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

Lu Chenzhou opened the holdings interface and took a look.

Huaxin Taifu short position: approximately 932 million shares, cost HK$17.15.

Current price: HK$6.60. Earnings per share: HK$10.55, unrealized profit: approximately HK$9832 million.

China National Building Material short position: approximately 2712 million shares, cost HK$5.90.

The current price is HK$3.80, with earnings per share of HK$2.10 and unrealized gains of approximately HK$5695 million.

The combined unrealized profit from the two transactions has exceeded HK$1.55 million.

His expression remained unchanged as he closed the holdings interface and continued watching the market.

At 11:00 AM, CEFC China Energy hit a low of HK$6.30.

A technical rebound followed, with the share price rising back to around HK$6.80.

"Someone is answering," Xia Yaozong said.

Lu Chenzhou glanced at the betting odds but remained silent.

That amount of buying pressure couldn't be absorbed.

The market closed at 11:30 a.m.

Huaxin Pacific closed at HK$6.75, down 53.51%.

China National Building Material closed at HK$3.85 at midday, down 4.94%.

After the market closed at noon, Lu Chenzhou ate the lunch that Wen Zhiyu had brought him on a bench at the entrance of the science park.

The sun was shining brightly, but there was an inexplicable chill in the air.

Wen Zhiyu looked at Lu Chenzhou, who was eating slowly and deliberately: "Huaxin Taifu has dropped by more than 50 points, did you break even?"

"no."

"You're not planning to settle this?"

"It depends."

Hong Kong stocks fell further after the market opened in the afternoon.

Huaxin Taifu continued its downward trend in the afternoon, with prices falling to 6.70, 6.50, 6.30, 6.00...

When it fell to HK$6.00, there was a brief period of buying support in the market.

Some people started placing buy orders at the 6.00 level, trying to hold this round number.

But the selling pressure was too great.

Morgan Stanley's trading desk placed sell orders for more than 500 million shares below 6.00, followed closely by Goldman Sachs and Citigroup.

5.90, 5.80, 5.70, 5.60...

"It's broken 6." Zhang Yixing's voice was a little hoarse.

Lu Chenzhou remained silent.

In the last half hour of trading, Huaxin Taifu's decline finally slowed down.

The stock price fluctuated between 5.50 and 5.80.

At 4:00 PM sharp, the closing bell rang.

The Hang Seng Index closed at 14428.00 points, a sharp drop of 895.01 points, or 5.84%, in a single day.

Huaxin Pacific's closing price: HK$6.50.

It plummeted 55.10% from HK$14.52 before trading was suspended.

China National Building Material closing price: HK$3.63.

It fell 10.37% from yesterday's closing price of HK$4.05.

Lu Chenzhou refreshed the holdings interface.

Position held: Shorting Huaxin Pacific (HK0267)

Number of shares held: 27,118,644

Average transaction price: HK$17.15

Current market price: HK$6.50

Market value of holdings: HK$56,949,152.40

Floating profit/loss: +HKD 103,050,847.60 (+62.21%)

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Position held: Short China National Building Material (HK3323)

Number of shares held: 27,118,644

Average transaction price: HK$5.90

Current market price: HK$3.63

Market value of holdings: HK$56,949,152.40

Floating profit/loss: +HKD 103,050,847.60 (+38.47%)

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total

Total short selling amount: HKD 320,000,000

Total market value of holdings: HKD 125,945,602.00

Total floating profit/loss: +HKD 194,054,398.00 (+50.34%)

Including the original net assets, the total net assets of the account have exceeded HK$2.68 million.

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

Xia Yaozong leaned back in his chair and let out a long sigh: "One hundred million more per day."

No one cheered in the room; everyone was still in shock.

Lu Chenzhou closed his laptop and stood up.

"Are you coming again tomorrow?" Zhang Yixing asked.

"Come."

Will Huaxin Pacific Securities continue to fall tomorrow?

Lu Chenzhou looked out the window at the gray sky.

"It will likely fall, but not as sharply as today. Today was the most panicked day; after the most panicked drop, it will be a gradual decline."

"So, are you going to balance it tomorrow?"

