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

Chapter 246 Hongfa's jealousy led to the leak of secrets, and Xu Xiang set a trap for Asking.
As the streetlights came on, piercing the twilight, the rustling of the evening breeze through the treetops gradually became clearer, replacing the daytime hustle and bustle.

When Bao Xingwei returned to Yanjing, he did not rest at all. After saying goodbye to Chen Bangde, he went straight to Lin Yifei, who was still at his workplace, and explained Zhang Yang's situation to him.

After understanding what had happened, Lin Yifei also sensed the hidden meaning in Bao Xingwei's words, so he continued, "So the mastermind behind it all, Mr. J, is Zhang Yang. In that case, it was all a misunderstanding. Since it's a game between domestic investors, let them decide the winner themselves, haha."

If it's a domestic investment game, regardless of who wins or loses in the end, the money stays in the country.

But foreign capital is different. Once they profit and leave, the money will flow from China to other countries, causing wealth outflow.

This is why the State Financial Regulatory Commission took such a big step after finding that "Mr. J's" IP address was located overseas.

Seeing that the other party had put a way out, Bao Xingwei also took the opportunity to say, "Yes, the matter is clear. If Zhang Yang really colluded with foreign capital to profit, you can handle it yourselves and don't need to ask me."

"Old Bao is still as impartial and incorruptible as ever."

Lin Yifei smiled obsequiously.

He wasn't a naive young man, and he understood that the sentence had two layers of meaning.

They can profit by colluding with foreign capital and handle it themselves, but what about profiting from domestic capital's game of strategy?
Ok…

This is intriguing.

Seeing that the other person understood the meaning of his words, Bao Xingwei glanced out the window and asked again, "It's almost lunchtime. Have you eaten yet?"

"I just finished eating around 6 o'clock and I'm at work," Lin Yifei answered truthfully.

"Okay, you go ahead and get busy. Come over to my place this weekend if you have time," Bao Xingwei invited.

"I will definitely come."

Lin Yifei responded with a smile.

After explaining the situation, Bao Xingwei didn't linger and left the State Financial Regulatory Commission with Cheng Hongfa.

He could also see that Lin Yifei was hesitant to act because he was concerned about saving face. But now he had drawn a line: as long as Zhang Yang crossed the line, he could be arrested and interrogated without any questioning.

As Cheng Hongfa drove the borrowed company car back to the courtyard house with Bao Xingwei, he couldn't help but complain, "Zhang Yang is still too young and doesn't know his place. He's made you, Mr. Bao, run around for him for so long these past few days."

While speaking, he didn't forget to observe Bao Xingwei's facial expression through the rearview mirror.

Sitting in the back seat, Bao Xingwei didn't respond, his gaze fixed on the bustling traffic outside the window.

He wasn't stupid; he had long sensed that Cheng Hongfa harbored some hostility towards Zhang Yang, and the main reason for this hostility was most likely the quota for the financial think tank.

In 1997, Wall Street capital firms such as Quantum Fund, Tiger Fund, and Morgan Stanley, which had been laying the groundwork for many years, suddenly launched a systematic attack on the Hong Kong financial market.

They first established massive short positions in the Hang Seng Index futures market in advance, then used the offshore market to borrow Hong Kong dollars and accumulate a large number of short positions. They then sold Hong Kong dollars, forcing the Hong Kong Monetary Authority to raise interest rates and triggering panic in the stock market.

Julian Robertson's Tiger Fund simultaneously shorted Hong Kong blue-chip stocks, directly suppressing the Hang Seng Index, and increased its short positions in the futures market, forming a coordinated attack across the foreign exchange, stock, and futures markets with the Quantum Fund.

At the time, Tiger Global Management managed assets of US$200 billion, and its actions had a strong guiding effect on the sentiment of the Hong Kong financial market.

In addition to the Quantum Fund and Tiger Fund working together, dozens of hedge funds, including Jaguar Fund and Long-Term Capital Management, as well as Wall Street investment banks such as Goldman Sachs and Morgan Stanley, are participating by borrowing Hong Kong dollars, shorting stocks, and trading derivatives.

They took advantage of the high liquidity and open environment of the Hong Kong stock market at the time to build a huge speculative network.

Just when they thought they only needed to wait

When the stock market crashed, the People's Bank of China sent a working group, or financial think tank, to Hong Kong Island and granted it extremely high authority to rescue the market.

