Chapter 542: Chapter 537: Myth Begins with Big A, and Should Also End with Big A

At nine thirty, the A-shares market opens. Of over four thousand stocks, more than three thousand are declining, with nearly eight hundred hitting their lower limit.

The newcomers in the past two years are about to witness the spectacle of a thousand stocks hitting their lower limit, just like New Year’s Day in 2016.

Holding stocks at limit down, lining up to sell,

Holding stocks about to hit limit down, sell in a stampede.

The main board opens significantly lower at -3.22%, index at 3012 points, on the verge of breaking 3000 points.

“Others panic, I add to my position, taking a gamble.”

Although panic spreads quickly in the market, veteran investor Liu has a different perspective.

A-shares at least are a bit stronger than the National Team, having stood up before; it’s not that it lacks strength, but it’s been suppressed.

Just like in the summer of ’15, when rampant leverage once pushed the Shanghai Stock Exchange Index to over five thousand points.

If it were the US stocks, they wouldn’t care about the state of the market. Major institutions would cash out at high points, leaving a mess behind, like how the subprime crisis with the bankruptcy of Lehman Brothers led to a global financial crisis.

Back then, Big A didn’t do that, but instead suppressed leverage, proactively pierced the bubble, and implemented a soft landing strategy.

“How can it be that whenever they impose sanctions, our stock market collapses like the sky is falling? What’s the difference between us and Neon or Korea?”

Investor Liu, with this in mind, buys the dip at the limit down price of BYD as the market opens, making heavy purchases at the price of 78 yuan.

New energy still remains the market’s main theme. This sell-off was initiated by the new energy index and will also be ended by it.

He’s betting that if he wins, they will at least have a limit up reversal today.

At nine thirty-one, one minute after the market opens.

All eighteen stocks in the Tianxing System are sealed at their lower limits, with sealing funds reaching as much as 58.2 billion, and continuing to grow.

“Lift the board.” Lu Liang said gravely.

The market’s selling pressure is even greater than he imagined; the plan to lift the board at forty minutes must be moved up.

If panic spreads unchecked, the more the funds required to break the seal will be.

More than a hundred traders move quickly, unleashing massive funds, with no upper limit, rushing into the new energy sector.

BYD’s stock price is at 79.2 yuan, with one lot priced at 7920 yuan, currently hung at a sell-one price with 1.12 million lots, and funds as high as 8.9 billion visibly dwindling.

“Is Brother Wan Shou here?”

“If Brother Wan Shou is here, we are saved.”

A ten thousand lot could digest 79.2 million yuan of capital, and Wan Shou’s funds, like joy beans in a game, instantly execute more than twenty transactions.

“Anyway, we’ve already hit rock bottom today, deploying the limit down strategy, charge!”

The retail investors are overjoyed, following suit, helping the major institutions break through the limit down.

In just a few minutes, all eighteen stocks in the Tianxing System break through the 58.2 billion blockade and open up.

Among them, 27.4 billion was forcefully consumed, while the remaining 30.8 billion was either eaten by followers or withdrawn.

If there’s hope for breaking the board, no one is willing to cut losses at the limit down.

After all, losing ten points versus losing seven or eight points, or even not losing today, anyone would do the math.

“Lu Liang is here.”

“Liangzi, we were wrong about you last week, lead us in one more charge, alright?”

“If Ningde can reverse today, you’d be like a father to me, and I’d never criticize you again.”

The Tianxing System isn’t just a word-of-mouth among retail investors; on platforms like East Money, Tonghuashun, it’s a real concept topic, including the eighteen stocks held by Tianxing Mixed Fund.

Just now, as all eighteen broke through the limit down at the same time, it indirectly indicated that Tianxing had taken action.

“As long as it doesn’t turn green, just end today’s trading six or seven points underwater.”

Lu Liang didn’t have time to check the news online; even if he did, he wouldn’t push it into the green today.

Because he wants to seize this opportunity to clean out the previous profits and obtain cheaper shares.

Moreover, quite a few may think of cashing out if it turns green, and Lu Liang has no intention of fulfilling their wish.

When coming, come anytime, but when leaving, at least leave some significance behind.

“I’ll go nap for a bit, call me if anything happens.”

Lu Liang yawned and was just about to step away when Zhang Jing suddenly called out: “Mr. Lu, the short-selling funds are entering.”

If it wasn’t for unloading stocks, lifting the limit down typically closes back, depending on market sentiment; if it bursts to -5% the moment it breaks, it’ll return to around -8%.

But if it’s for unloading, the seal is slammed again one or two minutes after the break, trapping all the funds inside, and usually opens significantly lower or at the limit down the next day.

