stocks in the ‘major infrastructure’ sector. Next, stocks like ‘Huawen Online’ with high market recognition and good upward trend are other leading stocks in other main themes. If the core leading stocks in the ‘new energy industry chain’ don’t offer opportunities, then it’s definitely better to gamble on ‘Oriental Yuhong’ and ‘Beijiang Jiaojian’.”

“‘Beijiang Jiaojian’ probably won’t give us a chance, right?” Xu Qiao said.

Chen responded, "Not necessarily. We can wait until 9:20 to see. Currently, the market interest in this stock is not particularly high. If there are order cancellations, many retail investors holding positions will definitely be affected, thus increasing their desire to sell."

Also, the market as a whole didn't open too badly today.

However, this is in contrast to the high market sentiment before the market opened.

Most retail investors felt that the results were somewhat below expectations.

Since the market trend is somewhat below expectations, it is very likely to intensify the selling pressure from profit-taking during the pre-market auction or at the beginning of the trading day.

So, all things considered, it's not entirely without a chance.

Amidst the heated discussion among several core members of the "Shanghai Short-Term Trading Group" group.

Soon, it was 9:20 a.m., the start of market trading.

After a large number of fake orders were cancelled, the market trends in the two markets were now significantly more divergent than at 9:15 AM.

Among them, the trend of the 'new energy industry chain' is stronger than it was at 9:15.

The "major infrastructure" theme also performed slightly better than at 9:15.

The performance of the film and television media, internet software, and internet application sectors, as well as the related concept and industry sectors of the "smartphone industry chain," was significantly weaker than at 9:15 AM. Within each sector, the divergence in performance between stocks with a certain market recognition and those without was quite evident.

During the initial call auction, the main board heavyweight sectors, such as liquor, white goods, pharmaceuticals, consumer goods, power, finance, and petrochemicals, which had significantly outperformed the market average, were also slightly stronger than a few minutes earlier, with more active buying.

Overall...

The hierarchical and differentiated landscape of the major core themes in the market has begun to take shape.

Yesterday's widespread price increases did not continue.

"With such positive market sentiment and expectations last Friday, why did the opening auction seem so off?"

Faced with the market's significantly weaker-than-expected performance, countless retail investors gathered on various online platforms sighed helplessly.

"Sigh, speechless. 'Huaxin Cement' and 'Huawen Online' were hyped up all weekend, and this is what they opened like? It's unlikely that either of them will open at the daily limit today. Judging from their opening auction trend, it's hard to say whether they can even hold their ground at the open. How come the funds that entered last Friday have such a lack of vision?" "Exactly, I didn't expect that both of these stocks would open below expectations."

"This is really outrageous. I thought at least one stock would have a significant impact, but now it seems that both stocks are in a very dangerous position today!"

"Compared to the entire market, among the leading stocks in the main themes, the opening auction performance of 'Huaxin Cement' and 'Huawen Online' is already considered relatively strong, right? Look at 'Huawen Media', 'Guangdong Media', 'Wanda Film', 'Huace Film', etc., most of them opened lower."

"I don't understand. There were such strong market expectations before the market opened, and the overseas markets were also cooperating. How did it turn out like this?"

"Who knows? You can never predict market trends!"

"What should I do? Should I sell 'Huawen Online' during the opening auction after buying it at the bottom yesterday afternoon?"

“Looking at the stock trends of ‘Huawen Media’ and ‘Yue Media,’ I think it’s safer to sell and take profits in time. Otherwise, it would be terrible if the stock fell back down later.”

"I also think it's safer to take profits."

What about the 'Oriental Yuhong' stock? Do you all think it's still worth holding onto?

“There shouldn’t be any major problems with continuing to hold, right? With Mr. Su’s ‘Fuxing Road’ seat continuously locking up shares, I don’t think there will be much selling pressure in the short term. However, for those who didn’t have any shares before and didn’t enter the market, this position is really not suitable for buying anymore.”

"I don't think so. Looking back now after all this time, 'Oriental Yuhong' is the real leader. Its performance has been truly outstanding."

"The only true dragon in the 'major infrastructure' main theme is not just talk."

"That's really impressive. Among the leading stocks in the previous batch of 'major infrastructure' concept stocks, this is probably the only one that has reached a new high, right?"

"Yes, that's right. I feel like this check can definitely appreciate in value."

