"Old Qu, prepare to build positions and enter the market!"
Su Yi watched the Shanghai Composite Index on the trading room's large screen, which had already fallen to around 2700 points, and instructed Qu Zecai, the trading manager of the 'Huayi Expedition No. 1' fund product.
"General Su, it seems the entire market hasn't stopped falling yet,"
Qu Zecai said with some doubt.
"The Shanghai Composite Index might not hold at 2700 points, and the market's trading volume continues to be weak, with relatively limited liquidity. Looking at the situation... it's estimated there won't be much improvement before the Spring Festival. Isn't it a bit too hasty for us to enter and build positions now? Shouldn't we wait a bit longer?"
Before the market's 'stock market crash 3.0'.
He didn't quite understand Su Yi's investment strategy, which required the entire trading team to hold empty positions and wait.
But now, after the continuous sharp decline in the market over the past half-month, he fully understood Su Yi's decision at the time, and felt that continuing to wait patiently also seemed like a perfectly valid strategy.
"The market's trading volume has now shrunk to around 300 billion,"
Su Yi interjected, saying,
"The continuous sharp decline and shrinking volume already indicate that the market's selling momentum has largely been released. In our investing, sometimes there's no need to be so precise. When many quality stocks in the market have generally fallen to extremely undervalued positions, buying at a price 20% higher or 20% lower doesn't make much difference in terms of future expected returns."
Qu Zecai thought for a moment, feeling that Su Yi's words indeed made some sense, and couldn't help but reply,
"Then from which main direction and target stocks should we start building positions?"
"Old Qu, what do you think?"
Su Yi asked with a smile.
It had been almost a month since the company's fund product issuance was completed and it entered its closed-end operating period.
During this past month.
Although the company's entire trading team had no specific trading tasks, there were many discussions about the proposed main investment themes and targets during the 'stock market crash 3.0'.
Although Su Yi already had plans in mind for the main investment themes and core targets of the 'Huayi Expedition No. 1' fund product.
He had already made up his mind.
But he still wanted to hear Qu Zecai's insights.
Qu Zecai noticed Su Yi's gaze, cleared his throat, and said,
"Based on our team's analysis and some of my personal views, I believe the market currently has strong expectations for a fundamental turnaround.
The core theme with explosive performance expectations in the near future, in terms of certainty, is still the 'new energy industry chain,' especially some upstream resource stocks in the 'lithium battery' sector, which offer the best risk-reward ratio.
Of course, with the real estate market fully recovering now.
The real estate sector is also very worth paying attention to, especially the leading stocks in the real estate industry, which will definitely benefit from the industry's recovery and scale expansion, leading to a surge in performance."
"Anything else?"
Su Yi continued to ask with a smile.
Qu Zecai thought for a moment and continued,
"'Big consumption' is also a very good main theme. According to various consumption data recently released, domestic consumption is actually still very strong, and the consumption sector has historically been a cradle for bull stocks. If we are to make long-term investments, this main theme sector should be unavoidable."
"Hmm."
Su Yi nodded slightly and asked,
"What about specific targets?"
Qu Zecai handed some research reports from the table to Su Yi and said,
"If we determine that our fund product's main investment directions are 'new energy,' 'real estate,' and 'big consumption,' then I believe these core leading stocks, having experienced the sharp decline of 'stock market crash 3.0' and generally fallen to valuation lows, are currently very much worth paying attention to and initiating positions in."
Su Yi took some of the individual stock research reports from his hand and flipped through them.
He found that many of the stock targets identified by the other party for position building overlapped with the targets he had in mind, and for a moment, he couldn't help but greatly admire Qu Zecai.
He could perfectly seize every swing trading opportunity in the market and propose suitable stocks for fund position building at this stage.
That was because he had memories of the future market and knew which stocks would perform well.
But Qu Zecai did not have this ability.
Without a 'rearview mirror,' to still be able to identify a list of target stocks for position building that highly overlapped with his own thoughts, based on current market trends and industry/individual stock research reports amidst a pessimistic sentiment, demonstrated that Qu Zecai's market research capabilities were quite strong.
Of course, to poach him from a renowned domestic asset management institution.
Su Yi also offered him a very generous compensation package.
"There aren't many issues with the selection of targets,"
Su Yi said,
"but we still need to prioritize the individual stock positions."
"General Su means..."
Qu Zecai didn't quite understand Su Yi's intention.
