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

Chapter 78 The signal is sent, let's do it!

At the close of trading on May 4th, Zhang Yang instructed Zhong Qifeng to sell Huaxin Securities and China Construction Bank, leaving only Jianfeng Group.

Huaxin Securities closed at 25.36 yuan, up 4.58%, while China Construction Bank rose 1.81%, resulting in a total profit of 21596 yuan from the sale.

Jianfeng Group surged to its daily limit in the final minutes of trading today, and combined with previous gains, its unrealized profit has reached 2.9 yuan.

Today, Jianfeng Group hit the daily limit. Zhang Yang specifically went to Liao Guopei to ask what was going on, and the latter quickly said that he had not made any moves.

After discussion, and considering the near collapse of the stock price at the end of the trading day, the two concluded that it was the work of speculative funds that had been secretly investing in the Jianfeng Group.

A stock involves a great deal of uncertain capital, including retail investors, speculative funds lying in wait, and institutional investors controlling the stock.

Liao Guopei's continuous testing of the market likely led others to misunderstand his intentions.

However, this also yielded a useful piece of information: the speculative funds that had preemptively invested in Jianfeng Group were willing to work together to drive up the stock price, which was very important to Zhang Yang and Liao Guopei.

If there is disagreement among investors, the amount of capital needed to drive up the stock price will increase exponentially.

……

Since there was only one optional open class this week, Zhang Yang and Xu Zhiruo immediately packed a change of clothes after returning to Shanghai University of Finance and Economics, and then took their ID cards and went straight back to Hangzhou.

Since digital maps were not yet widespread in 2009 and the BeiDou Navigation Satellite System was not fully operational, Zhang Yang, upon returning to the Hongyue Capital office building, casually found a nearby hotel to stay in.

往后的5月5号，5月6号，5月7号，他都准时出现在宏悦资本的交易办公区域。

Some unsuspecting trading managers thought he was a new colleague and wondered why Zhang Yang wasn't wearing a shirt or suit.

But after Zhong Qifeng's patient explanation, the other trading managers realized that this young man in his early twenties had used 138 million yuan to open a margin trading account with a balance of nearly 700 million yuan.

700 million!
It's not 700 yuan!

To be able to come up with 138 million yuan at just over 20 years old is clearly not typical of children from ordinary families.

Some "sensible" trading managers not only fawn over Zhang Yang from time to time, but also invite him to meals and treat him to meals.

As for some female trading managers, they were even bolder. Some directly gave Zhang Yang a 0.1 yuan gift, implying something that those who knew, understood.

These days, who doesn't want to win over a few big clients? Making money is no shame.

But for Zhang Yang, who had tasted "delicacies from land and sea" in his previous life, the allure of vulgar women was no less than that of an old sow in heat. He casually tossed the ultra-thin 0.1 into the trash can.

……

In the evening, the "Serious Abnormal Stock Trading Announcement" that Zhang Yang and Liao Guopei had been waiting for was finally released to the public.

[桂西莱茵生物科技股份有限公司(以下简称“公司”或“本公司”）股票（证券简称：莱茵生物)于2009年4月27日至2009年5月7日连续8个交易日的收盘价格涨幅偏离值累计达到114.36%，根据《深城证券交易所交易规则》的规定，连续10个交易日收盘价格涨幅偏离值累计超过100%，属于股票交易严重异常波动的情形。

As of May 7, 2009, the company's closing price was RMB 26.75 per share, with a static price-to-earnings ratio of 177.12 and a price-to-book ratio of 3.57. According to data released by Huazheng Index Co., Ltd., as of May 7, 2009, the company's industry classification was "biopharmaceuticals," with the latest average static price-to-earnings ratio of the industry at 21.61 and a price-to-book ratio of 2.16, which differs significantly from the company's latest price-to-earnings and price-to-book ratios.

The company's main business is currently the extraction of natural sweeteners, with shikimic acid as a secondary product. As of May 7, 2009, the company had received 10 export orders for shikimic acid, totaling RMB 3174.7 million.

