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

Chapter 228: The Stock Market Crash - "Liu, Guan, and Zhang" Leverage 8000 Million to Move 18.7 Billion

Friday's 3.19% plunge caught everyone off guard, and no negative news could be found.

But as the weekend approached, the mystery of the plunge was revealed.

On September 20, the State Taxation Administration announced that it would intensify tax collection efforts targeting high-income groups.

At this point, some people may ask: why would increasing tax collection efforts against high-income groups affect the secondary market?
1. High-income earners are the main force in stock trading. With less money in hand, the funds they can invest in the stock market will naturally decrease.

2. Increased tax collection and management has sparked speculation in the market about adjustments to the capital gains tax.

Now the focus is on increasing tax collection from high-income groups. What's next? Will it be a capital gains tax?
As early as the beginning of the year, there were rumors in the market that capital gains tax would be adjusted, but after six months of silence, many people forgot about the news.

Interpreting policy documents cannot be done by looking at the surface; it is not a single line, but a main line that connects to countless branches.

The common saying "a single hair can affect the whole body" aptly summarizes the content of a policy.

In addition to the document from the State Administration of Taxation, the People's Bank of China and the China Banking Regulatory Commission also jointly released a document on Sunday entitled "Guiding Opinions on Further Strengthening Credit Structure Adjustment and Promoting the Steady and Rapid Development of the National Economy".

Similarly, this policy document did not directly mention the stock market, but through measures such as targeted support for the real economy and restrictions on credit to industries with overcapacity, it indirectly squeezed the space for credit funds to flow away from the real economy and into speculative activities.

Why the sudden increase in credit funds?

This is intriguing!

Throughout history, credit funds have accompanied every bull market, and they can even become the main force driving it forward.

The phrase "strictly control credit irregularities in the market and control the scale of stock market bubbles" has always been the main theme during bull markets.

Because once credit funds exceed the scale and the stock market bubble becomes too large, the bull market will come to an abrupt end instantly, as has been learned countless times in blood.

The two policy documents issued over the weekend, on the one hand, increased tax collection efforts on high-income groups, causing the market to return to pessimistic expectations of a possible capital gains tax; on the other hand, they adjusted the credit structure and strictly controlled the illegal entry of credit funds into the market, which is definitely a major negative factor.

After the reasons for the sharp drop on September 18 were found, retail investor sentiment began to diverge.

[Angry Little Lei]: No wonder it fell so hard, it turns out the national team intervened again. Mom really hurts when she hits someone!

[The Rich and Handsome Who Buys Low]: Damn it, can't people who take out loans to speculate on stocks just put their money in Hong Kong or US stocks? Why do they have to come to the A-share market? They're like a rotten apple spoiling the whole barrel.

[Love Must Be Spoken]: Based on my 10 years of stock trading experience, next week is definitely going to be a bloodbath and a disaster. Everyone, get your diapers ready, so you won't embarrass yourself if you fall and lose control of your bladder.

[The most hurtful thing in the past]: Isn't it said that bad news turns into good news? Now that all the bad news has been priced in, the market shouldn't fall next week, right?
[Loves bubble tea]: I also think it won't continue to fall. The reason is simple: the negative news was already priced in on Friday. If it continues to fall, it would be an oversold condition, and the government won't allow its listed assets to fall so drastically.

While countless retail investors disagreed, Hu Xijin, Li Daxiao, and Zhou Runfa were unanimously optimistic about A-shares, publicly expressing their bullish views through their social media accounts.

[Hu Xijin]: I've prepared another 10 yuan. My view remains unchanged: there are gold mines everywhere in the A-share market below 3000 points. As long as it dares to fall, I dare to buy without hesitation!
[Li Daxiao]: Comrades, comrades, all the bad news has been priced in. The two policy documents released over the weekend have already explained Friday's sharp drop. It's like the bad news was priced in in advance. Don't panic, don't panic. When the bad news is priced in, the bull market begins. Let's embrace the "bad news bull market" next week.

[Chow Yun-fat]: When the market fell on Friday, I went all in to buy the dip, and I'm waiting to make a killing next week. Fellow Tonghuashun users, going all in is a wise move!!

