Rebirth of the Capital Legend

All eyes were on countless investors, both inside and outside the venue.

At 9:30 a.m., the stagnant market activity in both Shanghai and Shenzhen markets began to surge rapidly. The trading volume of leading stocks in major market sectors and related concepts all skyrocketed in an instant.

Almost instantly...

The leading stocks and core concept stocks in the "new energy industry chain" sector were snapped up by countless funds in the market. Even related stocks such as "Guoxuan High-tech", "Jiangte Motor", "Rongjie Technology", and "Huichuan Technology" all jumped from a 4% to 6% gain range at the open and quickly hit the daily limit, where they were immediately locked by large buy orders.

There are also leading stocks in the automotive sector with significant weight, such as BYD, Great Wall Motor, and Shanghai Automotive Group.

They all experienced a rapid surge in volume and price the moment trading officially began, continuing the strong momentum from last Friday.

While the entire 'new energy industry chain' sector experienced a rapid surge in trading volume and maintained its strong momentum, what about the performance of other main market sectors and other core stocks?

The main area of ​​'major infrastructure'.

The three core sectors of real estate, construction and decoration, and building materials all rose rapidly in tandem, attracting a frenzy of buying from major institutional investors and active speculative funds at the opening.

Related core concept stocks.

Oriental Yuhong surged to over 7% on high volume, Huaxin Cement rose to over 6%, and Beijiang Jiaojian hit the daily limit up, continuing its winning streak. Tianshan Cement quickly turned positive after opening lower, while other stocks such as Shougang Group, Financial Street, and Chongqing Development also rebounded instantly from their low openings.

Related heavyweight stocks, such as 'Huaguo Construction', 'Anhui Conch Cement', 'Huaguo Railway Construction', 'Huaguo China Railway', 'Poly Real Estate', 'China Merchants Shekou', 'Gemdale Group', etc., all turned positive and rose after opening flat or slightly lower.

The main areas of the 'emerging industrial chain' include film and television media, internet software, and internet applications.

The performance of corresponding core concept stocks and industry leaders is reflected in their stock performance.

The core concept stock, 'Huawen Online', experienced a rapid surge in trading volume followed by a sharp drop and a reversal into negative territory, indicating significant selling pressure and substantial profit-taking from yesterday. 'Huawen Media' saw its decline widen rapidly at the opening, reaching around 7%, while 'Yue Media' plummeted to near its daily limit down immediately upon opening.

Stocks such as LeTV, Netspeed Technology, Baofeng Technology, and Quantong Education, as well as core constituent stocks of the ChiNext Index, all plummeted immediately after the market opened, with significant profit-taking. The overall market trend showed no signs of strength.

The "smartphone" sub-segment within the main "emerging industry chain" sector.

Apart from a few core leading stocks in the 'Apple supply chain' sector, such as 'Lixun Precision', 'Changying Precision', 'Goertek', and 'O-Film Tech', which rose in early trading and entered positive territory, other related industry sectors, concept sectors, and related concept stocks generally followed the decline in related core concept stocks in the film and television media, internet software, and internet application sectors.

The main board's weighted sectors include traditional industries such as liquor, white goods, pharmaceuticals, consumer goods, power, finance, and petrochemicals.

In the liquor and white goods sectors, stocks held by the institution 'Huayi Capital' were also snapped up by a large number of major funds and active short-term speculative funds at the opening of the market, and related concept stocks and constituent stocks all showed a positive upward trend.

The banking sector benefited from the positive stimulus of the central bank's plan to further release market liquidity in the future, as well as the positive sentiment generated over the weekend. It performed relatively strongly at the beginning of the trading day, with the four major state-owned banks and various rural commercial banks all showing an upward trend, seemingly making up for the market performance on Friday.

The power and petrochemical sectors, and their corresponding core stocks.

Although there wasn't much active buying at the start of trading, the overall trend was relatively stable, basically in sync with the Shanghai Composite Index.

The pharmaceutical and consumer retail sectors were relatively weaker than the liquor and white goods sectors.

However, although these two sectors and their corresponding constituent stocks underperformed the liquor and white goods sectors, they were still significantly stronger than the banking, power, and petrochemical sectors, indicating that institutional investors continued to concentrate their funds in these two sectors.

