Li Shangfeng thought for a moment and replied,
"Judging from the past position-holding history of the 'Huayi Expedition No. 1' fund product, this President Su of 'Huayi Capital' has a remarkably accurate investment vision.
Whether it was the 'liquor' and 'white-goods' sectors at the beginning of the year, or the subsequent main-theme lines of 'pharmaceuticals' and the 'new energy industry chain', he got every single one right, capturing the most lucrative portion of the profits across each main theme with heavy positions.
I believe his continuous position increases in black-commodity sectors like 'real estate', 'steel', 'coal', and 'non-ferrous metals'—while we don't necessarily have to follow blindly, maintaining a certain level of continuous attention is certainly very necessary."
Wang Shujie nodded slightly and responded,
"This person's investment vision is truly precise, and his investment style isn't rigid either. Knowing how to execute corresponding style switches at the right moments—he is indeed formidable."
Before the 'Huayi Expedition No. 1' fund product was established,
all investors and those in the Shanghai financial circle who paid close attention to Huayi Capital believed that after Su Yi established 'Huayi Expedition No. 1', he would continue his previous high-flying, emotion-driven short-term trading style, or emulate previous 'Zhexi-faction' fund products by engaging in market insider-restructuring speculative trades.
They never expected...
that after the fund was officially established, he would choose the path of so-called 'value investment', completely abandoning the short-term trading style of emotional hype and fully embracing the market's high-performing white horses and heavyweight blue-chip stocks.
This drastic transformation in trading style left everyone paying attention to Huayi Capital and those who thought they understood President Su of Huayi Capital completely caught off guard for a moment.
Yet now, looking back after more than half a year at President Su's initial choices and his transition in trading style, it was undoubtedly quite correct.
In fact, the entire market's shift in investment style and main-theme rotation began precisely with the steering helm of Huayi Capital altering its trading style.
Keep in mind, renowned or star fund managers within the industry who possess a mature trading system and investment philosophy and can accurately grasp a certain market style of investing are already considered quite formidable.
However, President Su of Huayi Capital was able to adapt with different investment strategies across various market stages, wielding whichever strategy he chose with effortless mastery.
That was truly something to admire.
"I've heard that Manager Yang of our company's 'New Energy Industry Growth Hybrid Fund' is already making corresponding strategic position adjustments," Li Shangfeng paused for a moment before saying, "I'm thinking that if we don't take the initiative, it will be very difficult for our fund to maintain a leading performance streak in the second half of the year!"
"What, is the fund product managed by Manager Yang also emulating Huayi Capital recently by continuously cutting positions in the 'new energy industry chain' main-theme stock chips and increasing positions in the real estate main theme instead?" Wang Shujie asked with a hint of surprise. "Aren't the funds they manage industrial investment funds? Isn't deviating from industry main-theme investments pure foolishness?"
Li Shangfeng replied,
"There's no help for it. Ever since Huayi Capital publicly and continuously cut positions to take profits on the core main theme of the 'new energy industry chain', the corresponding stock trends have been extremely feeble, continually lagging behind the broader market indices.
Moreover, due to Huayi Capital's influence in the market, many major institutions that were previously heavily positioned in the new energy industry chain have been following the trend and continuously cutting positions.
This has resulted in a severe shortage of buying power along the 'new energy industry chain' main theme.
Coupled with an already weak market trajectory and relatively constrained liquidity, the 'new energy industry chain' line has virtually no rally to look forward to.
Right now, the 'new energy industry chain' line has basically become the main-theme sector experiencing the most severe sell-offs by main-force capital within the arena.
At present, anyone can see that the 'new energy industry chain' main theme has no upward momentum.
Staying behind to continue locking up shares will only result in ongoing losses.
Naturally, as Manager Yang—who previously held heavy positions in this main-theme sector—manages the 'New Energy Industry Growth Hybrid' fund, he has no reason to continue locking up chips in this main theme and allowing the fund's net asset value to suffer consecutive sharp pullbacks.
It's just that having his traders follow the trend to buy core stocks in the 'real estate' sector, continuously tailing Huayi Capital's operation, was something I didn't expect."
