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

Chapter 115 Always Be a Bull in the Market
The next day, February 5th.

As Monday, a workday, arrived, Zhang Yang's alarm clock went off at 7 o'clock. He turned it off as quickly as possible to avoid disturbing his roommates' rest.

There were no classes for investment majors this week, and the time was devoted to students creating their graduation theses and practicing how to defend them.

It is worth mentioning that, thanks to Zhang Yang's guidance, the three roommates' graduation theses successfully passed the initial review by their supervisors, allowing them to prepare well for their defenses.

Zhang Yang's paper still needs further improvement.

Because he didn't plagiarize, but wrote based on his own topic, the advantage of this was that he didn't need to apologize during the defense and could answer fluently.

After taking care of his basic needs at school, Zhang Yang immediately drove to the Industry and Commerce Bureau to submit an application to register a company.

The first step in registering a company is to pre-approval of the company name. You need to prepare 3 to 5 alternative names. If the name contains "Huaguo", it needs to be approved by the State Administration for Industry and Commerce.

Because the company name includes "China," it gains a certain degree of national endorsement, which significantly increases the difficulty of obtaining approval.

"Wealth Research Information Co., Ltd., alternative names: Wealth Research Information Co., Ltd., Wealth Research Planning Co., Ltd., Wealth Research Market Co., Ltd., are these the names?"

The window staff asked.

“That’s right,” Zhang Yang replied quickly.

After Zhang Yang confirmed, the staff at the business registration office submitted the documents and reminded him, "We've submitted them for you. You'll receive a reply within three working days. Go back and wait for our message."

"Thank you."

Zhang Yang politely thanked them and left the Bureau of Industry and Commerce.

Company registration in 2009 was relatively strict, and a "proof of commercial use" was required for the registered address. If it was a virtual address, the registration was very likely to be rejected.

However, submitting the registration address and materials will require waiting for the name to be approved.

It is worth mentioning that in 2009, a paid-in capital system was adopted. The minimum capital contribution for registering a limited liability company with two or more persons was 30,000 yuan, and the minimum capital contribution for a company with one person was 100,000 yuan, which needed to be paid in full at once.

However, since Zhang Yang is a recent graduate, according to the "Shanghai Recent Graduate Entrepreneurship Policy", college students who start businesses within two years of graduation can have their initial registered capital payment reduced to "zero", and can pay in installments within two years after starting the business.

In addition to being able to defer the payment of registered capital, recent graduates in Shanghai can also apply for interest-free loans from the Shanghai Science and Technology Entrepreneurship Fund, up to 100 million yuan.

Outside of startup parks, recent graduates who start their own businesses and find their own operating space also receive rent subsidies.

Just being a recent graduate means you can do a lot and enjoy many benefits, but ordinary people have an information barrier and simply don't know about these entrepreneurial policies.

……

After submitting the name approval application, Zhang Yang immediately drove to "Huixing Used Cars" in Jiading District, and went to the vehicle management office with car dealer Chen Yunda to complete the transfer procedures for the Maserati and pay the down payment of 36 yuan.

[Dear customer, your savings card ending in 2389 made a withdrawal of RMB 360000 (in words: Three Hundred and Sixty Thousand Yuan Only) from "Huixing Used Cars" at 9:24 AM on May 18th. Your available balance is RMB 243605. Remark: Car purchase cost.]
After deducting 36 yuan, Zhang Yang's bank card only had 24.3 yuan left.

He could finally breathe a sigh of relief when the Maserati was transferred to his name.

Without Xu Zhiruo's 115 million, his total leverage would not have reached 700 million, and the profits from this H1N1 flu hype would have been significantly reduced.

Zhang Yang wouldn't dare say how high his moral standards are, but he would dare say that he is a person who knows how to repay kindness.

That's why, the first thing he wanted to do after making money was to start a financial website and redeem Xu Zhiruo's car.

Of course, redeeming the car was his duty, and he still owed Xu Zhiruo a favor.

He will not refuse as long as it is within a reasonable range and does not involve criminal law requirements.

After redeeming the car, Zhang Yang gave Chen Yunda the address of a "gift packaging company" and told him to drive the Maserati there.

When Zhang Yang, the "sugar daddy," made the offer, Chen Yunda naturally wouldn't refuse.

After Chen Yunda left, Zhang Yang turned on the car's navigation system, arrived at a nearby business district, and found a coffee shop.

"A latte, to go."

Zhang Yang quickly ordered food.

He then found a booth, took out his laptop, plugged in the network cable, and opened the Huaxin Securities website.

Since the leveraged trading account was not in his own hands, Zhang Yang could only watch the A-share market trends.

As of 9:47 AM, the Shanghai Composite Index had fallen below 2600 points, reaching 2595 points, a drop of 1.9%.

obviously.

Panic has broken out in the market!
Why the panic?
Both CPI and PPI fell short of expectations!

