As he massively offloaded chips on the market.
The core stocks he heavily held in the 'lithium battery' main sector, such as Tianqi Lithium, Do-Fluoride, Ganfeng Lithium, Tianci Materials, Penghui Energy, etc., couldn't help but dive from intraday highs in the afternoon market trend, and trading volume further rapidly expanded.
"How is this selling pressure still so heavy? Several consecutive large buy orders of tens of thousands of lots couldn't push the stock price up."
Seeing that a group of core stocks in the 'lithium battery' main sector all dived after surging, and the market selling pressure was extremely heavy, for a moment, inside Magic City's Jufeng Asset Management Company, in the 'Jufeng Future Growth Fund' Product Trading Department, core trader Yu Xiaolu couldn't help but frown:
"Where did so many sell orders come from? Wasn't the emotional selling pressure caused by the departure of the capital from 'Financial Street Fuxing Road' already resolved in the early trading session this morning?"
"It seems... these active sell-offs are all large institutional sell orders."
Lu Xiangxiang, the product manager of the 'Jufeng Future Growth Fund', was also closely watching the market trends of both exchanges with sharp eyes,
"Almost all core stocks in the entire 'lithium battery' main sector show linked movements and face extreme selling pressure... Could it be that the capital from 'Financial Street Fuxing Road' is still massively selling chips?"
Yu Xiaolu quickly replied:
"No way, right? Where would the capital from 'Financial Street Fuxing Road' get so many chips to sell? For core stocks like Tianqi Lithium, Ganfeng Lithium, and Do-Fluoride, we haven't seen any signs of buying from the capital of 'Financial Street Fuxing Road' before. Logically speaking, this capital couldn't have too large a hidden position in these core stocks."
"That's strange then,"
Lu Xiangxiang said.
"To my knowledge, in this industry, there aren't many institutions that simultaneously hold large stakes in these core stocks. And even if institutions continuously reduce positions to lock in profits, their operational behavior couldn't be so consistent."
"From the market trend analysis, this must be the same capital selling,"
Yu Xiaolu said.
"Could it be an industry-type fund product invested in the 'lithium battery' main sector reducing positions?"
Lu Xiangxiang pondered for a moment and said:
"It's also possible."
"Fortunately, the market's absorption capacity is still good."
Yu Xiaolu paused, slightly breathing a sigh of relief,
"After this wave of selling pressure passes, the market trend should recover somewhat."
Lu Xiangxiang nodded and said:
"In terms of news, the prices of lithium carbonate and lithium hexafluorophosphate are still rising, and the supply-demand gap still exists. Market demand and monthly sales of new energy passenger vehicles are also still rising month-on-month.
In terms of market absorption, continuous institutional capital entering to absorb isn't a big problem. The key is that after the chip structure disperses, it might take a lot of time to stabilize again!"
"Manager Lu, are you worried that after the chip structure changes, the entire 'lithium battery' main sector's market trend will enter a phase of sustained high-level volatile movements?"
Yu Xiaolu asked.
Lu Xiangxiang replied:
"It's entirely possible, moreover... the capital situation at the end of the year isn't very good."
"Volatile adjustments are possible,"
Yu Xiaolu said,
"but the extent of the adjustment shouldn't be too large, after all, the core logic of the 'lithium battery' main sector is still there."
"Despite this, we still need to figure out the motive of this main capital continuously reducing positions,"
Lu Xiangxiang said.
"Otherwise, I always feel uneasy. Also... the broader market index has been oscillating in the range of 3500 to 3600 points for almost half a month, hasn't it? I feel the index is limited by volume and it's not easy for it to continue breaking upwards."
"I feel the current trend of the index doesn't pose a significant risk,"
Yu Xiaolu said.
"After this period of continuous volatile digestion, the accumulated profitable positions from the rebound since National Day have already been digested in the volatile market trend, while trapped positions will not easily cause a large-scale sell-off to suppress the market."
"It's year-end, it's better to be careful,"
Lu Xiangxiang said.
She wasn't able to avoid the previous two stock market crashes.
As the saying goes, once bitten by a snake, one fears a rope for ten years.
Even analyzing from all factors, it's unlikely the market will replicate the trends of the previous two stock market crashes.
But with her fund's held stocks continuously encountering large-scale capital sell-offs.
She still had to start being alert.
However, even if she was already alert in her heart at this time, and had many worries regarding the subsequent market trend, she didn't think about immediately reducing positions to lock in profits.
After all, considering the fundamental logic.
