Full position trading on Yunnan Energy Holdings turned into a disaster!

The global stock markets experienced a widespread correction. Last night, the US market plunged over 1,000 points during trading, but recovered somewhat by the close. The Asia-Pacific region decisively took drastic measures today: Japan plummeted, South Korea triggered a circuit breaker with a 7% drop yesterday, and continued to fall 11% this morning. The South Korean index is in a dire state. Among the many stocks falling, the big A-shares also continued their slight decline, dropping about 50 points. Today, oil and petrochemical sectors saw significant divergence, with only two survivors: Intercontinental Oil & Gas and Shandong Molong. Intercontinental Oil & Gas hit the daily limit-up this morning with a turnover of 2.5 billion yuan! The rest of the weaker stocks opened high but quickly crashed. If not for auction trading, they would have been wiped out. Stocks like Heshuo Petroleum, DeShihua, Renzhi, Furan Energy, Shoufa Gas, and others were all crushed and failed to escape in time. For those who bought non-core stocks, the result was inevitable: losses. The stock market remains the riskiest industry globally; a moment of carelessness can lead to heavy losses. In the short term, the big divergence in oil and petrochemical sectors today is unlikely to cause a direct A-shares decline, and there may still be opportunities for rebounds, such as Taishan Oil, Jinniu Chemical, and China Merchants South Oil, which experienced sharp drops and then recovered. There will likely be scattered opportunities ahead, as wars are not resolved in a day.

The major divergence in oil and petrochemical sectors was driven by early gains in related sectors, supported by positive news about smart grids (the US’s three major regional grid operators received approval for $75 billion expansion projects). Early on, stocks like Tongguang Cable, Hanlan Shares, Jicheng Electronics, Shun Na Shares, Chuanrun Shares, and others hit the daily limit. Top-tier stocks like Yunnan Energy Holdings also briefly hit the limit-up, but due to overall market weakness, investor caution prevailed, and Yunnan Energy Holdings was unable to sustain the limit-up and was halted.

Throughout the morning, there were 22 stocks hitting the daily limit-up, 24 stocks hitting the limit-down, and 11 stocks at the daily limit. The high-price stocks remained at four boards, including Shuifa Gas and Yasheng Group, while three-board stocks included Shandong Molong and Intercontinental Gas. Zero stocks on the second board were extremely rare, reflecting cautious and conservative investor sentiment. The first-board limit-ups totaled 18, with the most notable being Baiwei Storage, which surged on strong earnings news, with a trading volume of 1.19 billion yuan, leading to gains in related stocks like Jiangbolong, Puran Shares, and Demingli.

Overall trading conditions remain extremely volatile. The best strategy is to watch and hold a small or no position, as accidental losses are common. Today, the focus is on Yunnan Energy Holdings. Yesterday’s standout stock, Tongding Interconnection, unexpectedly opened with a straight limit-down. The current trend remains unchanged, but opportunities may still exist. Last night, the US fiber-optic sector experienced some adjustments, contributing to the overall market movements.