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

Inside the boys' dormitory, some people were singing "Today is a Good Day," and others were shouting "Brother Lu is awesome!"

Someone posted on a forum: "Leveraged Bro has had three consecutive days of gains, will he have four tomorrow?"

Someone in the group was saying, "Follow Brother Lu, and you'll live the high life, with stocks hitting the daily limit every day!"

After careful consideration, Lu Chenzhou sent a message to a QQ investment group with more than 300 members:

I plan to invest in Hong Kong stocks with 10x leverage. Those interested can invest now. This is limited to existing clients only, and the amount cannot exceed the personal funds in the current fundraising account, including returns.

The moment the message popped up, the previously quiet group chat exploded. QQ message notifications kept beeping, and the screen was scrolling so fast that the text was illegible.

"Holy crap! Is Brother Lu really going to invest in BYD in Hong Kong stocks?"

"Brother Lu has spoken up, are we really going to invest in Hong Kong stocks? We've never even touched that stuff, is it reliable?"

"Ten times leverage? That's insane! Ten times leverage in the A-share market is exciting enough, but Hong Kong stocks have T+0 trading, the risk is many times greater!"

"What are you afraid of? Brother Lu made a fortune by leveraging 10 times in CITIC Securities. His judgment has never been wrong. I trust Brother Lu. I'll follow him with 500."

Messages popped up one after another, and the QQ notification sounds went off incessantly, like someone had pressed the alarm clock a hundred times at the same time.

Lu Chenzhou stared at the screen, a slight smile playing on his lips.

He knew it would explode, but he didn't expect it to be this powerful.

"Brother Lu, I'll go all in. You decide how much to bet, and I'll bet that much."

"Brother Lu, can I put in the allowance my mom gives me too? I'll eat less next month."

"Those who are afraid of this and that deserve to not make money. In a bear market, A-shares have no market, but Hong Kong stocks have opportunities. Brother Lu dares to leverage 10 times, so he must be confident. I'll follow."

But not everyone agrees, and many people have spoken out against it.

"Hong Kong stocks? Brother Lu, are you sure? Hong Kong stocks and A-shares are completely different worlds. T+0 trading, no daily price limits, well-developed short-selling mechanisms, and the methods of market manipulators are much more ruthless. If you go in with 10x leverage, a flash crash will wipe you out."

"That's right. Moreover, the liquidity of Hong Kong stocks is not as good as that of A-shares. Many small-cap stocks only have a few million in daily turnover. If you put in funds with ten times leverage, you simply can't get them out."

"Brother Lu, could you tell me about the target? I'll only dare to invest if I have a clear idea of ​​what it is; otherwise, I won't dare to invest blindly."

"Are you all crazy?! Hong Kong stocks have no daily price limits. With 10x leverage, you can easily get liquidated and lose all your principal. I'm not getting involved."

"How much is the monthly interest rate for 10x leveraged financing? Don't end up earning more than you can pay the interest."

There is another group of people who neither support nor question the investment; they are in a dilemma of "wanting to invest but not daring to."

"Brother Lu, do I need to exchange Hong Kong dollars for Hong Kong stocks? How do I transfer the funds? Is it safe? I'm a little worried."

"Ten times leverage... Let me do the math. If it drops 10%, my principal is gone? Wait, Hong Kong stocks don't have daily price limits. A 30% drop in a day is possible. Wouldn't that mean I'd be wiped out?"

"Brother Lu, please be clearer. What target are you referring to? When are you buying? How long are you holding it? What's the stop-loss level? How can we follow you if you don't tell us these things?"

Of course, there is also the largest group: the bandwagoners.

They don't analyze or judge for themselves; their logic is simple: if others vote, I'll vote too.

"Me and 500."

"Me too, 200."

"+1, 300".

"+1, 1000".

Within half an hour, the screenshots from the group were posted on Baidu Tieba.

[Shocking! Leverage Guru Lu Chenzhou is back in the stock market, abandoning A-shares for Hong Kong stocks, going all in with 10x leverage]

The main post is brief, but packed with information:

Breaking news: Lu Chenzhou, known as the "Leverage Guru" at Renmin University, announced in an investment group that he plans to invest in Hong Kong stocks with leverage of 10x, limited to existing clients only. It is highly likely that he will be buying BYD shares.

The group chat has exploded. Some people are donating 500, some are donating 1000, and some are even willing to put in their entire living expenses.

