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

Chapter 254 A-share market rally, government funds trend intervention
At 2 a.m. in Shanghai, the world seemed to be muted, with only a few vehicles passing by on the streets and almost no pedestrians in sight.

At 3 a.m. in Shanghai, people queuing to buy the iPhone 3GS began to feel sleepy. Some fell into a deep sleep in sleeping bags or tents, while others passed the time with entertainment such as chess and cards.

At 4 a.m. in Shanghai, sanitation workers began to appear on the streets, sweeping away the traces left by yesterday with the rustling of their brooms.

At 5 a.m. in Shanghai, the rich second-generation, who have been living a life of extravagance and debauchery every night, drive home in their top-of-the-line luxury cars with their chosen "prey".

At 6 a.m. in Shanghai, the breakfast stall owners start their work, and the steam from the exhaust fans carries the aroma of food.

At 7 a.m. in Shanghai, office workers are woken up by their alarm clocks and greet the "new day" with sleepy eyes.

A city's 24 hours are like the four seasons of a year, each season and each hour has its own unique color.

Because of their different schedules, some people may never meet in their entire lives, even if they live in the same city.

As 8 a.m. approached, long queues formed at Apple stores and China Unicom service centers in Lujiazui, stretching for hundreds of meters. This scene was also posted online, echoing the news reports from the previous night.

All of a sudden.

Numerous netizens have left their comments.

[Fried Rice with Eggs]: My goodness, they really queued all night. The temperature in Shanghai wasn't high last night. Didn't they freeze?

[Donkey pulling horse cart]: Shanghai is not considered cold in the south, but in our Northeast China Unicom business hall, people line up in the early morning, in temperatures close to -10 degrees Celsius. I wonder if they've gotten any hard yet.

[Low-key is my true nature]: The iPhone 3GS is so popular. I just passed by the store on my way to work, and there were people queuing up everywhere. Will China Unicom's stock price go crazy?

[Unwitting]: I invested in China Unicom's stock two years ago. Thank goodness, I'm finally about to see the results, hahaha.

[A Letter of Advice Against Expelling Foreign Guests]: Two years ago? 2007? Pfft, looks like another long-term investor caught up in the subprime crisis!

At this moment, on the internet, whether it's Weibo, Baidu Tieba, Mop Forum, or Tianya Forum, there are one or more popular posts and topics about the iPhone 3GS.

On financial websites, Eastmoney went even further with its headline about the iPhone 3GS, summarizing it with the phrase "First day of release, streets deserted."

What does "everyone's streets are deserted" mean?
This doesn't refer to an alley that can hold ten thousand people but is completely empty. Rather, it describes a scene where everyone gathers together, causing the streets and alleys to become deserted. It describes a grand gathering or a novel thing that attracts everyone to the scene.

Chinese mobile phone brands have never seen such a buying frenzy before.

The reporter is reporting.

Netizens are watching the drama unfold.

Users are snapping up the items.

Alongside trending topics related to the iPhone 3GS, there was also the news of 28 companies listing on the ChiNext board.

With 28 companies going public at once, many experts and retail investors are wondering if so many companies listing on the same day will drain the market's liquidity.
Even Li Daxiao, the most optimistic and steadfast bullish strategist, couldn't resist getting up early to record a video to remind retail investors.

October 30th was a bright and beautiful morning. Today marked the official listing of 28 companies on the ChiNext board and the launch of the iPhone 3GS in mainland China, a double celebration.

Mr. Da Xiao is a very calm person. Given the current trading volume, I believe the market may experience slight fluctuations. This is because the 28 companies need funds for trading, and the hype surrounding the iPhone 3GS concept also requires capital. I hope my followers can approach these fluctuations rationally, invest prudently, buy good stocks, and remember that good deeds bring good rewards. Let's win this battle to defend the 3000-point mark! Today is still a bullish day!
According to Li Daxiao, the opening of the A-share market today is not optimistic. There are too many places that need money, and with the trading volume of the A-share market, it is not certain that it can be steadily supported.

However, retail investors' funds cannot sustain the demand, and Huijin and China Securities Finance Corporation may take action.

From the above perspective, they certainly want the A-share market to operate stably and continuously provide funds to listed companies.

Therefore, Li Daxiao believes that whether the market falls on the 30th depends not on the attitude of retail investors, but on the strength of the government's efforts to support the market.

