Sunday was no different; things were far from peaceful outside.
Several new articles began to circulate.
Some claim that Taichu No. 2 will be reducing its holdings intensively on Monday.
Some people have exaggerated the 3.5 billion yuan unrealized loss into a "10 billion yuan financial hole".
There are also reports that Lu Zhilan has been suspended from all privileges and that Taichu No. 2 is about to change its management team.
Although none of them came from official channels.
But it's enough to keep investors holding the relevant stocks in a state of panic.
The opposing side is gathering strength for a final round of selling on Monday.
Chen Mo did not clarify the matter publicly.
Making any statement now will expose one's preparations in advance.
The gates of the beginning were always closed.
Only food delivery vehicles and lawyers attending the meeting came and went.
From the outside, the company appears to be overwhelmed by several days of investigation and losses.
Unbeknownst to anyone, the numbers on the battle plan in the meeting room continued to rise.
Sunday night at 10:40 pm.
The last Middle East fund completed its margin confirmation.
The finance staff recalculated the entire amount.
Domestic direct funds amounted to 32.9 billion yuan.
RMB 24.7 billion in domestic accounts that have been granted temporary policy authorization and are independently held by their respective institutions.
The amount of overseas cash, credit lines, and funds invested independently is equivalent to RMB 39.7 billion.
The total amount is 97.3 billion yuan.
These include bank credit lines, independent accounts, overseas funds that can only be used for A50 and Hong Kong stocks, and standby quotas that can only be activated after certain conditions are met.
They cannot be mixed into one account, much less accept the same aggressive buy order.
On this battle plan, every penny has its own place.
When will we enter?
What to buy?
How much drawdown can it withstand?
Under what circumstances should we stop?
Everything is written down clearly.
Zhao Qiang stood in front of the wall, his gaze fixed on it for a long time.
Two days ago, the Taichu II strategy channel was suspended.
A leaker has emerged within the company.
Xu Xiang was taken away, Feng Kai fell to his death, and the media and short sellers pressed in simultaneously.
Almost everyone believed that Chen Mo would choose to withdraw and leave.
But two days later, domestic industrial capital, European old money, Wall Street banks, Middle Eastern funds, and funds and credit within the Starry Sky Group were all put on the same chessboard.
Zhao Qiang was once again impressed by Chen Mo's boldness in making such a grand gesture.
If he hadn't witnessed it with his own eyes, no one would have imagined that this young man could mobilize nearly 100 billion yuan in trading capacity on his own within two days.
"Mr. Chen."
Zhao Qiang's voice was somewhat hoarse.
"All confirmed."
"97.3 billion yuan."
Chen Mo looked up at the time on the wall.
Sunday, 10:43 PM.
There are 10 hours and 47 minutes left until the A-share market opens.
Chen Mo withdrew his gaze and slowly pulled down the red cloth covering the top of the battle plan.
"Everyone should rest for four hours."
"Reassemble at 3 a.m."
"Wait for my instructions after the market opens tomorrow."
.........
Monday.
Three o'clock in the morning.
All departments were reassembled in the beginning.
The short rest did not eliminate the fatigue on everyone's faces.
Researchers returned to their respective positions with their laptops, traders checked each account one by one, and the risk control team conducted a final confirmation of all authorizations signed over the weekend.
No one was laughing or joking in the meeting room.
The domestic market has not yet opened, but the first battle has already begun.
Over the past two days, dozens of articles about Primordial II have been circulating online.
Initially, the questioning was only about Xu Xiang and Taichu No. 4.
Later, it gradually became known that Taichu No. 2 suffered huge losses and that policy funds were being used to transfer benefits. Some even claimed that several independent accounts had filed for liquidation with the trustee.
A forged share reduction chart was posted on several financial forums in the early hours of the morning.
The stocks listed above happen to overlap significantly with the holdings of Taichu No. 2 that were targeted.
"Seventeen sources of transmission have been identified."
The person in charge of public opinion stood beside the conference table.
"The earliest accounts were distributed across different platforms, with most having been registered within the last three months."
"They quickly deleted their accounts after sending the message, and the remaining content continued to spread through financial self-media and investment groups."
"The most common opinion in the market right now is that Taichu No. 2 will reduce its holdings after the market opens today."
Chen Mo finished reading the report.
"Do not delete, and do not publicly refute the rumors."
"Continue to record the transmission path."
"Yes."
Chen Mo looked up at the battle plan on the wall.
"All accounts are reconfirming transaction boundaries."
The heads of transactions, risk control, and legal affairs confirmed in turn.
4:15 a.m.
Grant Bank's first margin payment has been received.
5:40.
