"President Su, there are outside funds following our lead and rushing to grab shares."
Noticing that various funds were flooding into the real estate, coal, steel, and non-ferrous metals sectors across the market, Hou Baolong, the fund manager inside the main trading room of the 'Huayi Expedition No. 1' fund at Huayi Capital, hurriedly reported to Su Yi, who was watching the large trading room screen from behind.
Su Yi nodded slightly and replied,
"Pay no attention to the following funds. Just keep buying shares according to our own rhythm. The stock chips for the core stocks in each main theme are basically at low levels right now, so we don't need to worry too much about the cost of building positions."
For stocks expected to multiply several times or even tenfold in the future, a cost difference of one or two percentage points—or even ten to twenty percentage points—in building a position was completely insignificant.
"Manager Hou, President Su..."
While Su Yi was speaking, Wang Yongkang, the head of the trading team primarily responsible for building positions in the Hong Kong stock market, immediately reported,
"On the order books of multiple mainland property stocks where we are aggressively building massive positions—such as China Evergrande, Sunac China, Logan Group, and Seazen Holdings—another major pool of capital has been bidding and competing with us for shares ever since the afternoon market opened.
Coupled with the fact that liquidity in the Hong Kong stock market is quite limited, if we don't continue to push prices higher and absorb shares at a market premium right now, our position-building timeline will likely be even longer than expected."
"Then push the prices up and buy," Su Yi replied without the slightest hesitation. "I just said, at this stage, don't worry too much about the cost of building positions. Whether our final average position cost is 5%, 10%, or 20% higher than the strategy we initially formulated, it doesn't matter.
Our goal is to first secure the shares of these high-quality stocks that possess strong explosive potential for the future.
At the same time, we are using this massive position-building opportunity to ignite a wave of market-making profits, attracting more active market capital, long-term investment funds, and numerous major institutional funds into these major themes.
We want to make more capital in the market realize the investment opportunities within these key areas.
Only by doing this will there be new capital coming in to lift our sedan chair after we finish building our positions, allowing us to reap the corresponding excess market profits."
"Understood."
After hearing Su Yi's words, without waiting for Hou Baolong to respond, Wang Yongkang acknowledged the order instantly.
He immediately directed the traders in his team to continue aggressively buying shares at market prices, continuously injecting capital to drive up the stock prices of mainland property stocks in the Hong Kong stock market.
As the 'Huayi Expedition No. 1' fund continuously poured capital into the market, alongside the continuous buying by the traders, the real estate sector's market performance in both the A-share and H-share markets began to heat up dramatically in the afternoon.
At 1:15 PM, in the Hong Kong stock market, four core stocks—China Evergrande, Logan Group, Sunac China, and Seazen Holdings—all surged by over 8%, and market attention skyrocketed at lightning speed.
At the same time...
In the A-share market, a slew of real estate stocks such as Poly Real Estate, China Vanke, Gemdale Group, Greenland Holdings, and Financial Street also experienced massive surges.
As the real estate sector across both markets continued to attract capital and the stock prices of corresponding core stocks soared, many resource concept stocks in the 'black series' resource sectors—such as steel, coal, and non-ferrous metals—which had been hotly discussed by various hot money groups during the midday break, also experienced rapid and unusual movements.
At 1:27 PM, in the Hong Kong stock market, China Evergrande surged by over 10%.
This was the first time in two years that the stock's intraday increase on heavy volume exceeded 10%.
Simultaneously, in the A-share market, Gemdale Group shot straight up in a vertical line, with its stock price heading straight for the daily limit up.
Faced with the massive anomalies in the real estate sectors across both markets, and the pattern of core industry stocks gaining over 10% intraday or hitting their daily limits, whether they were investors watching and trading in the Hong Kong market or participants in the A-share market, everyone's gaze was now concentrated on the real estate sector.
"Could it be that the east wind of soaring housing prices in cities offline has finally blown into the stock market's real estate equities?"
As the real estate sectors across both markets continued to surge and corresponding property development stocks skyrocketed, someone expressed their emotion on a forum gathering retail investors across the web.
"It was worth my six-month lurking; it's finally exploding."
"In major offline cities, housing prices have risen by nearly 30% over the past half year. I told you so... real estate stocks were bound to rise sooner or later. Haha... I didn't expect it to finally explode today."
"Isn't it said that the performance of real estate stocks lags behind the rise in housing prices? The sales performance growth brought by this year's housing price increases shouldn't be reflected in the performance of real estate stocks this year, right? Logically... the performance of these real estate stocks will only be better reflected tomorrow."