Lu Chenzhou remained silent for two seconds.

"It depends."

He picked up his coat and walked towards the door.

The door closed.

Room 608 was silent for a few seconds.

Xia Yaozong stood up and dusted off his pants: "He's adding a hundred million every day, and he hasn't even smiled once."

Zhang Yixing didn't move. He sat in front of the computer, staring at the closing price of Huaxin Pacific, HK$6.50.

He recalled something Lu Chenzhou had once said: "The fish tail has bones, there's no need to eat it."

Is today's drop the body or the tail of the fish?

he does not know.

But he knew, and Lu Chenzhou knew.

At 4:10 p.m., the closing bell had been ringing for ten minutes, but no one in room 608 had left.

The screen also displayed CEFC China Energy's closing price of HK$6.50.

The intraday chart line that plummeted from 9.00 to 6.50 was like a vertically falling knife, lying across everyone's retina.

"It dropped 55% in one day," someone murmured, their voice sounding like they were in a dream.

"Hong Kong stocks don't have daily price limits, but 55% is something I've never seen before in my 23 years of life."

"The key is the trading volume, 68 billion, with a turnover rate of over 25%. What does this mean? It means that some people are selling like crazy, while others are buying like crazy. Those who bought thought they were buying at the bottom, but ended up buying at the halfway point of the decline."

Xia Yaozong stood up from his chair, picked up the stack of newspapers, flipped through them, and then put them down.

He glanced at the spot where Lu Chenzhou had sat; the chair was still warm, but the man was gone.

"He barely said a word all day," Xia Yaozong said.

Zhang Yixing was still sitting in front of the computer, staring at the holdings interface, his fingers resting on the mouse, not moving at all.

"When the market opened, Huaxin Taifu was at 9 yuan, but it didn't move."

When it dropped to 8 yuan, he didn't budge.

When it dropped to 7 yuan, he didn't budge.

Even when it dropped to 6 yuan, he didn't budge.

The closing price was 6 yuan, and his short position's unrealized profit increased by 5 million yuan in one day.

He stood up, said "we'll see," and left.

The way he said "it depends" sounded like he was saying the weather was nice today.

Li Ming stood in the corner, clutching his phone, the screen displaying his calculated profits for the day.

He invested 10,000 yuan. Based on his initial investment of 1.5 million yuan, his profit today...

He calculated it several times, his fingers trembling the whole time.

Wang Hao, who was standing nearby, leaned over for a glance and gasped, "How much did you earn today?"

Li Ming turned off his phone screen and pushed up his glasses: "Don't ask anymore."

"I'll just take a look."

"Don't look at it, you won't be able to sleep if you do."

Wang Hao paused for a moment, then laughed: "I invested two thousand, and I made... well, never mind, I won't say anymore, I won't be able to sleep if I do."

The two leaned against the wall, neither of them speaking.

A boy wearing glasses squatted in the corner, holding a crumpled notebook filled with numbers.

He looked up and asked the people next to him, "Do you think Brother Lu will break even tomorrow?"

"have no idea."

"He said today that it depends on the situation, which means he hasn't made up his mind yet."

"It's not that I haven't thought it through, I'm just waiting."

"What are you waiting for?"

"Wait until the price drops to a certain level."

The person who asked the question paused for a moment, not understanding.

But a few people nearby nodded slightly, as if they understood something.

In the corridor, several people from other schools were still lingering. They couldn't get into room 608, but they refused to leave either.

A middle-aged man in a gray jacket squatted in the corner, holding a crumpled copy of the Hong Kong Economic Journal. The headline on the front page was eye-catching: "Mainland students short CEFC China Energy, making a profit of nearly 100 million."

He stared at the headline for a long time, then looked up and asked the person next to him, "How exactly does he pick stocks?"

"have no idea."

"Huaxin Taifu, the Rong family's company, nobody in Hong Kong dared to short it, but he did. It dropped 55% in one day, and he made over 100 million."

He folded the newspaper and put it in his pocket.

"I used to not believe that anyone could predict the market in advance, but now I do."

He stood up, dusted off his pants, and turned to walk towards the stairwell.