Capital markets are known for their impatience, yet they remain perpetually active, creating opportunities or engaging in tactical maneuvers at every turn. Since mid-September, the market has exhibited resilience while consolidating near its lows, with select stocks blooming amidst the volatility. From the V-shaped reversals of Kexiang Co., Ltd., Mankun Technology, and Waigao, to the low-position consecutive limit-ups of Ultrasonic Electronics, Shuangxing New Materials, and Aohong Electronics, a clear message emerges: patience is rewarded with opportunities.
Behind these individual stock surges lies a starkly divided overall market. Kexiang is a notable heavyweight position of over 2 billion yuan co-held by famed investors Zhang Jianping and Wang Xiao'an, while the other rallying stocks also bear the hallmarks of major capital involvement. In the current environment, active players and opportunities are always there for those willing to search. The pressing questions are: where is the next Kexiang, how can one identify the signals of institutional accumulation early, and what bottom patterns precede a major rally? These insights are available in a complimentary video accessible via the link within the article.
A prominent yet paradoxical phenomenon currently defines the market: while indices remain subdued, individual stocks are undergoing broad-based repair, with a seesaw effect between tech and non-tech sectors. On September 14, major indices closed lower, yet over 3,000 stocks advanced; however, this breadth narrowed by September 15. The A-share market's resilience on that day, following a sharp overnight decline in US tech stocks, exceeded many expectations. Moreover, recent trading sessions have seen a surge in stocks buoyed by positive catalysts and institutional maneuvering, particularly within AI hardware and upstream high-elasticity segments like PCBs, including copper-clad laminates and electronic fabrics, alongside semiconductors and MLCCs.
Several stocks exhibit characteristic patterns with notable similarities. One involves a 20% limit-up combined with a V-shaped right-side reversal. For instance, PCB concept stock Kexiang notched a 20% limit-up at its low on August 6, followed by a V-shaped turnaround, and clinched another 20% limit-up on September 14. As mentioned, Kexiang is a joint heavyweight holding of Zhang Jianping and Wang Xiao'an. In its Q2 report, both debuted among the top ten circulating shareholders, holding 9.46 million shares (worth 959 million yuan) and 15 million shares (worth 1.52 billion yuan), respectively. Zhang's hundred-billion-yuan portfolio has been widely discussed, but Wang's scale is equally substantial, having newly appeared in seven stocks including Kexiang during Q2, with cumulative holdings of 5.114 billion yuan.
Mankun Technology and Waigao also exemplify strong right-side breakouts within the PCB sector. Mankun achieved a 20% limit-up and hit new highs on September 14, extending gains by 11% on September 15. Its 800V high-power PCB products for the Rubin platform are currently undergoing client sampling. Waigao, fittingly, charted its own course with a low-level 20% limit-up on August 6, followed by a sustained rally, hitting record highs on both September 14 and 15.
Another pattern involves consecutive limit-ups from a sudden launch. Ultrasonic Electronics, Shuangxing New Materials, and Aohong Electronics are prime examples. Ultrasonic recorded three consecutive limit-ups from September 10 to 14, despite denying claims that its high-frequency boards received NVIDIA certification. Shuangxing, analyzed previously, secured its third straight limit-up on September 15. Aohong Electronics, a lesser-known name, staged a dramatic shift from obscurity to a breakout with three independent limit-ups from September 11 to 15. These stocks—from Kexiang, Mankun, and Waigao to Ultrasonic, Shuangxing, and Aohong—share a common trait: launching from low levels, issuing effective breakout signals, and then accelerating with rapid gains or consecutive limit-ups.
Looking at the broader context, the Fed's rate hikes have historically not always spelled doom for A-shares. Taking 2022 as a case study, a year marked by seven consecutive and substantial hikes totaling 425 basis points, the long-term trajectory weighed on equities. However, phase-wise, A-shares rallied after several of these hikes. Following a 50bp hike on May 5, 2022, the Shanghai Composite Index climbed for two months, gaining over 10%. Similarly, after a 75bp hike on November 3, 2022, A-shares launched a six-month advance, also accumulating over 10% gains. While historical patterns serve only as reference, not prophecy, the long-term rhythm of A-shares is determined more by domestic fundamentals and industrial cycles than by overseas monetary policy. As September unfolds, many market participants are no longer fixated on the Fed's decision but are instead preparing to hunt for the next Kexiang or Mankun Technology.