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

The meeting moved into details.

Trading floor instructions, risk control lines, stop-loss lines, communication with regulators, and cooperation with the media.

There is someone in charge of each step, and there is a backup plan for each instruction.

Gray was the last to speak.

"Gentlemen, we have been preparing for this hunt for three months, and CITIC Pacific has handed us the knife."

The AU$94 billion contract was signed by them.

The execution price of 0.87 was chosen by them.

We simply did what we were supposed to do, saw the opportunity, and seized it.

He glanced around at the people in the conference room.

"See you in Hong Kong on Tuesday when the market opens."

Everyone stood up, shook hands, and left.

Thompson was the last to leave.

He walked to the door, stopped, and glanced back at Gray.

"Richard, are you really not going to investigate that student's matter?"

Gray was tidying up his files, without even looking up.

"No investigation."

Why?

Gray looked up at Thompson.

"Because no matter who he is, no matter how he knows, he's helping us crash the market."

One more short position or one less short position makes no difference to us.

He put the documents into his briefcase and stood up.

How much he can earn is up to his ability. How much we can earn is up to our plans; we'll each go our own way.

He patted Thompson on the shoulder and walked out of the conference room.

Thompson stood there, watching Gray's figure disappear at the end of the corridor.

Outside the window, the London night is bright.

The lights on the Thames cast long shadows on the water.

He turned around and left.

The meeting room was plunged into darkness.

October 20, 2008, Monday, 6:30 a.m.

Beijing, Renmin University Dormitory 302.

Lu Chenzhou opened his eyes, picked up his phone from the bedside table, and glanced at the closing data of the US stock market overnight.

The Dow Jones Industrial Average closed at 8852.22 points, down 127.04 points, or 1.41%.

The S&P 500 fell 0.62%, and the Nasdaq fell 0.37%.

U.S. stocks closed mixed, with the Dow Jones and S&P 500 falling and the Nasdaq slightly down.

After a continuous decline, the market still has not found its direction.

He put down his phone and sat up.

Huaxin Taifu is suspended from trading today, not for trading purposes, but to await an announcement.

By the end of October, Beijing was already feeling chilly, and the ginkgo leaves along the roadside were beginning to turn yellow.

He walked on campus at a steady pace, just like always.

At 7:30, he arrived at Room 608 of the Renmin University Cultural and Technological Park.

Zhang Yixing hasn't arrived yet, and Xia Yaozong hasn't come either.

He sat alone in front of the computer, opened the stock market software, and brought up the Huaxin Taifu page.

The stock code is still there, but the price column is blank, indicating that trading is suspended.

He leaned back in his chair and waited.

At eight o'clock sharp, Xia Yaozong pushed open the door and came in.

He was carrying two cups of soy milk and placed one on Lu Chenzhou's table.

"Trading is suspended today, why are you here so early?"

"Wait for the announcement."

Xia Yaozong sat down, turned on his computer, and brought up the Huaxin Taifu website.

What kind of announcement do you think will be released today?

"Losses, huge losses."

Xia Yaozong nodded and didn't ask any more questions.

At 8:15, Zhang Yixing arrived.

He didn't look well when he came in; he had dark circles under his eyes, clearly indicating he hadn't slept well.

"What's wrong?" Xia Yaozong asked.

Zhang Yixing sat down and turned on his computer.

"Last night, someone posted a message in a group saying that CITIC Pacific's foreign exchange contract losses may exceed 100 billion."

Who posted this?

"I don't know, but they made it sound very convincing."

The three of them were silent for a few seconds. Lu Chenzhou picked up his soy milk, took a sip, and said nothing.

Hong Kong stocks opened at 9:30 a.m.

Influenced by the mixed performance of US stocks overnight and the generally higher opening of Asian stock markets, the Hang Seng Index opened 137.58 points higher at 14691.79.

Lu Chenzhou did not move.

CITIC Pacific is suspended from trading, so he doesn't need to look into it.

But he opened the China National Building Materials website.

China National Building Material opened at HK$3.50, down about 3.6% from Friday's closing price of HK$3.63.

"China National Building Materials opened lower," Zhang Yixing said.

