Rebirth of the Capital Legend

Meanwhile, influenced by the stock price of Beijiang Jiaojian, which continued to decline and showed signs of a potential collapse, the overall investment sentiment in the major infrastructure sector began to lean more towards a bearish direction, and the short-term speculative sentiment in the market was also affected.

Other popular stocks in the main sectors include Shuguang Shares, Tinci Materials, Changying Precision, and many others.

They also began to show patterns of high volume with stagnant price increases, or high volume with declining prices.

As for the weaker sectors such as internet software, internet applications, and film and television media, some concept stocks were not spared from the influence of the stock price movement of Beijiang Jiaojian.

Stocks such as QuanTong Education, LeTV, Netspeed Technology, Baofeng Technology, Huawen Media, and Huawen Online—a large number of previously hyped but now largely forgotten stocks—are experiencing accelerated declines amidst a rapid drop in short-term market sentiment.

Even the worst-performing Baofeng Technology is now approaching a 7% drop.

"Oh no, oh no! I bought Beijiang Jiaojian stock at the peak this morning, what am I going to do now? Am I going to be stuck at the top again?"

Amidst the current continuous decline in the share price of Beijiang Jiaojian, this is the topic of discussion and commentary in the stock market.

Some retail investors who bought at the high price in the morning couldn't help but wail at this moment.

"I expected this stock to fluctuate throughout the day, but I didn't expect it to be so weak so soon after the market opened. Judging from the chart pattern, it's unlikely that Beijiang Jiaojian will close in positive territory today."

"Don't even mention a positive close. I think it would be a blessing if it didn't hit the daily limit down at the close. Generally, for concept stocks that are driven by short-term funds, once the momentum of the continuous speculation wears off, the stock price will inevitably plummet. It's just that some speculative funds within this stock haven't finished selling off their shares yet, so there hasn't been a concentrated large-scale sell-off."

"According to you, this stock is guaranteed to hit its daily limit down today?"

"It's hard to say. It depends on the overall market sentiment and whether there are any positive news."

"It shouldn't be that bad, right? The market actually corrected yesterday, and today in the Hong Kong stock market, stocks related to the entire real estate industry chain are still surging. There's no reason for the domestic infrastructure sector to just collapse like that."

"A complete collapse is unlikely; I think it will be more of a mild adjustment."

"Let's look at the stock trends of Oriental Yuhong and Conch Cement. If these two stocks can hold steady, then the overall sentiment of the major infrastructure theme will not collapse. In that case, even if there is a concentrated sell-off by profit-takers in the market, the stock of Beijiang Jiaojian should not be too badly affected, and it may even close in the green."

"Forget about a positive close; I just hope I can minimize my losses today."

"Damn it, when Beijiang Jiaojian's stock crashed, it dragged down my Shuguang Shares too."

"As I've said, this stock is the core of the market sentiment. If Beijiang Jiaojian's stock doesn't perform well, then other stocks won't perform well either. Those of you who trade other leading stocks in other sectors, stop gloating. It's good when everyone is doing well."

"Yes, the entire short-term ecosystem of the market is actually interconnected."

"Yes, if it collapses, everything collapses."

"Looking at the indices, it seems they can hold up. The Shanghai Composite Index hasn't fallen much, but the A50 Index is a bit disgusting. While the Shenzhen Component Index and the ChiNext Index continue to decline, it's actually still going up."

"That's not right. Major infrastructure stocks are falling, and major consumer stocks are falling too. Who's pulling up the A50 index?"

"Large-scale financial services? The banking sector?"

"Although the banking sector didn't fall, it didn't rise either; the market wasn't driven by banks."

"Just look at the constituent stocks of the A50 index and you'll see. Currently, the main drivers of this index's upward movement are the two oil giants, as well as Baosteel, Shenhua Coal, Yangtze Power, and other stocks."

"Electricity and the two oil giants, I really didn't expect that."

"The rise in power and the two oil giants is easy to understand. After all, when short-term speculative sentiment collapses, market risk aversion will inevitably rise. It is very reasonable and logical for various funds to flock to defensive sectors such as banks, oil giants, and power. What about coal and steel?"

"I don't know, but the coal and steel sectors seem pretty strong today."

"It's not just that these two sectors performed well today; they also did quite well yesterday, generally outperforming the broader market index."

