Starting with a fully invested A-share portfolio to become a capital...

Chapter 41 Manufacturing PMI Data
While Zhang Yang and He Jing were having dinner together, the capital market outside was not calm, with undercurrents gradually surging, and true and false short essays sweeping across various online forums.

The first short post is a rumor circulating online that Yanjing Hualian Department Store Co., Ltd. has submitted a merger and reorganization application to the China Securities Regulatory Commission, intending to purchase assets through the issuance of shares, which involves the integration of the commercial real estate sector.

The second short essay is about Zhonghong Zhuoye Group acquiring Keyuan Group through asset subscription and private placement of shares, becoming the latter's controlling shareholder, and attempting to achieve a backdoor listing.

The third short essay is about rumors that the China Securities Regulatory Commission (CSRC) will deepen financial reforms, optimize the market regulatory environment, and improve institutional transparency to pave the way for future innovations in the capital market.

Compared to these unconfirmed market rumors, the newly released March manufacturing PMI data is confirmed information and can provide strong support for tomorrow's market trend.

What is PMI data?

The full name of PMI data is the Purchasing Managers' Index, which is composed of indicators such as new orders, production, and inventory.

The expansion/contraction threshold of the PMI data provides a direct indication of the state of the economy.

The dividing line between expansion and contraction is 50%. Above 50% indicates that the economy is expanding, while below 50% indicates that it is contracting. For example, a manufacturing PMI of 52 indicates that the economy is growing, while 49 indicates that the economy is in recession.

China's newly released March manufacturing PMI data shows that it has risen to 52.4%, marking the fourth consecutive month of increase and breaking through the 3-point mark separating expansion from contraction, indicating that the manufacturing sector is gradually recovering.

What will happen when the manufacturing sector recovers?
The most obvious sign is that the recovery of the manufacturing sector means that companies will expand their production and require more labor, such as production workers and technicians.

Secondly, it has an impact on the industrial chain. The manufacturing industry involves upstream raw materials, midstream processing, and downstream sales. Once the market recovers, it will drive the expansion of demand across the entire industrial chain.

The manufacturing PMI data is also known as a direct economic indicator.

To determine whether an economy is expanding or contracting, you only need to look at its manufacturing PMI data to make it clear.

At this point, retail investors on stock forums were already celebrating.

[A-Share King]: The manufacturing PMI data has rebounded for four consecutive months and broken through the expansion/contraction threshold, which shows that China is accelerating its recovery from the economic crisis. The stock market is a barometer of the economy, and the market will continue to surge tomorrow!
[I am Wolong]: In a bull market, there is no top; in a bear market, there is no bottom. It is obvious that we are currently in a recovery bull market. I believe that there are no resistance levels in this round of rise, and it will rise directly back to the 6124 points of October 2007.

[MeowMeowWhoLovesStocks]: With the PMI data rising for four consecutive months, coupled with the "Central Bank's First Quarter Monetary Policy Meeting," the major players shouldn't act recklessly tomorrow, right?

[Xiao Chen Xiao Chen]: Don't worry, I can already smell the faint aroma of calf.

All the data currently available from the market suggests that the market will continue its upward trend.

……

Chancheng, eastern Guangdong.

Main urban area.

When Liao Guopei, known as the "Shadowless Kick of Chancheng," saw the March manufacturing PMI data, he felt much more at ease.

His current major investment, Changan Automobile, belongs to the traditional manufacturing industry.

The continued rebound of the manufacturing PMI data, which has broken through the 50% threshold separating expansion from contraction, also indicates a return to consumption of big-ticket items such as automobiles.

Only when car companies make money and their performance improves will their stock prices have the impetus to rise.

"The manufacturing sector has rebounded for four consecutive months. Perhaps we can take advantage of this positive news to push it up again!" Liao Guopei whispered.

He still has 600 million yuan in cash on hand. If he joins forces with a few speculative investors, he might be able to reignite the market and push the price up to the daily limit again.

Thinking of this, he quickly clicked the mouse and opened the chat group with Chen Sanrong (the guy who jumped off a building) and other speculative investors like those who make a living by trading stocks.

[Zen City Shadowless Kick]: The manufacturing PMI data has risen for four consecutive months, breaking through the 50% threshold. Should we push it up again to sell off our holdings?
Selling off on positive news is an unspoken understanding among major speculative investors.

Because if they were to ship directly, retail investors simply wouldn't have the capacity to absorb the demand.

However, if there is good news, a large number of retail investors will rush to buy at sky-high prices, only to get trapped.

This is why there's a saying in the A-share market: "Good news turns into bad news once it's priced in."