Currently, the company's stock price is experiencing overheated market sentiment, potentially leading to irrational speculation and significant trading risks. There is a risk of a sharp short-term decline. Investors are advised to be aware of these risks, avoid blindly following the crowd, and make rational and prudent investment decisions.
With the release of the "Announcement on Severe Abnormal Stock Trading," even a fool would know that Rhine Biologics' stock price had been severely inflated.

At this moment, countless retail investors on the stock forum began to spread the news.

[Xiaodaibudai]: Holy crap, the static P/E ratio is 177.12 times, far exceeding its peers. Rhine Biologics truly lives up to its reputation as a speculative stock controlled by Xu Xiang.

[Crazy Little Ape]: Oh no, I just bought Rhine Biologics at the limit up price the day before yesterday. Will it hit the limit down tomorrow?

[Xiaolong Loves Stocks]: The eight-day winning streak curse is coming. I've already sold everything today and made over 70 yuan. I'm financially free now.

While countless retail investors were experiencing mixed feelings of joy and sorrow, Xu Xiang remained extremely calm, having already prepared to absorb the selling pressure.

For him, the "Announcement of Significant Abnormal Stock Trading" was an excellent opportunity to shake out weak hands. Once retail investors had mostly sold off, he would continue to drive up the stock price. At this point, some might ask, what if retail investors don't follow suit when he wants to sell after driving the price up so high?
In fact, even many speculative investors can't figure out why, even after they've driven the price up so high, there are still retail investors rushing to buy in.

Of course, there may be speculative funds involved, but there are more funds that are "buying the dip".

Perhaps it's human greed, or perhaps it's because there are too many retail investors in the A-share market. In any case, in the A-share market, you never have to worry about a lack of retail investors chasing high prices.

……

Friday, January 5th.

Exchange buses from universities such as Tsinghua University, Peking University, Southwestern University of Finance and Economics, and Central University of Finance and Economics arrived at Shanghai University of Finance and Economics one after another. Class monitor Lin Tian repeatedly tagged all members in the QQ group to inform them of the classrooms used for university exchanges.

Zhang Yang, who was far away in Hangzhou, ignored it. At 8:50 a.m. sharp, he arrived at Zhong Qifeng's workstation.

After three consecutive trading days of accumulation, Zhang Yang has invested 140 million yuan, all in the stock of Jianfeng Group.

At this point, the margin trading account had 552 million yuan in available funds.

9 points.

9 points.

9 points.

Time ticked by, and Zhang Yang had simulated this scenario countless times in his mind. This time, he was truly going all in.

Zhong Qifeng stood to one side. He didn't know how Zhang Yang would operate, but he had a gut feeling that this man would bring unexpected surprises.

9 points.

A-share opening auction.

Zhang Yang immediately placed an order for 10 shares at the limit-down price of 4.8 yuan, totaling 48 yuan. Jianfeng Group instantly hit the limit-down price.

It's too late, but it's soon.

He immediately opened Rhine Biotech.

"really!"

Zhang Yang's lips curled slightly upwards, and Rhine Biologics was also hit with its daily limit down price, a common reshuffling tactic used by speculative funds.

By exploiting the panic caused by the "Announcement of Serious Abnormal Stock Trading," weak holders within the stock were forced out during the call auction phase.

The stock market is not a charity. If speculative capital wants to drive up stock prices at the lowest cost, it must shake out as many retail investors as possible.

This is like an ocean liner. Individual investors are like barnacles clinging to the bottom of the ship, while institutional investors and speculative capital are like the captain and crew. If they don't clear the barnacles, the cost of starting the ocean liner will increase significantly.

Liao Guopei, far away in Chancheng, was at that moment using 12 securities accounts to frequently place buy and sell orders, artificially creating bidding white spots and matching volume.

Many retail investors who are obsessed with technology may not know that, apart from some large-cap leading stocks, any technical indicator of small and medium-cap stocks—and I mean any technical indicator—can be manipulated!

Looking at it from a purely technical perspective?

In short, we lost money!

Looking solely at performance?
In short, we lost money!

Looking at the news alone?
It all boils down to two words: losing money!
Only by comprehensively considering factors such as news, performance, technicals, capital flows, and market sentiment can one truly make value investments and be called a "technical investor".

(End of this chapter)