My Fintech Empire

Both the main boards of the two cities have been in a bull market during this period, and on the SGX market, the SGX 50 Index has led all major indexes in terms of growth during this period.

Especially on August 25, stimulated by the news that the second phase of the Wealth Fund's capital was oversubscribed, the SGX 50 Index rose by +3.63% that day, breaking through the 2700-point mark in one breath, and closed up +1.86% the next day, pushing the SGX 50 Index further to a historical high of 2751.37 points.

After entering September, the SGX 50 Index's upward momentum slowed down and began to enter a consolidation period, but it also rose to a historical high of 2792 points during the session, almost breaking through the 2800-point mark.

Since the index bottomed out in May, in just four months, its cumulative increase in the range has exceeded 33 percentage points, outperforming the CSI 300 Index by a full position, and the annual cumulative increase has also exceeded 40 percentage points.

Looking back now, the plunge to 2097 points in May was a golden pit and a historical bottom.

The SGX 50 Index has also experienced the longest exponential bull market in the A-share market in the past 20 years. The bull market in 2007 lasted for about a year and a half and peaked at 6124 points, while the epic leveraged bull market the year before last lasted for about a year and remained stable at 5178 points.

SGX has been open for more than a year and nine months since its opening in early 2016, and is still in the bull market. Every time it hits the bottom, many people think it is the top of the universe. As a result, the SGX 50 Index has risen again and again and set a new record.

Many retail investors joked that since switching to SGX, they have been living in fear of rising prices every day.

Although it is a joke, it is also full of a sense of achievement.

The emergence of SGX and the SGX 50 Index have allowed many retail investors to pick up the long-term value investment concept thrown into the trash can again. The earlier the retail investors enter SGX and hold it for a long time, the more they earn.

However, it is worth mentioning that the SGX 50 Index has gathered 50 constituent stocks since its launch, and has implemented three constituent stock adjustments. Some stocks have been removed, and some stocks have been selected. Among the removed stocks, there are some weighted targets of the star system.

For example, ATL Technology and Ruihe Pharmaceuticals, two listed companies, were removed one after another, which also caused the stock prices of these two companies to plummet afterwards and are still being adjusted.

In fact, these two companies are excellent in themselves, but they were still removed.

The reason is not that there is something wrong with the company itself, but that the bottom chips are loosened and cleared. Simply put, the funds participating in the SGX, especially the large-scale funds, either have learned to be content and withdraw after making a profit, or refuse to leave. There will be a force to help him clear.

If the SGX 50 Index wants to go out of the real long bull market for ten years, Fang Hong will not let some big funds refuse to leave for ten years and return liquidity. All of them let a few early interveners eat up the premium. What will the people behind eat?

At that time, you can dump the market recklessly relying on the huge profits. The latecomers are not stupid either, and it is impossible for them to take over such a large selling pressure.

The two companies ATL Technology and Ruihe Pharmaceutical were removed from the SGX 50 Index because the large-scale funds holding them refused to leave. They knew that Qunxing Capital was working hard to create a super long bull on the SGX, so they wanted to win all the way.

This is a typical case of not knowing what is good for you.

Fang Hong or Qunxing Capital is going to create a super long bull on the SGX. This is almost an open secret in a sense among many large institutions in the industry.

In this case, anyone who knows what is interesting knows that it is impossible to let a single institution eat it all, and doing so will also annoy other institutions or large-scale funds waiting to get on the bus.

You have eaten it all, what else can others eat? Qunxing didn’t eat alone.

Therefore, these two companies were removed from the SGX 50 Index, which was equivalent to cutting off most of the liquidity. In addition, the stocks were also smashed by others. After the SGX 50 Index could not be affected, Qunxing also acquiesced, so it did not support the market, resulting in heavy losses for the funds that did not want to leave and a large-scale withdrawal of earnings.

There has never been such a thing as the "invisible hand" of the market economy in this world. Even if there is, this "invisible hand" will be controlled by a powerful force, and the same is true for the US stock market.

In the SGX market, many people know that Qunxing is the one who controls the "invisible hand" behind the scenes, because the knife to cut the cake is in the hands of Qunxing. If you want to play in this place, you have to accept Qunxing's plan to distribute the cake.

These are things that people in the circle have seen through but not said.

The large amount of funds that stayed in ATL Technology and Ruihe Pharmaceuticals and refused to leave later begged for mercy and realized that they were wrong. After a large withdrawal of profits, they obediently cashed out and left. If they still refuse to leave, there are still many ways to deal with it, such as the operation of increasing equity and diluting equity.

Even if you are Sun Wukong, you can't escape from the Five Finger Mountain of Tathagata. No matter how powerful you are, can you beat the one who opened the market?

There are also some retail investors participating in these two listed companies. During the period when they were removed from the Xinzheng 50 Index, some retail investors made money and escaped this disaster, while some retail investors just stood guard at the top of the mountain and were robbed.

It can only be said that it was just a coincidence that you were unlucky and bought at the top of the mountain and were trapped. It is a pure accident. It is also a skill to make a lot of money.

From the perspective of the entire market ecosystem, the same applies to retail investors who hold their positions for a long time. If the number of retail investors is not large, it can be tolerated and ignored, and it will not cause much impact.

However, if a large number of retail investors hold their positions for a long time and are unwilling to stop and sell after accumulating ten times or more of the profits, the impact will not be much smaller than that of a single large-scale fund, and the negative impact may even be greater, because retail investors are more likely to panic and stampede when they flee.

If such retail investors are extremely large in scale and are unwilling to take the initiative to take profits and sell, there will definitely be a force to help them sell.

Obviously, Fang Hong wants all the funds participating in the SGX to take a profit and leave. Don't think that one company will eat it all, leaving those who get on the bus later with nothing to eat and taking all the risks. This is impossible and unsustainable.

This is reflected in the market where funds flow in and out, and few institutions can hold for a long time. Even if they appear on the institutional holding list for a long time, they will find that their positions are decreasing.

Only with such orderly entry and exit, the SGX 50 Index will always rise and the risk will be controllable. Only by continuously raising the center of gravity of chips can the entire market be better controlled. In this way, there is no need to worry about the holders' reckless dumping of the market, because the cost is raised, and those who dare to dump the market recklessly will also face huge losses.

If he enters the SGX 50 Index at 1,000 points, and then keeps holding it, and starts dumping the market when it reaches 10,000 points, he can of course dump the market recklessly, even if it is cut in half, there will still be 5 times the profit. If it really drops from 10,000 points to 5,000 points or even 3,000 points, there will definitely be systemic risks. At that time, he will have to fight to support the market, and the price he pays is unimaginable, especially as the entire SGX market is getting bigger and bigger in the future.

But if he enters the market at 9,000 points, he will not dare to do so when it reaches 10,000 points. Dropping below 9,000 points means that he will also start to lose money.

Therefore, it is not only to distribute the cake and not let a single company eat it all, but also to dismantle the potential risks of the market and not allow a single institution to eat it all. If anyone dares to do so, he will be dealt with.

Every rise in the market is accumulating short-selling energy, and every profit-taking and liquidation by previous holders is a release of short-selling energy.

The short-selling energy accumulated in ten years, released once a year for a total of ten years, is obviously fundamentally different from the impact on the market when it is released all at once after ten years of accumulation.

The former is easily controllable, while the latter can trigger systemic risks if not carefully.

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