Hearing that a competitor within the same company was altering trading strategies in pursuit of superior fund net asset performance, Wang Shujie paced back and forth in the trading room for a few steps before asking,
"Shangfeng, setting aside the influence of Huayi Capital and analyzing purely from the perspective of investment logic and expectations, how do you evaluate the investment cost-effectiveness of the core 'real estate' sector at its current position and market node? Compared to liquor, pharmaceuticals, and white goods, which one is more undervalued and offers better cost-effectiveness?"
Li Shangfeng thought for a moment and said,
"In terms of future certainty and stability, I think the core bellwether stocks in the liquor, pharmaceuticals, and white-goods sectors are definitely superior.
However, in terms of expectation gaps and stock price explosive potential, the core bellwether stocks of the real estate sector—whose industry fundamentals have just begun to reverse and which naturally carry leverage attributes—along with industry bellwether stocks in the coal and steel sectors that benefit from 'supply-side reform' and are already sitting at historical valuation bottoms, will likely surpass expectations and valuations compared to the liquor, pharmaceuticals, and white-goods sector bellwether stocks whose gains have already been partially realized."
"By your logic..." Wang Shujie paused, saying, "we should indeed free up some positions and deploy into core, high-quality bellwether stocks within the real estate, steel, and coal sectors?"
Li Shangfeng said,
"I'm only analyzing from a purely trading perspective, and it might not be entirely correct.
In fact, looking at the current landscape... over the past few trading sessions, the core bellwether stocks in the frequently active real estate, steel, coal, and non-ferrous metals sectors look much more like a standard left-side buying point. There is explosive potential, but certainty is still clearly insufficient.
I think for us right now, whether we maintain our previously established trading strategy or pivot our strategy to free up some positions and diversify investments into industry bellwethers across the core real estate, steel, and coal main-theme sectors, either approach is viable."
"A left-side buying point..." Wang Shujie smiled and said, "Well said. This position certainly looks like a left-side buying point."
"Then we..."
Li Shangfeng asked tentatively.
Wang Shujie pondered and ultimately concluded:
"The market is weak, and a left-side buying point runs a very high risk of being a trap. Since the trends of these major main themes haven't fully formed yet, and various major capital factions within these main themes haven't yet formed a unified bullish trend, let's continue to wait and see.
Once the trend materializes and the right-side buying point is confirmed, making a decision then won't be too late.
Furthermore, although the core hot topics of the past two days and the primary attack direction of internal capital have continuously converged toward sectors like real estate, steel, coal, non-ferrous metals, and construction, the core bellwether stocks in previous sectors like liquor, white goods, pharmaceuticals, and hydropower have not broken their structural support levels either.
Moreover, on the order books of those corresponding core bellwether stocks, there hasn't been any pattern of massive capital continuously withdrawing, heavy selling pressure, or significantly expanding volume.
This indicates that the upward trend of the main-theme sectors where we currently hold heavy positions is still intact.
Furthermore, the internal chip structure has not loosened either.
Since the trend remains, future expectations are still alive, and stock prices haven't fully priced in those expectations yet, then... naturally, we can still continue holding them.
Even under the forceful guidance of Huayi Capital, if the 'real estate' sector becomes the core main theme of market speculation and unleashes a sustained rally, the stocks we currently hold won't lag behind the market by too much.
No matter what... regardless of how subsequent market trends unfold, we still retain a relatively high degree of initiative."
"Understood," Li Shangfeng nodded and replied, "Then let's wait and see how the subsequent market trends evolve."
With that, he turned his attention back to the finalized market order books of the two exchanges.
While the two of them were discussing, the time had reached around 5:00 PM, and the Dragon and Tiger lists for the two exchanges had just been refreshed.
According to the newly disclosed Dragon and Tiger list data,
one could see that the institutional dedicated seat for Huayi Capital that had bought heavily on the list yesterday—namely the Huaxin Securities Shanghai Financial Street Fuxing Road Branch—was still on the list, having bought a total of 2.17 billion yuan worth of funds across popular listed stocks in the real estate, coal, and steel sectors.
Concurrently, this exact seat also appeared on the sell list for today's limit-down stock Do-Fluoride New Materials.
"As expected, I told you so—today's intraday dive definitely wasn't dumped by President Su."
Upon seeing the disclosed Dragon and Tiger list data for the two exchanges, online stock investment discussion platforms instantly erupted with numerous topics discussing the lists.
Among these topics...