Unlike Li Daxiao, Hu Xijin, and Zhou Runfa, who were bullish, Zhang Yang, Yang Delong, Liu Jipeng, and others held a pessimistic view, believing that the policy documents had not been fully digested.

Because retail investors were completely unaware of the existence of this policy document on Friday, some were still stubbornly resisting the decline. If they had known, the drop on Friday might have been 1% to 2%.

Since the market hasn't bottomed out, there's no question of the negative news being fully priced in, and the stock market still has room to fall.

……

With differing opinions on investment, everyone moved towards September 21st.

As predicted by Zhang Yang, Yang Delong, Liu Jipeng, and others, when the A-share market opened at 9:15 a.m., both the Shanghai Composite Index and the Shenzhen Component Index experienced a pullback, led by banks, followed by sectors such as securities and coal.

Entering the continuous bidding phase at 9:30, the Shanghai Composite Index continued to decline, falling below 2900 points and reaching a low of 2871.65 points, a drop of 3.26%, with reduced trading volume.

Hu Xijin, Zhou Runfa, and Li Daxiao were completely unprepared for such a sharp drop. Hu Xijin, in particular, never imagined that the index could fall below 2900 points, as this did not align with his investment philosophy.

Hu Xijin lost tens of thousands of yuan in just a few minutes, and for the first time he clearly felt how difficult it is for individual investors to make money.

Fortunately, there was a rebound in the afternoon session, and the Shanghai Composite Index finally closed at 2967.01 points, a slight increase of 0.15%, with a trading volume of 1457 billion yuan.

But Hu Xijin, Zhou Runfa, and Li Daxiao's joy didn't last long, as the A-share market, which had switched from a bull to a bear market, fell extremely rapidly.

On September 22, the Shanghai Composite Index fell 2.34% to close at 2897.55 points, with a trading volume of 1378 billion yuan.

On September 23, the Shanghai Composite Index fell 1.89% to close at 2842.72 points, with a trading volume of 1167 billion yuan.

On September 24, the Shanghai Composite Index rose 0.38% to close at 2853.55 points, with a trading volume of 1109 billion yuan.

On September 25, the Shanghai Composite Index fell 0.52% to close at 2838.48 points, with a trading volume of 81 billion yuan.

As for the Shenzhen Component Index, its trading volume on September 25 was only 447 billion yuan, and it closed at 11384.16, a drop of 0.8%.

This round of decline clearly shows that trading volume has been shrinking and the overall trend is a sharp drop. This has led to a problem: retail investors simply did not have time to escape and have become "long-term funds" in the stock market.

It took only 6 trading days for the index to fall from 3068 to 2838. Hu Xijin, a brand ambassador signed by Sina Finance and a new stock investor, continuously added to his positions during the downtrend, bringing his total holdings to 40 yuan.

Originally, I wanted to earn tens of thousands of yuan in endorsement fees, but I didn't expect that as I kept adding to my stock portfolio, the amount I invested in the stock market would far exceed the brand endorsement fee.

Having lost 40,000 to 50,000 yuan, Hu Xijin became more disciplined and dared not add to his position again, nor did he say that anything below 3000 points was gold.

Unlike Hu Xijin, Chow Yun-fat, who habitually goes all in, fared even worse, losing over 100,000 yuan, but his securities account gained 600,000 yuan because he "recharged" his account!

Retail investors who were trapped felt relieved to see Hu Xijin and Zhou Runfa's accounts losing money, and flocked to their social media accounts to leave comments.

[Jelly King]: I actually saw my past self in Editor-in-Chief Hu. Back then, I was very young and thought I would break even sooner or later, so I kept adding to my position. As a result, I encountered the stock market crash and almost died in 2004.

[Monk uses Pantene to wash his hair]: Hahaha, Hu Xijin's total account funds were 4 last week, and he made more than 40 in less than 10 days. Did he take out his wife's money to buy more shares?
[Nothing tastes better than dumplings]: Compared to Hu Xijin, Chow Yun-fat is truly wealthy, with his account already exceeding 100 million. However, the bad news is that over 90 of that money was transferred in during the last two weeks.

[Unspoken Love]: Old Hu probably understands now that even if you don't sell your stocks, they still have the ability to take advantage of you!
If the main players don't sell, how can they profit?
They just raised their sickles and started cutting!