In the spring of 1998, Bao Xingwei took the lead in proposing an aggressive strategy to rescue the market with foreign exchange reserves, which was quickly recognized by other members of the think tank such as Xiong Xinghuai and Peng Ge. On August 14, 1998, Hong Kong broke with its tradition of "active non-intervention" and used its own foreign exchange reserves to rescue the market.

With over US$2000 billion in potentially available foreign exchange reserves, Hong Kong was effectively deterred from speculative capital, forcing Wall Street investors to hastily sell at a loss and flee the island.

This battle brought fame to members of the financial think tank, including Bao Xingwei, Xiong Xinghuai, and Peng Ge, and garnered them numerous honors. However, they also realized that Wall Street capital would definitely make a comeback, and they had to be prepared and select promising talents for their financial think tank.

In 1999, Bao Xingwei visited the Central University of Finance and Economics and gave a speech. Cheng Hongfa, who was studying for a master's degree at the time, caught his attention as a student representative to ask questions.

In 2000, Cheng Hongfa, who had just graduated, was transferred to Bao Xingwei's side as an assistant secretary. At the same time, Bao Xingwei also wanted to see if he had the potential to enter the think tank.

Unfortunately, after three years of observation, Cheng Hongfa's thinking was too rigid and he was not good at making flexible decisions, which failed to meet Bao Xingwei's expectations. The latter could only continue to look for a replacement.

Although Cheng Hongfa did not meet Bao Xingwei's expectations, he would be a good talent if placed in Central Huijin, China Securities Finance Corporation, China Securities Regulatory Commission, or even the Hong Kong Monetary Authority. Bao Xingwei also intended to have him work in these organizations.

However, Cheng Hongfa still wanted to try, and repeatedly stayed by Bao Xingwei's side to work under the pretext of taking care of Bao Xingwei.

However, with the sudden appearance of Zhang Yang and He Jing, things gradually developed beyond Cheng Hongfa's expectations.

If it were just He Jing, he wouldn't be worried. It's not that he looks down on women, but He Jing's investment strategy is too conservative and overlaps with his investment style. Cheng Hongfa believes that if he had to choose between him and He Jing, Bao Xingwei would definitely choose him.

Zhang Yang is different, especially after it was discovered that he was Fu Chunlu and Mr. J. His talent was not only terrifyingly high, but his methods of reaping rewards were also exceptionally "cruel".

With an initial investment of 800 yuan, the investment increased 125 million times in just six months.

But that wasn't all. He also ran a financial website, which not only received a 5000 million yuan investment from Alibaba, but also acquired Baidu Finance, entering the top tier of financial websites.

With investments and entrepreneurship both flourishing in just six months, and at only 22 years old, how could Cheng Hongfa not be anxious?
Seeing that Bao Xingwei did not respond for a long time, Cheng Hongfa said half-jokingly, "He made 10 billion yuan in half a year. Now that his capital has increased, Zhang Yang's money-making speed will greatly increase. I just don't know if he will control blue-chip stocks. If he really controls blue-chip stocks, that kid Zhang Yang will really make all the money."

Controlling blue-chip stocks is an extremely risky endeavor, as it involves index fluctuations.

Controlling small and mid-cap stocks means that even if they hit the daily limit up or down, it doesn't matter; it won't have much impact on the overall market index.

Cheng Hongfa was clearly reminding Bao Xingwei that Zhang Yang's ambition to make profits might become increasingly inflated due to the surge in his capital.

“He’ll know what he’s doing,” Bao Xingwei said, then closed his eyes.

After learning that Zhang Yang had achieved a return of 125 million times in just six months, he recognized his potential.

But at the same time, Bao Xingwei also knew that he could not ask Zhang Yang to give up everything he had and join the financial think tank.

Therefore, he plans to focus on He Jing in the future, because he has also realized that the two have some kind of close relationship. Since it is difficult to persuade Zhang Yang to join the financial think tank, he will indirectly make him serve the financial think tank.

As for Cheng Hongfa, Bao Xingwei maintained his original view and suggested that he go to Central Huijin, China Securities Finance Corporation, China Securities Regulatory Commission, or Hong Kong Monetary Authority.

Upon hearing the words "he will know what he's doing," Cheng Hongfa's eyes were practically overflowing with jealousy. The thought that he hadn't been able to obtain the pass in nine years, yet Zhang Yang had repeatedly "disdained" it, made him feel like his life had been negated.

"hateful!"