In April 2009, the CPI fell by 1.5% and 0.2% month-on-month, while the PPI fell by 6.6% year-on-year and 0.7% month-on-month. These were the precursors to economic deflation.

The stock market is the capital market, and the capital market follows the total GDP. If China's economy falls into deflation and GDP growth slows down or declines, then the stock market will also be sluggish and there will be no large-scale bull market.

On the Eastmoney forum, Baidu Tieba's stock forum, and stock trading communities on NetEase, Tencent, and Sina, retail investors are collectively wailing for "refunds."

[Love is in the palm of your hand]: Before I started investing in stocks, I was an innocent and kind girl with both beauty and wisdom. After I started investing in stocks, all I want to say is, Teacher Da Xiao, I hate you!
[Flashing Lightning]: Who said it was a bull market? I've lost everything! Fuck your mother, give me my money back! I'm done playing!
[青青子衿]: Is this really a bull market? Three days of gains aren't enough to offset one day of losses. I'm so poor now that I'm thinking of going out and rummaging through trash cans and picking up vegetable scraps from the market to eat.

While retail investors were lamenting their losses, Li Daxiao, the "founder of the stock market's fancy bottom," promptly released a video to comfort the injured investors.

In the video, he is wearing a loose suit and a pair of elegant glasses, and says softly: "Fellow stock investors, don't panic. Although the CPI and PPI are below expectations, I believe the government will definitely intervene to regulate them. We should trust the strength of the government and just wait for the subsidies. Don't worry, we are still at the bottom."

As soon as his video was released, the Shanghai Composite Index fell again, reaching 2589.7, directly breaking through the support of the 10-day moving average.

Looking at the MACD indicator, the DIFF line is above the DEA line, and the two lines are moving almost parallel, with the trading volume contracting.

Is this considered a top divergence?

Actually, no.

In recent trading days, the Shanghai Composite Index has been hovering between 2550 and 2600 points without breaking through to a new high.

Although there was no divergence, the fact that the 10-day moving average was breached, the DIFF line was above the DEA line with the two lines moving in parallel, the trading volume contracted, and the most crucial macroeconomic indicators, PPI and CPI, fell short of expectations, all pointed to a market correction.

As the 10-day moving average was breached, Li Daxiao's comment section was immediately flooded with criticism.

[Social Madman]: Don't come out! Every time you come out, the A-shares market crashes. I really want to yell at you until you die!
[Maijia Winery]: Teacher Daxiao, please calm down. Every time you post a video, my votes drop by several points. Do you want your fans to go to the vegetable market and pick up vegetable scraps?
[Minxingzhigao]: It's over, the A-share market is really over. Except for those high-flying stocks related to the H1N1 flu, most other sectors are falling. Just as Li Daxiao's fans commented, the A-share market has become "distorted," with heavyweight stocks being abandoned by market funds and hot concept stocks being frantically chased by market funds.

Jianfeng Group, a leading stock in the shikimic acid concept sector, hit the daily limit.

Leading companies in the H1N1 influenza vaccine sector, Hualan Biological and Fosun Pharma, both hit their daily limit.

Leading stocks in the H1N1 influenza testing sector, including Da An Gene, Huake Biotechnology, and Haiwang Biotechnology, all hit their daily limit.

The market saw a general rise, and funds were dispersed.

The market is generally down, and funds are flowing in.

The market is currently experiencing a general decline, with retail investors flocking to the H1N1 flu concept stocks, causing a shortage of funds in other A-share sectors and leading to further declines.

Zhang Yang opened his social media album and clicked on the account screenshot from last Friday.

Last week, Jianfeng Group hit its daily limit of 9.383 yuan. Now it has hit the daily limit again, with the latest price reaching 10.32 yuan. The total value of the 75.36 shares held has reached 777.71 million yuan.

According to the screenshot, the average cost price is 5.52 yuan, which means that the current profit of this stock has reached 361.72 million yuan.

Do you want to honor this?

Zhang Yang will have to wait a little longer.

Buy when nobody cares, sell when everyone's talking. The current Peak Group has not yet reached its peak.

If it hits the daily limit again tomorrow, the cumulative deviation of Jianfeng Group's price increase will reach 114.36%. After the A-share market closes, or in the evening, they will issue an "Announcement on Serious Abnormalities in Stock Price Trading".

Based on the recent actions of the Peak Group, including but not limited to announcing the latest extraction technology, stock buybacks, and actively answering investor questions, Zhang Yang predicts that the Peak Group will make its data look very impressive, because these actions all point to "boosting the stock price".

As for why the stock price was driven up?
This is not something that Zhang Yang can consider.

He is just one of millions of investors. The waters of listed companies are far deeper than ordinary people imagine, and they also involve the transfer of benefits.

Besides the rise in Jianfeng Group, Angang Steel and the Environmental ETF, which Zhang Yang bought, both saw gains of 1.74% and 0.69% respectively. However, Taiyuan Iron & Steel was somewhat disappointing, following the market trend and falling by 2.47%, currently trading at 6.72 yuan.