They just want the chips to circulate better, wash away the old and welcome the new, without any intention to offload.

So under normal circumstances, it won’t drop limit again.

However, just now, a large number of short-selling funds poured in, forcibly pushing eighteen stocks back to limit down.

It’s not their doing, yet mistakenly assumed to be theirs, and the funds for limiting down boards quickly surged from billions to tens of billions.

The retail investors who were just singing and dancing to welcome the master, suddenly cursed: “Lu Liang is a dog, damn it! Ruined me chasing high again, won’t he eat both sides today?”

“Premeditated revenge?” Lu Liang squinted, Zhang Jing said, “I guess it’s the foreigners and Northbound Capital causing trouble.”

In this market, retail investors can only go long, but institutions can short sell, and because of the priority principle of large funds, T+1 is the same as T+0 for them.

Causing when eating meat, the institutions often get a large portion, and when running, they can flee at the first moment, naturally in an invincible position.

However, when facing Lu Liang, this dog, after three consecutive days of falling, he locked them inside, making them unable to flee at the first moment, losing a lot of profits.

If they don’t take revenge, they are no gentleman. Since their long chips can’t run away, they borrow chips to short sell.

And because today is the first working day of bad news release, if market sentiment can’t recover, it will fall sharply in the next few days, and they can retrieve the lost profits through short selling.

“Mr. Lu, you and I originally don’t interfere with each other, we all harvest the market together, but you want to be the standout, so you can’t blame us.”

Li Chengrong squinted with a smile, his mouth curved up, as the planner of this plan, he felt very proud inside.

As long as from the implementation of this plan, regardless of future market developments, they will not lose money.

Because short selling is hedging, they still hold a lot of long chips in the market.

As long as Lu Liang dares to rally, their long accounts will sell off at high positions, not only to cash out but also to exert a suppressive effect.

Once Lu Liang runs out of chips to rally and passively gives up, then they will dictate the market again.

Roaming internationally, undefeated, yet so what, his myth began in Big A, it should also end in Big A.

“Mr. Lu, why don’t you just forget it?”

Zhang Jing furrowed his brows, he saw through the opponent’s intentions, at this time short selling, naturally invincible.

If he made a choice, the best is to stay put.

Anyway, their cost is very low, even if they force a few limit-down boards, they still have over 50% profit.

And borrowed chips must be returned, certainly welcoming a rebound, so not moving now is the best choice.

Taking ten thousand steps back, he is the manager of the Public Fund, also the general manager of the fund company, Lu Liang has long had nothing to do with the Public Fund.

Failure of Public Fund does not represent Lu Liang’s failure, at most deduct his annual bonus, externally claim it as his mistake.

“What’s the difference between burying one’s head in the sand like a camel, thinking it can avoid risks?” Lu Liang was silent for a few seconds, mouth curved up, forming a smile.

Zhang Jing was very rational, his choice was also very correct.

If it was before, I’d hold back, that’s just life, often not everything goes smoothly, take a step back, the sea is wide and the sky vast.

But now, some may say he’s floating, some may say he’s inflated, but he’s already too fed up with this grievance.

Lu Liang asked: “How much funds do we still have in hand?”

Zhang Jing was slightly lost for a moment, swallowed the words at the tip of his tongue back, said: “Available funds on the account is still 92 billion.”

He shouldn’t have spoken more, if Lu Liang would retreat, then he wouldn’t be Lu Liang.

Their Boss Lu is a capital giant roaming the international stage, how could he surrender to these small villains in Big A.

Lu Liang looked at the market chart, pondered for a long time, suddenly said: “No upper limit on funds, first rally the Ningde Era board, see how much funds it needs.”

Zhang Jing’s eyes suddenly lit up, fighting spirit high, nodded heavily: “Alright, Mr. Lu.”

Lu Liang making such a decision shows he’s above, but not completely above, some rationality still remains.

Ningde Era, although the second dragon in the sector, has a market cap of 153 billion, just under BYD’s 192 billion.

But not having been listed a year, the circulating shares in the market are less than 20%, easier to operate.

And he is the sector’s second dragon, as long as Ningde Era performs a heaven-earth board during trade, the whole sector will recover.

After all, these stocks are currently all limit-down boards, once limit-up is a 20-point gain, lucrative returns, even imagining is exciting.

At 9:40, Ningde Era boarded again.

Unlike before, this time without resorting to any assist, didn’t let retail investors help lift, nor allow others time to withdraw orders.

In one go, swept the 1.9 billion selling orders on the limit-down board, a K-line soared from floor to cloud, nearly vertical.

In less than ten seconds, the turnover rapidly surged to 4.758 billion, Ningde Era completed a stunning reversal from floor to ceiling.