Cheng Hongfa gripped the steering wheel tightly, veins bulging, and he roared inwardly, "This is all mine, you son of a bitch Zhang Yang!"

After a brief outburst, he suddenly remembered something, and a fierce glint flashed in his eyes.

After the vehicle returned to the vicinity of their courtyard house, Bao Xingwei and Cheng Hongfa went to a restaurant they frequented for dinner. Perhaps because they had been too tired these past few days, after a simple meal, Bao Xingwei went straight to bed to rest.

Cheng Hongfa returned to his room, quickly turned on his computer, and, in a flamboyant manner, impersonated "Mr. J" to edit an email for Ge Weidong.

[Fuchun Road is a place of ostentation, and so is Mr. J; he is the mastermind behind the downfall of Jiachen Biotechnology.]
"Snapped--"

The email has been sent.

He was truly at his wit's end. If Zhang Yang continued to develop in this way, his dream of joining the financial think tank would only vanish.

After sending the email to Ge Weidong, he also sent it to Xu Xiang, both of whom were known to have conflicts of interest with Zhang Yang.

However, Cheng Hongfa overlooked one point: Zhang Yang used email to contact executives of listed companies such as Qiao Lechen, Bing Yaojie, and He Jiani because it was a basic corporate email communication method.

Although both Ge Weidong and Xu Xiang have publicly available email addresses, they rarely check them because most of the emails are spam.

Just like a celebrity's personal email address, once leaked, all sorts of love confession emails and pornographic harassment emails will follow.

At this time, Cheng Hongfa was unaware that his imitation technique had made a mistake, and he was just like Bao Xingwei's impression of him: rigid and dull.

……

And at the same time.

the other side.

The Peninsula Hotel in Shanghai.

Since the Peninsula Hotel officially opened to the public on October 18, its guest traffic has reached its peak capacity, requiring reservations for check-in or dining.

Inside the magnificent, gold-plated VIP box, Xu Xiang was explaining his plan: "Besides Zhao Danyang, Ding Ying, and Chen Guangming, I have also notified Asking. If he really is Mr. A from the mysterious poker organization, the stock prices of iPhone 3GS concept stocks may fluctuate tomorrow."

"You notified Asking just to test whether he is Mr. A?" Ge Weidong asked, frowning.

Inside the private room, the "victim managers" of Shancheng Beer gathered again; it was this violent exploitation that brought them together.

Wang Yawei recalled the scene from that morning and interjected, "By the way, Bao Xingwei came to China Asset Management this morning, and his goal was very clear: to find He Jing. After the two chatted behind closed doors for a while, Bao Xingwei didn't seem to stay long before leaving China Asset Management."

"I remember someone in the industry saying that Bao Xingwei had been recuperating in Beijing, so why did he suddenly return to Shanghai?" Chang Shishan asked, puzzled.

"Is it possible that they're looking for Zhang Yang?" Chen Shan chimed in.

“Possibly. Zhang Yang is a prime suspect.” Chang Shishan nodded, then returned to the initial question: “By the way, Xu Xiang, what are you thinking? Did you tell Asking just to test his identity?”

"No!"

Xu Xiang shook his head and whispered, "Testing their identities is only one aspect; the most crucial thing is to know their attitude and bargaining chips."

"Um... I don't quite understand."

He Zhen didn't quite understand and couldn't figure out how to find out the attitude and chips of the mysterious poker organization through Qiu Baoyu.

Xu Xiang glanced at him and then patiently explained, "Asking and Jintian Road started laying out their plans for the iPhone 3GS concept back in June, accumulating a large number of shares in related stocks, including Sunny Optical, Foxconn, and AAC Technologies."

"Let's say they're all members of a mysterious poker organization. Now, through the Asking line, we let them know that China Unicom is the exclusive distributor of the iPhone 3GS. Following the principle of leading stocks, they will most likely adjust their portfolios, causing other iPhone 3GS concept stocks to fall."

"If they don't adjust their portfolios and Huaguo Unicom doesn't show any significant upward movement, either they don't have many Huaguo Unicom shares, or they just want to follow the trend, which is good for us."

Upon hearing this, Ge Weidong continued, "So, you want to use Asking to probe the mysterious poker organization's holdings in China Unicom?"

"That's the idea. Invest in the best stocks, not the worst. China Unicom is definitely the leader; we'll see how its stock price performs tomorrow."

Xu Xiang nodded.

