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

Chapter 267 China Unicom attempts self-rescue, Haitong Foods suffers a surprise attack.

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

The Shanghai Composite Index rebounded in the afternoon, closing at 3175.59 points, up 0.36%, with a trading volume of 1587 billion yuan, a decrease of 222 billion yuan compared to November 6.

The Shenzhen Component Index fluctuated throughout the day due to excessive volatility in the 28 ChiNext-listed companies, but ultimately closed up 0.38% at 13036.3, with a trading volume of RMB 967 billion.

It is worth mentioning that since the listing of 28 companies on the ChiNext board on October 30, the trading volume of the Shenzhen Component Index has increased significantly, with an increase of about 10-20 billion yuan, returning to the level of July.

Why is the increase so significant?
In addition to the 28 companies listed on the ChiNext board, four new stocks were added to the Shenzhen Stock Exchange: Western Construction, Meiyingsen, Yanghe Brewery, and Nanguo Real Estate.

None of the four stocks fell below their issue price. Western Construction, which was listed on November 6, had an issue price of 15 yuan and closed at 30.81 yuan on its first day of trading, representing a gain of 105.4%. The other three stocks all had a premium of at least 30%.

The extremely high returns from IPOs have transformed the trading mindset of retail investors in the A-share market. Some large investors are now simply buying blue-chip stocks with low volatility to qualify for IPO subscriptions, and then focusing on subscribing to new shares.

In the next 10 days, three new stocks will be listed on the A-share market, two on the Shenzhen Stock Exchange's SME board and one on the Shanghai Stock Exchange's main board.

The two stocks listed on the SME board are Zhongke Yunwang and Beixin Road & Bridge, which raised RMB 9.45 million and RMB 4.08 million respectively. China Merchants Securities, listed on the main board, raised a total of RMB 111.15 billion.

Since the resumption of IPOs in July, corporate listings have gradually become normalized, and there are subtle signs of an acceleration.

The accelerated pace of corporate IPOs has directly impacted the concept of "shell companies."

After the IPOs were suspended due to the subprime mortgage crisis in 2008, the "shell" of listed companies became a scarce resource. Just by selling the shell of an A-share company, a company could make a profit of more than 10 billion yuan.

What now?
Shells gradually lose their scarcity.

In this environment, the profit margins of the seller will be squeezed.

After finishing his work on Caiyan.com, it was already 3:30 pm. While reviewing the day's events in his office, Zhang Yang also keenly noticed that corporate IPOs were accelerating recently.

He opened the listing calendar, glanced at it, and analyzed in his mind: "Three more companies will be listed in the next 10 days, making it seven in less than half a month. The number of listed companies in November is basically confirmed to be more than ten. This will undoubtedly force the shell companies to compromise and let the Five Tigers make some trouble."

Thinking of this, Zhang Yang opened the desktop QQ, found the "Zhangjiang Gang" chat group, and typed: "Brothers, in addition to continuously trading the six Internet of Things stocks, you can pay attention to the shell resource concept in the next period of time, such as Haitong Foods, which we did last time."

"Snapped--"

Send a message with a simple Enter key press.

Not a moment.

Chen Xiaoqun was the first to reply.

[Chen Xiaoqun]: What's the explanation for the concept of shell companies?

[Little Crocodile]: There have been a lot of IPOs lately, will shell companies gradually become worthless? What's the logic behind this transaction? Boss, please explain.

[Dropped out of school to trade stocks]: I've been following Haitong Foods. Ever since it was hyped up last time, it's been fluctuating around 10 yuan. It feels like there's some kind of consolidation by a major player.

Lin Guangchang, who was driving home, heard his phone keep beeping and picked it up from the center console to check it.

After glancing at the message, he decisively found a parking space on the side of the road and typed a reply: "Haitong Foods is controlled by A-god. Since we cleared our inventory in early September, we have been consolidating for more than two months. I don't know how much their cost price has dropped."

Zhang Yang, Lin Guangchang, and Liao Guopei cleared out most of Haitong Foods' inventory on September 3rd, and now it's November, a full two months have passed.

