Becoming the King of Bottom Fishing After Going All-In on A-Shares

Chapter 109 Exchange Students

At 10:30, the Hang Seng Index's gains narrowed to 0.4%.

China National Building Material Co., Ltd. fell to a low of HK$1.88, with retail selling temporarily outweighing institutional buying.

But every time the price drops to 1.88, a large number of buy orders flood in, supporting the stock price.

China Construction Bank 3.23, Industrial and Commercial Bank of China 3.25, Bank of China 2.09.

Wen Zhiyu stood next to Lu Chenzhou, her fingers writing down each number in her notebook.

She turned her head and glanced at Lu Chenzhou. He sat there, motionless, like a stone.

At 11:00 a.m. in the Morgan Stanley trading room, Richard Gray looked at the intraday chart of China National Building Material, where the stock price fluctuated between 1.88 and 1.95.

"How much of your portfolio is still empty?" he asked.

The assistant flipped through the records: "China National Building Material has 400 million shares left, China Construction Bank has 800 million shares left, Industrial and Commercial Bank of China has 600 million shares left, and Bank of China has 400 million shares left."

"Keep leveling; it must all be cleared today."

The market closed at 11:30 a.m.

The Hang Seng Index closed at 12780.32 points, up 78.11 points, or 0.61%, with a half-day turnover of HK$438 billion.

China National Building Material closed at HK$1.89 at midday, up 2.16%.

China Construction Bank shares were priced at HK$3.24, up 0.31%.

Industrial and Commercial Bank of China (ICBC) shares were HK$3.26, down 0.31%.

Bank of China, HK$2.09, unchanged.

China Shenhua Energy Co., Ltd. rose 8.50% to HK$10.85.

Anhui Conch Cement rose 5.70% to HK$17.25.

Zhang Yixing glanced at the intraday chart: "Shenhua and Conch are the strongest, while building materials are the weakest."

Xia Yaozong stretched and asked, "Will it continue to fall this afternoon?"

"It won't drop much," Zhang Yixing said. "Foreign investors are closing out their positions and buying, while QFIIs are building positions. With these two types of buying support, it won't fall too far."

Lu Chenzhou stood up and picked up the insulated bag on the table.

"Have a meal."

At noon, on a bench at the entrance of the science park.

Lu Chenzhou and Wen Zhiyu sat side by side, each with a boxed lunch in front of them.

"Are foreign investors closing out their positions today?" Wen Zhiyu picked up a piece of braised pork and placed it in Lu Chenzhou's lunchbox.

Lu Chenzhou glanced at the piece of meat, then ate it. "Mmm."

"Closing a position is buying, right?"

"right."

"Then why hasn't the stock price risen much?"

Lu Chenzhou picked up a piece of broccoli and slowly chewed it.

"Because some people are selling, retail investors who followed the trend yesterday are taking profits today. Foreign investors are buying, and retail investors are selling. The two forces are offsetting each other, and the stock price is moving sideways."

He paused for a moment, then said, "Once the retail investors have sold off their shares, the stock price will rise."

Wen Zhiyu looked at him, her eyes shining.

"You knew yesterday that the China Securities Regulatory Commission was going to investigate?"

Lu Chenzhou said, "It's no secret that the China Securities Regulatory Commission (CSRC) is visiting major banks."

"Then why didn't you tell us?"

"There have been rumors about this in the market for a long time, but some people are just pretending not to see them."

Wen Zhiyu stared at him for two seconds, then smiled.

"You are a very observant person."

Lu Chenzhou didn't reply; he lowered his head and continued eating.

In Goldman Sachs' Asian trading room, at 1 p.m., Wei Zhexuan sat in his office with a summary of the morning's closing positions in front of him.

China National Building Materials: 600 million shares were liquidated.

China Construction Bank: 800 million shares were liquidated.

Industrial and Commercial Bank of China: 500 million shares were liquidated.

Bank of China: 400 million shares were liquidated.

Cheng Jiajun stood to the side and asked cautiously, "Boss, will the China Securities Regulatory Commission continue its investigation?"

"I don't know." Wei Zhexuan's voice was deep. "But regardless of whether they investigate or not, the empty warehouses must be cleared out."

Hong Kong stocks opened at 1:30 p.m.

On the order book, foreign investors' buy orders to close out their positions are still ongoing.

QFI's buying activity continues.

The two buying orders combined and began to slowly overwhelm the selling pressure from retail investors.

At 2 PM, Heng's fingers turned red.

China National Building Materials rebounded from a low of 1.88, reaching 1.90, 1.92, and 1.94.

China Construction Bank: March 3.24, March 3.26, March 3.28.

Industrial and Commercial Bank of China (ICBC) on March 3.26, 3.28, and 3.30.

Zhang Yixing stared at the order book: "Retail investors have almost sold off their shares, and buying is starting to gain the upper hand."

