Today's A-shares saw a sudden influx of mysterious funds in the afternoon, with several 300 ETFs once again experiencing a significant increase in trading volume. As expected, it was still Central Huijin, which already holds more than 70% of the 300 ETF fund shares, and it was 58% when disclosed in the second quarter...
Have you ever wondered why Central Huijin doesn't buy stocks but instead increases its holdings in 300 ETFs? The off-exchange derivatives are all products corresponding to the ETF's long and short game, do you understand? The future of A-shares will be a pattern of index investment, with long and short battles. Central Huijin is trapped in the market, who can be sure they don't have short positions off-exchange?
There's a new development! Many people are in the dark.
This time, it's still Central Huijin. The current market has only one bull, which is Central Huijin. However, they are also a company and have performance assessments; they cannot afford to lose money. To put it bluntly, they are not entering the market to help retail investors get out of their positions, but to collect bloodied chips, and they also hope for a greater decline in the stock index.
If they can build a position at 2 yuan, why chase the rise at 3 yuan? In fact, Central Huijin's current holding cost is about 3.5 yuan. Deep down, they hope to build a position at 2 yuan, but there are some irresistible factors. If it really falls to 2 yuan, and the Shanghai Composite Index is only at 1500 points, what would that bring?
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Therefore, Central Huijin also looks at the market situation to decide whether to enter the market and also hopes to heavily invest at a lower price. Everyone is in the dark, thinking that someone wants A-shares to rise. The expectations of retail investors are opposite to those of the main force; everyone hopes for A-shares to rise, but the main force hopes for A-shares to be at 3000 points without affecting their long and short game.
If short selling is easy to make profits, then the market will form a joint force, and retail investors themselves are also a force for short selling. Don't say who is smashing the market; everyone is an opponent.
There will be big moves tomorrow on Wednesday.
It is highly likely that there will continue to be a wide range of shocks, with a straight-line lift, and there will be opportunities for short selling again. The Shanghai Composite Index will rebound, but it will not rise unilaterally; it will move upward with fluctuations, not allowing retail investors to get out of their positions.
After trapping everyone for three years, if everyone gets out of their positions, where will the market's profits come from? It must be that everyone has cut their losses before it can rise. Wide range fluctuations, narrow range fluctuations, going up and down like an elevator, there will always be a time when everyone cuts their losses.Perhaps, they won't set new lows, as long as they can devise a plan that doesn't require new lows to make retail investors sell their holdings. Regardless of the market's ups and downs, the future will not allow stock investors to make profits. Why does Central Huijin increase its holdings in the 300 ETF, but not in retail investors' stocks?
It's simple: in the future, stocks will be marginalized, and so will stock investors. The rise or fall of the market index will have nothing to do with retail investors. Is today's surge due to a warming of retail investors' sentiment?
In conclusion, barring any surprises, there will still be significant fluctuations, but indeed, it is now in the bottom area. Holding broad-based ETFs is the most certain, followed by high-quality undervalued stocks. If you're not familiar with specific stocks, it's better to hold an index.
Xiao Fan's strategy is very simple: just hold the index. The original intention of entering the market is to make a profit, not to satisfy consumption. I don't need any novelty; if I can make a profit, I can participate in the Shanghai Composite Index for 30 years without changing my holdings. I have a good friend who has been invested in the Nasdaq Index for 8 years, and I haven't found that he has made less money than anyone else...
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