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

Chapter 243 The Four Dragons and Four Phoenixes Plan: Xu Xiang Falls into the Trap Again

Zhangjiang, the capital of Shanghai.

Financial Research Network office space.

After discussing countermeasures with Xu Zhirou, Zhang Yang returned to his office to organize yesterday's market news.

1. The China Insurance Regulatory Commission (CIRC) issued the "Notice on Regulating the Stock Investment Business of Insurance Institutions," which allows insurance funds with adequate solvency ratios to conduct normal stock investments, and raises the upper limit for corporate bond investments from 30% to 40% of total assets.

2. The Shenzhen Stock Exchange has imposed strict requirements on the first batch of 28 companies listed on the ChiNext board, including the management of special accounts for oversubscribed funds and the extension of the lock-up period for controlling shareholders' shares to 36 months.

3. Everbright Securities released a market forecast research report, which pointed out that China's macroeconomic data slightly exceeded expectations, and the GDP in the third quarter may show an optimistic situation. Coupled with moderately loose liquidity, the market is expected to continue its upward trend.

4. Rain and snow occurred in many parts of Northeast China, with snow accumulation reaching 40 millimeters. The transportation department activated emergency plans to ensure safe passage.

5. The Chinese-flagged bulk carrier "De Xin Hai" was hijacked by Somali pirates in the Indian Ocean, and the safety of the 25 crew members on board was threatened. The China Maritime Search and Rescue Center activated its emergency plan and coordinated international forces to participate in the rescue.

……

8. In response to the overcapacity problem in some industries, relevant national officials proposed to strengthen the approval of policies related to land, finance, and environmental protection, and guide resources toward emerging industries.

9. Chen Fashu, the richest man in Fujian, and professional manager Tang Jun announced the establishment of the Fujian Xinhua Capital Charity Foundation in Beijing, and pledged to donate shares worth 83 billion yuan, including those in Zijin Mining and Qingdao Beer.

10，创业板拟上市公司佳创视讯在2009年10月19日晚间宣布，将其持有的深城巨潮数字视讯45%股权以715.5万元转让给美投高新，该交易引发市场对其上市合规性的质疑。

After summarizing the market news, Zhang Yang glanced at it and whispered, "With the establishment of the Growth Enterprise Market (GEM) approaching, the authorities must have realized the problem of tight market liquidity. The investment limits for insurance funds and corporate bonds have been relaxed, which is a great positive."

He also noticed a short market commentary suggesting that insurance funds might increase their allocation to the real estate sector.

In 2009, the total assets of the insurance industry were approximately RMB 4 trillion. Based on the calculation that the maximum proportion of insurance funds that can be invested in real estate is 10% of the total assets, theoretically, this could bring RMB 4000 billion of incremental funds to the real estate market.

Will there be further deregulation?
No one can tell.

But the current trend is very clear: the authorities are raising funds for the secondary market to ensure the smooth listing of 28 companies on the ChiNext board.

The list of 28 companies planning to go public has been published by the Shenzhen Stock Exchange. They are…

The companies listed are: TGOOD, Shenzhou Taiyue, Lepu Medical, Nanfeng Shares, Pathfinder, Lemei Pharmaceutical, Hanwei Technology, Tianhai Defense, Anke Biotechnology, Doushen Education, Dinghan Technology, Huace Testing, Xinning Logistics, EVE Energy, Aier Eye Hospital, Beilu Pharmaceutical, Wangsu Science & Technology, Zhongyuan Huadian, Sibao Technology, Yinjiang Technology, Dayu Water Saving, Jifeng Technology, Baode Shares, Robot, Huaxing Venture, Hongri Pharmaceutical, Huayi Brothers, and Jinya Technology.

Among the 28 companies in the first batch of companies listed on the ChiNext board, two are companies with an Internet of Things (IoT) concept.

One of them is Hanwei Technology, whose main business is gas sensors, smart meters and IoT solutions. Sensor revenue accounted for 13.9% of total revenue in 2008.

In early 2009, it launched the preparatory work for the "Henan Southern Province Internet of Things Engineering Research Center", planning to build an Internet of Things industrial park and develop production safety monitoring systems based on Internet of Things technology, such as gas pipeline network inspection and non-coal mine safety supervision platform.

