Sha Zhu's Rebirth in the Courtyard: Starting with Hitting Someone in the Head

Chapter 424 Internal and External Chart Analysis: Precise Double Bottom Harvesting

Across the ocean, the decline in US stocks has not yet stopped.

Since the failure of the bailout bill, Wall Street has been gripped by a near-numb pessimism. Many institutions that rushed in to buy at the bottom, believing in favorable policies, are now suffering greatly.

The news is updating bad news almost every day, with one once-glorious financial institution after another collapsing in this storm of the century.

All of this happening in the United States has completely confirmed He Yuzhu's earlier judgment.

The US stock market continues its relentless decline, and panic, like a plague, is spreading throughout the global capital market.

To protect themselves, major overseas institutions have begun withdrawing cash from around the world at any cost. They are disregarding the valuations of their Hong Kong and mainland-related stocks, seeking only to sell them off as quickly as possible and bring US dollars back to their home countries to fight the crisis.

This frantic flight to safety has dragged both Hong Kong and A-shares into a deep abyss.

Objectively speaking, China's real economy has not experienced a systemic collapse like that of the United States. Many listed companies are operating steadily, with normal revenue and orders, and the companies themselves have not encountered any major problems.

However, the massive influx of foreign capital relentlessly dumped shares and fled the market, which was dominated by panic. Domestic investors and institutions, seeing the index plummeting daily, grew increasingly anxious and joined in the selling, creating a vicious cycle.

A large number of high-quality companies with solid fundamentals have seen their stock prices ruthlessly and unjustly driven down by panic, continuously declining and approaching historical lows rarely seen in decades.

Hong Kong, Zhonghuan Financial Trading Room.

A row of screens displayed real-time market data and transaction figures. News flashes were constantly updated, and financial briefings in both Chinese and English were continuously delivered.

He Xiao, He Chen, and He Xin have been spending almost every day here lately.

After the disagreement over the last attempt to buy the dip in European and American stocks, He Chen has become much more composed in his approach to the market.

They witnessed firsthand how Wall Street capital rushed into the US stock market, only to be trapped, lose money, and suffer margin calls. With this cautionary tale before them, the three brothers became even more cautious in their actions.

On the screen, the Hong Kong stock index continued to decline, and the A-share market followed suit, consistently hitting a new low each day at the close.

Pessimistic voices are everywhere in China. Financial television programs and research reports from major securities firms are filled with bearish opinions. The vast majority of people believe that the crisis is far from over and that the market will fall even further. No one dares to say that the bottom has been reached.

He Chen stared at the stock prices of those familiar leading Chinese companies on the screen, feeling a mix of emotions.

He had personally investigated and contacted these companies in the past, and he knew how solid their foundations were. In normal years, acquiring these assets at the current prices would have been unthinkable.

"Foreign investors are only concerned with rushing back to their home countries to put out fires; they don't care how much their assets are worth at all," He Chen said in a low voice. "Many of these companies have no problems whatsoever; they're just caught up in the panic."

He Xin tapped the transaction details on the screen with her fingertip.

"We all understand the logic. But nobody can say for sure when the market will truly bottom out. If we rush in too early, and then there's another big drop later, we'll be trapped just the same way."

Having witnessed the disastrous bottom-fishing attempts on Wall Street, He Xin now takes a more cautious approach. Opportunities are presented, but no one dares to arbitrarily determine the exact bottom based on their feelings.

He Xiao sat in the main seat and silently went through all the market briefings and institutional research reports quickly.

The reasoning is simple: the opportunity is obvious, but the three brothers don't dare to make the decision on the timing of the bottom.

Just like the last time we discussed buying the dip in US stocks, the most crucial decision is still to listen to my father's opinion.

He Xiao picked up the encrypted dedicated line phone.

"I'll call Dad."

Dial, wait, and after a few short rings, the call is connected.

He Xiao reported the complete current market situation in detail.