Lu Chenzhou nodded without saying anything.

After the market opened, the overall market began to rise.

The Hang Seng Index continued to rise, driven by petrochemical and telecom stocks. Sinopec rose more than 10%, China Mobile rose more than 7%, and real estate stocks also rebounded sharply, with China Overseas Land & Investment rising more than 12%.

Market expectations for government stimulus measures led to a broad rebound in real estate, financial, and telecommunications stocks.

At 10:30, China National Building Materials rebounded from its lows, reaching 3.50, 3.60, 3.70...

Lu Chenzhou's short positions were losing value, but he didn't move.

At 11:00 AM, China National Building Material Co., Ltd. turned positive, reaching HK$3.80.

The Hang Seng Index broke through the 15000-point mark, closing at 15185.91 points at midday, up 631.70 points, or 4.34%, with a turnover of HK$277.43 billion for the morning session.

"The market has risen by more than 600 points." Zhang Yixing's voice was a little tense. "Your short position..."

"It's still there." Lu Chenzhou's tone was calm.

"Aren't you going to reduce your holdings?"

"No rush."

At noon, after the market closed, Lu Chenzhou closed his laptop, went downstairs, bought a plate of fried rice, and ate it on a bench at the entrance of the science park.

The sunlight was dazzling, but there was an indescribable coolness in the air.

He took out his phone and saw a message from Wen Zhiyu.

"The announcement hasn't been released yet?"

"Wait until the afternoon."

"China's building materials prices have risen; how are your short positions faring?"

"fine."

He didn't say how much he lost.

It's not that I don't want to say it, it's that there's no need to say it.

He put his phone in his pocket, got up, and went back to room 608.

In the afternoon, Hong Kong stocks opened.

The Hang Seng Index continued its upward surge, reaching a high of 15472 points, a gain of over 918 points.

Market expectations for government stimulus measures led to a broad rebound in real estate, financial, and telecommunications stocks.

China National Building Material shares rose as high as HK$4.10 in the afternoon.

Lu Chenzhou refreshed the holdings interface.

China Building Materials short positions have lost nearly 30% of their value since the morning high.

But he still didn't move.

Sitting next to him, Zhang Yixing couldn't help but say, "Shenzhou, China National Building Materials rebounded from 3.4 to 4.1, a 20% increase. Your unrealized profits have shrunk considerably."

"I know."

Aren't you worried?

"Don't worry."

Why?

Lu Chenzhou glanced at the screen, his tone calm.

"Because today's rebound is not a reversal. So what if the market rose by 900 points? The trading volume was only 537 billion, less than last Friday. A rebound without trading volume won't last long."

Zhang Yixing opened his mouth, but no words came out.

Hong Kong stocks closed at 4 p.m.

The Hang Seng Index closed at 15323.01 points, a surge of 768.80 points, or 5.28%, in a single day, and climbed back above the 15000-point mark.

The Hang Seng China Enterprises Index rose 433.60 points, or 6.19%, to close at 7441.13.

China National Building Material closed at HK$4.05, up HK$0.55 from the opening price of HK$3.50, representing an increase of 11.57%.

Lu Chenzhou refreshed the holdings interface.

China National Building Materials short position unrealized profit: approximately HK$4400 million.

It's about 1200 million less than the morning's low, but it's still tens of millions.

He closed his laptop and leaned back in his chair.

"You haven't made a move all day," Xia Yaozong said, looking at him. "China National Building Materials has rebounded by 11 points, and you haven't sold a single share."

"Um."

"You don't regret it?"

No regrets.

Why?

Lu Chenzhou picked up the soy milk and took a sip; it was already cold.

"Because I know it will fall back down."

How did you know?

"Because it's not just one person rising; the entire market is rising today, with the Hang Seng Index up 5 points. This level of rebound is a sentiment recovery, not a trend reversal."

Emotional recovery may last for a day or two, but it won't change the fundamentals.

The fundamentals of China National Building Materials have not changed, the Australian dollar is still falling, and Huaxin Taifu is still incurring losses.

Therefore, today's rebound simply provides short sellers with a better position to hold their positions.

At 5 p.m., Huaxin Taifu's announcement was finally released.