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

Chapter 293 Turning Swords into Plowshares: Crisis Has Already Arrived
When Zhang Yang, Liao Guopei, and Lin Guangchang went to Chaos Investment to confirm their rights, the A-share market's opening auction had already ended.

Perhaps due to yesterday's strong gains, both major indices opened lower on December 1st. The Shanghai Composite Index opened at 3191.06 points, down 0.13%, while the Shenzhen Component Index opened at 13474.86, down 0.08%.

The Shanghai Composite Index fell more than the Shenzhen Component Index, and the problem mainly stemmed from the banking sector.

Looking at the intraday chart of ICBC, it's clear that it opened at 5.2 yuan and closed at 5.23 yuan on the previous trading day, a difference of 0.03 yuan and a drop of 0.57%.

Not only ICBC, but also China Merchants Bank, China Construction Bank, and China Merchants Bank opened lower, clearly indicating that profit-taking had occurred.

Besides the banking sector, the liquor sector also saw a slight pullback. Kweichow Moutai opened at 172.75 yuan, down 1.16 yuan from the previous trading day's closing price of 173.91 yuan, a decrease of 0.67%.

The main reason why some funds in the banking and liquor sectors are eager to cash out is a lack of confidence and a disbelief that A-shares can continue to rise. This is an unavoidable divergence.

Take Guizhou Moutai as an example. It rose by 5.27% on November 30, reaching a low of 165.4 yuan and finally closing at 173.91 yuan. Given the weak buying interest during the opening auction, taking profits was a good option.

Apart from the banking and liquor sectors, other heavyweight sectors, such as coal, non-ferrous metals, and real estate, all saw varying degrees of gains, slightly offsetting the decline in the Shanghai Composite Index.

When 9:30 a.m. arrived, both major indices began to decline. Due to the banking sector leading the decline, the Shanghai Composite Index fell much more sharply than the Shenzhen Component Index.

3188 points.

3182 points.

3179 points.

When the index fell below 3180, many retail investors began to panic.

[Boys and Girls]: What a difference! Domestic investors are going to kill again, aren't they? The banking sector is dumping shares so fiercely, I'm gonna play your mother's pineapple!
[The scent of perfume on the bed]: Oh no, the main force is even resorting to tricks like artificially inflating the price of a physical object to lure me in!
[Most painful experience in the past]: I made a 6% profit yesterday, but now I've given back 1.77%. Can any experienced investors tell me if I should sell now?
[The awareness of a backup plan]: Playing the big picture in the A-share market is really brave. Based on my many years of experience in outsmarting the A-share market, you should run when it goes up and buy back when it goes down. You have to play guerrilla tactics!
As panic spread, many new users on the Joker channel of Caiyan.com began to question Zhang Yang's judgment on trends.

[A Smile in the Dust]: No, what's the situation with the market? The post from the big shot on Fuchun Road didn't say that; he said it would continue to rise!
[Big Head as Umbrella]: You guys don't actually believe the post from Fuchun Road, do you? He's the main player, thinking about how to trap retail investors 24/7, and you actually followed along. I can only say, when you're old, I'll definitely come to your neighborhood to sell health products.

[Perhaps loneliness is the norm]: It's true that fame brings trouble. Who dares to say they can predict the stock market's ups and downs 100% accurately? I've been a long-time fan of Joker, and putting everything else aside, I think his judgment on major trends surpasses all, and I mean all, market analysts.

[Loving her is not wrong]: As a stock market investor with 10 years of experience, I want to say that the market rose by more than 3% yesterday, accumulating a large amount of profit-taking. It is normal for the market to be under pressure at the opening today. Don't be impatient.

When the market trend differed from the content of Zhang Yang's post, many newly registered users of Caiyan.com expressed their opinions.

People who come for profit will often leave for the same reason.

The reason why Caiyan.com was able to double its number of registered users in just two or three days is largely due to Zhang Yang's terrifying 625 million-fold return rate.

Many speculative retail investors, wanting to make money, were intimidated by the 625 million-fold return rate. In reality, their perception of "Fuchun Road" had not completely changed, and this was the root of the problem.

to be honest.

They are just "retail investors who indulge in drinking and eating."

In fact, it's not just these "retail investors who are only interested in drinking and eating"; many examples show that stock traders shouldn't easily recommend stocks to others, even if they are very good friends in real life.

