Black technology: a super empire spanning two worlds

Chapter 124 [The bears’ counterattack against death is also a desperate fight]

At around 10 am, the press conference of AVIC Linfei Company ended.

After Xiao Yu left the table, he immediately took out his mobile phone to check the company's stock price trend. He was stunned for a while and thought to himself: "This time the commotion is a bit too big..."

More than just a little big?

The bulls and bears are fighting each other on the Lingjing Technology market, and the entire A-share market is almost turned upside down.

Judging from the market, Lingjing Technology's market value soared by 10 trillion yuan, dazzling and the focus of the whole market, but at the same time, all major sectors fell across the board, and the indexes also plummeted. Among the more than 5300 stocks in the market, more than 5000 stocks have turned red, more than 300 stocks have hit the daily limit, and more than 8 stocks have fallen by more than 800 points.

Because Lingjing Technology has exploded with epic volume at this moment, the trading volume of a listed company has exceeded that of the entire Shanghai Composite Index in the same period of time, and it has exceeded it by a large margin. It now accounts for 43% of the current total market transaction volume. There has never been such a precedent in history.

This means that Lingjing Technology’s current terrifying capital siphoning effect has almost drained all the liquidity in the entire market. This is not just siphoning off two individual stocks or one or two industry sectors, but siphoning off money from the entire market.

This was reflected in the market as 5000 individual stocks fell collectively.

At this moment, various funds either sensed that the brokerage sector might explode and ran away, or sold other stocks to free up funds to attack Lingjing Technology, or were ready to attack at any time.

Although Lingjing Technology's market value has skyrocketed by over 10 trillion yuan, the fundamental logic of its three trump cards, graphene on the left hand, artificial intelligence on the right hand, and room-temperature superconductivity in the middle, is harder than diamond. Even if any one of the trump cards is taken out alone, there is endless room for future imagination.

What's more, an announcement was released this morning that the board of directors approved a dividend resolution plan, which will steadily distribute one-third of the profits as dividends every year starting next year.

This makes many funds that have missed out on the opportunity dare to take over even if the price has increased by more than seven times.

When investors see the current market value of Lingjing Technology at 11.59 trillion, they wonder not how the company could reach 11.59 trillion, but how it could only reach 11.59 trillion? Converted to US dollars, it is about 1.61 trillion.

Apple’s latest market value is now 2.43 trillion US dollars. Why is the market value of Lingjing Technology, which has three trump cards in its hands, lower than that of Apple?

Some investors even believe that even if Lingjing Technology does not have the trump card of room-temperature superconducting materials, it cannot be worse than Apple with its two trump cards: AI technology and graphene mass production technology, which are leading the world.

This was also fully reflected in the market. Ruilian released a huge amount of chips of 17.36 billion, plus millions of retail investors made seven or eight times the profit in one day. Seeing the rapid release of the huge amount, many people had a strong desire to lock in the profits. Not to mention clearing the positions with one click, there were also operations to reduce some of their positions.

Such a huge selling pressure might not be able to be absorbed by the more than 2700 billion short positions alone, but the actual situation is that the market took it.

This shows that there are other funds that missed the opportunity and are also taking over. They are strongly optimistic that this stock will definitely break 2 trillion US dollars in the future, and even surpass Apple's market value to become the world's largest.

Although the price is not cheap now, I still think it has a very good price-performance ratio, so I am willing to take it.

Faced with today's situation, short-term speculators should either hold their coins and wait and do nothing, or just invest in Lingjing Technology, because other sectors have no room for growth and liquidity is almost being sucked dry by Lingjing Technology. If they invest in it, they will probably be hit hard.

In this situation, you can only criticize Lingjing Technology, or hold on to your coins and wait and see what happens.

……

At this moment, a business car drove into the headquarters of AVIC Linfei Company. The person who got out of the car was Xu Changming, the current CEO of Lingjing Technology. When some media reporters saw him appear, many of them rushed over and kept asking questions.

However, Xu Changming did not accept any interviews and had no intention of stopping. Fortunately, he came with bodyguards this time, who cleared the way for him and made the journey smooth, without being blocked by reporters.

When Xu Changming showed up at AVIC Linfei Company at this time, outside media people did not think there was anything wrong with it. After all, the founder of both companies was Xiao Yu, and Lingjing Technology acquired 20% of the shares of AVIC Linfei Company. Together with the previous 5%, it held a total of 25% of the shares.

At present, the market value of Lingjing Technology Co., Ltd. has skyrocketed due to this major breakthrough in room-temperature superconducting materials, and it is creating a series of unrepeatable miracles.

Yun Shu also rushed over. She found Xiao Yu in the lounge and said, "Old Xu has something important to discuss with you. He is here and wants to meet with you."

