Back to the teenage years

Chapter 617 Greedy
The A-shares of 1996 were probably on drugs.

In that year, in order to cope with the decline in inflation after the soft landing of the economy, the People's Bank of China launched its first interest rate cut in many years, and my country's monetary policy entered a new round of interest rate cuts, shifting from tightening to easing, releasing a strong liquidity signal.

Against this backdrop, starting from the beginning of the year, the A-share market embarked on a bull market that lasted until the end of the year, with the Shanghai Composite Index rising from over 500 points at the beginning of the year to around 1250 points in December. Imagine if the index later jumped 1.5 times from 3000 points to 7000 points—what would that be like? Wouldn't seasoned investors be living the high life, indulging in luxury and revelry every night?

However, it was precisely in this frenzied market that management began to issue warning signals.

In June 1996, the People's Daily published an editorial entitled "Correctly Understanding the Current Stock Market," which pointed out that there was excessive speculation in the current stock market.

This marks a significant turning point in policy, shifting from easing to tightening.

However, after the editorial was published, the stock index fluctuated briefly for a few days before continuing its upward trend. The bull market, which had lasted for nearly half a year, had driven retail investors into a frenzy. After a brief period of tension, they ignored the warnings, ultimately leading to even stricter intervention.

On December 16, 1996, the People's Daily published another editorial entitled "Correctly Understanding the Current Stock Market," and announced the implementation of price fluctuation limits (T+1 settlement system). This was the final blow of the "twelve golden decrees," directly piercing through the A-share market. For two consecutive days, stocks across the board hit their daily limit down. The old investors who had enjoyed the pleasures of young models in nightclubs lost everything, leaving them with nothing but their underwear and forced to go to work in the private sector.

This event profoundly reflects the policy-driven nature of the A-share market. Back in June, when the People's Daily published its first editorial, Zhang Yunqi carefully studied the current state of the stock market and could sense a certain degree of tension and panic within the market.

In the past few days, the A-shares market, which had been rising steadily, has entered a rare period of fluctuation and adjustment. As for Xiangtai, which he had been watching closely, after several consecutive days of limit-up gains, it suffered a limit-down last week.

This was clearly Lu Yuanzhou using the opportunity to shake out weak hands. Having accumulated so much capital over a long period, he certainly couldn't miss this chance. Xiangtai Pharmaceutical had already risen to over 40 yuan, and Xie Yun's announcement of the restructuring information should be imminent. Once the news was released, Lu Yuanzhou, who had made a fortune, would definitely use the positive news to distribute his shares and escape at the top. In the end, Zhang Yunqi emptied his pockets and bet on this big move, becoming Lu Yuanzhou's sucker.

Time was of the essence, and Zhang Yunqi, heeding Xu Qingshan's advice, seized the opportunity presented by the People's Daily editorial and began dumping shares!
Monday, the sun was blazing hot.

At 9:15 AM, during the A-share pre-market auction, Xiangtai Pharmaceutical's stock price was all in the red.

Suddenly, 3,000 sell orders flooded the order book, pushing the opening price down to 39.8 yuan, three percentage points lower than Friday's closing price. After the market opened at 9:30, Xiangtai Pharmaceutical's stock price plummeted, falling to 39.2 yuan, 38.7 yuan, 38.1 yuan... Sell orders piled up, quickly breaking through the 38 yuan mark!
Within fifteen minutes, the trading volume exceeded five million shares!
The sell order increased to 60,000 lots at the first price level, and the price continued to fall. In less than half an hour, the buy orders were exhausted, and the price was finally locked at the daily limit down, closing at 36.9 yuan.

Xiangtai Pharmaceutical suffered two consecutive days of limit-down trading!
Investors who bought shares in Xiangtai Pharmaceutical began to panic, but they all assumed that the sudden sharp correction in the company, which had seen several consecutive days of limit-up gains, was due to the People's Daily editorial. So, although they were uneasy, most remained cautiously optimistic, hoping market sentiment would recover. After all, many stocks had adjusted after the editorial was published, and most subsequently rebounded, indicating a recovery in market sentiment.

