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

Chapter 133 Making a fortune

Nine o'clock in the evening.

The news of the four trillion yuan stimulus package has been circulating for almost two hours, and the door to dormitory 302 has been knocked on no less than twenty times.

Some people asked if they could still invest money, some asked if they could chase the market on Monday, and some asked if Lu Chenzhou had any inside information.

Zhang Yixing opened the door three times, each time saying "Chen Zhou is not here," but the third time there were seven or eight people standing in the corridor, clearly not believing him.

"He's really not here." Zhang Yixing closed the door, leaned against it, and let out a long sigh.

Lu Chenzhou was indeed not there.

He hasn't come back since he received Wen Zhiyu's call, and his phone is unreachable. I don't know where he's hiding away in peace and quiet.

But the three people left in the dormitory weren't idle either.

Zhang Yixing sat at the table, with four or five financial websites open on the screen, one analysis of the four trillion yuan stimulus package after another, and every comment mentioning the same name.

Xia Yaozong lay in bed, his phone screen lit up, the messages in the investment group were so numerous that he couldn't be bothered to scroll through them.

But he was still watching, not waiting for Lu Chenzhou to say anything.

Lu Chenzhou didn't say anything, and didn't send a single word in the group.

He was watching to see how those who had mocked him back then would now try to make amends.

"Look at this." Xia Yaozong held up his phone, and on the screen was a screenshot of a chat in an investment banking group, which someone had forwarded.

Zhang Yixing took a look and saw that someone in the group had posted Lu Chenzhou's stock purchase record from Friday: Baogang Rare Earth, Sanan Optoelectronics, and Sany Heavy Industry, all fully invested.

There was a few seconds of silence, then someone typed six dots, someone else typed three question marks, and finally someone said, "Is this something a human would do?"

Xia Yaozong put his phone away and smiled.

"These are the same people who called him crazy back then, and now they're saying he did something inhuman. Is he even human?"

Zhang Yixing didn't respond. Yang Cheng leaned against the headboard, holding a book in his hand, but didn't turn the page.

He glanced at Xia Yaozong, then at Zhang Yixing, and his lips twitched slightly.

"Do you think he'll act like nothing happened when he comes back?" Xia Yaozong asked.

Zhang Yixing thought for a moment: "When has he ever acted like nothing happened? He bought the shares on Friday, glanced at the closing bell, stood up, and left. How much money did he make? For a private equity firm, one limit-up could mean 20 million. He glanced at it and left. If it were anyone else, wouldn't they be laughing in their office until midnight?"

Yang Cheng turned a page in the book, speaking softly.

"He's neither excited nor nervous. He just sits there, watches the market, places orders, finishes work, eats, and sleeps, just like he goes to work."

Xia Yaozong rolled over, facing the wall, and muttered, "If I made 40 million in one afternoon, I could run three laps naked on Zhongguancun Street."

Zhang Yixing smiled, and Yang Cheng's lips twitched as well.

Around nine o'clock, the door lock clicked.

Lu Chenzhou pushed open the door and came in, his coat collar turned up, carrying the chill of the outside air with him.

His face was a little white from the wind, but his expression was exactly the same as when he left home in the morning.

He walked to his bedside, sat down, took off his coat, and draped it over the back of the chair.

The dormitory was quiet for about two seconds.

Xia Yaozong was the first to sit up in bed: "You're back?"

"Um."

Why can't I get through to your phone?

"The power is out."

Zhang Yixing turned around, looked at him, opened his mouth as if to say something, but didn't say anything.

He noticed that Lu Chenzhou's lips were a little redder than usual, but he didn't ask.

Yang Cheng glanced at it, then lowered his head and continued reading.

Xia Yaozong didn't notice those details. He leaned halfway out of bed and stared at Lu Chenzhou: "Did you see the news?"

"What news?"

"Four trillion." Xia Yaozong's voice rose half an octave. "Four trillion, don't tell me you didn't know."

Lu Chenzhou took off his shoes and put on slippers.

"understood."

"You know?" Xia Yaozong stared at him. "You went all in on Friday, and then four trillion came out on Sunday, and you 'know'?"

Lu Chenzhou stood up and went to the bathroom to wash his hands, the sound of the faucet running loudly.

