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

Chapter 72 Establishing a Position in Huaxin Securities
April 30th, morning.

As usual, Zhang Yang went to the cafeteria for breakfast and then went to the commercial street outside the school. Since the students were still asleep, the whole street was unusually deserted, with only a few people around.

Upon entering the casual coffee shop, Jiang Xiangqiao, the owner and barista, greeted Zhang Yang warmly, saying, "You're here so early again, Zhang Yang, you're really diligent."

A latte lasts all morning, an Americano lasts all afternoon; after three days in a row, it's perfectly reasonable to get to know the shop owner.

Not only the shop owner, but even the pastry chef and waiters knew Zhang Yang.

Knowing that the other party was trading stocks in the store, they usually didn't bother them.

The news that Shanghai University of Finance and Economics' investment students crushed students from Central University of Finance and Economics, Southwestern University of Finance and Economics, Tsinghua University, and Peking University in the Huaxin Simulated Trading Competition this year has spread throughout the university community.

Although Jiang Xiangqiao and her friends did not graduate from Shanghai University of Finance and Economics, most of the customers in their shop were students from the university. They subconsciously considered themselves to be from Shanghai University of Finance and Economics and would often visit the Shanghai University of Finance and Economics campus.

According to a recent investment graduate, the reason their competition returns far exceeded those of previous years was because someone provided them with market research reports, and that person was Zhang Yang, who had consistently ranked first in his class for four years.

Zhang Yang's name was also quietly remembered by students and teachers from other universities.

Since it was not yet nine o'clock, Li Huihui, a waitress in her early twenties wearing a brown apron, jokingly asked, "Brother Yang, I also want to invest in stocks. Can you teach me?"

"A latte."

Zhang Yang first paid for the food, then looked at Li Huihui and asked, "How much is your monthly salary?"

"3470 dollars."

Li Huihui answered truthfully.

"When do you usually watch the market?" Zhang Yang asked again.

Li Huihui thought for a moment and said, "I can watch it whenever I have free time. Each time might be a few minutes or ten minutes. If you add up the fragmented time, it might take one or two hours."

"In your situation," Zhang Yang hesitated for a moment, then joked, "why don't you just give me the money? I'll even thank you."

"Pfft."

Jiang Xiangqiao, who was standing to the side, couldn't help but laugh. Although she had never traded stocks, her parents' generation loved to trade stocks, or rather, many of the older men in Shanghai loved to trade stocks. Through her exposure to this, she also learned about the dangers of the stock market.

As for why the "Shanghai uncles" like to speculate in stocks, we have to go back to December 19, 1990, when the Shanghai Stock Exchange opened.

At that time, the internet was still a concept, and the only way to buy stocks was by phone or offline. Coupled with the lack of information, the benefits of this wave of gains were basically all enjoyed by the locals in Shanghai.

Anyone who has participated in IPOs knows that if you win an allocation, it's no less than winning the lottery, with average returns around 300%.

When the Shanghai Stock Exchange opened, it was like a "new stock frenzy." As long as you dared to subscribe, they would help you register. Many people doubled their assets in this frenzy.

Once people have tasted the sweetness of success, they can't turn back. That's why there are so many stock investors in Shanghai.

Li Huihui didn't quite understand at first and asked, "Are you saying I'll lose everything?"

"almost."

Zhang Yang nodded slightly.

"However," he suddenly changed the subject, offering advice, "if you really want to play this game, you can try long-term fixed-amount investment in the CSI 300 index and befriend time. I've never recommended stock trading; this is just a legal Ponzi scheme, so you need to think it through."

"Forget it then. My salary is barely enough to survive in Shanghai." Li Huihui had given up on the idea of ​​investing in stocks. She was just an ordinary waitress, and she would rather spend her money on food than lose it in the stock market.

"Because we just opened, Zhang Yang, your latte will have to wait a little while," Jiang Xiangqiao reminded him as usual, adding that the food would be served slowly.

"Okay, you guys get back to work."

Zhang Yang sat down in a corner of the store, opened his laptop, and began organizing the existing data.

With the release of the first-quarter research reports from Huaxin Securities and Huaguo Bank last night, the potential negative factors have become known to the market.

The FTSE China A50 Index, which closed at 5 a.m., has already digested the news, showing a decline of 0.43%, indicating that foreign investors are worried that Huaxin Securities, a leading stock in the securities sector, will continue to fall.

Poor performance and a subsequent drop are normal, and a lower opening is also within market expectations.

9 points.

The A-share market is in its opening auction. Zhang Yang is focusing on Huaxin Securities this time, because whether the market will perform well today depends on its ability to quickly digest negative earnings news.

