Private Funds Turn Turtle, Creating Floor-Level Volume
2007/7/13 15:36:38
These past two days, many so-called private funds have started self-examining and retreating into their shells like turtles. With so many turtles around, naturally today produced floor-level volume. In the secondary market, this ID never plays with so-called private funds and has always been most disgusted by them—especially the lowest-tier ones, which are basically con artists through and through, employing every dirty trick in the book. Without a comprehensive cleanup of these people, there can be no healthy development environment for China's capital market.
This ID's view has always been clear: manage your own money yourself. If you truly lack the talent, give your money to a particularly good public fund—preferably an index fund, so at least you won't underperform the index. As for those private funds, their ultimate fate is either to be absorbed or to become transparent and regulated. Additionally, basic knowledge education for new investors must be strengthened—getting fooled by such low-grade scams on such a massive scale is frankly embarrassing for the Chinese people.
The broader market today, despite such a hostile environment, still tested the neckline. The biggest issue right now remains attracting back market sentiment, which requires repeated oscillation to accomplish. Meanwhile, the re-recognition of Chinese stocks' investment value is the ideological foundation for whether a new rally can unfold. The gradual release of mid-year results will help more people recognize the investment value of Chinese stocks. Of course, some theoretical work still requires effort from all sides. Next week, with macro data releases, there will be variables in the market's development—but these aren't the core issue. The key is having a new narrative. With new narratives come new rallies. Everything is merely a creation of mind, and in the investment market, that mind is the narrative.
On individual stocks, it's still the two types I've been emphasizing. In the low-to-mid-priced category, they're all in the process of changing hands or accumulating shares, so they may not have explosive short-term performance. As for CSI 300 stocks, since long-term capital has been consistently tending to them, they'll show rotation. Let component stocks rotate first, then extend to the broader market. Once this virtuous cycle forms, all worries about capital and sentiment become unnecessary. The road is long—let's walk slowly.
Finally it's the weekend again, finally time to indulge and have some fun. Everyone go pursue your pleasures.
Music concert continues on Sunday.