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

Late at night, Zhixing Building of the National People's Congress.

Principal Ji Baocheng sat at his desk with several documents spread out in front of him.

At the top is a printed post from a Baidu Tieba forum: "Lu Chenzhou, a finance student at Renmin University, turned 1 yuan into 3.1 million yuan in 36 days, and Zhizhou Capital has started fundraising."

Next to it was information compiled by the secretary: Lu Chenzhou, a junior in the School of Finance and Economics.

On September 18, a tenfold leveraged buy-in of CITIC Securities occurred, and three major positive developments were announced that evening.

He then shifted his focus to Hong Kong stocks, going long on BYD, shorting BYD, going long and short on BYD Electronics, shorting Huaxin Pacific, and shorting China National Building Material.

In 36 days, the value of the company increased from HK$1 to HK$3.1 million.

Zhizhou Capital was registered in Hong Kong on October 17 and obtained SFC9 license.

The fundraising was announced on the evening of October 24. The minimum investment was HK$1 million, with a management fee of 0.5% and a 50% commission on any performance exceeding 100%.

He picked up his teacup and took a sip; the tea had already gone cold.

He picked up his phone and went to the Renmin University alumni group.

Guo Fansheng invested 1000 million yuan, Dai Zhikang invested 500 million yuan, and Qiu Guogen invested 2000 million yuan.

Ren Huaixiu said, "I'm paying attention."

The group chat was still buzzing with messages. Someone asked, "Does Principal Ji know about this?" and someone replied, "The principal doesn't care about this."

Ji Baocheng put down his phone and leaned back in his chair.

He knew this student; Zhou Xingbang had reported to him last month that a student at the salon had shouted "1929 is a golden opportunity," which was ridiculed by the entire audience.

Then he borrowed money at high interest rates to buy stocks and made a profit.

He didn't pay much attention at the time; it wasn't unusual for students to trade stocks.

Many students from Renmin University's School of Finance and Economics go on to work in finance.

But things are different now. This student isn't speculating in stocks; he's registered a company in Hong Kong, obtained a license, and is raising funds legally.

Moreover, among the fundraising targets were a string of names he was familiar with: Guo Fansheng, Dai Zhikang, and Qiu Guogen.

He knew these people; he had watched them leave Renmin University.

They wouldn't spend tens of millions just because a junior student said something at a salon.

They paid because they understood Lu Chenzhou's actions and recognized his judgment.

Ji Baocheng thought for a moment, picked up the landline, and dialed Zhou Xingbang's number.

It rang twice, then I answered.

"Teacher Zhou, it's me. Are you still awake?"

"Principal Ji?" Zhou Xingbang's voice sounded somewhat surprised. "He's not asleep; he's looking at documents."

"Keep an eye on Lu Chenzhou's matter. It's not a bad thing, but make sure nothing goes wrong."

"clear."

"Also," Ji Baocheng paused, "tell him that the school supports students' innovation and entrepreneurship, and remind him to be mindful of compliance."

"Okay. I'll talk to him tomorrow."

The phone hangs up.

Ji Baocheng put down the landline and leaned back in his chair.

He remembered something.

In 2003, Renmin University alumnus Duan Yongping donated US$3000 million to the university, which was the largest single donation received by a Chinese university at the time.

At the donation ceremony, he said, "The achievements of our alumni are the greatest pride of our school."

Lu Chenzhou is not an alumnus yet; he is still a junior in college.

But Ji Baocheng had a feeling that this student would become one of the greatest sources of pride for Renmin University in the future.

It wasn't because of how many scholarships he received at school, but because he proved himself in the market with real money.

An analyst from CITIC Securities was working overtime to write a weekly report when he came across a screenshot from a Renmin University alumni group. He paused for a moment, then forwarded the screenshot to his company group.

The group was quiet for a few seconds, then it exploded.

"Guo Fansheng invested 1000 million? Dai Zhikang 500 million? Qiu Guogen 2000 million? What kind of project did they invest in?"

