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

Investor Lin Yue stood at the front, his voice hoarse: "Zhao Xianglong used our money to speculate in stocks, he lost everything, and he's disappeared. The school can't just ignore this."

The people behind them shouted, and more than sixty people blocked the entrance to the college office building.

Wang Jianguo stood by the window, his face ashen.

He picked up the phone and called Zhao Xianglong's home.

The person who answered the phone was Zhao Xianglong's mother, whose voice was very calm: "Director Wang, our family will handle Xiaolong's matter. The investors' money will not be reduced by a single penny, but it will take time."

Wang Jianguo rubbed his temples: "Mrs. Zhao, it's not about the money."

Zhao Xianglong used his classmates' trust to raise funds, but his improper handling led to huge losses. After the incident, he refused to show up, explain, or compensate.

More than sixty investors are currently blocking the entrance to the college, putting immense pressure on the school. This matter demands an explanation.

There was a few seconds of silence on the other end of the phone. "So, what do you want to do?"

"Zhao Xianglong voluntarily applied to withdraw from school. We'll preserve his dignity; otherwise..."

He didn't continue, but the other person would definitely understand what he meant.

There was a long silence on the other end of the phone. Then Zhao Xianglong's mother said, "He agreed to drop out of school and will fly to the United States the day after tomorrow."

However, Director Wang, I must remind you of something.

My son ended up like this because of managing clients' money. Although Lu Chenzhou is currently enjoying immense success, if this scandal breaks, it won't be something that can be resolved with just ten or twenty million.

Wang Jianguo's heart skipped a beat as he looked at the phone that had been hung up.

He knew the other person had planted a thorn in his side, but those words still made him feel like he had a fishbone stuck in his throat, and he was very uncomfortable.

He pulled up Lu Chenzhou's phone number and wanted to call him several times, but ultimately gave up.

The notice of withdrawal was quickly posted at the entrance of the college's office building.

In black and white: "Decision on Expelling Student Zhao Xianglong from School".

Lin Yue stood in front of the announcement and looked at it for a long time.

Behind him, some people were crying, some were cursing, and some were squatting on the ground holding their heads.

But no one charged forward anymore.

Because they knew that Zhao Xianglong was finished.

It's not about the money; it's about this person. He's completely finished.

But Zhao Xianglong was not willing to give up.

He sat in the courtyard, a screenshot of the expulsion notice in front of him.

He's flying to the US the night after tomorrow; his mother has already made the arrangements.

New York, Columbia University preparatory school, a fresh start.

But he didn't want to start over.

He wanted to make things difficult for Lu Chenzhou as well.

"Find me a lawyer," he told his assistant.

The assistant hesitated for a moment: "Young Master, you want it?"

Zhao Xianglong's voice was cold: "Write a complaint letter and send it to the China Securities Regulatory Commission."

The article describes Lu Chenzhou's illegal fundraising, asset management on behalf of clients, and illegal outflow of funds.

Find a professional to write it, and the more serious the better.

Then, they contacted media outlets and organized people to create buzz and stir up trouble on online forums and social media.

The assistant hesitated for a moment: "Young Master, this..."

"Go and do it."

In room 608, Lu Chenzhou sat intently in front of his computer, with three screens lit up simultaneously in front of him.

One device displays delayed Hong Kong stock quotes, another displays US stock futures, and the third displays the Bloomberg Terminal news page.

This account was obtained by Xia Yaozong through family connections; he probably only has this one.

His gaze was fixed on the alarming number on the screen.

Dow Jones Industrial Average: 9447.11 points.

Yesterday's decline: 508.39 points, a drop of 5.11%.

This is not an ordinary decline.

This marks the fifth consecutive trading day of decline, with a cumulative drop of nearly 13%.

The S&P 500 fell below 1000 points for the first time in five years, closing at 996.23.

Just yesterday, Federal Reserve Chairman Bernanke delivered a speech that sent chills down the spines of the entire market.

"The economic growth outlook has deteriorated," and "the sluggish economic activity may continue into next year."

These words, spoken by Bernanke, carry more weight than any economic data.

Lu Chenzhou put down his teacup, his gaze calm.

But others stared in horror at the news page in front of him.

[US Stock Market Closing] The Dow Jones Industrial Average fell 508 points, and the S&P 500 fell below 1000 points for the first time in five years.

