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

When the news reached Zhao Xianglong's ears, he was lying in bed drinking ginseng soup.

The assistant stood by the bed, holding a Nokia N95, the screen of which displayed a screenshot of messages from a QQ group.

"Young Master, Lu Chenzhou has spoken in the group chat again."

Zhao Xianglong put down the ginseng soup bowl, took the phone, and saw the message from Lu Chenzhou on the screen:

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.

Zhao Xianglong stared at the message, his fingers gradually tightening until his knuckles turned white.

"Hong Kong stocks? Ten times leverage? Is he crazy? Hong Kong stocks don't have daily price limits, and they're traded on a T+0 basis. If he goes in with ten times leverage, a 10% drawdown will wipe out his entire account."

The assistant lowered his head and whispered, "Young Master, quite a few people in the group have already followed. Xia Yaozong said he has Hong Kong dollars in his account and can provide financing at a monthly interest rate of 15 cents."

Zhao Xianglong sat up abruptly: "Xia Yaozong? That rich kid from his dorm? Where did he get a million Hong Kong dollars?"

"It seems like your family is in the foreign trade business..." The assistant's voice trailed off.

Zhao Xianglong sneered, his smile full of mockery: "A rich second-generation being used as a stepping stone for a poor wretch, this world has truly gone mad."

He picked up his phone, opened the QQ group, and scrolled up.

The group message count is already 999+.

He saw those people's replies:

"Brother Lu, I'll go all in!"

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

"I'll follow suit. In a bear market, A-shares don't perform well, so Hong Kong stocks have a chance. If Brother Lu dares to leverage ten times, he must be confident."

Each message was like a knife, stabbing into his heart.

He turned on his computer and opened Tsinghua University BBS.

Sure enough, someone had already posted a screenshot of the QQ group on the homepage. The post title was quite provocative:

[Shocking] Renmin University student uses 10 times leverage to enter Hong Kong stocks: genius or gambler?

The post has already received hundreds of replies.

"A genius! He used ten times leverage to buy the dip in CITIC Securities shares after they hit the daily limit down, making three to four hundred thousand yuan in just a few days. Now he's switching to Hong Kong stocks."

"Isn't that incredibly audacious? Hong Kong stocks don't have daily price limits; a 10x leverage is like throwing money into a fire."

"They made hundreds of thousands using 10x leverage before; their ability speaks for itself, so I choose to believe them."

"Students are just students. They think they're some kind of stock market genius after making a quick buck. They'll only know what 'the stock market is risky' means when they lose it all."

"Rumor has it that they didn't use 10x leverage, but 60x leverage. I heard that with a principal of 10,000, they borrowed 50,000 by mortgaging their ID card and student ID, and then leveraged the remaining 60,000 tenfold, putting in a total of 600,000."

"Holy crap! That's a tough guy!"

Zhao Xianglong's face turned from white to red, then from red to green. He raised his phone, ready to smash it on the ground.

He stopped halfway up his hand.

This is a brand new phone; he smashed his previous one.

He stood there, frozen, his arm hanging in mid-air, the muscles in his face twitching.

The assistant stood beside him, not daring to utter a sound.

After about ten seconds, Zhao Xianglong slowly lowered his hand and slammed the phone heavily onto the bed.

"I'm not going to smash them anymore. I want to keep them alive and see how they die."

He lay back on the bed, staring at the dim yellow light on the ceiling, his chest heaving violently.

After a long while, he muttered to himself, "Ten times leverage in Hong Kong stocks, does he really think he's a stock market genius?"

Okay, I'll wait. With Lehman Brothers just collapsed and global stock markets falling, can Hong Kong stocks remain unaffected?

When his Hong Kong stocks are liquidated, those fools who invested money in him will lose everything.

Then we'll see how arrogant he can be.

The assistant asked cautiously, "Young Master, shall we do something as well?"

Zhao Xianglong remained silent for a long time, a fierce glint flashing in his eyes.

"Contact my friends in Hong Kong so I can find out which Hong Kong stocks Lu Chenzhou will buy tomorrow."

Once he buys in, I'll short him.

He leverages 10 times to go long, so I leverage 10 times to go short.