In two months, Haitong Foods did not experience a sharp drop, but instead fell from a high of 14 yuan to 10 yuan, a drop of 28.57%, and then fluctuated.

Many retail investors want to catch the second wave of the market, but they keep buying at the top. The root cause is that they don't know how to judge whether there is a breakout, nor do they know whether the sideways consolidation is distribution or consolidation.

The simplest way to determine if a price has broken down is to use the highest price and calculate the stock price drop of 30%. If it breaks down, be wary that the major players may have already withdrawn.

Why 30%?

Most retail investors' averaging-down line is a drop of 5% to 10%. A 30% drop usually means that the retail investor has averaged down at least 3 times, which is the range where they have used up all their "ammunition". Any further drop will only benefit new retail investors.

The main players consolidated during a 30% drop, which not only wore down the patience of trapped funds but also reduced their own holding costs and prevented new funds from entering at excessively low prices.

Of course.

It's not that the market will stop rising if it falls below 30%.

Nothing is absolute, but once the 30% support level is broken, unless there is a major positive development, it will be difficult to see a second wave of price movement in the short term.

When Zhang Yang saw Lin Guangchang's message, he didn't reply. Instead, he tagged Feng Weiqiang and typed: "@Little Crocodile, you need to learn to think in reverse. It's because shell resources will gradually become less valuable that companies that want to sell their shells can no longer raise prices. Once their room for negotiation is compressed, it may accelerate the listing of the shell company."

[Little Crocodile]: I understand, boss.

[Dropped out of school to trade stocks]: It is said that stock trading is against human nature, but I feel that this statement is not entirely true. Stock trading tests one's level of cognition. If my boss hadn't analyzed it from this perspective, I really wouldn't have thought that bad news could actually be good news.

[Chen Xiaoqun]: No wonder Joker mentioned Haitong Foods. I think that with the accelerated IPO, its backdoor listing agreement with Yijing Optoelectronics will also be finalized sooner.

[Stock Trading to Support the Family]: Got it, I'll just buy a lot of A-God's stock tomorrow.

[Zen City Shadowless Kick]: How could you be so unethical? You actually launched a surprise attack!!

Suddenly, Liao Guopei sent a message condemning him, but the next second, he typed: "But I like it, I support A God!"

[joker]: I'll leave the task of getting top A to you guys. I'm busy with company matters lately, and with Singles' Day coming up soon, I'll be a bit tied up.

[Zen City Shadowless Kick]: Don't worry, with us five tigers on the front lines, we'll definitely make God A flustered and scream in pain.

[Stock Trader to Support His Family]: Something's not right, something's not right, that Shadowless Kick is really something's wrong!
[Chen Xiaoqun]: It feels like I'm performing Sichuan opera.

[Little Crocodile]: A gay guy is right next to me?

[Dropped out of school to trade stocks]: Brother Foot has been through too much. I heard that after big shots get tired of women, they start playing around with men. Could it be...?

[Zen City Shadowless Kick]: Looks like no one understands my sense of humor. Oh well, never mind, see you tomorrow.

[Stock Trading to Support the Family]: You've tacitly agreed? /Evil grin.

Seeing Lin Guangchang's mischievous grin, Liao Guopei retorted, "So you've been found out after all? Little Changchang, I love you~"

[Stock Trading to Support the Family]: If you have a wife, don't mess around!
Looking at the QQ group messages, Zhang Yang couldn't help but laugh and said, "I hope these guys are reliable. Let's not waste this opportunity."

If he were in charge of Haitong Foods, he would not hesitate to invest 5 million yuan, leaving A-god Qiu Baoyu to choose whether to go up or down.

If the price drops, then another 5 million will be poured in. Haitong Foods only has 1.65 million shares in circulation. At a share price of 10 yuan, the market value would be 16.5 billion. Putting in 10 billion would already give them a high degree of control, allowing them to directly reap Qiu Baoyu's spoils.

But if it's going up, then just stay quiet and wait for the other side to push it to the daily limit.

Previously, we only had a few hundred million yuan in available funds, and we still needed to be very careful with Haitong Foods.

