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

Chapter 213 Zhang Yang and Xu Xiang jointly clean up the market; the 10 billion target is within reach.

At 3 p.m., with the closing of the A-share market, the daily charts of the Shanghai Composite Index and Shenzhen Component Index for August 24th were quietly finalized.

The two major indices closed at 2993.43 and 12075.8 points respectively, with gains of 1.1% and 1.55%. Both indices opened higher in the morning, plunged in the afternoon, and rebounded at the close.

There's an old saying in the stock market: "A late-day rally is either a sign of treachery or theft."

Why do you say that?

It's like a college student who often slacks off in class and is about to take the final exam. The teacher gives a list of key points for the exam and asks them to memorize them. They might get a decent score on the exam, but they only really know a small part of it and it doesn't stand up to scrutiny.

The same logic applies to stock market rallies at the close. The core reason why it's considered a scam is that the funds aren't genuinely bullish, but rather a "trap" manipulated by major players in the short term. The common reasons can be roughly divided into three categories.

1. To pave the way for selling off the next day, the main players use a small amount of capital to launch a surprise attack at the end of the trading day, quickly raising the stock price and creating the illusion of a strong stock price. This attracts retail investors to follow suit and buy in the next day. After the retail investors take over, the main players then sell off their shares in the opposite direction, completing the arbitrage and leaving the retail investors with nothing but a mess.

2. To avoid making the candlestick pattern look too bad, the stock price is temporarily pushed up at the end of the trading day to "edit the chart". The purpose is to stabilize retail investors' confidence and cover up the fact that the company has insufficient funds or is not optimistic about the future. It is not really intended to push the stock price up.

3. Some speculative funds or short-term funds take advantage of the short trading time and low market attention at the end of the trading day to quickly intervene in a stock and drive up its price. They then sell the stock as soon as the market opens the next day, which is called "overnight arbitrage". This kind of operation has no long-term logic and is purely a short-term game to harvest retail investors.

In either case, a late-day rally often reveals one thing: the bullish funds may be in a weak position.

Because if the bullish funds are strong, there's no need to launch a surprise attack at the end of the trading day; a direct intraday rally can drive the upward movement.

It's worth mentioning that there's a special case of funds ambushing at the end of the trading day: insider funds have prior knowledge of certain information, and they can only buy up shares within a limited time.

In the stock market, any indicators and techniques are for reference only. To make the most accurate judgments, the best approach is to observe more and act less, focusing only on the most certain profits.

At this time, a large number of "reversal" comments appeared on Eastmoney's stock forum, Caiyan.com's stock investor community, and Tonghuashun's interactive section.

[Little Bear Biscuit]: It's stable, it's stable. The market trend is completely stable tomorrow. Three consecutive positive days, the trend has completely reversed.

[Labor and Capital Shudao Mountain]: A sharp drop is always followed by a sharp rise. Fellow investors, hold on tight! The second major upward wave of the A-share market is about to begin!

[Loving Wife]: I would call today's lower shadow restoration line a beautiful leg, tomorrow a beautiful body, and the day after tomorrow beautiful shoulders. Let us embrace the "beautiful cow" to our hearts' content!
[Magic Trainee]: No, three days to get beautiful shoulders? For a moment, I couldn't tell whether this was a bullish or bearish prediction.

[Zhong Ai Ren Qi]: What if I said the market would rise 10% tomorrow and another 10% the day after? Would that be considered a beautiful shoulder?

[Only coffee to keep me going]: That's amazing! Hahaha, with the market up 20%, I can't even imagine how much money I could make!
With a strong rebound of three consecutive days of gains, bearish sentiment has been completely dispelled. Huaxin Securities, which started to fall on August 3, has shown signs of bottoming out, although the gains are relatively small, with a cumulative increase of only 5.02% over three days.

However, Zhang Yang, who was far away in the office of Caiyan.com, held a pessimistic attitude and did not think that the trend had reversed, but at most it was just a rebound.

