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

Chapter 255: Mr. J goes all in on China Unicom, using the China Securities Regulatory Commission to suppress prices?
None of the 28 ChiNext-listed stocks fell below their issue price, which is good news for retail investors, as the average increase is 80%. However, for the "Zhangjiang gang" who want to accumulate shares, this is not a good buying opportunity.

Trading stocks requires not only judging the direction correctly, but also finding a good entry point.

Take the internet as an example. Between 1994 and 1999, American internet companies achieved initial profits by driving traffic through in-app advertising, which amplified the market's hype about the "internet concept." A large amount of leveraged funds bet on this industry. When the bubble accumulated to a large enough size, some funds would deliberately burst it.

Why deliberately puncture it?

Actually, this puncture wasn't caused by someone deliberately sabotaging the market. Rather, it was because all the funds that had gone long had already entered the market, including leveraged funds. They couldn't step on either side anymore, so the price fell, leaving the last investors to buy in to pay the price.

Value investing exists in the stock market, but it is mostly a zero-sum game, meaning that the last person to buy in loses everything.

Looking back from 2009, the internet concept was definitely a promising area for investment, a sector where you could go all in. It could not only generate profits through advertising, but also develop e-commerce, online games, and many other profitable avenues.

But what if the all-in bet happened in 1999, just before the dot-com bubble burst?
Even if the direction is correct, if the timing is wrong, you will still lose everything in the end.

Currently, six stocks—Yinjiang Technology, Hanwei Technology, Xinning Logistics, Wangsu Science & Technology, Robot, and Huaxing Venture—have all seen gains exceeding 100%, clearly driven by market sentiment. Zhang Yang decisively abandoned his initial investment on the first day, concentrating his funds to stabilize the gains of Huaguo Unicom.

At 10:30 a.m., the market index came under pressure, and China Unicom followed suit and fell. Zhang Yang decisively intervened with 250 million yuan of China Unicom shares, stabilizing the decline. As the market index subsequently rallied, buying support for China Unicom emerged again. Zhang Yang then decisively instructed Lin Guangchang and the "three little ones" to sell 250 million yuan of China Unicom shares, performing a large-scale T+0 operation. After deducting transaction fees, they made a profit of over 4 million yuan.

At 1 p.m., the market fluctuated again. Zhang Yang followed the same strategy, buying when the market was weak and selling when the market was strong.

Due to the T+1 trading rule, and the fact that 250 million RMB worth of chips were sold off before 10:00 AM during the opening auction, there are currently 750 million RMB worth of chips locked up outside, while the "Zhangjiang gang" has 500 million RMB worth of chips locked up.

The more shares locked up, the less capital is needed to drive up the price.

By 2:30 p.m., the "Zhangjiang gang" had cleared out all their ChiNext stocks. Currently, they have 5.266 million yuan in available funds and still hold shares in China Unicom, Yuanwanggu, and Newland.

Among them, China Unicom holds 1.9404 million shares, with a holding cost of 6.52 yuan per share, and a total cost of 12.6514 billion yuan.

Newland holds 1793.47 million shares at a cost price of 14.65 yuan per share, for a total cost of 2.6274 million yuan.

Yuanwanggu holds 1206 million shares at a cost price of 21.34 yuan per share, for a total cost of 2.5736 million yuan.

The current prices of the three stocks are as follows: Huaguo Unicom 7.06 yuan, Newland 15 yuan, and Yuanwanggu 22.3 yuan.

Based on cost price, China Unicom earned 0.54 yuan per share, with a floating profit of 1.047816 million yuan; Newland earned 0.35 yuan per share, with a floating profit of 627.71 million yuan; and Yuanwanggu earned 0.96 yuan per share, with a floating profit of 1157.76 million yuan.

This means that the "Zhangjiang Gang" currently holds stocks worth a total of RMB 19.078692 billion, plus RMB 5.266 million in available funds, for a total of RMB 24.344692 billion in assets.

