10.21 Experience the feeling of missing out

Recently, I've personally felt the pain of significantly underperforming the major indices, haha.

Tech-oriented sectors like chips and software stocks led the gains, while the Beijing Stock Exchange surged across the board due to weekend news (potential interconnectivity between the Hong Kong Stock Exchange and the Beijing Stock Exchange). The BSE 50 hit a record high.

Regarding the valuation issue of SMIC (Semiconductor Manufacturing International Corporation), I’m not entirely clear myself, so I’ve looked up some netizens’ opinions and summarized them here. The A-share valuation of SMIC is currently significantly higher than its H-share valuation, which is quite rare given that the stocks in both markets have the same rights. Many people think the A-share valuation is ridiculously high, and it is indeed outrageous, but there’s more to dig into behind this absurdity. Recently, the trading volume of H-shares has also been very high. From a speculative perspective, if A-shares have risen so much, their trading volume should far exceed that of H-shares, but the opposite is true—H-shares actually have higher trading volume (netizens speculate that the inflated valuation of SMIC might have political motives, and if it’s aiming to compete with top-tier companies like TSMC and NVIDIA in the future, it somewhat makes sense). Many tech stocks are now being revalued, sparking debates—some think they’re overvalued, while others remain full of dreams and expectations.

https://mp.weixin.qq.com/s/w7BCO9rbWEq73tiu4SS1Yg

Currently, the market is being driven by tech stocks to new heights, but there will always be room for undervalued, high-dividend stocks in the long run. If you find yourself missing out on certain holdings during this phase, I suggest being patient—watch some movies, play games, or solve some problems. Time will pass, and with so much liquidity in the market, your turn will come eventually.