In his view, Kewan Real Estate's stock price was currently around 14.20 yuan, with a market value of over 160 billion.
Due to the strict macroeconomic controls on the housing market by the state in previous years, the relatively sluggish real estate market, and the deliberate suppression of the stock price by Kewan Real Estate Group's management, this leading stock in the real estate industry did not achieve spectacular stock price gains during the earlier bull market.
Of course, this was also due to its severely underestimated market valuation and strong fundamental support.
This stock did not suffer overly severe stock price pullbacks during the two consecutive stock market crashes since late June.
As a result, under the concentrated buying pressure from large funds recently, this stock did not encounter excessive selling pressure, fully recovered the losses from the two stock market crashes, and further launched an assault towards the peak stock price of the bull market in mid-June, poised to hit a new high and lead the entire real estate sector into another major market trend.
Holding 2 billion yuan in financing funds.
Su Yi basically did not consider any issues regarding position building costs.
As long as there was active selling on Kewan Real Estate's stock chart, he would unhesitatingly take on the buy orders, accepting all selling orders regardless of their quantity.
Fortunately, Kewan Real Estate had a large enough float.
It had over 100 billion yuan in tradable shares.
This made it relatively easy for him to sweep up shares on the market without getting stuck due to liquidity issues.
As he continued to buy into Kewan Real Estate with undisguised large-scale purchases...
Soon, inside "Rongke Investment Company", controlled by the Baoneng Group in the Shenzhen market.
Yang Chenghao, head of the trading team that had sufficient capital reserves and was continuously carrying out secret increases in holdings of Kewan Real Estate at Boss Yao's instruction, noticed a sudden influx of major buying funds on Kewan Real Estate's stock chart and instantly frowned.
"What's going on? Have institutions set their sights on Kewan Real Estate?"
Yang Chenghao wondered.
"General Manager Yang, we are always passively placing orders to take on shares, so we can't buy many,"
Wang Hao, the trading team leader, said hastily while Yang Chenghao was puzzled, also noticing the unusual activity on Kewan Real Estate's stock chart.
"Look... should we actively sweep up shares upwards to take on the market and further stimulate selling?"
Yang Chenghao thought for a moment and said,
"Let's observe the specific motive of this capital."
As Rongke Investment Company and Baoneng Group's insurance capital institutions were clearly different businesses with no strong overt connections.
Therefore, after Baoneng Group's insurance capital institutions had already taken positions in Kewan Real Estate.
During the previous two stock market crashes.
Responding to the call of Zhengjin, Huijin, and regulatory authorities, they invested huge sums to acquire a significant stake in Kewan Real Estate.
Boss Yao used Rongke Investment Company to continue buying Kewan Real Estate shares, extensively sweeping up stock in the secondary market, which did not trigger regulatory rules requiring disclosure of increased holdings.
Moreover, although the Baoneng Group at this time already harbored intentions of taking over Kewan Real Estate.
Their current holdings were not yet at a decisive level.
They would not easily expose their motives and intentions.
This was also why Rongke Investment Company, despite having relatively ample funds, did not drastically push up Kewan Real Estate's stock price in a short period, thus avoiding attracting full market attention.
In a sense...
At this time, apart from Su Yi, no one knew the fundamental reason for the sustained surge in trading volume for Kewan Real Estate recently.
It was due to Baoneng Group related funds intervening to sweep up shares.
Other market institutional groups, as well as Kewan Real Estate Group's current management and major shareholders, were completely unaware of this.
Of course, if Kewan Real Estate Group's management team.
Had become alert at this moment.
Then, in all likelihood, there would have been no subsequent "Baoneng-Vanke equity dispute".
"Okay,"
Wang Hao, the trading team leader, nodded.
"Then I'll continue placing orders to test it out."
As a trader, he could only execute according to specific trading strategies before the top leaders decided to "declare war publicly".
But as market trading time progressed.
The two discovered that on Kewan Real Estate's stock chart.
The buying funds that had been aggressively sweeping up shares since the market opened showed no signs of stopping.
"This fund has bought at least 100 million yuan worth of shares on the market today,"
Wang Hao, who had been observing the volume changes in Kewan Real Estate's market trend, said around 1:20 PM.