Why is it called a rebound?
The index fell sharply from 3478 points on low volume, reaching a low of 2761 points, a drop of 717 points.

Here's the key point: a sharp drop isn't scary; what's scary is a decrease in trading volume.

Generally speaking, a price drop is a way to shake out weak hands and force retail investors to hand over their shares.

In this round of decline from 717 points, apart from the 5.79% drop on August 17th that squeezed out a large number of "leveraged" positions, most retail investors who did not use leverage still did not cut their losses and are still stubbornly holding on.

These retail investors are not selling, they are holding onto their shares tightly, and some are even adding to their positions against the trend. Are the major players spending real money to dump shares as charity?
obviously.

The main force is not doing charity.

The logic behind an upward trend is that the major players have accumulated enough shares, or their cost basis for holding shares is low enough to generate sufficient profit, which will then drive funds to attack upwards.

Now that there's neither sideways consolidation to lower holding costs nor enough bloodied shares to be harvested, where does the main force's motivation to push up the price come from?

It was precisely this logic that led Zhang Yang to once again become the "disappointment spoiler."

[The start of a second-round trend is often accompanied by increased trading volume. The logic of rising on low volume does not hold true in a sharp downtrend. Currently, the Shanghai Composite Index has risen by more than 200 points in three days, but the total trading volume is only 3987 billion yuan. On July 29, the sharp drop saw a single-day trading volume of 2969 billion yuan. Be wary of a rebound; the concept of a "cosmic top" remains unchanged.]
As soon as Zhang Yang's post was published, all retail investors who followed "joker speculative trading channel" received a pop-up notification from Caiyan.com.

All of a sudden.

Countless retail investors flocked in.

[Zhantang Majestic and Imposing]: Huh? Joker is still bearish? Didn't they say one positive day leads to a breakout, two positive days to a bottom, and three positive days to a trend reversal? Why do we have to look at volume now?

[Past Events Fade Away]: Joker helped me avoid at least a 400-point drop. I trust him; this man wouldn't cheat us retail investors!

[She said she was drunk that night]: The logic of rising on low volume does not hold true in a sharp downtrend. You're not Joker, are you? You really have something to teach me. I lost over 100,000 yuan before I figured it out. And you're telling other retail investors this?

[Please don't cry]: It's all over, it's all over. I added to my position at the end of the trading day, and now I'm really doomed. Is there any 165cm tall girl in white stockings who can come to my house to comfort me? Preferably a female college student.

The number of replies increased rapidly, exceeding 100 posts in less than five minutes, and the number of views exceeded 10,000.

Li Daxiao, who was far away at Yingda Securities, was also paying attention to Zhang Yang, the man who shouted "the top of the universe" almost made him lose face.

When he saw that Zhang Yang was still bearish, he immediately opened the A-share intraday chart and muttered to himself, "The securities sector has stopped falling and stabilized, the banking sector has closed slightly lower, the coal sector has seen a surge in volume, and small and medium-sized stocks are also rising. The market has evolved from a single bank leading the way to a multi-party rally."

"Foreign investors are currently holding large amounts of cash and are eager to make moves. If Chinese assets maintain their current prices, it will be detrimental in every way, and this level cannot be sustained for long."

Without hesitation, Li Daxiao chose to record a video to directly confront "Joker the Great God".

[The clouds have parted to reveal the clear sky, comrades! The most difficult days are over. The three consecutive days of gains are the clarion call for a counterattack. We must follow the "Call to Arms Bull" closely, advance side by side, and embrace this hard-won bull market in the Chinese stock market. Go, Call to Arms Bull! The clarion call has sounded! Comrades, it's time to charge into battle!]
When the "cattle-raising video" was released across the internet, it instantly sparked a new wave of competition. Eastmoney even artificially promoted it, placing Li Daxiao's cattle at the top of its homepage.

