Rebirth of the Capital Legend

However, although the market has declined somewhat compared to the initial call auction, the leading stocks in the popular sectors and related industries still show strong momentum.

Even for Beijiang Jiaojian, a stock that has garnered significant attention and topped the list of hot stocks in both Shanghai and Shenzhen stock exchanges, the number of buy orders at the daily limit up did not decrease after 9:20 AM; in fact, it increased slightly. Meanwhile, other popular stocks such as Tianci Materials, Changying Precision, Lixun Precision, Tianqi Lithium, and Ganfeng Lithium did not show any significant decline in buying interest, nor did they experience a sharp drop in their opening prices.

Of course, these core, popular leading stocks continue to attract the attention of a large number of active short-term funds in the market, and the buying power is still increasing.

Concept stocks with low investor preference, poor fundamentals, and low institutional holdings.

In particular, sectors such as film and television media, internet software, and internet applications, which have been consistently losing money and are already relatively weak in the market, have seen a significant pullback, shifting from a slightly higher opening to a generally lower opening.

As for the major sectors and key industries in the main board area.

The performance before and after the call auction is not significantly different.

On the trading screens of its core leading stocks, there was neither significant selling pressure nor significant active buying support.

"Judging from this situation, is the stock of Beijiang Transportation Construction about to enter an acceleration phase?"

After entering the actual call auction phase, it was noticed that the limit-up buy orders for Beijiang Jiaojian, the core hottest leading stock in the market with the highest discussion, not only did not decrease, but actually increased significantly. At this moment, on the online stock investment exchange platform where a large number of retail investors gather, many retail investors are currently focused on this stock and can't help but ask questions.

"It's definitely going to accelerate. I don't think Beijiang Jiaojian's stock will open today. Sigh... What a pity. I had the opportunity to buy in heavily yesterday, but I hesitated a little and didn't dare to make a decisive move. Now I can't buy in at all. I missed the opportunity!"

"Indeed, the trend is very strong. After five consecutive limit-up days, I didn't expect it to open at the limit-up price today."

"I don't see any particularly positive stimulus, so how could it open at the daily limit up? And there are so many buy orders at the limit up price. I just don't understand it. Although the fundamentals of the infrastructure sector are good and there are many positive factors, the overall position is not low. I don't think this continuous short squeeze is necessarily a good thing."

"Positions are relative. Compared to the current heat of the real estate market and the speed of expansion of the entire industry, I think the valuation of stocks in the infrastructure sector and related industries is still very undervalued. After all, its growth potential is certain in the foreseeable two or three years. Moreover, we should not limit our focus to the A-share market. Look at the related domestic real estate stocks in the Hong Kong stock market. Aren't their gains much more exaggerated than those in the domestic A-share market? Therefore... I think it is clearly too early to say that the infrastructure sector has peaked or faces huge risks."

"Yes, I think so too. In fact, with the growth of the industry and the reversal of the fundamentals, the stock is very likely to become less and less valued as the stock price rises. Anyway, at present, the leading stocks in the major infrastructure sector are still in good shape, and there is no sign of any loosening in the internal shareholding structure. I think they can continue to rise, and it is very likely that what follows is the main upward trend."

"When looking at industry sectors and the main market trends, we can't always focus on speculative stocks. We also need to pay attention to the performance of the leading stocks in the main sectors. I think the performance of these leading stocks is the barometer of the main market trend. Only when the performance of these leading stocks continues to improve can concept stocks in the main sectors have the opportunity to be continuously speculated on and open up space for consecutive limit-up days."

"That's well said. It's necessary for large-cap and small-cap stocks to move in tandem to form a sustained upward trend. Only when the main trend continues to emerge can it drive the market index, raise the overall market valuation, and ultimately lead to a shift from a bear to a bull market."

"Isn't it a bit too early to talk about a shift from a bear to a bull market?"

"That's for sure. What I mean is that we need to take a comprehensive view and not just focus on the speculative stocks and leading stocks in the market when making our analysis."

"Overall, many leading stocks in the major infrastructure sector have indeed shown very stable performance."

"That's right. Take Conch Cement for example. Although it has been rising very slowly, it has never fallen back to the 20-day moving average. It's really strong."

"And Huaxin Building Materials stock is also very strong."

"China State Construction Engineering Corporation, China Railway Construction Corporation, China Communications Construction Corporation... a large number of infrastructure heavyweight stocks with 'China' in their names are also showing strong performance."

"It seems that the performance of many heavyweight leading stocks in the real estate development sector, which is most closely related to the real estate sector, is not as good as that of the heavyweight leading stocks in the building materials and building decoration sectors. What is the reason for this? Aren't real estate stocks the most direct beneficiaries?"

"I think the core leading stocks in the real estate sector were heavily speculated on at the end of last year due to the equity dispute of Kewan Real Estate. Their overall valuation and stock price are much higher than many stocks in the construction and decoration and building materials sectors, so their gains during this period will be relatively lagging behind."

"Yes, that makes sense. Look at the current stock price of Kewan Real Estate. Compared to last year's low, and compared to the lows of many leading stocks in the construction and decoration and building materials sectors last year, Kewan Real Estate's overall stock price increase is still much higher."

"No wonder I felt the real estate sector wasn't going to have a strong surge this time; it turns out this sector had already risen ahead of time."

"Yes, the expectations for the real estate sector have actually been somewhat prematurely priced in."

"How do you explain the much stronger performance of related stocks in the Hong Kong stock market, within the same real estate sector?"

"That's different. In the Hong Kong stock market, the valuation of a number of mainland property stocks is still very undervalued compared to the valuation of a number of real estate stocks in the A-share market. The valuation of real estate stocks in the Hong Kong stock market was severely suppressed before, and it is only now that it has begun to rebound."

