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

The door closed.

The office was silent for three seconds, then erupted into chaos.

Who is this "someone" he's referring to?

"I don't know, Brother Lu always speaks in a cryptic way."

"Carry us a sedan chair? Who will carry our sedan chair?"

"Could it be those foreign institutions? If we short it, they'll have to short it too, right?"

"Come on, those organizations are smarter than monkeys, how could they possibly help us out?"

"Why didn't Brother Lu use leverage this time when he shorted the stock?"

"Leverage? That's short selling for sure, you could get liquidated if you're not careful. I bet Brother Lu didn't leverage it just to be on the safe side."

"But you can't make much money shorting! Besides, the risks are huge. I don't think even one bag is worth it."

"Holy crap, Brother Lu made over 50 million today?"

"Not only that, look at the three stocks he shorted: BYD Electronic, China National Building Material, and CEFC China Energy. The combined unrealized profit is over HK$240 million. Add to that the HK$5316 million he made from his long positions this morning, and the total is HK$5556 million."

"There are over 55 million. I invested 1000 yuan. Based on a principal of 1.5 million yuan, how much will I get in return?"

"Do the math yourself. You turned 150 million into more than 5500 million, a 36-fold increase. 1000 yuan became more than 36000 yuan."

"Thirty-six thousand? A day?"

"one day."

"Holy shit..."

"You only invested 1000 yuan. Look at Li Ming, he invested 10,000 yuan and now it's 360,000 yuan."

Li Ming stood in the corner, pushed up his glasses, and didn't say anything, but his fingers were trembling.

"The most ruthless were Xia Yaozong and Wen Zhiyu; they cast the most votes."

"Didn't Wen Zhiyu terminate her contract early? She took 30 yuan and left, and the remaining tens of thousands are still rolling over in her account."

"Then she made a fortune. Tens of thousands, multiplied by 36, would amount to around a million."

"Was your math taught by the PE teacher?"

"Stop calculating, the more you calculate, the more you regret it. Why did I only invest 500 yuan back then?"

"You're being generous by investing 500 yuan; I didn't invest a single cent."

"Don't just focus on the money. Look at who Brother Lu is shorting: Huaxin Pacific, a company owned by the Rong family."

"What happened to the Rong family?"

"You don't know the Rong family? They're a super-rich family in Shanghai with close ties to Beijing. Huaxin Pacific is a Hang Seng Index constituent stock. How dare you short-sell such a company?"

"Isn't Brother Lu free? The fact that he dares to be free means he's confident."

"He has no confidence whatsoever; he's just gambling."

"Shut up! You say he gambles, but when has he ever lost?"

"Exactly, ever since they started buying CITIC Securities at the limit down price, haven't they always won?"

"Alright, alright, stop arguing. Brother Lu must have his reasons for shorting the market."

"But that's the Rong family!"

"Brother Lu asked, 'Do you think Hong Kong is still the Hong Kong before 1997?'"

The room fell silent for a moment after those words were spoken.

The group exchanged glances and remained silent.

Xia Yaozong didn't participate in the discussion. He sat in his chair, staring at the closing prices on the screen, his mind replaying Lu Chenzhou's words.

Do you think Hong Kong is still the Hong Kong before 1997?

He suddenly smiled and shook his head.

"Brother Yaozong, what are you laughing at?"

"It's nothing." He closed his laptop. "I'm going now, going back to sleep."

"So early?"

"There's still a tough battle ahead tomorrow."

Zhang Yixing didn't move. He sat in front of the computer, staring at the closing price of Huaxin Pacific: HK$22.10.

He recalled how he had almost tried to stop Lu Chenzhou from shorting Huaxin Taifu that afternoon.

It wasn't because he couldn't understand logic, but because it was the Rong family's company.

But he didn't stop them, because he knew it would be useless to stop them.

Wen Zhiyu stood by the window and put her phone into her pocket.

Her mother's surgery was successful.

She glanced at the spot where Lu Chenzhou had just sat; the chair was still warm.

"Sister Zhiyu, what do you think Brother Lu will do tomorrow?"

Wen Zhiyu looked away: "He said, wait."

"What are you waiting for?"

"We're waiting for someone to carry our sedan chair."

The person who asked the question wanted to press further, but seeing that Wen Zhiyu had already turned and walked towards the door, they swallowed their words.

