"Regardless of whether it is or not, looking at the current market trends, a short-term rebound rally can be established," Sun Chengyu said. "Furthermore, the core theme centered around the real estate sector has also been confirmed by various following funds in the market. There's an overwhelming probability that our newly established positions today will be able to turn a profit and be sold off tomorrow."
His expectations for a weak rebound rally in the middle of a bear market were relatively low; as long as he made money, it was fine.
"Even so, I still hope the rally can go a bit further," Zhao Qiang said. "Actually, regarding the overall market expectations, they aren't bad at all. As long as the sentiment and confidence of market investors can be sparked, then... I feel the market should have some decent performance in the remaining months of the second half of the year.
And from a technical perspective...
Following the sharp pullback at the beginning of the year, the market index has had sufficient time and space for correction.
Additionally, the final two quarters of the second half of the year are traditionally the periods when mutual funds across various systems adjust their positions, trade aggressively, and vie for year-end rankings.
Under this scenario, it's actually very suitable for staging a rebound rally.
Anyway, I am not pessimistic about this rebound. As long as the speculative logic of the 'real estate chain' remains sound, and housing prices across cities offline continue to rise.
Then, this wave of the market is worth playing, and it's worth taking a heavy position.
Of course, if we could catch a glimpse of President Su from Huayi Capital amidst today's market anomalies, the subsequent rebound rally would naturally be even more worth anticipating."
As the two of them spoke...
Market trading continued to advance, and the rebound in the market also persisted.
At 2:18 PM, within the real estate sector, major core property stocks like China Vanke, Poly Real Estate, and China Merchants Shekou all saw their gains exceed 7%. On the order books, massive buy orders of over 10,000 shares appeared frequently as they aggressively grabbed shares. Meanwhile, several small- and mid-cap real estate stocks such as Pudong Jinqiao, Yuexiu Development, and Jinke Properties hit their daily limits.
At 2:25 PM, stocks in the architectural decoration and building materials industry sectors also climbed higher. Stocks like Anhui Conch Cement, Tianshan Cement, and BNBM surged by over 5%, while small- and mid-cap concept stocks such as The Three-Tree, Yuhong Waterproof, Sofia Home Collection, and KUKA Home all raced to their daily limits.
At 2:32 PM, the steel, coal, and non-ferrous metals sectors continued to lead the gains. Among them, Shanxi Coal Industry locked its daily limit, while stocks like HBIS, Shagang, and Shougang all surged by over 5%.
At 2:37 PM, Yungui Copper locked its daily limit, and the active capital rushing in to follow the trend grew larger and larger.
"Holy crap, this really is a 'coal dances and metals surge' market!"
Seeing that the overall market trend had completely shifted into a red-hot rebound rally led by real estate and black-series resource stocks, many retail investors gathered on major online stock investment and communication forums couldn't help exclaiming.
"Are there any positive catalysts for black-series resource stocks? They're literally skyrocketing like crazy."
"There are no explicit positive catalysts. The only catalyst is that the 'supply-side reform' continuously promoted by the state is still considered an expectation."
"What about real estate, then? Why is it rioting?"
"It feels like the crazy surge in the real estate sector was triggered by mainland property stocks in the Hong Kong market, right?"
"Why do I feel like the A-share and H-share markets are linked? But the logic behind the real estate sector's riot should still be simple—just look at how high housing prices in major cities offline have risen."
"Aside from first-tier cities like Shanghai, Shenzhen, Beijing, and Guangzhou, haven't prices pretty much stayed flat elsewhere?"
"Yuhang has risen by nearly 50% over the past six months, and you call that 'staying flat'?"
"But currently, major institutions don't have good expectations for real estate. No one thinks this round of price hikes can last long; after all, regulatory oversight is still in a relatively high-pressure state."
"Hasn't regulation relaxed quite a bit compared to before?"
"It's mainly because the stock market is getting more and more depressed, completely failing to attract off-market capital. Coupled with the central bank continuously loosening liquidity, it has caused all active off-market liquidity to flow into the housing market."
"Regardless of industry fundamental expectations, from my perspective... the overall valuation of the real estate sector is quite low."
"This is a bear market; which sector's valuation isn't low?"
"As long as there's capital speculating and major funds manipulating the market, why overthink it? Just follow along and trade."
"That's true. Following major capital to buy is never wrong. Anyway, I've already thrown half my position in; I'm just waiting to see if this 'coal dances and metals surge' market can continue."
"The market volume has exploded a lot today; it feels like there's an overwhelming probability of sustainability."
