Rebirth of the Capital Legend

Chapter 117 Stock market crash 2.0th version!

Seeing the Shanghai stock index plummeting 8.49% in a single day, and the stock index futures hitting their limit across the board, there was also the extremely tragic scene of more than 1700 stocks hitting their limit.

Although Su Yi had experienced this scene before his rebirth, he still felt very shocked.

This round of 'Stock Market Crash 2.0' is coming extremely quickly.

It started from the second trading day when he cleared his position and took profits on the stock 'Mei Yan Jixiang'.

The final PPI value and industrial production value announced in the United States for July were seriously lower than expected, and the news that the Federal Reserve hinted that it would raise interest rates in September detonated the market. Major securities companies also resumed securities lending T7 transactions, and there are also market rumors. Jin' Company will transfer its stocks and will no longer conduct market entry operations under the influence of many bad news.

Almost suddenly, the Shanghai Stock Exchange Index crashed from around 4000 points, reappearing the market's liquidity crisis.

8月18日，8月19日，8月20日……

Until now, August 8, there has not been a single trading day in the market that did not end with a sharp drop.

Many stocks in the two cities, including many heavyweight large-cap stocks, have all plummeted, plummeted, and plummeted again during this period.

Among them, there are many concept-themed stocks.

Especially in the previous bull market, the stocks in the main conceptual fields of 'Internet finance', 'Internet software', and 'film and television media' were intensively speculated by the main funds. Basically, this round of stock market crash has continued to fall by the limit. A halved trend with no financial support.

And this trend, so far, still has no end in sight.

Investors who did not escape in advance and were trapped in the market, whether they were institutions, hot money, large investors, small investors, retail investors...all suffered heavy losses, and the wealth in their hands suffered a devastating blow.

Even if the regulatory authorities clear up OTC capital allocation in advance and cut off the trading channels for OTC capital allocation access.

But with the financing scale of the two cities reaching more than 18000 trillion.

Every day, there are still countless investors who liquidate their positions.

In just a week or so, the entire market's wealth of up to 10 trillion was wiped out, directly defeating all long-term confidence and capital-accepting confidence in the entire market.

Despair, despair...

Investors participating in the market are in despair every day.

There is no hope in sight.

I don’t know where this round of stock market crash will end?
Regulators continue to explain and release good news, but in the face of a market that has completely lost liquidity, no one believes it anymore, and no one feels that good news alone can save the current stock market.

"How many times has this hit the limit of 1,000 shares?"

Faced with the extremely brutal closing situation in the two cities, someone asked in the internal group of the main hot money group of the 'Magic City Super Short Gang' where Su Yi belonged.

"I can't remember how many times. Anyway, I feel like I'm making history every day."

"Alas, the stocks I received earlier have dropped their limit for five consecutive years. Every day, they have hit their limit limitlessly. There is no way to escape. It's really a heavy loss."

"Can't the 'Certificate Finance' support the market?" Lao Zhang from 'Xinzha Road' said in the group.

"The financing balance is 18000 trillion, and there are tens of trillions of hold-up orders and stop-loss orders above. It's all over the place. Even if the 'certificate fund' has a credit line of trillions of funds, it can't support it and it doesn't dare to support it." Xu Qiao said helplessly. He responded, "I'm also trapped in % of my position. Damn it...it drops to the limit every day. Damn it."

Lao Wu from 'Yintai Road' also said at this time: "This market is really desperate. At one time, there were less than 10 red stocks in the two markets. Can you believe it?"

"I remember that at 9:36 in the morning, there were only two red stocks at the lowest level." Brother Chen from 'Crescent Road' said, "Sigh... looking at this pattern, we may not be able to hold 3000 points tomorrow."

"Brother Chen, you should have completely avoided this round of stock market crash, right?" Xu Qiao asked.

Brother Chen from 'Crescent Road' said: "I'm short-handed. I bought some chips at the bottom last Friday. Today I forced myself to hit the limit."

"Alas, a friend of mine has a heavy position in the stock 'Oriental Fortune' this time, and now his position is about to be liquidated." Lao Zhang from Xinzha Road said, "This round of stock market crash is really worse than the last one. violent."

"So, no matter what, no matter when, you can't hang a stock with heavy warehouse orders." Brother Chen from 'Crescent Road' said, "Otherwise, there is really no way to deal with such extreme market conditions."

"Speaking of this, I have to say that the Su brothers cleared their positions and took profits to escape from the top this time. It is really a classic." Xu Qiao said, "They just sold on the eve of the market crash."

After Su Yi sold 'Meiyan Jixiang'.

As of this check, the stock price has been cut in half from its high point.

Moreover, at the peak stage at that time, the funds of the 'Huatai Securities Shenzhen Yitian Road Rongchao Business Center Sales Department', which undertook arbitrage, have not been able to completely escape until now.

"Brother Su is so lucky." Lao Zhang from Xinzha Road couldn't help but sigh.

Su Yi watched the messages in the group refresh and did not reply. He just closed the group message after observing everyone's emotional expression for a while.

In addition to the main hot money internal group of the 'Magic City Super Short Gang' where he belongs.

Other major investor groups, especially retail investors, gather in stock discussion groups, stock investment forums, communities, post bars and other places.