As for other market sub-sectors besides these core areas, as well as other industry sectors and concept sectors.

The fluctuations are basically in line with the main sectors of the 'emerging industry chain', namely film and television media, internet software, and internet applications.

Although the performance of these sector indices is not as weak as these few sectors.

However, it is clearly not as good as the Shanghai Composite Index on the main board, nor the performance of the traditional heavyweight sectors on the main board.

Overall, the market's main capital flow at the opening was biased towards upward movement. Clearly, the market trend at the opening was biased towards the main board heavyweight sectors, the "major infrastructure" sector with a clear turnaround in industry fundamentals and a relatively clear future outlook, and the "new energy industry chain" sector.

Looking at the market as a whole...

These two main themes are the strongest performers and attract the most aggressive buying interest.

Under these circumstances...

At 9:31 AM, the consensus among various market participants became increasingly apparent. 'Oriental Yuhong' continued its surge with high volume, reaching an 8% gain. Leading stocks in the automotive sector, such as 'BYD', 'Great Wall Motor', and 'Shanghai Automotive Group', also quickly broke through to gains of over 3%.

At 9:32 AM, the Shanghai Composite Index rose by 0.67%, while the ChiNext Index fell by 0.73%, showing a clear polarization.

At 9:33 AM, the core related sectors of the 'new energy industry chain'—the three major sectors of automobile manufacturing, auto parts, and auto decoration—as well as the non-ferrous metals sector, all saw gains exceeding 3%. Among them, the 'lithium battery' concept sector even quickly reached a gain of 3.5%.

At 9:34 AM, the stock price of 'Oriental Yuhong' rose by 8.5%, nearing the daily limit, while the stock price of 'Huaxin Cement' rose by nearly 7%. In just 4 minutes, the trading volume reached over 4 million yuan.

At 9:35 a.m., the indices of the three core industry sectors—real estate, construction and decoration, and building materials—had risen by about 1.5% during the day.

At 9:36 AM, the stock 'Huawen Online', which had initially plummeted at the open, gradually rebounded. At 9:37 AM, 'Changan Automobile' once again approached its daily limit.

At 9:38, the decline in the ChiNext index recovered to within 0.5%, and the declines in the film and television media, internet software, and internet applications sectors all narrowed.

At 9:39, the stock 'Chinese Online' gradually recovered and turned positive after a sharp drop.

At 9:40, the Shanghai Composite Index gradually approached the 1% gain mark, while the A50 Index had already risen by more than 1%. Among them, the core constituent stocks of the A50 Index, especially the heavyweight stocks in the banking and major infrastructure sectors, all saw gains exceeding 1%, significantly outperforming the index.

At 9:41, the stock price of 'Oriental Yuhong' rose by nearly 9%.

At 9:42 AM, the trading volume of 'Huaxin Cement' surged to over 7 million shares, and the stock price rose steadily to 7.5%.

At 9:43 AM, in the 'Apple supply chain' sub-sector, 'Lixun Precision' surged by more than 3%,带动了Goertek, OFILM, and Changying Precision to rise as well.

At 9:44 AM, 'Changying Precision' continued to surge in volume, with a daily increase of around 5%.

At 9:45, the stock 'Huawen Online' turned positive and rose, with its price increase reaching around 1%, and it continued to strengthen as the trading session progressed.

At 9:46, the decline in the stock price of 'Huawen Media' narrowed to around 3%.

At 9:47, the stock 'Oriental Yuhong' touched the intraday limit up for the first time, setting a new annual high, and is now less than 25% away from its all-time high.

At 9:48, 'Tianshan Cement' opened lower and surged to a gain of around 5% with high trading volume.

At 9:49 AM, the stock price of 'Anhui Conch Cement' rose by 2%, reaching a new high for the year and gradually approaching its all-time high.

At 9:50 a.m., the ChiNext index turned positive and rose, while the Shanghai Composite Index rose by 0.95%.

At 9:51 AM, the restructuring concept and ST stocks saw a surge in trading volume, as market funds began to look for undervalued stocks and engage in concentrated speculation.

At 9:52 AM, the decline in the indices of several core sectors, including film and television media, internet software, and internet applications, narrowed to less than 0.5%. Among them, the stock 'Huawen Online' had rebounded to a gain of over 3%, showing strong momentum to continue hitting new highs and even the daily limit.