Upon seeing the online comments, Hu Xijin regretted his decision, saying, "I wish I hadn't added to my position. Points below 3000 are not necessarily gold."

He's really behaving himself now, and the major players are really ruthless; every time he buys a stock, that stock inevitably falls.

What if he sells it?

Hey!
This stock started to rise!
Hu Xijin strongly suspects that the major players have installed a surveillance device on him, or rather, that they can see his securities account holdings.

Like Hu Xijin, Chow Yun-fat also wanted to earn some endorsement fees, but after entering the stock market, he lost more money than he could have earned from endorsements, and the worst part was that he still wanted to keep investing.

Compared to the continuous losses suffered by Hu Xijin and Zhou Runfa, Li Daxiao, the brand ambassador of Eastmoney, escaped the disaster because he is a securities professional and cannot engage in stock trading.

Although he didn't lose money, Li Daxiao couldn't be happy because the stock market crash was painful to watch and felt deeply hurt.

He never expected that the A-share market would actually experience a sharp decline.

Unlike Hu Xijin, Zhou Runfa, and Li Daxiao, who are firmly bullish on the stock market, Zhang Yang has a flexible stance on it.

Always bearish?
No!

Always bullish?
That won't work either!

Stock trading requires flexibility and adaptability!
It was precisely because of his flexible and ever-changing stance that Zhang Yang became the market's "bear commander" as soon as the trend was established on Tuesday, shouting the "dark cloud top" rhetoric.

His repeated accurate predictions not only made the name "Joker the God" even more renowned, but also led to the number of registered users on Caiyan.com exceeding 200 million, attracting a large number of stock market investors.

……

Zhangjiang, the capital of Shanghai.

Financial Research Network office space.

Zhang Yang locked the door to the finance conference room, then walked back to his seat and looked at Liao Guopei and Lin Guangchang, saying, "Shadowless Kick, Yangjia, which of you will go and borrow the bonds?"

After four days of consolidation, Shancheng Beer rebounded and hit the daily limit again on September 23, closing at 46.9 yuan.

As of 3 p.m. on September 25, Shancheng Beer had achieved three consecutive daily limit-up moves, closing at 56.75 yuan.

From the start of the sell-off on September 17th to September 25th, over a period of seven trading days, the "Liu Guan Zhang gang" accumulated 764 million shares of Shancheng Beer at an average purchase price of 44.2 yuan. Currently, their total holdings are 1978.06 million shares, with an average cost of 31.97 yuan.

另外，天坛生物在9月18号跌停后，9月21号又下跌2.4%，收在了25.33元，并且在9月22号和23号，它又分别下跌了5.97%和10%，最终收在了21.47元。

On September 24, Zhang Yang, Liao Guopei and Lin Guangchang officially intervened in Tiantan Biological Products Co., Ltd., and its stock price gradually stabilized with each buy order, closing at 21.39 yuan, a drop of 0.38%.

On September 25th, Tiantan Biological Products Co., Ltd. surged 5.7%, ultimately closing at 22.61 yuan.

Three individuals accumulated 4.4 million yuan worth of Tiantan Biological products in two days, with an average purchase price of 22.09 yuan, and a total holding of 1991.85 million shares.

Currently, the "Liu Guan Zhang gang" holds 1978.06 million shares of Shancheng Beer at an average cost of 31.97 yuan, and 1991.85 million shares of Tiantan Biological at a holding price of 22.09 yuan, with a remaining available fund of 9971.2 million yuan.

Seeing that his available funds were running out and that Shancheng Beer had resumed its upward trend, Zhang Yang realized that the time was ripe to borrow shares and decided to "take profits".

Liao Guopei: "I'll go."

Lin Guangchang: "I'll go."

The two spoke in unison.

After exchanging a glance and pausing for half a second, Liao Guopei and Lin Guangchang said in unison again, "I'll go."

They all knew that borrowing securities from institutions meant exposing their identities.

If Shancheng Beer's stock price were to collapse, retail investors, speculative funds, and institutional investors would suffer heavy losses and hold a grudge against the short sellers.

Whoever shows up to borrow coupons could become a public enemy in the industry!

As the owner of Caiyan.com, Zhang Yang needs to protect his reputation within the industry, so he certainly can't do this himself. He can only let Liao Guopei and Lin Guangchang handle it.