He washed his hands, dried them with a towel, hung the towel back up, sat back on the bed, picked up the water glass from the bedside table, and took a sip.

"So what do you want me to say?"

Xia Yaozong opened his mouth, only to find that he didn't know how to answer.

He glanced at Zhang Yixing, who shrugged.

He glanced at Yang Cheng again, but Yang Cheng was reading a book and didn't look up at all.

"No," Xia Yaozong got out of bed, stood barefoot on the floor, hands on his hips, "What were you thinking when you went all in on Friday? How did you know a policy would be released on Sunday?"

Lu Chenzhou put down his water glass: "I don't know."

"you do not know?"

"I didn't know the policy would be released on Sunday, but I knew that below 2000 points was the bottom. I said that at the salon on September 17th."

"So when you bought Sany Heavy Industry shares, were you betting on policy changes?"

"We're not betting on policy; the economy needs to grow, and people need to eat and make money."

"How do you know the infrastructure will be built?"

Lu Chenzhou glanced at him.

"Because exports are down and consumption is down, only investment can still drive growth."

Investment is essentially infrastructure. This logic doesn't require insider information; it can be derived from the data.

Export data, consumption data, and PMI data are all publicly available.

Xia Yaozong was silent for a few seconds: "Then why didn't others push it out?"

"Because most people are looking at candlestick charts."

The dormitory was quiet.

Xia Yaozong stared at Lu Chenzhou, while Zhang Yixing leaned back in his chair, also looking at him.

Yang Cheng turned a page of the book, but his eyes weren't on the page.

After a long while, Xia Yaozong spoke, his voice much lower than before.

"So, when you buy it on Friday, are you worried?"

Lu Chenzhou thought for a moment: "I'm afraid."

"What are you afraid of?"

"I'm afraid I've made a mistake, afraid the market won't recover, afraid there won't be any policies, afraid the market won't recognize it. But despite the fear, I still have to buy. Once I've calculated it, I'm not afraid anymore."

Xia Yaozong stared at him for a few seconds, then slowly walked back to his own bed, climbed up, lay down, and pulled the blanket up to his chest.

He stared at the ceiling, remained silent for a long time, and then said, "You're a real psychopath."

Zhang Yixing smiled, Yang Cheng turned a page of his book, and his lips twitched.

Lu Chenzhou didn't reply. He picked up the water glass on the bedside table, took another sip, and then turned off the light.

"Going to sleep."

There was silence for a while in the darkness.

Xia Yaozong's voice came from under the covers, muffled.

Lu Chenzhou.

"Um.

""

What time are you going to the company tomorrow?

"7:30."

"I'll go with you."

"I'm not going with you."

Xia Yaozong was taken aback, looking at him with confusion: "Huh? Why?"

Lu Chenzhou replied, "I'll go with Wen Zhiyu."

Xia Yaozong looked at him with a sullen expression, while Zhang Yixing and Yang Cheng burst out laughing.

After a while, Xia Yaozong spoke again.

"How much do you think the market will rise tomorrow?"

"have no idea."

Guess one.

"More than 7%."

Xia Yaozong was silent for a few seconds: "7%? The market is up 7 points? Aren't you going to make a fortune?"

"Investors make more money."

Aren't you upset?

"I'm excited, but after the excitement, I need to sleep. I have to get up early tomorrow."

Xia Yaozong didn't ask any more questions, and the dormitory became completely quiet, with only the occasional sound of the wind passing by outside the window.

Zhang Yixing was lying on the top bunk, unable to sleep.

He stared at the ceiling, his mind replaying what Lu Chenzhou had just said.

"Because most people are looking at candlestick charts."

He wondered if he was one of those people who looked at candlestick charts.

All he looked at every day were candlestick charts, financial reports, research reports, and data. He thought he was looking at the fundamentals, but it seemed like he had never seen the things Lu Chenzhou was looking at.

It's not about data, it's about logic; it's not about the present, it's about the future.

Yang Cheng leaned against the headboard, but couldn't fall asleep.

He was thinking about another sentence Lu Chenzhou had said.

"Now that I've calculated it, I'm not afraid anymore."

He wondered just how many things this person had calculated.

Has JD.com calculated this? Has it calculated the four trillion yuan figure? Or does it not need to calculate it at all, because it already knows it?

