Chapter 347 Don’t run, fellow villager!

Being confused sometimes may not be a bad thing. Tang Man understood that the essence of this round of stock market crash was market liquidity, and he scoffed at the news of the central bank's double cut.

The vast majority of retail investors who are clueless do not understand and only listen to the media's overwhelming praise for the simultaneous interest rate and reserve requirement ratio cuts, which are rare in history. They naively believe that huge good news is coming, which to some extent alleviates the panic in the market in disguise.

Although the effect is limited and cannot change the sharp drop, it is enough to make fellow villagers stop running for their lives and cover the few smart institutional investors who leave first...

So as reflected in the market, after two days of high-intensity bullish market opinion bombardment over the weekend, on Monday, June 6, the trading day, well-prepared and smart people began to show off their skills in various places.

The market turned positive in the call auction and the stock price rose rapidly after the opening to recover the lost ground.

In the early morning, the vegetable market is deserted and the park is empty. There is no one around, whether it is the auntie who usually talks excitedly and waves the Dragon Slaying Sword over a few cents of vegetable price, or the uncle who holds the Tai Chi sword in his hand and is energetic and scolds the young people for not giving up their seat on the way to morning exercise.

At this moment, everyone gathered at the stock exchange, raised their arms and sang the national anthem together, stared at the rising market without blinking, and invested all their retirement savings of fifty or one hundred thousand into the stock market, while also jokingly mocking the fools who were afraid to buy at the bottom.

I am fearful when others are greedy, and I am greedy when others are fearful - after buying for half a year and experiencing the bull market, everyone can become a stock god.

They kept watching him like this until 11 o'clock noon, and then they beheaded him and hung his head in the city.

The smart people left first, and the market turned around and fell downward at the speed of seconds. Countless funds for covering positions were swept away by the collapsed market, and corpses and limbs were scattered all over the ground.

The stock gods are still staring without blinking, but their eyes are bloodshot.

"Add more equity pledge margin."

Jingyue City, Wogu Agricultural Machinery Headquarters, He Yu rubbed his dry eyes and said in a deep voice.

The chairman, sitting in a large office chair, looked at the stock price that had hit the limit down and asked, "What is the probability that our application for suspension will be approved?"

"I don't know. Apart from the fact that we are in the window period for announcing the semi-annual report, there has never been a case in the history of A-shares where a large number of people applied for suspension of trading due to a stock market crash."

He Yu tilted his head and looked out the window: "There are thousands of stocks with large proportions of equity pledged on the market that are on the verge of collapse. From a regulatory perspective, should all of them be suspended? This is no less than the banker directly cutting off the power and locking the door when he loses money. It will only cause a greater disaster."

“Also, if we apply for a trading suspension today and the authorities intervene to rescue the market tomorrow, what about the losses from the falling stock price before that?” He finally asked with a clear conscience.

The chairman frowned slightly: "You go and get busy first."

Yunshan Group finally provided emergency cash flow support to Wogu Agricultural Machinery, which enabled it to add margin and prevented creditors from forcibly liquidating shares that fell below the pledge line.

So now there are two choices. Either continue to resist the market decline with the help of the group, and wait for the official rescue, half-year financial report growth and other good news to restore the stock price.

Either apply for a trading suspension, the stock will stop trading and no longer fall, and the risk of equity pledge will be resolved.

The chairman is a loyal supporter of Mr. Xie. He would rather bear the losses caused by this round of decline than believe that the official rescue will help the stock price climb out of the bottomless pit and rise back to a high level.

"It's better to give it a try than to lose an arm and survive." He Yu said to himself as he left the chairman's office.

The financial stability maintenance meeting ended late last Friday night. First, the deputy general manager of the Municipal Investment Corporation questioned them, and then the team leader had a private conversation. In the end, the only thing they said was to ask Yunshan Group to pay for the disaster relief.