Apart from emotional factors, she really couldn't find a reason to massively reduce positions in the core 'lithium battery' main sector stocks at this time.
And just as she hesitated...
In the subsequent market trading hours, the heavily held stocks managed by her fund, with further expanded trading volume, not only failed to rebound and reverse the market's decline but instead saw continuous diving and a trend of steadily falling stock prices.
And by the closing bell.
Penghui Energy and Tianci Materials, two core stocks with relatively limited market liquidity, even plunged by over ten percentage points again, showing a sharp decline and completely losing their strong performance from the early morning session.
"The entire 'lithium battery' main sector is again on a sharp decline!"
After the market closed, in a brief review, Tian Xiaohui, the trading team leader of Huaxi Capital Company's 'New Energy Mixed Selection' Fund Trading Department, sighed:
"Many upstream core stocks in the 'lithium battery' main sector, despite the rising prices of lithium carbonate and lithium hexafluorophosphate, continuously showed sharp declines, gradually diverging from the futures prices of their main products. Such a phenomenon... doesn't feel like a good sign!"
"Stock price movements are secondary,"
said Zhou Sheng, the product manager of the 'Huaxi Capital New Energy Mixed Selection' fund product.
"The key is the change in trading volume; a sharp decline accompanied by sustained high volume generally indicates that the main sector trend is starting to reverse and will likely enter a correction phase."
"The influence of the capital from 'Financial Street Fuxing Road' is truly powerful,"
Tian Xiaohui said.
"It can actually have such a huge impact on the market trend."
"There's simply too much capital following this trading seat's operations,"
Zhou Sheng sighed helplessly.
"However, after the capital from 'Financial Street Fuxing Road' completely exits the market, it should also be considered a long-term positive for the future trend of the 'lithium battery' core main sector,"
Tian Xiaohui said.
"Retail funds, in terms of holding period and chip lock-up, are completely different from institutions. The exit of the capital from 'Financial Street Fuxing Road' is conducive to the further consolidation and stabilization of chips in stocks related to the 'lithium battery' core main sector."
"That understanding isn't wrong,"
Zhou Sheng nodded slightly.
"However... how can you be sure that the capital from 'Financial Street Fuxing Road' has completely exited the market?"
"Because in terms of its capital size, 'Financial Street Fuxing Road' couldn't possibly still hold a large-scale position in the 'lithium battery' core main sector,"
Tian Xiaohui said with great certainty.
"This capital size is at most 5 billion (RMB). Factoring in his selling volume in Kewan Real Estate, the chips sold on yesterday's Dragon-Tiger list, and the potential selling volume during today's trading, it's absolutely impossible for him to still hold many chips. Even if he still has a few hundred million chips after continuous selling, it would be difficult to continuously suppress and cause excessive impact on the 'lithium battery' main sector's market trend."
Zhou Sheng smiled slightly, didn't answer, and said:
"Let's wait and see the Dragon-Tiger list first."
After speaking, he checked the time and immediately turned his attention to the Dragon-Tiger list data of both exchanges, which was about to be disclosed and updated.
As he waited...
Not long after, the Dragon-Tiger list of both exchanges refreshed.
It was seen that with a significant increase in intraday turnover rate and a heavily volatile market trend, the two core 'lithium battery' main sector stocks, Penghui Energy and Tianci Materials, once again appeared on the Dragon-Tiger list.
And according to the Dragon-Tiger list buy and sell data disclosed for these two stocks.
It could be seen that the main capital from 'Financial Street Fuxing Road' was still ranked as the top seller for both stocks, with a total selling amount reaching 230 million (RMB).
"Holy crap, how is 'Financial Street Fuxing Road' still selling off on a large scale? Where did he get so many chips?"
Seeing the Dragon-Tiger list data disclosed by both exchanges, especially the buy and sell data disclosed for Tianci Materials and Penghui Energy on the Dragon-Tiger list, Li Jinshi within the 'Foshan Faction' main retail investor group was simply stunned and couldn't help but exclaim:
"Another net sell amount of over 200 million! How many chips did this guy 'Financial Street Fuxing Road' hide in the 'lithium battery' main sector? Is he never going to finish selling?"
"This guy's selling volume is too terrifying,"
Chen Guiyun, also a main retail investor of the 'Foshan Faction', exclaimed in the group.
"There are quite a few stocks today whose trends are relatively consistent with Tianci Materials and Penghui Energy. Could it be that all these stocks are being sold off by the capital from 'Financial Street Fuxing Road'?"