Besides Li Daxiao, experts such as Yang Delong, Liu Jipeng, and Lu Qiyuan all echoed the sentiment, warning retail investors to be aware of volatility risks.

Anyone with a formal finance background has surely heard the saying, "Stock trading is not about speed, but about slow and steady wins the race."

What does this sentence mean?
If you want to make quick money, you can only choose short-term trading.

Short-term trading is essentially a zero-sum game with major funds and quantitative programs. Although quantitative trading programs were not yet deployed in the A-share market in 2009, institutions and speculative funds alone were enough to exploit retail investors at will.

As for slow-moving stocks, it means smoothing out fluctuations by extending the cycle, shifting the key to success from short-term luck to corporate value growth, thus avoiding a "zero-sum game" with major players.

To put it simply, it means buying value blue-chip stocks, investing in sectors with future growth potential, and letting time bridge the information gap.

……

At 9:00 AM sharp, the FTSE China A50 futures index listed in Singapore began to fluctuate, reflecting a very pessimistic attitude from foreign investors. The K-line plummeted, with a drop of 0.64%.

This level of decline has stunned retail investors who were trying to defend the 3000-point level.

[She said it was from sun exposure]: Damn it, the FTSE China A50 futures index has plummeted, and foreign investors have collectively fled!

[Tiaoqi is a bit aggressive]: 28 companies went public at once. If I were a foreign investor, I would also run away. There is too much uncertainty.

[I will definitely marry Liu Yifei in this lifetime]: I'm doomed this time. I just went all in yesterday. Am I going to suffer a huge loss today?
[No Regrets in Life]: Remember to turn off the lights; eating noodles with the lights on is soulless.

Although the A-share market has not yet opened, a sense of panic has already permeated the air.

Investors who won IPO subscriptions and hold shares in 28 newly listed companies are now waiting for the A-share market to open, eager to sell and realize their profits.

When market panic spread, the traders at Huijin and China Securities Finance Corporation were on high alert, and all funds were in place.

At this time, the leaders of China Securities Finance Corporation and Central Huijin Investment Ltd. were issuing final instructions.

[China Securities Finance Corporation Leader]: We have ample funds and sufficient ammunition. We must take the 3000-point mark today and stabilize it to ensure the smooth listing of 28 companies on the ChiNext board. Do you understand?
[Huijin Leader]: The task assigned from above is very simple: ensure the smooth listing of 28 companies on the ChiNext board. If 500 billion is not enough, then 500 billion; if 1000 billion is not enough, then 100 billion. We must achieve a positive result today, no matter what. Can we do that?
"Listen clearly!"

"can do it!"

The traders from Huijin and Zhengjin said in unison that although they were not in the same place, their goals were the same.

To determine whether government funds will intervene to support the market, one cannot focus on the interests of retail investors, but rather needs to consider the bigger picture.

For example, when the A-share index fell from 6000 points to 1600 points in 2007, countless retail investors were hoping for the intervention of market rescue funds. However, the reality was cruel. Against the backdrop of the subprime mortgage crisis, the A-share index could not be protected at all. The rash intervention of national funds could only leave retail investors holding the bag.

It wasn't until Lehman Brothers went bankrupt, the global economy had bottomed out, and the market reached its lowest point that government bailout funds began to gradually come into play.

Every investment has a purpose. Understanding their goals and expectations is essential to making profits in the secondary market with ease.

The listing of 28 companies on the ChiNext board has not only put the leaders of Central Huijin and China Securities Finance Corporation on high alert, but has also attracted the attention of the leaders of the China Securities Regulatory Commission, the People's Bank of China, and the two major stock exchanges.

……

at the same time.

Zhangjiang, Changtai Plaza.

Trading area on the 7th floor of Building A.

Zhang Yang, Lin Guangchang, Zeng Lingshan, Feng Weiqiang, and Chen Xiaoqun are also on high alert, with 2.496 million yuan in available funds. Liao Guopei, on the other hand, has fled to Sanya.

"Later, we'll sell all the shares we've subscribed to at once, and then observe the strength of the buy-in during the opening auction for China Unicom. If it's strong, each of us will sell 5000 million shares, and then buy them all back near the close of trading in the afternoon to drive up the stock price."

Zhang Yang reiterated the trading strategy.

The "Zhangjiang Gang" subscribed to all 28 listed companies' IPOs, winning allocations for 18 of them. Their total investment in all shares was 670 million yuan. Assuming none of the shares were sold at their issue price, and based on a minimum return of 30%, they could have earned at least 201 million yuan in premium income.

