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

At 2 p.m., Lu Chenzhou returned to Yuesi Youth Hostel.

He didn't turn on the computer, but instead lay in bed, closing his eyes to rest.

My mind is racing through the remaining tasks for today.

Chen Yongren submitted the materials to SFC this afternoon. The company registry will approve them on Friday, and the license will be issued before next Monday.

The funds were then transferred from Xia Yaozong's account to the new company's account, and the compliant fund product process began.

Each and every one of them, clearly and distinctly.

Hong Kong stocks closed at 4 p.m.

Lu Chenzhou glanced at the closing data.

The Hang Seng Index closed at 15998.30 points, a sharp drop of 834 points, or 4.96%, in a single day.

Huaxin Pacific closed at HK$16.06, down 6.63%.

China National Building Material closed at HK$4.73, down 14.31%.

He refreshed the portfolio page.

Huaxin Pacific's short position unrealized profit: approximately HKD 900 million

China National Building Materials short position unrealized profit: approximately HK$2800 million

Total unrealized profit/loss: approximately HK$3700 million

He closed his laptop and ate a bowl of wonton noodles at a noodle shop near the hostel.

There weren't many people in the store, and financial news was playing on the TV.

The host is reporting on today's Hong Kong stock market, with the Hang Seng Index plunging 834 points to a three-year low.

China National Building Materials Co., Ltd. (CNBM) plummeted by more than 14%, leading the decline in the state-owned enterprise index.

The scene cuts to the stock exchange, where a middle-aged man says to the camera with a blank expression, "China National Building Material fell 14 points today. I will never touch Hong Kong stocks again in my life."

Lu Chenzhou kept his head down as he ate his noodles, without looking up.

After finishing his noodles, he returned to the hostel and turned on his computer.

There are already hundreds of unread messages in the group.

"China National Building Materials fell 14% today, that's fantastic!"

"Brother Lu must have made at least twenty or thirty million from his short positions today, right?"

"Huaxin Taifu only dropped 6 points, Rongjia still has something to offer, there's someone supporting the market."

"Stop guessing, Brother Lu will naturally level the score when the time is right."

Lu Chenzhou didn't reply. He closed the group chat, turned off the lights, and lay down on the bed.

Today was another ordinary day, another day of earning millions.

China World Trade Center, CICC Research Department.

Lin Zhengmao left later than usual tonight.

He sat at his desk, with Lu Chenzhou's trading records for the day in front of him.

Actually, there wasn't much of a record. Lu Chenzhou didn't make any trades today, and his holdings remained unchanged.

Huaxin Taifu's short position has a floating profit of 900 million, and China National Building Materials' short position has a floating profit of 2800 million, totaling 3700 million.

3700 million, in one day.

Li Mingyang hadn't left yet; he stood at the door, holding a newly printed summary of Hong Kong stock market closings.

"Chief Lin, today China National Building Materials fell by 14 points, and Huaxin Taifu fell by more than 6 points. Lu Chenzhou's short position has expanded its floating profit again, earning nearly 4000 million in one day."

Lin Zhengmao remained silent.

Li Mingyang paused for a moment, then said, "The small positions we took also made some money. China National Building Materials made more than ten percent, while Huaxin Taifu made less than one percent."

Lin Zhengmao looked up at him: "Huaxintai is supported by wealthy people. The Rong family's stock has fallen to this level, they can't just ignore it."

"Should we increase our holdings?"

Lin Zhengmao remained silent for a few seconds.

"No, we won't add more. Huaxin Taifu's position is already limited, but we can add more to China National Building Material's position."

Li Mingyang nodded and turned to leave.

"Wait a minute," Lin Zhengmao called out to him.

Li Mingyang turned around.

Lin Zhengmao spoke in a very calm tone, as if he were talking about something that had nothing to do with him.

"He made nearly 4000 million today, but he didn't close his positions. What do you think he's waiting for?"

Li Mingyang thought for a moment: "What if Huaxin Taifu's stabilization funds can't hold up?"

Lin Zhengmao did not answer, but waved his hand.

Li Mingyang left and gently closed the door behind him.

Lin Zhengmao sat in the chair, staring at the ceiling.

One day, 4000 million, one student.

He had spent his entire life doing research and had seen countless trading records. But he had never seen a trader like this before.

