In the stock market, those stocks with strange and bizarre stock price movements are usually called "demon stocks". They move against the broader market or common sense, and are completely inconsistent with the basic laws of technical analysis.

Demon stocks are obviously more abnormal than other stocks, unreasonable, and difficult to understand. It is clear that this listed company is losing money, but it has repeatedly pulled out the price limit, and it is clear that the company's stock has not reached such a high price, but it has risen very high.

On May 18, 2006, the new IPO regulations came into effect. On 25 May 2006, the IPO, which had been suspended for more than a year, began to restart today. On the same day, as the first stock after the resumption of new stock issuance, China Industrial International was speculated after listing, the issue price was only 7.4 yuan but was pushed to a high point of 50 yuan by funds, with a maximum increase of 576%, and a one-day turnover rate of 94.05%, but its stock price skyrocketed, and then fell continuously for five trading days. The epoch-making China Industrial International was ruthlessly speculated by the funds that had been held back for more than a year and had no new shares to play, and even Guanghui Investment participated in it.

On June 19, 2006, one year after the share reform, a part of the restricted shares of Sany Heavy Industry obtained the right to circulate, and the lifting of the ban on "small non" began.

Small non is a unique term of the Celestial Empire, less than 5% of the company's shares held by non-tradable shareholders are called small non, and more than 5% is big non. The lifting of the ban on small non-tradable shares means that this part of the non-tradable shares can be listed and circulated. The lifting of the ban on small non-profits is the inevitable result of the share reform and the prelude to the era of full circulation. According to the regulations, non-tradable shareholders can sell 5% of their shares one year after the completion of the share reform (holding less than 5% can sell all of them). The lifting of the ban on small non-profits has brought considerable impact to the market. At the same time, those who hold this part of the stock can cash out and get the benefit of real money, rather than paper wealth. At the same time, the lifting of the ban also caused a wave of impact on the stock market, which has been rising since the beginning of the year, ushered in a correction in June, but began to rise rapidly in July.

After that, under the backdrop of rapid economic development, equity division reform, RMB appreciation and other good news, the Shanghai Composite Index continued to rise, and by September, the market index had risen by 80% compared with the beginning of the year, and this upward trend has not changed at all.

The heat of the stock market has rejuvenated the long-suppressed shareholders of the Celestial Empire, and they have finally tried to make money.

"Mr. Jiang, so far, the market value of the stocks we hold has reached more than 7 billion, and the book profit has exceeded 3 billion, almost doubled," Guan Weidong said.

The market has risen by eighty percent, and the income of Glorious Investment has only doubled, which does not look very amazing. But considering the scale of the capital invested by Korn Ferry, it is already good to be able to double the return. After all, if you have 100,000 yuan, you want to appreciate to 500,000, and you have 1 billion to appreciate to 2 billion, which is actually easy to play.

In the stock market, small-scale funds can be operated flexibly and obtain higher returns. Large-scale money, unless you are a banker, or you have to invest in blue chips to make a profit.

In the stock market, investors refer to the stocks of large companies that occupy an important dominant position in their respective industries, have good performance, are actively traded, and have good dividends as blue chip stocks. These stocks are well-managed, have stable profit-making ability, and return shareholders year after year. Such companies have the ability to make profits in both boom and downturn times and are less risky.

Importantly, the market capitalization of blue-chip stocks is generally relatively large and can withstand the toss. The majority of the stocks held by Korn Ferri Investment Finance are blue-chip stocks.

"It's not bad, tell everyone, work hard, and give everyone a big red envelope at the end of the year", Jiang Hui said with a smile.

"Those people probably regret that they chose a high base salary + low commission salary model at that time."

"You are responsible for your own choices, but in order to take care of everyone's emotions, our red envelopes will satisfy them."

"Mr. Jiang, the investment harvest of our oil futures is also very impressive. Now there are $1.5 billion in income on the books, and if it weren't for some losses in the last month, it is estimated that it would have exceeded 2 billion."

"In the next few months, I think oil prices will continue to pull back for a while, so that everyone can operate as short selling, and we will go long again after 2006."

In August 2006, the price of oil was close to $80 a barrel, a new high, but in the following months it slowly fell back to more than $50. Then, from January 2007 until the subprime mortgage crisis, oil prices almost doubled or tripled, which is really frightening.

"The financial market is making money so fast, it's no wonder that the financial industry has always had the highest salaries."

"It's fast when money comes in, and it's faster when it's gone. It's like that kind of high-leverage futures, if you accidentally blow up your position, then you won't have a penny."

The so-called liquidation refers to the situation that under certain special conditions, the customer's equity in the investor's margin account is negative. When the market changes greatly, if the vast majority of the funds in the investor's margin account are occupied by the trading margin, and the trading direction is opposite to the market trend, it is easy to liquidate the position due to the leverage effect of margin trading.

"Indeed, if nothing else, our company alone has lost two or three billion US dollars in oil futures speculation in the past month, if it weren't for the fact that we made more money in front of it, and the leverage was not so high, it is estimated that we would have lost more."

"The financial industry is not for ordinary people, if I am not very optimistic about this wave of market, I have no intention of speculating in stocks and futures."

"This year's stock market is indeed crazy, and my colleagues in the finance department can't believe it."

"In the past two years, you have paid a little attention to the affairs of the financial department, and we will still focus on the real industry and make money in the long run."

According to Jiang Hui's plan, in addition to the Internet, an industry where virtual and physical industries are intertwined, the rest of the business of Guanghui Group is mainly industrial. Guanghui drones, Guanghui mobile phones, Guanghui automobiles and related industries are all physical industries.

It is said that the real industry is difficult to do, and the profit of the real industry is low, but in fact, in Jiang Hui's view, this is all relative. Has anyone heard companies like Intel, Apple, or Lockheed Martin complain about how hard it is to do in the physical industry?

The real industry that will find it difficult to do must be an enterprise that lacks core competitiveness. In the future, with the continued development of the Celestial Empire's economy, there must be many small bosses of the Celestial Empire who are constantly complaining that labor is too expensive, the price of materials has risen, and taxes are too high. No matter how expensive your labor is, is it expensive for European and American companies? The price of materials varies greatly from place to place around the world, and as for taxes, the so-called high ones are also relative.

Many enterprises in the Celestial Empire have fallen into such a misunderstanding, that is, they are engaged in the production of such products when they see what products are highly profitable, so they do food today, sell cement tomorrow, and operate real estate the day after tomorrow, and as a result, the enterprises have no core business and cannot withstand market risks.

In the final analysis, there is still a lack of core competitiveness.

(End of chapter)