"But the broader market index hasn't risen much!"
"Duh, the market only has this much capital right now. Sectors like coal, non-ferrous metals, steel, architectural decoration, building materials, and real estate have sucked up all the liquidity from other sectors, making the performance of other market sectors even more anemic. Under this circumstance... the index naturally won't see much of a gain."
"Indeed, take the 'new energy industry chain' main theme for example; its performance today was extremely weak."
"The reason the 'new energy industry chain' main theme is walking so weakly is mainly due to the suppression caused by the massive position reduction from the institution Huayi Capital. No major capital dares to go in and manipulate the market there, right?"
"Yes, from this you can tell that President Su's influence is no joke!"
"For a short time, there definitely won't be any market momentum for the 'new energy industry chain' main theme."
"It feels like all active capital in the market is flowing into coal, non-ferrous metals, steel, real estate, and construction sectors. The following effect is truly strong!"
"It's great. Being able to form a sector effect and a divergent sentiment trend is the only way this rally can have sustainability!"
"It feels like there's a lot of major capital following into these major sectors today."
"In the real estate sector alone, the net inflow of major capital has already reached the 35 billion scale."
"I remember in the past, the real estate sector was always linked with the 'major financial' sector. Why aren't the two linked anymore? Even as the real estate sector rises, major financial sectors like banking, insurance, and securities keep falling."
"When market liquidity is abundant, they are naturally linked. But when market liquidity is extremely limited, and the volume of active capital in the arena cannot support the linkage of multiple main themes, preventing the entire market from forming a broad-based rally, these two main themes will not form a linkage phenomenon."
"Oh wow, the number of limit-up stocks in the entire real estate sector is approaching ten. Absolutely awesome."
"Even though the market isn't seeing a broad-based rally today, such a strong localized market trend is still rare!"
"It's not just A-shares; right now in the Hong Kong market, the intraday gains of three stocks—China Evergrande, Sunac China, and Seazen Holdings—have all exceeded 10%."
"The Hong Kong stock gains of China Vanke have also exceeded 10%."
"Hehe, it looks like the real estate sector is about to stage a massive market rally."
"Holy crap, awesome! Look at China Fortune Land Development; it has a direct 1-million-share buy order sealing it straight to the daily limit!"
"Market sentiment is getting hotter and hotter. Going all-in on real estate right at the tail end of the session."
"The net inflow of major capital into the entire real estate sector has already exceeded 3.5 billion. Holy crap... are they going to hit the limit up collectively? This kind of market is truly rare this year."
"I wonder who ignited this wave of the 'real estate' market today; truly awesome."
"Haha, finally a red day! After half a month of consecutive losing days, I hope this wave can let me break even. Once I break even, I'll stop trading and resolutely exit the stock market."
Amidst the fierce discussions and rapid following of countless retail investors across the market...
During the final half-hour of the tail end of the session, daily hot sectors with continuous inflows of major capital—such as coal, non-ferrous metals, steel, real estate, and construction—saw their gains grow larger and larger.
The corresponding core stocks and small-cap concept stocks showed increasingly aggressive market patterns, with an expanding number of limit-up stocks and growing net inflows of major capital.
Finally, as 3:00 PM arrived and the two stock exchanges welcomed the market close...
Although the three major indices—the Shanghai Composite, Shenzhen Component, and ChiNext—did not see intraday gains exceeding 1% and merely closed with medium-sized bullish candles, the core sectors of coal, non-ferrous metals, steel, real estate, and construction ultimately settled with gains of over 2% across the board.
Among them, the real estate sector surged by over 4.5%, with more than 17 stocks hitting their daily limits within the sector.
Furthermore, two real estate bellwether stocks with market caps in the hundreds of billions—China Vanke and Poly Real Estate—closed with gains exceeding 8% each, just a step away from the daily limit.
As for the Hong Kong market...
When 4:00 PM arrived and the Hong Kong market closed, mainland property stocks across the board also exhibited an all-out surging trend.
Moreover, the three mainland property stocks—China Evergrande, Sunac China, and Seazen Holdings—all achieved intraday gains of around 12%.
"Today's market... trading it feels truly gratifying!"
Seeing in the closing results that property stocks in both markets had surged across the board, Meng Xingtao, the fund manager of the 'Xinuo Future No. 1' fund product at Xinuo Private Equity in Shanghai, visibly gathered a rich smile on his face and continued: "Market movements like this should indicate that the real estate sector's rally has officially kicked off."
