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

Chapter 217: Zhang Yang's "Bull Farming" Strategy – Profiting from Both Long and Short Sides

What do you want from Shancheng Beer?

"Could it be that the consumer sector is about to see a rally?"

Liao Guopei and Lin Guangchang looked puzzled; they didn't understand why Zhang Yang would suddenly mention Shancheng Beer.

If they remember correctly, Shancheng Beer has already "set in the sunset".

Previously, when it came to beer, besides Qingdao Beer, Shancheng Beer was the most prominent, and the two companies almost monopolized the domestic beer industry.

In 2008, Shancheng Beer attracted the attention of foreign brewery Carlsberg, which invested in the company and became its second-largest shareholder.

In the same year, Snow Beer's slogan "Brave the world" shattered Chongqing Beer's market share, allowing Snow Beer to successfully take the second place in the beer industry and have the potential to compete with Qingdao Beer for the top spot.

"It's not that the consumer sector is booming, but rather that Chongqing Beer is booming."

Zhang Yang glanced at the two men and calmly recounted, "In October 1998, Shancheng Beer invested 1435 million yuan to acquire 52% of the equity of Jiachen Bioengineering Co., Ltd., officially getting involved in the development of the hepatitis B vaccine project."

"In 2003, the therapeutic hepatitis B vaccine entered Phase I clinical trials, and the results proved that its safety met the requirements. However, the final results of the Phase II-A clinical trial in 2006 showed that the vaccine was ineffective for patients with chronic hepatitis B."

"But now..."

Zhang Yang paused for half a second and gestured, "I've sent you the market research report. The author of this report, Wang Xi, has won the New Fortune Best Analyst in Biomedicine award multiple times and has a certain reputation in the industry."

Upon hearing this, Liao Guopei and Lin Guangchang both opened QQ and checked the contents of the market research report sent by Zhang Yang.

Upon opening the market research report, the first thing that catches the eye is the headline "Shancheng Beer, the Oranges Are Almost Ripe," followed by a summary line below that reads "Therapeutic Hepatitis B Vaccine Enters Phase II Clinical Trials, with a High Probability of Success," and a "Strong Buy" rating on the right.

obviously.

Wang Xi is strongly promoting Shancheng Beer.

Lin Guangchang scrolled down the mouse wheel to browse the market research report.

Based on the Phase II pre-experiment data released by Jiachen Bio, a subsidiary of Shancheng Beer, Wang Xi believes that the vaccine has advantages such as "high efficiency, low rebound rate, and convenient treatment," and is significantly different from traditional interferon and nucleoside analogs, judging that it "has a high probability of obtaining a new drug certificate."

Furthermore, he used a sum-of-the-parts valuation method, valuing the beer business at 10 yuan per share and the vaccine business at 22 yuan per share, resulting in a combined target price of 32 yuan. He then compared this 32 yuan with the closing price of Shancheng Beer at 19.24 yuan on August 28th, thus giving the stock a "strong buy" rating.

Unable to understand the experimental data cited in the research report, Lin Guangchang was genuinely intimidated by the market report and excitedly exclaimed, "A curative hepatitis B vaccine? Doesn't that mean that Shancheng Beer is about to unlock a market worth hundreds of billions?"

"Hundreds of billions? That's definitely trillions!" Liao Guopei corrected, as if he were seeing a rising star with great potential.

why would you say so?

According to the latest disclosure from China's health authorities, the number of people infected with hepatitis B virus in 2009 reached 120 million, meaning that one in every 11 people was a hepatitis B virus carrier.

It's important to know that this only applies to China. The number of people infected with hepatitis B worldwide is conservatively estimated to be over 3 million, and the numbers in regions like Africa and the Middle East are impossible to count.

"How about we build a beer house called Jiancang Mountain City Beer?"

Lin Guangchang looked at Zhang Yang.

He knew the dangers of hepatitis B. Although the disease wouldn't kill someone immediately, it could lead to cirrhosis and even liver cancer.

"We definitely need to establish positions, but this time, we'll be doing both long and short positions!"

"???"

"???"

Zhang Yang made a startling statement.

Liao Guopei and Lin Guangchang exchanged a glance, their eyes clearly showing their bewilderment.

They can understand going long; it's just normal buying stocks and waiting for them to rise.

