Black technology: a super empire spanning two worlds

Chapter 354 [The Sharks Have Gone Mad!]

Today's limit down for Likang Technology is the first limit down since the company listed on the Beijing Stock Exchange. Even when the stock price had been falling all the way down and had been halved again, it had never hit the limit down before.

After all, a single limit down on the Beijing Stock Exchange can be as high as 30 points, which is quite difficult.

Even though the stock price has surged from 1.07 in recent months, and there have been several sharp drops during that period, it has never hit the daily limit down.

But at this moment, Likang Technology's stock price is firmly locked at the daily limit down, with absolutely no possibility of it being opened.

At the same time, related concept stocks on the main board, such as those related to the adult entertainment industry and the humanoid robot industry, also collapsed collectively along with the "sudden death" of the main board, with funds fleeing frantically and a wave of limit-down stocks.

Even Lingjing Technology, the "Spirit Emperor," was not spared. After the market opened in the afternoon, it quickly plunged by 7 percentage points and then continued to decline. The only thing worth mentioning is that Lingjing Technology did not experience a straight-line crash and even had some rebounds during the session.

However, as time went on, Lingjing Technology's price continued to fall to new intraday lows with each rebound, until after three rebounds it began to decline in one direction and never saw any significant rebound again.

Around 14:39 PM, Lingjing Technology's stock price fell to 508.30 yuan, a drop of -20.00%, hitting the daily limit down, and its market value dropped back to 44.12 trillion yuan.

The two stocks ranked first and second in market capitalization on the A-share market both hit their daily limit down.

One stock hit its 20cm limit down, and the other its 30cm limit down. The limit down of these two companies spread panic throughout the market, causing all three major stock indices to plunge in the afternoon.

Likang Technology lost 1.17 trillion yuan in a single day, while Lingjing Technology, although its decline was 10 percentage points less than the former, lost an absolute amount of 11.03 trillion yuan in market value, ten times that of the former.

After the market closed, investors exclaimed that Ashin's reputation as a "whistleblower" was becoming increasingly valuable.

Many people are reminding themselves that if Zhongxin Securities were to "bullish" a particular stock again, they would rather believe it than sell.

……

The entire market is paying attention to the fact that Likang Technology was jointly summoned by eight departments, and people from all walks of life on the internet are also paying attention, including those who are currently experiencing severe unemployment anxiety.

This is the hot topic for the next weekend.
Rumors, both true and false, are flying everywhere. On a weekend morning, an unverified rumor claimed that the Liuguang Xingyu lifelike robot product might be suspended, and that all pre-orders placed by Likang Technology would be voided and payments refunded to consumers.

Even more outrageous rumors claim that already delivered goods will be recalled, suggesting a blanket ban.

The situation became even more chaotic, and many consumers who had already placed orders were starting to get restless. Those who had ordered "Flowing Star Language" during this period were also opposing and criticizing Zhou Chengyang.

However, what they oppose is that this robot will take away human jobs, or more directly, they oppose the corporate version of Flowing Star Language, not the personal consumer version.

Those who are willing to pay in advance and wait for delivery even when production capacity is severely insufficient are truly passionate about this product.

But now that such outrageous news has surfaced, they are genuinely worried that the relevant authorities will take drastic measures against them.

The girls who originally hated this product are now celebrating wildly, opening champagne to celebrate Liuguang Xingyu's "Bao Si".

Regardless of how chaotic the news is, one thing is certain, and there is a general consensus among various parties: Likang Technology was jointly summoned by eight departments, and the possibility of Liuguang Xingyu Enterprise Edition entering various industries is slim.

The joint crackdown by eight departments is the clearest signal that it is impossible to allow Likang Technology to develop in a disorderly manner, causing widespread unemployment and social unrest.

In other words, Likang Technology has encountered a killing logic, and what is even more worrying is whether it will be completely shut down, and the personal consumer version of Liuguang Xingyu will also be stopped. Even if it is not stopped, will it be restricted?

These major negative expectations have formed rapidly in the present, and if this happens, Likang Technology's current market value is seriously overvalued.

……

Monday, November 25th.

The stock price movement of Likang Technology has caused an uproar in the market. Last Friday, it plummeted by 30% and hit the daily limit down for the first time. Today, it opened at the daily limit down again.

This is a limit down on the Beijing Stock Exchange, a sharp drop of -30% in one go. For a stock with such a large market capitalization, it can still continue to fall to the limit down after already falling to the limit down of -30%, and even has a one-word limit down. Many people think that it is impossible for it to fall to the limit down for so long.

But Likang Technology was completely hammered down today, hitting the daily limit down. To be fair, the large amount of quantitative trading and algorithmic trading involved in this stock amplified this extreme market condition. Just like the previous surge, the rise was extremely volatile, almost wiping out ten years' worth of growth expectations within a month. It's just that now it's gone from one extreme to the other.

