Although the Shanghai Composite Index rose today, most indices and individual stocks declined. Among the major broad-based indices, the ChiNext Index led gains with a rise of 0.31%, while the CSI 300 increased by 0.22%. The STAR 50 Index fell the most, dropping 1.64%, and the Beijing Stock Exchange 50 Index declined by 1.52%. In the Shenwan primary industry indices, coal led the gains with an increase of 2.31%, followed by utilities rising 1.14%, and light industrial manufacturing up 1.02%. The comprehensive sector fell the most, declining 1.85%, while computers dropped 1.84%, and commercial retail decreased by 0.81%. A total of 1,914 stocks advanced, while 3,156 declined, with the median change at -0.50%.
Thirty-four stocks, including Haier Smart Home, China Communications Construction, China Railway Construction, Pien Tze Huang, Wingtech Technology, Kingsoft Corporation Limited, Gan Yue Expressway, Xinsteel Co., Huafon Microfibre, and Chongqing Gas, hit one-year lows during the session. Among them, Lifang Tui reached a historical low. Conversely, 161 stocks, such as China Construction Bank, Dongshan Precision, Avary Holding, Songfa Ceramics, Bank of Hangzhou, Tianqi Lithium, Zhongtian Technology, Tinci Materials, Shuanghui Development, and Han's Laser, reached one-year highs. Sixty-seven of these, including China Construction Bank, Dongshan Precision, Avary Holding, Songfa Ceramics, Bank of Hangzhou, Zhongtian Technology, Han's Laser, Robotech, Changxin Boke, and Guanghe Technology, hit all-time highs.
Nineteen stocks, including Envicool, Guosheng Securities, Aohai Technology, Shengyang Co., Shikong Technology, Kangsheng Co., ST Infinova, Star Group, ST Wei Hai, and Yaguang Technology, fell by the daily limit. Sixty-five stocks, such as Joyson Electronic, Guangdong Electric Power A, Zhuye Group, Zhishang Technology, Zhejiang New Energy, Shunhao Co., Shenjian Co., Juli Sling, Helin Micro, and Opu Optoelectronics, rose by the daily limit.
The average decline for 338 convertible bonds was 0.37%, while their underlying stocks fell by an average of 0.10%. The 20 convertible bonds in my main portfolio rose by an average of 0.07%, with their underlying stocks also increasing by 0.07%. No trades were executed today, and the account ended with a slight gain of 0.07%. A further increase of 0.55% is needed to reach a new historical high.
Wingtech Convertible Bonds experienced their ninth consecutive decline, accelerating today. A prominent analyst on the Jisilu platform recently suggested buying the dip, claiming it was an opportunity at a cost of 98.8 yuan. However, the price dropped to 93.106 yuan today, prompting the analyst to sell at a loss at 94 yuan. It remains to be seen whether this prediction will hold. While tomorrow's market direction is uncertain, many users on the platform are eagerly anticipating opportunities.
My mobile phone’s WeChat application, after prolonged use, became increasingly sluggish and eventually failed to start today. I had no choice but to uninstall and reinstall it. Although the process was time-consuming, the app now runs much faster, making the effort worthwhile. This phenomenon is a classic example of entropy increase—a closed system inevitably trends toward disorder over time.
Similarly, entropy increase exists within our investment strategies. Over a decade ago, I optimized a Turtle Trading strategy, which initially outperformed the CSI 300 Index by more than 10% annually. However, over the past three years, it has consistently underperformed. Even my long-standing multi-factor convertible bond strategy, if left unchanged, would significantly lag behind the equal-weighted convertible bond index this year.
Resisting entropy increase is challenging, much like tidying a messy room—many prefer to avoid the effort. Yet, some individuals possess a compulsive drive to maintain order. Similarly, there are those who continually refine their systems, striving for improvement. The choice lies in our hands.
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