However, when trading resumed on Tuesday, the sell orders for Xiangtai Pharmaceutical at its daily limit down price reached 90,000 lots. As soon as the opening auction ended, Xiangtai's stock opened at the daily limit down price of 33.2 yuan!
The third bowl of noodles was served to the stock investors. In less than two and a half days, some people had suffered a paper loss of more than 20%, and panic began to spread. The problem was that the stock price was at the daily limit down, and most people could not even sell their shares!

Lu Yuanzhou was naturally aware of the big commotion caused by Xiangtai Shares.

He saw the market in his office without any expression. Last Friday, he used the People's Daily editorial to sell off the market, but after the weekend, it was clear that another major player was selling off the market as well. So, what was their purpose?

Lu Yuanzhou didn't need to guess; he immediately instructed his secretary, Su Nan, to contact Zhao Mingxuan, the general manager of Yongxin Trust, to activate the bailed funds!
On the third day, Xiangtai's stock price continued to plummet at the opening, but when it fell to the 31 yuan mark, Lu Yuanzhou placed a series of buy orders of 10,000 lots, and the stock price was quickly pulled back to 32.4 yuan.

After several days of sharp declines, Xiangtai Shares seemed to have gained a brief respite. However, less than ten minutes later, a sell order of 100,000 lots at the 32.5 yuan price level crashed down like a mountain, blocking the upward trend!
Some investors, seeing this massive sell order, naturally realized that major funds were dumping shares and panicked, forced to join the dumping effort. Meanwhile, the funds supporting the sell-off were forced to continue buying. In an instant, the bulls and bears engaged in a fierce tug-of-war on the intraday chart, with the red and green bars in the transaction details alternating densely.

The two sides fought fiercely for a whole day.

The total trading volume reached 2.9 million lots, with a turnover exceeding 630 million yuan! At the close, Xiangtai's stock price was 31 yuan, and most of the efforts of the bulls and bears were in vain.

＊＊＊＊＊＊
Xiangtai Chairman Xie Yun's phone has been ringing off the hook.

As the head of this state-owned enterprise, Xie Yun had naturally heard about the dramatic fluctuations in Xiangtai Pharmaceutical's stock price long ago, and the people calling him were all there for this reason, but he couldn't say anything.

He looked at the green stock chart on the screen, took a sip of tea, and suddenly remembered the shareholders' meeting held by Xiangtai last month. The retail investors from all over the country were still cursing and swearing, as if they were peasants accusing landlords during the land reform. They were all crying and wishing they could devour the directors and managers, including him, alive.

Looking at the group of agitated shareholders, he couldn't help but think that if they held onto their shares tightly, they would be rich in a month or two. But now it seems that even before the restructuring news was announced, some people were already dumping their shares, so holding on too tightly might not necessarily lead to wealth.

The restructuring of Xiangtai was driven by a very small circle.

Several meetings were held at the board meeting. At the first meeting, Lu Yuanzhou brought his finance and legal representatives, and the group talked for three hours. Lu Yuanzhou wanted to take control of Xiangtai; that was the premise. Everything else was negotiable, and the directors' positions could be kept.

A dozen or so directors and supervisors argued fiercely. They didn't talk about restructuring, but instead specifically accused Xiangtai's general manager, Han Changjun, of poor management, which led to the state-owned enterprise being swallowed up!
But what's the use of scolding? The problem remains unresolved, so the board members continue arguing. In the end, the only option left is restructuring. By the time he convened the board meeting for the fifth time, no one was against restructuring anymore.

Xie Yun knew that as Lu Yuanzhou made advance arrangements, Xiangtai's stock price had been rising steadily, occasionally surging upwards. These directors who claimed to be upholding justice had all secretly boarded this ship.

The board members are indeed sensible.

The problem is that Xiangtai Pharmaceutical's shares have recently experienced a sudden and continuous plunge, and these directors have become impatient and anxious, thinking something has gone wrong, and they've been calling him one after another to inquire about the progress of the restructuring. His only reply was: they're all on the board of directors; they know as much as they know.

