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

Chapter 95 Three Kingdoms - Alliance Leader

Lin'an, Jiangsu and Zhejiang.

Lin'an is under the jurisdiction of Hangzhou City and is one of its municipal districts. It is also known as Linshui.

As an ecological demonstration zone, Lin'an has not been overly industrialized and is known as a "natural oxygen bar," making it a great place to cultivate one's character and get close to nature.

At this moment, in the simple yet luxurious Su family garden in the outskirts of Lin'an, the slightly plump and honest-looking Alliance Leader Zhang was in his study, savoring freshly brewed pre-Qingming tea.

On the other side of the tea set was a computer monitor, displaying the intraday chart of Hualan Biological, which he had just boosted.

The leader of the alliance is named Zhang Jianping. He was born in 1967 in Lin'an, Jiangsu Province, and graduated from Tianjin Business School.

1996年，他怀揣5万积蓄踏入股市，1997年资金增长到20万，1999年达500万，2000年到3000万。

Unlike Xu Xiang, who lost everything in the early stages of his stock trading career, Zhang Jianping's early stock trading experience was remarkably smooth, as if he were a chosen one.

However, his journey wasn't always smooth sailing; he also had his Waterloo moments.

In 2000, Zhang Jianping, who had 3000 million yuan in hand and had repeatedly won in the A-share market, wanted to challenge himself and give up the A-share market to switch to the Hong Kong GEM board, which had greater risks and higher returns.

At that time, the Hong Kong GEM (Growth Enterprise Market) was basically all about internet speculation.

In 1995, with the launch and widespread adoption of the Netscape Navigator browser, coupled with the rise of online services such as Amazon and Yahoo, the commercial internet entered the public eye.

It was at this time that Ma Huateng and Pony Ma saw the business opportunities in the internet.

From 1995 to 2000, the US stock market was hyped up around the commercial Internet, and the Hong Kong, Japanese and European stock markets also hyped up the Internet to the skies.

However, on March 10, 2000, when the Nasdaq index reached its peak of 5048.62, the bubble was ruthlessly burst.

This game of musical chairs, an internet frenzy that had yet to find a profitable business model, came to an abrupt end. Nasdaq plummeted, dragging down stock markets in other countries as well.

Since Hong Kong stocks do not have price limits, Zhang Jianping only needed two days, during which he also added to his position once. In the end, less than 3000 million of the 1000 million yuan was withdrawn.

It was precisely after the dot-com bubble burst that Zhang Jianping returned to the A-share market.

In 2006, Beichen Industrial and China Merchants Shipping made a name for themselves with a single investment of over 5 million yuan. In 2007, they achieved legendary status with Huaguo Aluminum, breaking the myth that public funds were invincible.

Unlike Xu Xiang's well-known 50 billion yuan, no one knows Zhang Jianping's available funds, but it is generally assumed that they are at least 20 billion yuan, or even 30 billion or 40 billion yuan.

……

"how's it going?"

A middle-aged man with a slender build and a slightly square face approached.

Zhang Jianping put down his teacup and said with a faint smile, "Are you asking about tea or stocks?"

"Ask them all."

The square-faced man found a stool, sat down, and began to examine it.

His name is Wang Qiang. He is Zhang Jianping's childhood friend and mentor in the stock market. The two often discuss trading strategies together.

"The tea is top-quality, fresh, sweet, and has a delicate aroma with little bitterness. As for the stock, it will naturally hit the daily limit."

Zhang Jianping smiled faintly as before.

He was initially skeptical of the H1N1 flu concept because he believed that the United States and Mexico were capable of controlling the flu and preventing its spread.

But the result was...

He was slapped in the face.

And he was thoroughly humiliated!

The H1N1 flu outbreak began in March, and it's almost mid-May now, but the United States still hasn't developed a vaccine for H1N1 flu and is still in the stage of developing "candidate strains".

Of course, vaccine development requires rigor, and it's understandable that the process is a bit slow.

