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

However, the A-share market has shown relative resilience recently, supported by expectations of Huijin's increased holdings and central state-owned enterprise buybacks, limiting the potential for a significant decline.

Coupled with the positive impact of global central bank interest rate cuts, the market may open lower but then rise.

But he doesn't plan to touch A-shares.

Because all his money is now in Hong Kong stocks.

Today is the main event for Hong Kong stocks.

News of global central bank interest rate cuts has already been circulating before the market opened, making a higher opening for Hong Kong stocks today almost a certainty.

But what happens after the initial surge?

Lu Chenzhou recalled BYD's stock performance on September 29th.

That day was also a major positive day (Buffett invested), and the stock price doubled at the opening. Everyone rushed in, but what happened?

The stock price plummeted from 16 yuan to 12 yuan, leaving all those who bought at the peak trapped.

Will this happen again today?

He thinks so.

Moreover, it might be even worse than last time.

Because today's positive news is global, even more funds will flow in, and those chasing the high prices will become even more frantic.

When emotions reverse, stampedes can become even more devastating.

Lu Chenzhou refreshed the market information page.

Hong Kong stock futures are already being traded.

Hang Seng Index futures surged more than 400 points immediately after the interest rate cut was announced, but then quickly fell back, with the gains now narrowing to around 150 points.

Just like the trend of US stock futures, it rose and then fell back.

He had already seen the signal very clearly.

The market's reaction to the interest rate cut was not jubilation, but hesitation.

After hesitation comes panic.

He opened the QQ investment group.

The message count has reached 999+, all of which are discussions from last night to this morning.

"US stocks have crashed again, with the Dow Jones falling over 500 points. What will happen to Hong Kong stocks today?"

"Central banks around the world have cut interest rates in unison, this is a huge positive! The market will definitely surge today."

"Upstairs, are you sure? Last time Buffett invested in BYD, the stock price doubled at the opening, but what happened? Everyone who bought at the peak got trapped."

"This time is different; it's a global effort to rescue the market, and the scale is much larger than last time."

"What's the difference? The market will still fall as expected. Can interest rate cuts solve the fundamental problem?"

"Stop arguing, wait for Brother Lu to speak."

Lu Chenzhou remained silent.

He simply watched the messages quietly, as if he were watching a group of people arguing about which way to run before a storm.

He knew the storm was coming.

The market will surge the moment the interest rate cut is announced.

But after a surge, comes a crash.

Because lowering interest rates cannot save us from the financial crisis.

Lehman Brothers collapsed, AIG was rescued, Merrill Lynch was acquired, and the Wall Street investment banking model is dead.

The trend of global economic recession cannot be reversed by a 50 basis point interest rate cut.

The market will understand this today.

Before the market even realized it, he had already laid out his plan and completed the short selling.

All he has to wait for now is to receive the goods.

As the start time approached, the market, which had surged in pre-market trading due to the interest rate cut news, gradually turned from gains to losses, and then into a sharp decline.

The Hang Seng Index opened at 9:30 a.m. at 15905 points, a sharp drop of 5.35%, plummeting rapidly from the start.

Lu Chenzhou glanced at the overall market index and then at the individual stocks that were being shorted.

BYD Electronics opened at HK$2.50, a sharp drop of 12.59%.

It has fallen from a high of HK$4.63 the day before yesterday to HK$2.50 now, a drop of 46% in three days, nearly 50%.

Without hesitation, he bought in to close his position at HK$2.50, and the 652.17 million shares he shorted were immediately executed.

A short position in BYD Electronics with HK$3000 million yielded a profit of HK$1376 million in three days, representing a gain of nearly 45.87%.

The group of people behind him were a little stunned when they saw Lu Chenzhou liquidate BYD Electronics' stock.

"What's going on? The market is plummeting, shouldn't we continue holding our short positions? Why did we buy back to close them out?"

"It dropped 45.87% in three days, which is a very high return. There's no need to continue shorting."

"Yes, and look, as soon as Brother Lu closed his position, BYD Electronics' stock price surged. Isn't that outrageous?"

"I suspect that quite a few institutions are watching Lu Ge's account, doing whatever he does. Otherwise, why would a large number of buy orders suddenly appear for BYD Electronics? It's highly likely that they were shorting the stock with Lu Ge before."

"Do you think there are any informants from those organizations among our group? Or are some of our classmates thinking they're being clever and following Brother Lu's lead?"

"Need I say more? Absolutely. And as far as I know, several second-generation rich kids at the school with Hong Kong accounts are following this scheme and have made quite a bit of money."

"Holy crap! Really? Isn't Brother Lu going to do anything about it?"

"Why should we care about them? They're just following the trend. Brother Lu gets the meat, and they get the soup. It's a win-win situation."

"That's true. Those who follow the trend are just there to prop up the sedan chair; there's no need to deal with them."

"But wouldn't doing this constitute market manipulation?"

"Are you out of your mind? Did Brother Lu contact anyone else privately? It's all been open trading, and you're telling me it's market manipulation? You try disclosing one yourself!"

Ignoring the whispers behind his back, Lu Chenzhou immediately used the HK$4376 million from selling BYD Electronics to short China National Building Materials.

China National Building Materials opened at HK$7.8, but he immediately drove it down to HK$7.5. The key issue was that a large number of followers followed suit, continuously dumping shares and causing the stock price to decline all the way down.

7.50、7.40、7.30、7.20、7.10、7.00、6.90、6.80、6.60......

China National Building Material closed at HK$6.42, a drop of 23.30%.

Lu Chenzhou opened his holdings and glanced at them.

Short selling target: China National Building Material (HK3323)

Short selling amount: HK$7976 million

Average transaction price: HK$8.48 (weighted average)

Short selling volume: 939.38 shares

Current price: HK$6.42

Short selling floating profit/loss: +HKD 1890.14

Floating profit/loss ratio: +23.70%

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Short selling target: Huaxin Pacific (HK0267)

Short selling amount: HK$2273 million

Average transaction price: HK$23.15

Short selling volume: 101.02 shares

Current price: HK$17.22

Short selling floating profit/loss: +HKD 599.05

Floating profit/loss ratio: +26.36%

Today, Huaxin Pacific's unrealized profit increased by HK$280.84 million compared to yesterday, representing a 12.75 percentage point increase.

China National Building Material Co., Ltd. (CNBM) shares plummeted today, resulting in a profit of HK$1420 million.

Including the HK$235 million BYD Electronics earned today, the total profit for the day is HK$1935 million.

Net assets also increased from HK$1.1607 million to HK$1.3542 million.

On the afternoon of October 8th, after the market closed, the post about Lu Chenzhou on Tsinghua University BBS had reached nearly two million replies, breaking the site's record for the highest number of replies since its inception.

The main post title has just been updated: [Glever Bro's Ascension Day: Net Profit of 1935 Million in One Day, Net Worth Exceeds 1.35 Million!]

The post provided a detailed recap of Lu Chenzhou's actions today:

BYD Electronic (HK0285): Shorted at HK$4.61, closed at HK$2.50, resulting in a profit of HK$1376 million in three days, a return of +45.87%.

China National Building Material (HK3323): Added HK$4376 million to short position, with an average cost of HK$7.65. Closed at HK$6.42, resulting in a single-day unrealized profit of HK$703 million.

Huaxin Pacific (HK0267): Hold position unchanged, short position at HK$23.15, closing at HK$17.22, unrealized profit of HK$599 million.

Total profit for the day: HK$1935 million

Net assets: HK$1.3542 million

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