"Indeed!" Beside Meng Xingtao, Huang Qingyun, the head of the trading team for the 'Xinuo Future No. 1' fund product, also wore a full smile. "Manager, thanks to the soaring property stocks in both the A-share and H-share markets, the net value of our fund product surged by over 6% today, and our year-to-date net value curve has finally turned from a loss into a positive return."
"Mmm." Hearing Huang Qingyun's words, Meng Xingtao smiled and nodded, saying, "I knew that as housing prices in various cities offline continued to rise, this speculative east wind would definitely blow into the financial market, landing on the real estate sector, which was still in an extremely undervalued state. Sure enough... this proves that the strategy we formulated earlier was correct, and it shows that value investment is never absent—it's only late."
"Yes," Huang Qingyun replied. "Today's market movement instantly pushed the real estate sector to the forefront of market discussion hotspots. I believe that as more and more capital participates in the real estate sector, and as everyone discusses this sector and its corresponding mainland property stocks more and more, even more capital will realize the enormous investment value and explosive potential of this main theme."
"There is no doubt about that," Meng Xingtao said. "Capital always chases profits, and the investment value of this sector will definitely be continuously mined once capital congregates."
"However, the capital that actively drove up prices today is truly awesome," Huang Qingyun paused and added. "It literally ignored any selling pressure on the order book and pushed straight upward in one go. Just for those three stocks in the Hong Kong market—China Evergrande, Sunac China, and Seazen Holdings—this market-manipulating capital scooped up nearly 1.5 billion yuan worth of shares within a single day."
"Without that kind of aggressive play style, you can't create this kind of market trend," Meng Xingtao said. "And judging from the traces of market manipulation and price-pushing, the capital attacking the A-share real estate sector and frantically gobbling up core property stocks like Poly Real Estate and China Vanke is likely the exact same capital buying up mainland property stocks in the Hong Kong market on a large scale. Within a single day... buying billions of yuan worth is truly a massive stroke."
"With that kind of capital buying volume, we can be certain it's a major institutional player in the industry," Huang Qingyun said with some puzzlement. "Which institution could be buying so wildly and heavily increasing its positions in real estate sector shares?"
"I don't know," Meng Xingtao shook his head. "You can't tell just from the order books alone."
Huang Qingyun thought for a moment and said, "Judging by the momentum of the price push and such a brutal, sharp style... it feels somewhat familiar!"
"You mean..." Meng Xingtao's heart shook as an idea instantly sparked in his mind.
Huang Qingyun nodded and said, "Combined with the recent moves of heavily reducing positions and taking profits on the 'new energy industry chain', there is reason to suspect that it's the main fund product 'Huayi Expedition No. 1' under the institution Huayi Capital that is aggressively building positions in real estate sector shares."
Meng Xingtao thought about it carefully and nodded in agreement. "It certainly looks like the trading style of President Su from Huayi Capital. Across the entire market, only this President Su trades with such unreasonableness—buying endlessly when he's bullish on a stock, and selling endlessly when he's bearish."
"Indeed," Huang Qingyun nodded. "Looking at this institution's holdings and buying actions in the 'Baijiu' sector, you can fully feel President Su's trading style."
At the beginning of the year, the fund product 'Huayi Expedition No. 1'.
Under Su Yi's guidance, it wildly built positions and bought up core industry leading stocks in the 'Baijiu' sector.
That meant buying aggressively every single day without rhyme or reason, until it bought first-tier liquor enterprises like Kweichow Moutai, Wuliangye, and Luzhou Laojiao right up to the 4.99% limit-disclosure threshold before stopping.
"However, this is just our guess..." Meng Xingtao thought for a moment and said. "To truly confirm it's this institution, we'll have to look at the post-market Dragon and Tiger List data."
With that, he immediately turned his gaze to the Dragon and Tiger List interface of the two exchanges.
Under his anticipation and waiting...
At the same time, amidst the anticipation and waiting of countless investors across the entire market, numerous active hot money groups, and other major institutional groups...
Soon, 5:00 PM arrived, and the Dragon and Tiger Lists for the two exchanges refreshed.
The moment the Dragon and Tiger Lists refreshed...
The instant countless investor gazes across the market converged onto the Dragon and Tiger Lists, sure enough... amidst the spotlight, the dedicated seat of the highly market-watched main fund product 'Huayi Expedition No. 1'—namely, the Huaxin Securities Shanghai Financial Street Fuxing Road branch—was prominently listed, appearing on the buying lists of several core stocks across the two exchanges.
(End of Chapter)