But how do you short sell?
It's important to understand that the A-share market currently doesn't even have domestic index futures, let alone short selling through securities like in the US and European stock markets.

With these questions in mind, Liao Guopei looked at Zhang Yang and said, "I can understand going long, but how should we go short?"

“Yes,” Lin Guangchang agreed, then pressed, “Are we going to borrow from an organization?”

“You’re absolutely right.” Zhang Yang smiled faintly, confirming Lin Guangchang’s guess: “It’s about borrowing bonds from institutions.”

Would others lend it to me?

Lin Guangchang asked again.

Faced with this question, Zhang Yang remained calm and composed, saying, "It would be foolish not to make money when you can. Borrowing shares from institutions is essentially a high-interest gamble. They think the stock price can continue to rise, while we think the stock price has peaked. It all comes down to whose judgment is correct."

While short selling by institutions may not be popular in mainland China, it is a very common and highly mature business in Hong Kong, where the financial market is relatively mature.

For example, the 97 Hong Kong financial defense battle involved Wall Street capital borrowing a large amount of shares from Hong Kong financial institutions before dumping them, agreeing to return the shares at the closing price on a certain day and paying a lending fee.

For example, suppose you borrow 10 shares from an institution at a price of 10 yuan, for a total price of 100 million yuan, and then sell them. The agreed annual interest rate is 5%, and the maximum repayment period is 60 days. Then the daily fixed interest expense would be 136.99 yuan.

If the stock price drops to 9 yuan the next day, a drop of 10%, without considering transaction fees, you only need to spend 90 yuan to buy back 10 shares.

If you choose to cash out and leave the market at this point, your costs will be transaction commissions and daily interest of 136.99 yuan, with a profit of approximately 9.9 yuan.

However, if the stock price rises by 10%, and remains at 11 yuan until the maximum 60-day lending period, then you will not only have to pay the institution 8219.4 yuan in lending interest, but also have to use 110 million yuan to buy back 10 shares to return to the institution, which is equivalent to a loss of nearly 10.83 yuan.

From a probabilistic perspective, the reason why institutions are willing to lend securities to investors is because they naturally have a winning advantage.

When stock prices rise, institutional investors profit.

Stock prices are consolidating, and institutional investors are winning.

When stock prices fall, investors win.

Holding a 2/3 probability, or a 66.67% chance of profit, institutions are willing to gamble against investors when the stock price is consolidating or has room to rise.

"So, we first go long, then borrow shares from institutions to short sell, right?"

Liao Guopei inquired.

“That’s right,” Zhang Yang nodded.

"I feel the risk is a bit high. Stocks like this with so much potential could easily become the year's hottest stocks," Lin Guangchang said to Zhang Yang and Liao Guopei with concern.

“What you’re saying about supporting a family makes sense. Stock trading is all about speculation. The potential for a curative hepatitis B vaccine is enormous. Even if Chongqing Beer only makes a small progress each year, it will still attract a lot of capital from the market.”

As Liao Guopei said, the moment the news of Shancheng Beer's "good news" was spread by the media, its stock price had already fluctuated, and it has now risen by 5.43%, with the current price at 20.38 yuan.

However, Zhang Yang just smiled faintly after hearing this: "It has been dragging on for 11 years and there has been no real progress. You can imagine how difficult it is to develop a curative hepatitis B vaccine. If it announces that the development has failed one day, wouldn't we be able to reap the benefits of short selling?"

Liao Guopei: "(⊿)!!!"

Lin Guangchang: "(°口°)!!!"

Both of them were shocked. They never expected that the development of a curative hepatitis B vaccine would fail. After all, Wang Xi's market research report was very detailed and convincing, as if Shancheng Beer would announce the successful development of the vaccine at any moment.

But suddenly, Liao Guopei lowered his voice as if he were a thief: "Joker, tell us secretly, have you dug up some inside information again?"

"Yeah, is there something going on inside?"

Lin Guangchang also lowered his voice.

They haven't forgotten the time when Kaino Technology and Meijin Group controlled the stock. Zhang Yang's power was so great that he was able to mediate the backdoor listing and even make the fake negotiations between the two parties fall apart. Who can compare to that?

If there is indeed inside information, then the idea of ​​profiting from both sides is no longer just wishful thinking.

"I would say a little." Zhang Yang remained calm and composed, as if he truly possessed some inside information about vaccine development.