In an instant.

Traffic exploded.

[Southern Tombstone]: The clouds have parted to reveal the blue sky; is the second major upward wave really about to arrive? Comrades, I have 10 yuan; can I make 100 million yuan in the stock market?
[Who Says It's Fate]: 1 million? I'll earn 10 million! Once I earn 10 million, I won't have to worry about the rest of my life!

[Neighbor Wang]: Teacher Da Xiao, you're not lying to me, are you? Has the three consecutive days of gains really formed a bottom? The great Joker next door said it's a scam, but I'm a pure 19-year-old male college student, and I can't be fooled.

[Heavy Armor Li Jinwei]: Hesitation leads to defeat. I'll trust Teacher Da Xiao one more time. If it continues to fall, come to Tianfu yourself and let me experience your granular texture!

Even if Li Daxiao didn't release the video, the three consecutive days of gains had already shaken the confidence of some retail investors.

Left-side traders buy into uncertainty; they are accustomed to buying the dip before the trend becomes clear.

Li Daxiao can see Zhang Yang's posts, and Zhang Yang can naturally see Li Daxiao's videos. Although Zhang Yang doesn't understand why Li Daxiao is so bullish, he respects the other party's choice and won't engage in online arguments like a shrew. Instead, he lets the market make the decision.

Seeing Zhang Yang and Li Daxiao clash once again, many self-media outlets jumped in to seize this opportunity for increased traffic.

The battle between bulls and bears reignites: the cosmic top versus the horn bull, Li Daxiao versus Zhang Yang—who is the true master of prediction?

The battle has reignited once again, and the renowned investor Joker continues his bearish stance on A-shares, asserting that the logic of low-volume rallies is invalid in a sharp downtrend. Will his claim come true?

Can Low Trading Volume Guarantee a Price Increase? A Ten-Year Securities Analyst Tells You the Answer!

Shocking! The battle between bull and bear markets takes shape: who will prevail in the clash between Li Daxiao and Zhang Yang's approaches? What will the future hold for A-shares? Let me tell you all about it!

While self-media outlets were frantically chasing trends, Eastmoney and Caiyan.com were both betting on Li Daxiao and Zhang Yang, injecting them with traffic.

Is the A-share market in a bull or bear debate?
Do not!
This has evolved into a power struggle between Caiyan.com and Eastmoney!

As for Tonghuashun and other financial websites, their popularity is far less than that of Li Daxiao and Zhang Yang, and they are not even worth mentioning.

……

Just as Zhang Yang, Li Daxiao, Caiyan.com, and Eastmoney were secretly vying for power, the Dragon and Tiger List was released on August 24.

Rainbow Shares, which experienced a dramatic "limit up to limit down" price swing, instantly attracted widespread attention. Xu Xiang, Ma Xinqi, Sun Guodong, and others immediately checked the stock exchange's trading data.

Buying from the second brokerage: Jiangsu-Zhejiang Huaxin Securities Fuchun Road Branch.

Buying from the second brokerage: Industrial Securities Yangcheng Zhongluotan Branch.

Buying from the third brokerage: Huaxin Securities Hangzhou Yan'an Road Branch.

Buying from the 4th brokerage: Huaxin Securities Yanjing Hujialou Branch.

Buyer #5: Galaxy Securities Shaoxing Fenglin West Road Branch.

-

Selling Department 1: Galaxy Securities Shanghai Branch. (Institutional Use Only)

Selling Department 2: Galaxy Securities Ningbo Jiefang South Road Branch.

Selling 3rd branch: Guotai Junan Yanjing Fucheng Road Branch.

Selling 4th branch: Guotou Securities Haoan Qujiangchi South Road Branch.

Selling 5th branch: Guangfa Securities Shanghai-Sujiang Road Branch.

"It really is Fuchun Road!"

Xu Haiou narrowed his eyes slightly, a hint of unease flashing in his pupils.