Merrill Lynch and Goldman Sachs have completed the credit line switch.
6:20.
Three European family offices have moved into the London trading room.
After 7:00 AM, eleven participating institutions in China went online one after another.
Each institution has its own list of transactions.
The lists are not entirely the same.
Some accounts can only buy the constituent stocks of the CSI 300 Index.
Some prefer banking, insurance, and high-end manufacturing.
Two other industrial investors opted only for the electronics and new energy sectors, which they were already familiar with.
The 97.3 billion yuan operational capability was spread across dozens of accounts, four time zones, and three markets.
Chen Mo needs to position each account in the most suitable position to complete its part.
It was exactly 9:00 AM.
The Singapore A50 futures index was the first to begin trading.
Within a minute of the market opening, thousands of sell orders were dumped.
The index opened 1.7% lower.
Subsequently, a larger short order penetrated the buy orders below.
The decline quickly widened to 2.5%.
Inquiries came from trading teams in New York, London, and Hong Kong simultaneously.
Should we begin establishing long positions?
Chen Mo only replied with two words.
wait.
9:07.
The A50 index fell by 3.1%.
Several securities firms have begun to lower their opening expectations for the Chinese market.
At 9:10, financial media outlets rushed to reprint the list of Taichu shares that had been circulating overnight.
9:15.
A-shares entered the opening auction.
Of the 47 stocks that Taichu No. 2 holds, 31 opened more than 5% lower.
Nine stocks were pressured by sell orders and were near their daily limit down.
No sector was spared, including banking, securities, infrastructure, high-end manufacturing, and technology.
The Shanghai Composite Index is expected to open 2.8% lower.
Zhao Qiang stared at the screen, his palms already sweating.
"The other party is forcing the opening of the second trading session to trigger risk control measures."
Taichu II consists of multiple independent accounts.
Different accounts have their own risk rules.
The overall drawdown reached 8%, and some accounts entered a warning phase.
If the volatility reaches 9.5%, the three institutional accounts must reduce their high-volatility positions.
Once the reduction exceeds 10%, the scope of position reduction will expand rapidly.
By the close of trading last Friday, Taichu No. 2 had already experienced a cumulative pullback of 7.2%.
Based on the current bidding results, the overall drawdown after the opening will exceed 9%.
If it drops another half percentage point, the first batch of passive sell orders will enter the market.
The hundreds of billions of yuan in holdings held by Taichu No. 2 could, in turn, become a weapon for the other side to suppress the market.
"Mr. Chen."
Zhao Qiang looked at Chen Mo again.
"Are we still waiting?"
"wait."
Chen Mo sat in the center of the trading room, his eyes never leaving the market data screen.
The price during the bidding phase does not represent the actual transaction.
The other party is still probing.
It's impossible that the news of him raising funds on his own didn't get out at all.
The other party will definitely want to know how much capital will be available to take over the investment.
Making a move now would only alert the enemy.
9:25.
The call auction has ended.
The Shanghai Composite Index opened 3.06% lower.
Eighteen key stocks are nearing their daily limit down.
The real-time valuation of Taichu II has fallen by 9.13%.
The first risk warning is automatically issued by the custodian institution.
9:30.
Continuous bidding has begun.
Sell orders instantly flooded the trading screen.
Nine stocks that were originally hovering near their daily limit down were directly crushed.
Several other heavyweight stocks continued to see sell orders in the tens of millions of yuan range.
The Shanghai Composite Index continued to decline after opening.
-3.3%
-3.6%
-4%
Panic spread rapidly in the market.
When ordinary investors saw that Taichu's heavily invested stocks all hit their daily limit down, they became even more convinced that the reduction in holdings list was real.
Margin accounts began to actively reduce their positions.
The quantitative strategy automatically sells based on volatility and trend signals.
Some mutual funds that were originally planning to wait and see also chose to sell some of their highly liquid stocks first.
The other party only needs to ignite the first fire.
The market itself will fuel them.
9:37.
The overall pullback of Taichu-2 reached 9.41%.
There are only 0.09 percentage points left before the first batch of mandatory reduction lines are reached.
The risk control managers of the three independent accounts were simultaneously connected to the conference call.
"If we cannot get back above the risk line before 10 o'clock, we must reduce our positions."
"This is an account-based system; there are no temporary exemptions."
Zhao Qiang's voice tightened with anxiety.
"Mr. Chen, the other party's core sell order may not have been released yet."
"Let's wait a bit longer, number two is really going to start selling soon."
Chen Mo glanced at the A50.
The decline was 4.27%.
Within forty minutes of the market opening, the number of new short positions had already approached the total for the entire previous Friday.