Goldman Sachs Asia Headquarters, Central, Hong Kong.

Cheng Jiajun did not leave.

Most of the people in the trading hall had already left, leaving only a few analysts working overtime to organize the data.

He sat at his workstation, in front of him was Lu Chenzhou's trading record for the day.

There are no changes; Huaxin Taifu and China National Building Material each have 1.6 million, double leverage.

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

Rong family's company stock fell 6.63% today. Someone is supporting the stock price; otherwise, it would have fallen even more.

He picked up his phone and scrolled to the chat window of the friend who did margin trading.

Did Lu Chenzhou make any moves today?

The other party replied instantly: "No, my holdings haven't changed."

When does he plan to close his position?

"Brother, how would I know? I'm not a mind reader."

Cheng Jiajun put down his phone and leaned back in his chair.

He recalled the look Wei Zhexuan had given him in the elevator earlier that day.

The look in his eyes meant: If Goldman Sachs won't invest, you're not allowed to either.

But Cheng Jiajun knew in his heart that Wei Zhexuan couldn't control his investment with his personal money.

In just one month, 150 million turned into 1.6 million. That's an incredibly attractive increase.

He opened his phone, scrolled to a private account, and checked the balance.

He opened the screenshot that Lu Chenzhou had posted in the group again and looked at the string of numbers.

Double leverage, 3.2 million, Huaxin Taifu and China National Building Materials.

He locked his phone, stood up, picked up his coat, and walked out of the trading hall.

The corridor was quiet; the leather shoes made no sound as they stepped on the carpet.

He walked to the elevator, pressed the button, and while waiting for the elevator, one thought kept running through his mind.

The elevator arrived, and the doors opened.

He went inside and pressed the button for the first floor.

The moment the door closed, he took out his phone and sent a message to his friend who did margin trading:

"I need leveraged financing."

The other end replied with a single word: "Okay."

The college's office building, the director's office.

Wang Jianguo didn't leave today.

He sat at his desk, in front of him was the news that Lu Chenzhou had made nearly 4000 million yuan that day.

He picked up the phone, intending to call Lu Chenzhou, but hesitated for a moment and then put it down.

What's the point of saying anything after hitting him? Tell him to be aware of the risks? That's already been said.

Tell him to stop operating? I said that before, but Lu Chenzhou didn't listen.

He leaned back in his chair, staring at the ceiling.

Acquire a shell company and operate in compliance with regulations.

This student had even planned out his escape route in advance.

He sighed, turned off the light, and walked out of the office.

On Tsinghua University's BBS, that post has been upvoted to 1.5 million views.

Today's plunge has intensified the discussion.

"China National Building Materials fell 14 points in one day, and Lu Chenzhou made nearly 4000 million yuan from his short positions today."

"4000 million a day? Didn't he only have 1.6 million in principal before?"

"With a principal of 160 million and leverage of 2, the position size is 320 million. China National Building Material fell by 14%, which is 44.8 million. Huaxin Taifu fell by 6%, which is also 9.6 million. The total is more than 54 million, but his opening cost is not the lowest point today, so it is probably just over 40 million."

"4000 million a day..."

"The key point is that he didn't close his position; he didn't close out his 4000 million in unrealized profits."

"If it were me, I would have run away long ago."

"So you won't earn 4000 million."

"How much do you think it can really go? China National Building Materials has already fallen to 4.73 today, can it go any lower?"

"Morgan Stanley's target price is 0, what do you think?"

"What about Huaxin Taifu? Someone was supporting the market today, otherwise it would have fallen even more."

"How long can the market support last? The hole in Australia is there; who can keep up with it?"

"So he's just going to hold onto it like that? Waiting for the market stabilization funds to run out?"

"Yes, he's waiting. Waiting for the day when the Rong family can't hold on any longer."

"He's waiting for the Rong family to collapse. That sounds terrifying!"

"This isn't meant to scare you, it's the truth. Huaxin Taifu's fundamentals are what they are. Rongjia can protect the share price, but not the performance. As the Australian dollar continues to fall and exchange losses continue to widen, the share price will fall even further when the results are released."

"So he's looking at the fundamentals, not the technicals?"

"He has always focused on fundamentals, starting with BYD."