"Considering the overall market trend, this fund is buying quite aggressively. Could it be... that institutional investors like industrial investment funds have entered the market?"
"That's entirely possible,"
Yang Chenghao said.
"Then General Manager Yang..."
Wang Hao asked,
"What should we do now?"
Yang Chenghao looked at the trend of the two major market indices, the overall real estate sector index, and the market's general bullish sentiment, pondered for a moment, and said,
"Follow the trend and buy appropriately, but be careful not to rapidly push up the stock price. Even more importantly, don't let Kewan Real Estate enter the Dragon and Tiger List. At this time, we cannot expose our trading seats. Nor can we let Kewan Real Estate appear on the hot stock list watched by market investors."
Their current holdings of Kewan Real Estate shares were still severely insufficient.
If their motives and intentions were exposed prematurely at this time, it would disrupt the overall strategy painstakingly planned by the top leaders, and simultaneously cause their buying costs and invested capital to increase rapidly.
After all, no matter why the stock price is rising.
As long as buying capital continues to flow in, the stock price continues to rise, and the market's profit-making effect continues to expand.
Then, even if a continuously active stock has no related positive news, the group of investors paying attention and participating will automatically imagine numerous positive factors.
This would lead to weakening selling pressure and increasing buying pressure on the market.
This would be quite disadvantageous for them as buyers.
Therefore, at this point, even though they noticed a major fund competing with them for shares on the market.
They couldn't rely on the advantage of their capital size to engage in a bidding war with the other party on the market, continuously pushing up Kewan Real Estate's stock price.
"Understood,"
Wang Hao replied.
Then, he began instructing the traders to operate according to the corresponding trading strategies.
And when the traders within Rongke Investment Company were following suit and buying Kewan Real Estate shares on the market.
As the primary buying force for Kewan Real Estate today.
Su Yi also instantly noticed this capital.
Of course, just like the traders at Rongke Investment Company.
Facing the continuous follow-on buying by Baoneng Group related funds, he was not in a hurry to push up the market.
Because not exposing Kewan Real Estate to the list of hot market stocks and not attracting more active major funds to participate.
Would be beneficial for both him and the Baoneng Group's related increased holding funds.
However, despite the tacit understanding between the two parties in their buying operations.
Yet, as the major market indices in the two cities gradually fell, even experiencing a plunge around 2 PM, Kewan Real Estate, the leading stock in the real estate sector, clearly strengthened against the trend.
Still attracted the attention of many interested investors.
Among them, Yu Zeming, the fund manager of "Noah Real Estate Mixed Selection" product at Noah Capital, one of Shanghai's well-known public offering institutions with deep research into the real estate industry, also noticed the unusual movement in Kewan Real Estate's stock price.
"Kewan Real Estate, recently, clearly shows signs of large funds building positions!"
Yu Zeming gazed at Kewan Real Estate's market trend and exclaimed.
Hearing Yu Zeming's observation, Zhou Yue, as the fund trading team leader, quickly turned his attention to Kewan Real Estate, observed it carefully for a while, and replied,
"Today, the net inflow of major buying funds into Kewan Real Estate has exceeded 100 million yuan. It indeed feels like large funds are building positions, but... looking at the trading patterns of these position-building funds, their willingness to pull up the market is not strong. They should have just started building positions recently."
"There are basically no aggressive large buy orders actively pushing the price up, so the willingness to pull the market is indeed not strong,"
Yu Zeming nodded slightly.
"However, unusual movements in an industry leader, coupled with clear signs of large funds building positions, should still draw attention!"
Zhou Yue nodded and said,
"It seems that the major institutional funds in the market are gradually changing their perception of the real estate sector."
"Macroeconomic policies for the housing market have been relaxed for almost a year,"
Yu Zeming said.
"The expectation among people for a housing market recovery has indeed grown stronger recently."
"I heard that new residential projects in our Shanghai have recently shown a trend of price increases,"
Zhou Yue said.
Yu Zeming smiled and said,
"Exactly, the opening prices of properties in core areas have significantly increased compared to six months ago, and sales are continuously climbing. It seems the bull market in real estate... should be coming soon."
"However, for the real estate sector, the performance of related real estate stocks should lag behind the recovery of the real estate industry and housing prices by at least half a year, right?"
