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

Chapter 13 The Rise of Shanghai Finance
at the same time.

Huaxin Securities Shanghai Branch.

It is located on the 3rd floor of the building at 1568 Century Avenue, adjacent to Lujiazui Financial Plaza. Five kilometers further southeast is the renowned Financial Exchange Plaza.

It's no exaggeration to say that this is China's version of Wall Street, where countless financial professionals gather.

As the A-share market closed at 3 p.m., Tao Yuang, a fund manager at Huaxin Securities, breathed a sigh of relief and looked at Yue Shuxue at her workstation next to him, asking, "Xue'er, how are things going with Hong Kong stocks this week?"

The two not only graduated from Shanghai University of Finance and Economics, but also joined Huaxin Securities together, and were also a couple in private.

Tao Yuang's academic performance was not good enough to get into Huaxin Securities, but Yue Shuxue used her family connections to secure him an internship.

After nine years of hard work, Tao Yuang has gradually established himself at Huaxin Securities, managing funds totaling 2.6 million yuan, all of which are related to infrastructure concepts.

"Hong Kong stocks are on a good upward trend, with three consecutive months of gains, and are expected to continue to rise."

Yue Shuxue smiled faintly.

"What about the increase in funds?" Tao Yuang asked again.

"The market generally believes that it will return to the high point of 2007, and funds are rushing in. My three funds have added a total of 2400 million yuan this week."

"So much capital flowing south?"

Tao Yuang was somewhat surprised.

“Yes, I was also surprised. Maybe investors think that Hong Kong stocks will rise more,” Yue Shuxue speculated.

China has three stock markets: the A-shares market in mainland China, the Hong Kong stock market in Hong Kong, and the Taiwan stock market in Taiwan.

Hong Kong Island and Taiwan are both located in southern China. Funds flowing south through the "Stock Connect" program are naturally referred to as southbound funds.

Funds from Hong Kong and Taiwan that enter the A-share market through the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect are known as northbound funds.

It is worth mentioning that the main force of northbound capital is often not Hong Kong and Taiwan stock investors, but international capital.

For example, if an American wants to invest in A-shares, he cannot directly open a bank account in mainland China to invest.

Instead, one needs to go to Hong Kong Island or Taiwan to open a bank account, transfer funds to foreign securities firms such as JPMorgan Chase, Goldman Sachs, and UBS, and then invest in the A-share market through the Shenzhen-Hong Kong Stock Connect or Shanghai-Hong Kong Stock Connect.

Because northbound capital has consistently achieved a success rate of around 65%, it has long been known in the market as "smart money" and is an extremely important investment indicator.

……

Upon hearing that his girlfriend's sales had skyrocketed, Tao Yuang extended an invitation: "It's the weekend, how about we go for a drink at a quiet bar tonight?"

"sure."

Yue Shuxue reluctantly accepted.

They've done everything they need to do, except for a marriage certificate.

"Oh, right."

Yue Shuxue suddenly remembered something and said, "Do you know? This year's juniors at our alma mater are very outstanding. In just 20 trading days, some of them achieved a return of 42.4%, and nearly 30 of them even broke 25%."

"A 42.4% return?"

Tao Yuang was shocked; his pupils seemed to dilate in shock.

With a return of 42.4% over 20 trading days, the average daily return is 2.12%. In terms of return alone, this achievement is already among the best in the industry.

It's worth noting that even a top trader from Huaxin Securities wouldn't dare claim they could achieve a 42.4% return in 20 trading days.

"They didn't cheat, did they?"

Tao Yuang asked in a low voice.

Nearly 30 people achieved returns exceeding 25%, which completely surpasses top financial institutions such as Central University of Finance and Economics, University of International Business and Economics, and Southwestern University of Finance and Economics.

"I've actually been thinking about this too, which is why I'm telling you." Yue Shuxue also lowered her voice, because there were other colleagues around.