He didn't know the answer, but he knew one thing: the quietest person in the dormitory was hiding the biggest secret.

Xia Yaozong was also not asleep; he was thinking about his own things.

How many times has his investment multiplied now?

He was too lazy to calculate, but he was thinking about a question: Lu Chenzhou was going to Hong Kong at the end of the month, should he go with him?

His father said he wanted him to go to England because his family had connections and could get him a job at the London School of Economics and Political Science.

But he didn't want to go; he wanted to go to Hong Kong with Lu Chenzhou.

It wasn't because of the money, but because he felt there was something about this person.

He couldn't explain it clearly, but he just wanted to follow along and see.

Let's see how far he can go.

Lu Chenzhou couldn't fall asleep either, not because he was excited, but because he was thinking about tomorrow.

The A-share market will likely see a surge when it opens tomorrow.

He was fully invested, knowing these stocks would rise, but he didn't know how much they would rise or how long they would rise. He only knew that the direction was right, and that was enough.

He turned over, closed his eyes, and fell asleep.

Investment banks are frantically researching JD.com and discussing the reasons behind Lu Chenzhou's investment in it.

They discussed with the secondary stock market analysts whether to follow suit regarding the twenty-three stocks that Lu Chenzhou had bought.

Some investors in the Hong Kong stock market became even more hesitant after learning that Lu Chenzhou hadn't touched his $100 million investment.

More often than not, people are considering whether or not to buy Zhizhou mutual funds.

November 10, 2008, Monday, 8:40 a.m.

The 18th floor of the Renmin University Cultural Building.

In the conference room, Xia Yaozong held a newly printed morning newspaper in his hand. The headline on the front page was "Four Trillion Yuan Ignites Expectations." He read it over and over three times.

Su Qingyuan glanced at the calm young man sitting in the first seat, took a deep breath, and reported to her supervisor: "President Lu, the Zhizhou No. 1 Fund has reached its 150 billion yuan limit, and the No. 2 QD1 Fund has reached its 3 million US dollar limit. Both have been closed for trading."

"150 billion yuan isn't enough to cover the previous twenty stocks, what do you think?"

Lu Chenzhou wasn't surprised, after all, he was someone who had gone all in before the 4 trillion yuan stimulus package was introduced.

It's quite normal that the Zhizhou No. 1 and No. 2 public funds were oversubscribed by investors.

After all, the market rewards those who are prescient and insightful the most.

He plugged in the USB drive, turned on the projector, and a bunch of stock codes appeared on it.

招商银行600036

Kweichow Moutai 600519

CITIC Securities 600030

浦发银行600000

Suning Appliance (002024)

Daqin Railway 601006

Salt Lake Potash Fertilizer 000792

China Shenhua (601088)

工商银行601398

泸州老窖000568

China Railway Construction Corporation (601186)

中国中铁601390

TBEA Co., Ltd. (600089)

Baosteel Co., Ltd. (600019)

Gree Electric Appliances (000651)

Wuhan Iron and Steel Co., Ltd. (600005)

中国平安601318

China Life Insurance (601628)

"That's good too. If we can't buy any more small-cap stocks, then we can buy these large-cap stocks. We can buy whatever we want, and we basically don't need to do anything about them."

The approval process for the new fund is underway and is expected to take about six months.

You can do whatever you want for the next six months.

However, the China Securities Regulatory Commission stipulates that key positions must be staffed by someone. It's okay for you to go out and play during work hours, but it's best to take turns so that you don't all be laid off at once.

By the way, the 150 billion yuan and 2 million US dollars won't arrive until tomorrow, right?

A group of people's mouths twitched. They never expected that they could openly collect their salary and slack off for half a year after just joining a company.

Xia Yaozong coughed twice and glanced at his somewhat tempted colleagues: "President Lu, the money will arrive tomorrow."

But isn't it wrong of you to do it this way?

We're all still young, this is the perfect time to strive and work hard, how can we waste our time?

Lu Chenzhou countered, "Then what do you think we'll do after we've fully invested?"

Xia Yaozong was dumbfounded. The leaders of the China Securities Regulatory Commission had just provided guidance through the window, clarifying that the upper limit for a single fund was 150 billion yuan. Now, if they were to open another fund, they would have to go through the process, from submission to approval, which would take at least half a year.