Everyone's mood is more pessimistic and more extreme.

Because 'Guotai Junan Securities' published an analysis report that was seriously bearish on the stock market, the stock review areas of its major trading platforms have been flooded by countless retail investors who need to vent their emotions.

Because 'Huaxin Securities' was found to be maliciously short-selling by the Ministry of Public Security's co-investigators who were stationed at the China Securities Regulatory Commission, relevant personnel within its system have been criticized by the majority of retail investors. Among them, 'Huaxin Securities', 'Cathay Securities' 'The two stocks, amidst overwhelming criticism, firmly occupied the top two on the hot stock lists in the two cities. There are also major online discussion forums where countless retail investors gather, and there are more and more topics about liquidation.

Offline, the panic among major financial institutions is also getting worse.

Brokerage clerks at securities companies have never stopped calling their phones, urging financing customers to replenish their margins or informing them that their accounts are about to be liquidated.

Fund companies and countless fund products managed by private equity institutions have fallen below the mandatory liquidation line.

Even the net value of many institutional fund products has fallen below 0.3 or 0.2.

Major commercial banking institutions are also constantly evaluating the current value of the stocks pledged by major listed shareholders, and reminding and urging major shareholders to replenish their pledges, so as to prevent the pledged stocks from being forced upon them after the value of the pledged stocks falls below the loaned-out funds. flat.

the entire domestic financial market.

From institutional groups such as banks, securities firms, and fund companies, to individual investor groups such as hot money, large investors, small investors, and retail investors, there are also countless over-the-counter fund investor groups, as well as many listed companies that pledge large amounts of equity for financing. The major shareholders...are all panicking at this moment.

Stock index futures are falling by their limits, stocks are falling by their limits, and indices are falling by their limits.

Countless related fund products, both on and off-market, as well as derivative financial products, are also losing liquidity and plummeting continuously.

99% of on-market graded funds have already discounted, causing countless investors who invested in Class B graded funds to lose their money.

More than 80% of the stocks have lost their liquidity, and there are no buying orders on the market.

70% of investors have lost money so much that they dare not open an account.

60% of financing investors are already on the verge of liquidation.

The financing of more than 18000 trillion yuan in the two cities, in the ongoing stock market crash that caused the market to lose liquidity, and amid panic, was like a financial nuclear bomb, destroying the ecological structure of the entire market.

In the evening, regulators were still releasing positive news.

The Huajin Exchange said it would severely crack down on abnormal trading and once again increase the margin for stock index futures trading.

The China Securities Regulatory Commission made a speech to encourage major shareholders to increase their holdings.

'Chengjin' and 'Huijin' continued to respond to market rumors, stating that they have not yet formulated a so-called exit mechanism and will not sell stocks.

The State Council officially issued the "Basic Pension Insurance Fund Investment Management Measures" to allow pension funds to enter the market.

The Ministry of Public Security reported that in the past month or so, during the joint investigation with the China Securities Regulatory Commission, it had investigated and dealt with multiple cases of malicious short selling, and formally arrested several important personnel within the financial system.

However, there are multiple benefits.

It did not calm the anger of countless investors in the entire market.

It has not eliminated the extreme panic in everyone's mind and restored the market's confidence in doing long.

The next day, Tuesday, December 8th.

Despite the favorable conditions, the two markets continued to open sharply lower and continue to fall by the limit of 1,000 shares.

Among them, the Shanghai Composite Index closed below 3000 points, completely shattering the last glimmer of hope in the hearts of all investors.

After the market closed, we were faced with a market that was already in a 'systemic financial crisis' and faced with financial risks detonated by the stock market, just like a hurricane, sweeping through the entire domestic financial system.

In desperation, the central bank resorted to another big move against the expectation that the Federal Reserve would raise interest rates in September.

Continue to reduce the deposit and loan interest rates of financial institutions, cutting interest rates by 0.25%, and cutting reserve requirements by 0.5%.

With the central bank's unexpected interest rate cuts and reserve requirement ratio cuts, the market finally briefly opened higher on Wednesday, August 8.

Unfortunately, such a high opening only lasted a few minutes.

Immediately, under the trillion-level panic selling, the two cities collapsed again. The Shanghai Stock Index plunged in an almost straight line, breaking through 2900 points, and the lowest touched near 2850 points.

We see a liquidity crisis in the market and 'systemic financial risks' that have not been resolved.

At the close of trading at noon, the Ministry of Finance, the State Administration of Taxation, and the China Securities Regulatory Commission collaborated to once again release major benefits to the market and jointly issued a notice stipulating that market investors who hold shares for more than one year can be exempted from personal income tax.

When a series of big news comes one after another.

Finally, in the afternoon, when the market reopened for trading, the two markets saw a turn for the better.

A large number of heavyweight stocks in the fields of finance, infrastructure, consumption, electricity and other fields have received huge amounts of buying funds due to the mood brewing at noon.

Suddenly, everything is in line with long-term investment logic.

Blue chip and white horse stocks supported by performance and fundamentals.

All violent rises drove the Shanghai Stock Index from a drop of more than 3 points in the session to a rapid red rise, powerfully reversing the market's plummeting situation.

(End of this chapter)