If the Bull Market Comes, How to Make Money
Weekly Thoughts
There is a popular saying, “abject poverty in June, turnaround in July”. Entering July, driven by blue chips, liquor, securities firms, and real estate, the Shanghai Composite Index broke through 3100 in one fell swoop, and the ChiNext Index broke through 2400. Sell-side institutions unanimously judged that the bull market has arrived, and some exaggerated private equity funds even plausibly claimed that their institution had predicted at the end of 2018 that this round of bull market would start in early 2019, and now it has entered a period of rapid index rise.
As a retail investor (Leek), I also yearn for a bull market, hoping to ride the east wind of the bull market and make a small profit. So, the question is, if the bull market comes, what should we buy?
First, buy the sectors that rise in every bull market. The rise of the bull market is accompanied by the amplification of trading volume and turnover rate, and the profits of securities firms are bound to do their part.
In fact, buying index constituent stocks, the index is an indicator of whether the bull market is coming. Only when the Shanghai, Shenzhen, and ChiNext indices rise sharply does it mean that the bull market has arrived. At the same time, the rise of the bull market is mainly due to the sharp rise in the stock prices of these mainstream index constituent stocks. Therefore, you can buy broad-based indices such as CSI 300 and CSI 500.
Again, buy the hot concepts of this round of bull market. In every round, there are individual sectors whose increases far exceed other sectors. Non-ferrous metals, non-bank finance, national defense industry, and real estate mining led the rise in the 2005-2007 bull market. Computers, architectural decoration, and transportation led the rise in the 2014-2015 bull market. If this round of bull market is confirmed, technology, consumption, and non-bank finance will likely lead the rise in the whole market.
Weekly Events
After the full opening of the financial sector, the market hopes that CITIC Securities and CSC Financial can merge and restructure to build a securities aircraft carrier to contend with foreign capital. Following CRRC and CSSC, “China Securities” is about to emerge.
Weekly Market
Period: 2020629-20200705
Global stock markets rose generally. China, which was the first to walk out of the shadow of the epidemic and did not have a large-scale secondary rebound, became a favored target for global capital. Northbound funds flowed in on a large scale this week. The Shanghai and Shenzhen indices hit new highs, and the bull market is about to emerge.
Hot Industry Concept Board
From the perspective of Wind Level 4 industries, hotels, resorts and luxury cruises, investment banking and brokerage, and system software were among the top gainers, while photography, household appliances, and apparel retail were among the top losers. This week, duty-free shops, connected stocks, and stock trading software were among the top gainers, while low-priced stocks, propylene index, and Toutiao were among the top losers.
| Market (%) | Index | This Week | 1 Week Ago | 2 Weeks Ago | 3 Weeks Ago |
|---|---|---|---|---|---|
| Shanghai Composite | 3152.81 | 5.82 | 1.49 | 1.64 | -0.38 |
| Shenzhen Component | 12433.26 | 5.25 | 3.44 | 3.7 | 0.64 |
| ChiNext Index | 2462.56 | 3.36 | 5.23 | 5.11 | 1.86 |
| Hang Seng Index | 25373.12 | 2.39 | 0.35 | 1.41 | -1.89 |
| HSCEI | 955.06 | 3.48 | -1.14 | 1.27 | -2.22 |
| Red Chip Index | 4065.05 | 5 | -0.45 | 1.9 | -2.37 |
| Dow Jones | 25827.36 | 0.32 | -3.31 | 1.04 | -5.55 |
| Nasdaq | 10297.63 | 1.9 | -1.9 | 3.73 | -2.3 |
| S&P 500 | 3130.01 | 1.5 | -2.86 | 1.86 | -4.78 |
Shanghai-Shenzhen-Hong Kong Stock Connect
| Market (CNY, Billion) | This Week | Previous Week | 2 Weeks Ago | 3 Weeks Ago |
|---|---|---|---|---|
| Shanghai Connect | 177.38 | 47.21 | 91.30 | 1.78 |
| Shenzhen Connect | 111.24 | 0.69 | 112.38 | 47.38 |
| Hong Kong Connect | 130.36 | 7.1 | 102.38 | 40.30 |
Positions
Clear Daily Interactive, buy CSC Financial, clear positions.
| Type | Code | Name | This Period Dynamic |
|---|---|---|---|
| Stock | SH601066 | CSC Financial | Buy |
| Stock | SZ300766 | Daily Interactive | Clear |
| Stock | ONTX | ONTX | Hold |
| Fund | F210008 | Golden Eagle Strategy Allocation Mixed | Hold |
| Fund | F005311 | Wanjia Economic New Momentum Mixed A | Clear |
| Fund | F161725 | China Merchants Liquor Graded | Hold |
| Fund | F001553 | Tianhong CSI Securities Insurance C | Buy |
| Fund | F163415 | Xingquan Commercial | Hold |
| Fund | F270022 | Guangfa Domestic Demand Growth Mixed | Hold |
Published at: Jul 5, 2020 · Modified at: Dec 2, 2025