"Is this a sign of a coal industry upturn?"

"The non-ferrous metals sector hasn't moved much. To be honest, today's market is a bit chaotic and hard to understand."

"It's still a market rotation, it's just that today it's rotating from popular sectors to less popular sectors."

"If the A50 index rises, then small and mid-cap stocks in the market will definitely suffer. Sigh... Today is another day of huge losses."

"I'm used to it. What day doesn't I lose money?"

"We're losing money every day, when will this ever end?"

"So, does this mean that the stock of Beijiang Jiaojian really isn't going to do well today?"

"It's probably not going to get better, right? Look at the stock's chart. In just over 20 minutes since the market opened, the main funds have already seen a net outflow of more than 2300 million. I estimate that by the close of trading today, the net outflow of main funds for this stock will be at least 5000 million."

"Does that mean the major funds that were previously involved have all sold off and left the market?"

That's roughly the idea, so don't get your hopes up for this stock.

"There's no other way. We can't sell them now, since I just bought them this morning. There's really nothing we can do but watch them go."

"I hope it doesn't drag down my Taihe shares."

"That's hard to say. Taihe Shares hit the daily limit too quickly this morning, which isn't a good thing, as there wasn't enough turnover."

"Compared to the opening bell, the number of buy orders for Taihe Shares at the daily limit has decreased significantly."

"I have a feeling that Taihe Shares' stock is going to crash today."

"Don't let it crash. If this stock crashes today, it will be very damaging. It will definitely open lower tomorrow, and it will be difficult to get out safely."

"It shouldn't crash, right? After all, the funds that bought Taihe Shares this morning generally had high costs. If it crashes, wouldn't that bury all the money that bought in?"

"How often has this happened that all the major funds involved in the follow-up rally were wiped out?"

"That's right. Take Shuguang Shares yesterday, for example. Didn't it wipe out all the money that bought in during the morning session?"

"Can you even compare them? How many consecutive limit-up days with low trading volume did Shuguang Shares have before its price plummeted? How many limit-up days has Taihe Shares had so far?"

"The two logics are different, so naturally the locations where the boards break down will also be different."

As these people continued their discussion...

As everyone was discussing, Beijiang Jiaojian had fallen further, completely erasing all of its intraday gains. At the same time, Taihe Shares, the hottest stock in the real estate sector today, saw its limit-up buy orders drop rapidly from over 20 lots to below 10 lots.

Moreover, at the same time.

The stock, originally named Shuguang, had risen rapidly and turned positive, once surging to a gain of more than 3%.

At that moment, its stock price also quickly plummeted and fell back to near the flat price level.

However, Tianci Materials, which initially followed the fluctuations of Shuguang Shares, has now formed an independent trend. During the high-volume oscillation, the stock price has actually risen against the trend and returned to the vicinity of the intraday high.

Then, before anyone could react further...

At 9:54 a.m., on the trading screen of Taihe Shares, a total of 7 lots of buy orders were wiped out by the main selling pressure in the market, causing the stock price to plummet from its limit up price.

Immediately afterwards, at 9:55.

The stock of Beijiang Jiaojian plummeted rapidly, from near the flat line to a 4% drop.

"Oh my god, we're completely doomed."

Seeing the sudden collapse of Beijiang Jiaojian's stock, and the rapid decline of small and mid-cap stocks across the market, along with the amplified drops in the Shenzhen Component Index and the ChiNext Index, the numerous retail investors who had been engaging in relatively rational discussions just moments before suddenly panicked.

As a result, a large number of retail investors panicked and sold off their shares.

The concentrated panic selling pushed the stock price of Beijiang Jiaojian down to nearly 6% in just one or two minutes.

And at the same time, there was the stock of Taihe Co., Ltd.

Its stock price also quickly fell back to the 6% gain level.

As for Shuguang Shares, its stock price also plummeted, returning to the level of a 2% drop at the start of trading.

Of course, at this moment, the most tragic and severely injured was Baofeng Technology, a stock in the film and television media sector.

This stock, without any significant negative impact.

It plummeted straight to the daily limit down.

However, this brief period of concentrated panic did not have time to spread on a large scale and over a wide range to all major sectors of the market.

The next moment, the stock of Beijiang Jiaojian, the core leading stock that reflects the sentiment of both markets, moved upward.