Seeing that Lin Guangchang was going to compete with him, Liao Guopei first glanced at Zhang Yang, then looked at Lin Guangchang and said, "Don't compete with me for Yangjia. I'm a wanted criminal from the Ningbo Limit-Up Daredevil Team, a man who has been put on a kill list by Xu Xiang. Even if more people hate me, it doesn't matter. You're different. You haven't experienced my trials and tribulations."

"Come on!" Lin Guangchang glanced at Liao Guopei and ruthlessly exposed him: "How long has it been since you used your seat in Chancheng? It's been through so much, I bet Xu Xiang thought you had retired from the business. You haven't shown up for trading in half a year."

As soon as he finished speaking, he looked at Zhang Yang and said, "I have dealt with organizations a few times, so I have some experience."

"Did you pull the lever?"

Zhang Yang inquired.

"Yes, using off-exchange leverage, short selling with borrowed securities should be similar to negotiating off-exchange leverage, right?" Lin Guangchang asked somewhat uncertainly.

In 2009, the A-share market was still in a "wilderness" state. Not to mention short selling, even margin trading had to be done through off-exchange institutions.

Zhang Yang thought for a moment and explained the process: "It is indeed similar to off-exchange leverage, requiring negotiation on annualized interest, margin, and the maximum time for returning the chips."

As soon as he finished speaking, he described it in detail: "For example, if you ask me to borrow shares, and I have 100 million shares of Shancheng Beer, assuming we sign a share lending contract at today's closing price of 44.2 yuan, then you will have cashed out 4420 million yuan."

"Before the chips are returned and the interest on the total amount of 4.42 million yuan in borrowed securities is paid, I will still hold this money in trust. In addition, you will need to pay me a margin, for example, 4420 million yuan. This is equivalent to a leverage of 1000 times. If the stock price rises, you may also be liquidated, but it mainly depends on how the contract is signed."

"Ideally, we should sign a securities loan agreement that is similar to an option, because we can maximize our profits by settling the debt at maturity."

In mature markets, securities lending is generally done on a margin basis, similar to leveraged financing, and both involve margin calls and the requirement to replenish margin.

However, in mainland China in 2009, the entire financial market was wild. As long as institutions saw enough profit, both parties could decide on their own to short sell through securities lending.

"So, we use a sum of money to agree with an institution on a specific date for settlement?"

Lin Guangchang pressed for an answer.

“That’s right.” Zhang Yang nodded, then corrected, “To be precise, it’s about agreeing on a certain date for fund settlement, with refunds for overpayments and additional payments for underpayments, similar to a bet. But convincing institutions to use this model for borrowing securities involves credit issues; it’s best to have someone with some reputation in the industry lend the money.” “Obviously!” Liao Guopei slowly stood up, smiling faintly, “I’m that person with some reputation in the industry!”

Liao Guopei, known as "Shadowless Kick of Chancheng," is a speculative investor who has been targeted by Xu Xiang. If he were to personally negotiate a loan with an institution, he would have a real chance of securing the deal.

Lin Guangchang looked at Liao Guopei and said with some concern, "It's fine to let Wuyingjiao pick up girls, but I'm a little worried about letting him talk about serious matters."

"Hey hey!"

"That's a stereotype!!"

Liao Guopei's expression changed slightly, and he quickly retorted to Lin Guangchang, "Don't let my appearance fool you, I am actually both rough and meticulous, both rough and meticulous, both meticulous and rough."

"See? He's really unreliable." Lin Guangchang turned his gaze back to Zhang Yang and said.

"I'm incredibly reliable, you wouldn't believe it..."

Liao Guopei wanted to argue further, but after careful consideration, Zhang Yang interrupted him, saying, "How about this, let Wuyingjiao handle it. However, while we're discussing the contract, keep in touch by phone. If we reach a stalemate, use the excuse of needing to pee to go to the restroom and discuss it with us first."

"OK, no problem."

Liao Guopei readily agreed.

Seeing that Zhang Yang had made the decision, Lin Guangchang didn't say anything more, but asked, "Then who should we borrow the coupons from?"

"Chaos Investment".

Zhang Yang said the name.

