Public funds frequently employ the private placement strategy as a means to boost returns, capitalizing on 'discounted prices' to secure more predictable gains for their portfolios. Yet, the recent dramatic swings (volatile market conditions) in China's A-share market have put the efficacy of this strategy to the test. In June, tech firms like Jiangbo Long, Luwei Optoelectronics, and Siquan New Materials launched private placements, attracting participation from numerous public fund institutions. However, as the tech sector underwent a sharp downturn (correction) in July, the issue prices of these private placements surged above the prevailing secondary market prices, leading to a widespread phenomenon of price inversion. For certain stocks, the magnitude of this inversion even surpassed 28%, leaving public fund institutions with paper losses. In the face of the current highly volatile market environment, executing the private placement strategy has become increasingly arduous. Industry experts recommend a shift in investment logic, moving away from sector-centric approaches towards fundamental analysis, while underscoring the importance of diversifying positions and adhering to trading rules.