Rebirth of the Capital Legend

Chapter 235 The historic moment of the second circuit breaker!
At 9:25, both markets opened sharply lower with no obvious negative factors.

At 9:30, after a brief 5-minute emotional brewing, a large number of capital groups, seeing that the market opened lower than expected, began to sell their chips rapidly.

At 9:35, concentrated on-site fund selling further stimulated market panic.

As a result, the volume of active selling is getting bigger and bigger, while the market's buying power is becoming weaker and weaker.

All of a sudden, all the hot market themes and related hot stocks that had rebounded in the previous two days all plummeted rapidly, and the market began to completely lose support.

after that……

The even more intense panic suddenly burst out like a flash flood, pouring out with unstoppable force.

At 9:37, many "small and medium-sized enterprises" concept stocks with lack of liquidity in the two cities began to fall to the limit. At the same time, the three core indexes, Shanghai Composite Index, Shenzhen Composite Index and ChiNext Index, all fell by nearly 3.5%. Among them, the "Shanghai-Shenzhen 300 Index", which is directly related to the circuit breaker mechanism, has fallen to 3.78% during the day.

"Fuck, this trend... is really scary."

Seeing that the intraday decline of the 'Shanghai-Shenzhen 300 Index' was once again approaching the 5% circuit breaker level, Zhao Qiang, a member of the main hot money group of the 'Yuhang Group', could not help but complain.

"I was expecting a rebound in the early trading session, but I didn't expect it to be buried in an instant."

"The index has completely broken down, but it seems that the check from 'Zhongyida' can still be made!"

"I don't dare to follow such rubbish market sentiment. I bought millions of chips at the beginning of the trading day, and they are all buried. Looking at this situation, the index is heading straight for the circuit breaker again."

"After two days of hard work, the market fell away in less than five minutes after the opening."

"I feel that the circuit breaker mechanism in the market is worse than not having it. With the obstruction of the circuit breaker mechanism, as long as the index falls by more than 3%, the entire market will begin to collapse completely. Many funds have no regard for logic and fundamentals, and simply flee without a care in the world."

“There was an emotional breakdown, no doubt.”

"Just wait and see. Today's trend will definitely hit the circuit breaker level."

"Alas... I really shouldn't have been greedy for the rebound in the past two days. Damn, the market opened low and quickly fell. Before I could react, the market went straight to the limit down. I couldn't even close my position in time."

“It feels like a market crash is coming!”

"I also feel like the 'Stock Market Crash 3.0' version has arrived, and the entire market has no capacity to absorb it."

"Damn it, there's no hope. I'll just close my position with one click."

"Stop loss. If we don't stop loss, I'm afraid we'll lose everything."

With the rapid update of the news in the main hot money group of the 'Yuhang Group'...

All the big speculators in the group, those who had positions cut their positions one after another, and those who had no positions and planned to enter the market to go long at the beginning of the session, instantly gave up the idea of ​​entering the market.

Those who had already intervened at the beginning of the trading had already given up resistance amid complaints and insults.

At the same time...

Across the country, countless retail investors and major institutional groups are feeling the same panic.

Among them, inside the Magic City's 'Jufeng Asset Management Company'.

In the product trading department of the 'Jufeng Future Growth' fund, Lu Xiangxiang, as a fund manager, saw the market plummeting once again, heading straight for the 5% circuit breaker mark. Her heart was in her throat, and without any hesitation... she directly ordered Yu Xiaolu to cut prices as quickly as possible to seize market liquidity and frantically sell off all stock positions held by the fund.

At this moment, Yu Xiaolu was also shocked by the violent market trend.

She gritted her teeth, and without waiting for Lu Xiangxiang to give further instructions, she urged all the traders in the trading room to place orders directly at the limit price, and to sell at the maximum price while there was still liquidity in the market.

In this situation, the sentiment in the market has completely collapsed and all the selling orders are overwhelming.

She didn't even bother to think about reducing her holdings costs.

You know, when there is a market liquidity crisis, it is most important to stop losses in a timely manner and seize market liquidity as quickly as possible.

If you hesitate and are reluctant to sell.

They can only be swept up by the sentiment of market collapse and locked in the market, causing losses to expand.