The "Zhangjiang gang" now has a whopping 11.3 billion yuan in available funds. There's no need for further discussion; they can just go all out on small-cap stocks.

Because he wanted to train the "Five Tigers," Zhang Yang did not specify how to control the market, but he believed that Liao Guopei, Lin Guangchang, Feng Weiqiang, Zeng Lingshan, and Chen Xiaoqun could make the most correct trades.

……

And at the same time.

the other side.

Yanjing Beichen Century Center.

JD.com headquarters.

The sudden visit of He Jingxing, chairman of China Unicom, caused Liu Qiangdong, who originally planned to return to Suqian, to change his plans and rush back to his own company from the airport.

"Mr. He."

Liu Qiangdong walked into the office, accompanied by two deputies.

In 2009, Liu Qiangdong had not yet dyed his hair white, but he still looked the same, with honest-looking features and slightly dark skin.

"I hope my sudden visit, without prior appointment, didn't delay your business?" He Jingxing quickly stood up from the sofa in the negotiation area, his every word and action filled with apology.

Lin Rui, the JD.com vice president who was temporarily keeping company with the conversation, immediately stood up and handed over the conversation to Liu Qiangdong, who had rushed back.

"Mr. He is too kind. I am more than happy to welcome you to JD.com. How could I possibly say that it is a delay?" Liu Qiangdong smiled and approached.

"Haha, then I'm relieved." He Jingxing pretended to be confused, and then made his stance clear: "Next time, I will definitely try not to make a surprise visit, but this time, I really have to ask you, President Liu, for help."

"You guys go out first."

Liu Qiangdong glanced at the others.

"Okay, Mr. Liu."

"You two, bosses, have your talk."

The others left and closed the office door.

Seeing that they had a private conversation space, Liu Qiangdong looked at He Jingxing and asked, "President He, please feel free to speak. As long as it's something I can help with, JD.com and I will do our best."

As the chairman of China Unicom, He Jingxing has access to a vast network of contacts throughout the country.

Anyone who has run a business knows that if you want to grow and strengthen a company, you can't avoid a complex web of personal connections.

Having connections is essential for success; product quality alone is not enough.

"Then should I just say it?"

He Jingxing tested Liu Qiangdong's attitude again.

"Just tell me," Liu Qiangdong practically patted his chest in confidence.

"Here's the thing, China Unicom spent a lot of money to sign an exclusive agency agreement with Apple for the Chinese version of the iPhone 3GS, but now we find that the price is a bit too high. Since the phone has just been launched, it's not good to lower the price immediately. So I was thinking of seeing if we could ask JD.com to issue a coupon to indirectly lower the price and sell it."

He Jingxing explained his purpose.

Having taken charge of JD.com, Liu Qiangdong was no fool. He cautiously inquired, "Mr. He, how much would you like to order?"

"Let's make it 5999 yuan. We'll subsidize 1000 yuan in your name, just like Taobao's Double 11. Let's see if JD.com can also create a festival to help us sell some phones."

He Jingxing answered immediately.

In the past two weeks, anyone who has watched TV or gone online has been bombarded with advertisements for the "Double 11 Shopping Festival".

He Jingxing was extremely anxious during this period and found himself in a dilemma.

Before signing the exclusive agency agreement with Apple, he did not consider the software ecosystem at all, which resulted in the iPhone 3GS failing to highlight its function as a 3G phone.

Aside from mobile QQ, if you want to browse Weibo, Caiyan.com, or Baidu Tieba, you can only use their WAP web versions.

WAP web pages were designed for 2G phones to save data; in short, they are text-based web pages with the option to include or exclude images.

Users aren't stupid; they can do the same things with an 800 yuan 2G feature phone. Why would they spend over 6000 yuan more to buy a 3G phone?

Moreover, the unauthorized inflow of Hong Kong versions of the iPhone 3GS directly impacted the already dwindling market share of the mainland China version of the iPhone 3GS.

Want to lower the price?

What about the customers who bought the machines before?
Let's not lower the price.