At 9:53 AM, the decline in the stock price of 'Huawen Media' narrowed to less than 2%.

At 9:54, the decline in the stock price of 'Guangdong Media' narrowed to about 5%.

At 9:55, after hitting the daily limit with a significant increase in volume, 'Oriental Yuhong' did not completely lock in the limit, and the stock price fell back to around 8.5% gain.

At 9:56, Tianshan Cement, a stock that started late but rose early, surged towards the daily limit.

At 9:57, 'Tianshan Cement' hit the intraday limit up.

At 9:58, 'Tianshan Cement' hit the daily limit up. Driven by the strong performance of 'Tianshan Cement', the entire cement concept sector index once again became the core leading sector in the 'major infrastructure' theme, with a market gain of over 2.5%.

At 9:59, the Shanghai Composite Index surpassed the 1% mark and approached 3100 points.

At 10:00 AM, all major market indices turned positive. Although major institutional investors and active short-term funds were primarily concentrated in the real estate, construction, and building materials sectors under the "major infrastructure" theme, and the automobile, auto parts, and non-ferrous metals sectors under the "new energy industry chain" theme, small and mid-cap stocks, as well as their related thematic, industry, and concept sectors, also attracted some buying attention. Overall, the market trend was gradually improving.

"Looking at the market trend in the first half hour, it seems the market isn't as bad as I expected." After half an hour of intense trading, Zhao Zhiyuan said with a smile in the 'Shandong Gang' group of major speculative investors, "At the beginning of the session, I thought there was no hope for today, but I didn't expect... After the initial wave of profit-taking and subsequent sell-off, the market actually recovered stubbornly. This is quite unexpected. Moreover, looking at the market trend and volume in the first half hour, it's clear that the overall trading volume hasn't decreased significantly. It feels like there's still room for maneuver in the market, and the overall investor sentiment and confidence may continue to improve!"

“Yeah, I think so too.” Hearing Zhao Zhiyuan’s sentiment, Zhang Wei nodded and replied, “I thought the film and television media, internet software, and internet application sectors would collapse today, but I didn’t expect… after the rapid sell-off at the opening, these sectors have all turned positive.”

I think as long as the trends of these sectors are not problematic.

Therefore, the performance of small and mid-cap stocks in the overall market will not be too bad.

Moreover, the stock 'Huawen Online' has performed really well. After the rapid sell-off in the morning released the profit-taking pressure, it quickly rebounded without hesitation. Now, looking at the stock's price movement, there is a clear upward trend, and it may even hit the daily limit.

As long as 'Chinese Online' holds steady and continues to create upward potential.

Therefore, it has a clear positive effect on the trends of the film and television media, internet software, and internet application sectors.

As long as this stock doesn't collapse, the overall trend of small and mid-cap stocks in the market is unlikely to collapse.

I feel that it's worthwhile to continue increasing my long position in 'Huawen Online' stock, and the certainty of investing in this stock currently seems quite high.

"Haha, you're right." Zhao Zhiyuan laughed and said, "I've already bought a large amount of shares in 'Huawen Online' and am just waiting for it to hit the daily limit. No matter how the market fluctuates, 'Huawen Online' is undoubtedly still the absolute core leader in the small and mid-cap and micro-cap stock sector, and its popularity is really high. As long as there is support in the market, I feel that with the push of a group of active followers, it can hit the daily limit and continue to create new space."

"As long as the overall market sentiment remains stable," Zhang Wei said, "'Huawen Online' stock is highly likely to hit the daily limit up today, right?"

"If we want enough certainty..." Liang Jiucheng chimed in as the two were talking, "Actually, we can wait and see. The most certain buying point for 'Huawen Online' today should be when it hits the daily limit up, but the certainty is still a little lacking at the moment."

"But the cost-effectiveness of the gamble has been demonstrated," Zhao Zhiyuan said. "In the small and mid-cap and micro-cap stock sectors, if we want to truly generate profits and return to the previous upward trend, funds can't bypass 'Huawen Online' right now. So... I think that as long as the turnover rate of 'Huawen Online' is slightly more sufficient, it will definitely hit the daily limit today." (End of this chapter)