As for selling China Unicom shares when the market is strong, this is not self-inflicted damage, but rather a strategy similar to "taking advantage of strengths to compensate for weaknesses".

When buying pressure is strong, cashing out funds to push up the closing price often yields good results.

"got it."

Lin Guangchang was the first to respond.

Following closely behind, Feng Weiqiang, Zeng Lingshan, and Chen Xiaoqun also responded in succession.

"Good boss!"

"Received. Sell when the buying pressure is strong, buy when the buying pressure is weak. Brilliant!"

"I'm ready!"

At 9:15 a.m., Huaguo Unicom's stock price immediately hit the daily limit, currently trading at 7.41 yuan.

"Holy crap, it hit the daily limit?!"

"Is that really the case, bro!"

"It hit the daily limit, but it didn't fully reach the limit. Don't forget, this is a time for deception."

While Zeng Lingshan and Feng Weiqiang exclaimed in surprise, Chen Xiaoqun dismissed it, believing it to be a prank by other funds.

“If a deal isn’t closed within 15 to 20 minutes, it’s definitely a fraudulent timeframe. Stay calm,” Lin Guangchang replied.

Just then, Zeng Lingshan, who had switched to the intraday chart of Shenzhou Taiyue, exclaimed, "Shenzhou Taiyue has doubled, bro! There shouldn't be that much fraud in the opening auction of new stocks, right?"

"Double?"

Feng Weiqiang also opened the intraday chart of Shenzhou Taiyue and immediately swallowed hard, saying, "It seems we hold 1 shares. At the current price of 134 yuan, wouldn't that mean a profit of 76 yuan per share, making 76 yuan in one go?"

"Huayi Brothers is even more outrageous. The subscription price was 28.58 yuan, and now it's 70 yuan. No wonder people say that subscribing to new shares is like winning the lottery."

Chen Xiaoqun couldn't help but sigh.

If they can hold the price until the market opens, they can easily earn over 100% return with just a few clicks. Why are so many people so keen on subscribing to IPOs?
That's the reason!

Retail investors who don't participate in IPOs might work hard for a year but still not earn as much in a single day as retail investors who successfully participate in IPOs.

"Take a look at Jinya Technology. Its subscription price was 11.3 yuan, and now it's already 30 yuan," Lin Guangchang reminded him.

The main reason he embarked on the path of stock trading was because he had won a lottery for shares.

When Lin Guangchang discovered that he could earn half a year's salary with just one contract, he knew that he couldn't get rich by working; he needed some windfall.

"Damn it, it's true!"

"There shouldn't be any stocks that have fallen below their issue price, right?"

"No stocks fell below their issue price; all stocks surged!"

"My God, if I could win the IPO lottery every day, I would be willing to live in a villa, drive luxury cars, and spend my life with a rich and beautiful woman!"

"Eat and take, right?"

"Haha, it's just a simple thing!"

Listening to Chen Xiaoqun, Feng Weiqiang, and Zeng Lingshan's reflections, Zhang Yang smiled and said, "This is the importance of initial capital accumulation. As long as you have capital, money will come to you from all directions in an endless stream."

The importance of initial capital accumulation is most directly reflected in the maximum amount that can be subscribed.

According to the IPO rules of the Shanghai Stock Exchange and Shenzhen Stock Exchange, for every 5000 yuan of A-shares held in Shanghai or Shenzhen stock markets, one can subscribe to 500 new shares in the corresponding market. If the value is less than 5000 yuan, it will be calculated as 0 yuan. If the value is less than 1 yuan, one cannot participate in the online subscription of new shares.

It's worth noting that the market value of your holdings isn't calculated based on the full amount you bought on the previous trading day; rather, it's calculated as the average of 22 trading days.

For example, if you held 0 shares in the first 21 trading days, but suddenly bought 20 yuan worth of stocks on the 22nd trading day, your average daily stock holding value would be approximately 9090.91 yuan, which is lower than the 1 yuan daily average requirement, and therefore you are not eligible to participate in online IPO subscriptions.

Without initial capital, you can't even meet the threshold for subscribing to new shares.

"Understood, boss. We need to work hard to save money." Zeng Lingshan said thoughtfully.

"Having a large principal is great. You can easily earn hundreds of thousands or even millions just by participating in IPOs," Feng Weiqiang chimed in.