Zhou Yue said.
"According to this lag time, logically... the first half of next year would be the optimal period to strategically increase holdings in the 'real estate sector'."
Yu Zeming said,
"Not necessarily. As long as expectations rise, stock prices always precede earnings feedback."
"So, should we... continue to increase our positions at this level?"
Zhou Yue asked.
Yu Zeming pondered for a while and said,
"No rush. Currently, judging from the market trend and the involvement of major funds, the entire real estate sector trend is still subservient to the 'big finance' sector trend. Without further strengthening expectations for the recovery of the real estate industry, housing market, and property prices.
It is still relatively difficult for the entire real estate sector to move independently of the broader market. Moreover, in terms of the overall sector's market performance.
Currently, only Kewan Real Estate among the stocks has shown some independent strength and signs of continuous involvement by large funds in building positions. Other core industry stocks, such as Poly Real Estate, China Fortune Land Development, and Gemdale Group.
Currently show no significant unusual movements. If we significantly increase our positions at this time, the timing is still a bit early.
At the same time, looking at the overall market sentiment feedback and capital conditions, the tightening of capital liquidity at year-end will also have a significant impact on the broader market trend.
In other words, the Shanghai Composite Index here. It's still relatively difficult to firmly establish itself above 3500 points.
Furthermore, the 'big finance' core theme, after the 'national team' continuously increased long positions during two stock market crashes, its current valuation and stock price level are still at a relatively high-risk position. If capital liquidity tightens, it is highly likely to enter an adjustment phase.
And under the influence of the 'big finance' main theme. The 'real estate sector', which temporarily cannot move independently, will certainly be greatly affected.
Therefore, overall, it would be better for us to observe more and act less at present, maintaining the fund's current holding level and balanced allocation of individual stocks."
"Alright!"
Although Zhou Yue's idea was more aggressive than Yu Zeming's, believing that increasing holdings in the real estate sector might be opportune, since Yu Zeming felt the time was not yet ripe and the risk-reward ratio had not reached a definitive buying point, he thought for a moment, did not rush to contradict, but gently nodded and continued,
"Then let's observe for a while longer."
However, despite their discussion, neither of them rushed to increase their holdings in core real estate stocks.
Nevertheless, many active short-term speculative funds, attracted by Kewan Real Estate's significantly stronger performance compared to the broader market, participated in the stock with a "risk-averse" mindset, even as the two major market indices continued to fall in the late trading session, and even experienced panic selling at one point.
The follow-on participation of these active speculative funds.
Also led to Kewan Real Estate maintaining a strong position at market close.
While major core indices like the Shanghai Composite, Shenzhen Component, and ChiNext Index all fell by over 1%, it closed with a counter-trend surge of nearly 3%.
And in the context of this significant rise, its intraday trading volume also drastically increased.
Compared to yesterday, it increased by approximately 30%.
Of course, regarding this stock's performance, which was significantly stronger than other real estate stocks and the broader market.
People didn't think much of it, simply assuming that foresighted institutional major funds were speculatively positioning themselves for the recovery of the 'real estate industry'.
However, regardless of what people thought.
Thanks to the market downturn and Kewan Real Estate's significant increase in intraday volume.
Su Yi, in his initial operation of building positions and sweeping up shares of this stock, was satisfied to acquire nearly 250 million yuan worth of lower-cost shares.
At this rate of position building.
If he wanted to invest all 2 billion yuan into Kewan Real Estate.
Approximately half a month would be enough.
This was faster than his expected time for building positions.
However, although he acquired relatively satisfactory low-priced shares in Kewan Real Estate.
His heavy positions in several core leading stocks in the 'lithium battery' main sector, however, were crashed by his easily exposed 'Financial Street Fuxing Road' trading seat.
Because he used the 'Financial Street Fuxing Road' trading seat.
To significantly reduce positions and take profits on Tianqi Lithium, Ganfeng Lithium, and Do-Fluoride.
Today, these core leading stocks all closed with significant declines of 5% to 7%, and the entire 'lithium battery' main sector also experienced a massive adjustment with heavy selling volume.
This led to a sharp overall market correction.
And his holding size, amounting to over two billion yuan, incurred an intraday loss exceeding 100 million yuan.
(End of Chapter)