As soon as he finished speaking, Xu Changming entered the room. Seeing Xiao Yu, he closed the door and walked over quickly. "You're here as soon as you said you would. What's the urgent matter?" Xiao Yu said with a smile. There were only three people in the room at the moment. Xu Changming was relieved to see that it was Yun Shu. She was one of the core members of the team, not an outsider, so there was no need to be shy.

Xu Changming sat down and looked at Xiao Yu and said, "The capital market is in a mess now, and it is getting out of control. We have overplayed our hand this time. We didn't expect the market to be so crazy. If we don't think about how to end it, we may get out of control. Once a chain reaction occurs, it will spread from the financial market to the outside world and cause systemic risks, which will be a big problem."

He came here in a hurry just because of this matter.

Xiao Yu motioned to Yun Shu to give him a laptop, then turned on the computer and took a look at the A-share market, as well as the market price of his own company, Lingjing Technology.

After a moment, Xiao Yu couldn't help but curse in a low voice: "These short sellers are really useless. It's not that I was too aggressive, but I overestimated them. I thought that after the second suspension, these short sellers would be able to close 50% of their positions. In the end, the stock price rose all the way to 130 yuan, and they didn't even close 5% of their positions."

Xiao Yu did not expect this to happen. He initially thought that he could let the short sellers keep more than 2700 billion, and the total profit of about 3000 billion would be enough if he cut 3500 stocks. However, he did not expect that these short sellers were so useless, and now they owe as much as 2.16 trillion.

The main thing is that Xiao Yu did not expect that people from financial institutions such as securities companies were not seeking credit, and as long as they did not make mistakes, that was credit, and they just watched the short sellers being squeezed all the way.

Actually, this is nothing. It would be fine if the short sellers had the money to fill the debt. The problem is that these short sellers owe so much that they cannot afford to pay it back even if they lose everything they have.

Xiao Yu put the computer aside and looked at Xu Changming: "What are they doing?"

Upon hearing this, Xu Changming immediately said, "There is a rumor that is spreading wildly in the circle, saying that the short sellers have lost more than 2 trillion yuan on Lingjing Technology this time, and a large number of financial institutions have been dragged into it. The banks will also be affected, triggering a chain reaction."

At this moment, the securities sector has fallen into a limit-down trend, with all indexes plummeting. The CSI 2000 Index plummeted -8%, the CSI 500 Index plummeted -6%, and the ChiNext Index plummeted -7%. More than 5000 stocks in the two markets were in the red, and the two major main board indices of Shanghai and Shenzhen also suffered setbacks to varying degrees.

The main players of Guo Jia's team were forced to "work overtime" and rushed to pull out the stocks with the first letter of "Zhong" to stabilize the Shanghai Composite Index. Other stocks such as CSI 2000, CSI 1000 and CSI 500 could not be protected, and it was also a struggle to maintain the Shanghai Composite Index.

At this moment, stocks with Chinese characters in their names are almost smoking, and the two oil companies are about to hit their daily limit, but they still cannot make the Shanghai Composite Index turn positive.

But it only lasted for 20 minutes before the banking sector began to plunge, dragging the broader market down with it. If the Chinese-character stocks that were supporting the market had also plunged in the afternoon, today's A-share market would have been a catastrophic bloodbath.

At this moment, the "three financial idiots" of securities companies, banks, and insurance companies in the big financial sector are collectively diving, giving people the impression that the A-share market is about to trigger a crisis of systemic financial risks.

Xiao Yu was silent for a moment, then suddenly said, "I probably understand. They are trying to save themselves from death. They are now trapped and can't run away, nor can they afford to pay, so they want to make a big deal out of it."

Xu Changming nodded repeatedly: "I agree with you. I also made the same inference."

Loss of more than 2 trillion?
Even if the short sellers lost everything they had accumulated over five generations, it would still not be enough to compensate them.

Xiao Yu and Xu Changming's speculation was correct. The short sellers who had been forced into a corner had chosen to take desperate measures. The final self-rescue strategy they thought of was that since the current contradictions could not be resolved, and you, Xiao Yu, insisted on forcing me to short sell to death, then I would just have to say goodbye to this life.

So they chose to intensify the conflict. It would be the same anyway, so they just made up their minds and magnified the systemic risk of the entire financial market. Just as Xiao Yu just said, they made a big deal out of it.

I have to say that this move by the short sellers is also a solution. Living towards death may give them a glimmer of hope. Although they may be held accountable later, if they can't survive today, why would they care about tomorrow?

Those short sellers, including the financial institutions that were dragged into the water, used this method to force the village to give up.

Now, will you save him or not?
You can choose not to save me, but can you choose not to save the market?
If you don't save him, then the situation will get really out of hand and reported to the higher authorities, and then everyone will be screwed.

If we don’t want the entire financial market to face systemic risks, we must rescue it. Saving us means saving the market and saving everyone. Once we are rescued, we can cut off the spread of the risk transmission chain.

After what happened, the villagers are in a state of panic and are now being held up.

……

(End of this chapter)