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

Chapter 33 Clearance Sale of Changan Automobiles
Arriving at the study area of ​​the financial analysis room, Zhang Yang skillfully connected the network cable to his laptop, then opened Sina Finance to check the latest positive news.

The major positive news on April 9th ​​was that the People's Bank of China's Monetary Policy Committee will hold its first quarterly meeting on April 10th.

Why is the routine meeting on the 10th considered a major positive development following the meeting on the 9th?

It all boils down to one word: stir-fry!

Stock trading is all about future expectations.

It's similar to buying scratch cards. Because of the coating, you don't know how much money is in a single ticket. You might be able to win 1000 yuan or even tens of thousands of yuan with just 5 yuan.

This is about speculating on the unknown and on expectations, which is also the basic logic of the stock market.

The monetary policy meeting will be held on April 10th. No one can say for sure whether there will be any announcements of another "4 trillion yuan plan". Even if it is just an adjustment of interest rates or the reserve requirement ratio, it will be enough to make the market restless.

When Zhang Yang saw the title of the "First Quarter Meeting of the People's Bank of China's Monetary Policy," the phrase "continue to implement a moderately loose monetary policy and maintain ample liquidity in the banking system" immediately flashed through his mind, which was also the focus of the meeting.

At this time in his previous life, he had not yet gone abroad, so he naturally paid attention to this important conference.

"It seems I have inside information this time," Zhang Yang said with a calm smile.

He quickly searched his documents, found stocks related to the banking and finance sectors, and conducted an initial screening.

If he remembers correctly, the meeting did not directly adjust interest rates or the reserve requirement ratio, nor did it include a "new 4 trillion yuan plan," but the market still bought into the "loose monetary policy."

……

9 points.

Zhang Yang has already shortlisted several potential stocks, which are...

1. May China be safe and sound.

Founded in 1988, it was the first joint-stock insurance company in China. Initially, it focused on life insurance business, and gradually expanded into property insurance, banking and other fields.

In 2004, Ping An Insurance was listed on the Hong Kong Stock Exchange, and in 2007 it was listed on the A-share market, becoming the first financial company in China to be listed with both A-shares and H-shares.

Starting in 2005, it proposed a "comprehensive finance" strategy, and built three major business pillars of "insurance + banking + investment" by acquiring Shenzhen Development Bank (later integrated into Ping An Bank) and Ping An Trust.

2. The four major banks.

The four major banks are Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, and China Development Bank.

The four major banks are the backbone of China's financial economy. Taking the Industrial and Commercial Bank of China (ICBC) as an example, it issued 1.04 trillion yuan in new loans in the first quarter of 2009, mainly supporting infrastructure projects such as railways, highways, and power grids, which led to a 35% year-on-year increase in the credit scale of related enterprises.

3. Shaanxi Guotou A.

Shaanxi Guotou A, officially known as Shaanxi X Province International Trust Co., Ltd., was established in January 1985 and is a state-owned enterprise directly under the provincial government.

In 1992, the company increased its capital and issued shares to the public. In January 1994, it was listed on the Shenzhen Stock Exchange. It was the first non-bank financial enterprise to be listed in China and is one of only two trust and investment companies in China that are listed as a whole.

Without a doubt, these are stocks with potential for short-term gains.

After compiling the information, Zhang Yang opened Baidu Tieba, logged into his Joker account, and updated the stock information to his personal feed.

Soon after, fans began leaving comments in the comments section of the post.

[Youngster]: Joker, do you have a positive outlook on the banking and insurance sectors?
[Tonight's Tiger Hunt]: Ping An Insurance and the Big Four banks are almost equivalent to the market index, meaning Joker believes the Shanghai Composite Index still has room to rise. I'm not sure if my interpretation is correct. [Eating Goose Prosperity]: I'm thinking of going all in, please answer!

Zhang Yang randomly picked a comment and typed a reply: "There's a routine monetary policy meeting on April 10th. We can try betting on some positive news. Even if there isn't, the higher-ups won't dampen the enthusiasm. The chances outweigh the risks."

His response was conservative, only clarifying the general direction and leaving the rest to the fans to judge.

Even if Zhang Yang wasn't a reborn person, he could still analyze from a macro perspective that tomorrow's routine meeting would most likely bring positive news, and even if it didn't, there wouldn't be any negative news.

Because 2009 was a crucial year for emerging from the shadow of the subprime mortgage crisis, all countries were racing to revive their economies, and no one was going to suddenly stop.

Even if inflation occurs, it is better than deflation, the effects of which can last from a few years to several decades.

After replying to the fans on the forum, it was already 9:20 PM.

During the 20-25 minute call auction period, only placing orders is allowed; order cancellation is not permitted.

These five minutes are somewhat similar to the "Five Cards" game in Hong Kong gambling movies, also known as "Showdown". You can roughly judge your opponent's points by looking at their face-up cards, but other people's face-down cards may turn the tide.

At this point, Changan Automobile once again set a price limit of 10.79 yuan.

Zhang Yang opened the bidding screen for Changan Automobile. This page has two indicators: one is the bidding white dot, and the other is the bullish and bearish volume.

Each white dot represents a bid, and bids are placed every 9 seconds. The denser the white dots, the higher the stock's popularity and the greater the activity of funds.

The volume chart is divided into two parts: the upper part represents unmatched volume, and the lower part represents matched volume, which are divided into red bars and green bars.

If the volume of the red bars above increases, it means that there are more buy orders than sell orders, and the buy orders below are not matched. Similarly, if the volume of the green bars above increases, it means that there are more sell orders than buy orders.

At this point, in the five minutes from 15 to 20 minutes, the buy orders for Changan Automobile were significantly greater than the sell orders. As real money transactions began at 20 minutes, the volume of the red bars surged again, and the corresponding volume below also increased.

As time went on, the red energy bars below grew taller and taller, which made Zhang Yang sense something unusual.

"If the price continues to hit the limit up, there shouldn't be a significant increase in volume at the bottom, while the buy orders at the top are continuously decreasing in volume. Could this be a bull trap?"

After analyzing the situation, Zhang Yang immediately put all 3300 shares of Changan Automobile in his real account up for sale at 10.79 yuan.

In his view, the risks for Changan Automobile at this point outweighed the opportunities, and he saw the risk of a potential collapse.

If the stock price crashes, the major players may sell off their holdings without any bottom line.

As a star manager who has worked on Wall Street for decades, his trading style has always been focused on steady profits.

As 9:25 arrived, the opening auction still showed the stock price at its daily limit. Zhang Yang glanced at his trading record, which showed that he had sold all 3300 shares of Changan Automobile.

On Monday, April 6th, he bought in at the limit-down price of 6.63 yuan, and it subsequently hit the limit-up price, gaining a 22.22% increase.

On April 7th, 8th, and 9th, Changan Automobile saw three consecutive days of limit-up trading, with each share reaching 10.79 yuan.

After clearing out his entire position, Zhang Yang's total profit from Changan Automobile stock was 13728 yuan, representing a total increase of 62.74%.

In other words, Zhang Yang used 21879 yuan to earn back 13728 yuan. After deducting various transaction fees, his account now had 3.56 yuan in available funds.

During the five-minute break from 9:25 to 9:30, he quickly scanned the opening auction screens of the four major banks, Ping An Insurance, and Shaanxi Guotou A, analyzing the bidding trends of the main funds. He found that the trading volume above was increasing, indicating that a higher opening was inevitable.

(End of this chapter)