With that in mind, Xie Yun took a newly printed copy of the "Xiangtai Pharmaceutical Restructuring Plan Proposal" from the table and went to Director Wang's office.

Director Wang sat behind his desk, with neatly stacked file boxes and heavy medical monographs on the bookshelf behind him.

He's sixty this year, his temples are gray, and the wrinkles at the corners of his eyes look etched on. According to the rumors coming from above, his train will be arriving soon. Xie Yun, on the other hand, was someone he personally selected and promoted from the research institute. In a way, he's one of his most important works within the system.

Ma Ting picked up the proposal and looked at it carefully. After a while, he took off his reading glasses and said, "As long as the proposal is approved by the board of directors, I have no objections. The audit team will be moving in on July 1st. All told, there aren't many days left."

"I see."

"Is Xiongsen pushing them quite hard?"

Xie Yun was about to speak when Wang Ting waved his hand, stopping him from continuing. He picked up his teacup, stood up, and said, "Xie Yun, you are a technical expert. You need to be careful about how you handle things."

As he spoke, he pointed to the restructuring plan: "I have only one stance: restructuring can be pushed forward, and it must be pushed forward, because it's the big picture. But the process, the price, and the follow-up arrangements must withstand scrutiny, questioning, and the scrutiny of the country and the people! We can't let people point fingers at us and accuse us of selling off state-owned assets at a low price."

Xie Yun returned to his office.

He pondered for a while, the weighty and meaningful words of Ma Ting still lingering in his mind, when the phone rang again. It was Lu Yuanzhou calling. Xie Yun chuckled but didn't answer.

Lu Yuanzhou's phone call must have been to urge him to announce the restructuring news.

He knew that, according to the original plan, after the share price broke through the 40 yuan mark, it was already close to the predetermined peak, and Lu Yuanzhou intended to distribute his profits using the restructuring news. Lu Yuanzhou's profits were simply too great; not only had he swallowed Xiangtai Pharmaceutical, but he had also made a fortune using bank loans! Several hundred million yuan should be no problem!
What about the actual investment?
Zero yuan!

This young man's skill in manipulating financial leverage was so high that he had to admit defeat.

However, the stock price of Xiangtai Pharmaceutical has suddenly become unpredictable. It is obvious that some unscrupulous manipulators have intervened by taking advantage of the People's Daily editorial to disrupt the market, suppress the stock price, and cause Lu Yuanzhou's profits to decline significantly.

Based on his understanding of Lu Yuanzhou's personality, he knew this young man would never back down and admit defeat. Therefore, Lu Yuanzhou would inevitably change his plans, using the restructuring as an opportunity to launch a counterattack and force the short-selling forces to their deaths!

Xie Yun could think of these things, but he couldn't care less about them.

He didn't take a single penny from Lu Yuanzhou. As long as the news of Xiangtai's restructuring was announced, passed the audit, and Wang Ting's transition was smooth, his task would be completed, and he could relinquish this uneasy chairman position.

Of course, he is also a human being, with emotions and desires.

His wife, Liu Huihui, had always wanted to make some money, constantly talking about how she wanted their son to have a good education and a secure future. He couldn't resist telling Liu Huihui about Xiangtai's restructuring and Lu Yuanzhou's plans, asking her to take out some of her savings to buy some stocks.

Xie Yun had already calculated that even with Xiangtai Pharmaceutical's recent continuous plunge in stock price, Liu Huihui had started from the beginning and was already making a profit of seven or eight hundred thousand yuan. Moreover, this money was earned flawlessly; even the anti-corruption bureau couldn't find any fault with it!
Thinking this, he felt a little regretful that he hadn't sold it for more than 40 yuan. Now it was only 30 yuan per share. But Liu Huihui should be content. This money was enough to send her precious son to study in the United States.

Xie Yun returned home at 7 p.m.

The main lights in the living room weren't on; only the flickering light from the television screen illuminated Liu Huihui's sullen face.

