Those Years When I Was Forced to Top the Forbes List

Chapter 116 The Proof of the Landslide... Changing History

Eight forty.

Eight fifty.

Nine o'clock.

The office lobby was noisy as all the traders who had come for training were checking and compiling various information about "Baosteel warrants".

"Baosteel's share reform payment was 2.2 shares for every 10 shares held, plus 1 warrant, totaling 388 million lots, or 3.88 million warrants. The total market value is no more than 490 million, with about 70% held by institutions. The selling pressure will not exceed 200 million."

"This morning, six financial websites issued risk warnings, and three popular stock forums expressed opposing views, with the vast majority of investors holding a positive outlook."

"It's highly likely that the stock will hit its daily limit up this morning."

"We'll know what the institutions expect by looking at the turnover rate later."

"If the turnover rate is less than 20% half an hour after the price is locked at the limit up, it means that institutions are reluctant to sell, and we can continue to place buy orders on the limit up."

"Either we have to make a large volume today and move all the underlying positions to over 1 yuan, then it will be safe when the market opens tomorrow."

...

The information Xu Jin gathered almost entirely boosted Chen Xuebing's confidence, all based on the premise that "the stock will open at its daily limit today."

After all, if Chen Xuebing thinks the price is too high and decides not to do it, he will have lost 30 yuan in "information fees" for nothing.

The loss of 30 yuan will also be attributed to him.

Chen Xuebing closed his eyes to think, and as he heard the information coming from all directions, his resolve gradually strengthened.

He took out his computer and typed in a series of numbers.

1.263×0.9.

It equals 1.1367.

"1.137, place an order during the opening auction, go all in."

Everyone was somewhat shocked when he made the decision.

The opening auction is a "dark mode"; before the price is announced, no one knows where the price has fluctuated to.

If the opening price during the call auction is lower than the order price, all orders will be executed.

If the opening price is indeed the limit-up price, it means that most people traded at the limit-up price. The remaining orders are to see if there are any orders outside the limit-up price. If there are, whoever's order has the highest price will get priority to buy.

The limit-up price was only 1.263, so were people buying up stocks in the dark at 1.137?
The exchange sets a benchmark price of 0.688. If institutions sell too much and there aren't enough buyers, the opening price may be lower than the benchmark price!
If that's the case, at least half of the losses will be incurred at the opening!

Xu Jin was starting to lose confidence.

"Mr. Chen...aren't you going to wait until the opening price is clear before taking a look? Are you really going to buy everything in the dark? Actually, we could try our luck by offering a low price during the bidding period."

Chen Xuebing smiled and said, "Since we're predicting the opening price will be the limit up, how can we possibly buy up shares at 90% below the limit up price? If institutions and big players dare to set the limit up price at 80%, we have to be bolder than them."

After saying that, he stood up.

"I've set the entry price, and the stop-loss price is half of the position. As long as the opening price is above 0.57, you can play. The rest is up to you."

Xu Jin frowned and hesitated, "Mr. Chen, is there someone else's money in the account? Why don't you... make a call and ask?"

Chen Xuebing chuckled: "Most of the funds are mine. Besides, the die is cast, what's there to ask? If you're going to gamble, don't try to play it safe. Just operate with confidence and don't let any pressure affect your judgment. I'll take responsibility if the sky falls."

Mr. Chen's magnanimous words reassured everyone.

Everyone gathered around, watching Liu Zengcheng, the trader.

The trader, Xu Jin, then selected one of his best students from among the ten traders to place a claim.

"Teng Kai, you're in charge of reporting the short positions. This warrants opportunity is one you'll only get a few times in your life! Watch Manager Liu's operations closely and learn from him!"

"Yes!"

Most of the traders were veterans and athletes, and their responses were loud and clear.

Liu Zengcheng rarely heard Xu Jin's approval. He took a deep breath, smiled, and opened the 580000 interface, which displayed a gray benchmark price of "0.668—".

Ren Ying, Yu Yi, Wu Zisheng, and Yin Xin all went to the back of the computer area to watch quietly.

At 9:15, a series of keyboard clicks sounded.

"1.137, 64,200 lots, auction order!"