If you make a profit, they won't share it with you; at most, they might treat you to a meal as a thank you. But if you lose money, then sorry, you won't even be able to be friends anymore.

Xu Zhirou noticed some signs yesterday. When she realized that the public opinion was not going well, she immediately called the operations department and asked her own online army to step in and control the trend of public opinion.

She wasn't sure if other companies had online trolls, but the best way to control public opinion was to use them to confuse the public and cover up all the negative comments.

After hanging up the phone, Xu Zhirou looked at the computer screen and muttered to herself, "It's still going down. Could yesterday's rise have just been a continuation of the downtrend?"

Although she majored in accounting in college, it doesn't mean she doesn't understand stocks. On the contrary, Xu Zhirou's trading talent is much higher than Xu Zhiruo's. She was already making money through stocks in her sophomore year. She chose accounting mainly because she didn't want to waste her college entrance examination scores.

You should know that the accounting program at Shanghai University of Finance and Economics is the best of the best, so there's absolutely no need to worry about unemployment.

The situation is different for finance majors. Shanghai University of Finance and Economics can only rank in the top five, and it doesn't have the ability to compete for first place.

……

As public opinion began to stir again, Zhang Yang, who was far away at Chaos Investment, sat down again, looked at Ge Weidong, smiled and said, "What does Mr. Ge want to talk about?"

Xu Xiang, who was originally about to leave, saw Zhang Yang sit down again and decided not to leave, wanting to know what the two were going to talk about.

Ge Weidong glanced out the floor-to-ceiling window, his thoughts seemingly returning to 1988, the year he had just been admitted to the Department of Economics at Sichuan-Chongqing University.

Why study economics?

Like Zhang Yang, they both heard that people in finance and economics could make a lot of money.

After graduating in 1992, he started working at Guizhou Grain and Oil Import and Export Company, earning a monthly salary of 300 yuan. The salary was not low, but it was far from making a lot of money. He could only say that he wouldn't starve, but he wouldn't get rich either.

Turning his gaze away, Ge Weidong looked at Zhang Yang and said, "I was deeply moved by your speech the day before yesterday. Children from ordinary families like us really suffer too much. Every step we take is like walking a tightrope, with absolutely no room for error."

"If I remember correctly, Mr. Ge is the first college student from your village?"

Zhang Yang chimed in.

"Yes, the first college student. I still remember that the whole village came to give my parents money. Some aunts and uncles who didn't have money gave my family rice or noodles."

Ge Weidong spoke calmly, and his emotional changes were clearly audible.

In 1988, supporting a college student was no easy task, especially in remote rural mountain areas; it truly required selling everything one owned.

However, the advantage was that before the "Interim Measures for the Employment of College Graduates and Above Who Are Not Guaranteed by the State" was issued in January 1996, college graduates were guaranteed job placement. They could basically get a government job after graduation and live a worry-free life.

"What about you?"

Ge Weidong then turned the conversation to Zhang Yang.

“My path to education was a bit bumpy.” Zhang Yang smiled and recounted his experience: “At first, several of my distant relatives advised my parents and me to apply to universities in eastern Guangdong Province. But I knew very well that the two first-tier cities in eastern Guangdong did not have financial attributes. If you wanted to get into finance, you had to go to the Yangtze River Delta and come to Shanghai.”

Each city has its own positioning, or more accurately, its development focus.

Beijing, the imperial capital, goes without saying. Shanghai, as one of the earliest metropolises to fully integrate with the international community, combined with its Western-style workforce and the wealth of the Yangtze River Delta region, has firmly grasped the lifeline of China's financial system.

Shenzhen and Guangzhou: one city focuses on emerging technologies, while the other emphasizes foreign trade and human resources.

Choosing the right city for development is like choosing the right school and major; it often leads to twice the results with half the effort.

After hearing Zhang Yang's experience, Ge Weidong looked surprised and praised him, "As expected of President Zhang, you have your own opinions at the age of seventeen or eighteen. Guangdong is indeed a good place, but it lacks financial attributes. It is worth considering to engage in trade."

"It's in the past."

Zhang Yang waved his hand.

He was actually very grateful that his parents were open-minded and did not force him to apply to universities in eastern Guangdong Province; otherwise, he would have had to start over in Shanghai after graduation.

