Starting with a fully invested A-share portfolio to become a capital...

Chapter 127 The Flying Man, Clearing Out Stocks

June 1st is Children's Day.

This is a commemorative holiday established to protect the rights of children around the world to survival, health, and education.

Unlike traditional holidays, or rather, today is Children's Day, so it does not affect the opening of the Chinese stock market.

The global economy continued to recover during the four-day holiday when markets were closed.

The Eurozone manufacturing PMI rebounded to 47.5, and a research report from Goldman Sachs on Wall Street characterized this data as a signal that Europe has bottomed out.

美国则是公布了资产负债表，总资产规模是2到2.3万亿美元，较2008年初的约0.9万亿美元翻了1倍多。

It's worth noting that in March 2009, the Federal Reserve announced the purchase of long-term Treasury bonds and mortgage loans to support the financial sector. After two months of planning, May was the implementation phase of this policy.

This marks the first time the Federal Reserve has used quantitative easing on such a large scale, demonstrating its strong determination to escape the subprime mortgage crisis.

During these four days, China also received some good news, namely the release of the "Detailed Rules for the Plan to Promote the Development of Ten Major Industries and Drive Consumption and Investment."

The ten major industry revitalization plans cover automobiles, steel, textiles, equipment manufacturing, shipbuilding, electronics and information, light industry, petrochemicals, non-ferrous metals, and logistics.

Huaxin Securities researcher Lin Han pointed out that the short-term goal of the ten major industries is to stabilize employment and mitigate the impact of the financial crisis on the real economy, while the long-term goal is to promote industrial upgrading, enhance independent innovation capabilities, and lay the foundation for high-quality economic development.

Taking the automotive industry as an example, the government will halve the vehicle purchase tax for passenger cars with engine displacement of 1.6 liters and below, and support large automakers to merge and reorganize, eliminate outdated production capacity, and form several automotive groups with production and sales exceeding one million vehicles.

At the very end, the research and development and promotion of new energy vehicles were also mentioned.

Yes, in May 2009, new energy vehicles were already included in the country's long-term development plan.

There is no such thing as leading out of thin air in this world; it is only achieved through years of hard work and gradual accumulation.

When Zhang Yang saw the "Detailed Plan for the Development of Ten Major Industries and the Dual-Wheel Drive of Consumption and Investment," he was somewhat surprised and finally understood why China's automobile industry would experience explosive growth more than a decade later.

Unfortunately, the concept of new energy vehicles currently has no investment value.

Just like meeting the right person at the wrong time, or meeting the wrong person at the right time, the ending will always be dismal.

When making investments, one should neither be too forward-thinking nor short-sighted; moderation is the key to success.

……

9 points.

The A-share market officially opened.

In order not to disturb his roommate's nap, Zhang Yang went to the financial analysis room of the Shanghai University of Finance and Economics Library again and found a seat.

The reason he didn't go to Hongyue Investment is mainly because he's been busy with company recruitment lately. He currently plans to recruit for positions such as content operations, user operations, and review editors.

First, record suitable candidates, and once the website goes live, you can have them start working there.

If we start recruiting after the website is launched, things will get a bit chaotic.

Perhaps due to a multitude of positive factors, or perhaps due to the catch-up rally of heavyweight stocks, ICBC opened at 4.38 yuan.

Not only ICBC, but almost all heavyweight stocks are rising.

Li Daxiao, who was far away in Lujiazui, Shanghai, could no longer suppress his smile and posted a video on Weibo to shout out.

[Comrades, comrades, the "bullish ox" has emerged! Our baby bottom will grow into a bullish ox on Children's Day, June 1st, 2009. Congratulations to the shareholders who bought good stocks—you are smart!]
The moment the video was released, tens of thousands of "Xiao students" were in an uproar.

[Children Never Grow Up]: Who said Teacher Da Xiao is a contrarian indicator? Who has been slandering our Teacher Da Xiao all this time? Stand up now, or I'll beat you to death!

