1. On January 18, high-level officials of the central bank stated that they would loosen monetary policy, implement "forward-looking operations", and "stay ahead of the market curve", making many observers excited- institutions would have lost their minds if the stock prices did not skyrocket. However, the ultimately result was disappointing, which made Guan Qingyou feel embarrassed.
2. Liquidity tightness has been a big issue throughout 2021, and this issue has not only caused the real estate industry (and the entire industry chain) to fall into unprecedented difficulties, but also made the ecosystem of A-shares fragile. However, what needs to be reiterated is that, in terms of the composition of market cap, the most core factor is the expectation of investors for the intrinsic value of the enterprise (the total net income in the future), and liquidity is not the most crucial determinant. As Benjamin Graham said, intrinsic value is the premise of value investment.
3. Under the tightness of liquidity, shareholders will be forced to sell stocks and 'dump' them. Whether to fill the pit or not is related to the value preference of the funds. Many institutions judge that value stocks and growth stocks have experienced a significant increase in 2020 and 2021 respectively, which has to some extent overdraft the follow-up stock market. Whether the ideal investment status is currently achieved is questionable.
4. At present, the market's preference for funds is relatively chaotic, and the definition of "value" is not clear. One typical representative event is the so-called "Shanghai Financial Circle Lujiazui Dinner" incident and the rumors of private equity taking over public equity shares of Hengshuai. This incident appears to be non-compliant behavior among industry insiders, but the essence behind it is that some institutions...