Xia Yaozong leaned back in his chair: "So, foreign capital liquidating their positions is actually helping us carry the sedan chair?"

Zhang Yixing nodded: "You can understand it that way. Their closing out and buying is itself a buying opportunity."

QFIIs are also buying; with both types of buying pressure combined, the stock price naturally rises.

In Goldman Sachs' Asian trading room, at 3 PM, Cheng Jiajun was watching the order book. China National Building Materials had returned to around 1.95.

"Boss, how much empty warehouse space is left for building materials?"

Wei Zhexuan checked: "There are 400 million shares left, listed at 1.95, close them all out."

Cheng Jiajun typed on the keyboard, and a buy order for 400 million shares was placed.

A few seconds later, the deal was done.

"Boss, the empty warehouses for building materials have been cleared."

Wei Zhexuan leaned back in his chair and closed his eyes.

All closed. Goldman Sachs had established a short position of 1000 million shares in China National Building Material, and today it was all closed out. This includes China Construction Bank, Industrial and Commercial Bank of China, and...

The total amount of liquidated positions in four Bank of China stocks was approximately HK$10 billion.

What about the other major banks?

Morgan Stanley, Citigroup, and UBS are also closing out their positions. Combined, these four firms have closed out at least HK$40-50 billion today.

By 3:30 p.m., the Hang Seng Index had extended its gains to 1.5%.

There were signs of a buying frenzy at the end of the trading day.

Foreign investors' liquidation is nearing completion, while QFII's (Qualified Foreign Institutional Investors) position building continues.

Buying orders are increasing, while selling orders are decreasing.

At 4:00 PM sharp, the closing bell rang.

The Hang Seng Index closed at 12925.53 points, up 223.21 points, or 1.76%.

The intraday high was 12980 points and the low was 12720 points, with a total range of 260 points.

Wen Zhiyu wrote down the final numbers in his notebook: Hang Seng Index 12925.53, +1.76%.

Building materials 1.98, +7.03%.

China Construction Bank (CCB) 3.32, up 2.79%.

ICBC 3.33, +2.15%.

Bank of China 2.14, +2.39%.

Shenhua 11.68, +16.80%.

Conch 18.10, +10.91%.

After the market closed, Lu Chenzhou brought up his holdings interface.

Holding stock: China National Building Material (HK3323)

持股数量：11250万股成交均价：1.60港元收盘价：2.00港元持仓市值：22500.00万港元当日盈亏：+1687.50万港元（+8.11%）

Unrealized profit/loss: +4500.00 million HKD (+25.00%)

Holding stock: China Construction Bank (HK0939)

持股数量：18867.92万股成交均价：2.65港元收盘价：3.18港元持仓市值：60000.00万港元当日盈亏：—943.40万港元（—1.55%）

Unrealized profit/loss: +10000.00 million HKD (+20.00%)

Holding stock: Industrial and Commercial Bank of China (HK1398)

持股数量：17793.59万股成交均价：2.81港元收盘价：3.23港元持仓市值：57473.30万港元当日盈亏：—533.81万港元（—0.52%）

Unrealized profit/loss: +7473.30 million HKD (+14.95%)

Holding stock: Bank of China (HK3988)

持股数量：28409.09万股成交均价：1.76港元收盘价：2.02港元持仓市值：57386.36万港元当日盈亏：—1988.64万港元（—3.35%）

Unrealized profit/loss: +7386.36 million HKD (+14.77%)

Holding stock: China Shenhua (HK1088)

持股数量：1902.50万股成交均价：8.41港元收盘价：11.16港元持仓市值：21231.90万港元当日盈亏：+2206.90万港元（+11.60%）

Unrealized profit/loss: +5231.90 million HKD (+32.71%)

Holding stock: Conch Cement (HK0914)

持股数量：1052.63万股成交均价：15.20港元收盘价：18.06港元持仓市值：19010.50万港元当日盈亏：+1831.58万港元（+10.66%）

Unrealized profit/loss: +3010.50 million HKD (+18.82%)

Total market value of holdings: HK$237602.06; Total profit/loss for the day: +HK$2260.13 (+0.96%)

Total unrealized profit/loss: HK$37602.06 (+15.39%)

Zhang Yixing stared at the numbers on the screen, speechless for a long time.

Xia Yaozong leaned back in his chair and let out a long sigh: "I made a small profit of over 2200 million today."

Wen Zhiyu looked at Lu Chenzhou: "Brother Lu, has the foreign investment been liquidated today?"

Lu Chenzhou glanced at the order book: "It's probably about time. Goldman Sachs, Morgan Stanley, Citigroup, and UBS combined have closed out at least HK$40-50 billion today. Their short positions should be almost cleared out."

"What about tomorrow?"

Lu Chenzhou thought for a moment: "The short positions will be closed by tomorrow, and the biggest selling pressure will come from retail investors' profit-taking."