[Lemon Not Sour]: As expected of the number one value investor in China, Teacher Da Xiao's level is high enough. I made a fortune from blue-chip stocks the whole time!
[Don't like eating breakfast]: Wow! Apart from the H1N1 flu concept, almost all other sectors are rising, it feels like a retaliatory rise.

Unlike Li Daxiao's fans who celebrated with champagne at the halfway point, countless stock market investors who liked to speculate and take shortcuts were now completely plunged into despair.

Especially on the Eastmoney stock forum, investors were wailing in despair.

[Cola Doesn't Invest in Research]: No, please don't let it fall any further! Isn't Da'an Gene Xu Xiang's stock? How come it's hit the daily limit down again?!
[A Corn]: My girlfriend cheated on me, and I didn't cry. My first love got pregnant and we got married, and I didn't cry. But after losing over 100,000 yuan in three trading days, I really couldn't hold back anymore. Is the A-share market even for humans?
[Wawa Buwawa]: I originally thought of investing in stocks to improve my family's financial situation, but now I'm so poor that I want to go out and collect bottles.

[Guangdong Tough Guy]: Does anyone know how to become a male porn star? I've lost so much money I can't afford to buy more, and I want to try my luck in the adult film industry to make some quick money. I'm waiting online, it's urgent.

The polarized trend continued until the official opening at 9:30 AM.

The Shanghai Composite Index opened higher, having closed at 2632.93 in the previous trading day. It is currently opening at 2668.4, up 1.35%.

The Shenzhen Component Index also opened higher, having closed at 10127.92 in the previous trading day. It is currently opening at 10267.74, up 1.38%.

Normally, the Shenzhen Component Index should rise by 1 to 0.5 times that of the Shanghai Composite Index. Now that they are close, there must be a sector that is dragging down the index.

Zhang Yang casually clicked on the biopharmaceutical sector, which is related to the H1N1 influenza concept, and sure enough, it experienced another collective pullback.

Jianfeng Group, Hualan Biological, and Da'an Gene have hit the daily limit down for three consecutive days, and other stocks are also being hammered down.

At this point, there were still 400,000 sell orders for Jianfeng Group, and the stock price reached 15.74 yuan. Countless shareholders experienced the feeling of their stock price being halved.

If Zhang Yang remembers correctly, Jianfeng Group's stock price reached 25.91 yuan at 9:15 AM on May 26th. Now, it's no exaggeration to describe the plight of the shareholders who are stuck at the top of the market as "worse than being a prostitute."

10 points.

Zhang Yang watched the market for an hour, and the results were largely in line with his predictions. He then opened his VIP market research group and typed a reminder.

[joker]: The investment trend in A-shares has shifted, with speculative stocks being abandoned by the market and major funds flowing into heavyweight sectors.

As of 10:15 AM, A-shares showed a trend of rising prices with increasing volume, especially the Shanghai Composite Index, where over 10 billion yuan of funds flowed in.

What does an increase of tens of billions mean?
Keep in mind that this is 2009. The trading volume on the previous trading day was 1032.79 billion yuan. Currently, the trading volume of the Shanghai Composite Index has reached 470 billion yuan. With a trading volume of 470 billion yuan in just one hour, many experts predict that the trading volume of the Shanghai Composite Index today will exceed 1500 billion yuan, and may even reach 1800 billion yuan.

This is the first trading day with increased volume after four consecutive days of declining trading volume.

As for the Shenzhen Component Index, its trading volume was not significant, with an increase of only 60 billion.

Domestic capital is making efforts.

Foreign investment is pouring in.

It would be hard for the price not to rise today.

However, some investors were cautious and chose to take profits.

Because the A-share market is notorious for its sharp drops, times like 10:00 AM, 10:30 AM, 1:00 PM, and 1:30 PM are all key turning points.

Want to be a big shot?
It's easy to get deeply trapped.