He lost everything, I made money, and then everyone knows who to invest in.

The assistant hesitated: "Young Master, what if... he makes the right choice?"

Zhao Xianglong's voice was as cold as ice: "There's no 'what if'. Hong Kong stocks are an international market, and international capital calls the shots."

Currently, Soros' Quantum Fund, Tiger Fund, Morgan Stanley, Goldman Sachs, Merrill Lynch, UBS, Credit Suisse, Barclays, and BNP Paribas are among the investors he manages.

Deutsche Bank, CLSA, and others were all issuing short-selling reports while simultaneously using securities to drive down prices.

Lu Chenzhou's meager funds wouldn't even make a ripple.

Moreover, what good stocks could a student who has never touched Hong Kong stocks possibly pick?

Just wait and see, tomorrow will be his end.

The assistant nodded, then seemed to remember something: "Young Master, our funds are limited. Should we leverage our investment in CITIC Securities A-shares again tomorrow?"

Zhao Xianglong frowned: "Uh! Let's just leverage 10 times and buy CITIC Securities! I don't need to lift a finger with Lu Chenzhou; the foreign investors will teach him a lesson."

The assistant felt that both options were very risky, but noticing the young master's expression, he dared not object and could only silently reply, "Okay, I'll go prepare the funds."

Zhao Xianglong was the only one left in the room.

He stared at the ceiling, a cold smile playing on his lips.

"Lu Chenzhou, don't you think you're so great? Then let's see who has the last laugh."

At the same time, on a certain floor of the China World Trade Center, the research department of CICC was brightly lit.

In 2008, CICC was one of China's top investment banks, and its research department had gathered the best analysts in the industry.

Since Lehman Brothers went bankrupt, the entire research department has been working overtime for more than a week.

Everyone is working overtime to write reports, trying to predict how this financial tsunami will unfold.

But tonight's overtime work brought up a new topic.

"Have you guys checked Tsinghua University's BBS? That 'Leverage Bro' is back again." Researcher Li Mingyang leaned back in his chair, looking at his computer screen, which displayed a BBS post page.

Wang Siyuan across from him looked up and adjusted his glasses: "Lu Chenzhou? The one from Renmin University? The one who leveraged 50 times to buy the dip in CITIC Securities last week when it hit the daily limit down?"

Li Mingyang laughed: "It's him. This time he's going to get involved in Hong Kong stocks, with ten times leverage, limited to existing clients only. The BBS is already buzzing about it."

Wang Siyuan frowned: "Ten times leverage in Hong Kong stocks? That's incredibly audacious. Hong Kong stocks don't have daily price limits; if you go in with ten times leverage, a 10% drawdown will wipe you out."

"That's what they said last time, and what happened? They made 95,000 in one day." Li Mingyang shrugged.

Wang Siyuan disagreed: "That's the A-share market, the market that best protects retail investors, with the national team backing it up."

Hong Kong stocks are an international market, and international capital calls the shots. You know how aggressively foreign capital is dumping shares right now, don't you?

While the two were arguing, Lin Zhengmao, the chief analyst of the research department, came out of his office.

Lin Zhengmao, 40 years old, has a bachelor's degree from Fudan University and a doctorate from the London School of Economics. He worked at CICC for twelve years, rising from researcher to chief analyst, and is recognized within the company as a Hong Kong Stock Connect candidate.

In 2007, when the Hang Seng Index was at 32000 points, he issued a report warning of risks, which led to him being called a "jinx" by many people.

A year later, the Hang Seng Index has fallen to 18000 points, and those who criticized it are nowhere to be seen.

"What's all the noise about?" He asked calmly, leaning against the doorframe with his teacup in hand.

Li Mingyang pointed at the computer and said, "Chief Lin, take a look at this. A student from Renmin University wants to leverage ten times to go long on Hong Kong stocks. He's raising funds on campus, and it's gone viral on the BBS."

Lin Zhengmao glanced at the post, his expression unchanged.

He scrolled down and saw a screenshot of Lu Chenzhou's message in the group.

Then he laughed.

"Interesting, this student has some talent."

Wang Siyuan paused for a moment, then asked, "Chief Lin, do you think he has a chance?"