The next day, Monday, February 24th.
The two A-share markets jumped short and opened lower, breaking through the 2100-point mark. The Shanghai Stock Exchange Index dived and opened lower at the opening. The maximum intraday drop fell to -2.60%, and the lowest fell to 2058.79 points. There was a panic flight of funds. The market fell sharply due to heavy volume.
The negative impact of the bad real estate news was superimposed on the weekend. The real estate sector plummeted today, which led to the decline of the banking sector. The brokerage sector also made up for it at this time, and the index was in chaos.
Not to mention, Quantitative Capital fell by the limit again today, with the stock price falling to 137.50 yuan, a drop of more than -31% in three days, and the market value fell below 200 billion and shrank to 192.2 billion.
As of the close, the Shanghai Stock Index fell -1.75%. It closed at 2076.69 points.
…
Come Tuesday, February 25th.
The A-share market once again staged a diving market, with the Shanghai Composite Index falling for the fourth consecutive time. Today, the Shanghai and Shenzhen main board indexes recorded sharp declines of more than -2% and -3% respectively.
Quantitative Capital fell again by the limit today, with the stock price falling to 123.75 yuan, recording three consecutive limit drops, and the market value further shrunk to 173 billion yuan.
Along with the deep correction of the stock index, stocks in the Shanghai and Shenzhen stock exchanges generally fell. The total number of rising stocks did not exceed 200. Excluding ST stocks and unlisted stocks, there were only 25 stocks in the two cities that reached the daily limit, but the number of stocks that fell by the limit reached 100. .
Big A has seen its 100-share limit fall for the first time in the new year. Since 2006, A-shares have basically fallen to the 100-share limit every year, especially in 2008 and 2012. There were particularly many days when the 100-share limit fell.
The Shanghai and Shenzhen main board index fell sharply today, but the ChiNext index next door fell even more sharply, simply plummeting.
The GEM index fluctuated violently today. It rose more than +2% in early trading and hit a record high of 1571.40 points. Then it turned sharply and fell sharply to close at 1472.69 points, a plunge of -4.37%. Of the 345 stocks traded on the GEM that day, 325 The market closed plummeting, with 47 stocks falling by the -10% limit, accounting for almost half of the stocks in the three major stock indexes that fell by the limit.
There was a lot of turmoil both inside and outside the market, with rumors that the property market bubble had burst and the economy was about to face a hard landing.
Real estate has also become the focus of market attention, and it is also a hot spot of general public concern. Some people are happy and some are worried. Those who own houses and those who do not have different feelings. The former naturally hope that the property market will not fall, while the latter hope that the property market will plummet and improve. Car, there is nothing to say if everyone acts for their own interests.
…
Huajia Villa.
At around 16:00 in the afternoon, several luxury cars stopped at the door of the villa, and a young man who came out of the car was Fang Hong.
Today he was warmly invited by Hua Yongming to visit the Hua family. In fact, the Hua family wanted to visit Fang Hong directly at his villa, but Fang Hong didn't really want too many outsiders to come to his private residence. hospital.
"Mr. Fang, please come this way." The middle-aged man who spoke was Hua Yu's eldest brother. He was more than ten years older than Fang Hong, but he was very humble in every word, and Fang Hong was also very polite.
Just kidding, my father Hua Yongming has to be polite when facing Fang Hong.
"How is the old man's health lately?" Fang Hong said casually, and followed Hua Yu's eldest brother into the courtyard while chatting. Hua Yu was not at home, but working at Stars Capital.
It is worth mentioning that Hua Yongming originally wanted his youngest son Hua Yu to take over from him and take charge of Huayang Group, but now the situation has changed and Hua Yu no longer wants to take over.
To put it bluntly, he just doesn't like it.
As a rotating board member at the core level of Qunxing Capital, his influence is much greater than that of Huayang Group, and he can still rotate as chairman in the future.
Hua Yongming also acquiesced. There was one person in the family who was in the core layer of Qunxing Capital. The benefits to the entire family were definitely greater than the disadvantages, so Hua Yongming did not hesitate. As for the Huayang Group, just let his eldest brother take over.
But at this moment, Fang Hong came to the living room to meet Hua Yongming. The guests from both parties took their seats and exchanged greetings. Hua Yu's eldest brother was just a role serving tea to the two of them and could not talk to him.
Hua Yongming invited Fang Hong over today not just to drink tea and reminisce about old times, but because the domestic property market has changed this year. How should Huayang Group decide the next direction? Should it continue to maintain a radical expansion strategy or conservatively shrink? How to choose to change? It was very important, so I invited Fang Hong to come over and seek advice from him.