After Yu Xiaolu asked traders to place sell orders at the lower limit to grab market liquidity, with their extreme selling, the core stocks of the main line of the 'new energy industry chain', especially the 'lithium battery' sector, almost showed a 'plunging waterfall' trend, and flash crashed straight to the lower limit.

And we saw these stocks heading straight for the limit down.

At this moment, inside the company 'Nuoan Capital', in the product trading department of 'Nuoan New Energy Industry Growth Hybrid Fund', fund product manager Yang Shengfan was completely numb.

Compared with the fund product 'Jufeng Future Growth'.

The fund product "Nuoan New Energy Industry Growth Mixed" under his management is larger in scale and has a larger holding volume in the core theme of "lithium battery".

Because on January 1th, the market trend hit the circuit breaker for the first time.

In the subsequent short-term rebound, he did not make decisive trading moves to reduce his positions on a large scale.

At this moment, facing the total collapse of the market, he wanted to follow the large-scale sell-off and reduce his positions, but he couldn't do it because the market liquidity was really scarce.

"Boss Yang, 15 of our fund's holdings have already hit the lower limit." When Yang Shengfan frowned and felt his heart sink, trading team leader Bao Yongquan reported, "Within less than 10 minutes of the opening, our fund's overall loss has exceeded 7%. If it continues to fall like this, the net value of our fund products will probably hit the lower limit before the index hits the lower limit."

"Alas... We have lost the initiative, and now we can't leave the market on a large scale." Yang Shengfan sighed helplessly.

Bao Yongquan said: "Then we can't just sit there and wait for death, Mr. Yang, just sell as much as you can. The market feels that a stock market crash is coming."

"Sell it, sell it!" Yang Shengfan gritted his teeth and said.

Before New Year's Day, he was still optimistic and confident about the market trends of the main line of 'new energy industry chain' and the core line of 'lithium battery', and invested heavily in them.

He even once mocked Mr. Su from "Fuxing Road, Financial Street", saying that he had no mid- to long-term thinking logic.

There is no big picture of investment.

But I didn't expect...

Less than ten days had passed, and his original judgment and trading strategy were completely slapped in the face by the market.

In the face of an extreme market liquidity crisis, no matter how strong the underlying logic is, it will be useless.

Because funds are fleeing, no one cares about fundamentals at all. Even at this time, the stocks with slightly better fundamentals and relatively abundant liquidity will face greater selling pressure on the market.

It was at this time that he realized that the capital of "Financial Street Fuxing Road" was really good at judging the macro trend of the market.

After hearing Yang Shengfan's instructions, Bao Yongquan no longer hesitated and immediately asked all traders to place orders at the limit price for the stocks among the fund's holdings that had not yet hit the limit, regardless of whether there was any follow-up on the market. Based on the principle of selling as many as possible, they sold all the chips in their hands to the maximum extent possible.

at the same time……

There are also a series of large asset management institutions in the industry, including "Huaxi Capital", "Huaxin Securities Proprietary Investment Department", "Huayin Asset Management Trading Center", "E Fund Management Co., Ltd.", etc., which are all implementing unconditional stop-loss and position reduction strategies in the face of a complete loss of market liquidity and a complete collapse of market sentiment.

Moreover, due to the siphon effect of the fuse mechanism.

Active retail investors, big investors, hot money and other investors in the market are also in despair and are unconditionally stopping losses and clearing their positions.

Of course, in the entire market, almost all investor groups were extremely panicked and had no choice but to place orders to stop losses against every second.

At this moment, the 'Hua Yi Capital' company, the 'Hua Yi Expedition No. 1' fund product trading department.

Trading team manager Qu Zecai and other traders in the trading department were still extremely shocked in their hearts and on their faces, but they were also excited and happy from the bottom of their hearts about the market's series of violent sell-offs.

Because the 'Hua Yi Expedition No. 1' fund product is currently in a short position.

A fund scale of 200 billion is waiting to be established.

When the fund is short, for them and the interests of the entire company, the worse the market falls and the lower the index falls, the better.

After all, only in this way can they get a very good entry position.

Only with such a huge amount of funds can we freely build positions in high-quality stock chips with strong logic, excellent fundamentals and high cost-effectiveness.

"No wonder Mr. Su asked us to keep short positions and wait for opportunities." Someone couldn't help but sigh, "Mr. Su is really amazing. It seems that he predicted that the market would plummet like this."

