Chapter 68 Insider Information
Monday, June 15th.
Amid the anxiety of countless investors, the stock market opened as usual, and the Shanghai Composite Index opened at 5174 points, setting a new record!
Investors breathed a sigh of relief.
It seems that the news of the strict investigation of on- and off-exchange margin financing last weekend did not affect the A-share market. In the trading room, Liu Bin chewed a piece of bubble gum, blew a huge bubble, and said, "Cao Song, go!"
Cao Song's eyes flickered a few times, and he said, "Young Master Liu, I just got some inside information from a friend in S City. Should we go in and give it a try?"
"What news? Is your friend reliable?" Liu Bin asked vigilantly.
Although he had just entered the stock market, he had already heard the rumors about the pig-killing scams in the stock market. Such insider information was most likely the sickle used by some stock gods to reap the profits of retail investors.
Cao Song's face straightened, and he said, "I wonder if Young Master Liu knows Wang Yawei, the former number one in public funds?"
Upon hearing this, Liu Bin was surprised and asked, "Could it be that your friend and Wang Yawei are acquainted?"
Wang Yawei, the top public fund manager at that time, became famous during the bull market from 2005 to 2007, especially in mid-2007. The Hua Xia Large Cap Select Public Fund he managed took the lead with a return rate of 226%, surpassing the second place by 35 percentage points!
It won the Golden Bull Fund Award, Star Award, Best Performance Award, Best Return Award, and Most Popular Award that year, and gained international acclaim.
Especially in the great bear market of 2008, the fund he managed only fell by -34.88%, ranking second among all open-end stock funds.
You can make money in a bull market and resist falling in a bear market.
Wang Yawei became famous overnight and became the object of pursuit of countless funds, becoming the respected "stock god" by everyone. His company, Hua Xia Fund, grew rapidly, managing nearly 200 billion yuan in funds, becoming the leader of the domestic fund industry.
In order to study and replicate the miracles of the stock god Wang Yawei, countless investors have been closely watching his holdings and studying them, resulting in a number of Wang Yawei concept stocks in the stock market.
Cao Song clapped his hands and said, "As Young Master Liu expected, my friend used to work at a fund company under Wang Yawei. Later, he went private with the stock god, but now he works under Wang Ruyuan, the top private equity investor."
As he spoke, Cao Song pulled out a few photos from his mobile phone and showed them to Liu Bin.
Liu Bin looked intently. In the first photo, he saw a young man in a suit and tie toasting with Wang Yawei in a magnificent hotel. In the other photo, the same young man was sitting in a trading room, and Wang Ruyuan, the top private equity expert, seemed to be guiding him in his work.
This person seems to be from a prominent background.
Cao Song then continued, "Mr. Liu, my friend Xiao Kai went to Yinzhijie for research a while ago. While communicating with the chairman, he accidentally got some shocking news: Yinzhijie's internet insurance license is about to be issued!"
"Internet insurance license?" Liu Bin was stunned and a little confused.
When will insurance be available online?
Cao Song explained:
"Young Master Liu, you're also aware that the current national policy is about mass entrepreneurship and innovation. Right now, the hottest trend in China is the mobile internet industry. Alipay and WeChat Pay dominate mobile payments, with thousands of groups competing fiercely against each other. In internet finance, Yu'e Bao has exploded onto the scene, garnering tens of millions of users in just a few months. And now there's the money-burning taxi war between Kuaidi and Didi. To snatch customers, they're offering free money to anyone who downloads their apps..."
"The mobile internet has completely revolutionized traditional industries, and internet insurance is the next big thing. After the license is issued, Yinzhijie will be the fourth company in China to obtain an internet license. In the future, selling insurance will no longer require hiring people and spending money on door-to-door sales and recruiting customers. With just a click on your phone, you can buy. This saves manpower and various rental costs... As a result, the prices of insurance sold will be very affordable, which will directly revolutionize the traditional insurance industry, just like Yu'e Bao revolutionized bank wealth management! Its future performance is bound to explode!"
After listening to it, Liu Bin opened Yin Zhijie's K-line chart and basic information, and studied them very carefully for more than half an hour.
After reading it, I took a deep breath.
This stock is truly a great bull stock. In just eight months, it soared from around 10 yuan to 100 yuan. Various institutions, public funds, and private equity funds have gathered in it. The private equity queen mentioned by Cao Song is among them, and the fund Wang Yawei founded after he went private has also appeared in it.
The concept of this company is also the most popular one.
It began to develop Internet finance in 2013 and launched the personal credit reporting company Huadao Credit. In the same year, it established Piaolian Financial Services Company with United Financial. In 2014, it acquired Beijing Yimei Softcom Company and entered the big data business... In 2015, it established a health management company with Pianzihuang.
Gazing at its dazzling concept and breathtaking candlestick chart, Liu Bin licked his lips, his heart pounding. Cao Song continued, "Look, Young Master Liu! Just since the resumption of trading on May 22nd following the private placement, it's hit six consecutive daily limit increases, nearly doubling its share price! This stock has risen 41-fold from its low point. It's the leader among internet companies. Compared to it, Shanghai Steel Union isn't even worthy of carrying their shoes!"
“In the future, if internet insurance licenses are issued, there will definitely be another wave of market activity!”
"Young Master Liu, the Shanghai Composite Index opened at a new high today. If the index reaches 6,000 points, or even 10,000 points, it will definitely lead the way! Set new highs!"
Liu Bin looked at the fluctuating stock price of Yinzhijie, as if he had already seen it heading north towards two hundred yuan.
However, when he lowered his head and looked at Cao Song, he was still a little worried, so he cautiously reminded him: "Although we have inside information, we still have to be cautious. In terms of operation, you should still use half of your position to roll over T+0 and do intraday short-term trading to prevent the main force of this stock from fleeing and crashing down."
Cao Song curled his lips, raised his head, turned into a smiling face, and said:
"Don't worry, Mr. Liu. Look at this stock. Even after six consecutive limit-up days, the turnover rate is still around 2%. How can the main force flee? Let me tell you, what we should worry about now is not the main force fleeing, but the continuous limit-up and inability to buy in."
"Mr. Liu, this information is not groundless. This is my friend's fund qualification certificate, and the audio recordings my friend made during his research..."
As he spoke, Cao Song showed him Xiao Kai's fund qualification certificate and a recording.
In the recording, the chairman of Yinzhijie said that the company has learned from an insider of the China Insurance Regulatory Commission that the company's Internet insurance license will be issued in the next few days.
In terms of news and even some company fundamentals, institutions and public and private equity funds, with their strong financial and human resources, are not on the same track as ordinary retail investors.
There are a lot of insider information, a lot of restructuring information, and a lot of unknown corporate strategies, which are far more than what retail investors know.
To a certain extent, the two are not heavyweight players at all.
This is also the reason why many retail investors buy funds, hoping to rely on the strong investment capabilities of fund managers to bring themselves excess returns.
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