Ge Weidong and Zhang Yang chatted for a few more minutes, mainly about their backgrounds.

Both of them rose from humble beginnings to achieve success, so they naturally have a lot in common.

"It seems we really did become friends through a misunderstanding, haha." Ge Weidong laughed heartily twice, then asked, "I have something I'd like to ask Mr. Zhang to verify for me."

"What is it?" Zhang Yang asked.

"Regarding our country's economic recovery, I personally believe it will be achieved within two years. What do you think?" Ge Weidong looked at Zhang Yang expectantly, wanting to verify his thinking.

Futures are different from stocks. Stocks can have multiple market movements in six months because the market capitalization is relatively small and international influence is relatively weak. However, futures may only have one market movement in a year.

Although the number of market opportunities is infrequent, the leverage inherent in the product allows for the return of multiple stock market gains in a single transaction.

"Economic recovery is inevitable. The G20 finance ministers' meeting that concluded on September 5th mentioned the need to coordinate efforts, maintain policy continuity in the early stages of economic recovery, and avoid prematurely withdrawing stimulus measures. As for our domestic situation..."

Zhang Yang paused for a moment, as if organizing his thoughts, before continuing, "We still have about 10 billion rural residents. As the country's industrialization progresses, they will be forced to migrate to big cities. When that time comes, the country's industry will flourish, the demographic dividend will be maximized, and the economy will naturally recover gradually."

Xu Xiang's expression changed slightly; he hadn't thought that far ahead.

As a professional speculative investor, he sees the hype points within six months, such as 3G networks and mobile internet.

Something further back in time?

He really can't see.

“Forced to flock to big cities for development.” Ge Weidong muttered to himself, seemingly having found the answer he was looking for. His gaze shifted from confusion to admiration, and he said, “As expected of a top student from Shanghai University of Finance and Economics, thank you, Mr. Zhang, for clearing up my doubts.”

At this point, he took out a business card and handed it to Zhang Yang, saying, "We really became friends through a misunderstanding. Please be sure to accept this business card. Feel free to contact me anytime if you need anything. You can also talk to me about good projects. I really admire your talent."

"Haha, it's an honor to meet you, Mr. Ge, through this unexpected encounter. Let's make progress together in the future." Zhang Yang smiled as he accepted the business card. He didn't want to make enemies with anyone, and he knew that there were no permanent friends or enemies in this world.

Many people think someone is bad, or that they are extremely annoying, most likely because of differing perspectives, and less likely because the other person is inherently bad.

Take, for example, the likely point of contention in terms of differing stances, such as travel.

If you drive a car, you might find the slow-moving pedestrians at crosswalks and the erratic electric scooters annoying, wasting your time, and you can't help but curse at them from inside the car.

But if you are a pedestrian or someone riding an electric scooter, you might wonder if the car honking its horn is in a hurry to be reborn.

The person is still the same, only the mode of travel and the perspective on things are different; that's what stance is.

Apart from Jewish capital, with whom he had a complete feud, Zhang Yang did not regard anyone else as an enemy. Even Xu Xiang was merely seen as a stumbling block on his path forward, not as an irreconcilable foe.

Seeing Zhang Yang accept the business card, Ge Weidong tried to build rapport, saying, "Don't be so formal. I feel an instant connection with you, Brother Zhang. I'm more than ten years older than you, but not quite twenty. You call me brother, and I'll call you brother. Let's learn from each other in the future."

“Okay, Brother Ge.” Zhang Yang glanced at his watch and said, “It’s getting late, and I have to get back to work. I’ll take my leave now. Let’s get together again sometime.”

"Let me see you off." Ge Weidong was incredibly enthusiastic, and you couldn't tell at all that he had just lost more than 1 million Chinese yuan.

"Please wait, there's no need to be so polite."

"Yes, yes, let's call each other brothers now, we're buddies." "Then wait at the door."

"At least take them to the elevator."

Zhang Yang couldn't persuade Ge Weidong, so he didn't say anything more. The latter then escorted Zhang Yang, Liao Guopei, and Lin Guangchang all the way to the elevator.

As soon as the elevator doors closed, Liao Guopei couldn't wait to ask, "Joker, what's Ge Weidong up to?"

"I feel like they have ulterior motives."

Lin Guangchang echoed this.

In their view, Ge Weidong might have deliberately gotten close to them, only to find an opportunity to stab them in the back.