In addition, it invested RMB 1067.89 million in R&D in 2008, accounting for 8.4% of its revenue, and added 22 new patents. It also cooperated with the Chinese Academy of Sciences to develop new sensor technologies.

Another company is Yinjiang Technology, whose core positioning is to provide system integration and technical services in the fields of smart transportation and medical information, with smart cities as the core.

In 2008, we participated in intelligent transportation projects in cities such as Hangzhou, Beijing, and Shanghai. Our technical solutions have been initially integrated with Internet of Things (IoT) sensing technologies, such as vehicle identification and road condition monitoring.

In 2008, the company's total revenue was 5.25 million yuan, representing a year-on-year increase of 50.27%. Intelligent transportation accounted for approximately 60%, medical informatization for approximately 25%, and other smart city-related businesses for 15%.

Regarding technological research and development, Yinjiang Technology has not explicitly disclosed details online, but based on the news of establishing the Jiangsu-Zhejiang Provincial Intelligent Transportation Engineering Technology Center, it is not difficult to infer that it has undertaken a number of national-level science and technology projects.

Besides the well-known Hanwei Technology and Yinjiang Technology, there are four other "miscellaneous" companies, which are weakly related IoT companies listed on the ChiNext board.

1. Xinning Logistics mainly engages in bonded warehousing and supply chain management of electronic components. Its self-developed logistics information management system enables synchronous data exchange.

2. Wangsu Science & Technology focuses on CDN (Content Delivery Network), with a global CDN market share exceeding 10%, serving internet giants such as Tencent and Alibaba. Its related technologies are associated with the concept of the Internet of Things (IoT).

3. Robotics, mainly focusing on industrial robots and automated production lines, is a leading domestic manufacturer of industrial robots.

4. Huaxing Venture focuses on communication network optimization services, base station testing, network planning and other services. Its clients include China Mobile and China Unicom.

Although these four companies are considered "miscellaneous," they still have room for hype, and Zhang Yang has also included them in the "Internet of Things Concept Document."

Looking at other news, for example, rain and snow occurred in many parts of Northeast China, with snow accumulation reaching 40 millimeters. The transportation department activated emergency plans to ensure safe passage.

The rain and snow in Northeast China indicate that winter is approaching. As autumn transitions into winter, some cyclical stocks, such as coal and thermal power, gas and heat supply, and clothing and home appliances, may experience short-term fluctuations.

The news that the cargo ship "De Xin Hai" was hijacked by Somali pirates in the Indian Ocean will directly affect the shipping sector.

However, what truly caught Zhang Yang's attention was the news that "Jiachuang Vision transferred its 45% stake in Shenzhen Juchao Digital Vision to Meitou High-Tech for 715.5 million yuan."

Although Jiachuang Vision was not among the first batch of companies listed on the ChiNext board, there have been rumors in the market that it will be among the second, or even the third, batch of companies listed on the ChiNext board.

The timing of this transfer of equity in a core subsidiary has led the market to question whether it's a hasty divestment of potential related-party transactions or financial burdens to meet listing requirements.

What does it mean to divest potential related-party transactions or financial burdens to meet listing requirements?
To put it bluntly, it's about losing weight.

If Shenzhen Juchao has losses or asset defects, the share transfer can optimize Jiachuang Vision's financial statements and avoid affecting the listing review.

Another point is that the related party relationship of the transferee, Meitou Gaoxin, is worth considering. According to the disclosure, Meitou Gaoxin is an affiliated company of the Shenzhen Stock Exchange. As a regulatory agency, the participation of affiliated companies of the Shenzhen Stock Exchange in equity transactions of regulated entities may compromise the impartiality of regulation.

"With the launch of the ChiNext board approaching, the competition among various funds is becoming increasingly intense."

Zhang Yang muttered to himself.

After compiling the "Internet of Things Concept Document", he searched for the latest news about the iPhone 3GS, but found no new public information.

However, being a reborn individual, Zhang Yang already knew about China Unicom's exclusive sales in advance, and by using Tao Yuang as a pawn, he might be able to make another fortune from it.

……

While Zhang Yang was compiling and analyzing the news, Sun Guodong, with dark circles under his eyes, walked into the open trading office area of ​​Zexi Private Equity in Lujiazui.

Shu Yimin, who had just taken a big gulp of cola, looked at the dark circles under Sun Guodong's eyes and couldn't help but tease him, "Wow, that's pretty impressive, Brother Sun. Did you use some cheating devices last night? How did you even get these dark circles?"