"What does lagging performance matter? As long as there are expectations."
"Right, right. In stock trading, aren't you trading expectations?"
"Anyway, compared to the trend and increase of offline housing prices, today's real estate stocks are still at a low level. Just knowing that is enough. Following up at this point will most likely make money."
"Hard to say. The market is in a bear market right now, and the capital entering today is mostly one-day speculative short-term money."
"Compared to other consumer sectors, doesn't it feel like the valuation of the real estate sector isn't cheap? And judging from the fundamentals, property stocks like China Evergrande, Seazen Holdings, and Sunac China have very high debt ratios; the asset quality isn't great."
"With housing prices soaring, isn't high debt and leverage a good thing? That's the only way performance has elasticity!"
"But is the rise in housing prices sustainable?"
"That's hard to say, but at least the current housing market is red-hot, right?"
"Stock trading still requires a certain forward-looking mindset. Being red-hot right now doesn't mean it will be red-hot next quarter. I feel that housing prices everywhere are already quite high, and there's hardly any room for a massive rise. The elasticity of real estate stocks compared to housing prices should be lower."
"I don't think we should be pessimistic."
"Even though the broader market has been falling over the past half year, the entire real estate sector hasn't dropped much."
"China Vanke even hit a historical high."
"It's not just the real estate sector showing anomalies; the steel, coal, and non-ferrous metals sectors are also moving, and the net inflow of funds into these major sectors continues to grow."
"Could the 'coal dances and metals surge' market trend be coming?"
"Resource stocks have indeed been dormant for a long time; they ought to have an oversold rebound."
"I just wonder what the sustainability will be like!"
While numerous retail investors across the internet stared at the market ticker, still hesitant and skeptical about the sustainability of the rally...
At 1:43 PM, Pimei Energy suddenly flashed consecutive major active buying orders at the 100,000-share level.
Immediately following that moment...
At 1:45 PM, this small-cap coal stock shot straight up from around a 2% gain to its daily limit up, and was instantly locked tight by massive buy orders.
Subsequently, following the limit-up of Pimei Energy, a string of coal stocks—such as Yanzhou Energy, Jincheng Coal Industry, and Shaanxi Coal Industry—rapidly climbed on explosive volume.
While the coal resource sector experienced a comprehensive anomaly, the non-ferrous resource sector and steel sector simultaneously showed explosive upward momentum.
At 1:47 PM, Bayi Steel and Hualing Steel hit their daily limits on explosive volume.
At the same time, steel stocks sitting at historical lows—stocks whose prices had already been slashed in half or even cut to the bone compared to the 2015 bull market, such as Yuzhou Steel, Shagang Group, and Shougang Group—all surged by over 5%.
After that, at 1:53 PM, within the non-ferrous metal sector, resource stocks like aluminum, copper, zinc, and silver also exhibited explosive surges.
Of course, amidst all this—even though the non-ferrous resource sector continued to surge and buying orders poured into resource stocks—upstream resource stocks related to 'lithium batteries' still bucked the trend and declined, receiving very few active buying orders.
"Haha... It worked, it worked!"
At 2:00 PM, seeing that several stocks like Hualing Steel, Bayi Steel, Shenhuo Co., Pimei Energy, and Yungui Copper had locked their daily limits, Li Jinshi—who had led the main offensive force in the market within the 'Foshan faction' major hot money group chat—finally breathed a sigh of relief and laughed out loud in the chat:
"Just as I expected, market sentiment has been ignited, and the sustainability of the rally... has also been sparked."
"Yeah," Chen Guiyun responded, "We should be able to ride a wave of market momentum."
"The linkage among sectors like coal, non-ferrous metals, and steel is still very strong," Liao Guoxiang said with a smile. "Once you create the money-making effect in one sector, all the other sectors rise with it."
"It's mainly because large-cap heavyweight stocks like Shenhua Energy, Jincheng Coal Industry, China Baowu, HBIS, and Chalco already accumulated some bullish sentiment during the morning session," Li Jinshi said. "Once the market has expectations, naturally the rally becomes easy to play."
"Right, once there are expectations, capital will follow when you ignite the fire," Chen Guiyun replied. "I wonder who the sacred deity was that aggressively targeted the core stocks in 'black series' resource sectors like coal, non-ferrous metals, and steel this morning. But that buying strength is genuinely impressive; at least they didn't drop the ball when we lit the spark."