"It's not a project, it's investing in a student. A junior at Renmin University, who grew his business from 1 to 3.1 million in 36 days."

"36 days? 3.1 million? Are you sure you didn't add a few extra zeros?"

"Do the math yourself. On September 18th, you bought CITIC Securities at the limit down price. That night, there were three major positive developments, and the market hit the limit up the next day."

The subsequent companies involved—BYD, BYD Electronics, CEFC China Energy, and China National Building Materials—are all publicly available information and can be verified.

The group chat was silent for a few seconds.

"What kind of operation is this?"

"That's not skill, that's cheating."

Another analyst from a securities firm posted on his WeChat Moments: "The biggest news tonight is not the rebound in US stocks, but that a junior student from Renmin University registered a private equity fund in Hong Kong and raised funds in three days."

Guo Fansheng, Dai Zhikang, and Qiu Guogen are all investing.

Do you know Qiu Guogen? He's the founder of Chongyang Investment, ranked 328th on the 2008 Forbes Rich List, and invested 2000 million yuan.

One person commented below: "Are you sure this isn't fake news?"

"The screenshots have already been posted; they're from the Renmin University alumni group. See for yourself."

"Then I'll take a look too."

A commenter replied a while later: "I've finished reading it, and I'm speechless."

"Me too."

The news spread from the securities firms to the fund companies.

A fund manager at a mutual fund was at home reviewing research reports when he received a message forwarded by a colleague, which he read three times.

Then I replied to my colleague: "I know this student."

In September, he claimed at a salon that 1929 was a golden opportunity, which was ridiculed by the entire audience.

Then he borrowed money at high interest rates to buy CITIC Securities.

I thought he was crazy back then, but now I realize I was the one who was crazy.

A colleague replied, "You weren't alone back then; the whole market thought he was crazy."

"So he made 3 million, while I'm still working for someone else."

"Don't say it, it hurts."

A research director at a private equity firm was working overtime when he saw the news and reviewed Lu Chenzhou's 36-day trading from beginning to end.

Then he posted in the company group: "I've finished reviewing everything, and every operation was on time."

It wasn't luck, it was judgment, execution, and composure.

"Composure?"

"On September 29, BYD opened at 16 yuan. He cleared his long position and went short at the same time.

What kind of market is that? The news of Buffett's investment has just been released, and the entire market is scrambling to buy.

He dared to turn around and short sell at that position; what else could that be but composure?

There was a moment of silence in the group chat.

Do you think he can sustain this?

"I don't know, but Guo Fansheng, Dai Zhikang, and Qiu Guogen think he can do it; they're smarter than me."

"Too."

The news reached Hong Kong in the early hours of Saturday morning.

The traders in Central are still awake, not because they don't want to sleep, but because they can't fall asleep.

A Goldman Sachs trader in Asia was working overtime when he saw a screenshot from the Renmin University alumni group and forwarded it to the company's internal group.

The group was silent for a few seconds, then someone replied: "I've been watching this person's moves, ever since the BYD wave."

"Regarding the Huaxin Taifu incident, he dared to take action against the Rong family; he did what no one else in the Hong Kong market dared to do."

"When he shorted CEFC China Energy, we were still discussing whether to follow suit."

"And the result?"

"He ended up making 1.18 million, but we didn't follow suit."

The group chat fell silent again.

An analyst from another investment bank posted on his WeChat Moments: "A junior at Renmin University grew his business from 1 to 3.1 million in 36 days."

A company registered in Hong Kong, obtained SFC9 license, and raised hundreds of millions in three days.

Guo Fansheng, Dai Zhikang, and Qiu Guogen are investing.

This generation of young people lacks martial ethics.

One commenter wrote: "It's not that they lack martial ethics, it's that they've used a dimensional reduction attack."

What is meant by "dimensional reduction attack"?

"You're looking at the candlestick chart, he's looking at the valuation."

While you're chasing highs and selling lows, he's calculating probabilities.

You're studying technical metrics, he's studying human nature.

The dimensions are different.

"Now that you've said that, I'm even less able to sleep."