"What if China Unicom's stock price surges tomorrow? Should we chase the high?" Chang Shishan asked again.

"Chase!"

Without hesitation, Xu Xiang continued, “If China Unicom’s stock price surges tomorrow, we’ll first look at the trading volume to determine whether the other party is aggressively accumulating shares or raising our entry cost. In short, if we can become the leading stock together with the mysterious poker organization, the iPhone 3GS concept will be enough to make us all rich.”

The world of martial arts isn't just about fighting and killing; it's about human relationships and social interactions. Although the mysterious poker organization had taken advantage of them, considering that the other party had already established a strong position in June, Xu Xiang wanted to turn hostility into friendship.

"What if the stock price falls or remains flat?"

Chang Shishan continued to press for answers.

"That makes things easier. We can just focus on accumulating shares. The other side probably didn't expect that China Unicom and Apple would sign an exclusive agreement, and the concept stocks they bought are all junk," Xu Xiang said with a smile.

Shancheng Beer lost because the synthetic peptide hepatitis B vaccine was fake. This time, the iPhone 3GS is so popular in overseas markets that it's sold out. Surely they can finally have a big meal now, right?
The product is fine.

The leader was the right choice.

Xu Xiang refused to believe that he couldn't make back all his principal and interest this time.

Not only Xu Xiang, but also Ge ​​Weidong, Wang Yawei and others, including Zhao Danyang in Shenzhen, Shen Yufan of Yitian Road, and Wall Street capital based in Hong Kong Island, all believe that China Unicom will have a big run in the next month.

Of course.

What they need to do now is accumulate shares.

These blue-chip stocks are difficult for retail investors to spot unless they aggressively accumulate shares, given their massive size.

Asking Qiu Baoyu, far away in Fucheng, could never have imagined that he treated Xu Xiang as a "cooperative brother," while Xu Xiang used him as bait.

……

The next day, March 22th.

On the evening of the 21st, two pieces of negative news began to emerge.

The first item is that the China Securities Regulatory Commission announced that it would transfer some financing approval authority to the National Development and Reform Commission, including matters such as additional share issuance, private placement and bond issuance. This power adjustment has triggered market concerns about the uncertainty of the pace of stock market financing.

The second point is that regulators released signals of real estate control measures, and the China Banking Regulatory Commission simultaneously released signals of controlling local government financing platform loans, further exacerbating market concerns about the real estate industry's cash flow.

The two negative news items had the most direct impact on the real estate sector. After the market opened at 9:30, leading stocks such as Vanke A and Gemdale Group led the decline. Vanke A fell 1.23% at the opening and is currently trading at 12.37 yuan.

The decline in both major indices has reignited the debate over defending the 3000-point level.

[Sunny Days]: Damn it, the battle to defend 3000 points has started again. How many times has it happened in the past two months?

[The most painful memories]: It's at 3043 points, brothers, hold on to 3000 points! If we can't hold it, then I'll come and buy the dip, haha!

[Clock in reverse direction]: Is there gold everywhere below 3000 points? You can tell at a glance that this is Hu Xijin's personal disciple.

[Lonely Wild Boar]: Record volume indicates record price, but now the volume is decreasing and the price is falling. A correction might be coming. Comrades, be careful!
Since the "bloody August" plunge to 2600 points, the A-share market has launched countless battles to defend and fight for the 3000-point mark, and has also experienced countless drops below expectations.

Such extreme market volatility is a favorite among technical traders, but a living hell for those who prefer a more relaxed approach.

Technical traders love trading and try to lower their cost basis by swing trading. However, they may also fail to make the right swing trades and increase their cost basis. But compared to more passive investors, technical traders are more likely to break even or make a profit.

Upon seeing that the market was about to fall to 3000 points again, Hu Xijin immediately declared, "Here it comes! The 3000-point mark that I love most! I can already see the golden glow."

On the other side, Chow Yun-fat, after making a fortune of 20 RMB, was also gearing up, waiting for the A-shares to fall to 3000 points before going all in to buy the dip!
Unlike the two "outsiders," Li Daxiao calmly analyzed the situation and released a video.

[Comrades, with 28 companies planning IPOs approaching, market funds seem to be insufficient. Coupled with the poor performance of the real estate sector, the short-term index is under pressure, but the long-term outlook remains bullish. Retail investors who have bought good stocks don't need to worry; you are right. Let's give a thumbs up to the "Right Bull Market"! Do the right thing, buy the right stocks, be the right people. Go, Right Bull Market!!]
The phrase "correct bull" generated millions of views, and many retail investors listened to Li Daxiao's explanation and rushed to find the "correct stocks" to invest in.