"Not only will it rise, but I think that Mr. Su's continued increase in holdings at this level indicates that he is very optimistic about the long-term trend of this stock, and it may even have room to double in value."

"Among the stocks trending in the opening auction of the 'major infrastructure' sector today, the strength of 'Oriental Yuhong' should rank it among the top three strongest stocks in the entire sub-sector, right?"

"Anyway, I feel that the opening auction trend of 'Oriental Yuhong' is stronger than that of 'Huaxin Cement'."

"I also have this feeling."

"The stock 'Huaxin Cement' is quite popular in the market, but its trend is indeed a bit problematic. Logically speaking, the market expectation for this stock today should be that it opens at the daily limit."

"Overall, the 'major infrastructure' sector is actually doing alright. Other main sectors that performed strongly yesterday are even weaker. Look at the stocks in the Internet software, Internet application, and 'smartphone industry chain' sub-sectors. Among the stocks that surged yesterday, how many opened significantly higher in the opening auction today? Basically, very few opened higher."

"This should indicate that there was significant profit-taking in today's market, right?"

"It's not just obvious that they're making promises, it's blatantly running away with the money!"

"What's strange is that the heavyweight sectors on the main board, such as liquor, white goods, pharmaceuticals, consumer goods, power, finance, and petrochemicals, opened significantly higher."

"These heavyweight sectors opened significantly higher, making the overall market situation seem even less optimistic."

"Exactly! Why did you have to start with such strong main storylines?"

"The market saw significant profit-taking in the early stages, naturally leading to increased risk aversion among funds that tend to cluster around certain sectors. This, in turn, caused the heavyweight stocks to rise."

"That makes sense."

"Unless there are any surprises, every time the market's risk aversion intensifies, the heavyweight stocks will rebound."

"Sigh, it seems that it will be quite difficult for the market to achieve sustained growth."

"A continuous surge is definitely unlikely. If the market can stabilize today and not pull back too much, I think it meets expectations. So much bottom-fishing money came in last week, and today it's time to take profits and sell off. The market trend was so extreme last Friday, so a slight sideways adjustment today is normal and there's no need to make a fuss. At this stage, we should focus less on the index and more on individual stocks. Let's see which stocks are the real core leaders in the market right now."

"That's easy. Just look at Mr. Su's 'Fuxing Road' account, and the institutional account 'Huayi Capital' associated with 'Fuxing Road'. Just find out which stocks they bought. Other major institutions in the market are not trustworthy, but 'Huayi Capital' is a very trustworthy institution."

"Haha, same thought. I only buy stocks related to the concepts of 'Fuxing Road' and 'Huayi Capital' held by institutional investors, because I feel that only these stocks are safe to hold."

"Aren't those the three core leading stocks: Oriental Yuhong, Ganfeng Lithium, and Tianqi Lithium?"

"That's right, so far, we've only added these three stocks to our portfolio."

"It's different. With such a large amount of capital, 'Huayi Capital' must have invested in many stocks that haven't appeared on the list of top gainers and losers."

"We can't monitor those that aren't on the Dragon and Tiger List, so these three are probably the safest bet."

"Ganfeng Lithium and Tianqi Lithium probably don't have much of a chance today, right?"

"I also feel that there's not much of a buying opportunity for these two stocks today."

"Actually, among the core holdings of 'Huayi Capital,' there are many heavyweight stocks in the liquor, white goods, pharmaceutical, power, and financial sectors. I feel that some of these stocks currently offer relatively high investment value. Is it worth buying them?"

"Buying is definitely an option, but if you buy now, there won't be much profit potential in the short term. You'll have to wait and hold for the long term to have any chance, right?"

"Hmm, long-term investing seems pretty good too..."

Amidst heated discussions among countless retail investors.

Soon, the market trading session began at 9:25 AM, and the opening auction for both Shanghai and Shenzhen stock exchanges ended.

After a total of 10 minutes of pre-market auction, the Shanghai Composite Index finally settled at a gain of 0.35%, while the Shenzhen Component Index remained flat. The ChiNext Index, on the other hand, opened lower at 0.39%. Other indices, such as the Huazheng 500 Index and the All-China 1000 Index, which focus on small and mid-cap stocks, also opened at roughly the same level as the ChiNext Index.

Conversely, the A50 index, which was generally viewed unfavorably, opened significantly higher, with an opening gain of 0.51%. (End of Chapter)