Chapter 1676 [Believe in the Power of "Belief"]

After the market opened high, the SGX Composite Index opened high and then fell, because the SGX 50 Index was falling.

Today, the SGX Composite Index was launched, and six new ETFs were listed at the same time, namely the SGX Composite Index ETF and five other industry ETFs, which inevitably diverted funds from the six SGX 50 ETFs.

Before this, most of the investors who could not reach the threshold of individual stock trading on the SGX could only participate in the trading of the SGX 50 ETF if they wanted to invest in the SGX market, which caused a large amount of funds to be congested here, resulting in super large-cap stocks not lacking liquidity at all, even to the point of flooding.

Now the diversion has begun, and with the launch of industry ETFs, everyone no longer has to criticize the SGX 50 ETF.

Obviously, this is a further improvement of the market mechanism to avoid the problem of "top-heavy", which is also the original intention of launching three new indexes and a large number of industry ETFs.

However, the SGX 50 Index did not dive sharply. After opening high and falling back for more than an hour, it stopped falling and rebounded upward.

After all, the 50 constituent stocks in the SGX 50 Index are absolutely core assets. Previously, most retail investors could only blame the SGX 50 ETF. In fact, this is the real protection of small and medium-sized investors, allowing them to enjoy the dividends brought by the value growth over the past five years.

If the threshold is too low, it will be difficult to maintain the profitability of most investors in this market. The volatility of small and medium-sized stocks in the SGX market is very large. It does not mean that you can make money by buying them blindly.

Now the pool of the SGX market is large, with more than 2,300 stocks, and the number of new stocks registered and listed each year is stable at more than 200 to nearly 300, but at the same time, the number of new stocks delisted each year has also increased, from more than a dozen at the beginning to 20 to 30, and there are already 27 stocks that have been confirmed to be delisted in the first half of this year.

It can be predicted that the number of delisted stocks will continue to increase in the future SGX market. In this market, if your company is not good, you have to withdraw.

Although the SGX market has a delisting compensation mechanism, if you are unlucky enough to buy a delisted stock and happen to sell it at the top of the bubble, it is still a huge loss, and the compensation you get is not enough to cover the loss.

Because the delisting compensation mechanism is based on a comprehensive assessment of fair value and the valuation weight set by the issuer, rather than the highest historical market value, otherwise the issuer will never be able to pay off the loss in his eighteen lifetimes.

…

As time went by, in the afternoon, the SGX 50 Index continued to rebound and recovered the high point of the early trading and continued to fluctuate upward. At the same time, the SGX Composite Index, which represents the entire market, was also rising.

Obviously, the market is running very smoothly.

As early as February this year, the SGX had already issued a "draft opinion" to manage expectations for the market in advance, and it had already fallen in February and March in advance to release this round of expected declines.

Today, the opening of the SGX Composite Index did not bring too much downward pressure to the market, and Xingyu Automobile resumed trading with a 20cm-level one-line board, so it is basically difficult to fall.

Investors have not forgotten that Xingyu Auto is only the first company to resume trading. After the split and reorganization of the "big and small kings", nine subsidiaries were split, and there are still eight waiting to be listed.

And they are all big companies with a market value of trillions of yuan. These are the absolute core assets of the SGX market and are super large-cap stocks that will enter the SGX 50 Index.

Matrix Quantum and Xingyu Technology were suspended during the bull market in May. There must be expectations of a rebound after the resumption of trading. The whole market knows this.

Now that these two super giants have been split into 9 companies, it must be that these 9 companies will rebound. With this strong expectation management, it is difficult for the SGX Composite Index to fall.

Xingyu Auto, which was listed today, is undoubtedly very critical. The rebound of this company is related to the rebound expectations of the following eight companies. Xingyu Auto is now the most popular stock in the market. Now it is the first in the popular stock rankings.

As of the close, the New Securities Tenet closed up +2.04% at 15413.81 points, and the New Securities 50 Index also closed up +1.79% today.

It is worth mentioning that Xingyu Automobile resumed trading using the original Xingyu Technology trading code, but the following three companies landed on the SGX market using a new code and followed the normal registration and listing process.

The listing of the following three companies is based on the new stock process, which means that there is no limit on the price fluctuation on the first day.

The same is true for Matrix Quantum. One of the five subsidiaries that were split off will inherit the previous trading code of the parent company to resume trading, and the other four subsidiaries will follow the normal registration and listing process and be assigned a new stock trading code, and there will also be no price fluctuation limit on the first day.

In addition, the other 7 companies that follow the normal registration and listing process will also follow the selection criteria for the constituent stocks of the New Securities 50 Index. The normal process will take at least three months to enter, and another one will be eliminated to ensure that the number of constituent stocks is 50.

There is no doubt that these seven split-off subsidiaries will definitely enter the list of constituent stocks of the New Securities 50 Index.

Even after the split, it is still a super large-cap stock of the trillion-level, or even the 10 trillion-level.

…

The next day, Friday, July 30, the SSCI Composite Index closed slightly down -0.24%, and Xingyu Automobile advanced to the second consecutive board without any suspense, with two 20cm-level one-line boards, and the market value was pushed up to 8.02 trillion yuan.

It directly surpassed Jiuzhou Blue Arrow, which has a market value of 6.72 trillion yuan, and became the No. 1 stock in the SGX market.

Previously, Xingyu Technology had always firmly occupied the No. 1 stock in terms of market value, but now it has been split, so Jiuzhou Blue Arrow took the opportunity to take the title of the No. 1 stock in the SGX market for half a year.

Today, Xingyu Automobile overtook it and gave up the title of the No. 1 stock in terms of market value.

However, from the performance level, Jiuzhou Blue Arrow's net profit last year was only 23.9 billion yuan, and its current static price-earnings ratio has reached more than 281 times. It is the stock with the highest price-earnings ratio among the 50 constituent stocks in the SGX 50 Index, and it is also the only stock among all super large-cap stocks whose price-earnings ratio has exceeded 100 times.

The market gave this technology giant such a high price-earnings ratio. One of the reasons is that Jiuzhou Blue Arrow is the absolute overlord in the field of commercial space launch. If it is just this fundamental, it is still very difficult to support a market value of more than 6 trillion yuan.

The second is also the real super bomb, that is, the "Aerospace Power Energy Company" was hatched by Jiuzhou Blue Arrow, and Jiuzhou Blue Arrow is one of the major shareholders of Aerospace Power Energy Company, which can support a market value of more than 6 trillion yuan. This is the core logic and the strongest expectation.

According to the equity structure of Aerospace Power Energy Company, there are only three major shareholders. The largest shareholder, Qunxing Group, holds 34% of the shares, the second largest shareholder is Jiuzhou Blue Arrow, which holds 33% of the shares, and the third largest shareholder, State Grid, holds 20% of the shares. The remaining 13% is allocated to the option pool to reward employees with outstanding contributions.

The Aerospace Power Energy Company is the enterprise unit responsible for the construction and operation of the "Space Solar Power Station". Jiuzhou Blue Arrow is its second largest shareholder and holds a 33% equity ratio, which is one-third of the equity ratio.

This is the biggest and most core fundamental that Jiuzhou Blue Arrow can support a market value of 6.72 trillion yuan with a price-earnings ratio of 281 times.

As for the failure of the "Space Solar Power Station" project?

This kind of project initiated by the Star Group is comparable to the "all-in" level. No one would think so, and no one dares to think that the project will fail. One can only believe in the power of "belief".

…