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

On Tieba, the title of the main post has been updated: "Leverage Bro closes out Huaxin Taifu position, making a profit of 1.18 million yuan, target public funds."

"1.18 million? Just for one stock?"

"Huaxin Taifu, from 22 yuan to 4.4 yuan, his short position cost was more than 17 yuan, making a profit of 12.7 yuan per share, 932 million shares, you can do the math yourself."

"That's it, I'm totally depressed."

"The key is that he closed the position at the lowest point, 4.40, the low of the day, and the market started to rebound after he closed it."

How did he know 4.40 was the bottom?

"He didn't know; he just felt he'd had enough in that position, so he left."

"What about China National Building Materials? Is he still holding onto it?"

"Here you go, Morgan Stanley's target price is 0, what do you say?"

"I heard that Lu Chenzhou is going to buy a public fund company for 2 to 5 million yuan, and also set up a private equity firm in mainland China."

He currently has 320 million in his account, but the profit split with investors is 30/70. After liquidation, he will receive approximately 140 million, leaving a shortfall of 77 million. He says he can pay the remaining amount within three months.

"I just want to ask one question: He's still short 0.77 million yuan. Even if China National Building Material's stock price drops further, will he be able to raise that much?"

"He currently holds a short position of 2712 million shares of China National Building Material. Even if the price drops to zero, it won't be enough to cover the 77 million yuan shortfall. He needs to find another way."

"Do you think he'll continue shorting that stock?"

Friday, January 10th.

7:30, Room 608, Renmin University Cultural and Technological Park.

Lu Chenzhou looked at the wontons, millet porridge, fried dough sticks, steamed buns, eggs, and soy milk that Wen Zhiyu had brought him, and his lips twitched.

Wen Zhiyu noticed it too, but she just wanted Lu Chenzhou to eat more and grow stronger.

Seeing Lu Chenzhou start eating the steamed bun, the corners of her mouth turned up slightly.

Overnight, US stocks were mixed, with the Dow Jones Industrial Average up 2.02%, the S&P 500 up 1.26%, and the Nasdaq Composite down 0.73%. European markets were also mixed.

In pre-market trading, Hang Seng Index futures opened about 2% lower at around 13800 points.

China Building Materials opened at HK$2.36, down 4% from yesterday's closing price of HK$2.46.

Huaxin Pacific's pre-market price was around HK$4.80.

Xia Yaozong leaned back in his chair: "2.36, China National Building Materials is heading towards 2 yuan."

Zhang Yixing stared at the screen: "Foreign capital is still dumping shares; there were a lot of sell orders placed last night."

Lu Chenzhou didn't say anything, he just kept eating.

At 9:30 a.m., the Hong Kong stock market officially opened.

The Hang Seng Index opened lower, around 13500 points.

China National Building Materials' opening price: HK$2.36.

The moment the market opened, a flood of sell orders appeared.

But unlike yesterday, someone was answering the call.

2.36, 2.38, 2.40, 2.45...

The stock price rose instead of falling.

Buy orders poured in like a tidal wave, swallowing up the sell orders from foreign investors one by one.

"Someone is snapping up shares," Xia Yaozong said, looking at the betting odds.

Lu Chenzhou stared at the betting odds and remained silent for a few seconds.

"It's not a rush to buy; it's someone trying to save themselves."

"Self-rescue?"

"China National Building Materials has been falling for so long, and some margin trading positions haven't been liquidated yet. They are pushing up the stock price to buy themselves time."

At 9:50 a.m., China National Building Material surged to HK$2.63, an increase of more than 11%.

On the order book, buy orders were densely packed while sell orders were sparse, indicating that the bulls held an absolute advantage.

Zhang Yixing's voice trembled slightly: "It's already 2.63 meters, do you want it to be flatter?"

Lu Chenzhou did not answer. He stared at the betting odds, his fingers resting on the mouse, motionless.

At 10:00 AM sharp, the market suddenly changed.

Foreign capital has stepped in.

A sell order of 1000 million shares was placed, instantly swallowing up the buy order at 2.63, and the stock price began to plummet.

2.60, 2.55, 2.50, 2.45...

Immediately following, a sell order for 800 million shares was placed.

2.40, 2.35, 2.30, 2.25...

Then came a sell order for 500 million shares.

Foreign sell orders poured in like an avalanche.

All the buy orders placed in the morning are now buried.

"Foreign capital has made its move." Xia Yaozong's voice was deep.

Zhang Yixing turned his head and looked at Lu Chenzhou, his expression unchanged.

At 10:15, China National Building Material fell below HK$2.20.

2.20, 2.15, 2.10, 2.05...