"That's definitely a bit intense!"

Ma Xinqi echoed.

Both of them knew that Sun Guodong had a new girlfriend, and if the novelty wore off, staying up all night wasn't out of the question.

"Ha~"

Sun Guodong yawned, sat down in his seat, and waved his hand, saying, "Intense my ass. Last night, Brother Xiang called me and asked me to compile a list of stocks related to the iPhone 3GS. I searched all night."

"iPhone 3GS concept? Is the mastermind trying to hype it up? But I remember Asking and his team seem to have been planning this for a while."

Shu Yimin was somewhat puzzled.

The iPhone 3GS was released globally on June 19th.

After its launch, sales exceeded 100 million units in the first week. At that time, he suggested that we could take a look at this concept. However, Xu Xiang focused his energy on Rainbow Group and Shancheng Beer.

"Are we going to take on God A?"

Ma Xinqi was puzzled.

"It's not just A-God, but also those speculative investors in Shenzhen. If we're talking about who understands electronic products best, it has to be Shenzhen Capital," Shu Yimin added.

"Who knows what Brother Xiang is thinking, but judging from his tone, he seems quite anxious."

Sun Guodong added.

At this moment, Xu Xiang, who was wearing a simple gray and white polo shirt and loose black pants, and whose figure was slightly plump, walked into the open trading office area.

"Brother Xiang is here."

"You're here really early."

Good morning, Brother Xiang!

Shu Yimin greeted him.

"Good morning," Xu Xiang replied. Seeing that Sun Guodong had already arrived, he approached and asked, "How did things go, Guodong?"

"Everything is ready."

Sun Guodong plugged in the USB drive, dragged the document to the desktop and opened it, saying, "The iPhone 3GS is a 3G network phone. I heard that the network speed is very fast, and you can watch videos and play games on the phone. This will benefit the three major operators: China Mobile, China Unicom and China Telecom."

"However, most of the other concept stocks are listed in Hong Kong."

Upon hearing about Hong Kong stocks, Xu Xiang frowned and asked, "Does it include both upstream and downstream sectors?"

"Take contract manufacturers for example. I found that Foxconn manufactures the iPhone 3GS, but it is not listed in mainland China. It is only listed as Foxconn International in Hong Kong and Hon Hai Precision Industry in Taiwan."

As soon as Sun Guodong finished speaking, he continued, "There's also AAC Technologies, which is a supplier of acoustic components for the iPhone 3GS and is also listed on the Hong Kong Stock Exchange."

"Furthermore, upstream mobile phone companies like Mobi Antenna and Sunny Optical are listed on the Hong Kong Stock Exchange. As for companies listed in mainland China..."

Sun Guodong paused for half a second, then swiped the mouse and said, "Leybold Technology has already admitted to providing touch modules for Apple's iPhone 3GS and Motorola's Droid. Ultrasonic Electronics and Desay Battery are upstream companies in the domestic mobile phone parts industry, so they can barely be considered as conceptual miscellaneous companies."

Upon hearing "Leybold High-Tech," Shu Yimin immediately realized something and retorted, "Isn't Leybold High-Tech the stock we controlled a while ago? Could it be that we can pump it up a second time?"

During the period of rampant speculative trading in August, they controlled two stocks: one was Rainbow Shares, which was hyped up due to the 10 billion yuan investment in Zhangjiagang, and the other was Laibao Hi-Tech.

Founded in 1992, the company was formerly known as Shenzhen Laibao Vacuum Technology Co., Ltd., a Sino-foreign joint venture, which initially focused on the research and development of ITO conductive glass.

In 1996, Laibao Hi-Tech overcame the production technology of STN-type ITO conductive glass, becoming the first company in China to master this technology. In 2000, it underwent corporate restructuring, and in 2005, it became a domestic enterprise, clearing the way for its subsequent listing.

The reason why Xu Xiang, Sun Guodong, Ma Xinqi and others chose to hype it up is because August is the time when the interim report is disclosed. They received inside information that Laibao Hi-Tech's performance will increase significantly, especially in the second half of the year, when there will be major positive news.

Although the specific positive developments for the second half of the year are unclear, the significant increase in performance alone will allow them to stand out in the "bloody August".

"We can totally go for a second wave!"

