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

Renowned stock commentator Chen Yonglu said loudly on a radio program: "A 100 basis point interest rate cut shows that the Hong Kong Monetary Authority's determination to rescue the market is unwavering."

Friends, I've said it many times: Hong Kong is not an isolated island. The Hong Kong Monetary Authority has plenty of resources. The most panicked moments in the market are often the darkest hour before dawn.

On the forum, retail investors began to discuss the matter heatedly:

[Retail Investor Xiao Zhang]: President Ren's words are truly law! He cut interest rates as he said he would, by 100 basis points, that's ruthless. Hong Kong stocks are saved tomorrow.

[Veteran Stock Investor Mr. Li]: I've been in the stock market for thirty years, from the 1987 stock market crash to the Asian financial crisis. Every time the Hong Kong Monetary Authority intervenes, the market responds favorably. This time will be no exception. I'm not saying anything more; I'm adding to my HSBC position when the market opens tomorrow.

[Cautious Investor]: This press conference was packed with information. Although it only adjusted the discount window premium, the impact is not necessarily small. It's like a fever of 40 degrees Celsius; a strong dose of medicine is needed to bring the fever down. Moderation and precision are the best approach.

......

October 10th, Thursday.

Early in the morning, Lu Chenzhou arrived at room 608 as usual.

U.S. stocks continued to fall overnight, with the Dow Jones Industrial Average dropping 2%, marking its sixth consecutive day of decline.

The news of a coordinated interest rate cut by six major central banks around the world failed to restore market confidence, and the subsequent rise and fall speaks volumes.

Yesterday's closing price: HK$17.22

Closing price today: HK$16.92

Today's floating profit/loss: +HKD 629.35

Today's profit/loss ratio: +27.69%

Change from yesterday: +HKD 30.30

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China National Building Material (HK3323)

Short selling amount: HK$7976 million

Average transaction price: HK$8.48

Short selling volume: 939.38 shares

Yesterday's closing price: HK$6.42

Closing price today: HK$6.02

Today's floating profit/loss: +HKD 2310.87

Today's profit/loss ratio: +28.98%

Change from yesterday: +HKD 419.66

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total

Today's floating profit/loss: +HKD 2940.22

Yesterday's net assets: HK$1.3542 million

Net assets today: approximately HK$1.45 million

Zhang Yixing stared at the numbers on the screen, speechless for a long time.

Xia Yaozong, on the other hand, was quite relaxed. Leaning back in his chair, he said, "Looks like the sports car is safe."

After the market closed, the post on Tieba was updated.

Someone posted today's market data and Lu Chenzhou's holdings information.

Huaxin Taifu and today's lowest and highest closing prices, the same data for China National Building Material, the floating profits of two short positions, and the growth of net assets.

Some people marveled that they could still make money even when the market rose by more than three percent, while others said it wasn't because of their stock picking skills but because of their sound logic, and still others sourly said it was just good luck.

But he was quickly countered: "With good luck, you can get it right for 21 consecutive days?"

There are also a few scattered posts talking about Lu Chenzhou's illegal management of clients' assets, but not many people are paying attention to them.

October 10th, Friday, 7:10 AM.

When Lu Chenzhou arrived at room 608, Zhang Yixing was already in front of the computer.

His eyes were dark, clearly he hadn't slept well, and the screen in front of him displayed the closing data of the US stock market overnight.

The Dow Jones Industrial Average fell 7.33%, the S&P 500 fell 7.62%, and the Nasdaq Composite fell 5.47%.

The market fell for the seventh consecutive trading day, and even coordinated interest rate cuts by central banks around the world failed to restore market confidence.

Lu Chenzhou sat down, turned on his computer, and brought up the Hong Kong stock futures page.

Hang Seng Index futures fell nearly 4 points in pre-market trading, to around 14800.

Huaxin Pacific's pre-market price was HK$16.20, down HK$0.72 from yesterday's closing price.

China National Building Material's pre-market price was HK$5.60, down HK$0.42 from yesterday's closing price.

His short positions will continue to profit when the market opens today.

At 7:40, Xia Yaozong pushed open the door and came in.

He didn't look well; he had dark circles under his eyes, as if he hadn't slept all night.

He wasn't carrying breakfast or an apple, which wasn't like him.

"What's wrong?" Lu Chenzhou asked without looking up.

Xia Yaozong pulled up a chair and sat down, lowering his voice: "Shenzhou, something's happened."

Lu Chenzhou's fingers paused for a moment.

"My senior colleague from CICC just called me and said someone is reporting you."

Zhang Yixing suddenly turned his head: "What?"

"Report what?" Lu Chenzhou asked.

Xia Yaozong said slowly and deliberately, "The whistleblower letter has been sent to the China Securities Regulatory Commission regarding illegal fundraising and unauthorized asset management."

It wasn't done by students; someone used a professional reporting channel.

The room was silent for a few seconds.

Zhang Yixing blurted out, "Zhao Xianglong?"

Xia Yaozong shook his head: "It doesn't seem like it. Zhao Xianglong is already crippled. He doesn't have that kind of power."

My senior colleague said that the whistleblower's identity couldn't be found, but the wording of the whistleblower letter was very professional, like it was written by someone inside the financial industry, most likely a colleague who was jealous.

What was the regulatory reaction?

"We're already keeping an eye on it; it's not a formal case yet, just something we're watching."

But you know what that means.

With funds exceeding 100 million, the company manages funds on behalf of clients, and the target investors are unspecified classmates.

Either one of them is enough to cause a lot of trouble.

Zhang Yixing's face was a little pale.

Lu Chenzhou calmly analyzed, "There's no problem with the money. It's in a Hong Kong account. It was lent to me by you, not raised funds."

Wen Zhiyu and the other classmates entrusted me with managing their money on their behalf, and a contract was signed.

However, the fundraising method was flawed, as it was conducted publicly in the dormitory building.

Although it's limited to classmates, the label of "unspecified group" still applies.

He looked up at the gray skyline outside.

"Therefore, the plan needs to be moved up."

Xia Yaozong asked, "What plan?"

"Going to Hong Kong is not about buying a shell company, but about registering myself. I will go there to be the licensed person in charge."

If you apply through an agency now, it should be processed around December.

Xia Yaozong was stunned: "You agreed to go to Hong Kong?"

"Yes, it's an exchange student program at the University of Hong Kong. The application deadline is October 20th, so there's still time."

Zhang Yixing frowned: "If you go to Hong Kong, what about your studies here?"

"There aren't many classes in the third year, and exchange student credits are mutually recognized, so it won't delay graduation."

Moreover, it's actually more convenient for me to be in Hong Kong.

Hong Kong stocks, US stocks, foreign exchange, and commodities can all be traded through a Hong Kong account.

Once funds reach Hong Kong, they are essentially in the world.

Mainland regulations do not apply to Hong Kong.

Asset management on behalf of clients has become legitimate asset management, and fundraising has become the issuance of fund products.

The matter of the whistleblower letter naturally dissipated.

Zhang Yixing remained silent for a long time before asking, "So when are you leaving?"