Go all in.

After that, it was just a matter of waiting quietly.

Everyone was calculating in their minds how much money they would make if the 880 million shares hit the daily limit, and how much they would make if they sold half of their holdings.

The employees all hope that the boss makes money so that they can continue to work in this comfortable environment.

“T+0, it’s been nine years, hasn’t it?” Wu Zisheng walked up to Xu Jin and asked.

"The stock market has been around for ten years, and warrants for nine," Xu Jin sighed.

Since January 1, 1995, the stock market has implemented the T+1 system, meaning that stocks bought on the same day can only be sold the following day.

At the end of June 1996, the China Securities Regulatory Commission (CSRC) suspended warrant trading.

After that, the stock market no longer had T+0 trading, where you could buy and sell at the same time.

The energy that stock market investors have accumulated over nine years may all be unleashed in this T+0 warrant.

At 9:25, Hong Yongqiang appeared at the company entrance.

"Xiao Chen, it hasn't opened for sale yet, has it?"

He spoke calmly and unhurriedly, saying that of the 880 million, he only owned 100 million, so winning or losing didn't matter much.

He came only because he was worried that Chen Xuebing would lose all his chips.

Chen Xuebing went up to him, poured him a glass of water, and said with a smile:
"The order has already been placed."

"Place orders?" Hong Yongqiang was a little surprised. "Don't you check the market? How much are you placing?"

"1.137."

The figures reported by Chen Xuebing astonished Hong Yongqiang, who had been closely following information on warrants:
"What?! Isn't it 0.668?"

Chen Xuebing waved his hand: "Don't ask anymore, let's wait for the results."

...

At 9:29, everyone held their breath.

Xu Jin, in particular, was manipulating the mouse across the keyboard of his computer, seemingly lost in thought.

"Hoo..." Xu Jin suddenly let out a long sigh.

No compensation was paid.

Liu Zengcheng's connection froze, so he quickly refreshed the page.

Teng Kai's eyes lit up, and he shouted, "Opening price! 1.263! Limit up!"

"Yay!!" Everyone erupted in thunderous cheers.

Liu Zengcheng frowned and shouted:
"Shut up! What's there to yell about?!"

As he spoke, he quickly glanced at the back-end account, then breathed a sigh of relief and said to Xu Jin opposite him:

"Got it! But the price was too low, so we only managed to get 41,000 lots! Most of the trading was still done at the daily limit up!"

Only then did Chen Xuebing, Hong Yongqiang, and Wu Zisheng finally smile.

A stock hitting its daily limit doesn't mean you've won; you only win if you actually acquire the shares.

Hong Yongqiang hurriedly asked, "1.263, how much money did you make?"

Chen Xuebing shook his head.

But Ren Ying, who was standing next to her, had already quickly entered the result on the computer: "100 shares per lot, 410 million shares, price difference 0.126, 516600 yuan."

Hong Yongqiang's eyes lit up.

"You made 50 right off the bat? That's impressive!"

Chen Xuebing raised his hand again and shook his head: "This has only just begun, don't make a fuss."

Hong Yongqiang reluctantly shut up.

Liu Zengcheng frowned as he stared at the trading screen and exclaimed, "The buy orders are getting higher and higher, 6 lots already!"

"Limited orders" are buy orders placed on the upper limit after the market opens. If someone sells, those buy orders will be executed.

They're trying to make money from market fluctuations.

Xu Jin shook his head: "Wait, 4 lots of chips is too few, only 1% of the total market. It's pointless to make a move now. Once the number of buy orders reaches a certain level, institutions will step in. We must wait for the institutions to completely break through the limit up before we follow suit and sell off."

"I still have 360 million in hand. If the institutions open the market, should I buy up all the shares first to build up my strength?"

"Look at the intensity of the trading."

After Xu Jin finished speaking, the hall fell silent as everyone waited quietly.

For half an hour, the stock traded sideways at its daily limit up, with a turnover rate of less than 7%. Almost no one was selling, and the number of buy orders continued to rise, reaching 10 lots.

In other words, there are 1263 million yuan of funds waiting to be invested.

