Black technology: a super empire spanning two worlds

Chapter 321 [Prices Have Gone Crazy]

The following Tuesday.

After yesterday's rebound and limit-up, Likang Technology experienced further volatility today. It opened sharply higher by 16.14% in the morning auction, but quickly plunged by nearly 10 points after the opening, reducing its gains to +6.98%, before rebounding.

Around 10 o'clock, the stock price turned from weak to strong, surging to a 30.00% limit up, forming a two-day winning streak after the reversal, pushing the stock price to a new high of 185.77 yuan, and the company's total market value reached 863.83 billion yuan.

At 14:27 PM, Likang Technology's stock price hit the daily limit but then plummeted, failing to recover by the close of trading.

It ultimately closed up 22.23% at 174.67 yuan, with a market capitalization of 812.21 billion yuan after the market closed. Today's trading volume also broke records, reaching 59.35 billion yuan.

……

Wednesday, April 28nd.

Likang Technology opened with a gap up in the morning auction, and the auction result reached a new high of 191.57 yuan. After the opening, it continued to rise, reaching a high of 212.94 yuan during the session, with an increase of +21.91%.

This was also the highest price of the day. After 11 a.m., it began to weaken and accelerated its decline in the afternoon.

The stock closed down 4.87% at 166.17 yuan, with a market capitalization of 722.69 billion yuan. The total trading volume for the day was 58.75 billion yuan, roughly the same as yesterday.

……

Thursday, August 29.

On Thursday, which is known as the "statutory day for market crashes," Likang Technology opened 2.73% lower in the morning auction. Just when investors generally thought the stock would fall further today, it immediately rallied and strengthened after the opening.

The opening price that day was also the lowest price of the day. Sixteen minutes later, at 9:47 a.m., Likang Technology's stock price surpassed yesterday's high, rising to 216.02 yuan, a 30.00% increase, hitting the daily limit up, and once again showing a low-volume reversal pattern.

Two minutes later, major market data software platforms pushed out notifications:
[Likang Technology hit its daily limit in early trading, marking its 9th consecutive daily limit in the last 13 days. Its market capitalization has surpassed the 100 billion yuan mark for the first time, making it the first A-share listed company on the Beijing Stock Exchange to achieve this milestone. Current trading volume is 45 billion yuan.]

After hitting the daily limit up today, the stock remained locked at the limit for the entire day without any further drops. Likang Technology's total market capitalization reached a new high of 1004.49 billion yuan.

A-share investors were practically drooling over the crazy surge in Likang Technology's stock price. They only regretted not having trading privileges on the Beijing Stock Exchange and could only watch helplessly as it took off, soaring all the way up with envy.

……

It was Friday, August 30th.

Today is the last trading day of the week, and the weekend is September 1st, which is the day when "Flowing Star Language" officially opens for pre-orders.

In the morning, Likang Technology opened flat, then fell, dropping more than 6% before stabilizing.

Clearly, some of the funds involved in the game saw that there was little premium and simply cashed out and ran away.

Today is Friday, and the day after tomorrow is the weekend when Liuguang Xingyu will place orders. In the capital market, this is considered a realization of positive news and a time for selling off inventory.

Moreover, the trading volume of this stock has also increased, with the daily turnover reaching 50 billion, which can accommodate large funds' short-term inflows and outflows.

The market volatility has intensified this week, largely due to the entry of many top speculative investors. Yesterday's trading data revealed that a well-known speculative investor who was known for dumping shares bought into the stock yesterday and dumped it at the opening today. Others followed suit, causing the stock to retrace at the open.

According to the stock exchange's trading data, the top five buyers included two speculative investors, one institutional investor, and two quantitative trading funds, while the top five sellers included one speculative investor, three institutional investors, and one quantitative trading fund.

Yesterday's trading data also shows that Likang Technology, listed on the Beijing Stock Exchange, has virtually no retail investors participating. The high entry barrier has blocked the vast majority of retail investors, making it a battleground for speculative capital, institutional investors, and quantitative funds.

While there are individual investors, they are very few and far between, and they are mostly wealthy large investors.

However, after dipping to -6%, Likang Technology's stock price stabilized due to strong buying support. At 9:50 AM, it reversed its downward trend, quickly rising above the zero line and turning positive within a minute. Around 10:00 AM, the gain expanded to +18.36%. By 10:17 AM, Likang Technology had reached a new historical high of 280.83 yuan, a 30.00% increase, hitting the daily limit and pushing the company's market capitalization to a new high of 1305.85 billion yuan.

