I'm in the county town, and you say I'm a big shot?

Chapter 403 The People's Eyes Are Sharp

A message was published on the Shenzhen Stock Exchange's official website:
Zixin Pharmaceutical (002118) announced on the evening of October 23 that its shares had been suspended from trading since August 2. The company has conducted a self-examination regarding the situations and related matters reported by the media, and the self-examination is now basically complete. Trading of the company's shares will resume on October 24. Currently, the China Securities Regulatory Commission (CSRC) is investigating the company.

The announcement also acknowledged some problems with the company, such as failure to disclose related party relationships and transactions, and untimely explanation of financial statements.

Finally, it was stated that the company's daily production and operations are currently normal, the ginseng procurement work for 2011 is progressing smoothly, the ginseng prepaid for in 2010 has been harvested as planned, and fresh ginseng is being stored in warehouses. The ginseng procurement task is expected to be completed by the end of November 2011.
That evening, Shi Guangrong called Fang Qingye.

"Qingye, you saw Zixin Pharmaceutical's resumption of trading announcement, right? It seems like they're just trying to fool people; their answers to the questions you raised in the article were evasive."

"It doesn't matter if you try to fool me. There's a saying that the eyes of the masses are discerning. Let's see who gets proven wrong when the market opens tomorrow!" Fang Qingye laughed.

The next morning at nine o'clock, Shi Guangrong sat down at his office computer on time and logged onto Tonghuashun to check the A-share market.

The resumption of trading in Zixin Pharmaceutical is a big deal. I still have nearly 3 lots of shares in the portfolio. More importantly, I'm wondering how the stock will perform after the resumption of trading.

The market is flooded with all sorts of news and rumors. Some people think that all the bad news has been released and it will be good news, and the stock price will rebound. Others think that the price will continue to fall.

Li Wei, general manager of Baoying Fund, is also paying close attention.

Sure enough, as soon as he got to work, he turned on his computer to check various messages. After nine o'clock, several people gathered in his office, including Yang Yongliang, Feng Jing, and Ye Haifeng, all of whom were his confidants.

"Boss, I don't think we need to be too nervous." Feng Jing reassured Li Wei, noticing his anxious expression. "Four days ago, Zixin Pharmaceutical announced its third-quarter results: the company achieved operating revenue of 5.36 million yuan, a year-on-year increase of 106.7%; operating profit of 1.76 million yuan, a year-on-year increase of 164.56%; and net profit attributable to owners of the parent company of 1.59 million yuan, a year-on-year increase of 153.05%."

"According to the company, their financial situation is very good. The stock price will rise after this review. Even if it cannot recover to the highest level, there will definitely be a big rebound. We can take the opportunity to sell our shares."

After hearing Feng Jing's words, Li Wei's mood improved, but then a cold voice rang out; Yang Yongliang spoke:

"If Zixin Pharmaceutical really did commit multiple large-scale financial frauds as reported online, then do you still believe the just-released third-quarter data?!"

Li Wei's mood instantly soured after hearing this.

Feng Jing, who was standing next to him, also expressed his dissatisfaction: "Old Yang, can you stop being so paranoid?"

“I’m not being paranoid, this is basic logic! We can think positively, but others might not.” Yang Yongliang sneered, “You’ll know when the stock market opens.”

"Shut up, everyone!" Li Wei snapped, his temper flaring, and the office fell silent.

At 9:20, the opening auction begins.

Zixin Pharmaceutical quickly produced bidding results:

The stock price hit the daily limit down.

At that moment, Li Wei's heart turned completely cold.

Shi Guangrong, however, managed to suppress a burst of laughter.

"Glory, what are you so happy about? We still have 30,000 hands trapped inside and can't get out," Jiang Yiling, standing next to him, couldn't help but chide.

"What's 3 lots? Baoying Fund has 40 lots! I can imagine Li Wei's tearful expression." Shi Guangrong chuckled.

"I'll give Fang Qingye a call. I reckon he's not looking at the market right now."

Fang Qingye really didn't look at the charts.

The weather was nice today, with bright sunshine, a welcome relief from the continuous rain of the past few days. He and the workers were clearing the ditches along the road and cleaning up various dead branches and leaves.