Chen Xuebing kept refreshing the information online. There were already seven or eight reports about Baosteel warrants jumping to the daily limit. The major stock forums were in high spirits, filled with complaints about not being able to buy them and calls for people to be picked up by a car.

At 10:20, when the order book reached 12, more than a dozen large orders of 9999 suddenly appeared on the trading list.

"It's open!" "1.26!"

"1.253!"

"1.248!"

Teng Kai kept loudly announcing his offers.

Every drop in price sent ripples through everyone's emotions.

Xu Jin's smile grew wider and wider, until at 1:239, he shouted:
"Take the entire remaining balance!"

Liu Zengcheng's keyboard suddenly clicked, the downward trend stopped and began to rise slightly. When he shouted "Full position, 62,000 lots", the price was pulled back to 1.253, showing the ability of 3.6 million to push up the price.

After a small surge, sentiment began to recover.

Xu Jin then issued another instruction: "Start selling half of your positions at 1.259."

Each integer is a psychological stepping stone.

With 880 million in funds, there's not much control over the market. Even in such a small market, you can only create a small wave in a short period of ten seconds.

However, the market opened at its peak this morning, and if prices fall, the downside is significant, causing considerable anxiety among many.

The more than 30,000 sell orders at 1.259 were mostly absorbed within ten seconds, but after several large sell orders of 1,000 lots each, the absorption rate slowed down significantly.

"There's no pressure below! Smash! Smash right up to the buy orders! Smash as low as you can!" Xu Jin roared.

This decline is much faster than the previous one.

"1.256!"

"1.247!"

"1.233!"

"That's it! There were 20,000 lots of buy orders at 1.229, but I only have 10,000 lots left. I can't go any lower!"

Liu Zengcheng's voice made Xu Jin swallow hard.

If the price doesn't drop below this level, then they have nothing to sell today.

Only with a sufficiently large space can they have the opportunity to profit.

But if the price rises now and the market closes again, they won't even have any chips left to play the game tomorrow.

"Eat it..." Xu Jin hesitated for a moment, just about to speak.

"It's open! We have a big order to ship!"

"1.226!"

"Throw! Throw! Three hundred or five hundred times, keep going!" Xu Jin shouted.

This downward wavy line stood out conspicuously on the chart of a stock that had hit its daily limit up, finally triggering some selling pressure.

The price continued to decline, reaching 1.11, a drop of nearly ten points from the limit up. The annoying feeling could be felt even from the chart curve.

At this moment, Xu Jin also felt that the price was about to bottom out, because he knew that some big players claimed to be buying at a price of 1 yuan, but today's market performance was beyond expectations, and those people would definitely not make a move at a round number.

"Buy half of your position at a low price!"

"Why bother with half-position trading for T+0? Let's go all in." This morning, Liu Zengcheng had his first thought.

"…OK."

This time, however, Liu Zengcheng's buying action failed to reverse the situation, and prices continued to decline.

"An organization has shipped the goods! 1.092!"

"1.083!"

"Old Xu, what do you think is the selling pressure level for most institutional investors holding positions?" Liu Zengcheng suddenly asked.

Xu Jin thought for a moment and said, "A piece nearby."

As he said this, a thought struck him.

Perhaps today we can really turn things around completely.

The main institutions holding warrants are all major shareholders of Baosteel's circulating shares. They need to buy 10 shares, which is 46 yuan of Baosteel stock, to be allocated 2 shares plus one warrant. Any shareholder holding more than one million warrants is a large institution with more than 50 to 60 million shares.

Holding 50 to 60 million shares in a single stock demonstrates unimaginable overall strength.

These institutions include investment companies, securities trusts, and even investment departments established by state-owned industrial enterprises with spare funds. They don't even have professional traders.

The selling strategy of this level of organization is usually decided in the morning meeting the day before or on the same day. Once the strategy is set, it must be executed according to the rules. Otherwise, the company will not praise you if you make money, and the person in charge will have to pay for any losses.

If the price does reach the selling point of some large institutions, a massive amount of warrants will be released into the market.

They've already stirred up some emotions, so maybe it's worth a try.

"Then let's use the half of our available funds to pave the way for the big orders and break up those small, scattered orders!"