"Just remain vigilant." Zhang Yang said calmly, and continued, "There are no eternal enemies, nor eternal friends. His show of goodwill towards us means he sees our value."

Adults are playing a game of resource exchange, which is essentially value exchange.

Take the medical profession, for example. Who hasn't been sick at some point in their life?

Having a doctor friend makes seeing a doctor much more convenient.

To build high-quality connections, you must first improve yourself. Only when you have value can you exchange resources with others.

Seeing Ge Weidong turn back, Xu Xiang finally couldn't help but say, "President Ge, are you just going to make peace with Zhang Yang like this? He's tricked you twice already."

"Chaos Investment's focus is on futures. Completely antagonizing Zhang Yang will not benefit me. The world of business is not about fighting and killing. Having more friends means having more options," Ge Weidong said calmly.

He has decided that unless there is a very certain opportunity, he will not make large-scale investments in stocks as he did before.

Since he decided to cut back on the stock business, his points of conflict with Zhang Yang decreased, and becoming friends was the best option.

"I'll take my leave now."

Xu Xiang didn't ask any more questions, but instead prepared to leave with Shu Yimin and Sun Guodong.

"I'll give it to you."

Ge Weidong gave a polite reply.

Xu Xiang: "Please wait."

"Take care then."

Ge Weidong did not see him off this time. Although he spoke very casually, he had long been unhappy about Xu Xiang's repeated misjudgments.

Forget about Shancheng Beer, Huaguo Unicom was really all orchestrated by Xu Xiang, but in the end, everyone suffered a huge defeat, and only Zhang Yang made a fortune.

Xu Xiang, Shu Yimin, and Sun Guodong entered the elevator. Shu Yimin, who had been silent all along, finally couldn't help but complain: "I feel that Ge Weidong, the Eastern Heretic, is just so-so. He was so easily intimidated by Zhang Yang. What a Ge Boss! Bah!"

"After suffering losses twice, he sought peace with Zhang Yang. Ge Weidong is getting old and has lost his fighting spirit," Sun Guodong shook his head and agreed.

The process of becoming more timid as you get older is something everyone goes through. As people get older, they become more aware of their own insignificance. This isn't really about being timid, but rather about having a clearer understanding of oneself.

When you're in your teens or twenties, no one will laugh at you for saying "My fate is in my own hands, not in the heavens." But if you say that slogan when you're in your thirties or forties, it's a bit out of place.

Of course.

It cannot be ruled out that some of them are rising stars.

But turning things around after the age of thirty is extremely difficult, and there's also the added pressure of family opposition. After all, it's impossible to abandon your wife and children to gamble on an uncertain future.

Xu Xiang listened to Shu Yimin and Sun Guodong's complaints and shook his head, saying, "Ge Weidong didn't back down; he just felt there was no need to antagonize Zhang Yang, since he's a futures trader."

"Then let's..."

Sun Guodong hesitated, as if he wanted to say something but then stopped.

“We are different. There can only be one top speculative investor. The more flamboyant he is, the more likely he is to fail,” Xu Xiang said in a deep voice.

A return of 625 million times in nine months has set a new record in the speculative investment world and may be a milestone that all speculative investors will have to look up to in the future.

Although Xu Xiang acted in a high-profile manner and formed a large group of speculative investors, he never flaunted his annual returns because he was well aware that speculative investment was a gray area and that being too flamboyant would attract unwanted attention.

Although Zhang Yang did not intend to expose it voluntarily, but was dragged along by others, the extremely high rate of return is bound to attract attention.

……

Beijing, China.

China Unicom headquarters building.

meeting room.

After announcing the "Stock Issuance Plan," He Jingxing scanned the room and said, "That's the situation. We are currently at a critical juncture in the transition from 2G to 3G networks. We need to raise 20 billion yuan from the secondary market for the nationwide deep coverage construction of 3G base stations to enhance our market competitiveness. What do you think?"

“I have no objection to issuing new shares and raising funds, but isn’t the current price a bit low?” someone immediately raised a different opinion.

China Unicom is not a private company; the chairman cannot have absolute power.

"Yes, at a price of just over 6 yuan, if you want to issue more shares, you'd have to wait until the stock price returns to 7 yuan, right? Otherwise, the financing cost would be too high."