He has already concluded that this speculative trading seat is Liu Hua's front man, and that the other party's strong intervention is really just about taking a share of the profits.
"Snapped--"

Sun Guodong slammed his fist on the table and stood up, cursing, "Damn it, this is a beast on Fuchun Road! Boss Liu is going too far!"

“Is Mr. Liu deliberately using the seats on Fuchun Road to help us clean up the market, or is he here to cause trouble?” Ma Xinqi looked at Xu Xiang.

"Fuchun Road has overstepped its bounds. We have no idea whether the person behind this seat has lined their own pockets or is using Boss Liu's funds to bully others."

Shu Yimin said in a deep voice.

Logically speaking, "white glove speculators" shouldn't be causing trouble everywhere. Instead, they should select a few targets to manipulate and control the market, keeping as low-key as possible.

But what about Fuchun Road?
Rhine Biological.

Peak Group.

Kaino Technology.

Haitong Foods.

It has controlled countless votes and participated in countless others, which is completely unlike the behavior of a "white glove speculative fund".

"Liu Hua has really gone too far." Xu Xiang was now addressing Liu Hua by his full name. Although the other party was a business tycoon, he also knew entrepreneurs involved in real estate and coal.

Seeing that Xu Xiang seemed angry, Xu Haiou quickly said, "Fuchun Road's involvement is actually a good thing."

"???"

"???"

Everyone who heard this was completely bewildered, including Xu Xiang, who was still furious.

Seeing everyone's eyes on him, Xu Haiou explained his point of view: "We analyzed before that the other party is only after money. Using the Fuchun Road seat in combination with negative news to shake out weak hands can achieve twice the result with half the effort. We are not enemies in this stock, but allies."

silence!

Everyone fell silent!

Ma Xinqi's eyebrows furrowed together, and he asked uncertainly, "You mean that guy on Fuchun Road is washing dishes for us?"

"That's how it is at the moment," Xu Haiou nodded.

“What Brother Xu said does make some sense,” Sun Guodong chimed in, whispering his analysis. “He could have quietly accumulated shares, but he chose to go all in at once, and with no subsequent price increases, he created the impression that the big players were trying to lure in more buyers.”

"As for the seat, it wouldn't be difficult for him to change it, but he deliberately doesn't, probably because he wants to use the influence of the seat to shake out weak hands."

By the time Sun Guodong finished speaking, Xu Xiang's anger had subsided considerably. Before he could even open his mouth, Shu Yimin preemptively said, "It seems that Fuchun Road still has some principles, and they even know how to help us clean up the mess."

He had just finished speaking when he looked at Xu Xiang and said, "What do you say, Chief?"

"Prepare to take back the chips."

Xu Xiang said coldly.

He didn't want to cooperate with "Fuchun Road" to shake out weak hands, because they could fool retail investors on their own. But now that the die was cast, and the other party had given repeated hints that they only wanted to follow the trend, he couldn't possibly risk losses to completely bury them alive.

1. It's unnecessary.

2 is not worth it.

"Alright." Ma Xinqi's brows relaxed, and he said with a faint smile, "I have to say, that beast on Fuchun Road really knows how to manipulate the market."

"It's all about money. This person is very skilled at trading. It would be great if we could form an alliance," Xu Haiou remarked.

"No, no, no, forming an alliance with Fuchun Road? Putting aside his notorious reputation, just considering his money-first business style, I'm afraid my brothers will be stabbed in the back by him."

Shu Yimin quickly waved his hand and said, "Even if I starve to death! Even if I die outside! I would never consider forming an alliance with Fuchun Road!"

Of course!
Those things that are already done don't count!
“That’s right.” Sun Guodong responded, offering his opinion: “A temporary alliance is fine. If it’s a long-term alliance, I’m afraid he might betray us all one day.”

“The people on Fuchun Road are of very poor character. Brother Xu should think this over carefully,” Ma Xinqi chimed in.

