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

Renmin University School of Finance and Economics male dormitory building

When the news of the market closing reached the school, the entire dormitory building was in an uproar.

"Have you heard? Huaxin Pacific shares fell 55% today!"

"55%? In one day?"

"Hong Kong stocks don't have daily price limits, so a 100% drop in a single day is possible, but 55% is already terrifying enough. The key question is, do you know how much money Brother Lu made on his short positions?"

"How many?"

"Someone took screenshots from his group chat, showing that his short positions in Huaxin Taifu had a floating profit of over 9900 million yuan, and his short positions in China National Building Materials had a floating profit of over 6100 million yuan, totaling 1.6 million yuan. Adding the profits he had already realized, his total net assets amounted to 2.68 million yuan."

The dormitory was quiet for a moment.

"2.68 million? Just a month ago he was borrowing money to buy steamed buns."

"He wasn't borrowing money to buy steamed buns, he was borrowing money to buy stocks. On September 18th, he asked people in the dormitory to borrow money, but many people refused, including me. At the time, I thought he was crazy. Now? I'm the one who's crazy."

"Li Ming borrowed it and invested another 10,000, so now he has almost two million in his account."

"Stop talking, you'll regret it the more you say it."

"Brother Lu sat there today, watching the stock price drop from 9 yuan to 6.5 yuan, and he remained expressionless the entire time. I watched through the screen, and my hands were shaking. I saw it with my own eyes, and he didn't move an inch, like a stone. I could never learn that kind of composure in my entire life."

"So he is Brother Lu, and you are you."

"...you're right."

The discussion in the girls' dormitory focused more on the relationship between Wen Zhiyu and Lu Chenzhou.

"Did you see the market today? Huaxin Pacific fell 55%, and China National Building Material fell 10%. Lu Chenzhou made 100 million yuan from his short positions in one day."

"Wen Zhiyu went again today, right? She invested 30,000 yuan. How much money is in her account now?"

"She terminated her contract early and took 300,000 yuan with her, and the remaining tens of thousands continued to grow in her account. Based on her current net worth, those tens of thousands should have become more than 400,000 yuan."

"Over 400,000? My God."

"And her mother's surgery is already over and she's recovering well, so she's got both a healthy baby and money."

What does it mean to gain both people and money?

"Think about it, she made the money, and... she's always standing next to Lu Chenzhou, what do you think?"

"That seems to be true. I heard that Wen Zhiyu and Lu Chenzhou were eating lunch on a bench at the entrance of the science park today, and they were practically feeding each other mouth-to-mouth."

"The way you're saying it makes it sound like there's something going on between them."

"Heh! Do you know the company name? Zhizhou Capital, the 'Zhi' from Wen Zhiyu, and the 'Zhou' from Lu Chenzhou. Don't you understand?"

"Let's not talk about that. Did you see today's intraday chart? It opened at 9 yuan, hit a low of 6.2 yuan, and closed at 6.5 yuan. In that kind of market, I would have run away long ago. Wen Zhiyu stood next to him the whole time, without saying a word. This trust is more valuable than anything else."

In the dormitory at the end of the corridor, Wen Zhiyu's three roommates sat together, their phone screens displaying a screenshot of their stock holdings.

Xiao Zhou was the first to speak: "Zhiyu went to room 608 again today and stood there all day. When she came back after the market closed, I asked her how much she made, and she said it was alright. Alright? Making tens of thousands a day and you call it alright?"

"She's starting to sound more and more like Lu Chenzhou."

"Of course! Spending every day with that person, how could you not look the same?"

"Do you think she really is...?"

"Is it really something?"

"It's nothing."

The group exchanged glances and laughed, but none of them asked the question aloud.

Department of Finance

Zhou Xingbang sat in his office, the computer screen in front of him displaying today's candlestick chart for Huaxin Taifu.

A huge bearish candlestick plunged from 9.00 to 6.50, a drop of 55.10%, with a turnover of HK$68.72 billion and a turnover rate of over 25%.

He's been watching for almost ten minutes.

My phone vibrated; it was from Department Head Wang Jianguo.

"Old Zhou, how much did your student Lu Chenzhou earn today?"