The other side finally put up their real bet.
"The first group from overseas."
Chen Mo pressed the call button.
"start."
The Hong Kong trading room was the first to receive the instruction.
Immediately afterwards, the trading teams in London and New York acted simultaneously.
A series of A50 buy orders appeared on the order book below.
Initially, they only accepted short orders placed voluntarily, without rushing to push up prices.
The index continued to decline.
-4.4%
-4.5%
Then it stopped.
The short sellers dumped another 5,000 contracts.
The buying pressure below has not disappeared.
Ten thousand hands.
20,000 hands.
Every sell order was absorbed by real funds.
The quotas provided by Grant, Goldman Sachs, and Merrill Lynch began to be converted into increasingly large long positions.
9:42.
The A50 bounced upwards for the first time.
The decline narrowed from 4.51% to 4.18%.
"The first-tier signal within the territory."
Chen Mo issued a second command.
The Starry Sky Group account was the first to place an order.
The target of the purchase was not the nine stocks that were locked at their daily limit down.
Instead, it refers to banks, insurance companies, securities firms, and the CSI 300 ETF.
These stocks have the best liquidity and the most direct impact on the index.
The total purchase amount of 2.7 billion yuan was broken down into different prices and time intervals and continued to enter the market.
Three minutes later, the Shanghai Composite Index stopped falling.
Several bank stocks were the first to rebound from their lowest points.
Large, continuous transactions occurred below the CSI 300 ETF.
The market has not yet reversed.
But for the first time, the most violent descent encountered real resistance.
9:46.
Chen Mo issued a second strategy recommendation.
Each of the eleven separate accounts made its own decision.
Eight companies participated.
The three companies continue to observe and wait.
More than 4 billion yuan of funds were invested in the banking, infrastructure, liquor, high-end manufacturing and electronics sectors according to their respective investment scopes.
Taichu No. 3 has also triggered the first batch of valuation buy conditions.
Two hundred and sixty million yuan was used to build positions in batches.
At this moment, buying was no longer limited to a few heavyweight stocks.
9:48.
A high-end manufacturing stock that was being pushed down to its daily limit saw its sell orders decrease rapidly.
Four hundred million yuan.
Two hundred and seventy million.
130 million.
A dozen seconds later, the last sell order was completely absorbed.
The stock price rebounded from its daily limit down.
The second one.
The third one.
The previously neatly arranged green limit-down lines on the screen began to show gaps.
Countless eyes in the market simultaneously noticed the change.
"Someone is accepting votes for Taichu!"
"The stock has hit its daily limit down!"
"The banks are pulling too!"
Financial forums, trading groups, and brokerage branches instantly became abuzz with activity.
The speculative funds that were repeatedly fleeced in the past two days are more sensitive than anyone else.
They didn't know where the buying was coming from.
However, it is clear that the person who dared to absorb billions of yuan in sell orders when Taichu No. 2 was about to hit the reduction line must not have prepared only this amount of funds.
Some short-term accounts have begun to tentatively follow suit.
The quantitative strategy detected increased trading volume and price reversal, and gradually shut down short signals.
Several mutual funds that were originally planning to sell also suspended their trading orders.
The fuel that the market itself is adding is beginning to change direction.
9:51.
The overall pullback of Taichu 2 narrowed from 9.41% to 9.26%.
There are only nine minutes left until 10 o'clock.
Chen Mo did not stop.
"The second set of targets is now open for bidding."
This time, the target is directly the eighteen core holdings of Taichu II that have been the focus of the attack.
All buy orders were actually executed at the limit-down price and several levels above it.
Do not seal the board.
No order scanning.
We'll take as many orders as we can sell.
The other party wants to use the future selling pressure from Taichu No. 2 to drive down liquidity.
Chen Mo then laid out a sufficiently thick receiving area below.
9:55.
The A50 index narrowed its decline to -3%.
The Shanghai Composite Index fell back to -2.6%.
Five more stocks that had hit their daily limit down have resumed trading.
Taichu 2 retreated to 8.87%.
10 o'clock sharp.
The forced liquidation process for the three separate accounts was not initiated.
The risk threshold was held.
A barely suppressed cheer erupted in the trading room.
Zhao Qiang clenched his fist and slammed it heavily on the table.
"We held on!"
Chen Mo didn't have much of a smile on his face.
"This is just the beginning."
The opponent has been preparing for so long, they won't just back down because one risk line has been defended.
really.
10:03.
A50 saw another surge in short positions.
The stocks that had just broken out of their limit-down state were pushed back down by new selling pressure.
The funds that had been hidden behind the scenes began to officially enter the market.
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