"Chaos Investment..." Liao Guopei muttered to himself first, then immediately realized and said, "The one owned by Ge Weidong, the Eastern Heretic?"

"Borrow securities from Dongxie? Isn't he mainly a futures trader? How come he holds shares in Shancheng Beer?" Lin Guangchang asked, puzzled.

"Yes, I asked my friends in the mutual fund industry to inquire. The information should be accurate. Wuyingjiao can ask them. If necessary, we can ask them one by one."

Zhang Yang wasn't sure if Chaos Investment held any shares in Shancheng Beer, because Tao Yuang had found out the information for him, and even he said that the information wasn't always reliable.

However, if Chaos Investment did not hold shares in Shancheng Beer, there are several other alternative institutions, most of which are headquartered in Shanghai, so a trip to each one wouldn't take much time.

Should I go there now?

Liao Guopei inquired.

Zhang Yang didn't rush to answer. Instead, he glanced at the time in the lower right corner of his computer. It was 3:19 PM. If he went to the Shanghai World Financial Center now, he would arrive around 4 PM.

"Next week, I'll transfer 8000 million to your account first. We're empty-handed now, so there's no point in going there now, especially since the A-share market is closed."

"Then next week."

"If we transfer out 8000 million, how much usable capital will we have left?"

"1971.2."

"Nearly 2000 million should be enough to maintain the stock price of Tiantan Biologics."

During their casual conversation, Zhang Yang, Liao Guopei, and Lin Guangchang finalized their plan to borrow securities from Chaos Investment next week.

As for the transfer of 8000 million, the bank responded very quickly. In less than a few seconds, it transferred a total of 8000 million from several securities accounts belonging to different individuals to the bank cards of Zhang Yang, Liao Guopei, and Lin Guangchang, and then transferred the money from Zhang Yang and Lin Guangchang's bank cards to Liao Guopei's bank card.

It's worth mentioning that while investors' funds are nominally held in securities accounts, they are actually managed independently by banks. Brokerages can only handle transaction clearing and cannot directly access the funds.

This separation mechanism of "brokerage firms managing transactions and banks managing funds" allows fund transfers to be completed directly within the bank's system without going through the brokerage firm's own account, and the entire process requires no manual intervention, thus achieving instant fund arrival.

However, while securities-to-bank transfers can be completed instantly, remittances between different bank accounts take time. Even though Zhang Yang and Lin Guangchang are both specially invited VIP members of the bank, they still need to wait up to three business days for the remittance to be processed.

……

The weekend arrived in the blink of an eye. In addition to his usual business dinners, Zhang Yang also had a meal with Lee Yeon-beom, the general manager of Samsung Group in China, and expressed his desire to become the exclusive distributor of Samsung LCD screens in China.

Lee Yeon-beom did not agree immediately, but needed to consult Samsung headquarters.

With the exclusive distribution rights for screen assemblies, nobody knows what Zhang Yang is really up to.

Because Shengtian had limited funds, Zhang Yang temporarily abandoned the idea of ​​investing in companies such as Luxshare Precision, Scirocco, and O-Film. The reason was that they could still find alternative products for these companies, but it was difficult to find alternatives for LCD screens, with Samsung Group almost far ahead of the competition.

In the mobile phone screen industry, some people have said that there are only two brands of mobile phone screens: Samsung and all other brands.

Zhang Yang remembers clearly that in his previous life in 2016, Zhou Guangping, a senior executive at Xiaomi, believed that his company's mobile phone shipments were very large. He went to Samsung Group to discuss the supply price of mobile phone screens and even made a ridiculous statement that if the price was not lowered, Xiaomi would stop purchasing them.

As a result, Samsung announced that it would stop supplying screens to Xiaomi. Later, Lei Jun personally went to apologize to Xiaomi, which finally calmed Samsung's anger.

It is easy to infer from this incident that before 2016, Samsung Group was irreplaceable in the field of mobile phone screens.

Because Xiaomi follows a budget-friendly strategy, if there are cheaper alternatives with similar performance for the phone screen, Lei Jun would not insist on using Samsung's phone screen.

To gain pricing power in the domestic mobile phone market, Zhang Yang, with limited funds, could only focus on making the product irreplaceable.

