In May 1987, driven by the bull market in the global capital market, the Hong Kong stock market was also hot, and the Hang Seng Index approached the 3,000-point mark. This is much higher than the previous bull market's high of 1,810 points, and the valuations of many stocks in the market are as good as the bubble in the last bull market.

At the same time, the market has long forgotten the painful lesson of falling to 676 points four years ago, and the whole market is bullish.

Many investment experts have listed the valuations of stock markets around the world, believing that the valuation of Hong Kong's stock market is not expensive in the world. However, they forget that most of the money in the Hong Kong market is not local long-term money, but overseas hot money. Once the global market is in turmoil, peripheral markets such as the Hong Kong stock market will definitely be the first to be abandoned, and overseas capital will instinctively withdraw investment funds from Hong Kong and invest in the more familiar local market. Even if it is a risk avoidance, it will choose to be local, not offshore.

Because the index has risen more than fourfold from its lowest point, many stocks have even risen more than tenfold. The whole market is rising, and people have begun to dig into the so-called "stagflation concept stocks". The so-called stagflation concept stocks, that is, the rise in the big bull market is lower than the average, investors are stimulated by several times, ten times or even dozens of times the crazy rise of big bull stocks, but those stocks are too expensive, whether it is for safety reasons, or in the imagination of making up for the rise, many people have begun to study those stocks that have risen less than the index.

In this case, Aika Electronics Co., Ltd. announced its IPO listing, issuing 250 million new shares, with a sky-high price of HK$30 per share. The total financing scale reached 7.5 billion Hong Kong dollars, which is still snapped up by the entire market!

Founded in '72, the company started as a humble workshop of the Yung family, with less than 100 employees, and like other low-end electronics factories in Hong Kong, it mainly focused on low-end and cheap electronic watches.

At the end of the 70s, Rong Jian, a descendant of Rong's mainland branch, came to Hong Kong, liquidated the shares and dividends of some of the enterprises that his father partnered with the Rong family in Hong Kong, settled the principal of one million yuan, purchased the electronics factory of Rong's in Hong Kong, and served as the general manager and major shareholder of the company. In just a few years, the descendants of the Rong family from the mainland have transformed from a rookie in the business world to an elite in the shopping mall, without insulting the reputation of a famous business family in modern Chinese history, and Aika Electronics has gradually developed into an electronic watch manufacturer with a capital of millions of yuan.

However, this is only a prologue to the brilliance of Ekka. The biggest opportunity for these small enterprises is that Mr. Rong Jian got acquainted with the business myth Lin Qi in 79 years, and quickly earned more wealth by giving Lin Qi a scientific electronic calculator. Subsequently, Lin Qi also favored this collaborator, and continued to hand over more electronic foundry business, including LCD panels, rechargeable batteries, etc., to Aika Electronics. Because of the rocket of the new entrepreneurship department, Aika Electronics has achieved a miraculous growth rate.

From 79 years to the present, in just seven years, the turnover of Aika Electronics has increased from 3 million yuan to 11.2 billion Hong Kong dollars in 86 years, and in the first five months of 87, the revenue of Aika Electronics has exceeded 6 billion, continuing to maintain rapid growth. At present, Aika Electronics is already the world's largest manufacturer of rechargeable batteries, the batteries used in the handheld computers and laptops of the new entrepreneurship department, the mini four-wheel drive car batteries of the new electric toys, and the TV remote control batteries of the new Apple Company are all supplied by the Aika Electronics Company!

In the prospectus of the listing, Aika Electronics has clearly stated the development direction, and the future will be based on the battery industry, and the technology and application of the battery industry will be deeply explored. In addition, the LCD business is also another growth point of the company, and the products are stably supplied to Zhangyu and Pangu notebooks.

According to the prospectus, after the company raised HK$7.5 billion, the total market capitalization of the company will reach HK$37.5 billion.

Its 86-year profit has been close to 2 billion yuan, in the first five months of this year, the profit has reached 1.2 billion, and the profit is expected to exceed 3 billion yuan in 87 years. Based on the '87 forecast earnings level, the stock is currently trading at a price-to-earnings ratio of only 12 times. Compared with the current average price-earnings ratio of 22 times in Hong Kong'......s Hang Seng Index, it is very cheap!

In Hong Kong's "Hong Kong Economic Journal", an article written by a well-known investor quickly gained the attention of many investors.

The major investment banks, brokerages and bank wealth management channels in Hong Kong basically have the IPO stock of Aika Electronics.

Therefore, a lot of capital in Hong Kong even borrowed money to use leverage to increase the probability of winning the lot.

As a result, the subscription scale of Aika Electronics is 50 billion Hong Kong dollars, and many people not only use their own principal to play new shares, but also borrow money from financial institutions for a short period of time to increase leverage to subscribe for new shares, which also makes Aika Electronics IPO listed, and the frozen funds have reached 50 billion, breaking the record of the scale of frozen funds in the entire Hong Kong IPO!

There were too many new funds, which drained a lot of liquidity in the market, so that after the Hang Seng Index broke 3,000 points, it turned around and fell by more than 60 points.

Of course, this did not affect investors' confidence in the IPO.

On June 8th, Aika Electronics was officially launched. On the first day of listing, the opening stock price exceeded HK$38 per share.

After that, although investors encountered a short period of profit-taking, it soon began to rise again, and the stock price broke 60 Hong Kong dollars by the close. The market capitalization has hit the highest record in the history of the Hong Kong stock market - 75 billion Hong Kong dollars!

This achievement has made many stock recommenders and investors gain the name of the god of stocks. The whole of Hong Kong does not know whether there are thousands of new stock gods or tens of thousands of new stock gods, of course, the bubble of most stock gods will be punctured next time.

In fact, the valuation of the listing of Aika Electronics is 37.5 billion Hong Kong dollars, which should be reasonable. However, the market capitalization of more than 75 billion Hong Kong dollars is indeed a little overestimated compared to some undervalued big blue chips in the market.

For example, HSBC, the leader of the Hong Kong stock market, has only exceeded 40 billion Hong Kong dollars, while the annual profit of HSBC has exceeded more than 3 billion Hong Kong dollars!

Basically, it is the most famous value investment target in the Hong Kong market, which has maintained a growth rate of 10 times in 10 years, 100 times in 20 years, and even 1000 times in 30 years since the Hang Seng Index was formulated in the 60s.

It wasn't until the 21st century that HSBC gradually lost its previous growth myth and became a mediocre company. But even so, HSBC is still much better governed than most banks in Europe, the United States, and Japan.

However, compared with the growth rate of Aika Electronics, many investors have chosen to abandon HSBC and go to the upstart Aika Electronics!

The market value of 70 billion may be a bit exaggerated! However, Lin Qi is a shareholder and nobleman of Aika Electronics, and he also likes to provide strategic support for the enterprises in which he participates.

For example, Lin Qi has already arranged to wait for Aika Electronics to go public and raise funds, and obtain funds to invest in rare metal deposits such as lithium, cobalt, and nickel on a large scale. In the coming decades, whoever is better in the battery industry will definitely need these basic materials.

After mastering a large number of raw materials, it is equivalent to an invincible position in the field of rechargeable batteries. Moreover, investing in these deposits is enough to make their future growth more certain!