It is also worth mentioning that this amount of 24.344692 billion yuan does not include the 2 million yuan betting guarantee. If it is included, the total assets of the "Zhangjiang gang" have reached 26.344692 billion yuan, just one step away from 30 billion yuan.

With 5 million yuan in hand, Zhang Yang kept a close eye on the market like a cheetah.

Starting at 2:30 p.m., he could clearly sense that safe-haven funds and profit-taking funds were withdrawing, wanting to cash out their gains.

October 30th was not only the last trading day of October 2009, but it was also a Friday, a day when safe-haven funds typically flee.

Why is it said that there is a fixed escape route?
With the stock market closed on Saturdays and Sundays, there is uncertainty regarding policies and negative news, leading some conservative funds to choose a defensive approach and hold cash over the weekend.

Without strong guidance or a clear theme for speculation, Friday afternoon's trading will likely see a sharp drop or deep plunge.

The Industrial and Commercial Bank of China (ICBC), which had surged to 5.12 yuan, has now fallen back to 5.07 yuan, a drop of 1% from a 2.42% increase. Although this is not a large drop, it has dragged down the index.

It wasn't just the Industrial and Commercial Bank of China (ICBC); the Agricultural Bank of China (ABC), China Merchants Bank (CBB), and China Construction Bank (CCB) also experienced varying degrees of decline, with drops of about one-third. While not fatal, these drops did affect overall market sentiment.

Seeing that Huaguo Unicom's stock price was about to be dragged down by the overall market, Zhang Yang's eyes sharpened as he scanned the market and directed the overall situation: "Xiaoqun, Tuixue, and Xiaoyu, the three of you break down small and medium orders, and keep buying Huaguo Unicom with the amount not exceeding 60. Yangjia, you place a 5000 million order every 5 minutes. We're going all in on Huaguo Unicom."

"All in?"

Lin Guangchang paused for half a second and asked, "Aren't you going to buy those six stocks on the ChiNext board?"

"Plans can't keep up with changes. The gains of those six stocks on the ChiNext board have seriously deviated from their actual value. We'll wait for the second major upward wave."

Zhang Yang answered by speaking faster.

With an average increase of 100% and no substantial positive news, these stocks will likely give back at least half of their gains once the tide recedes.

The direction of your purchase is important, but the timing of your entry is equally crucial.

Zeng Lingshan: "Okay, boss."

Feng Weiqiang: "Go all in!"

Chen Xiaoqun: "I've already bought it."

While the "three little ones" responded, Lin Guangchang hesitated for only a moment before throwing out his first 5000 million yuan order.

[Stock Anomaly Alert]: A super buy order of 5000 million yuan appeared in China Unicom.

The stock price, which had been steadily declining to 6.96 yuan, has rebounded to above 7 yuan.

The retail investors watching from the sidelines were all stunned by what they saw and exclaimed in amazement.

[Pooping requires straining]: Is China Unicom really that powerful? Every time it seems like it's about to plummet, funds come in to prop it up.

[If you're a true brother, come and trade stocks]: The Chinese version of the iPhone 3GS is selling well, does that mean we can really do whatever we want?

[Red High Heels]: Sorry, but if sales are good, you can really do whatever you want. This isn't just about phone sales, but also user growth. China Mobile and China Telecom must be having sleepless nights.

[The Four Horsemen of the National Highway]: Damn, the 7 yuan China Unicom phone plan is too tempting, I can't resist, can someone wake me up?
[Memories of First Love]: Is it possible that China Unicom will soar to new heights and return to the 13.5 yuan level of 2007?
What exactly is stock trading?
Future prospects!

With the frenzy surrounding the Chinese version of the iPhone 3GS, coupled with the 3000 yuan prepaid phone credit and the potential for a significant increase in users, China Unicom has considerable room for growth.