"...In recent years, thanks to your previous suggestions of 'three highs and one fast', Huayang Group has achieved unprecedented development. Last year, the sales revenue of Huayang Group's real estate sector reached 158 billion, second only to 10,000 yuan." Tahe Greenland has become the third largest real estate company in the country."
When Hua Yongming said this, he couldn't hide his happiness between the lines, and there was no need to hide anything from Fang Hong. He knew that Fang Hong, a young man, was shrewd and well-versed. If he deliberately concealed his emotions, he would secretly laugh at him.
Huayang Group has indeed developed extremely rapidly in recent years. It is the company with the strongest expansion momentum among all domestic real estate companies. It benefits from the development strategy of "three highs and one fast", namely: high debt, high turnover, high leverage, Get the land quickly.
Based on this development strategy, Huayang Real Estate Company has jumped from a local real estate giant in Xincheng to a leading real estate giant with annual sales of 100 billion and ranking among the top three in the industry in just four years. .
The most important thing is that Huayang Group also holds equity in Qunxing Capital, a giant group. This is something that other real estate giants cannot match. It also gives the company extremely high credit. When it goes to the market to raise debt, all the funds will be lost. It’s a rush to buy.
"However, the property market has become increasingly sluggish in recent years. Huayang Group has accumulated a large amount of inventory, and the efficiency of repayment continues to decline. The debt here is still rising, bringing double pressure..." Hua Yongming said, with words. Some concerns have arisen.
"Don't worry." Fang Hong directly concluded, and then said: "The national property market is indeed facing huge pressure to destock. It seems to be crumbling. Some people even say that it will collapse, but it will not collapse."
Hearing this, Hua Yongming looked at Fang Hong: "How do you say this?"
Fang Hong asked: "Real estate, do you think it is the capital market or the real economy?"
After hearing this, Hua Yongming thought for a moment and then said slowly: "According to the nature of residence, it is definitely the real economy. From a downstream point of view, it is not possible to rebuild a set of furniture, add some points, or do a major renovation without moving to a new home. The number of people who do this without improving housing should be a very small proportion. From an upstream perspective, industries such as steel, cement, and machinery are undoubtedly not affected by real estate. It can be said that it has a huge impact on many industries. Of course, real estate is real economy.”
At this point, Hua Yongming changed the topic and added: "But according to the property rights, real estate is also a capital market. Capital drives the price of commercial housing to rise rapidly. Real estate accumulates a large amount of land sales revenue for the government. This wealth is used to build subways. , parks, squares and other public infrastructure have also promoted the growth of the real economy.”
Fang Hong immediately said: "That's right. But capital is profit-seeking. As long as there is a market economy, this truth is correct. Why do funds enter the property market and other capital escape the real economy? Because the real economic environment is not good, and profits Not enough money.”
"Guo Jia team basically won't do it in non-monopoly industries, and withdraws from industries with overcapacity and full competition and leaves it to the private sector. There won't be much profit, but the tax is still not low, plus there are various needs to be managed. There are too many dedicated departments, managers, and staff, and the costs here are higher than taxes, making it unbearable for companies.”
"Capital is not a fool. It will definitely seek advantages and avoid disadvantages. It will naturally give up the real industry that is burdened and make no money and invest in real estate. In the past few years of real estate market regulation, did the funds enter the real estate? No, but entered gold, If fields such as agricultural products participate in the speculation, they will not enter the real economy anyway, because the real economy still does not have a good environment and room for profit. On the contrary, funds will not withdraw from the real economy, but will flow in in large quantities."
Hua Yongming nodded silently, and seemed to understand why Fang Hong allowed Star Capital to enter high-tech fields or emerging industries, constantly spending money in various cutting-edge technology fields and occupying an absolute majority.
Because investing in high technology is pursuing an open source strategy, to put it bluntly, it means making things that no one else is doing, and making considerable profits if you make them, because high technology itself has the advantage of technological monopoly.
But this model cannot be used by others, and it is basically impossible for others to copy it, because it requires a lot of investment and a lot of risks. Investment in high-tech R&D is very expensive. Of course, if it can be converted into results, it will be a big profit, but if it cannot be converted into results, it will be useless. It's all wasted.
Fang Hong dares to play this way because he has a huge amount of capital to cover the sunk costs. If someone else plays his model, he may go bankrupt within a year.
…
(End of chapter)