The Dow Jones Industrial Average plunged 508.39 points, or 5.11%, to close at 9447.11, its lowest level since October 2003.

标準普尔500指数跌5.1%，收报996.23点，为2003年以来首次跌破1000点大关。

The Nasdaq fell 5.8% to close at 1754.88 points.

Bernanke: Economic outlook deteriorates, interest rate cut imminent

Federal Reserve Chairman Ben Bernanke said at the American Enterprise Economics Association annual meeting on Tuesday that, given the severe deterioration of the financial crisis, the Fed needs to consider whether its stance of maintaining interest rates unchanged is still "appropriate."

[Bank of America in crisis: Plans to sell $100 billion in stock]

Bank of America, the largest commercial bank in the United States, is reportedly in poor condition, with its third-quarter earnings declining and plans to sell $100 billion in common stock to raise funds.

International Monetary Fund: Global Economy Enters "Severe Downturn"

On the same day, the IMF released a report that significantly lowered its global economic growth forecasts for this year and next, stating that the world economy is entering a period of "severe downturn".

Breaking News: Six Major Central Banks Worldwide Cut Interest Rates

London, Frankfurt, Tokyo, and Washington, October 8 (Xinhua) -- The U.S. Federal Reserve, the European Central Bank, the Bank of England, the Bank of Canada, the Swedish central bank, and the Swiss National Bank announced earlier on Wednesday that they would cut their benchmark interest rates by 50 basis points in response to the escalating financial crisis.

The Bank of Japan expressed strong support for this joint action.

This marks the first time since the 9/11 attacks in 2001 that major central banks around the world have taken joint action to cut interest rates.

The world’s six major central banks have jointly cut interest rates by 50 basis points.

This was an epic market rescue signal, but the market's reaction surprised everyone.

He scrolled to the US stock futures page.

Dow Jones futures surged nearly 200 points immediately after the interest rate cut announcement, but quickly fell back and are currently down slightly.

What does this tell us?

This indicates that the market is not buying it.

Investors remain unsure whether coordinated interest rate cuts by central banks can prevent a global recession.

When the positive news is fully priced in, that's when the peak is reached. When everyone is cheering "the market has been saved," those who are truly clear-headed know when to short sell.

No, that's not right. He had already shorted the market and was waiting.

Lu Chenzhou switched to the A-share market page and brought up yesterday's intraday chart.

On October 7, A-shares opened sharply lower under the drag of US stocks. The Shanghai Composite Index once broke through the 2100-point mark, hitting a low of 2072.90 points, completely filling the upward gap when three major positive factors were introduced on September 22.

However, in the afternoon, stimulated by expectations of monetary policy easing, heavyweight stocks such as banks and real estate rebounded strongly, and the Shanghai Composite Index once turned positive, eventually closing at 2157.84 points, down only slightly by 0.73%.

On the surface, A-shares have performed much more "resiliently" than US stocks.

But Lu Chenzhou's gaze fell on an inconspicuous statistic: the entire securities sector had hit its daily limit down.

CITIC Securities hit the daily limit down.

Haitong Securities hit the daily limit down.

Changjiang Securities and Hongyuan Securities both hit their daily limit down.

He recalled the doubts he heard when he sold all his CITIC Securities shares on September 26.

"Brother Lu, why did you sell them all?" "The price has only just started to rise!"

What now?

CITIC Securities shares fell from a clearance price of 24.80 yuan to just over 20 yuan, a drop of nearly 20%.

And the BYD shares he bought with that money went up.

BYD Electronics also rose.

The difference between the inflow and outflow amounted to tens of millions.

It's not that he's some kind of genius; it's that he calculated perfectly that the realization of the benefits of margin trading and securities lending would mark the short-term peak for brokerage stocks.

When everyone is chasing after it, that's when you should sell.

He understood this principle when he first bought CITIC Securities shares at the bottom on September 19th.

That day, while everyone else was panicking and selling at a loss, he bought in with all his funds at the limit-down price.

That day, everyone was chasing highs and selling lows. He cleared his long positions at 16 yuan and went all in on shorting.

The market's rhythm is always contrary to the emotions of most people.

US stocks plunged 5% overnight, and A-shares are likely to open lower today.