"Two pieces broke." Zhang Yixing's voice was somewhat excited.

Lu Chenzhou opened the holdings interface and took a look.

中国建材空单：2712万股，成本5.90港元。现价2.05港元。每股盈利3.85港元，浮盈约1.044亿港元。

He closed the interface and continued watching the market.

At 10:30, China National Building Material Co., Ltd. hit a low of HK$2.01.

The price drop went from an 11% gain to a nearly 15% loss, with an intraday volatility of over 26%.

On the order book, sell orders at a loss and forced liquidation surged, causing the stock price to fluctuate wildly around 2.01.

Someone placed a large number of buy orders at the 2.00 level, trying to hold this round number.

But the selling pressure was too great.

2.01, 2.00, 1.99, 1.98...

"The two yuan note is broken." Xia Yaozong's voice was a little hoarse.

Zhang Yixing couldn't help but ask, "Brother Lu, it's already 2 yuan, isn't that unfair?"

Lu Chenzhou remained silent for two seconds.

"No rush."

At 11:00, China National Building Materials fluctuated around 2.00.

Some people continued to accumulate shares below 2.00, and the selling pressure from foreign investors began to weaken.

Before the midday close, the share price rebounded to HK$2.05.

The market closed at 11:30 a.m.

China National Building Material closed at HK$2.05, down 16.67%, with an intraday low of HK$1.98, a drop of more than 19%.

Huaxin Pacific closed at HK$4.60, down 8%.

After the market closed at noon, Lu Chenzhou and Wen Zhiyu sat on a bench at the entrance of the science park. Lu Chenzhou frowned as he looked at a large piece of fatty meat in his lunchbox.

The sun was shining brighter today than yesterday, and the air was quite cool, but what was even more greasy was the fatty meat in the bowl.

Seeing Wen Zhiyu staring at him, Lu Chenzhou slowly added a large piece of fatty meat to his mouth.

She smiled slightly after watching Lu Chenzhou swallow the pill with a frown.

"Eating only vegetables isn't enough; sometimes you still need to eat some fatty meat."

"Besides, you're exercising both in the morning and at night, which is too strenuous. You need to eat more to replenish your nutrients."

After swallowing, Lu Chenzhou quickly picked up a piece of broccoli, chewed it slowly, and suppressed the greasy feeling in his mouth.

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

The Hang Seng Index plunged more than 1,000 points in the afternoon, falling below the 13000-point mark.

China National Building Materials continued to hover at low levels in the afternoon.

2.05, 2.03, 2.00, 1.98...

At 2:30 p.m., the price hit a low of HK$1.98.

However, the situation changed towards the end of the trading day.

Someone bought a lot of shares below 1.98, slowly pushing the stock price back up.

2.00, 2.05, 2.08, 2.10...

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

The Hang Seng Index closed at 12618.38 points, a sharp drop of 1142.11 points, or 8.30%, hitting a multi-year low.

China National Building Material closing price: HK$2.10.

It fell 14.63% from yesterday's closing price of HK$2.46.

The stock price fell as low as HK$1.98, a drop of 19.5%, and as high as HK$2.63, a fluctuation of over 26%.

Huaxin Pacific closed at HK$5.06, up 1.2%, marking its second consecutive day of gains.

Lu Chenzhou refreshed the holdings interface.

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$2.10

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

Floating profit/loss: +HKD 103,050,847.60 (+64.41%)

With the profits already realized, the account's total net assets have exceeded HK$3.1 million.

No one cheered in the room; everyone looked at the plummeting stock market and China National Building Materials, feeling dejected.

Zhang Yixing stared at the numbers on the screen, his fingers trembling.

Xia Yaozong leaned back in his chair and let out a long sigh: "China National Building Materials, from 5.9 yuan to 2.1 yuan, short positions have a floating profit of 1.03 million yuan."

Adding the 1.18 million yuan liquidated by Huaxin Taifu, plus the previous amounts.

Brother Lu, you currently have 3.1 million in cash and unrealized gains in your account.

Lu Chenzhou calmly closed his laptop and stood up.

"Will China Building Materials prices continue to fall tomorrow?" Zhang Yixing asked.

Lu Chenzhou paused for a moment.

"Foreign investors haven't finished selling off their shares yet, so the price will likely fall further on Monday."

"So, is your Monday flat?"

Lu Chenzhou remained silent for a few seconds.

"It depends."

He picked up his coat and walked towards the door.

Wen Zhiyu called out to him.

Lu Chenzhou.

He stopped and turned his head.

Wen Zhiyu looked at him, hesitated for a moment, and said, "You said today that there's no bottom to the panic, so where do you think the bottom of China National Building Materials lies?"