Billion-Dollar Private Equity: "Rare Buy Point"
Today, the policy front has exceeded expectations with favorable news, leading to a surge across A-shares and Hong Kong stocks, with Moutai almost hitting its upper limit. Many top-tier private equity firms have adopted a positive attitude. Evolution Theory Asset, a private equity firm with assets over ten billion yuan, published an article today at noon, signed by its helmsman Wang Yiping, stating bluntly, "The current market integrates the characteristics of three historical market bottoms, and the market will most likely turn from adversity to prosperity." Wang Yiping stated, "We have previously emphasized the high odds of Chinese assets on multiple occasions. With the introduction of this policy combination, the moment of high odds and probability has arrived." Whether comparing vertically with history or horizontally with asset categories, the present is a rare buying opportunity for the Chinese stock market.
It is worth noting that Evolution Theory Asset's article was published just after the release of significant policy information from a major conference, but the content was likely prepared in advance and did not include the latest policy content. However, it did comment on the policy release on the 24th of this month.
Wang Yiping of Evolution Theory Asset: The current moment is a rare buying opportunity for the Chinese stock market.
Evolution Theory Asset published its article at noon today when the stock market began to soar, titled "Three Major Bottoms and Three-Stage Rockets," signed by the company's founder and Chief Investment Officer, Wang Yiping.
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Wang Yiping said that the current market integrates the characteristics of three historical market bottoms, namely the internal structural reform of 2005 (equity division reform emphasizing shareholder interests), the liquidity injection of 2008, and the high cost-performance ratio of stocks relative to bonds in 2014. Each of these characteristics in the past has initiated a major bull market. Now, with all three combined, it indicates that the market will most likely turn from adversity to prosperity.
Wang Yiping stated that, overall, the CSI 300 Index is cost-effective in both absolute and relative terms. With the introduction of this wave of policies (policies on September 24), the current market possesses the characteristics of three historical bottoms, making the current position a very important signal that should be taken seriously. In terms of trading, it not only has high odds but also a certain probability.
Wang Yiping: The three-stage rocket theory of the market's potential upward rhythm indicates that the current moment is a rare buying opportunity for the Chinese stock market. Wang Yiping stated that the potential upward rhythm of the subsequent market tends to be likened to a rocket's three-stage propulsion system. The first stage is the valuation bottom brought about by the joint performance of liquidity from lending facilities and high dividends with low valuations. This point is essentially certain. The second stage is the possibility of breaking the deflationary spiral expectation under the combined forces of the wealth effect brought by the stock market's rise, and the recovery of consumption due to measures such as the replacement of old goods with new ones and the replacement of existing mortgages. This part still needs observation, but at the current high-odds position, to borrow a common saying: at a low point, if you cannot prove it is not there, then it is there. At a high-odds position, there is no cost to making such assumptions, let alone if it comes true? This is the second stage of the rocket. The third stage is the clearance of manufacturing capacity. The clearance of manufacturing capacity stems from the overinvestment and oversupply in the manufacturing industry over the past few years. This clearance may still require a year for confirmation. If during this period, market valuations are restored, consumption recovers, and the manufacturing industry also reaches an industry inflection point, then there is no doubt that the market will expect the bottoming out and recovery of industrial profits. This is also an important part of the economic environment improvement for a major manufacturing country.
In summary, the first-stage rocket has a very strong certainty, the second-stage rocket requires observation, and the third-stage rocket is determined by the economic cycle. However, with the second-stage rocket as a foundation, it can fly higher.
Wang Yiping said, "We have previously emphasized the high odds of Chinese assets on multiple occasions. With the introduction of this policy combination, the moment of high odds and probability has arrived. Whether comparing vertically with history or horizontally with asset categories, the present is a rare buying opportunity for the Chinese stock market."
Zhong Ou Rui Bo, a private equity firm with assets over ten billion yuan, stated that at present, we have increased our positions to a higher range.Another hundred billion private equity firm, Rayliant Global Advisors, believes that due to the unexpected positive impact of the meeting combined with the significant previous decline, it initially led to a general rise in stock prices. However, such a widespread increase will only be maintained in the short term, and it is highly likely that the market will diverge later on. As the current period is the announcement season for Q3 financial reports, portfolio adjustments will be optimized around the situation of these reports.
The meeting's description of the real estate market was very positive, stating "it is necessary to promote the stabilization of the real estate market and to address the concerns of the public." Rayliant Global Advisors believes that subsequent detailed policies will gradually be implemented, and since real estate and its industry chain stocks have experienced a significant decline, they are currently optimistic about them.
Rayliant Global Advisors stated that they have now increased their positions to a higher range. In terms of structure, in addition to continuing to be optimistic about value assets such as the internet and high dividend stocks, they are also positioning in some sub-sector growth stocks with rising prosperity. They are also highly attentive to cyclical industries with extremely low prosperity and valuations, and are actively seeking excellent individual stocks.
Well-known private equity firm Redchip Investments: The bull market is merely the fulfillment of the accumulation of economy, capital, and confidence during a bear market.
Well-known private equity firm Redchip Investments is also firmly optimistic about China's economy and capital market. Redchip Investments recently stated that China's insistence on developing the real economy and its continuous iteration of advantages are the solid foundation for future listed companies to increase profits, increase returns to shareholders, and lead the stock market towards a bull market. The new technological revolution provides opportunities for overtaking, and AI empowerment will promote the emergence of world-class excellent enterprises in China's local manufacturing, consumer goods, pharmaceuticals, finance, and internet sectors.
Redchip Investments stated that the core competition of the future world is the competition of economies and enterprises. The success of the capital market is merely a reflection of the intense competition experienced by enterprises, and the bull market is merely the fulfillment of the accumulation of economy, capital, and confidence during a bear market. China's insistence on developing the real economy and its continuous iteration of advantages, such as: from imitation to innovation, from innovation to leadership, from being the first in the domestic market to being the first in the international market, from assembly manufacturing to the high added value ends of the smile curve, from B2B to B2C, and obtaining more added value and profits in the global supply chain and value chain, are all solid foundations for future listed companies to increase profits, increase returns to shareholders, and lead the stock market towards a bull market. The new technological revolution provides opportunities for overtaking, and AI empowerment will promote the emergence of world-class excellent enterprises in China's local manufacturing, consumer goods, pharmaceuticals, finance, and internet sectors.
Redchip Investments believes that one should participate in the market with a pure investment mentality and method, imagining that investment returns come entirely from the profits, dividends, and development of business operations. Even if the market stops trading, one can be at ease as a shareholder, advancing and retreating with the enterprise.