Su Yi said with a smile,
"The trading seat our institution uses is the 'Jinrongjie Fuxinglu' branch trading seat that I used before. In the current market, quite a few funds are keeping an eye on the movements of this seat. We need this seat to generate sentiment for our trading, but at the same time, a surge in trend-following orders will also put us in a passive position when acquiring chips.
Therefore, for the best quality stock chips with the best risk-reward ratio currently available. We need to buy as much as possible and acquire as many low-priced chips as possible before the seat's activities become widely known.
In other words... our fund's first batch of target stocks for position building should be those that we all believe have the best risk-reward ratio and the greatest explosive potential in the future.
As for the others, we can slowly follow up once these stocks have been built into appropriate positions."
"I understand,"
Qu Zecai nodded slightly, thought for a moment, and continued to ask Su Yi,
"Then, according to your meaning, General Su... which stocks should we start with?"
Regarding the specific target stocks for position building, he still wanted to hear more of Su Yi's opinions.
After all, Su Yi was the fund manager of 'Huayi Expedition No. 1' and also had the final say on any changes to the entire investment strategy.
Su Yi said,
"As you just mentioned, in the 'new energy industry chain' main theme, the most explosive potential and most evident market demand expansion still belong to upstream resource stocks in the 'lithium battery' sector.
Among upstream resource stocks, the most obvious price increase expectations and largest demand expansion are for the two major products: 'lithium carbonate' and 'lithium hexafluorophosphate'.
Deriving the logic from these two core products... Prioritizing the establishment of positions in stocks like 'Tianqi Liye,' 'Ganfeng Liye,' 'Duofuoduo,' and 'Tianci Cailiao' is a logical step.
As for the 'real estate' main theme. Due to the business operating model of 'real estate development,' the fundamental improvement and performance surge of related leading companies will lag behind the reaction of real estate prices.
In other words, it is highly likely that in the short to medium term. Housing prices will surge, but the performance of leading real estate companies will not change much.
Therefore, relatively speaking, at this time, it would be more appropriate to invest in related industry chain stocks in the 'real estate' main theme sector, especially those that can immediately reflect changes in demand and quickly impact their performance."
"Real estate-related industry chain."
Qu Zecai thought for a moment and said,
"General Su, are you referring to building materials, cement, steel, home furnishings, white goods, etc.?"
Su Yi nodded slightly and said,
"Yes, in fact, for the entire 'real estate recovery' logic, I am more optimistic about these leading stocks in segmented industry chains that can immediately reflect changes in industry fundamentals and have simpler business models, such as 'Hailuo Shuini' and 'Dongfang Yuhong.' They are both good, and we can focus on building priority positions in them."
"What about the 'big consumption' sector?"
Qu Zecai asked again.
Su Yi replied,
"In the 'big consumption' sector, the area with the most significant expectation difference, most obvious recovery, and most severe valuation suppression currently should be the 'baijiu' sector, right?"
Qu Zecai nodded slightly and said,
"Due to the 'plasticizer' incident in the previous two years, the baijiu industry was greatly affected. Currently, for the entire industry, not only are institutional expectations very low, but retail investors in the market are also not very keen on this sector.
This has led to the valuation of the entire sector being severely suppressed. Leading companies in the industry, such as 'Qianzhou Maotai,' 'Wuliangye,' 'Luzhou Laojiao,' and 'Jincheng Fenjiu,' generally have P/E valuations around 10 times.
Even though the performance of these companies has been very good in the last two quarters, it has not been able to boost market investors' confidence in the baijiu industry's future sustained growth or reshape its valuation."
"This is where the expectation gap lies,"
Su Yi said.
"It is precisely because of market bias that the baijiu sector currently presents good investment opportunities. Once the performance of leading companies in the industry continues to grow and market bias is corrected, these leading stocks will easily experience the result of a 'Davis double-click'."
Qu Zecai said with a smile,
"I think so too."
He himself really liked drinking baijiu, so he had a relatively thorough understanding of this industry and this sector.
Previously, at his last institution.
He had also suggested to the asset management business leaders of the company to increase holdings in the corresponding leading stocks of the baijiu sector, but the leaders did not agree with his proposed investment logic.
Of course, it wasn't just that the leaders didn't agree.
Based on his observations, in the two to three years since the 'plasticizer' incident erupted.
The market had always viewed the baijiu sector with colored glasses, and the valuation level of the entire baijiu sector had never been successfully corrected.
