news

On June 26, 2023, an old man from Chaoyang walked into the business department of a securities company in Beijing.

He wanted to invest in stocks and came to open an account. The salesperson told him that few people were opening new accounts now. He also added that those who entered the stock market against the trend had a higher probability of making a profit.

The old man listened and transferred 100,000 yuan to his account.WeiboSoon everyone knew:

Hu Xijin has been retired for more than two years. This most famous editor-in-chief in China has been involved in international news since 1989. He has been keeping track of the international situation for 35 years.

His original intention of entering the market was to empathize with the majority of investors and share the fate of the Chinese stock market.

Editor-in-Chief Hu has benefited from the times. For example, in 2004, he bought a 130-square-meter Vanke apartment for a total price of 900,000 yuan. At that time, he did not buy the house for his own use, but simply to go to the foot of the Western Hills to read books on weekends.

Back then, a friend told him that buying a house was not as good as investing in stocks. Editor-in-Chief Hu was upset because of this and thought he had no brains for investment.

But 14 years later, the apartment's value rose to 10 million, an 11-fold increase.

After 13 months of ups and downs in the stock market, Editor-in-Chief Hu has lost 100,000 yuan of the 700,000 yuan he invested:

What he originally wanted to prove was pushed to the opposite side again and again.

As long as the country is determined to promote something, such as its current determination to vigorously revitalize the private economy and boost consumption, past experience has shown that there will be practical results.

——Hu Xijin July 24, 2023

On the first day that Editor-in-Chief Hu started trading stocks, the Shanghai Composite Index was 3144 points.

This number has since become Lao Hu's Achilles' heel, a line of defense that he has to protect and defend with real money, and even netizens have named it:

Three days after opening the account, the novice protection period ended and Lao Hu's position began to turn green. He immediately added 100,000 yuan of principal.

Lao Hu said that the reason he entered the market was because he heard financial experts like Li Daxiao judge that the stock market had hit bottom. So in the past year, Editor-in-Chief Hu's stock selection strategy was actually to buy at the bottom, to buy cheap and good things. He firmly believed that the harder a good stock fell, the greater the possibility of a rebound.

Of course, in his words, this is long-term investment and long-termism.

But reality slapped him in the face. As soon as he entered the stock market, the market never went up, which made Lao Hu a little confused:

Editor-in-Chief Hu, who has been exploring the bottom like a diver, still hasn't done enough homework: Li Daxiao is famous for his firm judgment of many stock bottoms, but he is even more famous for his ability to lower his bottom again and again without blushing or beating his heart:

In fact, Editor-in-Chief Hu does not believe in Li Daxiao, but believes from the bottom of his heart that the stock market, economy and national destiny are closely linked; and the code to the trends of the economy and national destiny lies in policies and documents.

This has also been the guiding ideology of Editor-in-Chief Hu's work for 35 years.

When Editor-in-Chief Hu had been investing in stocks for a full month, the leadership held a meeting and expressed the need to invigorate the capital market and boost investor confidence.

Old Hu was very excited. After that, every time there was a policy, Editor-in-Chief Hu would make a passionate speech and express his confidence in the stock market.

But five months after the statement, an A4 paper with the draft regulations on online game management caused Tencent's share price in Hong Kong to drop by a quarter, hitting the lowest point since the 2008 financial crisis, and incidentally brought down the A-share market.

The impact of other important documents on the market is almost negligible. The day after the release of the 31 articles on the private economy, the Shanghai Stock Exchange Index fell by 0.92%; after the release of the new nine articles, the stock market only rose slightly by 1.26% to show respect.

Editor-in-Chief Hu’s experience over the past 35 years is no longer very useful.

The stock market is very honest and does not pretend. Therefore, it can expose or reflect various problems ranging from trading mechanisms to economic fundamentals, to comprehensive social confidence and even social operations.

——Hu Xijin October 23, 2023

Before September 2023, Lao Hu's career as a stock investor can be said to be in spring.

The stock price didn't rise much, but it was a small profit. More importantly, Lao Hu, who feeds the stock market with his body, is awe-inspiring. Whether it's on Weibo, where the public eats melons, or on the Xueqiu forum where experts gather, his attention is soaring.

In September 2023, when the Shanghai Composite Index fell back below the sacred 3144 points, Editor-in-Chief Hu made the largest increase in holdings: nearly 300,000 yuan.

Hu Xijin really believed that he could defend Hu Xijin's bottom. But it was also from then on that the losses began.

By the end of October, the loss reached 40,000 yuan. On December 20, when the floating loss reached 50,000 yuan, Hu Xijin finally began to complain:

The economic growth rate is somewhat weak, but by no means so weak that the stock market looks so weak.

