Rebirth of the Capital Legend

As several core investors from the Suzhou-based group discussed the morning's market trends and potential future market trends...

During the lunch break, on all major stock investment exchange platforms across the Internet.

Countless retail investor groups are also engaged in heated discussions.

"There shouldn't be any reversal in today's market trend, right? I feel like the afternoon's trend isn't very optimistic!"

"I think the opposite is true. This morning's market trends, whether it's the index or the major core sectors, have already undergone sufficient volatility adjustments. I feel that after the market officially opens this afternoon, the index, major sectors, and their corresponding core leading stocks will likely continue to rise, similar to yesterday afternoon's trends."

"I think it's difficult. Today's market volume is significantly lower than yesterday's. As the saying goes, there's market momentum only when there's volume. Without volume, where does the market come from? Currently, during this morning's market trends, the active buying in the major sectors is still relatively weak. Aside from the new energy industry chain and major infrastructure, other major sectors have some issues with buying."

"The smartphone industry chain is also doing okay, right? Look at Lixun Precision, Goertek, OFILM, Changying Precision... these core Apple-related stocks are all performing well. Lixun Precision, in particular, saw a significant surge in volume yesterday, and it's still maintaining a high opening and fluctuating trend today, which is already very strong."

"I feel like the Lixun Precision stock is indeed somewhat replicating the trend of Oriental Yuhong."

"That's still not comparable, right?"

"They can't be compared at the moment, but bull stocks are built step by step. Judging from the current trend, Lixun Precision has the best trend."

"It's just that the market cap is a bit large. Many active short-term capital groups shouldn't invest heavily in this stock, right?"

"Speculators will definitely not get involved in mid- to large-cap stocks like these with a market capitalization of tens of billions. The capital group that dominates this stock should be institutional funds."

"I suspect that Mr. Su's Fuxing Road, or the institution he heads, Huayi Capital, has some investment in Lixun Precision."

"This... can't be right? I didn't see any traces!"

"I didn't see it, Mr. Su, but the signs of the 'Fushan Group''s' involvement are very obvious."

"Ah, with this 'Fushan Group' money, it's a bit disgusting."

"Yes, I feel like the 'Fushan Group' has always had a very limited presence. They're just short-term speculators who won't hold onto their shares for the long term. With this kind of capital, I feel like Lixun Precision, and of course... also OFI Technology, Changying Precision, Goertek... these core Apple-related stocks that the 'Fushan Group' has invested in, are likely to experience a sharp correction!"

"There will definitely be a callback, but it should be after Apple's new product launch conference, right?"

"If it's after the launch event, then there's nothing worth speculating about. After all, after the Apple launch event, there won't be any other major expectations for this line in the short term."

"It's different. What if the new products released at Apple's new product launch conference are well received?"

"Didn't they say global smartphone shipments would return to growth this year? If this prediction is correct... then the entire smartphone industry chain is in a state of recovery, right? Since the entire industry is on the road to recovery, there should be strong expectations for the future."

"This is just the agency's propaganda. Whether it can be realized or not, we won't know until the end of the year!"

"After several years of development, it seems the domestic smartphone market has reached a ceiling. With the subsequent wave of phone replacements, demand is expected to stabilize and not change significantly. The industry recovery being touted by institutions seems more like hype than speculation and should not be overly trusted."

"Well, relatively speaking, the large-scale infrastructure route is more secure."

"However, the current rate of increase in housing prices seems to have slowed down."

"If prices continue to soar like they have in the past few months, what's going to happen? The rate of increase will definitely slow down. I think this is in line with expectations. The key is whether housing prices are still rising. As long as they are, then the problem isn't serious. Furthermore, the logic behind the entire major infrastructure project pipeline shouldn't just focus on housing prices, but also on scale. Looking at the current scale of signed infrastructure projects in China, and the projects still to be developed, is there explosive growth compared to before?"

“That’s definitely exploding.”

"I think the core logic behind the large-scale infrastructure investment plan is unquestionable. Just look at the performance of Hong Kong stocks along this line. Generally speaking, the Hong Kong stock market is dominated by foreign institutions, and at this stage, it seems that foreign institutions are also rapidly increasing their holdings of mainland real estate stocks in the Hong Kong stock market."