“My dad said that money will flow to those who don’t lack money, and he was right.” Chen Xiaoqun recalled Chen Bangde’s teachings and vaguely understood the meaning of those words.

"Alright, focus on China Unicom's stock performance. The buying support is good today. Sell some shares, but don't sell them off."

Zhang Yang reminded him again.

It is now 9:20 AM, the time for non-cancellable orders. The price increase of China Unicom has slowed down, and the current price is 7.12 yuan, an increase of 5.64%.

Although it fell by 4.36%, the strength of China Unicom's stock price has far exceeded everyone's expectations.

……

Lujiazui, Shanghai World Financial Center.

Chaotic Investment Floor.

Ge Weidong was still wearing a red suit, paired with custom-made gold trousers and gold leather shoes, and his overall appearance was somewhat unbearable to look at.

At this point, he was a little confused and muttered to himself, "The iPhone 3GS is clearly going to sell out, as has been proven in the European, American, Japanese and Korean markets. Mr. J knows that China Unicom is the exclusive distributor of the Chinese version of the iPhone 3GS, so why would he bet against it by shorting it?"

Can't figure it out.

He really couldn't figure it out.

Ge Weidong even suspected that Mr. J, who was hiding behind the scenes, had lost his mind and could make such a stupid decision.

The reason why Shancheng Beer lost was that they did not consider the effectiveness of the synthetic peptide hepatitis B vaccine, and they were unaware that they were copying a failed product, which ultimately led to losses.

However, the iPhone 3GS, which was launched in June, has already undergone testing in multiple markets, which is a different situation from the synthetic peptide hepatitis B vaccine.

Short selling with a betting mechanism?

This is practically giving away money!
After much thought, Ge Weidong finally found a suitable reason: "Shanghai is indeed a place where all rivers converge. With the help of the Golden Toad at the estuary, even Mr. J can only make a fool of himself!"

Things that cannot be explained by common sense should be left to metaphysics to solve.

After suffering losses recently, Ge Weidong not only had his parents rebuild their ancestral graves, but he also spent a few days paying respects at the estuary of the Huangpu River.

So far, the results are good.

Unlike the superstitious Ge Weidong, Xu Xiang on the other side was a staunch materialist. He believed that "Mr. J" was simply delusional and acted like a drunkard who thought he was the Jade Emperor after drinking two kilograms of beer.

Upon seeing China Unicom's exorbitant premium, Xu Xiang burst out laughing, saying, "You tried to steal a chicken but ended up losing the rice instead. Mr. J, you've finally met your match!"

"With such a high premium, can't we try to lower it?" Sun Guodong asked, puzzled.

According to the terms of the betting agreement mentioned by Xu Xiang, today's closing price is the anchor price, and for the bulls, the lower the better.

"Yes, we should contact Zhao Danyang. He must have acquired quite a few bargaining chips."

Shu Yimin made the suggestion.

“Wang Yawei, a manager at a public fund, will be obedient if you give him a few million. Zhao Danyang is a private fund manager. If you hire him, you might end up being ripped off.”

Xu Xiang waved his hand in refusal.

“In my opinion, there’s no need to force a sell-off with borrowed shares. After all, the iPhone 3GS is selling so well now, it’s not impossible for China Unicom’s stock price to return to its 2007 high. Mr. J is doomed to lose,” Xu Haiou said, offering his solution.

"Brother Xu is right. Now that the chips from Shancheng Beer are being cashed out one after another, as long as we invest in maintaining the sentiment within the ticket pool, Mr. J will definitely have to pay up his underwear, haha."

Ma Xinqi laughed loudly.

“He’s too cunning. I suspect that their shopping spree yesterday was to hedge their profits, perhaps because they realized their strategy had failed.” Xu Xiang began to try to justify Mr. J’s behavior.

In his view, if hedging with chips and contracts is used, the losses can be offset, which can be considered a case of better late than never.

"Hedge? Well, Mr. J can't do that either, but at least he's saved his pants," Shu Yimin said with a smile.

"By the way, Brother Xiang, you just said that Fuchun Road is the Shadowless Kick, and you even have screenshots of transaction records as evidence. So when are we going to send him to the execution platform?" Ma Xinqi asked.

When he heard the topic shift to "Fuchun Road," Shu Yimin gritted his teeth and said, "That damned Shadowless Kick! I never thought that old bastard would have a new investment scheme. He must be exposed!"

"If the timelines match, Wuyingjiao is indeed the most similar to the speculative capital from Fuchun Road, because his trading techniques are also very skilled," Sun Guodong stated.