In this way, there is a reasonable explanation for the general perfunctory attitude of the group's finance department and the evasion of responsibility by the Xiyou Taihe capital: now that Yunshan's subsidiaries are barely struggling to survive, where would they get the money to save all living beings?

Therefore, He Yu firmly believed that Mr. Xie was watching silently. The situation had not yet reached a life-and-death moment, and the highlight was yet to come. He would rather make mistakes than be creditable without any mistakes.

"Please suspend trading. I'm going to be liquidated! How can you suspend trading? Do you think you can suspend trading if I jump off the roof of your company? I'm really dying. My daughter just went abroad to study and her living expenses have been cut off this month. My old mother is lying in the hospital ward and needs medical expenses. My ex-wife is suing me for money. I beg you!"

"How is your company's business performance? When will you announce the semi-annual report? Do you have a plan to stabilize the stock price? Buy back or increase holdings? Major shareholders should at least do one of the following: Can you issue a positive statement? No one cares about the quality of the pesticides you developed! The market wants positive news, sentiment, and liquidity. We want to liquidate!"

"The stock price has hit the limit down again, right? Pay attention to compliance risks, be rigorous in issuing market announcements, and prevent shareholders from having conflicts offline. Stay calm, the higher authorities will soon release favorable news to save the market!"

Retail investors, institutional buyers, stability maintenance teams...

The office was messy and noisy. Several subordinates who used to be dressed in formal and exquisite clothes were tired of dealing with the constant ringing of the phone. Retail investors were howling on the other end of the computer, and the young intern girl was crying silently on this end of the phone.

There was no grievance or indignation, but a deep sense of powerlessness engulfed everyone.

Retail investors are like three-year-old children who watch helplessly as the stock price plummets and their life savings are wiped out, not knowing why and being unable to do anything.

They are the elite professionals in society. They know everything but can do nothing. They have to sit back and watch the elderly, the weak, women and children go to their doom and fall in the brutal market of unilateral slaughter.

"Mr. He, there's nothing we can do."

The little girl broke down and cried. On the other end of the phone, another retail investor was crying and cursing, using all the dirty words he knew. She held the microphone and covered her mouth tightly.

"I'll take it, you take a rest first." He Yu forced a smile on his stiff face.

Suddenly, a hand holding a phone reached out to him. The old employee gritted his teeth and said, "There is a temporary suspension of trading. Twelve stocks have been suspended in two hours. They are all listed companies in first-tier cities." "Old He, the companies in our province are in such a miserable state. We need a suspension of trading even more. What are you waiting for!"

The familiar vice president of the municipal investment company on the other end of the phone shouted at him. He Yu walked to the computer in two steps and randomly checked the announcement of the temporary suspension of a stock.

The chairman was detained for seven days for drunk driving. There are risks in the handover of the company's daily management rights, and the company needs to be suspended for adjustments. The resumption time is to be determined.

He Yu laughed for no reason, and his rush to be the first exposed his ugly face.

…………

[You didn’t buy the dip this morning, did you? What secondary market investments are you still holding? Sell all your RMB, bonds, and stocks. Don’t keep anything! Will it affect venture capital business? I have news that small brokerages in the market are going to go bankrupt in batches. ]

Tang Man replied to a WeChat message from a Grapefruit LP who was asking about the situation. He took a breath and looked at the manager of the quantitative trading fund team who was reporting to him: "Go on."

"Someone from the Private Equity Securities Investment Fund Professional Committee came to me and said that they would take the lead in organizing the top private equity fund managers to collectively issue a public statement of a joint initiative to support the stock market and encourage investors to enter the market to buy at the bottom and go long." Zheng Zhe had a strange expression on his face.

"Ha, what did you say?"

Don't run away, fellow villager. Tang Man couldn't help laughing. The more he tried to hold back, the more he wanted to laugh. "It's a way to boost market sentiment. Who's willing to step forward?"

"Wang Yawei from Hua Xia Fund, Dan Bin from Oriental Harbor Investment, and almost all the well-known managers in the market are participating." Zheng Zhe frowned involuntarily.

