"Brother Liao, you've already spread your positions across quite a few hot stocks, and you've made a killing today. Are you really thinking about adding more to your position?" Li Jinshi smiled and said, "Are you trying to make back all the profits you missed out on over the past half-year in one go?"
Liao Guoxiang chuckled and said,
"When an opportunity comes, you have to seize it, don't you? Besides, my little bit of money and position size are nothing compared to the real tycoons in the market. Just look at President Su of Huayi Capital—now that is truly legendary!"
He still remembered during last year's stock market crash.
Back then, President Su of Huayi Capital—who was now famous nationwide and renowned across domestic and international financial circles—was just a small-time hot-money trader in the A-share market, doing nothing more than guiding hot money to speculate on small-cap concept stocks.
Who could have imagined that barely a year later, he would accumulate tens of billions in wealth and become a top institutional titan with immense influence in the market?
"There's no need to even mention President Su of Huayi Capital," Li Jinshi said. "Nowadays, his influence in the A-share market is probably no less than that of the 'National Team,' right?"
"I'm afraid even the 'National Team' can't compare to him," Chen Guiyun said. "Right now, as long as a concept stock is bought by the 'Huayi Expedition No. 1' fund under Huayi Capital, especially core stocks explicitly bought by 'Fuxing Road,' it immediately becomes a stock where various institutions and retail investor groups cluster together.
Could the 'National Team' pull off that kind of influence and rallying power? Take the current core line of 'Big Infrastructure,' for instance. If President Su of Huayi Capital hadn't openly shown the 'Fuxing Road' trading seat and bought aggressively in the open market, this core line might not have caught fire at all."
"Huayi Capital's guidance definitely played a crucial role in bringing out the market's core line," Li Jinshi said. "However, I believe that whether a core line ultimately succeeds and creates a lasting moneymaking effect is still decided by the final combined force of the market."
"And without a doubt, Huayi Capital is the best catalyst for guiding various funds in the market to form a combined force," Chen Guiyun said. "You know, President Su of Huayi Capital is truly a legend. Since his debut, virtually every investment he made—especially those heavy-position plays—has never failed."
"That's true," Li Jinshi nodded slightly. "From initially leading the rally of 'Teli A', to 'Meiyan Jixiang', then to 'Huaguo Heavy Industry', 'Kewan Real Estate', spreading bets across the new energy industry chain, to this year's gamble on the 'UK Brexit referendum' aggressively shorting the British Pound, and heavy positions in liquor, white goods, and pharmaceuticals at the start of the year... Looking back, every time this man took a heavy position, he truly walked away with massive profits."
"When fortune smiles, heaven and earth work together in harmony," Liao Guoxiang sighed with emotion. "There's nothing we can do; you just can't envy a guy like that."
"All I can say is that his ability is truly insane," Li Jinshi continued. "Earning a net worth of tens of billions from the financial market in just one year... Looking back at our country's financial history, President Su of Huayi Capital is probably the only person to ever create such a wealth myth, right?"
"Indeed, the one and only," Chen Guiyun said firmly.
"That's not even the scariest part," Liao Guoxiang said. "The scariest thing is that when it comes to investing in the financial market, he can adapt to all styles of investment models and is remarkably proficient in all of them.
Remember when he first established Huayi Capital and raised funds for his flagship product, 'Huayi Expedition No. 1'? Not many people in the industry favored him back then. So when 'Huayi Expedition No. 1' was raising capital, subscribing to it wasn't hard at all.
Because everyone was unsure whether he could still maintain his past sharp market instinct, investment flexibility, and produce such exaggerated returns once he managed a fund of 10 billion yuan.
After all, the 'Zexi System' was completely collapsing at the time. But look at things now... The performance of 'Huayi Expedition No. 1' has left the entire domestic private equity circle far behind in the dust.
Moreover, after taking control of a 10 billion yuan fund, he resolutely chose not to stick to his previous trading model, nor did he follow the old path of the 'Zexi System'—using insider information to gamble on restructured stocks for excess market returns. Instead, he chose the so-called 'value investing' path that countless people praise as the righteous way of investing.
What's even more astonishing is that he actually succeeded on this path. After shifting his trading mindset and model, he managed to generate multi-fold returns on the path of 'value investing' over the past half-year amidst a persistently weak market trend. It's simply absurd."
