Black technology: a super empire spanning two worlds

Chapter 294 [Is it time to take off?]

Funds have been aggressively buying up shares, breaking yesterday's high in seconds, and showing no signs of stopping, continuing their wild short squeeze.

Zhao Mingjie stared blankly at Likang Technology's stock price chart: "What the hell? Why did it suddenly surge like that? What happened? Did some funds make a 'fat finger' error?"

This sudden influx of funds into the market was not a mistake; it was clearly Mr. Li's bottom-fishing capital entering the market.

Zhao Mingjie witnessed firsthand how Likang Technology's intraday chart jumped straight from 1.45 yuan to 1.86 yuan, turning a -5.23% drop into a +21.57% gain in the blink of an eye.

His account went from a floating loss of -1.36% to a floating profit of +26.53%, turning a floating loss of more than 2700 yuan into a floating profit of 5.3 yuan.

"Ah, this..." Zhao Mingjie was stunned for a moment, then said, "It's not going to hit the 30cm daily limit up, is it?"

A limit-up on the Beijing Stock Exchange is a 30% increase. Zhao Mingjie, who originally planned to shut down the software, also decided to continue to see if Likang Technology could hit the limit-up price.

At this moment, the stock price surged by about 21 percentage points in a straight line before stopping. The price movement of the "weaving machine" stock suddenly became volatile, dropping by 7 percentage points in a matter of seconds, but then quickly rebounded.

Zhao Mingjie's unrealized profit from the stock also fluctuated wildly, sometimes reaching 20,000 to 30,000, sometimes 40,000 to 50,000, and then suddenly 30,000 to 40,000.

Mr. Li's traders did not push the price up to the limit in a straight line. His funds were not for charity, but for bottom-fishing. Pushing the price up to the limit in a straight line would make holders reluctant to sell. If no one sells, Mr. Li will not be able to get any shares. Pushing the price up to the limit would just be helping others carry the sedan chair.

Raising the price without locking it in at the daily limit, and allowing it to fluctuate at a high level, is a better way to shake out the opposing side's shares, especially those held by retail investors.

After all, if a stock rises so much but doesn't hit its daily limit, most retail investors will worry about a pullback after the initial surge, turning their profits into mere intraday gains. Based on this concern, they will choose to secure their profits and sell their shares.

However, Likang Technology is a stock listed on the Beijing Stock Exchange, and while there are some retail investors, they are not many.

The latest shareholder count shows that Likang Technology currently has a total of 1822 shareholders. In reality, there are fewer than 300 individual investors, and the combined market value of all individual investors' holdings is also very small.

The Beijing Stock Exchange's high barriers have blocked most retail investors, and these fewer than 300 retail investors are basically lying low and pretending not to exist. Many of them haven't even checked their accounts, and some haven't opened their accounts for a month or two. They don't even know that Likang Technology has surged.

The comment section of Likang Technology's stock forum is completely deserted. The latest comment shows that it was posted half a month ago, which shows that even a dog wouldn't use it.

That's the current market situation for stocks listed on the Beijing Stock Exchange.

If Mr. Li wants to extract chips from these hundreds of retail investors, he might as well give up and go to sleep.

However, he had no intention of shaking out retail investors' shares, because he didn't have much time to buy at the bottom, only a few days this week. As soon as Zhou Chengyang appeared at Lingjing Technology, he would be discovered by other peer institutions.

The capital market's attention to Lingjing Technology speaks for itself; other investors may not know Zhou Chengyang, or even pay attention to him.

But as soon as he goes to Lingjing Technology, he will definitely be discovered, and then he will have to compete with more peers for the prize. So the time left for President Li to enjoy the spoils alone is only a few short days.

The shares held by the hundreds of retail investors inside are definitely impossible to wash out. No matter how fiercely you operate, they won't even open the account to take a look. No matter how fiercely you operate, it's all for nothing.

Mr. Li's target for accumulating shares in the secondary market is not retail investors at all, but high-frequency quantitative trading funds. In the current A-share market, quantitative trading is booming, which is something that countless A-share retail investors deeply resent. Quantitative funds use AI models to assist in high-frequency trading, which can make hundreds of transactions per second, far exceeding the speed of human hands.

