Chapter 348 The enemy is at Honnoji Temple

Beijing, late at night.

Yu Nian pursed her rouge lips and walked into the brightly lit headquarters of China Merchants Financial Holdings. Beneath her dignified and elegant appearance, her tiredness was hard to conceal.

She had just returned from a meeting at the group headquarters, and now it was her turn to preside over the meeting and control the subordinates in the company who had their own thoughts.

Today's high opening and sudden drop have finally made the relevant regulatory authorities realize the seriousness of the problem. The stock market cannot be allowed to continue falling, and rescuing the market is imminent.

At two o'clock in the afternoon, the China Securities Finance Corporation, which is known to the public as the "big brother of the national stock market team," took the lead in buying 100 billion blue-chip ETFs in the closing period in an attempt to go long on the market index and stabilize market sentiment.

In the evening, while Yu Nian was attending a meeting at the group headquarters, the human resources and social security departments and the finance departments jointly issued a draft for soliciting opinions on the entry of pension funds into the city. Insurance funds, the absolute main player in the financial market, have arrived.

On the way back to the company after the meeting, the head of Ping An Insurance Group's asset management department accepted an interview with the media and said that today's net subscription of tens of billions of yuan of public funds was made. The main reason was that the bull market has not yet ended and we are still winning!

Just as she was sitting in her car in the parking lot to catch her breath, the stock market regulator issued another round of official documents to calm the market.

Good news comes one after another, and it seems that everyone is united in the rescue operation and the situation is very good. However, in fact, only those involved can feel the shocking situation. Even those who are far away from the disaster relief center are at a loss and ignorant.

The Securities Investment Fund is a direct line of defense of the China Securities Regulatory Commission. It rashly rushed into the market with 100 billion yuan of funds and died heroically. The human resources and social security departments and the finance department have their own way of controlling insurance funds. They said they would put 1.2 trillion yuan of funds into the market, but it is just talk for now.

Ping An Group is a giant if it is singled out. It is both a state-owned enterprise and a financial sector, and is on the same line as China Merchants Group. Taking out billions of dollars will not only not cause any harm to itself, but will also be a drop in the bucket for the market.

In short, from Yu Nian's position and standpoint, what she saw were the Securities Regulatory Commission, the Finance Department, the State-owned Assets Reform Department, and other departments that were not subordinate to each other. They were like a swarm of bees that instinctively sensed danger and spontaneously rushed around.

Every bee has a sharp stinger, but it is still unclear who is willing to and has the power to do so.

"The situation is serious and the problem is huge. We must take the overall situation into consideration and carefully analyze and judge the market situation."

Yu Nian told her subordinates verbatim the speech by the group chairman summarizing the spirit of the meeting, even though she knew very well that this was exactly the moment.

Most of the heads sitting on the left and right sides were thinking the same thing as she did when she heard this sentence.

——The boss is worthy of being a boss. He understands the overall situation and is mature and prudent and does not let his comrades take risks. Enjoy having such a boss.

"Mr. Yu, the stock market lacks liquidity and the risk may spread to the international market. Should we come up with a specific countermeasure in advance?"

Yu Nian was always defeated in front of Xie Jingxing, but in fact, she was already a leader among the top second generation, reaching a height that countless people could not reach.

China Merchants Financial Holdings has assets worth tens of billions, covering multiple markets such as FOF mother funds, equity investment, and securities investment, including overseas shipping and international commodity futures businesses of affiliated groups.

After the meeting, the head of commodity futures business walked into her office and reported on the work progress alone.

The stock market liquidity crisis is spilling over. Once it spreads to the banking and monetary sectors, all domestic investment assets in the international financial market will be within the hunting range of international short sellers.

There is no need to elaborate on how bloody the operations of professional short sellers who are active in the international financial market are. These barbarians have no regard for the overall situation.

The person in charge of futures business thought that it would be better for us to clear out the positions held in the international market for related domestic futures products before they shorted them, and we could also flexibly respond by buying some short orders to hedge.

Although this objectively increases the risk of short selling, our original intention is to draw out cash flow to be on standby and to return to the domestic market at any time if things go wrong.

It’s not short selling in any way!

The person in charge of futures almost said this, but met the calm gaze of the young female leader and forced himself to hold it back. He leaned forward and lowered his head further, waiting for a response.

Yu Nian looked at him silently without saying a word, and the old senior, who was nearly 50 years old, was so exhausted that his forehead was sweating and his neck was sore. Finally, he said goodbye and left in embarrassment.

I shorted myself before you did...