Cheating in a demo account is very easy. As long as a student has access to insider market information or comes from a wealthy family, they can manipulate the market by driving up the price of a small-cap stock in a real account.

Because demo accounts closely follow real accounts, the funds required to drive up the price of a small-cap stock in a real account are not too large; at most, 1000 million yuan is enough.

Tao Yuang frowned, feeling uneasy.

If the results of the Huaxin Simulated Trading Competition for students from Shanghai University of Finance and Economics are highly questionable, the two recommenders might face criticism. "I'll call Professor Wang Xingbang to ask, and hopefully we're overthinking it."

"Let's talk about it after get off work."

"I know."

Although they have some power, they cannot control everything. If they stuff all sorts of "garbage" into Huaxin Securities, they will easily be implicated.

The original intention of "internal referral" is to introduce outstanding talents by having internal employees act as guarantors, thereby reducing the workload and interview costs for HR.

Why is it said that internal referrals can attract outstanding talent?

Being able to get into Huaxin Securities demonstrates that the recommender has considerable ability.

Secondly, internal referrals are subject to a "joint liability system" by default. If someone tries to get their relatives or friends into the company through this channel, they are likely to lose their own job as well.

Therefore, before the referral, the referrer is already in the role of HR.

……

Shanghai University of Finance and Economics.

Investment Studies Faculty Office.

After two or three years of stooping, Wang Xingbang finally straightened his back. He happily shared his students' achievements with the finance professors, saying, "Guess how amazing this year's graduates are?"

Before the other professors could speak, he revealed the answer himself:
"First place, a 42.4% return, and she only took 20 trading days!"

"There are still 30 students, and their returns are all above 25%!"

As the data was presented, macroeconomics professor Ma Shoutu looked incredulous and questioned, "Old Wang, are you getting dementia? I can understand a 42.4% return as good luck with limit-up trading, but 30 students achieving returns of over 25%? That's a bit ridiculous."

"Exactly, exactly, that's nonsense."

"Let alone Shanghai University of Finance and Economics, even if all the top scorers in the college entrance examination from Central University of Finance and Economics came, it would be impossible for 30 people to achieve a 25% return in 20 trading days."

"Are you alright, Lao Wang, you don't have a fever?"

The finance professors all chimed in.

Some professors were action-oriented; they reached out and touched Wang Xingbang's forehead to see if he really had a fever.

"Snapped--"

Wang Xingbang slapped away the outstretched hand and chose to prove himself through concrete actions.

He randomly went to a workstation, turned on his computer, logged into his 163 email account, and opened the revenue statistics file that had been saved in the transfer station.

"See for yourselves, I, Wang Xingbang, never lie."

When the document was opened, the finance professors looked as if they had seen a ghost.

"My God, are there so many geniuses this year?"

"Investment studies are on the rise! Once these students enter major securities companies, within three years, our B+ professional level will at least reach A, or even A+!"

"Did they benefit from the era's advantages, or do they really have the ability?"

"Forget about the era's dividends or anything else, the simulated trading returns are a symbol of strength. I need to take a screenshot and send it to those finance professors at Central China University of Finance and Economics and Southwestern University of Finance and Economics."

It is often said that a teacher for a day is a father for life. For professors who are dedicated to educating and nurturing students, their success brings them pride.

Only those who have been teachers know how wonderful it feels to have students all over the world.

As the "report card" was sent via the internet to the email addresses of professors at top universities such as Huazhong University of Finance and Economics, Fudan University, Southwestern University of Finance and Economics, and Jiangsu-Zhejiang University, this group of finance professors, all over fifty years old, began to feel uneasy.

"Is Shanghai Finance Group on drugs? It's so potent."

"This year's graduates from Shanghai University of Finance and Economics' investment program are quite impressive; their returns are even higher than those from Central University of Finance and Economics and Southwestern University of Finance and Economics."

"A 42.4% return? He Jing is really insane. I've never heard of that before."

"The rise of Shanghai Finance is interesting."

(End of this chapter)