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

Chapter 27 Three Days and Three Boards
After being reminded by Professor Wang Xingbang, Zhang Yang's demo account finally started its second transaction the next day, which was to sell Baosteel shares and buy China Construction Bank and Agricultural Bank of China with all his funds.

Buying bank stocks during a recovery bull market is a completely unorthodox approach.

Existing investment textbooks mention that the banking and securities sectors exhibit a seesaw effect: when banking stocks rise, securities stocks fall, and vice versa.

However, sometimes what textbooks teach is not necessarily correct.

Existing investment textbooks are all based on Western stock markets and are written using their case studies.

In the US stock market, banks and securities do indeed exhibit a seesaw effect.

This is because Americans generally have a low savings rate; they tend to spend their money on travel and consumption, and almost everyone has a credit card.

Wealthy Americans don't simply keep their money in banks; they entrust it to fund managers and let professional institutions invest it for them.

In this social context, American banks only demonstrate their effectiveness during economic downturns.

China is completely different. Chinese people are known for their love of saving money. Regardless of the economic environment, the amount of residents' savings has been gradually increasing. This has indirectly promoted the prosperity of bank lending business, making bank stocks the most important stabilizing force of A-shares and the foundation of the market index.

If you copy the US stock investment model to the A-share market, you'll lose everything. Similarly, if you copy the A-share investment model to the US stock market, you'll also lose everything.

The profits from operating a demo account were not significant, and Zhang Yang did not want to expend too much energy on it, so he simply chose to invest in the more stable bank stocks.

As for the live trading account and Lai Weijie's demo account, Changan Automobile continued to hit the daily limit, with the number of buy orders still reaching millions of lots, requiring no further action.

Meanwhile, on Baidu Tieba, discussions about Changan Automobile are gaining momentum, with more and more posts appearing.

[魑魅魍魉]: Changan Automobile has hit the daily limit again. Which speculative fund is behind this? How could they move such a large volume of shares?

[King of Shabak]: Could it be that Alliance Leader Zhang and Brother Zhao made a move? The available speculative capital seats don't match up.

[Peaceful and quiet years]: It's definitely not Zhang Mengzhu and Zhao Laoge. They control small-cap stocks. They generally don't play with big companies like Changan Automobile.

[Child of the Wanderer]: The key is that you don't know how many speculative funds and institutions are lurking in the leading stocks. If you force the price up, they might just sell off their shares.

The comments from retail investors not only propelled Changan Automobile to the top of the trending topics on Baidu Tieba, but also led to trending topics on Sina Weibo, Tencent, and NetEase's finance channels, attracting even wider discussion and exposure.

Seeing the commotion on the internet while he was far away in Shenzhen, Chen Sanrong quickly opened a QQ chat group and typed a message: "The target of our operation is trending on social media. We need to quickly confirm the delivery date, or we might get a lot of trouble."

Not a moment.

Speculative funds immediately responded to him.

[Nanyang Battle Song]: Coming tomorrow?

[Zen City Shadowless Kick]: No rush, I bought 20 yuan worth of press releases, and tonight it will ferment as a return to value. Let's see what other speculative funds do first.

[Stock Trading to Support the Family]: I'm a little worried that the management of Changan Automobile might cause trouble. They are desperately short of money right now. If they announce a high-level financing, all our efforts in planning over this period will be in vain.

[Ghostly and alluring]: You're such a coward. We've been planning this for two months, we can't just stop after making a million or so!
[See Bright Moon]: Let's see how the market develops after the press release is issued. I prefer to ship gradually, otherwise the cost will be too high.

The sudden exposure of the trending topic caused a disagreement among the seven speculative investors who had ignited the controversy, with each considering whether to sell their shares.

If they ship the goods tomorrow, each of them can leave with a million-dollar profit.

If they don't sell, every day the price rises will bring them hundreds of thousands in unrealized profits.

……

at the same time.

Changan Automobile Group.

