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

The room remained quiet for a long time.

Xia Yaozong spoke up, his voice low: "Shenzhou, if Zhao Xianglong heard what you said, he would laugh himself to death."

Lu Chenzhou said indifferently, "Let him laugh. Once he's done laughing, the market will teach him a lesson."

The group exchanged glances and then laughed.

But Zhang Yixing's smile seemed forced.

He remembered the message from the chief that had been delayed.

He recalled Xia Yaozong's words, "Someone is inquiring about it."

He suddenly had a strong premonition that something big would happen this weekend.

When the news of the Hong Kong stock market closing reached Zhao Xianglong at four o'clock in the afternoon, he was sitting in his study.

The assistant stood at the door, holding a phone, looking very unhappy.

"Young Master, Lu Chenzhou's Hong Kong stock account has a floating profit of HK$750,000 today."

Zhao Xianglong slammed the teacup he was holding onto the table.

"How many?"

The assistant repeated, "750,000 Hong Kong dollars. He bought BYD shares at 8 Hong Kong dollars per share, and the closing price was 8.4 Hong Kong dollars per share."

Zhao Xianglong's voice rose considerably: "BYD? You really bought BYD? That electric car company? That junk stock that plummeted from 77 to 8 yuan?"

He jumped to his feet: "Is he crazy? An electric car? It's 2008, who buys an electric car? Gas prices have dropped from $147 to $60, the Big Three automakers in the US are almost bankrupt, and he's going to buy an electric car?"

The assistant didn't dare to respond.

Zhao Xianglong paced back and forth in the study: "Moreover, Hong Kong stocks do not have daily price limits. If he leverages his investment tenfold, a 10% drawdown will wipe out his entire account."

It's up 5% today, but what about tomorrow? The day after? These kinds of stocks fall faster than anything else.

He stopped abruptly, panting, "He can't actually believe electric cars will work, can he?"

The assistant said cautiously, "Young Master, someone in his group is saying that Lu Chenzhou thinks electric cars are the future..."

Zhao Xianglong sneered: "The future? The future belongs to oil! Electric vehicles? How far can those things go? How long does it take to charge? How long will the battery last? They can't even solve these problems, what kind of future are they talking about?"

He sat back down in his chair, his voice dripping with sarcasm: "A finance major going off to research electric cars? Who does he think he is? Edison or Tesla?"

The assistant didn't dare to respond.

Zhao Xianglong stared at BYD's K-line chart on the screen and shook his head: "Once his electric car dream ends, he will know what reality is."

Just wait and see. BYD will definitely fall when the market opens on Monday. Stocks like this, which are hyped up by storytelling, only rise for one day before their gains are gone.

The assistant nodded and left.

Zhao Xianglong was the only one left in the room.

He stared at BYD's closing price on the screen, HK$8.40.

"Electric cars are the future..." he muttered to himself, then shook his head. "Idiot."

Lin Zhengmao was still at the CICC Research Department in the China World Trade Center Building.

He sat at his workstation, a cup of coffee that had gone cold and a message he had just received in front of him.

The words Lu Chenzhou said at the science park have been leaked by someone.

Li Mingyang stood to the side, also reading that passage.

"Chief Lin, do you think electric vehicles will work?" Li Mingyang's voice was somewhat hesitant.

Lin Zhengmao did not answer directly; he leaned back in his chair and thought for a long time.

"Do you know what someone said back in 2000?"

Li Mingyang shook his head.

"At that time, the internet bubble burst, and the Nasdaq fell from 5000 points to just over 1000 points."

Everyone says the internet is a scam, but someone said something different.

"The internet bubble burst, but the internet won't disappear."

He paused, then looked out the window: "Today, the electric vehicles are the same."

Bubbles may burst, stock prices may fall, but the overall trend will not change.

Li Mingyang was taken aback for a moment: "Chief Lin, do you believe that electric vehicles are the way forward?"

Lin Zhengmao shook his head: "A 20-year-old student saying in 2008 that electric cars are the future is either crazy or a genius."

