"Why so much selling? The market price of 'lithium carbonate' has broken through 120,000, but the stock prices of 'Tianqi Lithium' and 'Ganfeng Lithium' have recently been declining. The continuous selling pressure on the market is truly strange."
Noticing the continuous suppression of selling pressure on the core component stocks in the entire 'lithium battery' main sector.
In the 'New Energy Mixed Selection' fund product trading department of Modu Huaxi Capital Company, fund manager Zhou Sheng frowned, clearly somewhat confused.
"There's no way around it. Core stocks like 'Tianqi Lithium', 'Ganfeng Lithium', and 'Do-Fluoride' have seen their prices surge three to four times in the past two to three months. The accumulated profit-taking pressure from within is extremely severe.
Even though market prices for 'lithium carbonate' and 'lithium hexafluorophosphate' are still rising, it's very normal for profit-takers to continuously sell under the inducement of huge unrealized gains,"
responded Tian Xiaohui, head of the fund trading team.
"I feel that as long as the explosive growth trend in market demand for the 'new energy industry chain' main sector continues, and the price increase trend for 'lithium carbonate' and 'lithium hexafluorophosphate' persists, then the continuous selling pressure from profit-takers will not affect the underlying stock price movements. We don't need to pay too much attention to it.
Moreover... As long as expectations for the entire 'new energy industry chain' and 'lithium battery' main sector investments strengthen. More institutional funds will always come in to support and take over the market's chips.
Based on the expected boom in 'new energy vehicles' and the subsequent demand expansion and supply gap analysis in the 'lithium battery' industry, the price increases for 'lithium carbonate' and 'lithium hexafluorophosphate' are still far from reaching their potential. If the prices of these two core products can stabilize above 100,000.
Then, according to our research team's predictions. The reasonable valuation of 'Tianqi Lithium' should reach the 100-billion mark, while 'Do-Fluoride' and 'Ganfeng Lithium' could reach the 80-billion market cap mark.
Currently... Whether it's 'Tianqi Lithium' or the two core stocks, 'Do-Fluoride' and 'Ganfeng Lithium'. Are still quite a distance from this target. Therefore, whether analyzing stock price increases or the fundamental supply-demand gap, the speculation surrounding the 'new energy industry chain' main sector and the investment opportunities in the 'lithium battery' main sector are far from over.
Moreover, according to our investment research department's data. In the past month. Aren't relevant 'new energy' investment institutions in the industry actively participating and massively increasing their long positions?"
Zhou Sheng heard Tian Xiaohui's words and replied,
"From a fundamental analysis, your conclusions are valid. However, from a market perspective, and looking at the capital flows in these stocks, it's clear that the market trends for these core stocks are continuously weakening."
"The selling pressure is indeed heavy,"
Tian Xiaohui said,
"but the extent of the stock price pullback isn't actually that large."
Zhou Sheng said,
"It's not about the magnitude of the pullback, but rather the overall net outflow of market funds. This selling pressure continues to intensify and expand as market trading time progresses, which makes me very uneasy and makes it difficult to remain optimistic about the future market trend."
"But in terms of news and fundamentals, there are currently no negative developments,"
Tian Xiaohui said.
"Who could be behind such continuous selling?"
Zhou Sheng pondered for a moment and asked,
"According to our investment research department's data, which major institutional investors currently hold significant positions in 'Tianqi Lithium', 'Ganfeng Lithium', 'Do-Fluoride'... these core, heavily weighted popular stocks in the 'lithium battery' main sector?"
Tian Xiaohui thought for a moment and said,
"According to publicly disclosed market information, institutional players in the industry, such as 'Jufeng Asset', 'Noah New Energy Industry Investment Fund', 'Anhe Capital', 'Zhaohui Capital Fund No. 1'..., have relatively heavy holdings in these stocks.
As for the holdings data of large individual investors and influential individual investors with substantial capital. Since it was not disclosed in their company's third-quarter report. Therefore, we don't know, we can only roughly gather some information from the recent Dragon-Tiger List data for these stocks.
Based on the recent Dragon-Tiger List data for these stocks, it doesn't seem like there are any influential individual investors with large capital or major market speculative funds continuously increasing their positions or persistently dumping shares."
"So... it's unlikely to be speculative funds or large individual investors dumping shares, right?"
Zhou Sheng said.
Tian Xiaohui responded,
"Absolutely not. Looking at the market trends, the market patterns of popular 'lithium battery' main sector stocks like 'Tianqi Lithium', 'Ganfeng Lithium', 'Do-Fluoride', 'Tinci Materials'... are clearly converging. And the intraday selling pressure from profit-takers, the net outflow of selling funds, has already exceeded tens of millions.
A preliminary estimate... this fund taking profits by reducing positions has already sold off chips worth more than 300 million just this half day. Could this be the work of speculative funds and large individual investors?"
"It's not impossible!"
Zhou Sheng said.