"Then let's do it!"

"Yes, let's do it!"

As soon as Liao Guopei finished speaking, Lin Guangchang couldn't help but loudly echo his words.

With inside information, what's there to be afraid of?
Just close your eyes and get to work!

"Since you agree, let's roll up our sleeves and get to work. We'll cash out all our chips this week, then buy Shancheng Beer in batches, going long first, then short. Is that alright?"

Zhang Yang glanced at the two of them and said.

"no problem!"

"You're the gang leader, you're in charge!"

Liao Guopei and Lin Guangchang had no objections. Even though Zhang Yang didn't reveal the specific details of the inside information, they were willing to believe him because this man's connections in the financial world far exceeded the imagination of ordinary people.

……

And on the other side.

The open-plan office area of ​​Zexi Private Equity.

Holding the landline receiver, Xu Xiang said in a warm and friendly tone, "Haha, as expected of Manager Wang, who focuses on the biopharmaceutical field and has won the New Fortune Best Researcher in Biopharmaceuticals award multiple times. I wish us a pleasant cooperation."

"It's a pleasure to cooperate, Manager Xu." Wang Xi had just finished speaking when he added, "Like I said before, we'll be responsible for creating momentum, and you'll be responsible for controlling the situation. Everyone gets what they need."

"I am very sure of that."

Xu Xiang laughed.

When Zexi Private Equity was first established, Wang Xi, like other public fund managers, approached Xu Xiang hoping to establish a cooperative relationship.

Will he refuse?
He won't!
Collusion between public and private funds to transfer benefits is an open secret in the industry; only retail investors are unaware of it.

“Okay, then I won’t bother Manager Xu with the market control. I’ll release a few more market research reports in the next few days to make sure Shancheng Beer’s popularity soars,” Wang Xi added.

As a well-known analyst at Industrial Securities, his market research reports not only have the backing of his personal credit, but also the authoritative certification of the securities company.

This is like someone saying that a certain area is dangerous. You might dismiss it and insist on going there, but if that person reveals their identity as a police officer, the situation is different. Most people will choose to avoid it. This is the importance of official endorsement.

For individual investors, securities companies are authoritative institutions.

"Okay, let's talk again later."

"Talk to you later."

Xu Xiang hung up the phone.

As soon as he hung up the phone, Shu Yimin couldn't help but ask, "Brother Xiang, are you going to boost the price of Shancheng Beer?"

"No rush. The oranges are ripe, but the peaches aren't. The first speculative stock of the year, driven by hot money, will fall into the hands of our Ningbo Limit-Up Daredevil Team." Xu Xiang revealed his ambition, his eyes now extremely aggressive.

As a private equity manager with a background in speculative capital, he is equally obsessed with the "demon stock of the year," an honor that can be recorded in history.

Starting from 1991, there have been at most 19 "monster stocks" of the year, and the "monster stock" of 2009 has not yet been settled.

Of the 1.3 million stock market investors in China, there are only about a hundred speculative investors. Among these few, no one has yet emerged who can dominate the "demon stock of the year," and the market is basically dominated by institutional investors.

Upon hearing Xu Xiang's idea, Xu Haiou asked with some surprise, "You want to make Shancheng Beer the biggest hit in 2009?"

"That's right!"

Xu Xiang nodded and said in a deep voice, "Every stock that becomes a major speculative phenomenon in a year has one thing in common: it has a lot of room for imagination."

"Jiachen Biotechnology, the parent company of Shancheng Beer, has developed a curative hepatitis B vaccine that, regardless of its success or failure, can provide a great deal of potential for growth within 1 to 3 years."

Stock trading is all about trading expectations, and expectations are the imagination of various funds.

Why is it said that good news can turn into bad news once it's implemented?
The reason is that there is no room for further growth, so the stock price will naturally fall.

Of course.

It's not always true that good news can turn into bad news.

Take the curative hepatitis B vaccine as an example. After its successful development, there will be expectations for its performance and the vaccine's effectiveness.

To determine whether the hype surrounding a stock will turn into a negative factor once it comes to fruition, one can look at its overall potential for growth.