"Well, domestic real estate stocks in the Hong Kong stock market have indeed all risen sharply today."

"That's right! Hengda Real Estate's stock price has risen 11% in just half a day. It's a pity I don't have the permission to buy Hong Kong stocks. Otherwise... I would have bought all of Hengda Real Estate stock."

"Yes, the Hong Kong Stock Connect requires a capital threshold of 50 yuan."

"Well, the Hong Kong stock market's major infrastructure sector is indeed stronger today than the mainland market, suggesting a correlation between the two places."

"Looking at the market trend of Hong Kong stocks, I feel that the real estate sector is going to explode in this afternoon's market trend!"

"Didn't the surge in Hong Kong-listed Chinese real estate stocks show up this morning? I think the market has already seen and anticipated this, right? It won't necessarily have much of a guiding influence on the afternoon's market trends. I think... we should be a little more cautious today."

"The risk in this area of ​​major infrastructure construction is not great."

"As long as Oriental Yuhong's stock continues to rise, it's worth buying into the infrastructure sector."

"Want to buy Beijiang Communications Construction's stock? It seems like Beijiang Communications Construction's stock has become the core leader of the entire infrastructure line!"

"Well, let's buy Beijiang Communications Construction's stock."

"What about Capital Group's stock? Beijiang Communications Construction's stock has been hitting a new high for a long time, but Capital Group's stock is still some distance away from its previous high."

"The flexibility of Beijing Capital Group's stock should be far less than that of Beijiang Communications Construction."

"What about Huaxin Cement?"

"Huaxin Cement should be dead, right? It turns out the major institutions involved in the first two trading days seemed to be fake!"

"Huaxin Cement stock is not worth buying for now."

"I also think that after Beijiang Communications Construction has secured a position in this stock, there will be no other funds to trade it."

"It's better to buy Huaxin Building Materials than Huaxin Cement."

"Well, Huaxin Building Materials is a good stock. The fundamentals are strong. I think the logic behind this stock should be the same as Conch Cement, right?"

"HuaXin Building Materials also has a large cement business, right?"

"By the way, what's the current price of cement? Is it still rising?"

"It has to keep rising, otherwise, how could Conch Cement's stock have become so bullish? Sigh... I remember when Conch was around seven or eight yuan, I actually had my eye on it back then, but I never made up my mind to buy it. Now, looking back... the stock price has almost doubled." "Among the heavyweight core leading stocks in the past two or three months, Conch Cement's stock price increase should rank first, right?"

"That's not possible. Isn't Oriental Yuhong a leading stock in the industry? The increase in Conch Cement's stock price is still quite a bit lower than that of Oriental Yuhong's, right?"

"Can the logic of the two be the same? The market capitalization gap is more than double."

"If you really think about it, Oriental Yuhong's stock is also a leader in its niche industry."

"I don't know if you've noticed, but currently, the leading stocks in various sub-sectors are performing quite well in the market!"

"Yes, indeed. It seems that the various fund groups in the market now prefer growth stocks with performance support."

"That's right, pure concept stocks are indeed not very popular anymore."

"It's mainly because after the last bull market, several rounds of stock market crashes were too devastating, resulting in a number of concept stocks being overvalued and holding a heavy position."

"Yes, it's obvious that just telling stories in the market is no longer effective."

"Speaking of the LeEco stock, can its story continue?"

"I don't know about that. It depends on Mr. Jia's ability. But I think LeEco's stock is still overvalued, even though it has fallen quite a bit."

"This stock has always been overvalued. It has never been undervalued."

“Does it count when it goes public?”

"The key is that its current performance can't support its market value at all!"

"Across the entire emerging industry chain, including film and television media, internet software, internet applications, and electronic information, there are only a few stocks whose performance can support this market value."

"That's true. Overestimation is a common phenomenon."

"So, forget about it. If you think a stock is overvalued and doesn't have a large group of major investors or obvious attention, just don't touch it."