As soon as Zhang Yang's message was released, the retail investors in the group instantly went wild.

[White Sanctuary]: Listening to Joker is always right, I've fallen in love with this man to death, he helped me accurately escape the top!

[King of Earth]: My colleagues at work were all talking about how much they lost, but I was the only one who made tens of thousands of dollars in profit. Damn Joker, you're making me feel so out of place!!

[Little Cat Meow Meow Meow]: Is Joker single? I want to have your baby. This is a personal photo of me.

[Cookie]: No, you're Liu Yifei (a famous Chinese actress)? Although you're good-looking, you're too good at investing. We're making money, and you're trying to make money off men?

Zhang Yang glanced at the group messages and then copied the message to the VIP Market Research Report Group 2.

Since I helped the group members accurately predict the market top, more and more retail investors have joined the group.

The original 70-person group 2 has grown to 240 people in just five days, generating a net profit of 15,300 yuan. It's worth mentioning that today is June 1st, and many people's monthly subscriptions have expired. However, since everyone joined the group at different times, it's difficult for Zhang Yang to check each person individually, and it would be extremely time-consuming.

However, once "Caiyan.com" is officially launched, he will no longer need to use QQ group notifications; he can issue warnings directly through the website. In addition, the monthly subscription fee will be standardized.

"Cough-cough-"

A coughing sound alerted me on my computer's QQ.

[Zen City Shadowless Kick]: Brother Joker, is it still a good time to buy blue-chip stocks? I'm a bit afraid of heights. I heard from a stock trader that if you tell him to buy some blue-chip stocks, is it still a good time to buy at this price?
[joker]: Teacher Da Xiao has always emphasized that buying good stocks and being a good person will bring good rewards. Blue chips haven't peaked yet.

[Zen City Shadowless Kick]: I'd rather flip a coin than believe Li Daxiao. Just tell me, have blue-chip stocks peaked yet?

[joker]: Not at all.

[Zen City Shadowless Kick]: Then I'll do it!
Just as Liao Guopei was building his position, Lin Guangchang, who was making a living by trading stocks, sent him a message with a picture. He had bought 500 million shares of Huaguo Petroleum during the opening auction, and the stock had already risen by 1.3%.

In other words, he earned 6.5 Chinese yuan in just one hour.

[Stock Trader Supports the Family]: Awesome!
The word "awesome" is simple and straightforward; at this moment, he was completely convinced.

He only spent a thousand or so yuan on the bill, but the "bill" Zhang Yang paid for him was worth more than 60,000 yuan, or even more. Lin Guangchang, this middle-aged man, had no choice but to admit defeat.

……

Hangzhou, Jiangsu and Zhejiang province.

Jianggan District.

The top floor of Hongyue Building.

Inside the trading office area, Zhong Qifeng's eyes were bloodshot; he still hadn't managed to sell the shares of Jianfeng Group.

Three consecutive limit-up days!
Three consecutive limit-up days!
Because he had increased his position recently, he has already given back all his profits. If the price continues to fall, he will start to lose his principal.

If his principal is lost, a mere 20% drop would completely destroy all his savings and his life, given his five-fold leverage.

Compared to Zhong Qifeng, there was a trading manager who was in an even worse situation. At this moment, a young manager stood up, slammed his fist on the table, and said angrily, "Zhong Qifeng, didn't you say it could still go up? It's hit the limit up for three consecutive days. I've already lost 10%. If I keep losing, all my savings will be wiped out!"

"Yeah, didn't they say it could go up further?"

Why is it still falling?

"Zhong Qifeng, you have to give us an explanation!"

One person took the lead, and several others followed suit. No one expected that they would lose money, and judging from the current situation, the price will continue to fall for several more days.

Some of the trading managers who followed Zhang Yang in clearing out their positions felt a wave of fear, but also secretly chuckled to themselves.

People can't truly empathize with others, even if someone is so devastated by financial losses that they want to jump off a building.