Why is this a negative factor?
It's not like some people are taking advantage of the situation to sell off their goods.

Shortly after Liao Guopei sent the message, someone replied immediately.

[Stock Trading to Support the Family]: Sure, I still have half of my shares. I'll start a trading session this morning. If the buying support is strong, I'll sell all my shares to retail investors. If it's weak, I'll gradually sell them off.

[Nanyang Battle Song]: Let's do it!

[Bamboo Path]: I also wanted to discuss this with you guys. After all, such great news would be a waste if we didn't use it to scam retail investors.

[Zen City Shadowless Kick]: It's settled then. We'll control the market directly during tomorrow's opening auction. If the selling pressure is high, we'll abandon the operation. If the selling pressure is low, we'll push it up again.

[Nanyang Battle Song]: No problem.

[Stock Trading to Support the Family]: OK.

In the small group of seven, six of the speculative investors reached a consensus, while Chen Sanrong, who had already liquidated his positions, did not participate in this action. Looking at the group messages scrolling by, Chen Sanrong felt a pang of regret; missing out on the opportunity was no less painful than losing money.

……

And on the other side.

Shanghai First People's Hospital.

Tao Yuang rushed home at breakneck speed and then immediately drove Yue Shuxue to the hospital.

After examination by doctors and equipment, thankfully there was nothing seriously wrong.

Not only did Yue Shuxue breathe a sigh of relief, but Tao Yuang also breathed a sigh of relief.

Although they are not legally married, they do the things that married couples do several times a week.

Six or seven years have passed, but Yue Shuxue still hasn't gotten pregnant. When they went to the hospital for checkups, neither of them found anything wrong. In the end, they were given a report that she had a difficult constitution to conceive.

Now that she's finally pregnant, if she were to miscarry, both Tao Yuang and Yue Shuxue would be devastated.

Sitting on the rest bed provided for pregnant women, Yue Shuxue looked at Tao Yuang and asked, "Were you busy with work just now?"

"Ah."

Tao Yuang responded and then recounted everything about Li Zhenrui's intention to mentor him and his meeting with Zhang Yang.

Upon hearing this, Yue Shuxue's expression turned serious. "Isn't that too risky? Zhang Yang would essentially have something on you. What if he tries to blackmail you..."

"probably not."

Tao Yuang shook his head and stated his alternative plan: "My cooperation with him is only short-term. During this time, I will also look for suitable financial analysis talents and build my own analysis team. If Zhang Yang tries to extort money, I can only teach him a lesson through the law."

"You decide for yourself, and this matter must not be known to the company's senior management, otherwise, I may not be able to protect you."

"I am measured."

Having been in the underworld for so long, Tao Yuang has his own methods. He won't let anyone ruin his future, including Yue Shuxue.

at the same time.

Peace Hotel, Jiuxiao Hall Private Room.

After having a good meal and taking photos of the Huangpu River, Zhang Yang led He Jing directly out of the Peace Hotel.

He Jing was initially absorbed in the beautiful photos and didn't notice anything amiss until she sat in the passenger seat of the Maserati. Suddenly, she remembered something and looked at Zhang Yang, saying, "Didn't we forget to pay the bill?"

"Seems to be."

Zhang Yang started the engine with the mechanical key.

"..."

He Jing was somewhat bewildered.

What do you mean "seems like"? This clearly means they didn't pay the bill at all!
She read in the news that the owner of the Peace Hotel had connections in both the legal and illegal worlds. She wondered if they would be attacked with knives if they skipped out on their bill.

"Then let's go back and settle the bill."

Just as He Jing was about to unbuckle her seatbelt, Zhang Yang stopped joking and frankly said, "This meal has actually been paid for. Do you think the waiters at the Peace Hotel, who are stationed every ten meters, are just eating for free if the bill hasn't been settled?"

"Someone invited you?"

He Jing was puzzled.

Her mind raced, recalling what Zhang Yang had said that evening, and she retorted, "No wonder you've become so generous; you're just using someone else's money to give back to someone else, without spending a penny of your own."

"As the saying goes, time is money. Strictly speaking, I've also paid for it," Zhang Yang explained with a faint smile.

"What a sophistry."

He Jing rolled her eyes.

If she had known someone was treating, she wouldn't have had to live in fear, listening to the sound of her wallet breaking. Now, looking back, the A4 Wagyu beef steak was actually quite delicious...

While the two were talking, the Maserati drove out of the underground parking lot and sped towards the Wudong Road campus of Shanghai University of Finance and Economics.

(End of this chapter)