"The key is that he's still so young," Chen Guiyun said. "I can hardly imagine what his future achievements will be."
And just as several hot-money titans of the 'Foshan Clique' were marveling at the performance myth and wealth miracle created by Su Yi...
At this moment in Shanghai, inside the headquarters of Huayi Capital, in the trading room of the flagship 'Huayi Expedition No. 1' fund, Su Yi stood with his hands behind his back, gazing at the large market monitor.
He smiled and said, "The market trend has actually rotated towards 'State-Owned Enterprise Reform.' Some funds in the market are quite sharp after all!"
"'Infrastructure' combined with 'SOE Reform' definitely has speculation potential," responded Hou Baolong, who stood beside Su Yi. "Digging along the 'SOE Reform' line adds depth to the core market trend. However, because of this... it will be even harder for us to add more positions."
Su Yi smiled and said, "No matter. Increased market depth means the gathered capital will spread out relatively, creating timely opportunities for switching between high and low positions. Transitions from divergence to consensus, and consensus back to divergence, will likely recur. We just need to wait patiently; there will be plenty of opportunities."
In fact, the overall position of the 'Huayi Expedition No. 1' fund product had already reached 80%.
With only 20% of the position remaining cash, in the short term, whether or not they continued adding to positions wouldn't significantly impact the fund's net asset value performance.
Furthermore, the current NAV performance of 'Huayi Expedition No. 1' was already head and shoulders above other fund products of the same tier, having already achieved the company's annual performance target set at the beginning of the year.
Therefore, whether regarding NAV growth or position allocation, Su Yi felt no sense of urgency.
As for the retail investors who invested in the 'Huayi Expedition No. 1' fund product, they were even less in a hurry.
"Understood," Hou Baolong replied.
After reflecting for a moment, he added, "However, President Su... we could allocate a bit more position to the Hong Kong stock market. Compared to the A-share market, mainland real estate stocks in Hong Kong might offer better value, stronger explosive momentum, and lower valuations."
"Sure, no problem," Su Yi nodded slightly. "Just proceed according to your strategy."
Once the main investment strategy was established, Su Yi naturally didn't want to micromanage such minor position adjustments.
Having received Su Yi's approval, Hou Baolong nodded hastily and immediately instructed the trading team to tilt positions toward the Hong Kong stock market.
As the traders continued to buy periodically based on market movements, trading time flew by, soon reaching 11:30 AM, bringing the A-share market to its midday close.
After half a day of intense trading, the Shanghai Composite Index settled at a 1.78% gain, while the ChiNext Index barely managed to stay in positive territory.
In terms of the overall trend...
Within the 'Big Infrastructure' core sector, real estate, construction, non-ferrous metals, steel, and coal remained the primary focus for main institutional capital and active speculative funds.
Near the midday close, the 'SOE Reform' concept sector saw a wave of unusual activity, driving speculation in restructuring concepts and shell stocks as well.
"The real estate sector is way too crazy. If you don't chase it, it just keeps rising."
After the midday close, facing the explosive continued rally of the market's 'Big Infrastructure' line, someone among the retail investor crowd gathered on online stock discussion platforms couldn't help but sigh with emotion.
"It's rising fiercely, but there are no good entry points at all. You can only buy high."
"You didn't buy at those great entry points a few days ago, so what else can you do now besides chase high? In the whole market, apart from the popularity of 'Big Infrastructure,' everything else is just disastrous."
"Sigh, I'm fully loaded on tech stocks. The market keeps surging, but it has absolutely nothing to do with me. I'm furious!"
"President Su is still the goat. A couple of days ago, as soon as President Su's 'Fuxing Road' seat showed up on the buy list for real estate stocks, I immediately jumped in, slashed my media and tech positions, and went all-in on 'Gemdale Corporation.' Now I've already recovered almost 20%!"
"Awesome! That was a decisive switch."
"In a bear market, when things look wrong, you have to cut positions decisively. Otherwise... you're facing a long, slow bleed."
"True. Short-term pain is better than long-term suffering. You really have to be ruthless enough to cut yourself."
"It's painful not holding any positions in 'Big Infrastructure' right now. When the market goes up, it has nothing to do with me; when it goes down, my stocks fall even harder."