Zhou Xingbang smiled wryly and replied, "The floating profit on the short positions in Huaxin Taifu is over 9900 million, and the floating profit on the short positions in China National Building Material is over 6100 million, totaling 1.6 million. Adding the previous figures, the total net assets are 2.68 million Hong Kong dollars."

There was a full five seconds of silence on the other end of the phone.

"2.68 million? For one student?"

"Yes. One hundred million new cases every day."

There was silence on the other end of the phone.

After a while, Wang Jianguo's voice came: "The matter of reporting him is no longer being mentioned by the higher-ups."

The China Securities Regulatory Commission's investigation has concluded, and no violations were found.

He has now registered a company in Hong Kong, obtained the license, and resolved the compliance issues.

"I know."

"Old Zhou, what do you think he'll do next?"

Zhou Xingbang stared at the candlestick chart on the screen and remained silent for a while: "He said it depends on the situation."

I think he doesn't not know what to do, he just doesn't want to say it.

He is the kind of person who never does anything without careful consideration.

The fact that he didn't close his position today means he doesn't think the market has bottomed out yet.

Whether tomorrow is peaceful or not depends on how we proceed.

"You really trust his judgment that much?"

Zhou Xingbang laughed: "Director Wang, from September 18th until now, when has he ever made a wrong judgment?"

There was no further response on the other end of the phone.

China World Trade Center, CICC Research Department

Lin Zhengmao sat at his desk, with Lu Chenzhou's trading records for the day spread out 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.

But it was this lack of operation that made him think for a long time.

Li Mingyang stood at the door, holding a newly printed summary of Hong Kong stock market closings.

"Chief Lin, CEFC China Energy fell 55% today, closing at HK$6.5. Lu Chenzhou's short positions have seen an additional HK$100 million in unrealized profit in one day."

Lin Zhengmao remained silent.

Li Mingyang added: "He didn't close a single order today. He didn't close when China National Building Materials rebounded, and he didn't close when CEFC China Energy plummeted by 55%. He just sat there and watched all day."

Lin Zhengmao remained silent for a long time before speaking:

"Keep an eye on him. We'll close our positions whenever he does. If he doesn't move, we won't either."

"clear."

Goldman Sachs Asia Headquarters, Central, Hong Kong

Wei Zhexuan stood in front of the whiteboard in the trading hall, with Huaxin Taifu's stock chart for today displayed before him.

Cheng Jiajun stood to the side, holding a transaction record in his hand.

"Boss, CEFC China Energy closed at HK$6.5 today, down 55%. Lu Chenzhou's short positions have seen an additional HK$100 million in unrealized profit in one day, and he didn't close a single position today."

Wei Zhexuan didn't speak. He stared at the vertically falling candlestick on the whiteboard for a long time.

"Of course he won't settle it; he's waiting."

"What are you waiting for?"

Wei Zhexuan turned around and looked at his team: "Who was dumping the shares today? It was us, Morgan Stanley, Citigroup, Soros, and Paulson."

We are unloading our shares, retail investors are selling at a loss, and leveraged accounts are being liquidated.

All the selling pressure came in today, causing the stock price to plummet from 9 yuan to 6.5 yuan.

But what about tomorrow? Will we still smash things like this tomorrow? No.

The worst of the panic has passed. Tomorrow, selling pressure will decrease, and buying pressure will increase.

The stock price won't rebound, but the decline will slow.

"Why is Lu Chenzhou upset?"

"Because his target price is not 6.5, his target price is lower."

He knew today's plunge wasn't the end, it was the beginning, so he waited.

Cheng Jiajun was silent for a moment, then said, "Boss, how about tomorrow..."

"We won't go with them; that's not our business."

Cheng Jiajun turned to leave, but stopped at the door and turned back to ask, "Boss, when do you think he'll level up?"

Wei Zhexuan didn't look up; his voice came from behind the computer: "When he feels the market has bottomed out, when market sentiment has stabilized, and when those large short-selling institutions start closing their positions, he will be one step ahead of them, but not by much."

Cheng Jiajun nodded, indicating that he could continue holding his position.