"Now the retail investors' sentiment of chasing highs has been ignited," Liao Guoxiang said. "We can relax just a bit."
"Aside from sectors like coal, non-ferrous metals, and steel..." Chen Guiyun paused and added, "The real estate sector is also fiercely strong today!"
"It seems the true core main theme of the market isn't the 'black series' resource theme," Liao Guoxiang pondered for a moment and continued. "It seems to be the 'pan-real estate' theme."
Li Jinshi stared closely at the market screen for a while and said, "Turns out it really is. Today's massive gainers are basically real estate supply chain stocks. Right now... sectors like cement, architectural decoration, and whole-house customization are also exploding in a concentrated manner. Moreover, in the Hong Kong stock market, mainland property stocks are experiencing an all-out surge."
"Could it be that the offline real estate east wind has finally blown into the stock market?" Chen Guiyun said.
Li Jinshi thought for a moment and replied, "That's uncertain, but... for us, it's ultimately a good thing. With supply-side reforms riding the real estate east wind, expectations are more than enough. The shares we bought today and the sentiment we sparked will definitely make a profit under the stimulus of these two east winds."
"That's true," Chen Guiyun nodded, sighing, "It's been a long time since I've traded a rally this smooth."
Over the past few months, the entire market had been garbage time, lacking prominent continuous hotspots, and no major capital was willing to seriously manipulate the market to create a sustainability effect. Now, this market ecosystem seemed to be changing.
While the core figures of the Foshan faction were discussing privately...
Inside the 'Yuhang faction' major hot money group chat, Zhao Qiang looked at the 'coal dances and metals surge' market and was clearly somewhat surprised.
He had thrown all his main capital into the core stocks of the real estate sector. He completely hadn't expected to have his thunder stolen by the coal, non-ferrous metals, and steel sectors.
"Brother Sun, the market's main themes feel a bit scattered," Zhao Qiang said worriedly. "In a bear market, market liquidity is already extremely limited. Now that major capital is attacking multiple main themes simultaneously, and market speculative sentiment is diverging across multiple themes, that's hardly a good thing."
"Why do you say the main theme is scattered?" Sun Chengyu replied with a smile.
"Isn't it?" Zhao Qiang said. "Originally, it should have been a dual-market linkage with the core main theme focused squarely on real estate. But now... instead, 'coal dances and metals surge' has become the core market hotspot. Although real estate sector sentiment is still fermenting, the price gains of the trailing stocks are clearly starting to lag behind."
"At the start of a main theme's explosion, it's only natural for the leading stocks to rise first," Sun Chengyu said. "As long as sentiment is still fermenting and following funds continue to pour in, there's no need to worry. Furthermore, while the main theme looks scattered... it's actually all revolving around the real estate sector. Right now, the cement and architectural decoration sectors are also moving. I think this is a good thing; the more sectors and stocks linked around the real estate sector, the more it can support the prolonged continuation of the main theme rally."
"I hope so," Zhao Qiang let out a gentle sigh.
"Don't worry," Sun Chengyu paused and added, "Today's dual-market linkage in the real estate sector was so rapid, and the volume of attacking capital was so massive. Coupled with the fact that a few days ago, the market-favorite major fund 'Huayi Expedition No. 1' substantially reduced its positions and took profits on the 'new energy industry chain' main theme, I have a suspicion... this might be the handiwork of that President Su from Huayi Capital."
"Holy crap..." Hearing Sun Chengyu's speculation, Zhao Qiang let out a gasp of astonishment. "No way? If it really is President Su's handiwork, then this market rally is going to be worth watching."
"I'm only guessing," Sun Chengyu said. "The market-manipulating style feels a bit similar. However... if today's intraday rally and sentiment ferment fiercely, maybe after the market closes, we'll be able to find some clues of President Su's trading from the post-market Dragon and Tiger List data."
Zhao Qiang nodded and said, "Then I truly hope today's market anomalies were orchestrated behind the scenes by Huayi Capital."
Today's Huayi Capital had completely replaced the influence that Zexi Capital once held in the financial market.
If everyone confirmed that this wave of market rallies was orchestrated behind the scenes by Huayi Capital, the group of following funds in the market would clearly exceed expectations.
It would also significantly help the further fermentation and expansion of the market's main theme rally, thereby amplifying the market's money-making effect and highly likely triggering a continuous rebound rally of no small magnitude right in the middle of a bear market.
(End of Chapter)