It wasn't just retail investors; even some institutional managers who weren't colluding with Xu Xiang, Ge Weidong, and Wang Yawei started allocating funds to Huaguo Unicom, all believing that this stock was profitable.

7.04 yuan.

7.09 yuan.

7.12 yuan.

China Unicom's stock price is slowly rising.

Seeing this, Ge Weidong frowned, his palms sweating slightly. He muttered to himself, "Why is it still going up? Just how much money does this mysterious poker organization have?"

at the same time.

Xu Xiang of Zexi Private Equity was also frowning.

He hadn't expected the mysterious poker organization to have funds to pump up the final rounds; he estimated the total investment to be three or four billion.

However, Xu Xiang was not flustered. With the Chinese version of the iPhone 3GS being so popular, he couldn't think of any reason for the price to drop.

After all, the iPhone 3GS is sold as a contract phone. Not only do you have to pay for it, but you also have to prepay for phone credit and sign up for a China Unicom phone plan. This combination of features could bring a lot of customers to China Unicom, and the potential for increased sales is huge.

Meanwhile, Zhao Danyang, who was far away in Shenzhen, saw China Unicom's stock price continue to rise and the iPhone 3GS sold out. He immediately decided to buy shares at the end of the trading day.

……

The A-share market closed at 3 p.m.

When the two major indices settled, China Unicom's stock price also settled at 7.25 Chinese yuan, an increase of 7.57%.

The Shanghai Composite Index and the Shenzhen Component Index both rose and then fell back. The Shanghai Composite Index reached a high of 3027.13 points, but closed at 2995.85 points, up 1.2%, with a trading volume of RMB 1174 billion.

The Shenzhen Component Index reached a high of 12491.72 but closed at 12297.16, a gain of 0.85%. However, it is worth mentioning that since the ChiNext board belongs to the Shenzhen Stock Exchange, its trading volume soared to 996 billion yuan, an increase of more than 200 billion yuan.

Retail investors are lamenting that the 3000-point mark could not be held.

[Insightful 30 Minutes]: It's a pity that the final drop was too fast, and the funds couldn't keep up, so the 3000-point mark couldn't be held.

[Love is two words]: The sell-off at the end of the trading day was too ruthless. Banks, coal, and automobiles were all being dumped in turn. Damn it, I should have run away too.

[Questioning the God of Slaughter]: The 3000-point mark couldn't even be held. I don't know where it will go next week. The China Securities Regulatory Commission should really arrest those who dumped the market and lock them up for a year. Then our stock market can return to 6000 points.

[Three Days and Three Nights Tumbler]: Arrest those who dumped the market? Then let alone 6000 points, even 6 points wouldn't be a problem. There's no selling, only buying, so the index can only rise.

The failure to hold the 3000-point mark has intensified discussions among retail investors.

Li Daxiao, who was far away at Yingda Securities, slapped his thigh and said, "Oh dear, how come we couldn't even hold on? 3000 points is the dividing line between bull and bear markets. There is no bull market below 3000 points. We still need to be more cautious in our operations."

"but!"

Suddenly, he fell into deep thought: "What kind of ox should next week be?"

As a professional cattle herder, he does not allow duplicate cattle names.

After racking his brains for five minutes, Li Daxiao slapped his thigh again and said, "The market is fluctuating around 3000 points. Next week will be called a 'flipping bull market'."

After saying that, he quickly wrote it down, planning to use it to record a video on the weekend.

Meanwhile, on the other side, in the trading area on the 7th floor of the Changtai Building A, Zhang Yang glanced at the comments from retail investors and then lectured: "The main reason for the Shanghai Composite Index's late-day plunge was the outflow of safe-haven funds. If nothing unexpected happens, the Shanghai Composite Index will experience brief pressure in the morning session next week. This is because the sentiment in the ChiNext market will subside over the weekend, and 28 stocks are likely to fall. The funds that were sold off on Friday will only be bought back at relatively low prices. If the market opens higher, it will likely plunge because there will be insufficient buying support."

