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

Chapter 43 Monetary Policy Meeting
After placing a 20,000 yuan order to buy at the limit up price in the live trading account, Zhang Yang then used Xu Zhiruo's simulated trading account to buy 300,000 yuan worth of ST Zhongfangji, while Lai Weijie's simulated trading account did not make any transactions.

Subsequently, he stopped paying attention to ST Zhongfangji and instead focused his energy on sectors such as banking, insurance, and finance.

Because it's almost 10 o'clock, the "Central Bank Monetary Policy First Quarter Routine Meeting" is about to be held, and market funds, as well as funds within the sector, are currently observing the situation.

If there are any predictions of another "4 trillion yuan stimulus package," these directly benefiting sectors will see an immediate surge.

While waiting for the meeting to start, Zhang Yang opened Baidu Tieba.

Seeing the numerous questioning comments below the post he made yesterday, he smiled calmly, neither responding nor arguing with them.

Because in the capital market, arguing solves nothing.

The best way to get the other party to back down is to slap a chart showing the benefits in their face; it's the simplest and most direct method.

Zhang Yang's mindset was not affected by the doubts. He opened the post editing page and wrote down his experience of trading ST Zhongfangji.

Besides Zhang Yang, who was waiting, investment experts He Jing and Wang Liu, speculative investors Liao Guopei and Chen Sanrong, and even executives from financial institutions and listed companies were all waiting for this meeting to be held.

Whether it's investing in stocks, foreign exchange, gold, or running a business, it all comes down to keeping up with the country's policy trends.

When the reform and opening up was proposed in 1978, and the collective economy was to be transformed into a market economy, the first batch of people who went into business certainly had a net worth of at least one million, if not everyone had a net worth of over 100 million.

At that time, a CRT color television set sold for around HK$3000 on Hong Kong Island, which is about 925 Chinese Yuan.

However, if CRT color televisions were shipped to the inland areas for sale, the price would immediately triple, and market demand would far exceed supply.

Not only televisions, but also radios, telephone exchanges, pagers, and all kinds of daily necessities can be resold for 1-3 times the net profit.

Mr. Ren, the general manager of Huawei Company, initially earned his first pot of gold by acting as an agent for Hong Kong Island Hung Nian Company's 24-line program-controlled telephone exchange.

In the face of the tides of the times and the trends of the stock market, the power of an individual is very small, so everyone emphasizes going with the flow.

Even with their vast sums of money, Wall Street giants did not forcibly boost the US stock market during the dot-com bubble of 2000-2003 or the subprime mortgage crisis of 2007-2008.

Only by learning to adapt to the times can one remain invincible.

……

Beijing, China.

The conference room of the People's Bank of China headquarters.

This is the venue for the first quarterly meeting of the People's Bank of China's monetary policy. It has a spacious area of ​​three to four hundred square meters, and reporters and major media outlets have already taken their positions.

They held "long guns and short cannons" and aimed their cameras at the doorway.

As time went on, the monetary policy committee members and key speakers attending the meeting entered the room one after another.

"Kacha kacha——"

The flashes kept going off, and the shutter seemed to be taking pictures without any expense.

The CCTV camera immediately focused on the main spokesperson for the monetary policy meeting, and reporter Peng Ruixiang introduced him to the viewers watching the live broadcast:

"Governor Zhou Chuan has entered the venue. He is the main spokesperson for the first quarterly meeting of the People's Bank of China's monetary policy and the chief of the Monetary Policy Committee of the People's Bank of China. He will set the main tone for our monetary policy this year at this meeting."

2009 was a pivotal year for emerging from the subprime mortgage crisis, and the first quarter monetary policy meeting was a crucial moment that attracted global attention.