Office of the Chairman.

Wearing a sexy office lady bodycon uniform and flesh-colored stockings that accentuate her slender figure, Xie Yatong, the company secretary, is reporting on the capital market situation to Chairman Xu Ping.

"Mr. Xu, during your inspection of the Chongqing market, our stock market experienced significant unusual activity. In the last two trading days, not only did some stocks reverse from a low to a high price, but today they even hit the daily limit up. We cannot rule out manipulation by speculative funds or institutional investors." "Reversed from a low to a high price..."

Xu Ping couldn't help but exclaim in amazement.

The fact that Changan Automobile was able to drive its stock price down to the daily limit indicates that the other party had been accumulating shares for at least half a month, or even several months.

Only when you have chips in your hand can you dump A-shares.

后世被散户诟病的“转融通”是2011年7月5日审议通过，并于同年10月26日公布之日起施行。

Prior to October 26, 2011, there was no similar channel for short selling in the A-share market; the only way to short sell was by buying stock index futures.

This is why, when Xu Ping heard about the "ground-to-sky board," he immediately realized that it was a long-planned scheme.

"Should we issue a risk announcement?" asked Xie Yatong, the company secretary.

"No need. It's only had two limit-up days, just returned to the value range. If it hits three more limit-up days, we could consider issuing additional shares at a higher price," Xu Ping said calmly.

For investors, the stock market is a market for financial games, but for listed companies, it's a money bag.

When the A-share market was first established on December 19, 1990, its purpose was to provide listed companies with a large amount of development funds.

It's not just the A-share market; the UK and US stock markets initially only had a financing function. It was only later that people gradually discovered that they also had investment attributes, which led to the emergence of countless financial derivatives and trading strategies.

"understood."

Xie Yatong nodded slightly.

She knew Xu Ping intended to kill Bo Da, so she didn't say anything more.

……

As night falls, tranquility descends.

As the last ray of light on the horizon was blocked, the pitch-black sky, like a giant velvet cloth, quietly covered most of China.

The speculative investor "Zen City Shadowless Kick" wasn't lying; around 8 PM, a large number of press releases exploded online.

Domestic automakers are on the rise! Changan Automobile's sales hit a new record high, with the Yuexiang model topping the March sales charts for domestic cars!

"Automotive leader hits daily limit for two consecutive days: Is it a return to value or market speculation?"

Is the end for Japanese cars? Demand for domestic cars surges in Guangzhou's used car market, with Changan Automobile dominating the market!

Breaking News! Toyota and Honda hold emergency meeting due to continued shrinking market share in China!

The news, a mix of truth and falsehood, swept across the entire Chinese internet. Many uninformed retail investors genuinely believed that Changan Automobile had already challenged established foreign automakers like Toyota and Honda, and they all shouted for the rise of domestic brands.

……

Wednesday, May 4rd.

Following last night's news, speculative funds and institutional investors once again pushed the stock to its daily limit, with buy orders reaching 130 million lots, 30 lots more than yesterday.

Changan Automobile's three consecutive limit-up days have driven the entire automotive sector upward.

Shanghai Automotive (SAIC Motor), Dongfeng Motor, and FAW Car all saw increases of around 3%, while even Geely Automobile, listed in Hong Kong, surged by 5.6%.

The collective rise in the automotive sector not only made speculative capital extremely profitable, but also made Lai Weijie a focal point in investment studies.

[Xu Zhiruo]: Oh my god, Changan Automobile has hit the daily limit again! Three limit-up days in three days! Lai Weijie, how did you pick this stock?
[Wang Liu]: Breaking into the top ten in just three trading days is simply outrageous. Brother Jie is a man of few words, but when he does speak, he amazes everyone!
[Yin Shichang]: I'm impressed. I feel like Changan Automobile can still rise. I wonder if Weijie will surpass Jingjie and become the number one in our year?

[Lu Lixuan]: Brother Jie, please take me with you!!!

(End of this chapter)