He looked at Li Mingyang: "Which type do you think he is?"

Li Mingyang thought for a moment: "He's already made a mistake once with CITIC Securities, so he doesn't seem like a madman."

Lin Zhengmao stood up, walked to the window, and looked at the night view of the Guomao area outside.

"In 2008, everyone was in a panic."

Some are selling, some are fleeing, some are looking at candlestick charts, but he's looking ten years into the future.

He turned around and said, "Regardless of whether electric vehicles will succeed, this kind of vision deserves respect."

Li Mingyang nodded thoughtfully.

Goldman Sachs Asia Headquarters, Central, Hong Kong.

Wei Zhexuan sat in his office, in front of him all of Lu Chenzhou's trading records for the day, as well as the words that were quietly circulating in the financial circle.

Cheng Jiajun stood to the side, watching as well.

Cheng Jiajun's voice was somewhat complicated: "Boss, this student said that electric cars are the future."

To say something like that in 2008 would be insane, wouldn't it?

Moreover, he really did buy a BYD.

We're shorting BYD, and they're going long—they're trying to be our counterparty!

Wei Zhexuan was silent for a moment: "Next Monday, continue shorting."

Cheng Jiajun opened his mouth as if to say something, but couldn't get the words out.

For Lu Chenzhou to be on the opposite side of Goldman Sachs is like a mantis trying to stop a chariot; the outcome was already predetermined.

At 10 p.m., the post about Lu Chenzhou on Tsinghua University's BBS had already reached over 10,000 replies.

The latest comments are:

"Breaking news: Lu Chenzhou sold all his shares in CITIC Securities today at 24.80 yuan, and then went all in on BYD in Hong Kong at HK$8. The stock closed at HK$8.40, resulting in a floating profit of HK$75 in a single day."

"Please, don't you guys count A-shares? You made 11 yuan in a single day with A-shares and 75 yuan with Hong Kong stocks, totaling 86 yuan, nearly a million!"

"Holy crap? 86? In one day?"

"My God, what kind of divine operation is this?"

"Can someone explain what BYD is? And why it's worth buying at 8 yuan?"

"BYD, a battery manufacturer, also makes cars. Its stock price plummeted from 77 to 8 yuan, a 90% drop. With a PE ratio of 8 and a price-to-book ratio below 1, electric cars? In 2008? Who would buy electric cars?"

"Wait, someone said that Lu Chenzhou said something like, 'Ten years from now, will the cars on the street be gasoline-powered or electric? Electric cars are inevitable. BYD's electric cars are already running in Shenzhen.'"

"What? He bought a BYD because he believes in electric cars? Isn't that crazy?"

"Exactly! Gas prices have plummeted from $147 to $60, and the Big Three automakers in the US are practically bankrupt. Buying an electric car now is practically suicide!"

"But what if he's right?"

"If he's right, then he's the one who sees the furthest in this market."

"Stop dreaming, electric cars are impossible, it's a joke."

"Are you sure? Back in 2000, you also thought the internet was a joke, right?"

"That's different. The Internet is about information, while electric vehicles are about energy. They're two different things."

"Are they really two different things? Steam engine, internal combustion engine, electric motor... every energy revolution has changed the world. How do you know the electric car won't be the next one?"

The comments section below the post was filled with arguments.

Some people think Lu Chenzhou is crazy, some think he's looking too far ahead, and some think he's gambling on an impossible future.

But amidst the argument, one comment was pushed to the top:

"What are you arguing about? He bought it, he made a profit, that's enough."

Once electric vehicles become truly widespread, you won't be able to buy a BYD for 8 yuan anymore.

If it doesn't become widespread, then the money he's making now is real.

No matter what the future holds, he won't lose out.

After this comment was posted, the comments section below the post was quiet for a moment.

Then someone replied:

"You're right, he won twice. If the electric car project succeeds, he'll be a prophet. If it fails, he'll make his money and run, so he won't lose either way."

"Damn, that was a really flashy move."

"I'm convinced, I'm really convinced."