Lao Hu seems to have finally begun to realize that his knowledge framework is not enough to explain the A-share market. A difficult question is also in front of him: should he compromise with reality or firmly recharge his faith?

Hu Xijin chose the latter. On January 18, 2024, the Shanghai Composite Index fell below 2,800 points. He increased his position for the third time and used 120,000 yuan to buy several stock index ETFs, accounting for one-third of the fund allocation. So far, Hu Xijin has invested a total of 600,000 yuan.

But this also became his most acclaimed operation, which largely hedged some of his losses.

He repeated Li Daxiao's words over and over again - below 2,800 points, there is gold everywhere.

Yet Keynes said:

What I bought was the country’s future.

——Hu Xijin February 20, 2024

In February 2024, the Shanghai Composite Index fell to 2,635 points.

Even Hu Xijin, an amateur stock trader, could see at this time that A-shares had seriously deviated from the operating rules of the stock market, which was in a trough.

He felt that the A-share market was like a closed internal cycle, which actually meant that there was no internal and external flow market for financing, production, and investment returns.

The average ROE (return on equity) of China's listed companies reached a peak of 16.7% in 2007; it now hovers around 10% all year round, and most of them are central and state-owned enterprises.

In other words, all A-share investors are actually playing a zero-sum game based on a 10% return.

In the first half of the year, there were 5,400 listed companies with A shares, and only 833 stocks had positive returns, accounting for about 15% of the entire market. Only 5 companies had an increase of more than 100%, accounting for less than one thousandth of the total. The median return of the market is:

An institution has counted the largest drawdowns of individual stocks in the past three years. More than 4,000 stocks have fallen by more than 50%, and the median drawdown is 62%. This also means that in the past three years, if you buy any A-share stock with your eyes closed, the stock will have fallen by at least 50%.

It was also from this time that Lao Hu changed.

Starting from March and April 2024, Lao Hu, who once advocated long-term value investment, began to do things he used to oppose:

In his own words, he did this to learn a little bit of technique.

But he soon discovered that his money was decreasing even faster with his aggressive trading. On April 15, Lao Hu's floating loss returned to more than 50,000 yuan.

After learning his lesson, Hu Xijin returned to long-termism and began to invest heavily in stock index funds.

If personal struggle is hopeless, one can only place hope on the course of history. During this period, Editor-in-Chief Hu repeatedly called on relevant departments to introduce policies to change the sluggish stock market.

Shouye’s good friend Uncle Bao said that the walls of the Shanghai Stock Exchange have heard more prayers than those in the hospital.

Looking back, I was a little too optimistic and did not fully understand the twists and turns of the stock market.

——Hu Xijin, June 26, 2024

Stock trading is quite addictive. I think that as long as I keep trading stocks, I will not get Alzheimer's disease.

——Hu Xijin July 27, 2024

In 2007, when the A-share market reached 3,000 points for the first time, Hu Xijin had just become the editor-in-chief. 17 years later, the A-share market has taught this man an important lesson in life through repeated battles to defend the 3,000-point mark.

After a year of stock trading, Hu Xijin finally became a qualified financial consumer.

Financial consumers are just like ordinary consumers. No matter how high or low the prices are, they can only silently accept that they are unlucky. However, financial consumers do not have consumer protection laws and do not have the right to return products within seven days without giving any reason.

There are about 230 million stock accounts in the A-share market, and the number of active accounts of retail investors is only 15.5%. However, Lao Hu is definitely a sample of the most ideal stockholder in the A-share market:

Everyone has watched Lao Hu go from making money through investing to retirement and entertainment.

You can't blame Lao Hu. Last year, Singapore's sovereign investment fund Temasek made money everywhere in the world except China. Their chairman of China said that the continued reduction of valuations in China's stock market when valuations are not high is mainly due to the lack of money-making effect. Money follows money, and it goes wherever there is money to be made.

Some professionals are just short of using tarot cards to explain the Chinese stock market.

In the 13 months that Hu Xijin has been speculating in stocks, the A-share market has crossed 3,000 points seven times. The seven captures of Meng Huo is also a good story in the history of world finance. The only pity is that Hu Xijin is the one who suffers the most each time. Netizens have made a statistics:

For the seventh time, on the first day of August, the A-share market crossed 3,000 points for the seventh time. Hu Xijin’s social media had not been updated for several days.

A few days before this, Li Daxiao, whom he trusted very much, retired. Investors ranked them as the two most important stocks:

George Soros once said that if you are in the market, you have to be prepared to endure pain. Editor-in-Chief Hu, who has entered the market, is enduring pain. But he said that he will not leave A-shares and will be a firm supporter of A-shares. In addition to sharing the glory and disgrace with A-shares, he will not give himself any other choice.

Confidence is the foundation of prosperity. From this point of view, A shares really need a lot of people like him.