Watching the stocks of 'Hengda Real Estate,' which currently had a market capitalization of only around 30 billion, and 'Rongchuang Real Estate,' with a market capitalization of over 10 billion, as well as 'Dahua Technology,' 'Hikvision,' and other stocks that had been cut in half from their peak in last year's bull market, Su Yi could hardly contain his excitement.
Because he knew that with the continuous improvement of the industry's fundamentals, the performance of these leading enterprises would surge several times, even ten times, in the next one to two years.
This would also cause the prices of these stocks, with the growth in performance, to be frantically driven up to astonishing levels by surging public funds, as well as speculative and active market investors.
"Huh... I feel like there's capital building positions and accumulating shares during trading hours!"
As the flagship fund product 'Huayi Expedition No. 1,' managed by Su Yi, continued to buy corresponding stocks such as 'Dahua Technology,' 'Hikvision,' 'Shenhua Energy,' 'Jincheng Coal Industry,' 'Hengda Real Estate,' and 'Rongchuang Real Estate'.
In Magic City, at Huarui Fund Management Company, in the trading department of the flagship fund product 'Huarui Premium Growth No. 1,' which held a considerable position in the security camera sector including 'Dahua Technology' and 'Hikvision,' Jia Yongxiang, the fund trading team leader, stared at the continuously surging volume and rising stock price of 'Hikvision,' his eyes clearly showing surprise: "In just ten minutes, we've already seen multiple active buy orders of 3,000 lots. I wonder which source of capital is building positions?"
"It's not just 'Hikvision' alone." Amidst Jia Yongxiang's surprise, fund manager Song Shaopu smiled, his gaze shifting to the entire 'security camera' conceptual sector.
He saw that the net capital inflow into the entire sector was continuously increasing significantly as market trading time progressed, and he said with a smile, "It seems some industry institutions have taken an interest in this sector. Our previous layout in this sector wasn't in vain."
"It appears that major capital is continuously building positions and buying," Jia Yongxiang said firmly after observing for a while longer. "General Manager Song, shouldn't we further increase our positions at this time?"
"Naturally, we should," Song Shaopu nodded and said, "If someone is lighting the fire and pulling the market up, then we'll follow suit and stir up the popularity of this sector, thereby attracting more capital's attention. This is very beneficial for the continued fermentation of this conceptual sector's trend. As long as we can attract more large funds to gather and speculate, as long as we can make the trend of this conceptual main sector emerge, it will be very advantageous for our fund."
"Understood," Jia Yongxiang replied.
Immediately, he turned to direct the various trading teams in the trading room to quickly follow suit and buy, increasing the fund product's holdings in the 'security camera' conceptual sector.
Of course, at the same time...
The major capital institutions focusing on sectors such as 'coal' and 'real estate' also noticed this unusual movement in the market.
Even many public and private institutions focusing on the Hong Kong stock investment market also felt the comprehensive unusual movement of mainland property stocks in the Hong Kong stock market.
"In just one hour, the trading volume is already double that of yesterday."
Also in Magic City, within an institution called 'Xinuo Private Equity Fund Company,' Men Xingtao, the fund product manager of 'Xinuo Future No. 1,' stared at the unusual movements of mainland property stocks such as 'Hengda Real Estate' and 'Rongchuang Real Estate' in the Hong Kong stock market.
He smiled and said, "It seems that capital has indeed entered the real estate sector."
"You can't say it's the entire real estate sector, can you?" Trading team leader Huang Qingyun observed the unusual market activity for a while and said, "Currently, only mainland property stocks are showing unusual movements. Related real estate stocks in Hong Kong show no unusual activity, nor any signs of capital building positions. The obvious unusual movements are mainly in 'Hengda Real Estate,' 'Rongchuang Real Estate,' 'Longhu Real Estate,' 'Jingcheng Holdings,' and a few other real estate companies that have expanded significantly in the mainland market in the past one or two years."
"That's right," Men Xingtao nodded and said with a smile, "The surge in housing prices this round is mainly a surge in mainland housing prices. There doesn't seem to be much movement in Hong Kong, right? If we look at the current housing price trends in various-tier cities, these mainland property companies that have expanded significantly in the past one or two years are naturally the core beneficiaries.
The capital choosing this line for a breakthrough is completely consistent with our previous predictions. And this validates our previous market research and strategic judgment. I believe that as more and more capital realizes the opportunity for revaluation of mainland property stocks and their huge explosive potential, the core stocks in this line will surely show a very spectacular market trend."
"Since the logic has been verified, and major capital is continuously building positions and following suit," Huang Qingyun said, "shouldn't we also follow up with positions and increase our investment in 'mainland property stocks' and their weighting? In the past half year or so, housing prices in various-tier cities have been continuously surging. The real estate market is getting hotter and hotter, whether for investors or actual home buyers. The desire to buy is continuously rising.
And this across-the-board price increase and sustained hot situation seems to be spreading across the country. However, while the real estate market is developing in full swing, real estate stocks in the market are already in a relatively extreme valuation range, at historical low stock prices. This situation... is inherently abnormal.
Now, since capital has identified this abnormal phenomenon and is entering in a big way, I think it's also the right time for us to increase our positions, affirm our previous investment strategy and logic, and seize the profit from this wave of mainland property stock valuation repair, and even the full-blown expectation and performance growth phase of the market."
"Good!" Men Xingtao nodded, his eyes growing brighter, and immediately said, "Then there's no need to hesitate any longer. Let's significantly increase our positions. It seems this capital should not be the active short-term speculative capital in the market. As long as major capital continues to enter and speculate, then... I believe this main investment line of mainland property stocks will surely emerge in the Hong Kong stock market."
At this time, the overall valuation level of mainland property stocks and their corresponding stock performance in the Hong Kong stock market were far behind the A-share market, and also much lower than the industry leading stocks listed in the A-share market such as 'Kewan Real Estate,' 'Poly Real Estate,' and 'Gemdale Group.'
This created an opportunity for valuation repair between the two markets, and even a revaluation of mainland property stocks.
As many other private and public funds followed suit...
With the massive capital flow of the flagship fund product 'Huayi Expedition No. 1,' managed by Su Yi, continuously buying, the stock prices of core stocks such as 'Dahua Technology,' 'Hikvision,' 'Shenhua Energy,' 'Jincheng Coal Industry,' 'Hengda Real Estate,' and 'Rongchuang Real Estate' showed increasingly larger gains as market trading time continued, attracting more and more attention from the entire market.
Even with the influx and follow-up of funds from all sides, before the midday closing time, the intraday trading volume of these stocks had already exceeded more than double their previous average intraday trading volume.
Of course, their stock prices also climbed by more than 5%.
(End of Chapter)