But as the world's leading superpower, the United States was the only superpower with multiple strong powers in 2009. Shouldn't it be able to control the spread of the flu?

However, two months later, the H1N1 flu showed a global trend.

Zhang Jianping was speechless, but he could only accept reality and follow his friend Wang Qiang's advice to invest in flu-related stocks.

"Have you collected enough shares? The price hit the daily limit so quickly. I thought you would accumulate shares for another two or three days," Wang Qiang asked.

He knew that Zhang Jianping had been suppressing Hualan Biological's stock price during this period, maintaining a sideways trading pattern to accumulate shares, and he himself was also accumulating shares, closely following the other party's pace.

"Over the weekend, the H1N1 flu concept was hyped up so much that I couldn't resist. Plus, with Rhine Biologics and Jianfeng Group vying for the top spot, I also wanted to take a bite out of their profits."

Zhang Jianping smiled and poured Wang Qiang a cup of tea.

The desk in his study is a custom-made office tea table, with one side for watching TV and the other for making tea.

"You haven't raised enough funds?"

Zhang Jianping asked a question in return.

Wang Qiang took a sip of tea and said calmly, "I went all in a long time ago, you know that, I'm just surprised you raised the price so quickly."

"I'm afraid you'll use leveraged financing."

"I wouldn't dare. If you crash my account, I'd really be a flying man."

"I wouldn't smash anyone else, I wouldn't smash you. If you're my brother, I'll always call you if anything happens."

After a brief chat, Wang Qiang asked, "What are your next steps? To seize the hype surrounding the H1N1 flu?"

"Pretty much. They're hyping up shikimic acid, and I'm hyping up the H1N1 flu vaccine. Who the market funds follow is up to fate."

Zhang Jianping seemed to be going with the flow, but his eyes were full of confidence.

Unlike Xu Xiang, who is known for his flamboyant and high-profile actions, he is relatively quiet, much like a cheetah that, when it strikes, will surely kill.

"Then you'd better be careful. Xu Xiang is notoriously vengeful, so it's best to..."

Before Wang Qiang could finish speaking, Zhang Jianping interrupted him, saying, "He holds grudges. If he can smash my plan, then he's really something."

Other speculative investors may be afraid of Xu Xiang, but Zhang Jianping's reputation as the "leader" among them is well-deserved.

……

While Zhang Jianping and Wang Qiang were enjoying tea and chatting, the A-share market, which had entered its midday break, was already flooded with various news headlines.

Shocking! Top-tier speculative investor Zhang Mengzhu makes high-profile purchase of Hualan Biological, triggering a general rise in H1N1 influenza concept stocks!

"A late-day surge of tens of millions, with Zhang, the industry leader, forcefully pushing the stock to its daily limit; can Hualan Biological succeed Rhine Biological?"

The capital market is in turmoil again! A long-established vaccine company attracts speculative capital, with 30 lots of buy orders strongly locking in the price at the daily limit!

Eastmoney's "Hot Money News" channel was flooded with posts by "Master Zhang," and the stock of Hualan Biological also came into the view of retail investors.

[Green Grass Ointment]: Has Leader Zhang finally made his move? I knew he wouldn't let the H1N1 flu hype go to waste.

[Yuedong Electric Light]: My God, if Alliance Leader Zhang gets involved, then who will the market funds follow? And if I'm not mistaken, Hualan Biological is a blood products company.

[Past Events]: No, no, no, Hualan Biological also has a subsidiary that produces vaccines. Xu Xiang is promoting shikimic acid, and Zhang Mengzhu is laying out influenza vaccines. The two big shots are about to clash! Zhang Yang, who was far away in Jianggan District of Hangzhou and had been watching the market closely, naturally saw the abnormal activity alert of Hualan Biological and immediately went online to search for the basic information of this stock.

Hualan Biological, officially known as Hualan Biological Engineering Co., Ltd., was established in 1992 and its main business is the research and development and production of blood products.