For example, Haitong Foods and Yijing Optoelectronics are currently being speculated on in the market due to expectations of a backdoor listing. Essentially, this is about realizing Yijing Optoelectronics' valuation in the secondary market. Once the backdoor listing is completed, the positive news will be fully priced in and become what is considered negative news. "Shancheng Beer is currently priced at 20 yuan, and at the beginning of 2009 it was 13 yuan, a tenfold increase. Doesn't that mean it will rise to over 130 yuan?"

Sun Guodong asked in surprise.

Ma Xinqi, standing to the side, looked serious and analyzed, "4.84 million shares in circulation, at 130 yuan per share, that's a market value of over 600 billion yuan. We can't achieve that on our own, can we?"

“We can’t do it alone, but don’t forget there are other private equity firms and public funds. We just need to heat up the market and get more funds in to prop up the price.”

Xu Xiang revealed his inner thoughts.

He didn't know if a curative hepatitis B vaccine would be successful, but with this gimmick, plus the hype from Zexi Private Equity and other private equity firms, attracting other funds wouldn't be difficult.

Moreover, since Jiachen Bio announced the development of a curative hepatitis B vaccine, Shancheng Beer has been held by public funds with the expectation of price increases.

This stock has room for speculation, it just needs a "trigger".

Whether it was for the honor of being a speculative investor or for his own selfish desire to enhance the reputation of Zexi Private Equity, Xu Xiang wanted to give it a try.

"How many shares has this stock attracted?"

Xu Haiou inquired.

Because he was a social butterfly for the Ningbo Limit-Up Daredevil Team, he spent most of his time digging for inside information and was unaware of the specific accumulation of shares in Shancheng Beer.

"We should have 4000 million shares by now."

Sun Guodong responded.

They got involved with Shancheng Beer very early, in June, the same month Xu Xiang established Zexi Private Equity Fund.

It's worth mentioning that in June and July, the stock price of Shancheng Beer was in the range of 20-24 yuan. With the arrival of the "bloody August", its stock price dropped to a low of 16 yuan. In other words, even if the stock price hits the daily limit today, it has only just reached their purchase price range.

"Hundreds of millions?"

Xu Haiou asked again.

Sun Guodong thought for a moment and replied, "Probably eight or nine hundred million."

“Since so much has already been invested, fine then. I’ll find out more about the curative hepatitis B vaccine later,” Xu Haiou said in a deep voice.

"Should I prepare to create momentum online?" Ma Xinqi asked Xu Xiang for his opinion.

"No rush. I'll sound out the other public and private funds over the next few days to avoid going it alone," Xu Xiang responded.

Shancheng Beer is no longer a small-cap stock; it's among the top-performing mid-cap stocks by market capitalization.

Of the 4.84 million shares, Shancheng Beer itself holds 32.25%, totaling 1.5609 million shares, while foreign brewery Carlsberg holds 17.46%, totaling 8450 million shares. Of the remaining eight shareholders in the top ten circulating shareholders, Xu Xiang holds four, and the rest are some public funds and investment companies, holding a total of 15.63%, or 7564 million shares, leaving 1.67 million shares.

Based on a share price of 20 yuan, there are still over 30 billion yuan worth of shares available.

Xu Xiang would not go all in alone, and his goal was to push the stock price to the sky to cash out, which required other funds to work together.

……

While the market research report "Shancheng Beer, the Oranges Are Almost Ripe" was stirring up undercurrents, the A-share market, after a long period of capital game, finally confirmed its bottom in the afternoon.

3pm sharp.

A-shares closed.

The Shanghai Composite Index closed at 2667.75 points, down 6.74%, with trading volume exceeding 2000 billion yuan, showing a significant increase in volume. The Shenzhen Component Index closed at 10585.09 points, down 7.55%, with trading volume exceeding 1000 billion yuan. The combined daily trading volume of the two markets returned to 3000 billion yuan.

Due to the largest single-day drop in six months, major financial media outlets are spreading pessimism, countless retail investors are in despair, and many are selling at a loss.

[Where Did the Hero Go?]: Maybe this is fate. I just got into the stock market in early August and lost 60% of my investment in a month. More than 100,000 yuan evaporated. I'll have to work honestly from now on.

[Small Investor]: There's no bottom. The A-share market has absolutely no bottom. The battle to defend 3000 points has dragged us all the way down to 2600. I suspect that tomorrow they'll be launching a battle to defend 2400 points!

