Speculations on the recent trend of ST Ruihe (no offense, please don't criticize)

ST Ruihe has seen outsized volatility over these trading days, and on Friday it even closed directly at the daily limit down. Many investors in the market have been thrown off course by such sharp swings, and most have pessimistically concluded that the industry investors soon to be introduced are photovoltaic companies. In my view, this market sentiment is actually a good thing. The company itself already has businesses related to photovoltaic building-integrated solutions; because the market anchors the direction of these industry investments to photovoltaics in advance, there’s an inherent tendency toward inertial bias. Now, with the market collectively bearish and expectations pushed to extremely low levels, it can instead fully flush out the pessimistic positioning, lowering overall market expectations.

We should also remember that the photovoltaic industry’s overall debt level is relatively high at present, making it difficult to meet the stringent requirements of this industry-investor recruitment. As long as the industry investment that ultimately lands is not in the photovoltaic sector—or is a major positive surprise far beyond what the market expects—it can open up even more upside room.

Next, let’s look at Friday’s late-session auction behavior, where it was directly hammered down to the limit down. This is absolutely not a sign of capital fleeing; it’s more like the controlling capital deliberately orchestrating a deep manipulation. Large intraday swings and volatility are classic features of position-washing. The late-session auction, in just a few minutes, smashing it to the limit down is precisely to create panic, meticulously wash out short-term funds whose conviction is not firm and stop-loss selling after being trapped by chasing higher prices. By using this kind of extreme price action to force out floating supply, it clears obstacles for the next round of the rally.

Moreover, looking at the timing: there are only two trading days left until the cutoff for the reorganization investor registration on the 9th, and the time window is extremely tight. The controlling capital will not give retail investors many opportunities to react and buy at lower levels. Given this kind of capital manipulation logic combined with the time game, I judge that on Tuesday at the open it will very likely gap up directly, without giving the capital that was affected by the panic sentiment at Friday’s late session and cut losses during the selloff the chance to be picked back up at low levels.

The above is only my personal, rough opinion and does not constitute any investment advice. If I’ve bothered you, please just smile and let it pass.

$ST Ruihe (sz002620)$