“Ultimately, it all comes down to emotions,” Chen Xiaoqun added.

“Before, when I traded stocks, I looked at performance, future development potential, and financial situation. I had never systematically studied it. Now that I’ve joined the group and followed the leader, I’ve finally woken up from my dream.” Feng Weiqiang couldn’t help but sigh repeatedly.

“Yes, it was like waking from a dream, a sudden realization,” Zeng Lingshan echoed.

In their previous trading, they relied entirely on their trading talent and had no idea that emotions could create premiums or that consensus could create value.

The importance of learning lies in enhancing self-awareness. Only by understanding one's strengths can one become aware of one's weaknesses and ultimately make corrections.

"It's almost the weekend, so let's study sentiment and consensus carefully, as this is the key to market control."

Zhang Yang reminded him.

Since Zeng Lingshan, Feng Weiqiang, and Chen Xiaoqun are all relatively young and may not have the ability to handle unexpected events, Zhang Yang simply contacted a three-star hotel near Changtai for a long-term rental.

A suite with three rooms costs 699 yuan per day. Since the lease was for six months, the final price was 499 yuan per day, totaling 8.982 yuan. It also includes daily breakfast, as well as a gym, swimming pool, and restaurant, which is sufficient to meet their living needs.

As for profit sharing, Zeng Lingshan, Feng Weiqiang, and Chen Xiaoqun are all in the learning stage and do not participate in profit sharing. However, since they have also contributed their efforts, Zhang Yang, Liao Guopei, and Lin Guangchang will cover all their daily expenses.

"Okay boss."

"I understand, I'll study it when I get back." "Once I fully grasp emotions and consensus, I should be able to take it a step further."

Zeng Lingshan, Feng Weiqiang, and Chen Xiaoqun responded one after another, saying that in just a few days of getting to know each other, they could clearly feel that their trading and market control skills had improved by leaps and bounds.

Before long, he will definitely be able to stand on his own and become a harvester for retail investors.

"Okay, I'm going back to my office on the 6th floor. I'll also organize the transaction documents. Call me if you need anything," Zhang Yang said, standing up.

"Hey Joker, when are you going to Hong Kong Island?" Lin Guangchang suddenly asked.

He hadn't forgotten that Zhang Yang had said he was going to Hong Kong Island to short China Unicom, and that he had even gone back to his hometown a few days ago to apply for a Hong Kong and Macau travel permit.

"Next Monday, or maybe we'll head to Hong Kong Island this weekend. Why don't you come with me?" Zhang Yang invited.

He didn't intend to show his face, but decided to follow the same method, having Liao Guopei appear and then talk to the organization remotely by phone.

During this period, he also learned about the short-selling mechanism of Hong Kong stocks, which is basically the same as that of US stocks. You can directly find a brokerage to short sell.

Unlike securities firms in mainland China, securities firms in Hong Kong offer a wide variety of services, including various derivative contracts.

In addition, Hong Kong stocks have a daily disclosure mechanism, which shows the top ten buyers and sellers, somewhat similar to the Dragon and Tiger List in A-shares.

The list of brokers who bought China Unicom shares on the previous trading day is as follows:

1. HSBC Bank, Hong Kong Island.

2. Morgan Stanley Hong Kong Island Securities.

3. BNP Paribas.

4. Goldman Sachs Asia Securities.

5. Standard Chartered Bank (Hong Kong Island)

……

8. Citibank.

9. Soros Fund Management (Hong Kong Island Limited).

10. Deutsche Bank.

It is easy to see from the list of brokers that the main participants in Hong Kong stocks are well-known international institutions.

In addition to their own arbitrage purchases, they also provide services to other foreign retail investors.

When Lin Guangchang saw that Zhang Yang had invited him to Hong Kong Island, he asked in return, "We're all going to Hong Kong Island, so we're leaving the three of them here?"