Sun Guodong resolutely blocked the railway.

Shu Yimin, standing to the side, looked on with admiration and exclaimed, "Brother Xu is really amazing! Although we didn't manage to get any good news for the second half of the year out of him, the accuracy of his information is undeniable. He's awesome!"

Xu Haiou is a socialite of the "Lemon Wave Limit-Up Daredevils" and an insider. Because his family has a certain social status and power, it is relatively easy for him to dig up insider information about companies.

"Has Da Xu not returned yet?"

Xu Xiang glanced at it.

"return…"

Just as Ma Xinqi was about to reply, he saw Xu Haiou, also sporting dark circles under his eyes, yawning as he walked into the open-plan trading office area.

After receiving a call from Xu Xiang last night, he immediately called his good older brother and asked him to introduce him to the relevant personnel of the mobile phone network registration unit. Since there was no time to lose, a party in Shenzhen lasted until the early hours of the morning.

Finally, as Xu Haiou had hoped, he discovered a very important piece of inside information: the iPhone 3GS was only registered with China Unicom and China Mobile, and did not support China Telecom or other local operators, and the China Mobile network was only 2G.

"Speak of the devil, and he appears! Brother Xu, we were just talking about you."

Ma Xinqi greeted them.

Xu Haiou chewed his gum and asked with a faint smile, "What are you talking about me for? My handsome face? Or my muscular physique?"

"That must be a handsome face. If I were a woman, I would definitely have two children for you, Brother Xu," Shu Yimin laughed.

Xu Haiou glanced at Shu Yimin, who weighed nearly 200 pounds and was as big as a small mountain, and said unceremoniously, "Forget about it. You're going to turn into a woman. With your weight, I can't handle your big fat butt."

He has a friend who is a "plus-size enthusiast" and has lived in the United States for many years. He returned to China for some reason some time ago. Xu Haiou asked around and found out that he had a herniated disc and came back for treatment.

Why do people get herniated discs?
This is unknown.

However, one thing is certain: his hobby will probably have to come to an end.

Seeing Xu Haiou sit down, Xu Xiang asked, "Big Xu, is there any inside information about the iPhone 3GS?"

"Yes, top secret information!" Xu Haiou said mysteriously, lowering his voice.

"what news?"

What news is it?

Ma Xinqi and Sun Guodong spoke in unison.

Xu Xiang's eyes lit up, and he raised an eyebrow, asking, "What inside story?" "The iPhone 3GS's network access registration only covers China Unicom and China Mobile networks, not China Telecom or other local operators. Furthermore, China Mobile's network is only 2G. I suspect that China Unicom and Apple have reached an exclusive operating agreement."

"!!!"

"!!!"

As soon as Xu Haiou finished speaking, Xu Xiang, Ma Xinqi, Sun Guodong, and Shu Yimin all showed surprise. If China Unicom really signed an exclusive operating agreement with Apple, then there was no need to guess which company would become the leading stock!

"sure?"

Xu Xiang confirmed it again, his expression serious.

"It should be correct. Mobile phones need to be registered with the network before they can be launched on the market, and the person I found happens to be an expert in this field." Xu Haiou had barely finished speaking when he asked, "Are we planning to cut our losses now? And then rebalance our portfolio and switch to other stocks?"

It's almost 9 o'clock now, and the A-share market hasn't opened yet. Shancheng Beer has already hit the daily limit down for seven consecutive days, and it's just one more limit down away from triggering the "Serious Abnormal Stock Trading Announcement".

Xu Xiang has reached a consensus with private and public fund institutions such as Ge Weidong and Wang Yawei, and has also contacted senior executives of Shancheng Beer to try to save himself by taking advantage of the "Announcement on Serious Abnormal Stock Trading" to be released tonight.

Many retail investors may not know how to save themselves from stocks that have experienced a financial crisis, or rather, how to identify the self-rescue behavior of major players.

Suppose a stock's core hype point collapses, resulting in seven or eight consecutive limit-down days. Suddenly, it hits the limit-up price one day and then trades sideways. At this point, you need to be careful as it may be a self-rescue attempt by the major players. This is because the major players may not be consolidating their holdings, but rather gathering funds to buy at the bottom, and then dumping all their own shares to let those who want to buy at the bottom take over.