Quantitative trading involves robots performing automated operations based on quantitative models. As long as certain indicators of the model are triggered, the operation will be executed, regardless of the stock, whether it is a main board stock, a growth enterprise board stock, or a stock exchange listed on the Beijing Stock Exchange.

This is precisely the opportunity for Mr. Li to accumulate capital, because his own investment firm has quantitative trading accounts.
He wanted to quickly accumulate shares, and his strategy was to drive up the stock price, which meant letting the other party make a profit and leave, thus helping them exit with their profits.

Even if the price were to double or triple, it would be perfectly acceptable to Mr. Li, because he knew that Likang Technology had partnered with Lingjing Technology, and a price increase of several dozen times was not a dream, and even ten times was just the beginning.

As long as the chips change hands, even if it's at a premium of one or two times, it's a huge profit for Mr. Li. These are just small profits; the real big gains are yet to come.

When stock prices are driven up and fluctuate wildly, it can easily trigger a quantitative sell-off. At this time, it would be difficult for human traders to exchange shares, especially since most of the players in the Beijing Stock Exchange are cunning and ruthless.

But quantitative funds are different. As long as their indicators are triggered, they will dump the market immediately.

At 14:42 PM, Likang Technology's intraday chart ended its sideways movement and began a straight upward surge to 1.99 yuan, a gain of 30.07%, hitting the daily limit.

However, the trading volume of Likang Technology, which hit the 30cm daily limit, was only over 1200 million yuan. This amount of capital would not make a ripple in Lingjing Technology's trading, but it was enough to pull Likang Technology to a 30cm daily limit on the Beijing Stock Exchange.

Although the trading volume was only over 1200 million yuan, it was ten times higher than the trading volume of this stock yesterday, which can be described as a huge release of volume for this stock.

Today's trading volume didn't see Mr. Li accumulate many shares; not all of the trading volume went into his hands, other quantitative funds also grabbed shares.

There were quantitative traders dumping shares, and there were also quantitative traders rushing in to buy.

There are so many quantitative trading institutions in the A-share market now, with different quantitative trading models and different strategy models.

Mr. Li doesn't care about losing shares to other quantitative trading platforms. As long as there's turnover, that's fine. He's currently playing the role of a "good Samaritan," actively using real money to push up the stock price, triggering quantitative trading platforms, and increasing the turnover rate of the market.

Meanwhile, retail investor Zhao Mingjie was greatly excited as he looked at the intraday chart of Likang Technology: "Damn, it really hit the limit up! I never thought that my first time trading a stock on the Beijing Stock Exchange would give me my first 30cm limit up!"

He looked at his portfolio. He bought Likang Technology at a cost of 1.47 yuan, and the latest price is 1.99 yuan. After the stock hit the daily limit, he earned more than 30% today, but 35.37%, with a floating profit of about 7 yuan, because he bought it at a price about 4% below the opening price.

"What a ton of meat! So satisfying!" Zhao Mingjie was in high spirits. He truly hadn't expected Likang Technology to hit the 30cm daily limit up today. He couldn't help but mutter to himself, "Luckily I didn't hesitate too much. Luckily I bought it today; I managed to get on board before it took off, otherwise I'd be kicking myself..."

The emergence of Likang Technology's 30cm limit-up has filled Zhao Mingjie with anticipation. Could it be the prelude to take off?
On the same day, the stock exchange's daily trading data was released, and Likang Technology was also on the list, with both the buy and sell orders coming from quantitative trading institutions.

Without speculative capital, today's total turnover was only over 1200 million. With such liquidity, it's impossible for speculative capital to participate. Such a small stock has neither liquidity nor market capitalization, and it's also listed on the Beijing Stock Exchange. Speculative capital is afraid of being buried alive by the market manipulators if they come in.

Moreover, even if a stock hits its 30cm daily limit, it doesn't get much attention at all. Speculative funds don't look at it, and retail investors don't look at it either. Even if they do see it, they just glance at it and then look at other stocks.

……

(End of this chapter)