He Xun Investment Advisor Li Jingfeng: Institutional Funds Are Starting to Move!

On March 24, Hexun Investment Advisor Li Jingfeng stated that today the A-shares opened high and then fell back, followed by a rebound after hitting the bottom. I noticed that institutional funds have already started to act. The high opening and retreat today is normal, as the situation with Tetta last night eased—whether true or not, market sentiment has shown signs of easing, which is the most important. Yesterday, during a live broadcast, I mentioned that the Middle East situation might continue, but stock trading is about attitude, not truth. When attitudes ease and negotiations show signs, people’s sentiment shifts from negative expectations to positive expectations. So last night, US stocks rebounded, crude oil fell back, and this morning, although crude oil rebounded somewhat, the movement was limited. The market has begun to guard against subsequent easing responses. This is unrelated to the truth; it’s the effect of expectation differences.

Clear signals appeared in the market, with some sectors unaffected by the market correction, such as State-owned Assets Cloud and International Resources. Although Huawei’s Ascend line also experienced a pullback, it was a passive volume reduction. From the State-owned Assets Cloud clues, we can see the pattern: an important recent meeting proposed public cloud, which includes not only State-owned Assets Cloud but also private enterprise cloud. Under this background, the reversal of the State-owned Assets Cloud dilemma has a greater impact because the meeting pointed out that local governments should support the construction of State-owned Assets Cloud with fiscal support, involving fiscal expenditure and subsidies. Once built, State-owned Assets Cloud can generate profits, like collecting “rent” from real estate, and increase tax revenue during use. Therefore, this year, the State-owned Assets Cloud is in a dilemma reversal logic, which is why its trend is stronger. Following this line of thinking, State-owned Assets Cloud uses domestically produced chips, with Huawei’s Ascend line being the core. Further, selling Huawei servers and assembling servers for State-owned Assets Cloud will benefit, along with related hardware such as power supplies, liquid cooling, switches, PCBs, optical chips, storage, and optical modules. All these clues point to domestic computing power, the line of thought discussed in early March. The future performance of domestic computing power is certain, with core targets not pulling back. Institutional funds are increasing positions against the trend during the correction. Many stocks related to State-owned Assets Cloud have not been affected by the broader market, which is a certainty. With this certainty, we look for space; we also need to identify the relevant targets within this pattern. Those with relevant targets should endure the wait, while those without should analyze related targets and look for opportunities to add positions during market corrections. Market corrections are not scary; it’s about seizing what can be seized and using strategies to navigate market rises and falls.

(Chief Editor: Zhao Yanping HF094)

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