Take Shancheng Beer as an example. Its main business is beer. Before the hype surrounding the curative hepatitis B vaccine, its stock price fluctuated between 15 and 25 yuan for many years. In other words, 15 to 25 yuan was the market value of its beer business.

The current share price of Shancheng Beer is 36.13 yuan, which is clearly still 11 yuan of speculative premium. Buying at this point would easily result in being trapped.

You might think the market is going to consolidate and then surge to the second wave, but after the core hype point collapses, the major players are thinking about how to dump their shares on retail investors.

The basic logic for judging whether the main force is trying to save itself is to see if the core hype of the stock is still there. If it is, even if it hits the daily limit, even if it hits the daily limit for three consecutive days, it is highly likely that the main force is just tricking retail investors into buying in and getting them trapped.

The prerequisite for pursuing unrealized profits is that you can exit at the daily limit down price.

When Xu Haiou asked if he wanted to adjust his portfolio, Xu Xiang did not hide anything and explained his plan: "I will use my own funds to speculate, and I cannot touch the shares of Shancheng Beer for the time being."

As soon as he finished speaking, he explained, "If Shancheng Beer hits the daily limit down again today, it will trigger the 'Announcement on Serious Abnormal Stock Trading'. Ge Weidong has already spoken with Shancheng Beer and asked them to make the announcement tonight as positive as possible. We will use the beer business as a fulcrum to pull the stock price back to around 50 yuan."

"Can the beer business alone be enough?"

Sun Guodong clearly didn't think it was a good chance.

He knew very well that Shancheng Beer's stock price was worth at most 30 yuan. If it was raised to 50 yuan, he wouldn't be afraid of retail investors dumping their shares.

"In 2007, the stock price of Shancheng Beer reached 54 yuan. With a little manipulation, there were always retail investors who were not afraid of death who would take over. Moreover, the main part of the price increase came from Chaos Investment. They had a settlement date with Mr. J, so the stock price could not be too low."

Xu Xiang explained.

With over a billion yuan in "betting bonds" on his shoulders, how could Ge Weidong, the "Eastern Heretic," possibly give in obediently?

During this period, he kept persuading Shancheng Beer to submit a suspension application to the China Securities Regulatory Commission, and he also bribed several senior executives to pass the message to Chairman Huang Minggui.

Upon hearing this, Huang Minggui realized it made sense and hurriedly submitted a suspension application to the China Securities Regulatory Commission (CSRC). However, the CSRC was hesitant to approve it easily. After a joint meeting with multiple departments, the CSRC rejected Huang Minggui's application, along with his earlier application for additional share issuance.

With the suspension of trading a dead end, Ge Weidong had no choice but to cut his losses and stabilize the stock price during this period, while also managing the takeover bids. He planned to dump the shares as soon as the settlement date on the 28th passed.

“I understand, but if China Unicom is the leader in the iPhone 3GS market, do we have enough money to control this large blue-chip stock?” Sun Guodong asked again.

"Yes, China Unicom is listed on both the mainland and Hong Kong stock exchanges. Its total market capitalization is RMB 1377.78 billion in A-shares and RMB 2003.13 billion in Hong Kong stocks, which adds up to more than RMB 3380 billion. Even though the majority of the shares are held by China Unicom itself, about 30% of the shares are still circulating in the market."

Xu Haiou continued.

After receiving the information last night, he carefully checked China Unicom.

Its total A-share capital is 211.966 billion shares, and its total Hong Kong stock capital is 239.47 billion shares, totaling 451.436 billion shares.

In the A-share market, China Unicom Group controls 60% of the shares. Excluding the top ten shareholders, about 15% of the shares are traded among retail investors.

The situation in Hong Kong is relatively more complex. China Unicom Group indirectly holds shares in China Unicom Red Chip Company through its wholly-owned subsidiaries, China Unicom Group (BVI) Limited and China Netcom Group (BVI) Limited.

As of September 25, 2009, the two BVI companies held a combined 70.41% stake, with China Unicom BVI holding 40.92% and China Netcom BVI holding 29.49%, forming a concerted action relationship.

假设都只算15%，239.47亿股的15%是35.9205亿股，211.966亿股的15%是31.7949亿股，就可以得出有67.7154亿股在交易流通。

To gain a high degree of control, one needs to hold 60% of the shares. In other words, if Xu Xiang wanted to control the stock, he would need to hold 40.62924 billion shares of Huaguo Unicom, which would conservatively require an investment of 30 to 40 billion yuan.