"Hehe, President Su is the god of the A-share market."

"In the first few trading days of the new year, our fund, with empty positions, should have outperformed the performance of the main fund products of most asset management institutions in the market, right?"

"Be more confident. You will definitely outperform 90% of the fund products in the industry."

"I never expected that we could outperform most institutions in the industry without doing anything."

"This is what makes President Su so awesome."

"Haha... I have a feeling that under the leadership of President Su, our 'Hua Yi Expedition No. 1' fund product will definitely become a star fund product in the industry, and it will definitely become a legendary fund product in the industry, as well as a leading product in terms of asset management scale."

"Is there any need to predict this? It's definitely a done deal."

"The key is that with this wave of market decline, our chances of entering the market are much better than before. To be honest... the valuations of some high-quality stocks in the market are better, and I am jealous now."

"Even if you are jealous, you can't do anything. I feel that the Shanghai Composite Index may not be able to hold the 3000-point mark this time."

"It's already a liquidity crisis. I feel the Shanghai Composite Index will definitely not be able to hold at 3000 points."

"Keep quiet." Noticing the increasingly noisy discussions in the trading room, Qu Zecai couldn't help but glance around at all the traders in the trading room and scolded, "Although President Su has not arranged any trading tasks, you can't just sit there doing nothing. The market is falling, which is a great time to study the main market trend and the core high-quality stocks, and formulate subsequent trading ideas. Watch the market, watch the market... I don't mean you can just stare at the market. Before the market closes today, hand in a copy of the analysis report I just mentioned."

"Manager Qu, the market may have to close early today. Can you extend the time you mentioned?" A trader named Ma Xiaojian raised his hand and said, "How about before 3 pm? It looks like the siphon effect of the market circuit breaker has already occurred, and the circuit breaker is about to be triggered. No matter how fast we work, we can't complete the task you assigned us."

Qu Zecai glanced at Ma Xiaojian, thought for a moment, and changed his tone: "Okay, then before 3 pm."

Then, as soon as he finished speaking.

On the market, after falling below 300%, the 'CSI 4.2 Index' suddenly plummeted to 5% in less than two minutes due to the panic effect of liquidity depletion under the circuit breaker mechanism, triggering the first circuit breaker and causing thousands of stocks in the market to hit the limit down again.

Immediately afterwards, the market briefly halted.

During the five minutes when trading was suspended, the panic in the entire market not only did not dissipate, but instead intensified.

Even when the market hit the first circuit breaker, funds that did not have time to place sell orders, as well as on-site funds that had not thought about selling before, took advantage of the brief market halt to place limit down orders.

After that...

Five minutes later, the market resumed trading.

When the market jumped again, all stocks that had not yet hit the limit fell to the limit without exception.

Panic and selling pressure have turned into a raging tide amid the extreme fear of liquidity crisis. No one and no major institution can stop or turn the tide.

9点56分，9点57分，9点58分。

It only took 3 minutes for the market to resume trading.

The market was forced to trigger a second circuit breaker, and the decline of the CSI 300 Index rapidly increased to 7%. After a rapid plunge, the Shanghai Composite Index was fixed at a decline of 7.23%.

As for the SME Board Index, ChiNext Index and Shenzhen Index, they all fell by more than 8%.

At 9:59, the entire market froze.

After the two markets officially opened at 9:30, they closed in less than half an hour.

A-shares, just after creating new history, broke history again in just two trading days, creating the earliest closing record in history.

Faced with extremely tragic market trends and individual stock performance.

Facing the A-share market that is once again making history.

Faced with the loss of 3100 points, the Shanghai Composite Index is about to erupt again in the '3000-point defense battle'.

The entire market has hundreds of millions of investors, including retail investors, big investors, hot money, private equity, public funds, state-owned asset management institutions, overseas investment capital... and countless other participants, as well as staff within the financial system and even employees from various departments of regulatory agencies.

Everyone stared at the market and thought in their minds.

It seemed like the market trend had come to a sudden halt, with a brief downtime and a complete loss of the ability to think and react.

It can be said……

No one had ever seen or predicted this moment in history.

Even the regulatory leaders who formulated the circuit breaker policy were in a state of complete mental breakdown at this moment. They did not understand why the market suddenly became like this?

(End of this chapter)