According to sources, Lu Chenzhou previously used ten times leverage to buy CITIC Securities shares on the A-share market, earning nearly 30 yuan in his own account and 10 yuan in his funded account. Now, with his move to Hong Kong stocks, it remains to be seen how many times that return he can achieve.

But Hong Kong stocks have no daily price limits, so 10x leverage is like dancing on a knife's edge. Would anyone dare to follow that?

Within a minute of posting, the number of replies exceeded a thousand.

"Holy crap, it's Lu Chenzhou again? He used 10x leverage to buy the dip in CITIC Securities after it hit the daily limit down, and now he's going to use 10x leverage to go all in on Hong Kong stocks. This is too aggressive."

"That's what real stock trading looks like; what we're doing is just giving away money."

"Can someone explain what 10x leverage in Hong Kong stocks means? I don't even dare to go for 2x leverage in A-shares."

"Upstairs, 10x leverage in Hong Kong stocks means that if you invest 10,000, you can buy 100,000 worth of stocks. If it rises by 10%, your money doubles. If it falls by 10%, you lose everything. And Hong Kong stocks don't have daily price limits, so a 30% drop in a single day is possible, so you understand."

"I understand, but the problem is that Lu Chenzhou dared to take the plunge. Last time when CITIC Securities hit its daily limit down, who dared to leverage ten times? He did. And what happened? Now he's made a killing."

"This is a difference in perception. What you see as a risk, he sees as an opportunity. What you see as gambling, he sees as a high-probability event."

However, there are also many voices predicting a downturn.

"Isn't that incredibly audacious? Hong Kong stocks don't have daily price limits, so a 10x leverage is like throwing money into a fire—pure gambler's behavior."

"The last person who did this is still lying on an overpass in Shenzhen."

"Stop bragging. With this kind of high leverage, even if you make money a hundred times, it won't be enough to cover one loss. Just wait and see him get wiped out."

"Furthermore, capital allocation in Hong Kong stocks is inherently more complicated than in A-shares. How do you transfer funds overseas? How do you manage currency exchange limits? What if you encounter a fraudulent platform? Aren't these issues being considered?"

"I bet five cents that he will definitely lose this time. Hong Kong stocks and A-shares are completely different things. The way things are done in A-shares simply won't work in Hong Kong stocks."

"BYD's stock price has dropped from 77 yuan to 8 yuan now, does he really dare to buy it?"

"Students will always be students. They think they're some kind of stock market genius just because they made a little money. Once they lose it all, they'll know what it means to 'invest in the stock market with caution.'"

There are also some relatively rational voices that neither idolize nor predict the downfall of the market, but instead analyze the risks.

"Can anyone knowledgeable tell me if margin trading in Hong Kong stocks is legal? Aren't students afraid of getting questioned by the school for using such high leverage in stock trading?"

"Stock margin trading in Hong Kong is not illegal, but the outflow of funds is a problem. Each person only has a foreign exchange quota of US$5 per year. How can hundreds of thousands of Hong Kong dollars be transferred out? Through underground banks? That would be too risky."

"Moreover, Hong Kong stocks don't have daily price limits, and the phenomenon of market manipulation by large investors is even more serious than in the A-share market. If you leverage your investment tenfold, and a large investor dumps the shares, you'll be wiped out. You won't even have a place to cry then."

"Why is it limited to existing customers only? And existing customers can't have more funds in the fundraising account?"

"It's probably to appease the school leaders, worried about the negative impact of a warehouse overload, so they're controlling the scale. Lu Chenzhou is still quite clear-headed; he hasn't blindly expanded."

"Controlling the scale is the right thing to do, but 10x leverage is crazy enough. Regardless of the size, the probability of liquidation is the same."

Of course, the majority of them are just bystanders.

"Front row seats, waiting for the next development."

"I've saved this post. I'll come back to it in a month and see if it's a masterpiece or a slap in the face."

"Renmin University students are just different. While we're still struggling with advanced mathematics, they've already started playing cross-border leverage."

"I'm so envious. While ordinary people are still studying, they've already mastered the cross-border stock market. It's true what they say, comparison is the thief of joy."

"Anyone want to form a group to visit Renmin University? I want to see what this leverage guy looks like in person."

"Forget it, upstairs. They're busy making money, they don't have time to see you."