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Thirdly, is there a "bottom" for China-EU connectivity?
1. Following the continuous decline on March 2nd and 3rd, China Stock Exchange plunged again on March 4th. Tencent almost fell below HK$ 400, and the Hong Kong stocks of Tencent, Ali, Meituan, Aauto Quicker, JD.COM and Xiaomi all fell by 4-8%. On the evening of the 4th, Pinduoduo's U.S. stocks fell as high as 8.74%.

So far, the CSI Overseas China Internet 50 Index, the CSI Overseas China Internet Index and the Hang Seng Internet Technology Industry Index have dropped by as much as 55-65% from their highs in February last year.

This week, most of the Chinese stocks hit a new low in this round of adjustment, and there is no sign of stopping falling.

2. On the other hand, many mainland investors are not afraid of falling and keep "hunting the bottom". QDII funds that track the above indices have increased substantially quarter by quarter since last year.

E Fund's China Internet 50ETF, Bank of Communications China Internet and Huaxia Hang Seng Internet Technology ETF increased significantly from 4 billion copies,1200 million copies and 8.2 billion copies in the first quarter to 26.9 billion copies,11400 million copies at the end of 202/kloc-0 respectively. The net assets of the fund reached 32.6 billion yuan, 654.38+0.2 1 billion yuan and 654.38+0.88 billion yuan respectively.

As we know, China Stock Exchange is mainly listed in Hong Kong and the United States, mainly by overseas investors.

China Unicom has tens of billions of QDII funds, which is obviously a drop in the bucket compared with the market value of hundreds of billions to trillions of yuan of the head enterprises of China Stock Exchange, and has not played a role in affecting the stock price.

According to the report of Securities Daily on June 5438+ 10/4, 2022, the turnover of Hong Kong Stock Connect 202 1 accounted for 13.7% of the total turnover of Hong Kong stocks, that is to say, mainland funds only accounted for more than 1% of the total turnover of Hong Kong stocks.

In other words, all kinds of overseas investors, especially western investors or investors with western backgrounds, are the main forces that determine the rise and fall of the stock price of China Stock Exchange.

On April 2 18, a news that "National Development and Reform Commission issued" Several Policies on Promoting the Recovery and Development of Difficult Services Industries "to guide Internet platform enterprises to give staged merchant service fee concessions to catering enterprises in county-level administrative regions where epidemic-prone areas are located" triggered a sharp drop in the US Mission, and other Chinese stocks were not spared.

Note that it is "epidemic-prone areas" and "phased concessions", and not all areas have permanent concessions.

You see, a piece of news that doesn't have much substantial influence on the China stock market can also cause the China stock market to plummet.

What caused the crash?

I only found one piece of news related to China Stock Exchange:

According to the news of the current affairs news agency on March 2, Guo Shuqing, Chairman of China Banking and Insurance Regulatory Commission, China, said that the People's Bank of China, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission and the Foreign Exchange Bureau started to make rectification from the previous year, led by Ant Group and other 14 Internet platform enterprises involved in financial business, and the overall progress was relatively smooth. According to Guo Shuqing, "their self-inspection is basically over now, and the rectification is not completely over. There are still some problems to be discussed. We will disclose new situations to the society, the public and the media in a timely manner. "

I think this news is neutral. The daily supervision of the Internet platform will become the norm.

Of course, if we have to find a reason, it seems that geopolitical events can bear the "pot" of the China stock market decline.

The west is the main party to this geopolitical event. On Friday, major western stock indexes plunged, and it seems reasonable that they should also sell China stocks.

More importantly, since the outbreak of this geopolitical event, as part of the sanctions, relevant European and American exchanges have restricted or suspended the trading of securities listed outside Russia; The Norwegian Sovereign Wealth Fund, the world's largest sovereign wealth fund, announced the divestiture of its Russian assets.

To some extent, this is a psychological "preview" and warning for western investors who hold China Stock Exchange.

The rabbit died, hurting its own kind.

Perhaps this is an important reason for market pessimism.

The main component of China Unicom is the leading enterprise in China's new economy, and its business has penetrated into all aspects of our ordinary people's work and life, and its importance has almost reached the point where our work and life are inseparable.

China Unicom, which has gathered such enterprise groups, certainly has extraordinary investment value, especially when their prices have fallen to the present situation.

However, the share prices of these enterprises do not depend on the confidence of our mainland investors, but mainly on the expectations and confidence of western investors.

At present and in the foreseeable future, the confidence of western investors will be distorted by the competition between China and M, especially the suppression of China by M country.

So we will see that investors are like frightened birds, and they will jump up when they are in trouble.

But profit-seeking is the nature of capital, and the good fundamentals of China interconnection components will eventually win the favor of capital.

Therefore, it is worth looking forward to a new high in the future, but this process may be tortuous and long.

6. I mentioned many times in my previous articles that China Internet (including Hong Kong stocks) must be fully prepared for investment, and their "bottoming out" and rising process may be full of twists and turns.

Although I know that falling is a kind of risk release, the more China Unicom falls, the safer it will be, but I always tell myself that I must control my hand and invest as planned. First, the purchase cycle should be as long as possible. 2. The investment amount shall not exceed 65,438+05% of the original total investable amount.

Because if I have a heavy position or even a full position, I will be restless because of all kinds of negative news and falling stock prices.

Only by using strategy and discipline can we maintain a good investment mentality, persist in it and finally succeed in investment.

All the opinions and funds involved in this paper do not constitute investment advice, but a true record of my thinking and practice, so I will invest in this market at my own risk.

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