But most retail investors have already taken profits today, so what's left is for prices to rise.

At this point, he added, "The Hong Kong Securities and Futures Commission's move this time is tantamount to sending a signal to the market that malicious short selling will not be allowed."

Those major foreign banks will no longer dare to dump shares as recklessly as before.

After saying that, he packed his things and left work.

Wen Zhiyu followed, and the two disappeared side by side into the sunset at the end of the corridor.

At 4:15 PM in Goldman Sachs' Asia trading room, Cheng Jiajun stood at the door of Wei Zhexuan's office, holding a summary of today's closed positions.

"Boss, all the short positions have been closed out."

"What was the total loss?"

Cheng Jiajun flipped through the records: "Approximately HK$800 million."

Wei Zhexuan remained silent.

800 million is nothing to Goldman Sachs.

But this 800 million is not a good start.

"What about Lu Chenzhou?" he asked. "How much did he earn today?"

Cheng Jiajun calculated: "His unrealized profit increased by about HK$2260 million today, accumulating to HK$3.76 million over two days."

Wei Zhexuan leaned back in his chair, staring at the ceiling, somewhat lost in thought.

If it weren't for the regulators taking action, they could have smashed Lu Chenzhou to pieces.

But there are no "ifs".

At 7 p.m., the lights in room 608 were still on.

Lu Chenzhou didn't leave. He sat in front of the computer, with three screens lit up simultaneously in front of him.

Wen Zhiyu sat to the side, holding a book in her hand, but hadn't turned more than a few pages.

"Will the China Securities Regulatory Commission continue its investigation?" she asked.

"Yes." Lu Chenzhou picked up his water glass and took a sip. "But they're not investigating me. I operate in compliance with regulations. They're investigating those big banks that abuse short selling."

"Does that affect us?"

Lu Chenzhou thought for a moment.

"Yes, there will be a positive impact. The intervention of regulators means that the policy bottom has been reached. Foreign investors will no longer dare to short sell recklessly. Market sentiment will gradually recover, and the stocks we hold will rise."

Wen Zhiyu looked at him but didn't ask any more questions.

She continued reading.

Outside the window, there were no stars in the night sky over Beijing, but the lights of Zhongguancun in the distance turned half the sky orange-red.

Eight o'clock, Renmin University playground.

By the end of October, Beijing was already quite cool, with a dry, chilly wind blowing in from the west.

The lights around the playground were on, illuminating the running track in a white glow. In the distance, the light from the teaching building filtered through the leaves, shattering into fragments on the ground.

Lu Chenzhou and Wen Zhiyu walked side by side on the track at a moderate pace.

Wen Zhiyu changed into a dark gray tracksuit today, her hair was tied in a ponytail, and she wore a brown scarf. Her walking posture was much more natural than a few days ago.

No longer subconsciously hunching my shoulders, my steps have become steady.

She held her phone, on which was a notification about the exchange student program that her advisor had just sent in the group chat.

"Three spots for HKU, four for Polytechnic University, and two for Lingnan University," she read aloud, then handed her phone to Lu Chenzhou.

"The Finance Department allocated two spots separately, one to HKU and one to Polytechnic. I was assigned to HKU and you were assigned to Polytechnic."

Lu Chenzhou glanced at it: "The fact that the Finance Department was able to get two spots this time is already very considerate of us. Your grades are first every year, so it's reasonable for you to go to HKU. It's also normal for me to be assigned to Hong Kong Polytechnic University."

Wen Zhiyu stopped, pulled her scarf down, and revealed her entire face.

The light from the streetlamp fell on her face, and her expression became serious.

Lu Chenzhou.

"Um.

""

"You said that once we got to Hong Kong, I would be your secretary."

"Um.

""

"Then let me ask you, should the secretary stay by the boss's side?"

Lu Chenzhou looked at her and remained silent for two seconds. "Yes."

"I'm at HKU, and you're at Polytechnic University, how can I stay by your side?"

The playground fell silent for a moment.

The wind blew from the west, making the ginkgo leaves swirl on the ground.

Lu Chenzhou didn't speak. He looked at Wen Zhiyu, his eyes shining brightly under the streetlights, as if waiting for an answer.

"You can come over on the weekend," he said.

"What kind of secretary comes over on the weekend?" Wen Zhiyu's voice wasn't loud, but every word was clear.

"Secretaries are needed every day. They answer phones, organize documents, arrange schedules, and handle business with the industry and commerce bureau, banks, and tax authorities. As you said, these are all things a secretary should do."

Lu Chenzhou's lips twitched slightly.

"You have such a good memory?"

"I remember everything you said."

The two stared at each other for a few seconds. Lu Chenzhou looked away first, glancing at the lights in the distance of the playground.

"So what do you want to do?" he asked.

Wen Zhiyu took a deep breath.

"Change it, you go to a science and engineering school too."

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