"Dad, the US stock market continues its downward trend. Many institutions that tried to buy at the bottom have already gone bankrupt and suffered margin calls. The situation is just as you predicted. Now, overseas capital is frantically withdrawing back to its home country, selling off Hong Kong and A-share assets at any cost."

Many companies with strong fundamentals have seen their stock prices unfairly punished, while the index continues to hit new lows. There's widespread panic in the market right now, and everyone is still bearish. We'd like to ask you for your advice: should we start investing in the domestic market now?

On the other end of the receiver, He Yuzhu's voice remained calm and steady.

"As for US stocks, they remain unchanged."

"Your timing is correct. Hong Kong stocks and A-shares are currently near historical lows, and the opportunity has arrived."

"Remember my instructions: enter the market in batches. Use discreet offshore channels for all transactions, and proceed slowly and deliberately. Avoid placing large buy orders on the trading screen to attract market attention. Our goal is to gradually accumulate core quality assets in Hong Kong and A-shares, building up our initial holdings."

He Xiao listened attentively, made sure he understood, and solemnly replied, "I understand, Dad. We will plan in strict batches, control the size of each transaction, and maintain strict confidentiality to ensure it does not attract outside attention."

After hanging up the phone, He Xiao turned around and looked at her two younger brothers beside her.

"Dad has made up his mind, we can get started. Remember, build the position in batches, keep a low profile, and avoid large purchases that could reveal our presence."

At a single command, the entire trading system, which had been prepared for some time, officially began to operate.

Inside the trading room, instructions were relayed down smoothly. Following a pre-planned list, the trader broke down orders into smaller, individual transactions, mixing them with the massive sell orders in the market to quietly accumulate shares.

On October 27th, Hong Kong stocks hit a record low for this round of market rally.

Just one day later, on October 28, the A-share market fell to 1664 points, hitting a historic low.

Despair permeated the entire market, with countless ordinary investors and institutions selling at a loss in panic. No one realized that while everyone was scrambling to escape, a fund was quietly absorbing the high-quality shares being frantically dumped.

During the accumulation of the position, there were no earth-shattering large orders; everything was completed quietly.

In early November, after completing this round of bottom-building, the three brothers finally relaxed a little, their nerves having been on edge for many days.

He Chen let out a long breath, recalling the events of the past six months, and felt a deep sense of admiration.

"To be honest, I used to think rigidly that global stock markets rise and fall in sync. If the US stock market crashed, the whole world would crash too. It wasn't until this time that I truly understood. Dad not only saw through the big picture of the US subprime mortgage crisis, but he also clearly calculated the differences in market rhythm between different countries and the opportunities for mispricing caused by the outflow of foreign capital."

He Xin nodded slowly, deeply agreeing.

"So many top economists and fund managers on Wall Street are fixated on when the US stock market will bottom out. Everyone has overlooked the fact that a completely independent time window will emerge on this side of the ocean. If it weren't for Dad's reminder, we would still be hesitating here, missing out on a once-in-a-lifetime opportunity to buy at the bottom."

He Xiao gazed out the window at the bustling yet turbulent nightscape of Hong Kong, her tone calm.

"That's the difference in perspective and vision. Others can only see what's happening in front of them, but Dad can see the outcome years in advance."

Days passed by, and before we knew it, it was November 9th.

China's 4 trillion yuan stimulus package to boost domestic demand has been officially announced.

The major news spread like wildfire throughout the capital markets. This shot in the arm plunged deep into the icy mainland market.

Following the implementation of favorable policies, pent-up market sentiment in the A-share market erupted, triggering a sharp rebound. In the Hong Kong stock market, all leading stocks related to mainland China also rallied in tandem with the broader market.

The shares that the Ho family quietly accumulated at the bottom not long ago have shown a considerable unrealized profit in a short period of time.

While Wall Street across the ocean continues to wail in despair, mired in an endless crisis, the markets in mainland China and Hong Kong, riding the wave of favorable policies, have already begun their own turnaround.