"It's going crazy! It's going crazy! Amazing! Absolutely amazing! It's truly unstoppable!" Zhao Mingjie was incredibly excited when he saw Likang Technology hit its daily limit up, because he was still holding on and hadn't sold a single share.

The second major upward wave saw the price surge from 12.98 yuan to the current all-time high of 280.83 yuan, representing a cumulative increase of +2063.55%, or more than 20 times.

"I originally thought that a tenfold increase in the second major upward wave would be impressive enough, but I was wrong. It actually managed a 20-fold increase, which is insane." An excited Zhao Mingjie was also amazed as he looked at the K-line chart of Likang Technology.

Who would have thought that this stock, which hit a record low of 1.07 yuan in June, would rise to its current price of 280.83 yuan?

As the market has progressed, Likang Technology's annual increase has expanded to +8621.43%, an 86-fold increase over the past year. From its historical low of 1.07 yuan, the increase has reached +26145.79%, a staggering 261-fold increase, all in just about 3 months.

Zhao Mingjie, who bought 20 shares at the bottom price of 1.47 yuan and has held them ever since, is making a fortune. When the stock price just hit the daily limit, his portfolio return rate soared to +19004.08%, a 190-fold increase, and the market value of his holdings also soared from 20 yuan to 3819.28 million yuan.

In just one and a half months, Zhao Mingjie, whose original value was less than 100 million yuan, made a profit of nearly 3800 million yuan. He has achieved financial freedom through the stock of Likang Technology.

Meanwhile, Zhao Mingjie, looking at the screen, exclaimed in surprise, "Hmm, was it 'headshot'? It wasn't blocked?"

Just a short while ago, Likang Technology's intraday price touched the daily limit up price. Some funds worked together to push up the price by 5 million yuan in seconds, and one group of speculative funds bought more than 8000 million yuan to try to lock the price up to the daily limit.

But it was "slammed" in less than three seconds, and the one who dumped the shares was none other than quantitative funds, including another group of speculative funds that entered yesterday.

At 13 p.m., just after the market opened, Likang Technology attempted to rebound and close at the limit up, but when it reached +29.83% and was about to close at the limit up again, it was pulled down by quantitative analysis. After that, it began to weaken and fluctuate downwards all the way down, and even accelerated its decline at the end of the day.

After the market closed, Likang Technology rose 11.60% to 241.08 yuan, with a market value of 1121.02 billion yuan. Today's trading volume also broke records, with a total turnover of 71.12 billion yuan.

Today, the funds that led the price surge suffered significant losses and failed to recover, leading many investors to believe that the second phase of the main upward trend has ended.
The combination of a 20-fold increase, Friday's price surge, and the upcoming September 1st opening date for the "Flowing Star Language" lottery all point to the realization of positive expectations, coupled with quantitative funds dumping shares.

Moreover, this main upward wave has already seen two reversal rallies. Among the many short-term surges in the market, it is rare for a stock to experience three reversal rallies. As the saying goes, one or two reversals are possible, but not three.

All these factors combined have led to a reluctance among off-market funds to enter the market and take over.

The stock of Likang Technology is becoming increasingly heavy, with trading volume reaching 70 billion yuan, and it is also listed on the Beijing Stock Exchange.

Such a heavy sedan chair is simply too heavy for the few retail investors following the trend to handle. However, the millions of retail investors on the main board are eager to take over, as everyone is eyeing this super popular leading stock.

However, the high barriers to entry prevented the large number of retail investors from taking over the shares. Even if the "family members" wanted to buy in, they had no way to get in and could only watch and see what happened.

This situation is now a battle of wits, a clash between titans.

Clearly, off-market funds want to take over the losses from short-term investors who entered the market today, given the extreme volatility of stocks on the Beijing Stock Exchange; a single day's price swings can result in a near 50% drop.

Such large fluctuations are too much for even some big-name speculative investors to handle. Not everyone has the cost advantage that Zhao Mingjie has, allowing them to be complacent and accept significant profit retracements.

In the days that followed, with the arrival of the weekend, the attention of investors in the capital market and netizens across the internet once again focused on Likang Technology, and it once again topped the trending search list, with four of the top ten trending search terms being related to Likang Technology.

Because the "Flowing Star Language" app officially opened for pre-orders on the weekend of September 1st, the number of visits to Likang Technology's official website has once again reached a new high.

Thousands of consumers are already preparing to place their orders, because the "Flowing Star Language" product adopts a pre-order delivery model. The earlier the order is placed, the sooner it will be delivered.

……

(End of this chapter)