"Well, the emerging industry chain is definitely more difficult at the moment."

"After the collapse of Huawen Online, the entire emerging industry chain has been in a difficult situation."

"The hype surrounding Huawen Online's stock is purely driven by capital, with no underlying logic to support it. I think it's likely to go back to where it came from."

"Relatively speaking, the two stocks of Beijiang Communications Construction and Changying Precision should have some underlying logic to support them, right?"

"That's for sure. Beijiang Communications Construction can be seen as a beneficiary of rising cement prices, while Changying Precision is benefiting from Apple's new product launches. As a new entrant into the Apple supply chain, it's fair to say that the performance growth expectations brought to the company by Apple's new products are quite strong."

"Well, I think so too. I think Beijiang Communications Construction's stock has the potential to become a core leader in the subsequent market, especially a leading stock."

"The Changying Precision stock also has promise."

"Isn't Sugon Shares the strongest stock in both markets right now? Due to its continued strong performance with daily limit-up, it even gave the restructuring concept a boost this morning."

"Shuguang shares have absolutely no turnover. Stocks that have been rising for a while without turnover are very likely to crash right after the opening bell. For this stock to become a popular core leader in the market, it will definitely have to go through the post-opening period, after which it will be subject to the baptism of various funds taking over and continuing to close the board and expand upward. It's clearly too early to say this stock is the most popular core leader in the market. Judging from the current trend, especially in terms of its driving effect on the entire new energy industry chain, I believe Shuguang shares have less potential than Tianci Materials."

"I agree. I also think that Tianci Materials' stock has more potential."

"It's the Tianci Materials stock. Its current market capitalization is quite small, making it difficult for large capital groups to speculate on it."

"Being small has its advantages. A small circulating stock makes it easier to control. And as for market capitalization... as long as the logic is solid, isn't it enough to just keep rising?"

"That's true..."

"Relatively speaking, the stock of Dofluoro is pretty good, right?"

"It's good, but the business of Dofluoro is not as pure as that of Tianci Materials."

"Yes, so in terms of valuation and capital preference, Tianci Materials is stronger than Dofluoro."

"It's mainly lithium hexafluorophosphate. The demand explosion is expected to be stronger, right?"

"This logic makes sense. I also think there's another point. Although the circulating market capitalization of Tianci Materials is a bit small, the circulating market capitalization of Dofluoro is significantly larger, exceeding 10 billion. With a circulating market capitalization exceeding 10 billion, I think in the current market situation, other capital groups, especially the many short-term capital groups in the market, will find it difficult to move this market."

"Then let's invest in Tianci Materials..."

"Actually, Ganfeng Lithium and Tianqi Lithium are both good stocks, and they have President Su's support."

"It's good, but there's no good buying point. If I want to buy, I can only chase the high. But I feel that the market trend this afternoon, or even tomorrow, is unlikely to be good. Buying at a high price at this time is risky. However... if these two stocks pull back later, then it would be great to continue buying."

“Will there be a chance for a bigger callback?”

"I think a big pullback is possible, so don't rush it. I was too hasty when I bought Oriental Yuhong before. The cost was too high, and I was thrown off the market during a sharp pullback. As a result, I couldn't keep up with the stock and missed out on the subsequent nearly doubling of its value. This time... I can't make the same mistake with Ganfeng Lithium and Tianqi Lithium."

"If you buy a little at a time and gradually increase your position, I don't think it will have any impact."

"Well, the strategy of buying in batches is quite good..."

The lunch break passed very quickly with the heated discussions among countless retail investor groups.

Soon, under the continued attention of countless investor groups and the focus of everyone, at 1 p.m., the two markets once again ushered in the formal continuous bidding trading period after a brief one-hour suspension.

I saw that the clock had just moved to 1 o'clock in the afternoon.

Amidst the rapid fluctuations in the trading screens of both Shanghai and Shenzhen stock exchanges, several leading stocks from various themes, which had been the subject of intense discussion and high market activity at midday, saw a surge of buying interest from a large influx of speculative capital the moment the market officially opened, causing their share prices to rise accordingly. (End of Chapter)