"There are also gaps in steel stocks."

Zhang Yang couldn't help but sigh, then stopped watching the market and opened QQ to send intraday alerts to his VIP market research report group clients.

[joker]: Both PPI and CPI fell short of expectations, raising market concerns about a continued economic recession. In addition, the H1N1 flu concept drained funds, causing the market to fall rapidly.

[joker]: There's no need to panic about short-term adjustments; the medium-term outlook remains bullish.

Since 500 people was the limit, Zhang Yang created another VIP market research report group 2 and copied the same script there.

All of a sudden.

The group chat was buzzing with messages.

[White Sanctuary]: Why is Joker still bullish? Both PPI and CPI indicate a possible economic recession, and some self-media outlets are saying we will follow in Japan's footsteps and experience a "lost 20 years." Can the economy really still rise?
[One-Word Battle Song]: Why do I feel like the group owner and Teacher Da Xiao are a bit alike? They are both firmly bullish and always fully invested, right?
[Loves Chocolate]: Can this price still go up? Joker, don't lie to me, I'm very naive, I'm just a simple girl.

Looking at the group messages, Zhang Yang certainly couldn't say that he was a reborn person and knew that this bull market wouldn't end so quickly.

After thinking for a moment, he typed out: "After the 2007 financial crisis, foreign demand orders were cut by more than half, and factories had excess capacity. The CPI and PPI fell because foreign demand had not yet recovered and the global economy was still in the recovery period."

"The government's recent initiatives, such as the 'Home Appliances to the Countryside' program and automobile subsidies, are aimed at boosting domestic demand. Once domestic demand stabilizes and external demand recovers, we will see a new round of explosive growth."

"It's like getting sick; after injections and medication, it takes time to fully recover, so I remain bullish."

After reading Zhang Yang's explanation, the group members who were initially wavering became more determined.

[White Sanctuary]: Joker, can I trust you? I was originally planning to cut my losses and sell, then wait for a pullback to do some T+0 trading.

[Anonymous]: You know what, my mom said that some distributors are indeed going to rural areas to promote their products. It seems that stabilizing domestic demand and expanding foreign demand are proceeding gradually. I've increased my holdings!

[Crazy Big Horn]: Following Joker, you can make money. I bought Jianfeng Group and it has hit four consecutive limit-up days. Now I'm decisively adding to my position in home appliances. It's all about trust!

In a VIP market research report group of 500 people, at least 400 people don't understand the reports; they are all just looking for flashy intraday alerts.

It was precisely because of Zhang Yang's intraday alerts that they were able to repeatedly escape market tops and buy at market bottoms.

Through word of mouth, Zhang Yang's number of followers on Baidu Tieba exceeded 3700, making him a well-known blogger.

Chen Sanrong (Jumping Brother), who was lurking in Zhang Yang's research report group, as well as Liao Guopei (Shadowless Kick of Chancheng), Lin Guangchang (Stock Trading to Support the Family), and other speculative investors all saw Zhang Yang's intraday alerts.

They couldn't help but wonder, can the A-share market really continue to rise?
The bank shut down.

The stock market has cooled down.

Energy source shut down.

Among the major A-share sectors, only oil is currently struggling to stay afloat.

They had all predicted that once the H1N1 flu crisis subsided, the Shanghai Composite Index might fall below 2300 points, or even below 2000 points, due to insufficient trading volume.

Zhang Yang's unwavering bullish stance, however, made them hesitant.

Liao Guopei, who was still traveling in Sanya, couldn't help but send a message to Zhang Yang: "Can the price really still go up? You're not going to trick your fans and family into buying it, are you?"

Upon seeing the message, Zhang Yang quickly typed a reply: "Trust the country's macro-control and be a bull in the market."

[Zen City Shadowless Kick]: Xiao Xuesheng? Always a bull in the market? It feels like you've been brainwashed by Teacher Da Xiao.
[joker]: The economic collapses of Japan and the United States were due to economic bubbles. Our 4 trillion yuan stimulus package has only just been launched, and there are no bubbles yet, so it won't collapse in the short term.

[Zen City Shadowless Kick]: You make sense, I believe you.

Looking at the reply, Zhang Yang typed a sarcastic message: "You ask so many questions all day long, your membership fee will be increased tenfold next month."

[Zen City Shadowless Kick]: Ten times? You look down on my Shadowless Kick, huh? Next month, increase my membership fee by 100 times!
A monthly research report subscription fee of 90 yuan, even if it's multiplied 100 times, would only amount to 9000 yuan, which is negligible.

After fulfilling his obligations and issuing the intraday alert, Zhang Yang shut down his laptop, unplugged the network cable, picked up his pre-packaged latte, and drove to Zhangjiang High-Tech Park.

(End of this chapter)