The Hong Kong version of the iPhone 3GS is far superior to the mainland China version, after all, it's more than 2000 yuan cheaper.

Unable to advance or retreat, He Jingxing was so worried that several strands of his hair turned white.

Just when he was at his wit's end, he suddenly saw an advertisement for Taobao's Double 11 shopping festival, which gave He Jingxing an idea.

Since China Unicom cannot voluntarily lower prices, can we ask online shopping platforms to lower their prices?
No matter how dissatisfied consumers are, China Unicom can claim it's the online shopping platform's doing, completely and neatly shirking responsibility for the price reduction.

Because JD.com's headquarters are in Beijing, He Jingxing made an urgent visit to JD.com. He also had to fly to Hangzhou overnight to meet with Ma Yun from Alibaba.

After understanding their needs, Liu Qiangdong breathed a sigh of relief and patted his chest, saying, "No problem, I'll sell you the phones for 5999 each."

"but!"

Suddenly, he changed the subject, saying, "It can't be a real subsidy, can it?"

A subsidy of 1000 yuan per unit would amount to 10 million yuan for 10,000 units, which JD.com does not have the budget for.

"That's definitely not true. You collect the payment, we provide the goods, and then we'll give 15% of the net profit to Mr. Liu," He Jingxing said with a smile.

"You're too kind, Mr. He. I've heard a bit about what happened with China Unicom, and your stock price seems to be fluctuating quite a bit. Let's stabilize the stock price first, and we won't talk about money in this matter."

Liu Qiangdong had made up his mind: what he wanted was He Jingxing's favor, not the net profit. He knew that China Unicom was a state-owned enterprise; if He Jingxing were ever transferred or promoted, the value of his connections would immediately become apparent.

One cannot only focus on immediate gains in the world of martial arts; one must have a long-term vision.

“One thing at a time. You should be paid for your work. I will remember Mr. Liu’s great help this time.”

He Jingxing didn't want to owe too many favors and continued to stick to his principles.

Upon hearing this, Liu Qiangdong conceded slightly, saying, "5% is fine, just a token. I hope to keep in touch with President He more often in the future."

"It's easy to talk about."

He Jingxing accepted the proposal.

A 5% net profit margin can at least guarantee that JD.com will not lose money. As for the debts of gratitude, they can only be repaid when there is an opportunity in the future.

After finalizing the deal with Liu Qiangdong for a price reduction and subsidy for the Chinese version of the iPhone 3GS under JD.com's name, He Jingxing didn't waste a moment and immediately had someone book a plane ticket to fly to Hangzhou to meet Ma Yun.

Liu Qiangdong didn't stay in Yanjing for long; he still had to handle matters at the customer service center.

JD.com's customer service teams are currently located all over the country, which makes unified management difficult. Liu Qiangdong plans to establish a customer service center in his hometown of Suqian, which will facilitate management and create more jobs.

……

The next day, February 11th.

Zhangjiang, the capital of Shanghai.

Trading area on the 7th floor of Building A, Changtai Plaza.

Liao Guopei, as the "second brother," naturally took over Zhang Yang's command and went to the whiteboard to write down several stocks, including Demian Shares, ST Zhongliao, Xinxin Shares, and Zhaowei Technology.

"I worked through the night last night and found that there are quite a few stocks with expectations of backdoor listings, and the directions are also very diverse, including real estate, green energy, and cultural media."

As soon as Liao Guopei finished speaking, he added, "I personally think the real estate sector is good; there's a lot of potential for restructuring in this area."

What tickets are available?

Lin Guangchang inquired.

"There are rumors that Demian Co., Ltd. is planned to be injected with real estate assets by Aijia Holdings. It is a small and medium-sized enterprise board company with about 15 billion shares in circulation. We can easily control it."

"And there's this Zhaowei Technology, which I heard is involved in Lishui Jiayuan real estate."

"How about it?"

Liao Guopei sought opinions.

"Real estate is good, but I feel that Haitong Foods is better. Yijing Optoelectronics has a lot of potential," Chen Xiaoqun added.