Does Xu Xiang have 30 or 40 billion?

No!

Let alone Xu Xiang, no individual speculative investor or institution could come up with that much money.

However, now that China Unicom is confirmed to be the leader, Xu Xiang can once again join forces with other institutions to take control of China Unicom.

Meeting the questioning gazes of the crowd, Xu Xiang said in a deep voice, "If one company can't do it, then we'll get a few more to cooperate with. Maybe we can make up for all the losses of Shancheng Beer in one go."

If synthetic peptide hepatitis B vaccines can be faked, surely the iPhone 3GS can't be faked, right?

If the amount of capital invested is large enough, a 10% increase is enough to recoup losses.

It's like if you lose 1 due to a margin call, you only need to invest 10 and bet on a 10% price increase to get all your money back.

Of course.

Doing this is extremely risky.

If you lose 1, you invest 2; if you lose all 2, you invest 4. This kind of investment model is no different from gambling.

Because the size of this leading stock is so large, Xu Xiang needs to bring in some "newcomers." Zhao Danyang, the top private equity investor, is a good candidate, as is Zhang Jianping, a major speculative investor.

……

9 points.

The A-share market officially opened.

With a series of positive news, the Shanghai Composite Index opened at 3062.55, up 0.79%, while the Shenzhen Component Index opened at 12566.47, up 0.66%.

The fact that the Shanghai Composite Index led the gains indicates that heavyweight stocks were the main force behind the rise.

The China Insurance Regulatory Commission's "Notice on Regulating the Stock Investment Business of Insurance Institutions" and market commentary suggest that insurance funds are investing in real estate companies, which has led to a surge in the stock prices of real estate development companies such as Vanke A, Dalong Real Estate, Zhangjiang Hi-Tech, and Poly Real Estate.

Vanke A shares closed with a large positive candlestick yesterday, October 19th, with the stock price rising from 11.56 to 12.34, an increase of 6.84%. Today, it continued to open higher and move higher.

Not only the real estate sector, but also the banking sector has seen a long-awaited surge in activity.

Among them, ICBC opened 1.13% higher and is currently trading at 5.05 yuan. The other three major banks also saw gains of over 1%.

The continuous surge in the stock market prompted three stock market "celebrities"—Li Daxiao, Hu Xijin, and Zhou Runfa—to make statements celebrating this moment.

[Li Daxiao]: Comrades, comrades, I can already smell the faint fragrance of a bull market! Buy good stocks, be a good person, and you'll be rewarded. Follow in Teacher Daxiao's footsteps!

[Hu Xijin]: I bought in blindly at 3000 points and have already made 40%. I feel like I am the stock god of China!

[Chow Yun-fat]: All in, all in, all in is a kind of wisdom!!

With the market generally rising, A-share retail investors have completely forgotten about the liquidity crisis. They are all raising their glasses to celebrate making money, except for speculative retail investors in companies like Shancheng Beer, Tiantan Biological Products, and Guangfu Pharmaceutical.

[Sleepy Kitten]: Hahaha, I successfully bought at the bottom! Below 3000 points, there's gold everywhere. Editor-in-Chief Hu really wasn't lying!

[Nightfall]: What a pity, I borrowed too little. I only made a little over 100,000. I should have used Guodai too.

[She said it was from sun exposure]: I urgently need help finding a loan service!

[Heaven rewards diligence]: Young man, you should use spare money to invest in stocks, and it's best if you won't need that money for at least 3 years. If you borrow money to invest in stocks and the market crashes, you might easily choose to jump off a building. You're still young, think twice!

[She said it was from sun exposure]: What are you babbling about? What am I, a guy, afraid of taking out a loan? That's the fee they paid me for being a model. After all, I have no intention of paying it back, so it doesn't matter if it gets spread, hehe!

Credit funds and stock market rises have always been related.

A stock market rally, or a bull market, cannot be without the participation of credit funds, because human nature is greedy, and everyone wants to maximize their own returns.

However, bull markets are always brutal. They may last for several years, but they usually end in just a few trading days, giving retail investors no time to react.

Why are there so many more people losing money in a bull market than in a bear market?

Investors tend to be more cautious during bear markets, often holding only half or even less of their positions, so they won't lose much even if the market continues to fall.

