Source: Brokerage China Author: Qu Hongyan Recently, China Yangtze Power hit a historical high and once again showed the slow bull stock trend of "tripling in ten years". The slow bull market has left behind many passers-by and brought good returns to the steadfast investors. It is "rare for those who triple in one year to be like carp jumping over the dragon gate, while those who double in three years are few and far between." On the other end of the investment world, however, violent collapses are also deafening, with many financial products suspected of "Ponzi schemes" ceasing payments, leaving investors with no hope of recovering their investments. Both positive and negative cases illustrate the importance of forming a suitable mentality towards money in one's lifetime; otherwise, sooner or later, you will divorce yourself from your money. "I call this the money mind, a person's IQ can reach 120, 140, or even higher levels, and perhaps some people's minds are good at doing one thing, while others are good at doing another. They can do things that most ordinary people can't do. But I know some very smart people who make very foolish decisions because they lack the money mind." Buffett once said so. The so-called money mind refers to believing in common sense, believing in compound interest, being cautious and rational, thinking independently, prioritizing security over return, not dealing with people with questionable character, not easily guaranteeing for others, not believing in windfall profits, and not trying to cross legal norms for extra benefits. In today's world of ubiquitous information, everyone's wealth may become the "prey" of those with ulterior motives. Only with the money mind, can one form good behavior habits and shield oneself from separating from one's wealth. Do not entrust your wealth easily. Wealth is easy to lose but hard to accumulate, and trust is a vital reason leading to the rapid loss of wealth. "Do not allow anyone else to manage your business unless you can watch their every move closely and understand their behavior; or you have strong reasons to believe in their character and ability. For investors, this criterion determines when you can let someone else make investment decisions for you." Graham's criterion written eighty years ago is so clear. Almost all the investors who lost their wealth in the financial products have violated the above two criteria. They did not have the ability to closely supervise the whereabouts of their funds, nor did they have sufficient reasons to believe in the character of the product issuers. They easily invested their own wealth solely based on others' glib tongue and a piece of commitment paper. They did not act as gatekeepers of their own wealth and ended up with nothing left even if the government punished the wrongdoers. "An ounce of prevention is worth a pound of cure." This is a phrase Munger often says. Destiny must be in one's own hands, and investors with a suitable money mind will try their best to find suspicious points in their investments to protect the safety of their principal. For example, whether the manager is trustworthy, whether the underlying assets are profitable, whether oneself can timely monitor the risks in the investment process, and whether the sales staff is obtaining large commissions. As long as any unreliable signs are found, these investors firmly will not invest their money. Do not desire to get rich quick. As in the capital market and anywhere else, making money is not easy, and desiring to get rich quick will lead to quick loss of wealth. In the capital market, the desire to get rich quickly often leads to investors over-allocating specific stocks, industries, or assets at the worst time. For example, buying high-risk stocks that can gain huge returns once an adventure succeeds, but the chance of success is very small, also known as "whispering stocks" by legendary fund manager Peter Lynch. "They often tell investors a story with explosive effects. These 'whispering stocks' have a hypnotic effect on people, and it is easy for you to believe that the story the company tells has an emotional appeal that can easily confuse you." This is like hearing a very tempting "sizzling" sound, making you salivate, but you did not notice that there is no steak on the grill. In the eyes of investors who lack the money mind, stable yield provided by blue chips such as China Yangtze Power cannot meet their demands. However, historical experience clearly shows that buying stocks lacking in safety solely based on imagined high yields is unwise. The long-term average investment return of general stocks is 9%-10%, which is also the average investment return of stock indexes in history, a benchmark to measure one's investment performance and the benchmark to measure fund investment performance.
Author: Zhang Da

Data from the research center of Ke Rui shows that the top 100 real estate companies achieved a turnover of 435.49 billion yuan in October, a 73% increase month-on-month, with performance scale reaching the second highest of the year; a 7.1% year-on-year increase, achieving a year-on-year positive growth in monthly performance for the first time this year.

Industry insiders believe that since the end of September, the real estate 'comprehensive' policies have driven positive changes in market sales, and it is expected that the short-term stabilization trend in core city sales will continue.

Today, mainland real estate stocks in Hong Kong collectively rose, as of now,$RONSHINECHINA (03301.HK)$KKR & Co stocks rose more than 8%.$RADIANCE HLDGS (09993.HK)$,$CHINA JINMAO (00817.HK)$rose more than 4%,$CHINA OVERSEAS (00688.HK)$,$LOGAN GROUP (03380.HK)$,$SUNAC (01918.HK)$up nearly 4%.

Top 100 real estate companies saw a 73% month-on-month increase in performance in October.