As a key figure among the 'Foshan Faction' main retail investors, Liao Guoxiang heard the two people's conversation, chuckled, and said:
"That's hard to say. The capital from 'Financial Street Fuxing Road', its current trading strategy, is becoming increasingly elusive, completely impossible to guess."
He previously believed he had a relatively thorough understanding of the trading methods of the capital from 'Financial Street Fuxing Road'.
But when this capital brazenly sold over 3.6 billion (RMB) worth of Kewan Real Estate stock chips through block trading channels.
Only then did he realize that his understanding of this capital's trading methods and market-making strategies was still too simple.
Of course, while he was secretly doubting, his inner self was more shocked.
"Unfortunately, the more core stocks like Tianqi Lithium, Ganfeng Lithium, and Do-Fluoride didn't make the list,"
Li Jinshi said.
"However, through market analysis, it's truly possible that the capital from 'Financial Street Fuxing Road' is also selling these."
"In contrast to the large-scale selling of chips by the capital from 'Financial Street Fuxing Road', there's the institutional seat on the buy list,"
Chen Guiyun said.
"This institutional seat basically absorbed the capital volume sold by 'Financial Street Fuxing Road'. Combining with market news... do you think this institution that took over could it be the 'Noah Capital New Energy Industry Growth Mixed' fund product?"
"Absolutely possible,"
Li Jinshi said.
"Yesterday, Manager Yang was so outspoken, it's impossible he didn't take any action."
And just as Li Jinshi guessed...
While they were carefully reviewing the market, speculating about the background of the institution that completely took over the chips sold by 'Financial Street Fuxing Road' and its source of funds.
Magic City, inside Noah Capital Company.
'Noah New Energy Industry Growth Mixed Fund' Product Trading Department.
As the trading team leader of this fund product, Bao Yongquan was quite startled after seeing the Dragon-Tiger list data disclosed by both exchanges, and hurriedly reported to his fund manager Yang Shengfan:
"Manager Yang, among the stocks we bought today, the capital from 'Financial Street Fuxing Road' really continued to massively sell chips."
"It's fine, let him keep selling,"
Yang Shengfan glanced at the Dragon-Tiger list data where 'Financial Street Fuxing Road' appeared, not paying much attention at all.
"As long as the underlying logic of the 'lithium battery' core main sector is sound, no matter how much this capital sells, we'll take it all. I'm just worried about not having good positions to build up."
"But the other party's selling volume is indeed a bit large,"
Bao Yongquan said.
"And this capital's market influence is not ordinary; there are many followers."
"Just a market retail investor,"
Yang Shengfan said disdainfully.
"How many chips can he still hold? As for the market sentiment it causes, there's even less need to pay too much attention. If emotions could dominate fundamental logic and influence medium to long-term trends, then there wouldn't be so many fresh 'chives' in the market."
"Alright,"
Bao Yongquan saw that his leader didn't care and could only put down his worries, saying,
"Then next, we will continue to increase our positions in the 'lithium battery' main sector as planned."
Yang Shengfan nodded slightly.
Then, he posted an update on a social media platform.
Expressing gratitude for the chips sold by 'Financial Street Fuxing Road' and stating that his institution had taken them all.
Su Yi saw Yang Shengfan's update on social media, still didn't reply at all, but only in the subsequent few trading days.
With practical actions, he continued to massively sell off the chips in his hand.
On Tuesday, December 15th, he collectively sold 600 million (RMB) worth of 'lithium battery' main sector chips, and once again swept the Dragon-Tiger list's top selling seats for 'lithium battery' main sector stocks.
On Wednesday, December 16th, he collectively sold 700 million (RMB), continuing to appear on the Dragon-Tiger list.
On Wednesday, December 17th, he collectively sold nearly 1 billion (RMB), pushing Tianqi Lithium's stock price to the limit down position in one go, and continued to sweep the Dragon-Tiger list's top selling seats across both exchanges.
And by this time...
Facing his continuous days of frantic selling and the suppression of the 'lithium battery' main sector.
Originally, those large institutional funds in the 'lithium battery' main sector that firmly held bullish positions also finally started to buckle.
Consequently, on Thursday, December 18th.
As Su Yi continued to sell off the remaining chips, countless institutional funds began to follow suit and sell.
This directly led to a massive collapse and retraction in the 'lithium battery' main sector, and further led to this core main sector, after continuous weak adjustments, exhibiting a widespread ebb where core stocks generally hit their limit down, for a moment... shocking the entire market.
(End of Chapter)