At 4:10 PM, the post about Lu Chenzhou on Tsinghua University's BBS had reached 400,000 upvotes.

Less than ten minutes after the market closed, someone posted screenshots of Lu Chenzhou's three short-selling operations online.

Main post title: [Latest Leverage Bro's Moves: Shorting Three Hong Kong Stocks, Closing Profit of 240 Million, Total Profit Today Exceeds 5500 Million!]

The post lists detailed data:

BYD Electronic (HK0285): Shorted HK$3000 million at an average price of HK$4.61, closing at HK$4.50, with a floating profit of HK$71.72.

China National Building Material (HK3323): Shorted HK$3600 million at HK$9.65, closed at HK$9.42, with a floating profit of HK$84.49.

Huaxin Pacific (HK0267): Shorted HK$2273 million at a price of HK$23.15, closed at HK$22.65, with a floating profit of HK$50.51.

The total unrealized profit is HKD 206.72 million, plus the HKD 5316 million profit from today's long positions, bringing the total profit for the day to over HKD 5500 million.

The number of replies to the post is increasing every second:

"5500 million? In one day?"

"No, look at what he's shorting: CEFC China Energy! The Rong family's company!"

"Is he insane? He dares to leave the Rong family's company empty?"

"They asked, 'Do you think Hong Kong is still the Hong Kong it was before 1997?'"

"That statement has some merit."

"It's not just that it has some things, it has a lot of things."

"I checked and found that CEFC has an iron ore project in Australia. The Australian dollar has fallen by 30% this year, and the exchange rate loss could be a huge hole."

"So he calculated this carefully before leaving it empty?"

"When has he ever failed to calculate correctly?"

"The key is that others don't dare to be empty-handed, but he does."

"That's the difference."

A user with the ID "HKU Finance Guy" posted a long comment:

"I'm from the Department of Finance at the University of Hong Kong. There have been rumors in the industry about the exchange rate risk of Huaxin Taifu's Australian projects, but no one dares to publicly short it because it's a company owned by the Rong family."

The Rong family's status in Hong Kong is unmatched by that of ordinary listed companies.

Lu Chenzhou did it, and even said those words publicly.

If he's right, the short position in CEFC is just the beginning.

If he's wrong... well, he doesn't seem to have made many mistakes.

This comment was pushed to the top.

Another user with the ID "Renmin University Student" posted a message:

"I was right next to room 608, and I heard an explosion inside after the market closed."

Some people said that Lu Chenzhou earned more than 50 million yuan today, and some people calculated how much money they would get on the spot, and their hands were shaking after they finished calculating.

Some people were worried about potential trouble from shorting CEFC China Energy, but someone else retorted, "When did Brother Lu ever miss out?" and then everyone fell silent.

A bunch of replies followed:

"I'm so envious, I want to vote too."

"Forget about it, fundraising has already stopped."

"Let's wait for Brother Lu to start his company."

"You can't afford to start a company either; I heard the minimum investment is 100 million."

"A million? Forget it..."

"You can find dozens of people to make it happen."

"That's one way."

At 4:30 p.m., Zhou Xingbang returned to the Department of Finance.

He sat in his office, with Lu Chenzhou's trading records for the day spread out in front of him.

He read it once, and then read it again.

Then he picked up a pen and wrote three names on the paper: BYD Electronics, China National Building Materials, and Huaxin Taifu.

He stared at the three characters "Huaxin Taifu" for a long time.

He was aware that Huaxin Taifu's Australian projects carried exchange rate risks.

He had access to this public information earlier than Lu Chenzhou.

Even so, he will not short sell.

It's not because the accounts are unclear, it's because it's the Rong family's company.

But Lu Chenzhou dared.

Zhou Xingbang put down his pen, leaned back in his chair, and looked at the ceiling.

My phone vibrated. It was a message from Department Head Wang Jianguo:

"Old Zhou, did one of your students short CEFC China Energy today?"

Zhou Xingbang replied, "Hmm."

"Would he dare leave the Rong family's company empty?"

He said, "Do you think Hong Kong is still the Hong Kong before 1997?"

There was a few seconds of silence on the other end, then a reply came: "This student is incredibly bold."

Zhou Xingbang looked at the message but did not reply.

A while later, Wang Jianguo sent another message: "Talk to him, but don't cause any trouble."

Zhou Xingbang thought for a moment and replied, "He won't listen."