While Zhang Yang was entertaining guests over the weekend, news from China's capital market didn't stop either, with two more policy documents emerging.

The first is the "Notice on Several Opinions on Curbing Overcapacity and Duplication of Construction in Some Industries and Guiding the Healthy Development of Industries" issued on September 26. Its main content is to propose strict control measures for industries such as steel, cement, flat glass, coal chemical industry, polysilicon, and wind power equipment.

In the cement industry, for example, all projects that had not started construction before September 30, 2009, were suspended, and the principle of eliminating outdated production capacity in equal quantities was implemented.

In the polysilicon industry, new projects must have a scale of more than 3000 tons/year, and the reduction power consumption must be less than 60 kWh/kg. It is also encouraged to extend the industrial chain in conjunction with downstream enterprises.

In addition, the wind power equipment industry will no longer approve new turbine manufacturers, and will focus on supporting the research and development of turbine models of 2.5 MW and above.

The second policy document is the "Notice on Intensive Land Use," which reiterates the policy of reclaiming land that has been idle for two years without compensation and clarifies that an added value land price will be levied on idle real estate land. If land has been idle for one year but less than two years, developers must pay an idle fee of 20% of the land price. This measure aims to crack down on land hoarding and alleviate the tight land supply.

Both the "Notice on Several Opinions on Curbing Overcapacity and Duplication of Construction in Some Industries and Guiding the Healthy Development of Industries" and the "Notice on Intensive Land Use" will put pressure on related industries in the short term, but in the long run, they will be more beneficial than harmful.

When retail investors saw the policy documents, they were reminded of the two documents from last week: "Guiding Opinions on Strengthening Tax Collection and Management for High-Income Groups" and "Guiding Opinions on Further Strengthening Credit Structure Adjustment and Promoting the Steady and Rapid Development of the National Economy," and they began to tremble with fear again.

[Double Happiness]: Is there any expert who can interpret the document? Will the market crash again next week?

[Hello, Ms. Nervous]: It's said that the government is going to curb overcapacity in some industries, which means that companies' short-term performance will be under pressure, which is bad news. However, once the situation is adjusted, it will be more beneficial in the long run.

[King of Pizza]: The "Notice on Intensive Land Use" is also bad news; it's clearly aimed at suppressing real estate companies.

[Old Monk Doesn't Cheat]: You can't say that. Look at Li Ka-shing. He hoarded land like that back then. If left unchecked, developers would just hoard land without building houses, and ordinary people wouldn't even be able to afford a house.

[Mingjing Jiuzhou]: That's right. The two policy documents may seem like a crackdown, but they are actually guiding enterprises to develop in a healthy and orderly manner.

In addition to the two policy documents that put short-term pressure on businesses, four new companies are about to be listed on the A-share market. They are...

Jingyi Co., Ltd. belongs to the non-ferrous metal processing industry. Its main business is the research and development and production of high-precision copper tubes. Its customers include home appliance giants such as Gree and Midea. It is the only domestic enterprise with a complete industrial chain of copper processing equipment, precision copper tubes and deep processing products of copper tubes. It issued 3600 million shares at a price of 13 yuan/share and raised RMB 4.68 million.

Huihuang Technology belongs to the railway equipment industry. Its main business is providing railway signaling system solutions. It has a 40% market share in the domestic railway signaling microcomputer monitoring system. It benefited greatly from the demand during the peak period of high-speed rail construction in 2009. It issued 1550 million shares at a price of 25 yuan per share, raising 3.88 million yuan.

Boyun New Materials belongs to the aerospace materials industry. Its main business is carbon/carbon composite materials for aircraft braking systems. Its products are used in Boeing 737, C919 large aircraft and aerospace rockets. Its technology has broken the international monopoly. It issued 2700 million shares at a price of 10.8 yuan/share, raising 2.92 million yuan.

Xinlong Electric, belonging to the power equipment industry, is mainly engaged in the manufacturing of high and low voltage electrical equipment. Its products cover key national projects such as the new site of the National Taiwan Tower and the Beijing Subway. In 2009, the amount of unfulfilled contracts reached 6.74 million yuan. It issued 2800 million shares at a price of 9.5 yuan per share, raising 2.66 million yuan.

Four companies are set to inject 14.14 billion yuan into the A-share market in two days.

