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

Chapter 45 V-shaped upward trend

As the first quarterly meeting of the People's Bank of China's monetary policy drew to a close, monetary policy committee members Zhou Chuan, Gong Xiaofei, and others began to answer questions from reporters from various media outlets.

"Now, we welcome questions from reporters."

The assistant offered a reminder.

"Shuashuashua——"

Standing in the media area of ​​the council chamber, a group of reporters quickly raised their hands to signal.

The meeting assistant glanced around and designated the person, saying, "The one in the blue turtleneck short-sleeved shirt."

"Governor Zhou, this is Reuters Media. You just mentioned that 18 railway projects have been approved, with a total investment of 5000 billion yuan. Could you disclose the specific use of the funds?"

A Reuters reporter raised the question.

Zhou Chuan glanced at the manuscript on the table and replied unhurriedly, "The main purpose of the 5000 billion yuan railway project is to purchase raw materials and pay the salaries of construction workers. Vigorously developing railway infrastructure is not only beneficial to the country and the people, but also a hub connecting the economies of various regions."

"Next person."

The assistant spoke up to remind him.

"This is Bloomberg Media. Ahead of the People's Bank of China's first quarterly monetary policy meeting, the capital market generally believes that there will be new investment plans. Currently, A-shares and Hong Kong stocks have turned from rising to falling. What is Governor Zhou's attitude towards this?"

This question from the Bloomberg reporter has touched the hearts of countless stock market investors.

Both Reuters and Bloomberg asked questions that focused on the capital market, which is what foreign investors are most concerned about.

After a brief pause and careful consideration, Zhou Chuan replied, "The 4 trillion yuan investment plan currently has sufficient funds and room for maneuver. The manufacturing PMI data for March also provides strong support for the economic recovery. We are determined and confident to win this economic battle."

"Next person."

The assistant looked at the other reporters.

"Phoenix TV reporter Zhong Minghui, I would like to ask Governor Zhou: This meeting did not mention adjusting interest rates or the reserve requirement ratio, nor did it include any new investment plans. Can this be interpreted as the 'Four Trillion Yuan Investment Plan' being sufficient to help China emerge from the shadow of the subprime mortgage crisis?"

The Phoenix TV reporter first introduced himself before asking his question.

Zhou Chuan was well-prepared and calmly responded: "We will adhere to a moderately loose monetary policy, optimize the credit structure, prevent financial risks, actively seek economic support points, and accelerate the economic recovery."

"Next person."

"This is beauty..."

……

With Governor Zhou Chuan's watertight answer, the capital market gradually reacted, and the previously downward-trending banking sector gradually stabilized and then began to climb back up.

And at the same time.

Li Daxiao continues to post blog entries.

[Maintaining a moderately loose monetary policy indicates that rescue funds will continue to flow into the capital market. Friends, I've said it many times: buy good stocks, be a good person, and you'll be rewarded. The Chinese stock market has already formed a bottom!]
The long post, accompanied by a picture of a baby, reignited the enthusiasm of retail investors.

[Colorless and Colorful]: Teacher Da Xiao, can I still trust you? Last time you comforted me from 6000 points all the way down to 1800 points. If I didn't have an electric scooter to deliver food, I probably would have jumped!
[Bloodthirsty White Fox]: Buy good stocks, be a good person, and you'll be rewarded. I'm not saying anything more, Teacher Da Xiao, I'm going all in on the CSI 300 ETF with 10 yuan!

[The west wind rolls up the heavy curtain]: This meeting was very informative. Although there was no interest rate cut or new investment plan, it doesn't necessarily mean it's bad news. Just like a fever that can be cured with one ibuprofen pill, taking two is completely pointless. Moderation is the best approach.

[Lone Wolf]: Indeed, Governor Zhou has consistently conveyed to us that the government has sufficient capability and strength to overcome this global economic crisis.

As the market begins to interpret the information, foreign capital has already taken the lead.

Northbound capital snapped up 10 billion yuan worth of CSI 300 ETFs in less than 100 seconds.