Seeing the strong reaction from the crowd, Xu Haiou smiled calmly and said, "Oh, I was just saying it casually, don't take it seriously."

"I'm terrified. If we really form an alliance with Fuchun Road, we're afraid other speculative investors will tear us apart."

"It's not just speculative capital; retail investors are also complaining!"

"He has absolutely no moral compass!"

Sun Guodong, Ma Xinqi, and the others discussed it amongst themselves, instinctively resisting "Fuchun Road".

Xu Xiang remained silent, his brows furrowed as he stared at the speculative trading seats on his computer screen, muttering to himself, "Fuchun Road, who exactly are you?"

Those speculative investors who can navigate the stock market with ease and make a name for themselves are all ambitious and arrogant. Is "Fuchun Road" really just Liu Hua's front man? Or rather, what conditions did Liu Hua use to retain them?

He felt something was very wrong, but he couldn't think of anything else.

But one thing is certain: Fuchun Road's grasp of human nature, as well as its understanding and control of the stock market, is no less than that of Sun Guodong and Shu Yimin, and may even reach the level of top-tier speculative capital.

"What do you think, Chief?" Suddenly, Shu Yimin turned the conversation to Xu Xiang.

"What do you think?"

Xu Xiang inquired.

He was lost in thought and hadn't paid any attention to their conversation.

"It's about the long-term collusion with Fuchun Road to exploit retail investors, just what Brother Xu mentioned earlier," Shu Yimin briefly explained.

"unreliable."

Xu Xiang shook his head, opened the Rainbow Shares stock forum with the hand holding the mouse, and said in a deep voice, "I don't trust him."

He had a premonition that there would definitely be a battle between himself and "Fuchun Road," and that the current temporary alliance was simply a fait accompli.

"See? Even the Grand Master says he can't be trusted. You can imagine how bad Fuchun Road's character really is," Shu Yimin quickly added.

Xu Xiang didn't say much, but instead observed the emotions of the retail investors.

[Ben Zhou Shi Xuan Zhuan]: Damn it, that bastard from Fuchun Road is disrupting the trend again. If nothing unexpected happens tomorrow, this guy will definitely dump the shares if there's a premium!

[Women's Hormones]: Has the Grand Master already run away? Damn it, doesn't that mean the current Zhuang is Fuchun Road?
[Causeway Bay Handsome South]: 92450, please remember this code. Once he makes a profit, barring any unforeseen circumstances, that bastard will dump the stock at 9:24:50.

[Hard as an iron pillar]: I've never made any money riding in the same car as Fuchun Road. I've always quit and started taking overnight rides. I wish you all good fortune.

First there was the crash and sell-off, with stocks hitting rock bottom and then "borderline news," citing an official response from three months ago to refute rumors of a 10 billion yuan subsidy for production lines. Now, "Fuchun Road" is entering the market to stir things up. How can retail investors possibly stand this?
It's no exaggeration to say that countless retail investors in Rainbow Shares now have only one thought: to run away as soon as possible tomorrow, and absolutely not let "Fuchun Road" scam them.

Meanwhile, Chen Xiaoqun, far away in Yanjing, was on the verge of tears.

"Why is it Fuchun Road?!"

"Damn Fuchun Road, are they chasing me to kill me?"

"Ugh, that damn Fuchun Road!"

Emotional breakdown can happen in an instant. Just as Chen Xiaoqun and other retail investors were at a loss and thinking about cutting their losses and running away, he thought of his idol, "Joker the Great God".

He quickly opened Zhang Yang's QQ chat window, typed "Are you there?", and then quickly deleted it.

"No."

"I can't keep bothering Joker."

"If I encounter difficulties, I will ask Joker for help. He will definitely think I am useless and I have to get out of my predicament on my own."