Now everyone was no longer in doubt and unanimously agreed that the 9999.99 yuan "leopard top" was the super cosmic-level historical peak of this stock.

Likang Technology experienced two consecutive 30cm limit-down days, with its stock price falling to 4122.67 yuan today. Compared to its historical peak, the cumulative drop has reached -58.77%, which is more than half of its previous value.

Even those who bought in during the morning's positive trading session last Friday still saw their investment halved in just two days; one limit down resulted in a 30% drop, and two limit downs resulted in a 51% drop.

Lingjing Technology, which is next door, also plummeted today. It opened sharply lower by 6.26% in the morning auction and did not rebound at all. It continued to fall, dropping by more than 12.5% ​​at one point during the day, before rebounding slightly at the end of the day.

At the close of trading, Lingjing Technology plummeted 10.45% to 455.19 yuan, with a market capitalization of 39.51 trillion yuan.

In just two trading days, the market value of 15.6 trillion yuan evaporated.

With both companies experiencing such sharp declines, the entire A-share market is not faring much better, dragged down by the plunge.

Likang Technology has experienced consecutive limit-down days, and investors thought it was impossible for it to hit the limit-down again tomorrow, since it had already crossed the halving line. Even if it fell further, they thought it would at least have a technical rebound before continuing to sell off.

Unexpectedly, Likang Technology hit its daily limit down again on Tuesday and remained locked at the limit for the entire day.

This stock has made history again, becoming the first stock in the history of the Beijing Stock Exchange to experience three consecutive days of limit-down. Likang Technology's stock price plummeted to 2885.87 yuan, a cumulative drop of -65.70% in three days. It has also plummeted -71.14% from its historical high of 9999.99 yuan, shrinking its market value to 1.34 trillion yuan. It has already lost a huge amount of 3.3 trillion yuan from its peak market value.

Meanwhile, Lingjing Technology, a neighboring company, continued its sharp decline today, closing down 6.54% at 425.43 yuan, with its market capitalization falling back to 36.92 trillion yuan.

……

The following Wednesday.

Lingjing Technology continued its downward trend, falling 4.70% on the day to close at 405.43 yuan. Its market value dropped to 35.19 trillion yuan, a cumulative drop of 39.18% from its historical high of 666.66 yuan. Its market value has evaporated by 22.67 trillion yuan from its peak.

However, judging from the distribution of shares, there are not many trapped investors. The previous surge did not release a huge volume. For most holders of Lingjing Technology, the current sharp drop only means a significant profit pullback.

At this point, the "village chief" really wanted to jump out and say, "See? It was the right decision not to include Lingjing Technology in the index constituents, wasn't it? If it had been included in the index, wouldn't there have been a stock market crash? Now it's much better; even though the market is falling, it's still around 3150 points."

Lingjing Technology suffered four consecutive days of sharp declines, but the decline has begun to narrow. On the first day, it hit the 20cm limit down, on the second day it fell 10 points, yesterday it fell 6.5 points, and today the decline has narrowed to less than 5 points.

However, the drop in Likang Technology next door was exceptionally severe. Even the onlookers felt a chill. This stock had surged dramatically before, but the crash was even more dramatic.

Today, Likang Technology opened at the daily limit down. Although it briefly opened during the session, it was locked at the daily limit down again, with a total turnover of 130 billion yuan.

Likang Technology experienced four consecutive days of limit-down trading, with a limit-down in the Beijing Stock Exchange market being -30%. Today's closing price has fallen to 2020.11 yuan, and its market value has fallen below one trillion yuan, leaving it at 9393.51 billion yuan. The cumulative decline reached -79.80%, and 3.7 trillion yuan of market value has vanished.

Without a doubt, the 130 billion yuan worth of transactions today were all from people cutting their losses, and at a huge loss.

However, many A-share investors applauded, because everyone knew that the quantitative trading funds, which had been invincible in the market, had suffered a major setback with Likang Technology.

Several reports have surfaced that a large number of quantitative trading institutions have suffered heavy losses on Likang Technology stock. Since the "9.24 rally," the profits they made have been wiped out by Likang Technology, with some quantitative trading institutions even incurring losses.

When retail investors in the A-share market saw this news, they all gave it a big thumbs up. Because any retail investor who has been playing the A-share market for a long time has been burned by quantitative trading. Seeing that quantitative institutions have been badly cut, retail investors are happy to celebrate.

However, for every person who suffers a huge loss, someone else will surely make a huge profit; wealth doesn't disappear into thin air, it's just transferred.

Those who made money were those who left earlier. For example, a small investor like Zhao Mingjie turned 20 yuan into 4.3 million yuan, directly achieving a leap in social class.

There are also the speculative funds, large investors, and quantitative institutions that followed. Only the funds that took the last leg of the journey will pay the price for the profits of those who came before.

……

(End of this chapter)