QDI's fund allocation is also full, with only $3 million remaining.

To increase your credit limit, you also need to submit a report, which takes longer, about a year.

"How about we buy another fund company? That way we can buy stocks again."

Lu Chenzhou glanced at him but didn't say anything.

Su Qingyuan interjected, "President Xia, with the 4 trillion yuan stimulus package, the selling prices of all fund companies have increased by at least five times, and in some cases by more than ten times, with prices generally exceeding one billion yuan."

Xia Yaozong was stunned. He opened his mouth, wanting to say something, but found his mind blank.

A billion? He remembered that when he bought them a few days ago, those small fund companies' shells were only worth two or three hundred million.

It's only been a few days? Lu Chenzhou has made a fortune!

Su Qingyuan continued, "The announcement of the four trillion yuan stimulus package on November 9th completely reversed market sentiment."

Previously unsellable fund company shells are now being snapped up.

The company that quoted 2.5 million last week has now received an inquiry for 12 billion this morning.

Moreover, the sellers might not even sell; they're waiting for the price to continue rising.

Xia Yaozong leaned back in his chair, staring at the ceiling, and remained silent for a long time.

The meeting room was silent for a few seconds.

Zhao Keke sat in the corner, twirling the pen in her hand.

She was doing the math: last month, the purchase was worth 2.5 million, but she didn't buy it then; now it's worth 12 billion, an increase of almost five times.

The four trillion yuan stimulus package hasn't even reached the accounts of real businesses yet; it's already been used to inflate the prices of shell companies within fund management firms.

Sun Hao sat next to her, looking bewildered.

When his father asked him to come for the internship, he told him to study hard.

He learned that the first lesson he learned was that the price of a fund company's shell company increased fivefold the day after the four trillion yuan stimulus package was introduced.

He thought this course was more expensive than all the courses he had taken in his four years of college.

Wen Zhiyu glanced at Lu Chenzhou, thinking about something: if Lu Chenzhou hadn't bought that public offering shell company last month, but had waited until today, he would have had to spend nearly a billion more.

But he bought it, when everyone was pessimistic about A-shares, before the four trillion yuan stimulus package was announced. She looked up at Lu Chenzhou's profile, then looked down again.

Zhang Yixing sat next to Su Qingyuan, copying down the stock codes of the eighteen stocks shown on the projector in his notebook.

China Merchants Bank, Kweichow Moutai, CITIC Securities, Shanghai Pudong Development Bank...

As he copied the stocks, he was thinking: 15 billion yuan, eighteen large-cap stocks, averaging over 800 million yuan per stock.

The money is poured in, but you won't even see a ripple, because the plate is too big.

This is what it truly means to buy something and then not have to worry about it. It's not that I don't want to, it's that I can't.

Su Qingyuan looked at Lu Chenzhou: "President Lu, when do you plan to start the 150 billion investment?"

Lu Chenzhou glanced at her. "We'll talk about it tomorrow."

Su Qingyuan hesitated and said, "President Lu, the leaders of the China Securities Regulatory Commission just called to remind us not to use leverage."

Equity mutual funds are prohibited from using leverage to buy stocks. Although there is no explicit rule, it is an industry standard that we cannot break.

Lu Chenzhou nodded: "I know, otherwise I would have increased the leverage last Friday."

Su Qingyuan stared at him for two seconds, then nodded and said nothing more.

Xia Yaozong looked away from the ceiling and sat up straight.

"Mr. Lu, what are we going to do the day after tomorrow? After we've filled our positions, we'll have to wait six months for new funds and a year for QDII quotas. Are we just going to sit here doing nothing?"

Lu Chenzhou glanced at him: "Didn't you say you wanted to work hard?"

"I meant to strive, but I didn't mean to just sit around and strive."

"Then keep an eye on the market. Having a full position doesn't mean you don't need to watch the market."

The market is changing, and so are your holdings.

You need to know why it goes up, why it goes down, when to adjust your portfolio, and when to hold on.

Xia Yaozong opened his mouth but didn't say anything more. He didn't want to watch the stock market. Watching the stock market was nothing compared to watching girls.

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