After calming down, Chen Xiaoqun reopened the Dragon and Tiger List and casually opened Rainbow Shares' intraday trading screen. He felt it was a bit of a coincidence; this was too coincidental, as if it were a combination of moves.

The market was hit hard by a sudden sell-off, negative news, a rebound to lure in more buyers, and strong intervention from Fuchun Road.

"It is known that the negative news is fake and is a manipulation tactic by Xu Xiang to shake out weak hands. He is still involved in Rainbow Shares. Fuchun Road's high-profile intervention may not be able to defeat Xu Xiang. Moreover, the timing of Fuchun Road's appearance is too coincidental. It is possible that they are using the seat for personal gain. Could this also be part of Xu Xiang's scheme?"

Chen Xiaoqun muttered to herself.

One link leads to another, making it impossible for retail investors to distinguish between truth and falsehood.

Once Chen Xiaoqun calmed down, he became quite frightening. He opened the stock forum again and checked the comments from retail investors, saying, "The market is collectively panicking. It will most likely open at the daily limit down tomorrow. If Xu Xiang hasn't left, then in the next two days, or at most this week, there will most likely be a second round of market activity."

At the moment she reached this conclusion, Chen Xiaoqun once again gained a profound understanding of what emotions are, and how to control and utilize them.

In the stock market, or any other arena of competition, emotions are what we call "getting carried away." Whoever gets carried away first is the one who gets eliminated.

Whether you're a new or experienced stock market investor, you've definitely experienced the phenomenon of buying more when prices fall.

Why buy more when prices are falling?
I got carried away by my emotions!
When buying, the mind is hazy, just like a gambler muttering "I'll definitely win next time." Stock market investors, caught up in the hype, are thinking about the price going up. There's no real difference between the two.

"Joker is right. Trading requires calmness and a tranquil mind. You can't let emotions dominate your intelligence; instead, you should find ways to let them dominate the intelligence of other stock market investors."

Chen Xiaoqun's eyes were practically overflowing with admiration. In his eyes, Zhang Yang was like the Sweeping Monk from "Demi-Gods and Semi-Devils," whose slightest move was already the limit of the stock market.

Thinking about this, he couldn't help but sigh: "Perhaps only when one reaches the state of returning to simplicity can one understand why the great Joker doesn't continue playing the stock market. Making money in the stock market is probably just a piece of cake for him."

……

As night fell, announcements flew everywhere.

Haitong Foods, Rainbow Shares, Laibao Hi-Tech, ST Yushun, Anke Biotechnology and other stocks have successively issued "Announcements on Serious Abnormal Stock Trading". Rainbow Shares added fuel to the fire, making retail investors completely despair.

[彩虹显示器件股份有限公司下简称“公司”或“本公司”)股票（证券简称：彩虹股份)于2009年8月13日至2009年8月24日连续8个交易日的收盘价格涨幅偏离值累计达到114.36%，根据《沪都证券交易所交易规则》的规定，连续10个交易日收盘价格涨幅偏离值累计超过100%，属于股票交易严重异常波动的情形。

As of August 24, 2009, the company's closing price was RMB 5.48 per share, with a static price-to-earnings ratio (P/E ratio) indicating a loss and a price-to-book ratio (P/B ratio) of 0.57. According to data released by Huazheng Index Co., Ltd., as of August 24, 2009, the company's industry classification was "Broadcast and Television Equipment Manufacturing," with the latest average static P/E ratio of the industry at 210.61 and a P/B ratio of 3.44, which differs significantly from the company's latest P/E and P/B ratios.

The company's main business is currently in a period of adjustment. The widely circulated rumor of a 10 billion yuan investment in Zhangjiagang municipal government is inconsistent with the actual situation. For specific details, please refer to the official announcement.

