"Then let's follow your idea and gradually take profits and exit the market," Su Yi said after listening to Hou Baolong. "In the financial market, stock prices always react to expectations. Since previous expectations have been fully realized with the continuous rise in stock prices over the past half year, and there is a strong possibility of a subsequent shift in expectations leading to a decline, it's time to take profits."
According to Su Yi's memories, He knew that this was not the time for a full-scale explosion of 'new energy vehicles.'
Due to the limitations of 'lithium battery' technology, new energy vehicles currently lack sufficient competitiveness against traditional energy vehicles in the market.
In other words, relying on market self-competition alone, the entire new energy vehicle market cannot currently be opened up.
Over the past year...
Almost all new energy vehicle manufacturers and their associated supply chain companies have survived primarily on national subsidy policies.
Once the subsidy policies are phased out, or the subsidy approval system becomes stricter, then, given the inability to compete freely with traditional energy vehicles, demand across the entire new energy industry chain will naturally shrink temporarily, corresponding production capacity will be reduced, and the performance of associated supply chain companies will also decline.
Of course, temporary difficulties do not change the fact that this technological route is the result of the major trend in the future development of the automotive industry.
However, in the face of foreseeable and imminent industry challenges, As asset management investment institutions, there is indeed no need for them to continue holding on and endure subsequent industry difficulties, like many enterprises in the sector, especially after having already made significant profits.
And before expectations shift, while the industry is still at a high point of prosperity, supported by strong national policies, Making decisive profit-taking and promptly cashing in profits is the truly wise move.
The so-called 'value investing' in the financial market does not mean avoiding market timing, but rather investing in the right stocks at the right time.
Only in this way can one capture excess market returns and become an outstanding investor.
"Currently, the total market value of our holdings in the 'new energy industry chain' accounts for about 15% of the total holding market value of our 'Huayi Yuanzheng 1' fund product," Hou Baolong paused and continued, "If we fully take profits on this main line, I would like to transfer all of this 15% position space into the Hong Kong stock market. Does Mr. Su have any suggestions on this?"
"Wherever there's an opportunity, we invest there," Su Yi said. "We don't need to be restricted to one market, nor to a specific industry. We are not a public fund company, nor an industry investment fund. Being flexible and constantly seeking relatively certain investment opportunities with significant expectation gaps in the market is what we should be doing.
I think your idea is fine. Since the opportunities in the Hong Kong stock market are clearly greater than in the A-share market, then it's appropriate to shift funds to the Hong Kong stock market.
Our ultimate goal is to increase the fund's net asset value and help our company and the fund investors who trust us to make money. Under this premise... any strategy that benefits this condition is correct in my opinion."
Through the discussion just now and their analysis of some targets for subsequent investment strategies, Su Yi still completely trusted the abilities of Hou Baolong and Wang Yifan.
At least if he hadn't been reborn and hadn't experienced the future development of the financial market, then, standing at this current point in time, His grasp and selection of investment opportunities in many thematic sectors would most likely be inferior to theirs.
Moreover, he also knew...
Executing the investment strategy they formulated.
It would indeed be beneficial for the 'Huayi Yuanzheng 1' fund product to achieve better net value returns in the next six months.
And in the subsequent market development, The three major investment themes consistently favored by the two of them – 'commercial real estate development', 'coal', and 'security camera lenses' – along with their respective industry leading stocks, indeed experienced a sustained bull market trend independent of the broader market.
Among them, according to his memory, Stocks such as 'Hengda Dichan', 'Rongchuang Dichan', 'Longhu Dichan', 'Jincheng Meiye', 'Dahua Gufen', and 'Haikang Weishi' even saw a magnificent tenfold surge over two years.
After the three had discussed and finalized the ultimate investment strategy,
On Thursday, July 28th, the trading department of the 'Huayi Yuanzheng 1' fund product began adjusting its positions.
Under Hou Baolong's direction, after the market opened, traders from various groups continuously reduced and sold stocks related to the 'new energy industry chain.'
And due to the large position size of the 'Huayi Yuanzheng 1' fund product, Coupled with relatively limited market liquidity during the bear market, Although the traders did not sell stocks in a particularly aggressive manner during their operations, it ultimately had a significant impact on the weak market.
After a day of trading, Due to the continuous selling by the major fund product 'Huayi Yuanzheng 1,' By the close of the market, the 'new energy industry chain' main theme, which had been relatively strong, including associated sectors like new energy vehicles, lithium batteries, and charging piles, all saw significant declines.
Furthermore, concept stocks held by 'Huayi Yuanzheng 1' with smaller market capitalizations, such as 'Tianci Cailiao', 'Yinghe Keji', and 'Dangsheng Keji', even hit their daily downside limits.
"What's going on? There's no negative news in the market today."
After the close, seeing the entire 'new energy industry chain' main sector and its core concept stocks all showing significant declines, while the three major indices—Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index—and most main stocks where funds were concentrated in the two markets closed in the black, fund manager Yang Shengfan of Nuo'an Fund Company, also an investment institution in the 'New Energy Industry Growth Mixed Fund Product' in Shanghai, was clearly confused.
"This counter-trend sharp decline, something's not right!"
"Could it be market rumors about negative news, such as changes to 'new energy vehicle' subsidy policies possibly next year, leading to a shift in market expectations for investments in the 'new energy industry chain' main direction..." responded Bao Yongquan, the trading team leader. "And that's why today's 'new energy industry chain' related stocks saw a sharp decline against the trend?"
"Haven't the rumors about the subsidy policy tapering off already been confirmed as false?" Yang Shengfan frowned, pondered for a moment, and speculated, "It shouldn't be this issue causing the sharp decline. After all, this news has been circulating for many days, and if the market were to react, it would have reacted long ago."
"Then what could be the reason?" Bao Yongquan thought carefully for a while longer and said, "Could it be that a fund with heavy holdings in this main sector took profits, or was forced to stop losses and liquidate?"
"The reason you mentioned is entirely possible," Yang Shengfan responded. "Today, several stocks in the 'new energy industry chain' main direction hit their daily downside limits. If today's sharp decline in this main sector is due to associated funds selling off, then some traces should be observable on the trading floor through the 'Dragon and Tiger List' data of these limit-down stocks."
(End of Chapter)