When it rains, I always sit indoors. It's nice to go out and move around when the weather is nice.

His cell phone rang in his pocket. He took it out and saw that it was Shi Guangrong calling, so he guessed what it was about.

He pressed the answer button and asked, "Has Zixin Pharmaceutical's stock price hit the daily limit down?"

"Yes, it hit the daily limit down. There were nearly 40 sell orders. Even a god couldn't open it."

"I said the masses have discerning eyes, don't you think? Still trying to make up stories to fool people?" Fang Qingye smiled and said, "One limit down is far from enough, there will be at least two more limit downs."

"Then Li Wei is completely finished."

"If he doesn't fail, who will? Who told him to be so unlucky? Why did he have to choose Zixin Pharmaceutical over other stocks?!" Fang Qingye said casually. "Heh, that's true."

"Okay, that's enough. I'm cleaning up the nursery now. Bye!"

"Bye-Bye."

Shi Guangrong also hung up the phone.

Jiang Yiling had been listening to the conversation from the side, and only spoke up after he hung up the phone: "Actually, you can't entirely blame Li Wei for bad luck, can you? If Fang Qingye hadn't been stirring things up behind the scenes, how could Zixin Pharmaceutical's problems have been discovered so quickly? Maybe they could have shipped the goods smoothly?"

"Yes, that's why it's best not to mess with Fang Qingye when playing the stock and futures markets," Shi Guangrong remarked.

For the next two days, Zixin Pharmaceutical continued to fall to its daily limit, and it was not until October 27 that the limit was lifted.

The stock price at this time was 15.1 yuan, a drop of nearly 40% from the highest point of 25 yuan!

Li Wei looked at his portfolio's profit and loss and felt like crying.

There's still a paper loss of 1.1 million!
Shipment?

The stock price continues to fall.

If we don't ship the goods, the losses will be even greater!

Just then, his phone rang. He took it out and looked at it, his face turning even uglier.

A phone call from Yu Bingwen, head of the securities investment department of Baoshang Bank.

He knew what the other person wanted to say, but he had no choice but to answer. He tried to pull himself together and pressed the answer button.

Yu Bingwen's voice came through the microphone: "President Li, I see that Zixin Pharmaceutical has resumed operations. You can start shipping now. Can the 100 million loan be redeemed now?"

"I'm sorry, Minister Yu, Zixin Pharmaceutical has experienced six consecutive days of limit-down trading, and we are already incurring paper losses." Li Wei's voice sounded unusually heavy.

"How much did you lose?"

"Two billion."

"Huh?! So much? How did you manage that?!" Yu Bingwen's voice on the other end of the line became somewhat agitated: "I don't care about anything else, just transfer 100 million over immediately. We're in a hurry to repay the loan; the China Banking Regulatory Commission has already urged us several times!"

Is the China Banking Regulatory Commission urging them to expedite the process?
Li Wei, somewhat curious, couldn't help but ask, "Minister Yu, did you embezzle bank funds? Which bank?"

"This is nothing to worry about, just transfer the money now!" Yu Bingwen's attitude became domineering: "Otherwise, Baoshang Bank will withdraw all the funds we invested in Baoying Fund!"

"You can't withdraw it now. According to the fund company's agreement, the earliest you can do this is after the fund's financial settlement at the end of this year. I'm sorry, I have something to do now, I'll hang up first."

Li Wei hung up the phone before the other party could reply.

Sitting in his boss's chair, Li Wei lit a cigarette and began to ponder these matters again.

It's true what they say, even drinking cold water can cause problems.

Yu Bingwen said that Baoshang Bank was going to withdraw its funds!

Oh shit
I only lost a little money on Zixin Pharmaceutical.
How much money did I make on Shanghai rubber futures again?!

However, complaining now is useless. The most urgent task now is how to deal with the 40 shares of Zixin Pharmaceutical held!

More importantly, with two months left until the end of the year, is it possible to make one last profit and recoup the losses from Zixin Pharmaceutical?
As long as it's profitable, everything is negotiable.

If you want to make money quickly, you can't rely on the stock market; the only option is futures.

Thinking of this, Li Wei picked up the landline phone on his desk and called his secretary: "Xiaoxue, have Manager Yang and the others come over to discuss something."

(End of this chapter)