"With a share price of just over 6 yuan, the financing cost is indeed a bit high."

"It's definitely too high, not worth it."

"I suggest we seek financing from banks first, and then consider the secondary market."

With a share price of just over 6 yuan, almost all of China Unicom's senior management felt that it was not advisable to raise funds at this price point, as the cost was simply too high. In addition, given that China Unicom was currently in a period of rapid development, it would be better to pledge the shares to banks for loans.

Hearing the dissenting voices, He Jingxing's face flashed with displeasure, and he said in a deep voice, "Currently, the company has too little cash available. Compared to pledging shares to banks, the financing cost in the secondary market is relatively lower."

He then added, “Right now, China Mobile is sitting on the sidelines watching the two tigers fight. If we don’t increase our budget for 3G network base stations, we might miss the best opportunity to compete with China Telecom. Although the share price of just over 6 yuan is a bit low, we must seize this opportunity, for it will not come again.”

Before anyone else could speak, He Jingxing suddenly stood up and said, "We need to reach a conclusion on this issue of additional share issuance within 15 days. Alright, let's end the meeting here for today."

He didn't give them a chance to refuse, but instead extended the time to 15 days.

For a while.

Everyone looked at each other.

They were all unclear about He Jingxing's thoughts, and vaguely felt that something was wrong, but the reasons he gave seemed reasonable.

After all, the transition from 2G to 3G networks is a reshuffling of operators, so it makes sense to raise funds to build 3G network base stations, right?

However, only He Jingxing knew that the reason he proposed financing was to have someone pass on the message, thereby lowering the stock price of China Unicom, shrinking Zhang Yang's holding account, and ultimately achieving his own goal.

The terrifying return of 625 million times has already attracted too much attention. In addition, the boastful statement of a transaction commission of 3% has aroused dissatisfaction among traditional securities firms.

Most traditional securities firms now operate at 10%, so if you insist on going for 3%, aren't you putting yourself in opposition to all securities firms?

Therefore, even with the intervention of Bao Xingwei, Qiu Zehan and others, it was still inevitable that some people would decide to take a risk. Among them, Huaxin Securities provided the holdings of Zhang Yang and other related accounts.

After all the senior executives of China Unicom left one after another, He Jingxing muttered to himself, "If you don't know how to keep a low profile, no matter how capable you are, you can't escape our grasp."

As He Jingxing had predicted, the news spread throughout the market shortly after the meeting ended.

In an instant.

China Unicom experienced a sudden and sharp drop in its stock price.

The Shanghai Composite Index's upward movement had initially helped Huaguo Unicom recover, with its share price returning to 6.23 yuan. However, the news of the share issuance and financing caused the share price to plummet to 6.09 yuan, and it continues to decline.

6.05 yuan.

6.02 yuan.

5.99 yuan.

When the stock price fell below 6 yuan, retail investors of Huaguo Unicom completely lost their composure and began to curse.

[Guardian of Big A]: What's going on? Has China Unicom gone bankrupt?

[Beautiful things are hidden in my heart]: The drop has already exceeded 5%, is this giant worth hundreds of billions going to hit the daily limit down again? I curse your ancestors!

[Old Monk uses Pantene to wash his hair]: Please, I beg you, I'm still a child!
[A-Share War God]: The market index has been dragged down. China Unicom, if you really can't do it, just delist. Stop disgusting us investors.

Issuing new shares means that the market has peaked in the short term; this is a consensus among everyone.

why would you say so?

Because share issuance is often associated with the word "high price," no company would be foolish enough to issue shares at a low price, as the cost would be too high.

For example, suppose a company's stock is worth 100 yuan and it wants to raise 1 billion yuan, the number of newly issued shares will be 100 million.

However, if a company's stock is in an upward cycle, or if there is some major positive news driving the stock price up, companies that need financing will patiently wait for the trend. For example, if the stock price rises to 120 yuan, raising 100 billion yuan would only require issuing 8333.3333 shares, greatly reducing the company's financing costs.

Issuing new shares does not necessarily mean that the stock price has peaked, but it often indicates that the company believes the current stock price is already at a relatively high level, or is close to a high price range.

　The Qidian year-end event offers a title for 3000 fan points, along with discounted recharge events. Don't miss out! We hope everyone can be as enthusiastic as the author, experiencing rapid growth.

　　
　
(End of this chapter)