Domestic investors, realizing the situation too late, also began snapping up assets in the capital market.

Speculative capital, the third tier, also rushed into the market. By the time retail investors, the fourth tier, reacted, the market had already turned positive by 0.34%, giving them no chance at all.

Want to come in?
You can only chase the highs! Foreign capital, domestic capital, speculative capital, and retail investors form a complete information transmission process.

Many retail investors like to trade stocks based on news. Putting aside whether the news is leaked in advance, in terms of cognition alone, most retail investors lack the ability to interpret the market, which amplifies the information lag.

To make money in the A-share market or other capital markets, you first need to improve your understanding of the market.

……

Shanghai University of Finance and Economics.

library.

Financial Analysis Room.

Zhang Yang looked at the fluctuating trend line on the intraday chart, his mind as calm as still water. He knew this outcome before anyone else.

This was one of the few high-profile meetings that he still remembered.

He opened his securities account's earnings page, where his entire 12 yuan investment in the four major banks had already brought him a 2.3% increase, or 2760 yuan.

Now that the amount of capital has increased, each fluctuation could be equivalent to a month's salary for an ordinary worker.

As for ST Zhongfangji, which was bought at 2 yuan, the stock has been locked at the limit up again by the major shareholders. So far, there has been no profit and a loss of more than 30 yuan in transaction fees.

After reviewing the live trading account, Zhang Yang then checked Xu Zhiruo's demo account.

The total return was 2.4%, but the amount of capital was 93 yuan, with a profit of 2.23 yuan and 30 yuan tied up. It was also ST Zhongfangji.

After determining the profit target for the trading account, Zhang Yang used Lai Weijie's demo account to chase the high prices of the four major banks.

After successfully "selling on dips and buying on rallies" in reverse, his total capital of 152 million yuan was reduced to 149 million yuan, a drop of 1.9%.

"Controlling scores is really difficult."

Zhang Yang couldn't help but sigh.

He deliberately manipulated the market to incur losses, causing Lai Weijie's account to lose 1.9%. It was even more ingenious than making a profit.

The most crucial point is that you can't lose money by chasing the market up and down. If it drops by 10% all at once, you'll have to help it recover, which is time-consuming and laborious.

As the saying goes: those who get full marks are not necessarily top students, but those who can control their scores at will are definitely top students.

Of course, this ability to control the score at will means having the ability to get a perfect score, not just being able to deduct points below 50.

……

With the end of the morning session in the A-share market, the V-shaped trend of the Shanghai Composite Index resulted in losses for many students at Shanghai University of Finance and Economics.

It wasn't just Shanghai University of Finance and Economics; graduating students majoring in investment at Southwestern University of Finance and Economics and Central University of Finance and Economics also experienced a collective setback.

After all, no one would have expected that a single meeting could be interpreted in multiple ways.

Meanwhile, at the Central University of Finance and Economics, in the office of the investment faculty.

Professor Shi Xinrong looked at the latest statistics on the class's earnings and couldn't help but get angry, saying, "This is the worst class I've ever taught. They don't even have the ability to interpret information independently."

Academician Peng Ge also told him to pay more attention and lead his students to surpass Shanghai University of Finance and Economics. But how could he possibly surpass them in this situation?
This can't really be blamed on the investment graduates from the Central University of Finance and Economics; many institutions stumbled amidst the unpredictable market movements in the morning.

Who could have imagined that the meeting would cause all the positive news that had been brewing for the past two days to fall behind, and who could have imagined that the interview session would see such a dramatic reversal?

Students have their own predicaments, but professors also have their own difficulties.

The Central University of Finance and Economics' A+ program is overshadowed by the Shanghai University of Finance and Economics' B+ program. When the next academic evaluation comes, the program may be downgraded.

The most crucial point now is that the dean of their finance school is an academician in the field of finance. With the younger generation of his mentors dying out, even academicians feel ashamed when they go out.

(End of this chapter)