During a bull market, every retail investor is trying to raise as much capital as possible to make a big score and achieve financial freedom.

Once this idea becomes a consensus, when the bull market ends, not only will unrealized profits be lost, but principal will also be lost, and loans may even be unpayable, potentially costing lives.

The days when the market transitions from bull to bear are when the number of people jumping off buildings reaches its peak.

While the market was generally rising, Zhang Yang had already begun to formulate the next steps in his plan to accumulate shares for Liao Guopei and Lin Guangchang.

"On the 30th of this month, 28 companies, along with companies listed on the ChiNext board, will be listed on the A-share market. We are going to speculate on the Internet of Things concept, among which there are two leading potential stocks, namely Yinjian Technology and Hanwei Technology, and four miscellaneous stocks, namely Xinning Logistics, Wangsu Science & Technology, Robot, and Huaxing Venture."

"Another leading company is Yuanwanggu, which is the absolute leader in RFID technology. Its ultra-high frequency RFID chips have reduced costs by 40% compared to imported products, accelerating the popularization of the technology."

"And Newland, the only company in China that has mastered the core decoding technology of QR codes. Its independently developed world's first QR code decoding chip was released at the end of 2008, and its reading speed and cost are superior to international competitors."

"My plan is to speculate on the Internet of Things concept together, using four dragons and four phoenixes to increase our available funds to over 50 billion RMB!"

As Zhang Yang finished speaking, Lin Guangchang asked somewhat uncertainly, "Four dragons and four phoenixes, which means we're simultaneously speculating on four leading stocks and four miscellaneous stocks?"

Is this funding sufficient?

Liao Guopei felt somewhat ashamed.

He didn't expect Zhang Yang's ambition to grow so quickly. With his own funds exceeding 20 billion, he dared to go all in on the entire concept sector.

Could it be that he was influenced by Chow Yun-fat?
Is all-in betting really a sign of wisdom?

"20 billion might not be enough, but someone will send us money," Zhang Yang said with a faint smile.

Short selling is not allowed in mainland China, and there are no avenues for it; the only option is to arrange securities lending privately.

Hong Kong Island is different; almost every institution, including securities firms, offers short-selling services, and the process is very well-established.

If Xu Xiang was fooled, or if funds were fooled, Zhang Yang could have gone to Hong Kong Island to short China Unicom's stock price when it was at its peak.

Why did Zhang Yang know that Xu Xiang, or rather, why would the funds that hyped up the iPhone 3GS choose China Unicom?
The reason is simple: institutional investors are not novice retail investors. Retail investors value "cheap" and like to look for low-priced, speculative stocks, while institutional investors and speculative funds look for the most recognized leading stocks in the market to speculate on.

Institutional investors also have an informational advantage and can certainly know before individual investors that China Unicom and Apple have signed an exclusive operating agreement.

With an exclusive operating agreement in place, there's basically no need to question who the leading stock in the iPhone 3GS concept is.

However, they didn't expect that even though they had chosen the right business leader and the product was good, it just wouldn't "adapt to local conditions."

Liao Guopei and Lin Guangchang thought Zhang Yang was referring to Ge Weidong's loan of coupons, and they laughed and replied.

"I almost forgot, we still have funds from Chaos Investment that haven't been cashed out yet."

"Shancheng Beer's stock price has hit the daily limit down again, at 32.52 yuan. Based on our anchor price of 62.43 yuan, they will lose 29.9 yuan per share. For 3000 million shares, that's a floating profit of 8.97 million yuan."

Seeing that Lin Guangchang had calculated things so clearly, Zhang Yang smiled faintly and poured cold water on him, saying, "Ge Weidong will not sit idly by and wait for death. They will definitely take measures to save themselves. It is meaningless to calculate the current profit."

He had barely finished speaking when he changed the subject again, saying, "I have other ways to make money."

"What way?"

"Are there other ways to make money?"

Liao Guopei and Lin Guangchang were puzzled.

They currently only have 100.38 shares of Tiantan Biological Products left, and because of the price drop, they can't sell them at all. What other ways can they make money?

Suddenly, Liao Guopei seemed to remember something and tentatively asked, "Going fishing again?"

"No!" Zhang Yang opened the intraday chart of China Unicom and said with a faint smile, "This time we are seriously shorting, and we are shorting large-cap blue chips!"

(End of this chapter)