Tang Man restrained her smile and asked curiously, "Xu Xiang is not participating? The size of their fund is about 20 billion, but they are the number one in private equity."

"He... not only refused, he also shorted it."

Zheng Zhe adjusted his glasses and said, "A few days ago, a middleman who was reselling information came to me and wanted to pay a high price to buy the leverage allocation data of Xiyou Securities Investment in the past six months. Now the market has fallen sharply, long positions are tragic, but short positions belong to the New Year."

"Snakes and demons, the ignorant are fearless." Tang Man felt a chill on his back from the shock.

The equity pledge leverage crisis of major shareholders of listed companies is mainly caused by the pledge ratio breaking through the stock price. For ordinary retail investors and professional investment institutions that use leveraged financing, the crisis comes from the leverage ratio.

If short-selling institutions can clearly compile the leverage data commonly used by market investors, it means that by making a data model based on this data, they can accurately calculate the point at which the short-selling market will break through the stock price and the funds using 10x leverage will be liquidated.

Then came the 5x leveraged funds and 3x leveraged funds, which eventually crushed the 1x leveraged funds in the on-site margin trading, leaving no one alive in the entire market.

It's like the male protagonist in the Japanese AV who can see through things and stop time. He walks into a school full of beautiful young girls. He doesn't need to work himself up to get a sore back or leg cramps. Just one finger can make a great difference and a light poke will make you feel so good.

"We will never join in malicious short selling!" Tang Man came back to his senses and emphasized seriously.

Zheng Zhe nodded with emotion: "I know, I'm very satisfied if I can escape the top and hold the currency to wait and see, and if I have to do it, it will be to buy the bottom later."

"Boss Zheng, I want to convey Boss Xie's instructions. Please inform all employees in your department."

Tang Man's worried tone turned cold, and he sat upright and said slowly: "Boss Xie asked that all departments of Grapefruit Capital pay close attention to market trends. If the country needs it, we will be obliged to step in to rescue the market at any time."

"This is the social responsibility we shoulder. It has nothing to do with making money by bottom fishing. We must always bear in mind our professional ethics and industry mission!" she emphasized again.

Zheng Zhe did not dare to neglect it: "Received, all colleagues in the quantitative trading team will resolutely implement it."

"There will be an internal formal email notification and copy sent later." Tang Man added with satisfaction.

Zheng Zhe then asked, "Then should we join the joint statement? From what I heard from the committee, they hope Mr. Xie will come forward. After all, Mr. Xie has a great reputation."

"Mr. Xie is currently mainly engaged in venture capital. Xu Xiang doesn't even show up in the stock market, so it's not appropriate for him to do so." Tang Man rejected it decisively.

Vice Dean Liu from the Institute of Economics of Jiaotong University has been entangled in the issue since mid-month until now, just to get President Xie to speak out, reminding the regulatory authorities of market risks and calming and encouraging market sentiment.

Jingyue's hometown wants money, and Shanghai wants fame. They are all debt collectors. However, the stock market is now in a state of scrambling to calculate personal gains. Spending a penny or doing anything to save the market would be a waste of feelings.

Just wait, the fall is not bad enough. When you are completely desperate, everyone will be honest.

Of course, it would be best not to fall and just pretend that nothing happened. President Xie has so many opportunities to contribute to the country, and he really doesn't need this opportunity. Tang Man twisted a strand of hair in distress.

Zheng Zhe said goodbye tactfully with mixed feelings in his heart. The genius leader of the venture capital market was so high-spirited that he actually asked us to bring our own food if necessary. On the other hand, the leaders of his own industry...

I am afraid that he has been completely assimilated by capital. He has superb investment instincts but is like a numb puppet pursuing the thrill of extreme profits. He does not have the value system that an industry leader should have.

If you don't stop, the next step forward will be into the abyss.

(End of this chapter)