[Dump truck driver]: I'm asking because I don't understand. I've lost 40% of my money. Is there any chance I can ever break even? Please answer, waiting online.

[Teletubbies]: 2400 points is too low. Tomorrow we'll start the battle to defend 2000 points. If we lose, the A-share market will go back to below 1000 points like it did in 90. It's really unbearable to watch!

[The Man of Hegemony]: Everyone, don't be impatient or panicked. Be as mature and steady as me. When it comes to stock trading, you might just jump off a building while you're trading, haha.

Who would have thought that in just one month, the index would drop by as much as 800 points, and even the Shenzhen Component Index had to fight to defend the 10000-point mark.

Li Daxiao, who has always been "raising cattle," doesn't dare to say a word now, and doesn't even dare to open Weibo or other social media platforms.

Because he was well aware that this violent market downturn, coupled with the lack of government intervention, could lead to a continuous sell-off.

The downfall of the "cattle farmer" paved the way for the rise of the "joker god". At this moment, the number of followers on the Joker Speculative Capital Channel of Caiyan.com has exceeded 15, and the cumulative number of posts has exceeded 100 million. Countless retail investors are now lamenting in it.

[Likes twin tails]: Is Joker here? Is Joker here? Please continue to answer questions about the A-share market trend.

[Park Chang-beom]: I should have believed Joker. If I had sold all my shares yesterday, I could have avoided this drop and wouldn't have lost everything.

[Love You for 20,000 Years]: Ten thousand people are petitioning Joker, the great god, to show us the way! Joker, the great god, please save us retail investors!
[I will definitely do this to Li Daxiao in this lifetime]: I was a child and didn't know any better. I mistakenly trusted Li Daxiao. Now I just want to say to the great Joker, you are my only salvation. Please help me get out of this mess!
Zhang Yang didn't check the speculative trading channel immediately; instead, he organized today's transaction records and current funding information.

Due to the sharp drop in A-shares, Haitong Foods saw exceptionally strong buying support today, allowing them to successfully sell half of their shares, namely 3900 million Haitong Foods shares, totaling 4.134 million yuan.

Currently, the "Liu Guan Zhang gang" still holds 3900 million shares of Haitong Foods at an average price of 4.46 yuan, 2200 million shares of Rainbow Shares at an average price of 7.37 yuan, and 200 million shares of Shancheng Beer acquired in the afternoon at an average price of 20.43 yuan. The remaining available funds are 4.2654 million yuan.

"How about it, it's broken 10 billion, right?"

Liao Guopei couldn't help but ask.

“It’s broken.” Zhang Yang nodded and then stated tomorrow’s trading plan: “Tomorrow we can clear out our Rainbow shares to avoid Xu Xiang’s market crash, and then sell half of Haitong Foods.”

No one knows if Xu Xiang will suddenly dump the shares. Although Rainbow Shares certainly has more potential than this, he doesn't want to take the risk.

"Well, let's take it and be safe."

Liao Guopei nodded in agreement.

He was actually a little afraid of Xu Xiang, after all, the other party was the head of the speculative capital group and had countless fierce generals under his command.

Lin Guangchang had no objection and echoed, "Mobilize funds and go all out on Shancheng Beer!"

If Rainbow Shares hits its daily limit again tomorrow, its share price will reach 9.69 yuan, and Haitong Foods' share price will reach 11.66 yuan.

Based on the existing shareholdings, 3900 million shares of Haitong Foods can be cashed out for 4.54 million yuan, and 2200 million shares of Rainbow Shares can be cashed out for 2.13 million yuan.

Assuming both stocks are sold off, 4.54 million + 2.13 million = 6.67 million yuan, plus 4.2654 million yuan of available funds, the "Liu Guan Zhang gang's" available funds will soar to 10.935 billion yuan.

Haitong Foods and Rainbow Group will profit at least 6 million yuan, and according to the 532 distribution plan, Zhang Yang can get at least 3 million yuan in profit.

"Joker, you go ahead with your work. We'll head back now. Call us if you need anything."

"Row."

"See you tomorrow."

"Well, see you tomorrow."

Liao Guopei and Lin Guangchang left one after the other.

Zhang Yang didn't rush back to his office. Instead, he first opened the Joker investment channel to check the online public opinion. After all, the A-share market had indeed fallen quite a bit today, marking the largest single-day drop since 2009.