"it is good!"

Upon receiving the order, Liu Zengcheng kept a close eye on the order book and launched an attack on the small buy orders at those chaotic price levels.

The power of T+0 is fully demonstrated at this moment.

Many newly placed orders, upon realizing the situation is not favorable, are withdrawn after incurring transaction fees, waiting for a better opportunity.

During the decline, several large sell orders of 10,000 lots were encountered. Liu Zengcheng sold small lots near these large orders to maintain a low position until the large orders were broken, and the price continued to fall.

The whole process sounds long, but it only takes about five minutes.

For retail investors, it was a heart-stopping five minutes.

Unsuspecting retail investors saw the warrants, which had been priced at 1.26, being hammered down to around 1.05, resulting in a loss of 16 points. They cried out that a "scythe had come" and turned to flee for their lives.

At 1.05 and 1.03, large sell orders were placed again.

The turnover rate surged to 39.2%.

Liu Zengcheng has sold all his stock. The 50 yuan profit he made at the opening has now dwindled to less than 10 yuan, and their principal has become the auspicious number of 888 million yuan.

Prices did not stop falling; instead, they fell faster and faster. Every small rebound was immediately followed by another drop, and the buy orders could not support the price at all.

The people in the office lobby were completely silent, fully experiencing the turbulent waves of the market.

Chen Xuebing and Hong Yongqiang sat quietly in front of a computer, watching them operate.

Hong Yongqiang didn't quite understand.

"Why are you still trying to drive the price down? If you can't win back the fans' emotions, then all this effort will have been for nothing?"

Chen Xuebing smiled and said, "This is called 'operation.' Before entering the venue, you have to calculate how many audience members there are for this paid performance, how many people are watching. Only when the accounts are clear can the battle begin. Their job these past two days has been to calculate the accounts."

He spoke casually, but as he watched the prices on the screen continue to decline, he was secretly amazed.

He had a gut feeling.

His 880 million that came in and went out may have changed the history of this warrant to some extent.

The price rose and fell several times, and finally at 11:15, a massive order of 150,000 lots suddenly appeared at the 0.899 yuan level.

15 lots is not an insurmountable barrier, especially with continuous institutional buying.

However, the order book at this price level is very firm, and it just won't drop below 100,000, which seems to indicate that some forces are not allowing the price to fall below 0.9 yuan.

"The morning session is almost over. Someone is going to push the price up. Buy in at a low price with all your funds!" Xu Jin gave the order.

A large order of nearly 100,000 lots appeared around 0.9 yuan. After several sell orders were exhausted, there were no more sell orders above, and the price was swept all the way down to 0.95 before the entire position was bought up.

Of course, this surge wasn't solely driven by them; others were also involved, and after reaching 0.95, it broke through to the next level.

At 11:30, the morning closing price was 0.99, with a turnover rate of 50%, meaning that half of the warrants were sold off this morning.

Their 888 million was invested all at a price of 0.92, turning into 955 million.

In one morning, starting with 880 million, I earned 75.

It seems they only made a little over 200,000 yuan from the initial 516,000 yuan, but the price has changed. It's no longer today's limit-up price, so they've won the opportunity for continued growth today.

……

It was 2:45 PM.

Yu Chunyin, exhausted after a long day, appeared at the office door.

Behind him were Luo Min and a middle-aged man in a shirt and tie.

When Chen Xuebing saw Luo Min enter, his smiling eyes sharpened, and he turned and roared:
"Yin Xin!"

"Yes, yes, Mr. Chen!" Yin Xin looked away from her computer and ran over.

"What are you doing? I told you to guard the gate, how come just anyone can come in?"

"Ah!" Yin Xin was scolded and quickly ran to Yu Chunyin, asking hesitantly, "President Yu... what's wrong?"

Chen Xuebing rolled his eyes in exasperation: "You know that's General Manager Yu? The two behind him!"

At this moment, Yu Chunyin turned around and glanced at Luo Min, whose expression was uncertain.

"Did you hear that? This is my nephew's company. You're not welcome here."

Luo Min glared angrily: "What's wrong with your nephew's company? He's one of the people I'm suing!"

(End of this chapter)