Two months ago, 14.14 billion yuan would have been a trivial matter.

But now?

The trading volume of A-shares on September 25 was only 125 billion yuan.

Keep in mind that this is the trading volume of both Shanghai and Shenzhen stock exchanges, a decrease of three to four times compared to July 29th!

With a trading volume of just over 1000 billion yuan and four companies about to go public, signs of a liquidity crisis are causing panic among retail investors.

……

Monday, December 9nd.

The A-share market did not disappoint investors, not only falling below 2800 points, but also experiencing a staggering drop. By the close of trading at 11:30 a.m., the decline had reached 2.72%, with the current index at 2752.86 points, and trading volume continued to shrink.

Some retail investors who managed to sell quickly are secretly delighted, while those who didn't are crying and complaining online.

[Super Rice Eater]: I jumped. If I fall again, I'm really going to jump off a building!
[Anonymous retail investor]: At that time, the sell button was only 0.01 centimeters away from me. If God could give me another chance, I would say to that sell button, I will press you!
[Bathing Emperor]: No, I was just joking the other day. Don't fall, don't fall! If you fall any further, I won't even have money for a foot bath. Xiao Mei's little brother is still waiting for me to support him through college!
Not only are retail investors crying out in despair, but Hu Xijin, who has always emphasized that there are gold mines below 3000 points, is completely convinced. He has finally realized that there is no bottom to be found in the A-share market.

Is 3000 points the bottom?
Is 2900 points the bottom?
Is 2800 points the bottom?
No, not now. The Shanghai Composite Index has broken through 2752.86 points!
He wanted to cut his losses and leave the market, and also close his securities account, but he couldn't bring himself to do it.

Looking back on his recent remarks, he really wanted to slap himself.

Unlike Hu Xijin's realization, Zhou Runfa added another 100 million yuan to his position, bringing his total holdings to 213 million yuan.

Endorsement?

He has forgotten that he is a spokesperson!
The line between a stock market investor and a gambler is often very thin.

While Hu Xijin, Zhou Runfa, Li Daxiao, and retail investors were still shocked that this round of A-share market crash was not over yet, Liao Guopei had already successfully met with Song Zijun, the general manager of Chaos Investment's stock business.

After understanding Liao Guopei's purpose, Song Zijun asked with some surprise, "You mean, you want to borrow Shancheng Beer's shares from Chaos Investment and sign a loan agreement?"

“That’s right.” Liao Guopei nodded, then asked, “How many Shancheng Beer chips does President Song have?”

"Nearly 3000 million shares."

Song Zijun admitted.

The moment those words were spoken, Zhang Yang and Lin Guangchang, who were in the same office at Caiyan.com and had been eavesdropping on the conversation, were taken aback. They never expected that Chaos Investment would hold 3000 million shares of Shancheng Beer.

On September 28th, this morning, Chongqing Beer unsurprisingly achieved its fourth consecutive daily limit up, currently trading at 62.43 yuan.

This means that the total value of the chips held by Chaos Investment has reached an astonishing 18.7 billion Chinese yuan.

This surprised Zhang Yang, Lin Guangchang, and Liao Guopei.

Liao Guopei currently only has 8000 million yuan, making it virtually impossible for him to leverage 18.7 billion yuan.

"Gulu——"

Liao Guopei swallowed.

Compared to Zhang Yang and Lin Guangchang, he could only be considered a "military general." He immediately stood up and said with a slight apology, "I...I need to pee. Mr. Song, where is the restroom in your company?"

"Turn right after you go out, and it's at the end of the road."

Song Zijun said calmly.

"Excuse me for a moment." Liao Guopei quickly walked out of the office and went to the restroom.

He took out his phone, held it to his ear, and said, "Hey Joker, Yangjia, did you hear that? Chaos Investment actually holds 3000 million shares of Shancheng Beer, and I only have 8000 million Chinese yuan. What do we do now?"

Zhang Yang remained silent for a long time on the other end of the phone, a hint of madness flashing in his eyes.

It is said that his investment style is quite conservative, only pursuing visible returns, but in fact, his investment style is never bound by any rules. As long as the potential for return is large enough, he dares to bet everything!
“Go back, I’ll talk to him.”

(End of this chapter)