When he saw retail investors petitioning Joker for guidance, he smiled helplessly and said, "After so many reminders, you still couldn't reduce your holdings?"

He had been warning of a liquidity crisis since July, and when the market peaked in August, he again expressed a bearish view of the top, but many retail investors were still deeply trapped.

There was no other way; for the sake of Caiyan.com, Zhang Yang had to step in and offer his advice.

[The 120-day moving average (half-year line) has been breached. Although it hasn't formed a death cross with the 5-day moving average, it's very close. Pay close attention to volume changes over the next four trading days. In extreme market conditions, it's recommended to use the KDJ technical indicator, as MACD has a lag. Also, tomorrow will see the release of macroeconomic data such as CPI and PPI. If the economy improves, consider establishing a base position. Retail investors who are currently holding losses should not make any rash moves.]
Although the 120-day moving average is known as the "bull-bear dividing line," fortunately, the 5-day moving average did not form a death cross with it, and important macroeconomic data will be released tomorrow, which may reverse the downward trend of the stock market.

As for why Zhang Yang wanted to prevent those trapped in losses from making any rash moves, the logic is simple: the market had already held firm at 3478 points, so selling at a loss in the 2600-2700 range would be extremely unprofitable.

Even if it continues to fall, the 2200 to 2400 point range is a good place to buy more shares; it will definitely not fall below 2000 points.

Why so sure?
The last time the market plummeted to 1660 points was due to the subprime mortgage crisis. Without an economic crisis or the threat of war, would the A-share market fall below 2000 points? That's wishful thinking.

Even if Zhang Yang wasn't a reborn person, he could still deduce from the economic recovery trend that the A-share market has a support level around 2400 points.

The post received over 5000 views immediately after it was published, with a large number of retail investors waiting to see what would happen.

[Loves Chocolaz]: Thanks to joker for sharing, I understand now, the KDJ indicator is more useful than MACD in extreme market conditions!

[His chrysanthemum is very moist]: Heaven and earth spirits, please bless us so that tomorrow's PPI and CPI data will rebound, I beg you.
[Speedy Kid Xiao Jie]: It still has to be Joker, the master, with his reasoned and evidence-based analysis, unlike Li Daxiao, who just shouts nonsense.

[Da Vinci]: I almost cut my losses and ran away, but since the great Joker said to wait a little longer, then I'll wait a little longer. If I break even and get out of the predicament, I'll definitely renew my annual membership, consider it tuition.

Retail investors are buzzing with discussion, all eagerly anticipating the release of tomorrow's PPI and CPI data.

……

The next day, March 1th.

Because of the start of the school year, Chen Xiaoqun can no longer monitor the stock market in real time, and he can only use the limited time to set the conditions.

For example, at the very first moment of midnight, place a conditional sell order for Rainbow Shares at the limit-up price of 9.69 yuan, and then place a buy order for 10,000 Industrial and Commercial Bank of China shares at 4.46 yuan, which is 0.01 yuan less than the previous trading day.

As long as Rainbow Co., Ltd. hits its daily limit on September 1st, which is today, the sell order will be automatically triggered. The same applies to Industrial and Commercial Bank of China; any stock that opens 0.01 yuan lower will be executed.

When he didn't have time, this was the only way Chen Xiaoqun could trade stocks.

Of course.

He can still take a look at the charts once he starts.

Because the classroom's multimedia equipment is connected to the internet, he can go to the podium to trade stocks during the ten-minute break between classes, but only during the break.

At 9 a.m., while Chen Xiaoqun was still teaching, the National Bureau of Statistics released the macroeconomic data for August.

1. The CPI index fell by 1.2% year-on-year, but rose by 0.5% month-on-month, marking the first positive growth in six months. This was mainly due to fluctuations in food prices. For example, pork prices fell year-on-year but stabilized month-on-month, while vegetable prices rebounded due to seasonal factors. Core CPI still maintained positive growth, indicating that the foundation of domestic demand has not been fundamentally impacted.

2. The PPI index fell by 7.9% year-on-year, but the decline was significantly narrower than in previous months. This reflects the marginal easing of deflationary pressure in the industrial sector, especially as raw material prices such as steel and non-ferrous metals gradually rebounded under the impetus of infrastructure investment.