Discussions regarding the buying and selling activities of the 'Fuxing Road' seat remained an absolute hot topic.
"Selling 'Do-Fluoride', continuing to increase positions in 'Pingdingshan Tianan Coal Mining'—President Su really seems bullish on the real estate and coal sectors."
"Looking at this setup, it feels like President Su is trying to forge real estate and coal into the liquor and pharmaceutical sectors of the first half of the year. With President Su continuing to buy... this is definitely heading for a sustained, long-term bull market!"
"The 'Foshan faction' dumped quite a bit today; truly lacking in vision."
"Aside from President Su's seat, however, among the stocks listed in the real estate, coal, and steel sectors today, other institutional seats have actually decreased compared to last Friday!"
"It seems institutions still haven't formed a consensus on these core main themes."
"Why does it feel like President Su is carrying the market forward all by himself? The rally has already been sparked, yet these institutions are so cowardly!"
"President Su alone probably can't prop up the sky single-handedly!"
"Overall, on today's Dragon and Tiger lists for the two exchanges, major capital was still in a net-selling state. It's estimated that over the next couple of days, market trends will likely see some fluctuations."
"The profit-taking and stop-loss selling pressure is still far too heavy."
"It all depends on President Su's vision. If President Su can continue increasing positions and buying going forward, a rally will definitely ignite."
"I'm just worried that once President Su stands alone at the top, other major funds will give a wide berth."
"Not at all. The stocks President Su buys generally possess rock-solid fundamental logic. If other funds want to make a play, they can't bypass them even if they wanted to. Moreover... given the influence of President Su's seat, as long as the underlying logic is sound and future expectations are strengthening, we retail investors can help lift the sedan chair even without other major institutional funds lifting it."
"Even if subsequent market trends experience some back-and-forth, at this index level, it certainly can't fall much further."
"Sectors like real estate, coal, steel, and non-ferrous metals pulled back significantly from their intraday highs today, and considerable divergence appeared during the session, but I believe as long as President Su keeps increasing his positions, it shouldn't be a big problem. Even though plenty of people chased highs during the session today, I believe they'll break even soon enough. On the other hand, the 'new energy industry chain' main theme... is truly not looking optimistic!"
"President Su is clearly dead set on cutting positions in the 'new energy industry chain' main theme."
"The core new energy industry chain stock 'Do-Fluoride' hitting its limit-down today really stings a bit."
"President Su's seat didn't actually sell off a large amount of funds in 'Do-Fluoride' today; the ones doing the dumping... were still institutions."
"The 'new energy industry chain' line definitely needs to be avoided for now."
"In a bear market, either you stay out, or if you play, you must follow the hot money and focus on the core market main themes."
"Exactly, either remain in cash or focus on the main themes to trade."
"Although the 'Foshan faction' dumped plenty of goods today, overall, market absorption has been acceptable. I firmly remain bullish on subsequent market trends and firmly follow President Su to go long."
"Tomorrow I'll keep buying 'Pingdingshan Tianan Coal Mining'; I feel this round of the 'coal and non-ferrous metals soaring' rally has only just begun."
"President Su is the market's lighthouse. As long as President Su holds heavy or full positions trading within the arena, just focus on the main-theme sectors where President Su attacks and buy boldly."
"I wonder if anyone else has noticed: the market's overall style is clearly shifting toward large-cap core stocks."
"Large-cap stocks this year are indeed performing much stronger than small-cap stocks."
Accompanied by the discussions among the crowd of retail investors, alongside the private discussions of countless other hot-money syndicates and institutions tracking the 'Fuxing Road' seat, virtually all investors across the entire web and market who were still paying attention to the stock market found their internal expectations—and their performance projections for the future stock market trajectory—slowly shifting regarding the 'mega-infrastructure' and 'black-commodity' main-theme sectors (such as real estate, steel, coal, non-ferrous metals, and construction) and their corresponding core stocks, which Huayi Capital had been continuously increasing its positions in.
Simultaneously, not only mainland capital institutions, but even many Hong Kong-funded institutions in Hong Kong City and foreign capital institutions began gradually casting their gazes toward the frequently active mainland property stocks in the Hong Kong market and the blazing-hot mainland real estate market, where housing prices were surging like a raging prairie fire.
(End of Chapter)