In 1998, it became the first company in the blood products industry to pass GMP certification and was recognized as a national "Torch Advanced High-tech Enterprise".

From 1999 to 2002, Hualan Biological was already proficient in producing a variety of blood products, such as "freeze-dried human prothrombin complex", "freeze-dried human coagulation factor VIII", and "human hepatitis B immunoglobulin", and obtained approval numbers and launched them on the market. It also established a postdoctoral research station.

In 2004, Hualan Biological was listed on the Shenzhen Stock Exchange's SME board, and in 2005, it invested in the establishment of Hualan Biological Vaccine Co., Ltd., extending its business from blood products to vaccine production.

"The H1N1 flu vaccine?" Zhang Yang frowned slightly, suddenly feeling a bit of a headache.

He has been paying attention to listed companies related to the flu vaccine concept, but he had never thought of making any early investments in them.

Why not plan ahead?

Based on past life memories, the flu vaccine is seen as a "successor," a concept that emerged after the hype surrounding shikimic acid.

Currently, Rhine Biologics and Jianfeng Group are still competing for the top spot in shikimic acid. The sudden emergence of Hualan Biologics has surprised not only Zhang Yang, but also Liao Guopei, Chen Sanrong, Ma Xinqi, and Sun Guodong, who are all in a state of brainstorming.

"This market is a mess."

Chen Sanrong, far away in Shenzhen, was completely dumbfounded. He thought shikimic acid was the main short-term trend, but unexpectedly, a flu vaccine emerged.

Your shikimic acid synthesizes oseltamivir, which can inhibit the replication of the H1N1 virus, and my flu vaccine can also prevent it!

"Xu Xiang was troublesome enough, and now there's Alliance Leader Zhang too. To hell with being attacked from both sides." Liao Guopei from Chancheng looked worried; the situation was gradually getting out of control.

Still on Jiefang South Road in Ningbo, Ma Xinqi, Sun Guodong, and other speculative investors from Galaxy Securities' business department stared at each other, unsure of what to say.

After a half-minute silence, Sun Guodong broke the silence, saying, "It's one thing for the Shadowless Kick to intercept the dragon, but for Alliance Leader Zhang to try and grab the short-term H1N1 flu concept is treating us like dirt!"

"I just looked at the stock chart of Hualan Biological. It carried out a stock transfer on May 6, with 10 shares converted to 6 shares and a dividend of 2 yuan per share. The stock price fluctuated significantly. It is very likely that Zhang Mengzhu took this opportunity to absorb a large number of shares."

Ma Xinqi analyzed.

It is worth mentioning that "10 shares converted to 6 shares and a cash dividend of 2 yuan per share" is a dividend plan of listed companies, and it also has the function of "stock split".

In layman's terms, a "10-for-6" stock split means that a listed company converts its capital reserve into share capital. Shareholders do not need to spend any extra money; for every 10 shares held, they can receive 6 new shares. For example, if a shareholder originally held 100 shares, the stock split would result in 160 new shares.

Assuming Hualan Biological's total share capital is 10 million shares, worth 1000 billion yuan, then its share price is 100 yuan per share.

After the "10-for-6" stock split, the company's total share capital will become 1600 million shares, with no change in value. The only change is the share price, which will be 62.5 yuan per share instead of 100 yuan.

Don't underestimate the fact that a stock price of 100 yuan has become 62.5 yuan; this actually greatly lowers the investment threshold for investors.

Because A-shares can be purchased in lots of 100 shares, also known as 1 lot.

If the stock price is 100 yuan, one lot is 10,000 yuan, and the entry threshold for this stock is also 10,000 yuan.

However, if the stock price becomes 62.5 yuan, the capital for one lot becomes 6250 yuan, which significantly lowers the entry threshold.

This is why some high-priced stocks try to "split their shares"—high entry barriers are not conducive to retail investors.

至于“10转6派2”的2，则是按原先的10股计算，派发2元现金红利，但其实还是派发股民的钱。

Because the stock price will drop by the same amount the cash is distributed the following day.