"Look at yesterday's block trade data for 'Kewan Real Estate'. Can you imagine that the fund 'Jinrongjie Fuxinglu' had over 3 billion in capital chips lying in wait in the stock 'Kewan Real Estate'? Over 3 billion... many institutional investment funds in the industry don't even have that kind of scale."
"'Jinrongjie Fuxinglu' is just a gambler,"
Tian Xiaohui said.
"His trading methods cannot be judged by common sense."
"I remember that the fund 'Jinrongjie Fuxinglu' also had a significant amount of chips in the 'lithium battery' main sector before, didn't it?"
Zhou Sheng said.
"Stocks like 'Sunwoda Electronic', 'Dynavolt Renewable Energy', 'Gotion High-tech'... weren't these being continuously driven by this fund?"
Tian Xiaohui said,
"The fund 'Jinrongjie Fuxinglu' did indeed hold significant positions in the 'lithium battery' main sector previously, but with the surge in the 'lithium battery' main sector, that fund had already exited some time ago.
According to market intelligence, the maximum capital held by the 'Jinrongjie Fuxinglu' fund is only a few billion. Now he has sold a full 3.6 billion worth of chips in 'Kewan Real Estate' through block trades. Based on the information... this should be his entire position.
During this period... It is unlikely that this fund still holds large-scale positions in other main market sectors. Therefore, I am certain that the main capital currently massively selling to take profits and suppressing the market trend in core stocks related to the 'lithium battery' main sector.
Absolutely cannot be a major speculative fund like 'Jinrongjie Fuxinglu'. Most likely, it's one of the industry institutions I just mentioned, and among them... I feel 'Jufeng Asset' is more probable."
"Why do you think 'Jufeng Asset' is more probable?"
Zhou Sheng asked.
Tian Xiaohui said,
"Because according to 'Jufeng Asset's' recently published fund product net value trends and holding data, this institution has the most cost-advantaged holdings in the 'lithium battery' main sector, and thus the strongest motivation to reduce positions and take profits."
"Jufeng Asset..."
Zhou Sheng mused over the institution's motives, not responding for a moment.
While he was speculating on the other party's motive for reducing positions and taking profits.
Meanwhile, inside 'Jufeng Asset Management Company', in the 'Jufeng Future Growth' fund product trading department, fund manager Lu Xiangxiang watched the market trends of core popular 'lithium battery' stocks like 'Tianqi Lithium', 'Ganfeng Lithium', 'Do-Fluoride'... which were continuously under pressure, showing sustained high volume and moving lower against the trend.
For a moment, her heart was also filled with questions.
"Lu Zong, I feel that the trend of these core stocks in our heavily invested 'lithium battery' main sector is strange!"
While Lu Xiangxiang was in thought, Yu Xiaolu, the fund's core trader, noticed the abnormal market situation and immediately reported,
"The selling pressure is too heavy, and the trading volume is severely high. It's clearly some major capital in the market frantically dumping chips, seemingly... eager to exit."
"Hmm, I see,"
Lu Xiangxiang nodded slightly.
Yu Xiaolu heard Lu Xiangxiang's response, paused, and then continued,
"Since the market opened... the selling pressure on the market has been continuous. As long as there's active buying to absorb, this fund sells without hesitation, and it's selling multiple stocks simultaneously. Such eagerness to reduce positions, take profits, and exit... I'm worried if there's any unusual news development?"
"In terms of news, I haven't heard any negative rumors,"
Lu Xiangxiang said.
"And regarding market quotes, the prices of 'lithium carbonate' and 'lithium hexafluorophosphate' are still in a continuous upward trend."
"Then that's strange,"
Yu Xiaolu said.
"The capital being sold on the market is extremely large."
"It should be an industry-focused investment fund making a large position adjustment at year-end,"
Lu Xiangxiang said.
"It's fine, as long as the fundamentals of the 'lithium battery' main sector are sound, and the prices of 'lithium carbonate' and 'lithium hexafluorophosphate' are still rising, the market trend won't cease. It's normal for some to exit and some to enter. Perhaps at this point, a full exchange of internal chips will actually be beneficial for further market development."
But even as she said this, her eyes saw that on multiple core 'lithium battery' stocks.
The net outflow of major funds had already exceeded 100 million.
She still felt a little uneasy.
However, before clarifying the specific selling motive of this capital and before discovering any unexpected major negative situations.
Even with worries in her heart, she wouldn't easily sell off her chips.
After all, with the huge surge in demand for the 'new energy industry chain' and the ever-widening demand gap in the 'lithium battery' market.
The core chips of the entire 'lithium battery' main sector are still relatively scarce.
If at this point, there are no issues with fundamentals or news, then after she rashly sells a large amount of chips, it would be quite difficult to buy them back.
However, amidst her inner apprehension and hesitation.
Core stocks in the 'lithium battery' main sector, such as 'Tianqi Lithium', 'Ganfeng Lithium', 'Do-Fluoride'..., all saw enormous trading volume intraday, uniformly exhibiting a pattern of opening high, moving lower, and falling sharply against the trend.
