Hexun Investment Advisor Chen Xiaojun: A-shares funds are wildly reallocating!

The entire market is falling sharply, with frantic fund reallocation. Only two sectors are making money. According to Chen Xiaojun, a Huoxun investment advisor, today’s Shanghai Composite Index fell below 3,900 points, with over 4,400 stocks turning green across the two markets. Overall, the profit-making effect is very poor. Trading volume was only 1.96 trillion yuan, slightly down, indicating limited downside space. However, main funds are somewhat fleeing today, especially from high-position thematic stocks that are collectively cashing out. In the short term, I still believe it’s related to external factors. External conditions have changed again, causing risk-averse sentiment to peak. But don’t worry; after the panic-driven sell-off, the second bottoming phase is downward, and the chances of a sharp decline are small. Today, only two major directions are breaking against the trend. Lithium batteries and lithium mines have become the strongest safe havens, with major funds buying over 5 billion yuan. Second, power and oil & gas stocks surged in the afternoon, showing a full defensive breakout. It seems unwise to chase bottoms now. Follow the main capital flow, such as the previously discussed power and computing sectors. Be patient and wait for stabilization signals. During this phase, don’t chase rising prices; buy on dips and reduce positions on rallies—that’s the most correct strategy.

(Edited by: Wang Gang HF004)

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