"So, does that mean the share prices of many mainland property companies in the Hong Kong stock market can continue to rise sharply?"

"It's highly likely that it will continue to rise sharply."

"It's a pity we don't have enough funds to open the Shanghai-Hong Kong Stock Connect. Otherwise... I really wanted to buy some Hengda Real Estate shares. I feel that this real estate company is currently severely undervalued and has a lot of room for future growth."

"Yes, that's what I think too, but I'm not qualified to open the Shanghai-Hong Kong Stock Connect."

"Why would we need the Shanghai-Hong Kong Stock Connect? We can just open a Hong Kong stock account, can't we?"

"That would be troublesome, wouldn't it? Sigh... Forget it, I'll just stick with A-shares. The two markets seem to be much more closely linked now than before."

"That's true, especially the recent interaction between the two markets, which is noticeably different from before."

"The reason why the two markets are closely linked now is that the driving force behind the market is the large-scale infrastructure sector, right? Since the same main theme is driving the market, the trend is naturally closely linked."

"The major infrastructure sector, from any perspective, hasn't peaked yet, so there's no need to worry too much. What I'm more concerned about are the smartphone supply chain and the new energy supply chain. If these two sectors can't hold up, I think the major infrastructure sector will likely be dragged down, and the market index won't be able to easily continue pushing towards the 3100-point range." "Compared to the major infrastructure sector, the smartphone supply chain and the new energy supply chain are indeed significantly weaker."

"It's not just that it's much weaker, its internal asset structure is also worse."

"The main reason is that institutional holdings in these two main sectors are still insufficient, so the internal holdings haven't been fully accumulated yet. However, I feel that as time goes on and the holdings in these two main sectors continue to accumulate, the overall market trend is still quite optimistic."

"I don't think so. I feel that the smartphone supply chain, especially the Apple concept sector, is about time to take profits and exit. Apple's fall product launch is just a few days away. This is a predictable positive that most retail investors in the market can observe and anticipate. In other words, the expectation has already been priced in. In this case, as the time for the product launch gets closer, the stock price performance of related stocks will become weaker and weaker. More and more investors will take profits and exit to prevent the positive news from turning into a negative one, and the potential buying power will also become weaker and weaker."

"That makes sense. It seems that our A-share market is most fond of 'good news being realized'."

"The Apple concept sector is likely to form a 'profit-taking' pattern. Of course... if Apple's fall product launch this year has the same success as the 4S, then this so-called 'profit-taking' will be a different story."

"After Jobs' death, it seems a bit difficult to recreate the glory of 4S, right?"

"It's not just difficult, I think it's very difficult to replicate the glory of the past."

"In fact, it is never a good thing to have overly high expectations, and overly high expectations will affect one's overall judgment of the market trend."

"That's right, so you have to stick to your judgment and have enough patience."

"You also need to be decisive when the opportunity comes, otherwise you will miss the opportunity and your mindset will be unstable, which will definitely cause problems in subsequent trading operations."

"What about the new energy industry chain? What are your thoughts, and is it still a good time to buy at this price?"

"I think it's still worth buying. The situation in the new energy industry chain seems much more optimistic than that in the smartphone industry chain. Moreover, judging from the current trends of major institutional funds, institutional funds are increasing their holdings in the new energy industry chain much more actively than in the smartphone industry chain."

"Yes, I think Tianqi Lithium and Ganfeng Lithium are still worth buying for now."

"That's definitely a buy. With the support of Mr. Su's related seats, the trend of these two stocks is as stable as a rock. I feel that these two stocks may form the same pattern as Oriental Yuhong. Once they form the same pattern as Oriental Yuhong, it will be difficult to find a place to increase positions later if you don't buy now."

"Speaking of Oriental Yuhong stock, it really has the potential to rise. Several major market index corrections haven't hurt it, nor has it experienced significant and sustained losses. I think that given its current trend, this stock is likely to accelerate further in the future."

"Further acceleration seems unlikely, right? This stock has already risen quite a bit."

"It's entirely possible, but this is a scenario that will likely only occur once the index truly breaks through 3100 points."

"Yeah, I think so too."

"Let's see how the market moves today. Overall, I feel that today's opening auction price was a bit lower than everyone's pre-market expectations."

"To be honest, I think so too."

"There were hardly any stocks that opened higher, and the performance of core leading stocks differed greatly from that of ordinary stocks."

"The leading stocks are performing well, but there are no follower stocks to follow suit. The divergence between popular and unpopular stocks is too great, which gives people a very bad feeling."

"Compared to before 9:20, the overall level has dropped significantly."

"I don't think the market trend will be particularly optimistic after the official opening."

"I'm not too optimistic. I feel that the market is unlikely to break through today and will most likely continue to trade within a narrow range."

"We still need to see how the stock of Beijiang Jiaojian will affect the overall market."

"How much can it stimulate?"

"It's not clear yet, but there will definitely be a spillover effect of funds. We'll see how the infrastructure sector continues to perform after the official opening, assuming the sentiment is still acceptable."

Amidst heated discussions among countless retail investors across the market…

The market's trading time jumps forward extremely quickly.

With everyone watching closely, the time quickly came to 9:25, and the opening auction for both Shanghai and Shenzhen stock exchanges ended.

However, after the opening auction, the actual market situation in both Shanghai and Shenzhen did not show a significant gap up at the open.

In addition to the main theme of major infrastructure construction and its related sectors.

The lithium battery and Apple concept stocks, two strong sectors, as well as the liquor and white goods sectors, both consumer sectors, opened slightly higher.

Other market sectors and concept stocks generally remained flat at the open.

As for the indices, the major indices all opened flat, failing to show the significant gap-up opening trend that many had expected before the market opened. (End of Chapter)