Among them, stocks with slightly less market liquidity, such as 'Tinci Materials', 'Sunwoda Electronic', and 'Dynavolt Renewable Energy'.
Plunged by over 7% against the trend, leading the decline among all stocks in both markets.
Facing the entire 'new energy industry chain' main sector and the 'lithium battery' sector, which were significantly weaker than the broader market in both cities, showing a pattern of sharp decline against the trend.
After market close, all investor groups gathered in this core main sector.
Felt a sense of disappointment.
Even many speculative funds with keen market perception, and smart investors.
Had already begun adjusting their strategies, shifting from previous aggressive bullish and long strategies to cautiously bullish, or preparing for immediate position reduction and profit-taking strategies.
"The 'lithium battery' main sector has performed like this, clearly shifting from strong to weak!"
During the post-market review phase after both markets closed, in the 'Modu Ultra-Short Gang' major speculative fund group where Su Yi was, Xu Qiao, who had gradually started taking profits, reducing positions, and retreating in the 'real estate' sector, particularly from the 'Kewan Real Estate' stock which still showed a surging volume pattern, wondered,
"Looking at this instantaneously amplified trading volume, could it be that... Brother Su, after fully taking profits from 'Kewan Real Estate', is now massively reducing positions and taking profits from 'lithium battery' main sector chips?"
"Very likely,"
Old Zhang said.
"'Sunwoda Electronic' and 'Dynavolt Renewable Energy' experienced a massive intraday swing of 13 points, almost closing at the limit down. These two stocks were clearly held in large positions by Brother Su before. I feel Brother Su is definitely massively reducing positions and taking profits from 'lithium battery' main sector chips."
Old Wu paused and also said,
"It seems Brother Su is truly not optimistic about the market's future trend."
"Has this round of rebound peaked?"
Xu Qiao asked.
Brother Chen responded,
"Hard to say, but market volume is retreating instead of advancing, and the 'lithium battery' main sector saw massive volume at a high point. It feels like this round of market rebound will indeed find it very difficult to break through further upwards."
"Currently, the entire market's core hotspot is 'Kewan Real Estate',"
Old Zhang said.
"I wonder if 'Kewan Real Estate' can lead another surge in the 'real estate' sector, creating new highs amidst the equity battle between 'Baoneng Group' and 'Kewan Real Estate' Group management."
Brother Chen said,
"It's probably very difficult. I've heard that 'Kewan Real Estate' Group's management is already seeking 'external assistance', and the 'real estate' sector has risen sharply recently. Accumulated profit-taking pressure on the market is also quite heavy. Without the support of capital and volume, the probability of further upward breakthroughs is extremely small."
"If the capital that massively reduced positions and took profits on the market today was truly Brother Su's..."
Old Wu said,
"Then we really need to view the subsequent market trend cautiously."
"Look at the time, the Dragon-Tiger List is about to refresh,"
Xu Qiao said.
"Let's check the Dragon-Tiger List first."
As he spoke...
Soon, 5 PM arrived, and the Dragon-Tiger Lists for both markets refreshed.
Core stocks in the 'lithium battery' main sector, 'Sunwoda Electronic', 'Dynavolt Renewable Energy', and 'Tinci Materials', which saw intraday swings of more than ten percentage points, predictably appeared on the list.
At the same time, 'Kewan Real Estate', which remained a key focus of the market, also made the list.
According to the refreshed Dragon-Tiger List.
On the buy and sell seats for 'Kewan Real Estate', the 'Huayin Securities Shenzhen Branch' seat, belonging to 'Baoneng Group', was still aggressively increasing its holdings at high levels, buying chips.
Its net intraday buy amount still exceeded 300 million yuan, showing no signs of backing down from its bold determination to seize control of 'Kewan Real Estate' Group, as evidenced by its buying behavior.
As for the Dragon-Tiger List buy and sell seats for 'Sunwoda Electronic', 'Dynavolt Renewable Energy', and 'Tinci Materials'.
The 'Jinrongjie Fuxinglu' trading seat used by Su Yi, in a dominant fashion, swept the sell-side lists of the three stocks, with a combined selling amount exceeding 400 million yuan.
On the buy-side seats for the three stocks, the main buying power came from institutional seats.
"My heavens, what's going on? How many more chips does the 'Jinrongjie Fuxinglu' fund have left to dump?!"
Upon seeing Su Yi's 'Jinrongjie Fuxinglu' trading seat sweeping the sell-side lists on the Dragon-Tiger Lists of both markets, the entire domestic financial community, especially the numerous institutions that heavily took over the market intraday, absorbing the chips sold by Su Yi, as well as those large capital institutional groups that firmly believed in the bullish trend of the 'new energy industry chain' main sector and were actively long on 'lithium battery' core stocks, were shocked and instantly dumbfounded.
(End of Chapter)