Data from the research center of Ke Rui shows that in October, the top 100 real estate companies achieved a turnover of 435.49 billion yuan, a 73% increase month-on-month, with performance scale reaching the second highest of the year; a 7.1% year-on-year increase, achieving a year-on-year positive growth in monthly performance for the first time this year.

Ke Rui Research Center points out that due to the bullish new policy and the active promotions of real estate companies with big discounts, the new housing supply in October dropped by 40% and transactions continued the U-shaped trend, reaching the second highest of the year: in key 30 cities, the October supply decreased by 40% compared to the previous month, significantly lower than the monthly average of the third quarter, while transactions continued the September rebound trend, rising by 33% month-on-month, a 37% increase compared to the monthly average of the third quarter.

Zhong Fang Research Institute's data also shows that in October, the sales of the top 100 real estate companies increased by 67.45% month-on-month and 10.53% year-on-year. Among them, typical enterprises such as China Overseas Land & Investment, Poly Real Estate Group, China Fortune Land Development Co., Ltd. had strong sales growth in October.

From January to October, according to Zhong Fang Research Institute's data, the total sales of the top 100 real estate companies amounted to 3459.995 billion yuan, a year-on-year decrease of 34.7%, narrowing by 4.08 percentage points compared to the previous month.

Zhong Fang Research Institute's data also shows that from January to October, 7 real estate companies with sales exceeding one trillion yuan decreased by 7 from the same period last year, while the number of companies with sales exceeding one hundred billion yuan decreased by 27 from the same period last year.

The trend of stable sales in core cities is expected to continue.

Regarding the significant increase in performance of the top 100 real estate companies in October, Ke Rui Research Center points out that due to the continued bullish new policies in core first and second-tier cities in October, overall transactions returned to a high level for the year. Looking at different cities, first-tier cities are direct beneficiaries of the new policies, with a 45% month-on-month and 9% year-on-year increase in transactions in the four first-tier cities, compared to an average monthly increase of 34% in the third quarter, with a cumulative year-on-year decrease of 23%. With the exception of Shanghai, first-tier cities such as Beijing, Guangzhou, and Shenzhen all experienced varying degrees of month-on-month rebound, mainly due to the stimulus of new policies speeding up the entry to market of existing customers with short-term intentions to purchase. Second and third-tier cities had lower month-on-month transaction increases compared to first-tier cities, with a significantly higher cumulative year-on-year decrease than first-tier cities. Among them, cities such as Chengdu, Wuhan, Tianjin, Xi'an, and Hangzhou saw a month-on-month increase, but a year-on-year decrease; cities like Suzhou, Ningbo, Jinan, Kunming, Nanning, Xiamen, Fuzhou, Foshan, Huizhou, and Changzhou, after experiencing a deep adjustment period, saw an uptick in transactions in October due to the positive impact of central policies, stabilizing market confidence. The cumulative year-on-year decrease continued to narrow.

Zhong Fang Research Institute also indicated that on September 26, the Central Political Bureau meeting proposed to 'promote the stabilization of the real estate market,' sending a signal to stabilize the housing market. Subsequently, four consecutive heavyweight press conferences demonstrated the central government's determination to stabilize the economy. At the end of September, after several first-tier cities optimized policies successively, the down payment ratios and loan interest rates for residents reached historic lows, and the home purchase restrictions were at their most relaxed since implementation. On October 17, the Ministry of Housing and Urban-Rural Development, the Ministry of Finance, and three other departments jointly held a press conference, clearly defining a 'combination of measures' to promote the stabilization of the real estate market. Typical real estate companies fully utilized the 'Golden Week' holiday period to create smooth and convenient transaction platforms, launch high-quality projects, and carry out various marketing activities such as discounts, vouchers, and gift home ownership rights, to boost the sales of commercial housing.

Looking ahead to November, Ke Rui Research Center believes that in the core first and second-tier cities, there is a phenomenon of 'rises followed by declines' in the weekly new property transaction area changes in October. With the diminishing positive effects of the new policies in November, combined with seasonal factors, the market growth momentum may slow down, leading to a slight decline in the real estate market transactions.

However, according to Zhong Fang Research Institute, overall, since the end of September, the comprehensive 'package' policies for real estate have led to positive changes in market sales. It is expected that the short-term trend of stable sales in core cities will continue. In the future, if the policies such as the monetization of settlement for 1 million units of urban villages and renovation of dilapidated houses, as well as the acquisition of existing housing and idle land, can be effectively implemented, it will help accelerate the improvement of the market supply-demand relationship, ultimately achieving the goal of real estate 'stabilization after the drop.' Real estate companies should focus on marketing, seize the opportunities of relaxed policies, continue to exert efforts through a series of sales strategies, and enhance promotion efforts.

Editor / jayden