After divorce, I can hear the voice of the future

Chapter 151 Orders change overnight
In October 1987, the U.S. stock market experienced the largest crash in history, with the Dow Jones Industrial Average falling by -22.6% in one day.

Due to the lack of circuit breakers and price limits, many millionaires became paupers overnight, and this day was also called "Black Monday" by the financial community.

In October 1988, the U.S. Stock Exchange Commission approved the circuit breaker mechanism, which states that when the index falls by 7% in a short period of time, all markets will suspend trading for fifteen minutes.

It took a full nine years from the birth of the U.S. stock circuit breaker mechanism to its first triggering until October 1997.

The U.S. stock market needs time to test the feasibility of circuit breakers, but the A-share market focuses on efficiency. There were two circuit breakers in four days, four triggers, and 2 stocks hit the limit down X, which is better than the original.

"Looking at the world, this kind of grand occasion of our Big A is probably unprecedented and will be hard to be surpassed in the future."

Lu Liang was amazed and full of admiration. He quietly watched the various mocking and sarcastic jokes that emerged online. He couldn't help laughing several times. This generation of netizens is really talented.

Although his backstage was almost @ed by people, he just didn't come out to respond. He dared to swear to heaven that the liquidation and dividends were purely a coincidence, but no one listened.

One after another, there were conspiracy theories, saying that his liquidation was a silent attack on the circuit breaker mechanism.

Any explanation would also be considered a cover-up, so it is better not to say anything.

Near noon, Zhao Jisheng from the China Securities Regulatory Commission called and said humbly, "Mr. Lu, do you have time? Our boss wants to talk to you and hear your opinion."

Lu Liang smiled bitterly. It was obvious that the other party also felt that he chose to liquidate his positions because he was not optimistic about the circuit breaker mechanism, but he was not sure whether he was here to hold him accountable.

"There is time now."

He pondered for a moment and nodded in agreement. Zhao Jisheng quickly said, "Then wait a minute. I'll let our boss listen."

Ten seconds later, the phone was answered by a slightly tired male voice. He asked directly: "Hello, Mr. Lu, is the circuit breaker mechanism really not suitable for our stock market?"

"Mr. Xiao, the original intention of the CSRC is good. The circuit breaker can provide investors with time to think calmly and avoid making irrational investment decisions under panic."

"But some mechanisms only apply to U.S. stocks. We have price limits, so setting up a circuit breaker may be a bit redundant."

Lu Liang talked freely, although he did not know whether the introduction of the circuit breaker mechanism was good or bad for A-shares, but judging from the market performance, it should be bad.

These days' melons have not been eaten in vain. I can cite a few examples and make some analysis with the benefit of hindsight.

Regardless of whether what he said is reasonable or not, the current results have proved that the circuit breaker mechanism is indeed not applicable to the A-share market.

Lao Xiao was silent for a long time, then sighed, "Mr. Lu, I understand. Thank you very much, but please don't lose confidence in the domestic market."

Lu Liang was helpless, but he could only respond seriously: "Mr. Xiao, you are worrying too much. We are very optimistic about the domestic market. We are just temporarily making technical adjustments."

Even the head of the China Securities Regulatory Commission said so. He estimated that until the British referendum is over, he will have to bear the blame.

In the evening, the China Securities Regulatory Commission held a press conference and announced that in order to maintain stable market operation, the implementation of the index circuit breaker mechanism would be suspended from January 1.

The spokesperson said that judging from the two actual circuit breakers, the expected effect was not achieved, and the circuit breakers had a certain "magnetic effect". Weighing the pros and cons, the negative impact outweighed the positive effect. Therefore, in order to maintain market stability, it was decided to suspend the circuit breaker mechanism.

The next day, Lu Liang received news that Lao Xiao was in the process of going through the resignation procedures and applying for internal retirement.

A new policy existed for seven days and was implemented for four days, but it led to the tragedy of thousands of stocks hitting the daily limit X2. The A-share market became a laughing stock in international finance. Someone must be held accountable for this.

“The A-share market is going downhill.”

Lu Liang whispered to himself, "Thousands of stocks hitting the daily limit down X2 is a small matter, but the blow to public credibility is a big one. Although it was rectified in time, the impact caused is very far-reaching."

If the follow-up is not handled well, the A-share market will gradually decline. After all, in a market where policies change every day, who would dare to invest in the long term?

Nearing nine o'clock,

The first trading day after the circuit breaker mechanism is cancelled.

Lu Liang came to the trading room next door and planned to use 30 billion yuan to buy up new energy stocks and various blue-chip stocks.

11 billion US dollars, more than 70 billion RMB, cannot make any money just by lying in the account, and the referendum will be held in more than a month.

If you buy the A-share market at the bottom now and make a short-term investment for one month, you will definitely not lose money, it is just a matter of how much you can earn.