He looked at Zeng Lingshan, Feng Weiqiang, and Chen Xiaoqun.

"They're enough here. Buying stocks might require some skill, but selling stocks is just a matter of doing what we say," Zhang Yang said with a faint smile.

"That's true."

Lin Guangchang nodded slightly.

They sell stocks with speed in mind, pressing the nuclear button when the market has the strongest support, and dumping their shares on retail investors to take over.

However, since China Unicom is a large-cap stock, Zhang Yang did not want to dump it on September 924th. Instead, he planned to gradually exit the market, leaving some face and room for all parties involved.

"Don't worry, boss and Yangjia-ge, we know what to do with stocks and stuff."

"That's right, we have discipline."

"We will stay at base camp."

Zeng Lingshan, Feng Weiqiang, and Chen Xiaoqun all spoke up, signaling to Zhang Yang, Lin Guangchang, and Liao Guopei to go ahead and short sell.

"Next Monday or Sunday, I think it's about time. If you come, we can go together. The demand for the iPhone 3GS won't last long."

Zhang Yang added.

Don't be fooled by the current hot sales of the iPhone 3GS. In a few days, it will basically reveal its true colors and be abandoned by the market.

“Okay, I’ll go back and pack. I happen to have a Hong Kong and Macau travel permit.” Lin Guangchang also wanted to see the international financial stage.

It's often said that the A-share market is a place to fleece retail investors, but in reality, the methods used outside the A-share market to fleece retail investors are so ruthless that they'll make retail investors question their existence.

Stocks that plummet by 99.99% in a single day are not uncommon in the US and Hong Kong stock markets; more than a dozen such cases occurred during the subprime mortgage crisis.

The reason why there are few retail investors in the US stock market is largely because they have been exploited and are afraid to participate in the stock market. In other words, they simply hand over their money to institutions to speculate.

This is why retail investors generally account for a small percentage of the stock market, whether it's the US stock market, the Hong Kong stock market, the Japanese stock market, or other stock markets.

……

After meeting with Lin Guangchang, Zhang Yang returned to his office on the 6th floor of Building A in Changtai to organize the details of today's transaction.

5.266 million yuan of Chinese currency was used to buy all 7458.92 million shares of China Unicom at an average cost of 7.06 yuan.

With 7458.92 million shares added to the original 1.9404 million shares, the total holding is 2.686292 million shares, and the cost price of the holding has risen to 6.67 yuan per share.

As of the closing bell on October 30, the "Zhangjiang Gang" held 2.686292 million shares of Huaguo Unicom at a cost of 6.67 yuan per share, 1793.47 million shares of Newland at a cost of 14.65 yuan per share, and 1206 million shares of Yuanwanggu at a cost of 21.34 yuan per share.

After organizing his holdings, Zhang Yang sent the data to the "Zhangjiang Gang" QQ group.

Although Liao Guopei, Lin Guangchang, and the newly arrived Zeng Lingshan, Feng Weiqiang, and Chen Xiaoqun all trusted Zhang Yang immensely, he still chose public scrutiny. Only by keeping the accounts clear could he gain the support of the people.

"Cough-cough-"

A notification sound from QQ on my computer went off.

[Zen City Shadowless Kick]: All in?

Upon seeing the message, Zhang Yang quickly typed on the keyboard and replied, "Go all in. When the Hong Kong stock market closes at 4 o'clock, call lawyer Lin Qi and have him confirm the anchor price."

[Zen City Shadowless Kick]: OK.

The securities lending agreement is not only anchored to A-shares, but also to China Unicom in Hong Kong.

After informing Liao Guopei, Zhang Yang opened the financial research website and took a look at the technical aspects of the market. The 5-day moving average had formed a golden cross with the 10-day moving average, but it had not yet risen above the 5-day and 10-day moving averages. Only the upper shadow touched the 5-day and 10-day moving averages.

