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

Chapter 74 Internal and external cooperation
Because May 1st is Labor Day, the A-shares market in China, as well as the Hong Kong and Taiwan stock markets, will be closed for one day.

Not only the Chinese stock market, but most countries around the world will choose to close their markets on May 1st, with only the United States, Japan, Australia, and New Zealand allowing normal stock trading.

Although the market was closed, Zhang Yang did not sit idle. Instead, he organized and reviewed his trading data and strategies.

At this point, 100 of his 60 million yuan in leveraged funds had already been used, in Huaxin Securities, China Construction Bank, and Jianfeng Group.

Each of the three stocks has its own expectations and main themes.

Huaxin Securities is adjusting its gambling business.

China Construction Bank is betting on financial benefits.

The main theme of the Peak Group's gambling on shikimic acid.

As for ST Zhongfangji, which made a profit of 21.76% and exited the market some time ago, its first-quarter financial report indeed contained huge negative news, with a net profit of only 142.11 million yuan, a year-on-year decrease of 91.63%, but its stock price is quite interesting.

After consecutive limit-down days on April 27th and 28th, the stock rebounded dramatically on the 29th, first hitting the limit-down and then the limit-up. Even on April 30th, it hit the limit-up again, showing a trend inconsistent with its performance.

However, this is the nature of the A-share market. Good performance does not guarantee a rise, and poor performance does not necessarily mean a sharp decline. It's just that the release of financial reports often causes significant fluctuations.

Zhang Yang then reviewed the performance of stocks he had previously profited from, such as Changan Automobile, Baosteel, and JAC Motors, drawing lessons from their historical price movements.

……

While Zhang Yang was compiling past investment data, a heated debate was quietly taking place at the headquarters of Rhine Biologics in western Guangxi, with each side holding its own opinion.

"What is the A-share market? It's a financing market. The government established the A-share market to provide financing for our listed companies. Look at Changan Automobile. After it issued additional shares at a high price to expand production, its stock price rebounded. You guys are just hesitant and can't let go!"

A male director, around forty years old and wearing a white shirt with the collar open, showed no mercy, pointing his finger at what he considered to be the "conservatives."

However, the other directors didn't tolerate him either. One female director responded, "Changan Automobile had performance to back it up first, and then hyped up the Yuexiang brand car. What does Rhine Biologics have?"

When the question was raised, she replied, "Do you really think we have shikimic acid?"

"Yes, there is, but the production capacity and equipment can't keep up. This is a good opportunity to raise funds at a high level and order production equipment."

Another director spoke up to refute this.

“Importing customized equipment will take at least six months. I don’t think H1N1 influenza can spread globally. Let’s be down-to-earth and stick to our core sweetener business. Why take that risk?”

"Look at you, look at you! Some people are only thinking about the old sweetener business all day long. How can the company grow and thrive if it doesn't expand into new businesses?"

"What do you mean I'm thinking about our old business? My suggestion is to take it one step at a time, steadily and surely. If we follow your idea of ​​expanding production capacity by raising funds at high levels, how much money does the company have to spend?"

"There is indeed a risk of a broken capital chain."

"risk?"

"If there's no risk in running a business, is it even a business?"

In a listed company, each member of the board of directors represents the interests of different investors; some want stability, while others want to be aggressive.

Sitting in the main seat, Qin Jun, chairman of Rhine Biologics, frowned deeply. He gently tapped the table, signaling for quiet, and said in a deep voice:

“It’s good that you have different opinions. I think that since Rhine Biologics has already gone public and changed from a private company to a public company, it cannot do anything that would harm the interests of shareholders. Let’s put aside the issue of high-level financing for now.”

"In addition, Jiang Chen, please organize the details of the shikimic acid business orders and make an announcement as soon as possible."

"Ok."

Jiang Chen nodded slightly. As a director who had consistently opposed high-level financing, he defiantly glanced at the directors who wanted financing, then looked at Qin Jun with a troubled expression and said:
"By the way, Mr. Qin, shikimic acid involves export orders, and verifying the details will take a lot of time. What do you think..."

"You can take care of it."

As soon as he finished speaking, Qin Jun glanced at the other directors and said, "Any other opinions? You can raise them now, as long as they don't harm the interests of shareholders." "No."

"No."

At a board meeting, some people gritted their teeth, feeling powerless, while others swaggered and secretly rejoiced.

After the meeting adjourned, Qin Jun and Jiang Chen went to the chairman's office one after the other and locked the office door.

"How's it going with the private equity side?"

The Qin army got straight to the point.

Jiang Chen smiled obsequiously, rubbed his hands together, and replied, "I've taken care of everything for you. I used your brother-in-law's information. Now, if the price goes up by one board, you'll pocket 30."

"Great, I'll arrange the benefits you wanted later."

Qin Jun nodded in satisfaction.

"Thank you, Mr. Qin," Jiang Chen replied with a smile.

The board meeting appeared to be a debate between conservatives and developmentists, but in reality, the so-called conservatives were nothing more than "rat faction" members.

If the company is doing well, the money still belongs to the company. But if the company's money ends up in your own pocket in some form, then that's real money.

Why do insider trading incidents occur so frequently?
Is it really just private equity managers profiting from this?
Not really!

A small number of unscrupulous private equity managers do indeed try to profit from both sides, but most private equity managers are actually eyeing investors' money; they just work together to be more discreet.

It was precisely because someone was "stealing" that Rhine Biologics' "Announcement on Abnormal Stock Price Fluctuations" was a hasty response using template language.

Xu Xiang, who was far away in Ningbo, already knew about the situation of Rhine Biologics, because Jiang Chen had found a private equity firm that was a friend of Xu Xiang's, and all three parties had been informed.

The inside story of this surge was known only to Xu Xiang, the private equity firms, and a portion of the listed company; only retail investors were kept in the dark, hoping to buy into Rhine Biologics at the limit-up price.

……

As for the positive news that came from the three-day market closure from May 1st to May 3rd, it mainly came from the international market.

1. The US economic data boosted the economy, with the US Department of Commerce reporting that personal consumption expenditures grew by 2.2% in the first quarter, exceeding market expectations.

Many people may wonder, what does US economic data have to do with China?

This is because the United States is the world's largest economy, and the whole world needs to do business with it to earn US dollars in foreign exchange.

To put it bluntly, in 2009, the United States was the world's largest consumer of money.

This is why the US subprime mortgage crisis could affect the whole world; its recovery in domestic demand meant a global economic recovery.

2. Japan's industrial production has rebounded. The industrial production index released on May 1st showed a month-on-month increase of 1.6% in March, the first rebound in six months, indicating that Japan's manufacturing industry has begun to stabilize after the financial crisis, which is beneficial to the automotive, machinery and equipment and other fields.

In addition, the yen weakened, falling to the 100:1 range against the dollar on May 1st. This boosted the profit expectations of export companies, with export-oriented companies such as Sony and Toyota leading the stock price gains.

3. Global stock markets are generally rising, with the Dow Jones, Nasdaq and S&P 500 indices in the United States, the Nikkei and Topix in Japan, as well as the stock markets in New Zealand and Australia all rising. This will undoubtedly boost global investment sentiment.

Reporting to our 4000+ dedicated readers! We've successfully secured the Little Horn Recommendation on the 28th of this month, and we're almost certain to get the Wednesday Jiang Recommendation next week. As for the new book recommendations, we just need to wait for the right time to complete them all.

Today I also discussed the release date with the editor, and we chose an auspicious day to release it, which is the afternoon of Children's Day, June 1st. There are still about ten days left, and there will be a surge in sales then.

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(End of this chapter)