If the stock price can recover, that's fine. But if it continues to fall, you'll have to pay dividend tax if you want to sell.

This is why, unless absolutely necessary, many experienced stock investors will not buy stocks that are about to pay dividends. Only new investors see that listed companies are about to pay dividends, think they can get a bargain, and rush to buy them. As a result, they don't make any money, but instead pay dividend tax to the country.

……

As soon as Ma Xinqi finished speaking, the other speculators in the VIP room began to discuss among themselves.

"If you don't understand, just ask: Does Hualan Biological have a vaccine to prevent H1N1 influenza?"

"I've heard that neither the United States nor Mexico has developed a preventative vaccine. It's unlikely that Hualan Biological could develop one so quickly, right?"

"Oseltamivir, synthesized from shikimic acid, is an internationally certified anti-influenza drug. I don't think Hualan Biological can turn the tide."

"That's not entirely true. H1N1 influenza has now entered Asia. If Hualan Biological has related research and development, Zhang Mengzhu's hype might actually make him a fortune."

With Xu Xiang not in the VIP room, the members of the Ningbo Daredevils were undecided and leaderless.

At this moment, Xu Xiang was driving to Huajin City in Jiangsu Province. The headquarters of Jianfeng Group is located at No. 88 Wujiang East Road, Huajin City.

Since Jianfeng Group is a family business, with the top ten shareholders holding 62% of the shares and the remaining 38% scattered among retail investors and speculative funds, and there is no controlling shareholder, if he wants to crash Jianfeng Group, he can only target the top ten shareholders.

But halfway through the drive, Ma Xinqi called.

"What is it, Brother Ma?"

"Alliance Leader Zhang has also joined the fray."

Ma Xinqi briefly summarized what had just happened, then asked for opinions: "What do you think we should do now?"

"..."

silence!

Xu Xiang fell silent again!
At this moment, he began to wonder if he was having bad luck this year, since Liao Guopei had appeared and then Zhang Jianping had suddenly appeared.

"They've teamed up against me?"

Xu Xiang fell into self-doubt.

He reviewed the targets he had previously traded and realized that he had never had any conflicts with Liao Guopei or Zhang Jianping. They all tacitly cooperated to fleece retail investors and make a fortune.

Now that everyone is coming after him, Xu Xiang is really starting to lose his composure.

Seeing Xu Xiang remain silent for so long, Ma Xinqi felt a little guilty and suggested, "Why don't we just forget about it and discuss it with Liao Guopei to boost the Jianfeng Group together?"

He added immediately after saying that, "They're small and don't make much money; we take the lion's share."

If Zhang Yang and Liao Guopei were snatching food from a tiger's mouth, competing with Xu Xiang, Sun Guodong, and other speculative investors for the leading stock in the shikimic acid concept, then Zhang Jianping was taking everything, even trying to steal the pot from Xu Xiang, showing just how big his appetite was.

Furthermore, after Rhine Biologics' "Announcement on Abnormal Stock Price Fluctuations" clarified the rumors, most funds in the market actually know that it is not a leading producer of shikimic acid.

However, with the "Xu Xiang concept" as a boost, a lot of speculative funds thought that they would not be the last ones left holding the bag.

"Damn it all! First Jianfeng Group, then Hualan Biological, they're all bullying me!" Xu Xiang was increasingly annoyed, and then asked:

“Let’s select a new target, preferably one that fits the H1N1 flu concept, and create a leading company in that related concept.”

"But…"

"That's all for now, I'm driving."

Ma Xinqi wanted to say something more, but Xu Xiang interrupted him directly.

In his view, Liao Guopei was a liar and not worth cooperating with.

Whether it was Liao Guopei who deceived him or Zhang Jianping who wanted to take credit for him, Xu Xiang wanted to settle scores with them one by one. Otherwise, who would still recognize him as the "chief" in the future?

(End of this chapter)