Furthermore, the MACD shows extremely low volume in the red bars, the DIFF line and DEA line are converging, and the candlestick pattern is a doji, all of which are warnings that the A-share market is about to change direction.

"From the perspective of analysis above, they definitely hope that the ChiNext market will operate smoothly. After all, it is benchmarked against the Nasdaq in the United States and is likely to go up. We'll see if there will be any substantial positive news to drive it over the weekend."

Zhang Yang muttered to himself.

While making his analysis, he shared the relevant content on the Joker Speculative Funds Channel, but only speculated from a technical perspective, omitting the content of speculating on the stock market from the above angle.

Not a moment.

The page views exceeded 5.

[Aisuo Guilin Rice Noodles]: Joker and I actually have the same idea. Today, the A-share market formed a doji star, and the MACD lines are converging, definitely a turning point.

[Guest from Xixiakou]: The KDJ indicator is trending upwards, and with blue-chip stocks gaining momentum, I feel there's a high probability of it going up.

[Just waiting for your return]: MACD, KDJ, and volume-price relationships are all irrelevant. Just go all in and be done with it. At worst, you can just play dead.

[Fighting is so awesome]: What are you pretending to be dead for? When I was trapped in 2007, I couldn't eat or sleep properly. I was thinking about getting out of the trap and running away every day.

While retail investors were buzzing with discussion, the list of top traders was quietly released.

Since China Unicom's total deviation from the daily price fluctuation limit reached 20% over three consecutive trading days, it was rightfully selected for the list of top gainers and losers, given that it is a large-cap stock.

Buyer: Galaxy Securities Changcheng Huimin Road Branch.

Buying from the third brokerage: Huaxin Securities Hangzhou Yan'an Road Branch.

Buying from the 3th brokerage: Guangfa Securities Shanghai Central Ring Road Branch.

Buying from the second brokerage: Jiangsu-Zhejiang Huaxin Securities Fuchun Road Branch.

Buying 5: Guotai Junan Hudu Sujiang Road Branch.

-

Selling 1th branch: Jiangsu-Zhejiang Huaxin Securities Fuchun Road Branch.

Selling 2th branch: Galaxy Securities Changcheng Huimin Road Branch.

Selling 3nd branch: Guangfa Securities Shanghai Central Ring Road Branch.

Selling 4nd branch: Huaxin Securities Hangzhou Yan'an Road Branch.

Selling 5th Branch: Guotai Junan Hudu Sujiang Road Branch.

The buying brokerage firms were the same, only in different order. All the institutional seats from the previous trading day had disappeared, which immediately attracted the attention of retail investors.

[Big Cannon]: What's going on? Where are the institutional investors? They didn't dump shares?
[Super Lollipop]: What's going on with these five speculative trading seats? Have they taken control of China Unicom? Are they that arrogant?
[Summer Date]: Fuchun Road is really fierce. I wonder if they have changed their management. In just half a year, they went from being unknown to becoming the strongest new generation of speculative investors. That's really impressive.

[Jianghu Xiaosan]: Everyone curses Fuchun Road, but everyone wants to be like Fuchun Road. Apart from being a bit of a beast, Fuchun Road's trading methods and directional judgment are truly unparalleled.

Looking at the top-ranked stocks on the China Unicom stock exchange, retail investors couldn't help but sigh.

Xu Xiang looked at the same speculative trading seats where the buying and selling were all being done, and muttered to himself, "Is this day trading? But isn't he afraid of attracting the CSRC's iron fist by trading like this?"

Generally speaking, when they control the market, they will try to avoid large-scale T+0 trading in the same seat, because if ten seats are the same, it will undoubtedly make the China Securities Regulatory Commission (CSRC) look bad, as if to say: This stock is controlled by us speculative funds!
"Something's not right!" Xu Xiang suddenly stood up, his face grim. "Something's not right! Damn it, is Mr. J deliberately trying to attract regulatory scrutiny and use regulations to suppress the stock price?!"

(End of this chapter)