A friendly reminder: the company's stock price is currently experiencing overheated market sentiment and may be subject to irrational speculation. Trading risks are high, and there is a risk of a significant short-term decline. Investors are advised to be aware of these risks, avoid blindly following the crowd, make rational decisions, and invest prudently.
The statement, "The widely circulated rumor of a 10 billion yuan investment in Zhangjiagang municipal government is inconsistent with the actual situation. For specific details, please refer to the official announcement," completely shattered the confidence of retail investors. At this point, retail investors only had one thought: to run away as quickly as possible.

Unlike the panicked retail investors, Chen Xiaoqun, who had just stared at Sadako, remained extremely calm and reaffirmed that it was a market shakeout.

Just as he had guessed, Xu Xiang, Sun Guodong, Ma Xinqi, and others were drinking and toasting with executives from Rainbow Group.

Collusion between private equity firms and corporations is already an industry consensus.

Some may ask, isn't it a wonder that the "Announcement on Serious Abnormal Stock Trading" was released with false information? Aren't they afraid of the China Securities Regulatory Commission's (CSRC) crackdown?

Don’t even say it!

They really aren't afraid!
Moreover, Rainbow Holdings did not release false information, but rather engaged in "borderline content" after some manipulation.

Just like the daytime denial in Zhangjiagang, who dares to say it's fake?
The news media didn't say the announcement was the latest release; they just quoted an announcement from three months ago to skirt around the issue of debunking rumors. Without careful investigation, who would notice anything amiss?

Returning to the statement that "the widely circulated claim of a 10 billion yuan investment in Zhangjiagang municipal government is inconsistent with the actual situation, and the specific details are subject to official announcements," if the investment were 99 billion yuan, or even 10 billion yuan, and the funds were received in three or more installments, wouldn't that also be inconsistent with the widely circulated claim?

This is the role of journalism, and also its most captivating aspect.

Retail investors tend to rely on news without verifying it in depth, making them easy targets for such borderline rumors.

With a series of consecutive blows, retail investors in Rainbow Shares were completely disoriented. As soon as midnight struck, tens of thousands of people chose to place sell orders at the daily limit down overnight to cut their losses, fearing that they would suffer consecutive limit-up days.

……

The night of panic quickly passed, and as the morning of August 25th arrived, even more frightening news began to circulate wildly online.

A short article circulating online claims that a report from the Standing Committee of the National People's Congress pointed out that housing prices in some cities have risen too quickly, making it difficult to meet the annual fiscal budget. This report sends two major policy signals and suggests that real estate regulation will be upgraded and fiscal stimulus will be weakened.

Zhang Yang returned to the company early and naturally saw the rumor.

The tightening of real estate regulation and the weakening of fiscal stimulus were actually foreshadowed, and news reports in the past two months have frequently mentioned the problem of excessively rapid housing price increases.

From the beginning of 2009 to now, in eight to nine months, housing prices in Beijing and Shanghai, two highly representative cities, have risen by more than 20%!

What does 20% mean?
A house bought with a loan of 100 million can now be sold for 120 million!
A 20% increase may not seem like much in the first half of the year for A-shares, but don't forget that buying a house is essentially a leveraged investment strategy. How many people leverage their investments in the stock market?

Negative policy factors have allowed panic to spread unchecked, like dandelions spreading everywhere.

Just as panic reached its peak, 9:15 AM arrived quietly, and the familiar sharp pullback occurred once again.

The banking, securities, real estate, coal, non-ferrous metals, and steel sectors all fell by more than 3%, and the Shanghai Composite Index was down more than 2 points, with only a few dozen speculative stocks hitting their daily limit propping up the market.

Rainbow Co., Ltd. unsurprisingly hit the daily limit down due to a confluence of negative factors, and is currently trading at 4.93 yuan. In the intraday trading session, the unmatched volume is already approaching the bottom of the buying volume, and the selling pressure is intensifying.

Upon seeing this, Liao Guopei immediately looked at Zhang Yang and said, "We still have money on hand, should we buy some more chips?"

