My fintech empire.

Chapter 1228 [SGX stock pool begins to take shape]

In the coming days, the A-share market will have seven trading days left before the Spring Festival.

The New Securities 50 Index, with both volume and price rising, stood above the 2000-point mark, directly confirming that 1933 points was the effective bottom support level. It also created an upward gap, and some careful people also found that the New Securities 50 Index seemed to have its own unique personality.

The main board index next door has the habit of "filling gaps", while the Xinzheng 50 Index here is just the opposite. It has almost no habit of filling gaps downwards, and often forms gaps when choosing the direction at some key positions.

The gaps at several key points before were like this. Many people who were obsessed with filling gaps at key positions regretted it.

In the next seven trading days before the holiday, the market trend of the Xinzheng 50 Index once again demonstrated that in this market it is best not to blindly believe in the bad habit of "filling every gap" on the main board next door, otherwise you will miss out on the market and end up with a swollen thigh.

这七天时间，新证50指数走出七天六阳，其中春节前的最后五个交易日直接走出了五连阳行情，在这七天的日线分别走出+0.53%、-0.66%、+0.91%、+1.01%、+0.52、+0.61以及在节前最后一个交易日收涨+1.07%，收报2086.05点。

Not only did the annual line of the Xinzheng 50 Index turn from green to red, reversing the consecutive declines at the beginning of this month, it also set a new high for the new year. The annual line increase in 2017 expanded to 5.1 percentage points, while the annual line of the Shanghai Composite Index in the same period was 2017 percentage points. The Xinzheng 1.79 Index can be said to be leading the main boards of the two cities.

It is worth mentioning that Farm Supermarket, one of the star companies under Qunxing Group, completed its registration and listing on the SGX before the Spring Festival. The company was officially listed on the SGX on Monday, January 1, becoming the first super large-cap stock to be registered and listed on the SGX in the new year. Its issue market value reached a huge amount of 23 billion, and its IPO raised 3120 billion yuan.

The listing of this company has been expected for a long time. Last year, K God organized a live-streaming sales event for the agricultural products supermarket. During the live broadcast, he mentioned the plan to go public. However, this company is a serious blue-chip stock with a heavyweight, a typical traditional enterprise, and not a high-tech growth stock.

Many stock investors also remember that when K God was live streaming, he played the role of "investment advisor" and clearly stated that the growth space of the agricultural products supermarket company was limited, and its stock price was unlikely to rise several times or even dozens of times like companies like Matrix Quantum and Toutiao.

In the future, dividends will be the main distribution method. Another meaning of dividends is to tell holders that the company's future development space is limited, and profit margins are also limited. After maintaining the basic foundation and making money, most of the money will be distributed directly.

Therefore, it is suitable for large-scale, stable funds at the far end to hold for the long term and receive cash dividends. Retail investors have small funds and cannot receive many cents in dividends. The equity of a retail investor is not high either, and the average annual increase may be around 10 to 15 percentage points.

If the stock price fluctuates too much in the short term and may remain sideways for a year, it would not be suitable for retail investors to hold it, and it would be difficult for them to tolerate the stock price remaining sideways for a year without any increase.

This stock is almost tailor-made for long-term large-scale stable funds. It can be held for a long time in units of years. Even if the stock price fluctuates sideways for a year or even two years, dividends can still be received thanks to the large-scale funds. This type of funds mainly pursues stability and preservation of asset prices. They are willing to hold such assets if they can outperform the rate of inflation and national debt expansion, and they will be even happier if they can obtain stable dividends.

Different types of funds in the market have different pursuits and strategy styles, and naturally choose different asset targets.

……

During the Chinese New Year, the hottest topic on the Internet has once again become the 10 billion red envelope carnival. This is the third consecutive year that God K has personally paid out of his own pocket to spend 10 billion red envelopes, and it has become an annual carnival feast.

There was also good news during the year. The US dollar index indeed weakened and fell below the $100 mark.

The offshore RMB exchange rate against the US dollar has also rebounded to below 6.8 again. As long as the US dollar index falls, the RMB exchange rate will be appreciated in disguise even if it remains unchanged.

However, for some runners, colonizers, and insiders who want to transfer their wealth overseas, even if the RMB appreciates to within 6.0, it will not shake their determination to transfer their wealth overseas.

……

It is now February, the annual holiday is over, and people across the country are returning to work. The A-share market also opened as scheduled after the holiday.

The first trading day after the holiday did not continue to rise, but closed in the red. However, after adjusting for two or three days, it strengthened again. Starting from Wednesday, February 2, the Xinzheng 8 Index led the three major A-share trading markets to rise across the board.

新交所万亿平准基金入市了，新证50指数一口气再次收出五连阳，分别上涨+1.09%、+1.31%、+0.93%、+1.46%和0.35%，指数推升到了2186.54点的历史新高。

On the annual line, the growth of the New Securities 50 Index expanded to 10.2%.

The main board index next door was also pulled up, and the Shanghai Composite Index returned to the 3200 point mark. However, the main board indexes of the two cities could not compete with the Xinzheng 50 Index. Those indexes have set new historical highs again, while the next door is still playing around 3000 points.

As the new year begins, retail investors continue to "move" to the Singapore Exchange. This trend seems to be irreversible, and investors in the industry basically agree with this view.

The next door has really ushered in a wave of de-retailization. If the entry threshold set by the Singapore Exchange had not been too high, perhaps there would be few people playing on the main board now. The actual situation is not much better, which has become increasingly obvious from the comparison of market trading activity and transaction volume.

In the first half of last year, the Shanghai stock market maintained its advantage in daily trading volume, with the SGX occasionally overtaking it. By the middle of the year, the two were neck and neck. After the third quarter, it had often been ahead of the Shanghai stock market, and its annual trading volume also exceeded that of the Shanghai stock market.

This year, the market generally predicts that the trading volume and trading activity of the SGX will definitely further widen the gap with the Shanghai stock market. Now the SGX stock pool has begun to take shape.

Investors also found that although the number of new stock registrations and listings on the SGX in January this year still maintained a double-digit efficiency per week, the absolute number was lower than that in January last year, indicating that the expansion rate of new stock registrations and listings on the SGX has slowed down. However, even so, the total number of stocks on the SGX market is likely to exceed 1 by the end of this year.

It is true that the expansion speed has slowed down, because most of the good companies that meet the SGX listing standards have already been listed, and Fang Hong will not expand for the sake of expansion. The SGX market is now taking shape and there is no need to rush to go public.

There are many high-quality subsidiaries under Qunxing Capital that meet the conditions for listing, but Fang Hong is not in a hurry to get all of these companies listed. After all, it is not a good idea to have half of the listed targets in the entire market carry the "Qunxing" label.

Give way to more non-Quanxing companies, which need more financing support. There is no need for companies in Qunxing to compete with them for resources in the market. With Qunxing as the big daddy, there is really no need to do so. Just ask for money.

……

(End of this chapter)