As the ancients said, "The plan for the year starts in spring, and the plan for the day starts in the morning." The quarterly meeting is like spring and the morning. At this time, Lei Jun, who is "semi-retired" at Kingsoft and has invested in many companies such as Vancl, YY, and Letao, and has billions of yuan in cash on hand; Ma Yun, who launched Taobao Mall and promoted the independence of the B2C business; and Ma Xiaoteng, who has 8 million active QQ users, are all paying attention to the monetary policy.

Not only domestic capital is paying attention, but international capital is also closely watching the conference.

As 10 o'clock approached, the People's Bank of China's first quarterly monetary policy meeting was being broadcast live to the world via video network.

At the head of the oval conference table, Zhou Chuan glanced at the manuscript in his hand, then looked at the other monetary committee members and said, "In the past two years, we have experienced an economic crisis that originated in the United States and the West and spread to hundreds of countries around the world."

During the speeches at the meeting, the capital market gradually reacted.

Sectors such as banking, insurance, finance, infrastructure, and automobiles are climbing, and market funds are already showing signs of activity.

"At the end of 2008, we proposed the 'Four Trillion Yuan Investment Plan.' On March 18, 18 railway projects were approved, with a total investment of over 500 billion yuan."

When this statement was made, the railway sector experienced a sharp rise.

The two leading railway stocks, China Railway Construction Corporation and China Railway Group Limited, rose by 3% in less than 10 seconds and are still rising.

Besides the railway sector, steel companies such as Baosteel, Angang Steel, and Taiyuan Iron & Steel also saw significant gains.

……

However, as the meeting progressed, Zhou Chuan and the other committee members did not mention any new funding plans, but mainly focused on the "4 trillion yuan investment plan" at the end of 2008.

On the other side of the stock forum, retail investors also started discussing the matter.

[Orange is Red]: Don't you have any new investment plans? Why aren't you giving me any advance information? I went all in yesterday and I'm panicking now!
[Second Senior Brother of the Journey to the West Group]: Something's not right, something's not quite right. The MACD indicator for the banking sector has shown a bearish divergence!

[Qingyuan]: What's wrong? I just went all in on the railway sector.

[Loves Drinking Coke]: Coincidentally, I also bought into the railway sector at a high price. If there are no new positive developments, I might be stuck at the top of the mountain.

While some stock market investors were trembling with fear, Li Daxiao, the former chief economist of Yingda Securities Research Institute and a well-known financial economic analyst, posted a Weibo post.

[According to Governor Zhou, the "Four Trillion Yuan Investment Plan" has only just begun. This is the very bottom of China's stock market. Even without new investment plans, don't panic. I can already smell the faint scent of a bull market.]
As the Weibo post was published, many retail investors gradually calmed down.

As Li Daxiao interpreted it, the "Four Trillion Yuan Investment Plan" has indeed just begun, and there is absolutely no need to implement a so-called phased investment plan like Japan.

However, this is undoubtedly a huge negative for the banking, insurance, and financial sectors, which had been hyped up for two days and had risen by more than 3.7%.

Before the meeting was even over, the four major banks were the first to plummet in value.

Not only did it erase the 1.2% increase, but it also continued to dip deeper into the water.

The reason it rose on the previous trading day and before the meeting was that market funds were betting on new positive news from the meeting and were making advance preparations to push it up. Since there were no new investment plans, this part of the increase was equivalent to a premium and would naturally be wiped out.

The outflow of funds from the banking sector dragged down the overall market, which in turn affected other sectors and individual stocks.

Far away in the library of Shanghai University of Finance and Economics, Zhang Yang, holding 12 yuan in real funds, was waiting for an opportunity. He watched the market decline and realized that his chance was coming.

And at the same time.

A Sina Finance pop-up appeared in the lower left corner of the laptop screen.

The Shanghai Composite Index reversed its earlier gains, falling after rising as much as 0.94%. The Shenzhen Component Index erased most of its gains and is currently at 9094 points, up 0.04%. Both Shanghai and Shenzhen index futures have seen a pullback.
(End of this chapter)