Then, a continuous stream of large buy orders (tens of thousands of shares) began to emerge, indicating funds were buying at the bottom.

This wave of bargain-hunting funds moved with lightning speed, pulling the stock price of Beijiang Jiaojian back from its slump to near flat in just one or two minutes, creating a brief V-shaped recovery.

Then, when the market trading time reached 10:00 AM.

With this wave of bottom-fishing led by major speculative funds, a large number of followers began to buy in and take over the position.

As a result, after massive turnover and extreme volume changes, the stock of Beijiang Jiaojian began to slowly recover its losses and once again showed the strong posture of a core leader in the two markets.

As Beijiang Jiaojian stock recovered from its decline, it regained its leading position.

Taihe Shares, Shuguang Shares, Baofeng Technology, LeTV, Netspeed Technology, Shougang Group, Changying Precision, Huaxin Cement, Huawen Online... Nearly a hundred concept stocks in the market have begun to move in the same direction, showing a slow recovery trend.

Among these, Tinci Materials' stock has shown the strongest recovery.

During the recovery of the decline in Beijiang Jiaojian, this stock not only reached a new high, but also made a strong upward breakthrough, expanding the gains to 5%, showing a strong momentum to hit the daily limit.

As these leading stocks in the concept and theme sectors follow the recovery trend of Beijiang Jiaojian, bullish sentiment and follow-up buying funds are rekindled.

In the entire market, there are many small and mid-cap stocks and micro-cap stocks whose related trends are not as rapid.

At this time, a brief upward trend also emerged.

Furthermore, following this wave of panic selling, the active capital flow in the entire market has accelerated and begun to concentrate on many small and medium-sized stocks and micro-cap stocks.

Of course, this is due to the relative scarcity of market liquidity.

In the face of a sudden style shift in the market.

The A50 index, which had been performing well, began to decline, and the constituent stocks of the A50 index in the petrochemical, power, steel, and coal sectors also began to suffer losses.

A large amount of active capital flowed out of heavyweight stocks.

The market is once again converging on small and mid-cap stocks, which is driving the Shenzhen Component Index and the ChiNext Index to rebound and recover from their losses.

"Holy crap, the market trend has changed several times in just half an hour!" Noticing that after a deep correction, Beijiang Jiaojian stock quickly recovered its losses and started to rise again, Li Jinshi, watching the market closely in the 'Fushan Group's' main speculative trading group, said incredulously, "I didn't expect Beijiang Jiaojian to recover so quickly after its flash crash. Leading stocks really do have multiple lives; it wasn't completely crushed. Judging from this... this stock will most likely continue to rise."

"It's not just Beijiang Jiaojian stock," Chen Guiyun chimed in after hearing Li Jinshi's words. "Didn't you notice? As Beijiang Jiaojian stock quickly recovered its losses, the entire market's small and mid-cap stocks suddenly seemed to come alive. I have a feeling that there will be a general, short-term rebound in small and mid-cap stocks. The market's short-term trend is adjusting rapidly."

"Yes, that's true." Upon hearing Chen Guiyun's words, Liao Guoxiang, who had also been paying close attention to the market trend, nodded in agreement and replied, "The stock of Beijiang Jiaojian is really the current emotional focus of the entire market. It's really strong, indirectly driving a shift in the short-term market style."

"So, these heavyweight stocks in the market are going to take a break for a while?" Li Jinshi asked.

Chen Guiyun said, "It's highly likely that Shi will need to take a break for a while. There's no market that only goes up and never down, nor is there a stock that only goes down and never up. The small and micro-cap stocks in the market have indeed fallen too much at this point. Taking advantage of Beijiang Jiaojian's efforts to repair short-term market sentiment, and also taking advantage of the rapid spread of panic just now, a wave of short-term profit-taking has been cleared out. For a number of small and micro-cap stocks, there should be an oversold rebound."

"There will be a rebound after the oversold conditions, but its sustainability is still questionable," Liao Guoxiang said. "Moreover, although Beijiang Jiaojian stock quickly pulled itself back from the deep waters today, it will be quite difficult for it to continue its previous consecutive limit-up trend and quickly expand further upward. Whether the market's short-term speculative sentiment will further concentrate on small and micro-cap stocks depends on the stock's performance and the sentiment feedback."