"I'm in there too! If I'd known it would crash, I would have run away long ago. You guys don't treat me to meals when you're making money, fine, but when you lose money, you fucking ask me why it crashed?!"

Zhong Qifeng looked menacing, his eyes wide.

One of the trading managers who bought at the highest price rolled up his sleeves and said in a clear and resonant voice, "Fuck your mother! If you hadn't said that Peak Group could still rise, would I have invested all my savings?"

"Fuck your mother! What does it have to do with me that you put it in? Did I take a single penny from you?"

"Say that again if you dare? I'll fuck your mother!"

"I'll fuck your mother!"

The two men's shouting grew louder and louder, both turning red in the face, and it looked like they were about to come to blows. Just then, the manager, his face dark with anger, entered the trading office area and glared at them, demanding, "Do you two want to quit your jobs?!"

Upon seeing the arrival of the supervising manager, Yang Jianghai, Zhong Qifeng and the other person restrained their tempers, but they still disliked each other.

"what happened?"

Yang Jianghai glanced around.

All the trading managers looked at each other blankly; no one answered him.

Because stock trading is not allowed during working hours, but the company has never strictly investigated it, and since no one has reported it, the supervisors have chosen to turn a blind eye.

"Private matter."

Zhong Qifeng still retained his rationality.

“Since it’s a private matter, let’s deal with it after get off work. If I hear you arguing again, you two are fired immediately.”

Yang Jianghai warned.

After saying that, he turned and went back to his office.

The atmosphere in the trading office area became extremely oppressive at this moment.

Zhong Qifeng returned to his workstation and opened Zhang Yang's margin trading account. When he saw that all the stocks, including China Construction Bank, Industrial and Commercial Bank of China, China Petroleum, and Angang Steel, were in the green, his mind became extremely distorted.

He's losing so much money he's about to go bankrupt, so why are you, Zhang Yang, making a fortune?

"If it weren't for you, why would I have leveraged all my savings to go to Zhang Yang?!"

"It's all because of you!!!"

"You beast!!!"

He was already at a critical point, and an announcement at noon completely shattered his hope of survival.

The China Securities Regulatory Commission (CSRC) has decided to investigate potential issues such as speculative trading and improper transfer of benefits in stocks including Hualan Biological Engineering, Jianfeng Group, and Da'an Gene. Trading in these stocks will be suspended immediately, with the resumption date to be announced later.
"Gone!"

"My life is ruined!"

Zhong Qifeng's eyes were bloodshot, and tears welled up in his eyes.

If he could go back a week, he would definitely have followed Zhang Yang in clearing out his positions and wouldn't have blindly added to his holdings in pursuit of so-called high returns.

But now the stock is suspended indefinitely. Once this storm passes, who will still buy H1N1 flu concept stocks?

Back at his workstation in the afternoon, Zhong Qifeng sat there listlessly, his eyes vacant, and no one knew what he was thinking.

When he saw Zhang Yang's margin trading account all in the green, with hundreds of thousands of yuan coming in in a single day, his resentment turned into anger. He quickly sold all the stocks in Zhang Yang's margin trading account and then bought Rhine Biotech, which was bound to lose money, with all his funds.

After doing all this, he felt a sense of vengeful pleasure, and the corners of his mouth turned up slightly.

Having lost all his savings and about to lose his job, he stood before everyone in shock, picked up a stool, smashed the French windows, and jumped from the top floor.

It was quick to get from the 9th floor to the 1st floor.

But Zhong Qifeng felt it was very slow, with a constant whooshing wind in his ears, and scenes flashing before his eyes.

Having worked at Hongyue Investment for so many years, he has seen too many clients who have suffered margin calls and committed suicide, and he often uses their stories as topics of conversation.

But he never imagined that his momentary greed would cost him half a lifetime's savings, and perhaps one day he would become the subject of gossip and ridicule...

(End of this chapter)