"No, we're just following the flow of funds. There's no need to go too far and make sure Xu Xiang is well-fed before he'll work for us."

Zhang Yang shook his head.

"Leave room for maneuver in your actions, so you can meet again in the future. We have quite a few chips now, 22 lots, so we can't be too greedy," Lin Guangchang echoed.

Everyone enters the stock market to make money. Now that Rainbow Shares' shares have been mostly cleared out, there's no need to test Xu Xiang's bottom line just to make a little more money.

Moreover, Zhang Yang and Xu Xiang have no real grudges; they simply have different stances and different interests.

Seeing that Zhang Yang and Lin Guangchang both chose to play it safe, Liao Guopei didn't say much, but instead looked at his own Haitong Foods.

Unsurprisingly, it continued to rise to the daily limit, currently trading at 8.21 yuan.

At this time, the "Liu, Guan and Zhang gang" held a total of 8090.6 million shares, of which 7800 million shares were low-priced shares with an average holding price of 4.46 yuan. 290.6 million shares were newly acquired shares purchased at 7.37 yuan. In other words, the average holding price of the 8090.6 million shares was 4.56 yuan.

Based on a price of 8.21 yuan, if Zhang Yang, Liao Guopei, and Lin Guangchang choose to liquidate their holdings, they can realize a total of 6.64 million yuan.

With 6.64 million added to the previously cashed-out 1.54 million, their total funds are approaching the 10 billion yuan mark.

No one would have imagined that Zhang Yang, who only had 800 yuan six months ago, Liao Guopei, who had 40 to 50 million yuan, and Lin Guangchang, who had just surpassed 10 million yuan, would soon break through the 1 billion yuan mark.

If I told anyone, they would definitely think I'm an idiot.

Apart from Rainbow Shares and Haitong Foods, other speculative stocks are also gaining momentum, especially those in the ST sector, where 20 stocks have hit their daily limit, almost all of which were created by "A God" Qiu Baoyu.

The emergence of speculative stock rallies is often accompanied by a decline in the overall market.

At 9:30 a.m., the Shanghai Composite Index opened and quickly dropped to 2930 points, breaking through the 2900-point mark.

2894.

2888.

2876.

Just when the decline seemed to be slowing down and investors were hoping to catch their breath, the index suddenly surged to 2832 points, bringing the market down by a terrifying 5.32%, leaving retail investors in utter despair.

[Tidal Harvester]: I'm fucking kidding you. The A-share market is a typical garbage market. It took three days to finally climb back to around 3000 points, but it managed to drop to the 2800-point support level in just over ten minutes. Have some shame!

[Xiao Zhang Loves to Eat]: 666, I'm not playing anymore, I'm closing my account, I'm really not playing anymore, the main players are even more beastly than Fuchun Road!

[Silently Climbing the East Tower Alone]: Let's band together for some speculative stocks. It's too dangerous outside. I've just made three consecutive limit-up moves in Haitong Foods. It's great.

[Cute Girl]: I lost 20 yuan in half a month, losing all my previous profits. I feel that I am not suitable for stock trading, so I sold all my shares.

As the renowned American investment guru Jesse Livermore once said: "Paid-up profits are not money; real profits are. The market will give you a false sense of wealth until you learn to take profits in time."

At this moment, many retail investors who happened to catch the "oversold reversal" finally realized that the reason they were able to make money in this round of market activity in the first half of the year was not because of their superior trading skills, but because the market itself had a profit-making effect.

The saying "When the tide goes out, you discover who's been swimming naked" seems to never be outdated.

The extreme sell-off finally led to a significant increase in trading volume for the Shanghai Composite Index and the Shenzhen Component Index. The trading volume in the first ten minutes was 37% higher than the same period yesterday!

　Thank you so much to "你好hehehe" for the 5 points reward! I'm very grateful and excited. This is probably the kind of boldness that top-tier speculative investors have.

　　
　
(End of this chapter)