"We'll talk about Haitong Foods later. Right now, we're discussing other potential backdoor listing targets." Liao Guopei finished speaking, then looked at Lin Guangchang and asked, "Yangjia, what do you think?"

"They're all pretty good."

Lin Guangchang nodded slightly.

Feng Weiqiang: "Real estate is acceptable."

Zeng Lingshan: "Indeed."

"Now that Demian Shares and Zhaowei Technology have entered the trading pool, what about Haitong Foods?" Chen Xiaoqun couldn't wait any longer.

"What else can we do?" Liao Guopei paused for half a second, then smiled and said, "It's just a small business worth a billion or so, let's just do it."

"Directly betting on the banker?"

While somewhat surprised, Feng Weiqiang was already rubbing his hands together in anticipation.

“Just top it up, but you guys have to take care of the Internet of Things and do T. Leave the top-up to me and Yangjia.”

Liao Guopei assigned tasks.

Lin Guangchang seemed to realize something and asked, "Are we going to have to hit a time limit again?"

"What else?" Liao Guopei smiled faintly and explained his idea: "First, we'll take all the chips from the opening auction, and then find the right opportunity to unleash a super strong red bar."

"Okay, let's do it then."

Lin Guangchang had no objections.

Last night he also studied Haitong Foods and predicted that Asking Qiu Baoyu's holding price would not be lower than 8 yuan. Even if they were to go head-to-head, the "Zhangjiang gang" would not be afraid at all, after all, they had over 1 billion yuan in funds on hand.

At 9:15 a.m., driven by the positive news of the successful revision of the Provisional Regulations on Value-Added Tax, A-shares saw a collective surge, with the four major state-owned banks also performing well, and their gains even exceeding those of Kweichow Moutai.

Why is there a general price increase?

The core of this revision is to allow enterprises to deduct the input tax included in newly purchased equipment, thus converting the production-type value-added tax into a consumption-type value-added tax. It is estimated that the tax reduction scale for the whole year will exceed 1200 billion yuan.

Based on data from listed companies in 2007, the average increase in corporate net profit after the VAT reform was 8.21%, with capital-intensive industries such as machinery and equipment, power, and papermaking benefiting the most.

"A general market rally, could it be that A-shares are about to achieve an eight-day winning streak?" Zeng Lingshan muttered to himself.

On the other side, Liao Guopei glanced at the overall market and immediately switched to Haitong Foods' intraday chart, saying, "You know how to support your family, place orders as discreetly as possible, and then finish it off in one go."

"understandable."

Lin Guangchang nodded in response.

The intraday chart of Haitong Foods shows a shift from strong to weak, with the buy orders gradually falling behind the sell orders. Based on this trend, it is highly likely that the stock will open lower.

However, when the time came to 9:20, the intraday market suddenly turned strong again. Upon seeing this, Lin Guangchang immediately said, "That was a false breakout. The other side probably opened in the green and didn't go against the overall market trend."

"OK."

While responding, Liao Guopei began to slowly step in and pay the bill.

……

Fujian-Fuzhou City.

The "Brotherhood" is trading office buildings.

Asking's Qiu Baoyu had already changed into a down jacket. At this moment, he was not paying attention to Haitong Foods, because they still had two or three of these second-round trend takeover stocks in hand. What he was more concerned about now was whether Huaguo Unicom could successfully ship its shares.

"It's still falling; China Unicom hasn't fully digested the negative news yet."

"This is a bit tricky. We've lost quite a bit, to be honest."

"The four major banks all rose by 1%, and other blue-chip stocks also generally rose, except for China Unicom, which fell. It's really speechless."

"Forget about martial ethics, just smash it."

The Brotherhood's speculative investors were abuzz with discussion, saying that China Unicom had lost far too much money, conservatively estimated at 5000 million yuan.

"We still need to consider human relationships. Let's sell half today. If we dump too much stock, it will be difficult to explain to Xu Xiang and Leader Zhang."

Qiu Baoyu then spoke up.

There were so many institutions participating in this round of buying into China Unicom that almost no one thought its stock price would fall.

But the result...

It proved everyone wrong.