Shancheng Beer, which was not approved by Li Daxiao, has achieved two consecutive limit-up days and is currently priced at 39.34 yuan.

By this time, the individual investors of Shancheng Beer had changed. These new individual investors had begun to look forward to driving luxury cars, living in mansions, and embracing beautiful women as they reached the pinnacle of life.

[Old Monk Doesn't Cheate]: This is awesome! I successfully bought the dip in Chongqing Beer. The second wave of the market has started. I'm going to make 1000 million!
[Wishing for a Rich Woman's Heart]: Personally, I think the synthetic peptide hepatitis B vaccine was a scheme orchestrated by capital, just like the drugs that cure diabetes.

[Don't Understand the Darkness of Night]: I don't care if capital is setting up a scheme or not. Anyway, my cost is 33 yuan, and I have a profit margin of about two board days. If you have the guts, crush me, hahaha!

[The Wind Will Tell You the Answer]: Fu Haitang, the Northern Beggar, once said that one should invest heavily and aggressively, add to positions when profits are made, and trade frequently. I believed him, and now my account has more than 200 million. Just call me the stock god.

The more volatile the market, the more active retail investors become – this is a law of the stock market.

However, today's market was lackluster and very flat. After touching 3045.03 points, it rebounded and finally closed at 3051.41 points. It was a typical case of being unable to fall or rise, stuck in this range.

However, on October 23, the following day, A-shares experienced an "epic" surge.

The Shanghai Composite Index opened higher and continued to rise, closing at 3107.85 points, a gain of 1.85%. The Shenzhen Component Index also surged 1.73%, closing at 12843.21 points. Trading volume in both markets increased significantly, once again exceeding 2700 billion yuan.

The reason for the surge is quite simple: the China Banking Regulatory Commission (CBRC) issued the "Notice on the Capital Supplement Mechanism for Commercial Banks," which adjusted the rules for deducting subordinated debt and the capital adequacy ratio requirements for banks.

The new regulations adopt the principle of "grandfathering," meaning that subordinated bonds issued before July 1, 2009, will not be retroactively adjusted, and hybrid capital bonds will be removed from the capital instrument restrictions, significantly alleviating the pressure on banks to replenish capital.

The positive news for the banking sector naturally led to a surge in its price.

Friday's "closing rally" not only excited retail investors, but also prompted two students to make a life-changing decision.

In a county town in Chenzhou, southern Hunan, Zeng Lingshan first asked an acquaintance to deliver a letter to his mother after school on Friday. Then he went to the station to buy a ticket to the provincial capital, planning to transfer to Shanghai.

Because his father's business failed and he died unexpectedly from a brain hemorrhage, Zeng Lingshan's family was burdened with more than 70 yuan in debt, most of which were debts to relatives that they could not evade. All that Zeng's father left behind was a stock account with 9000 yuan.

He seemed to have a talent for trading, often skipping school to trade stocks in internet cafes, turning 9000 yuan into 3 yuan.

He had no other choice. After receiving the invitation from "Zen City Shadowless Kick," he decided to give it a try, since there were very few opportunities to defy fate.

Unlike Zeng Lingshan's all-or-nothing approach, Feng Weiqiang, a finance major at East China University of Science and Technology, immediately contacted his parents after receiving the invitation to "support his family by trading stocks."

Mr. Feng was a ruthless man. Upon hearing that a big investor with hundreds of millions of yuan was going to take his child out to play, he immediately applied for a leave of absence from school.

Zeng Lingshan and Feng Weiqiang are unsure of their future, but if they could have access to speculative capital, they might be able to defy fate.

Unlike Liao Guopei and Lin Guangchang, who stayed in Shanghai, Zhang Yang took some time to return to his hometown in eastern Guangdong to apply for a Hong Kong and Macau travel permit in advance.

Because the "Exit and Entry Administration Law of the People's Republic of China" implemented in 1986 stipulates that Chinese citizens who need to leave the country for private reasons must apply to the municipal or county public security organ where their household registration is located.

The Passport Law, which came into effect in 2007, continues this principle, requiring that applications for ordinary passports and travel permits to Hong Kong and Macao must be submitted in the applicant's place of household registration.

(End of this chapter)