Xie Yun wasn't surprised at all; Xiangtai had fallen again.

Upon seeing him return, Liu Huihui immediately put down the remote control: "Old Xie, your company's stock price has been falling strangely lately. Should I just sell it?"

Without a second thought, Xie Yun nodded: "Sell it. Sell it as soon as the market opens tomorrow."

Liu Huihui suddenly tensed up, leaning forward and staring at Xie Yun, as if trying to find a clue on his face: "Has something happened? Your company hasn't even announced the restructuring yet. Didn't you say that after the restructuring announcement, there would definitely be another big surge, and it wouldn't be too late to sell then?"

Xie Yuntai knew his wife's personality well; she was greedy and risk-averse. Logically, when he said she could sell the stocks, Liu Huihui should have felt relieved and immediately agreed.

He asked, "Are you hiding something from me?"

Liu Huihui's eyes flickered, and her voice carried a hint of guilt: "It's nothing serious. It's just that your sister saw that I kept buying and making money, so she bought some too. She bought late, so her costs were higher, and now she's a bit stuck."

Upon hearing this, Xie Yun felt a throbbing pain in his temples, and a surge of anger rushed to his head: "You even dragged my sister into stock trading?!"

Liu Huihui immediately retorted, "Her husband is capable and wealthy, and he invested voluntarily! I just gave her a code; if she wanted to come with me, could I stop her? Unlike you, my daughter and I have gone through so many hard times with you, and now you're in such a high position, what benefits have you gained? We finally have a reliable way to make money, and then you cause trouble here and there..."

Xie Yun was speechless, suppressing his anger as he said, "Foolish! I don't care about anything else, you need to contact her tomorrow and tell her to liquidate all her stocks. It's okay to lose a little, it's good to cut your losses in time."

Liu Huihui seemed not to hear her and pressed on, "Why does it have to be tomorrow? Old Xie, what exactly happened?"

Xie Yun was cornered by the questions. He knew he wouldn't get a good night's sleep until he revealed the truth: "Someone is trying to sabotage Lu Yuanzhou's plans! The situation is very complicated."

"Who?" Liu Huihui immediately jumped up from the sofa. The woman's posture suggested that she would fight anyone who dared to block her path to wealth: "Who's causing trouble? Isn't that guy surnamed Lu supposed to be very powerful? Can't he handle this?"

Seeing her shrewish demeanor, Xie Yun felt even more uneasy. He asked, "Why are you so agitated? Haven't you already earned seven or eight hundred thousand?"

Liu Huihui was speechless, and her eyes darted away.

Xie Yun walked over, his gaze sharpening: "What have you been hiding from me? Let me tell you, Xiangtai's situation is very complicated right now. If we make one wrong move, losing this label will be the least of our worries; this whole family will be ruined!"

Liu Huihui was frightened by these words.

She understood at least one thing: everything in the family came from her husband's position. Facing her husband's unprecedentedly stern gaze, she hesitated for a moment before saying, "Lu Yuanzhou lent me one million to invest in stocks."

"What?" Xie Yun was struck dumb, his face turning deathly pale. He swayed and stared incredulously at the audacious and greedy woman before him.

Liu Huihui tried to defend herself: "He said he would lend me the money with interest. You also told me that this deal was a sure thing, so I thought I would pay him back as soon as I sold the stocks, without anyone knowing and without any problems."

Xie Yun pointed at her, his fingers trembling, but he couldn't utter a single word in the face of this woman who was more trouble than she was worth.

A tremendous sense of crisis had overwhelmed him!
Xie Yun immediately got up and went to the study. But when he opened the study door, his chaotic mind suddenly remembered the relationship between his niece Li Yufei and Zhang Yunqi.

He stopped and, after a long pause, said to the air behind him, "If nothing unexpected happens, the one who caused this trouble is Zhang Yunqi."

After saying that, Xie Yun went into the study.

He picked up the phone and dialed Han Changjun's number: "Let's release the restructuring announcement first thing tomorrow morning."

******