Therefore, when he felt that Su Yi's ideas perfectly coincided with his own.
He was truly happy.
"Then for the investment strategy in the 'big consumption' main theme sector, the primary target for position building will start with the baijiu sector,"
Su Yi said with a smile.
"Such an inexpensive 'Qianzhou Maotai' stock truly represents a rare investment opportunity in market history."
His previous trading model was primarily driven by short-term sentiment.
Therefore, he hadn't paid much attention to the core blue-chip stocks in the market.
But now...
With the company's fund successfully issued and 20 billion in capital in hand.
With such a large amount of capital, he could no longer operate in the secondary market using his previous short-term sentiment-driven speculation methods.
And being unable to operate according to the previous trading model.
He would inevitably have to lean towards blue-chip stocks with greater market liquidity and more stable trends, focusing on medium to long-term investment strategies.
Regarding the so-called debate between speculation and investment, and the distinction between trend investing and value investing...
Su Yi didn't have much resistance in his heart.
For him, as long as money could be made in the market, any investment school or strategy could be employed.
In his understanding, he always believed that there was no absolutely correct path in investing.
Only the most suitable path amidst the market's unpredictable changes.
And what he needed to do was to choose a path suitable for the rapid growth of the 'Huayi Expedition No. 1' fund product's net asset value at the right time.
He didn't mind if his peers in the market categorized him as a speculator or an investor.
"'Qianzhou Maotai' stock, compared to other stocks in the market, in terms of certainty and valuation..."
Qu Zecai said,
"is indeed currently the most worthwhile stock to invest in the market."
"Since that's the case, let's seize the time to build positions,"
Su Yi said.
"The market's pricing mechanism can be wrong for a while, but it won't be wrong forever. The value of 'Qianzhou Maotai' stock will surely be quickly reflected once market investors' perceptions and expectations are gradually corrected. By then... the stock price will most likely not be this cheap."
At this time, 'Qianzhou Maotai' stock.
After experiencing a bull market and three rounds of stock market crashes, its stock price was still at the low point of a year ago, less than 200 yuan, and its market capitalization was less than 200 billion.
Compared to 'Qianzhou Maotai's' future stock price of over a thousand yuan and a market capitalization of 2 trillion.
It was simply incredibly cheap.
Qu Zecai nodded and, at Su Yi's instruction, immediately sent the list of prioritized target stocks for position building that Su Yi had just proposed to the traders in the trading room.
And requested the traders to complete their respective position-building tasks according to the list of targets.
Upon receiving the trading tasks issued by Qu Zecai, the traders quickly tapped on their keyboards, using their operating accounts to buy corresponding stock chips according to the instructions.
And as the entire 'Huayi Expedition No. 1' fund product trading department continued to buy.
The entire market trend was still falling.
As for the main indices, after the Shanghai Composite Index touched the 2700 point level, it almost immediately broke through this integer threshold without significant support.
As for the Shenzhen Component Index and ChiNext Index, their intraday declines, after the Shanghai Composite Index broke through the 2700 point support level.
Had once again plunged to the 5% mark.
It can only be said that it's a good thing the circuit breaker mechanism has now been forced to suspend, otherwise, in an instant, with the market's current trend, another circuit breaker would have been triggered.
Amidst the index's sharp decline, individual stock performance was naturally even more dismal.
Leading stocks in major core themes, popular sectors, and 'SME & ChiNext' growth stocks all suffered heavy losses, with an increasing number of stocks hitting their daily limits.
It seemed that after the continuous shrinking of volume.
Just when everyone thought the market could no longer generate selling momentum.
Under extreme panic sentiment, with continuous stop-loss and forced selling orders being released, the market once again showed a pattern of rapid decline with increased volume.
"Don't hesitate. As long as there are sell orders on the market, be bold and sweep them up with large orders."
Su Yi, seeing the market fall with increased volume, noticed that the traders were too concerned about buying costs while acquiring chips, and their pace of building positions was too slow, so he couldn't help but remind them.
Then, without waiting for a response from anyone.
He sat down at the main control computer in the trading room, opened the fund's master account, and faced the 'Qianzhou Maotai' market, which was plunging downwards, with its stock price already fallen to 187 yuan and an intraday decline rapidly expanding to 4%.
He immediately placed consecutive large orders of 1000 lots, aggressively sweeping up the sell orders on the market.
(End of Chapter)