Qiu Gaocai, who was picking his toes nearby, yawned upon hearing this and said, "I'm just afraid that the other side will not be fair. Xu Xiang, Ge Weidong, and Chang Shishan are probably already at their last gasp. Every minute we stay is a minute more risky."

"I know that China Unicom reduced its holdings by half, leaving half. Maybe there will be a turnaround."

Qiu Baoyu has already seen JD.com's promotional text, which states that the Chinese version of the iPhone 3GS will be available on JD.com for 5999 yuan on Singles' Day. He doesn't know if online shopping can boost the overall sales of the Chinese version of the iPhone 3GS.

"Brother Yu is in trouble."

Suddenly, someone spoke.

"What's going on?" Qiu Baoyu asked.

"During the opening auction just now, it seems like new funds entered Haitong Foods, and they bought in right around the 25-minute mark," the person guessed.

"???"

Qiu Baoyu immediately frowned.

He opened the intraday chart of Haitong Foods. It was already 9:26 AM. Today, Haitong Foods opened at 10.62 yuan, and the trading volume in the opening auction was 1.2 lots, with a total value of 1274.4 million yuan.

"It can't be him, right?"

Qiu Baoyu remained vigilant.

As 9:30 approached, the price of Haitong Foods began to fluctuate. Everyone in the Brotherhood stared at the screen for at least 10 minutes, but they did not notice any unusual accumulation of shares.

Thirty minutes later, Qiu Baoyu relaxed his guard and said, "It's probably a big player. Just keep doing T+30 trading in line with the market trend."

"Received from Brother Yu."

"clear."

"Ok."

The fraternity members began to work.

Throughout the morning, Haitong Foods' trading activity remained normal, as always, firmly controlled by the Brotherhood.

But as everyone relaxed their guard at 2:30 p.m....

[Stock Anomaly Alert]: Haitong Foods saw a super buy order of 3000 million yuan.

[Stock Anomaly Alert]: Haitong Foods saw a super buy order of 3000 million yuan.

[Stock Anomaly Alert]: Haitong Foods saw a super buy order of 3000 million yuan.

The three super buy orders of 3000 million were not the end of the story. Several more super buy orders followed, and Haitong Foods' stock price was pulled up to the daily limit almost instantly.

“The price limit has reached the limit!”

"They're not big investors, they're speculative capital!"

"Damn it, some speculative capital is targeting our stocks!"

Hearing the exclamations of the crowd, Qiu Baoyu's afternoon drowsiness instantly vanished. He quickly raised his voice and said, "Haitong Foods' plate is very small, we can't smash it. The person in charge of this ticket, please count the remaining chips immediately."

He hadn't lost his mind. Qiu Baoyu was well aware that Haitong Foods was too small a company, and their financial advantage couldn't be fully utilized.

The transaction record was tallied and sent to Qiu Gaocai. After Qiu Gaocai recalculated it, he looked at Qiu Baoyu and said, "2 million worth of chips were bought up. This level of buying up chips may be due to the intervention of top-tier speculative capital. We can't fight it head-on."

“Yes, the plate is too small; it won’t give the other party a chance to pick the peaches.” Qiu Baoyu nodded in agreement.

"I wonder who's involved, so blatantly and recklessly barging in," Qiu Gaocai remarked, flicking a booger from under his fingernail.

"Wait for the Dragon and Tiger List."

Qiu Baoyu responded coldly.

He also wanted to know who had disrupted their consolidation.

As time passed, the A-share market quietly closed on November 10th, with the Shanghai Composite Index closing at 3178.61 points, a gain of 0.1%, marking its eighth consecutive day of gains.

Half an hour later.

The list of top-performing stocks in the two stock exchanges has been released.

Haitong Foods' stock price surged to the 10% daily limit, successfully earning it a place on the list of top gainers and losers.

When Qiu Baoyu opened the stock exchange's daily trading data and saw "Jiangzhe Huaxin Securities Fuchun Road Branch," a surge of anger welled up inside him: "Fuchun Road, I'll fuck your mother!!!"

(End of this chapter)