“No rush, let’s wait a bit longer.” Xu Xiang shook his head and explained, “We can’t be sure yet that Wuyingjiao is Fuchun Road. After all, they are part of the same organization. I’ll go to Hongyue Investment this weekend or next week to have someone verify who it is.”

Sun Yiheng himself admitted that "Fuchun Road" was Liu Hua's front man. Since it was a front man, it must have left clues in Hongyue Investment, which would be the next breakthrough.

But Xu Xiang isn't in a hurry to investigate right now; to be precise, he doesn't have time, because he has several dinner engagements this weekend, one of which involves the listing date of Huaguo CNR.

In 2009, China South Locomotive & Rolling Stock Corporation (CNR) and China North Locomotive & Rolling Stock Corporation (CNR) formed a duopoly in the domestic rail transit equipment market, together holding more than 95% of the market share. The two companies directly competed in areas such as high-speed rail, locomotives, and urban rail vehicles. For example, CNR had an advantage in the technology of high-speed trains with speeds of 350 km/h and above, while CNR had a larger scale in maintenance and modification business.

Huaguo CNR completed its A+H share listing in August 2008, but Huaguo CNR is still in the pre-listing stage.

Since China South Locomotive & Rolling Stock Corporation (CNR) has been listed on the stock exchange and has received substantial market funding to support its development, it has already gained a slight edge over China North Locomotive & Rolling Stock Corporation (CNR).

Furthermore, the country is currently vigorously promoting the "4 trillion yuan investment plan," with railway infrastructure becoming a key area. The listing of CNR is imminent. If we could know its specific listing time, we could easily speculate on the concept of "miscellaneous stocks."

……

When China Unicom performed exceptionally well, the four major banks were equally resilient, with gains exceeding 2%. In addition, the securities sector, led by Huaxin Securities, also performed admirably, with gains exceeding 1%.

Large-cap stocks in sectors such as banking, securities, coal, and power all rose, and even liquor stocks saw an increase, making it a clear broad-based rally.

As 9:25 approached, both major indices opened sharply higher, with the Shanghai Composite Index opening at 3007.25 and the Shenzhen Component Index opening at 12427.1, representing increases of 1.58% and 1.92% respectively.

The sudden gap down of 3000 points caught all retail investors off guard.

[Rampaging Warrior]: No, the market opened at 3000 points? Is that really that exaggerated?

[Time Loves Youth]: I can already feel that mysterious power; it's strong, fierce, and absolutely awesome!!
[Give me a Gatling gun]: I bet right, haha! I knew the national team would step in to protect the market and ensure the establishment of the ChiNext board. I immediately sold my shares. Just call me a stock market god!

[A Misunderstood Recollection]: I regret it so much. Who said there was a shortage of liquidity? I should have bet on government funds coming in.

The establishment of the Growth Enterprise Market (GEM) and the collective listing of 28 companies are such important events that, from the perspective of national funds, it is clear that their involvement today is unavoidable.

If no intervention is taken, and a systemic decline occurs in A-shares, the Shanghai Composite Index may plunge to 2500 points, which is not impossible.

Unlike investors who fought to defend the 3000-point mark, those who successfully subscribed to new shares showed polarized sentiments.

[Big Shrimp Shows No Mercy]: Sellers, holy crap, how can the stock price still go up? New stocks should be falling!
[Wang Bujian Wang]: Hongri Pharmaceutical is at 140 yuan, but the subscription price was only 60 yuan, and it opened at 97. I thought it was quite high, but I didn't expect...

[Lord of Shabak]: Not a single one of the 28 companies listed on the ChiNext board has fallen below its issue price. That's amazing, truly unbeatable!

Just as retail investors have pointed out, none of the 28 companies listed on the ChiNext board have experienced a drop below their issue price. The two leading companies and four leading companies in the Internet of Things sector selected by Zhang Yang have all seen gains of over 100%.

For example, Hanwei Technology's subscription price was 27 yuan, and its stock price has now reached 69 yuan, an increase of 155.56%.

While the two major indices surged, with the Shanghai Composite Index breaking through 3000 points and all 28 ChiNext companies experiencing a collective surge of over 100%, Zeng Lingshan, Feng Weiqiang, Chen Xiaoqun, Lin Guangchang, and Zhang Yang were methodically reducing their holdings in Huaguo Unicom to ensure sufficient funds for their operations.

(End of this chapter)