3. The growth rate of industrial output above designated size was 12.3% year-on-year, 1.5 percentage points faster than in July. This is the fastest growth rate since the outbreak of the international financial crisis in September 2008. Among them, heavy industry grew by 13.1% and light industry grew by 10.6%. Major industrial provinces such as eastern Guangdong and Jiangsu all saw growth rates exceeding 9%, while eastern Shandong and Northeast China saw growth rates exceeding 15%.

4. In August, total retail sales of consumer goods reached 1.01 trillion yuan, a year-on-year increase of 15.4%, maintaining double-digit growth for three consecutive months. Automobile sales performed exceptionally well, with sales of 113.85 million vehicles in August, a surge of 81.7% year-on-year. Home appliances, clothing and other categories also showed signs of recovery.

5. From January to August, urban fixed asset investment increased by 33% year-on-year, and fiscal expenditures were tilted towards transportation, water conservancy and other fields. For example, in August, fiscal expenditures on transportation increased by 55.1% year-on-year, and expenditures on agriculture, forestry and water affairs increased by 52.9%.

……

8. In August, the total value of imports and exports was US$1917 billion, a year-on-year decrease of 20.6%, but the decline narrowed compared with the previous months. Exports were US$1037.1 billion, down 23.4%, and imports were US$88 billion, down 17%.

9. At the end of August, the M2 balance was 57.67 trillion yuan, a year-on-year increase of 28.53%, and the M1 balance was 20.04 trillion yuan, a year-on-year increase of 27.72%, both at historical high levels. Credit supply continued to be loose, with new RMB loans totaling 7.4 trillion yuan from January to August, mainly supporting infrastructure and small and medium-sized enterprises.

10. National fiscal revenue reached 5237.47 billion yuan, a year-on-year increase of 36.1%, mainly driven by the low base in the same period of the previous year and one-off revenue increases. Fiscal expenditure reached 4737.12 billion yuan, an increase of 17.4%, with people's livelihood and infrastructure becoming the focus of expenditure.

As economic data is presented to everyone, not only does the negative impact of PPI become a positive factor, but the recovery expectations shown by other economic data are rising to an unprecedented level.

The narrowing of restrictions where they needed to be narrowed, the growth where they needed to be grown, and the country's substantial investment has also yielded positive feedback at this moment.

Upon seeing the macroeconomic data, and combining it with the anchor points of his reborn memories, Zhang Yang immediately made the most rational decision: "With strong expectations for economic recovery, the stock market has bottomed out."

Without hesitation, he posted a reminder.

[The macroeconomy rebounded across the board in August. We don't need to look at other data; just the most straightforward indicator is the growth of M1 and M2 money supply. The amount of money in circulation is increasing. Deflation won't lead to a significant increase in M1 money supply. Furthermore, consumption is surging, with automobile sales increasing by a staggering 81.7% year-on-year. Fellow investors, the bull market is truly here, and the bottom of the Chinese stock market may have already formed!]
When the post was published, the large number of retail investors who followed the Joker Speculative Funds Channel were in an uproar.

[Kids Aren't Simple]: Although the PPI fell by 7.9% year-on-year, the decline was actually narrowing, and our consumption and industrial growth were extremely rapid, which is definitely a signal of a full recovery!

[Raging Cat]: Joker is calling for a bull market recovery, so the economy must be recovering. I'm going to go all in on my positions!
[Jasmine Honey Tea]: The August data is so strong, it's beyond expectations! Rise up, China!
[Fishing Guy]: Enough said. I trust Joker's judgment on the macroeconomy. The stock market is a barometer of the economy. If the economy is good, I don't believe the stock market can go back to 1660 points. Brothers, let's go all in!
The moment the "Air Force Commander" took off his hat, the entire internet was shocked. No retail investor expected Zhang Yang to be so decisive, shouting "bull" without the slightest hesitation.

Yang Delong, chief analyst at Southern Asset Management, rubbed his eyes several times as he read the post. After confirming that it was indeed posted by Zhang Yang, he muttered to himself, "How come Zhang Yang is raising cattle now? Anyone who didn't know better would think that Li Daxiao had hacked his account."

Meanwhile, Li Daxiao, who was far away at Yingda Securities, saw Zhang Yang's latest update and immediately broke down, saying, "Wait, you're calling it a recovery bull market, what bull market am I supposed to call??"

(End of this chapter)