"The market doesn't even need to drop; stocks in the tech sector are already looking miserable."
"I'm numb. I sold 'Capital Group' too early! Feels like this stock is going to be the dragon leader of the rebound in the real estate sector!"
"At least you made a profit selling early! I haven't even made a single cent!"
"This hurts so much. Is it too late to cut my positions and chase real estate or the leaders in 'Big Infrastructure' now?"
"Haven't all the core rebound leaders hit their daily limit ups? Even if you want to buy now, you can't get in. Only the core large-cap weighted stocks are left, but their flexibility seems quite limited!"
"That was in the past. You can't think with the old mindset anymore."
"Indeed, it feels like only large-cap stocks are doing well, while small-cap stocks have basically suffered liquidity drying up."
"Sigh, feels like the market style has completely changed!"
"It's not that the style changed, but rather that after many active hot-money players exited, institutional capital started clustering together. And isn't the area where institutional capital clusters precisely large-cap weighted stocks?"
"Right! Look at how well 'Moutai' has performed over the past half-year."
"The liquor sector really didn't surge during the bull market, but in a bear market, it climbs wildly and hits new highs again and again."
"And it gives zero pullback entry opportunities at all. It literally forged a bull market uptrend against the trend, ridiculously strong."
"How does that saying go? 'Yesterday you ignored me, today I'm out of your league.'"
"No way am I chasing high. I'm forced to play dead. As long as I don't cut, the main players can't harvest me."
"Doesn't anyone feel like the speculation hot spots are moving towards 'SOE Reform'? I feel like 'SOE Reform' will be a great opportunity this afternoon!"
"'SOE Reform'? Huh, it actually seems like it!"
"This line seems to be the newest trend being hyped up. It's worth trying to chase. Anyway, I don't dare chase high-level hot stocks like real estate, non-ferrous metals, or coal."
"Buying stocks means buying the market leaders! In a bear market, the strong usually get stronger and the weak get weaker. The hot market leaders in 'Big Infrastructure' have only had two limit-ups so far, not even three—how is that high?
Besides, market sentiment on 'Big Infrastructure' today is quite aligned. I remain bullish on 'Big Infrastructure' continuing to ferment this afternoon, creating even higher moneymaking opportunities."
"Indeed, only when the leader pushes the ceiling higher and creates a strong moneymaking effect can a sustained market trend follow."
"Anyway, it's pretty certain there's a rebound rally here, right?"
"That's how I see it. As for how the market actually moves, heaven only knows."
"Seeing that many are still bearish makes me relieved. As the saying goes, 'Buy on divergence, sell on consensus.' Since market opinions are still divided right now, this rebound rally can definitely continue."
"But chasing high now carries risks too, doesn't it? If you ask me... if you're truly bullish, you can wait for a pullback before buying."
"Wait for a pullback? By then, who knows how high the stock price will have already jumped."
"How high could it possibly jump? It's not like this is a bull market."
"In the current market environment, I'm definitely not chasing any stock that's gained over 20% in the short term. Let it rise all it wants. There are so many low-level oversold stocks; bottom-fishing any of them works."
"Heh, in a bear market, active funds are extremely limited. And precisely because active liquidity is so scarce, it can't cover all stocks across the market. This creates a market dynamic where the strong get stronger and the weak get weaker, leading to the 'Big Infrastructure' line completely siphoning capital from other core sectors.
At a time like this... you either stay in cash and buy nothing, or chase the core sector where funds are concentrating speculation just to squeeze out a bit of profit. Bottom-fishing cold, oversold stocks will probably just cause worse losses."
"Holy crap, that's so true! A stock you think is oversold can keep plunging lower, and a high stock you daren't chase can keep reaching new highs."
"That's why when you need to chase, you have to chase."
Amidst the fierce discussions among the retail investors, market time flew by.
In the blink of an eye, the midday break passed, 1:00 PM arrived, and both markets ushered in the afternoon continuous trading session.
After an hour and a half of emotional brewing during midday, the moment the market opened and quotes began ticking, the 'Big Infrastructure' main line—which had performed strongly in the morning—and the 'SOE Reform' concept sector—which moved near the midday close—were further snapped up by active market funds, with related concept stocks continuing to rise on surging volume.
(End of Chapter)