He is not the only one who holds this idea. Institutions, hot money and even retail investors all have the same idea as never before.

Just one minute after the Shanghai Composite Index opened, the trading volume reached 772 billion, thousands of stocks were in the green, and more than 200 stocks hit the daily limit.

Looking around, everything is red, as if the two circuit breakers on Monday and Thursday, with thousands of stocks hitting the daily limit x2, were just a dream.

"From today, there are 20 trading days left until the Spring Festival holiday, starting on the last five working days."

Lu Liang thought for a moment and assigned the next task to Sun Yutao and Zhang Jing. It would be the 26th day of the twelfth lunar month when this task was completed.

We will have two days of statistics on the 27th and 28th, then organize all employees to have a New Year's Eve dinner, and then start the holiday on the 29th, New Year's Eve.

When we come back on the sixth day of the Lunar New Year, which is February 2, we can start preparing to short the pound. Lu Liang walked out of the trading room and came to Tang Caidie's office to ask about the charity plan and the annual meeting plan.

He subscribed for five shares in the second phase of the private placement, totaling US$3260 million, and still had US$ million in his account.

Because of business investment, the funds have always remained in the company's account and it is not yet time to settle and pay taxes.

"Forget about the Red Cross project, let's see if there are any more reliable projects."

Lu Liang planned to donate 5000 million yuan for charity, but he just couldn't trust the group of hanged people in the Red Cross.

They drive BMWs and Mercedes-Benzes and keep mistresses. With 5000 million yuan in their hands, I wonder if they can use 50 yuan for actual use.

Although it is a tax deduction, Lu Liang still hopes that the funds can go to where they should go and help those in need.

Tang Caidie also hated those who just sat there doing nothing. She suddenly thought, "Boss Lu, take a look at this project that costs only one egg."

Initiated by singing artist Cao Yi, a charity concert is held in 100 cities every few years to subsidize needy children in poor mountainous areas to eat one egg every day. Once launched, the project has received strong support from eight major ministries including civil affairs, agriculture, science and technology, industry and commerce.

"If you think it's good, go check it out."

After reading it, Lu Liang gave full authorization to Tang Caidie to look at the next document, which was about the arrangements for the annual meeting.

The company has a total of 85 employees. In addition to the established year-end bonuses, it plans to set aside 230 million as activity funds.

The venue expenses are estimated to be 30, and the remaining 200 million will be used for prizes and bonuses. The lowest Sunshine Prize is 3888.

The Apple phone is only the third prize, the second prize is a laptop computer worth tens of thousands of dollars, and the first prize is three BMW 3 Series.

Initially, the total budget for bonuses and prizes was only 100 million, but Lu Liang felt it was a bit too little, so he doubled it.

"That's it for now."

Lu Liang was still not satisfied, feeling that it was still a little too little, but the company had few people, and 200 million meant that each person would get more than on average.

In the evening, Xiao Wang came back from Star City, Hello Goddess came to a successful conclusion, and Panda firmly took the third place in the live broadcast industry.

First-tier venture capital firms such as Sequoia, Goldman Sachs and Hillhouse Capital have all raised their company valuations from $1.5 million to $2.7 million.

This variety show, which cost 3500 million yuan to produce, brought more than 20 times the added value to Panda.

"Old Lu, I think I still hold 72.25% of the shares."

Xiao Wang was beaming with joy as the Panda business alone had added 12 billion RMB to his wealth.

He thought that he could speak louder in the future.

"I have over 70 billion in cash. Just tell me what you want to do?" Lu Liang said calmly.

It's okay to pretend in front of others, but if you dare to pretend in front of him, I can kill you with money.

What’s more, Panda is still generating negative profits, with a net loss of 3500 million last year, and profitability is nowhere in sight.

Valuations are all fake. If something goes wrong, they will be wiped out instantly, which is common.

"Can you please stop being so discouraging?"

Xiao Wang was full of anger. Even Wanda might not be able to come up with 70 billion in cash.

"You are asking for trouble, you can't blame others." Lu Liang packed up his things and prepared to go home.

"Let's go to Sister Zhuang's place for a drink tonight?" Xiao Wang said hurriedly.

For this variety show, he hasn't been to the bar for two months and missed the life of feasting and drinking.

"Not interested in."

Lu Liang shook his head, walked to the door, and suddenly stopped: "If it's really for the good of the pandas, I suggest you go less often."

Xiao Wang looked unhappy: "When did your thinking become so old-fashioned?"

"It's not that you're old-fashioned, it's just that you don't have the ability to go against the trend and be unique."

Lu Liang smiled and said no more. If it was him, it would be okay, but Xiao Wang was far worse.

Going to bars every day makes it hard to believe that he can manage a business.

(End of this chapter)