If there is a significant gap down at the open, he may aggressively intervene.

The reason is simple: it's a gamble that Huaxin Securities will pull back from the brink and adjust the company's investment portfolio in a timely manner.

Huaxin Securities' poor first-quarter performance largely reflects a bearish outlook, as its investments are primarily in stable bonds. However, as anyone familiar with the stock market knows, the stock and bond markets are like a seesaw; when the stock market surges, funds naturally withdraw from the bond market, resulting in lower returns for bond investments at that time.

Six months, almost seven months, even the biggest ship should have been adjusted by now.

The ten-minute pre-market auction period from 9:15 to 9:25 passed quickly. As expected by the market, the buying volume was small, the number of white dots in the auction was few, and the selling pressure was large, resulting in a lower opening.

After quickly organizing the information, Zhang Yang sent a reminder to his VIP research report group.

[Zhang Yang]: Today, we can focus on the securities sector. If Huaxin Securities can digest the negative impact of the first quarter report in time and lead the securities sector to an upward trend, we can try to enter with a small position.

After the group message was sent, more than a hundred VIP group customers roughly knew what to pay attention to. Liao Guopei, who was far away in Chancheng, saw the content of the early morning warning message sent by Zhang Yang and became more and more surprised by Zhang Yang's identity.

1. Young.

2. Top students who take certification exams.

3. High market recognition.

He even had some doubts about whether Zhang Yang came from a family with a long history in finance. But if he had such a background, he wouldn't have ended up selling market research reports. Liao Guopei had an urge to meet Zhang Yang.

……

At 9:30 a.m., the A-share market opened.

The healthcare sector remains strong, with Rhine Biologics continuing to lead the gains, achieving four consecutive daily limit-ups. Other shikimic acid concept stocks are also being sought after by market funds, with a large number of stocks following suit and hitting their daily limit-ups.

Peak Group seems to have been keeping a low profile, with a gain of only 1.2%, and no one is treating it as a second or third leading stock to speculate on.

Huaguo Bank opened flat at 3.53 yuan due to a decline in revenue and net profit in its first-quarter report, and then began to fall to 3.48 yuan, a drop of 1.42%, dragging down the entire banking sector, which experienced a collective correction.

Zhang Yang didn't focus on the banks, but instead paid attention to the influx of funds into Huaxin Securities and the broader market, which were two important indicators.

Huaxin Securities closed at 25.23 yuan yesterday and opened at 24.8 yuan today, a drop of 1.71%. However, in less than 5 minutes, its stock price reached the support line of 24 yuan. The market has clearly raised questions about its first quarter report... or more accurately, about Huaxin Securities' business capabilities.

Buying bonds during a recovery bull market was clearly a mistake.

The current decline in stock price reflects market funds' search for a reasonable range for Huaxin Securities' stock price.

23.99.

23.94.

23.87.

When Huaxin Securities' stock price reached 23.87 yuan, it began its first round of rebound, eventually returning to 24.11 yuan.

However, in the afternoon, perhaps due to the market being closed for Labor Day on May 1st, some risk-averse funds began to rush to sell, and Huaxin Securities' stock price fell below 24 yuan again.

The securities sector failed to recover strongly, and Huaguo Bank led to a pullback in the banking sector, which is destined to close in the red today. This has caused some market-side funds to leave the market ahead of time.

At 2:40 PM, Zhang Yang watched as Huaxin Securities' intraday chart dipped for the third time, but still failed to break below 23.8 yuan, seemingly indicating strong support. He decisively dialed Zhong Qifeng's number and succinctly said, "Buy 20 yuan worth of Huaxin Securities."

"I'll process your transaction with Mr. Zhang right away," Zhong Qifeng said quickly.

Zhang Yang continued to closely monitor the market. Currently, Rhine Biologics has only achieved four consecutive limit-up days, and it will take four more trading days to reach eight consecutive limit-up days. To maximize profits, he needs to gather as much capital as possible.

His reason for buying Huaxin Securities at that time was simple: he was betting that Huaxin Securities would change its core investment business strategy.

Why did he dare to gamble?

The controversy arose because of the influential blogger Yang Delong.

It's one thing if Huaxin Securities' top management is stuck in their ways, but now that this has escalated to the internet, what will its largest shareholder, Huaguo Huaxin Financial, think?
Will the top executives of Huaxin Group, the biggest boss behind it, send someone to question it after seeing Huaxin Securities' first quarter report and Yang Delong's critical remarks?
Stock trading requires foresight; one must plan ten steps ahead. What Zhang Yang can currently predict is that Huaguo Huaxin Financial or Huaxin Group may intervene to guide Huaxin Securities.

(End of this chapter)