Yu Nian shook his head suddenly. For a moment he couldn't tell whether his international counterparts were too powerful or his subordinates were too alert and professional.

…………

After a sleepless night, until the sun rose in the east, Yu Nian took out a set of sportswear from the office closet, changed into it, spread out the yoga mat and stretched his body.

After meditating for a moment and washing up briefly, he asked his secretary to grind a large cup of black coffee, and sat down at his desk to quietly welcome the big drop of the new day.

The main board of the stock market opened with a decline, and the intraday decline in the morning was as high as 4%. The many positive factors released last night were easily ignored, the disaster became more and more arrogant, and it seemed that an invisible evil ghost was floating in the market, eating people without leaving any bones.

During the midday break, a total of thirteen leading public and private equity leaders, led by Wang Yawei, jointly issued a statement by the Securities Commission.

Everyone has a share of responsibility in the stock market crash. We promise not to be bearish, short-selling, or short-selling. Come back, my proudest retail investors. The opportunity to buy the bottom of the market and invest in value is right in front of you. The village is giving out gold bars!
At the same time, the leading brokerage firm Juntai Securities reduced the margin requirement for financing and forced a large number of defaulting customers to continue their lives. In reality, this is undoubtedly a violation of regulations, but it is a good thing at the moment.

"It's about to fall below 4000 points." Yu Nian whispered to himself. Integer point thresholds in the stock market often represent the market sentiment defense line. Once it falls below, it will be the nuclear button.

The secretary who had been with her for many years quietly replaced the third cup of coffee with warm water: "Boss, you should take a nap to relax. You have to go to the finance department for a meeting this afternoon."

"Is there any action from the Securities Investment Fund today?" Yu Nian asked with a frown.

"The market will open in the afternoon. The securities funds, securities firms, private equity and public funds, if we talk about rescuing the market, it is definitely the responsibility of the China Securities Regulatory Commission. No matter how the meeting is held and the plan is made, they will definitely be the main one.

The secretary reported in tacit agreement, then turned to persuade, "You haven't slept for two days, take a rest first."

"The rescue plan from the China Securities Regulatory Commission should be out soon."

Yu Nian clenched his hands, and the screen of the mobile phone that was still in his palm flickered on and off.

In the afternoon, she went to the Ministry of Finance for a meeting. The Securities Investment Fund once again pulled up blue-chip stocks to protect the market index. Combined with the statements of private and public fund bosses and the psychological defense line of 4000 points, a large amount of funds were incited to rush into the market.

Unaware retail investors and professional institutions that were betting big on the bottom were there together, until the stock market miraculously soared into the green at the close.

The market index fluctuated as much as 10% during trading, but eventually closed up 5%, setting a record for the largest single-day increase in six years.

“Will it still be open?”

"I think it's better to open it and wait for the CSRC to take further action."

"That makes sense. Let's wait for the CSRC."

Such conversations were circulated and repeated in many tense related meetings. Yu Nian went home that night and fell into a deep sleep. The next day, he continued to rush around to attend the rescue meetings organized by various departments in Beijing.

The stock market continued yesterday's rebound performance, maintaining a narrow range of fluctuations and rising steadily at the opening. The haze gradually dissipated and everything was looking up.

Representatives from all parties at the meeting remained firm and resolute, waiting for the CSRC to issue a warning.

"It's over. The market plummeted in the last trading session, falling 5% in two hours. A large number of leading brokerage institutions such as Juntai are selling blue-chip stocks, and the Securities Investment Fund is equivalent to taking over for them!"

The secretary took advantage of the opportunity to walk into the meeting room with a kettle in her hand, and leaned close to Yu Nian's ear to report the latest situation in a hoarse voice. She looked coldly at the mature and steady representatives beside her.

If the sharp drop at the opening on Monday this week made everyone feel the seriousness of the problem, then after yesterday's rebound, today's sharp drop on Wednesday was a feeling of some chill.

The entire market has deteriorated to the point where it completely ignores the official rescue efforts. It is bound to fall and the 4000 points mark will definitely be broken.

The China Securities Regulatory Commission was the first to be affected, and it hastily issued new regulations that evening, throwing out the previous deleveraging decision, relaxing market leverage restrictions, lowering transaction fees, and trying every possible means to increase liquidity.

…………

"This is a war, an economic war launched against our country. I have called on all the cadres and employees of my group to buy the stocks of listed companies under my group, prepare billions of funds to invest in the market, and fight to the end with the ill-intentioned short-selling forces, and resolutely win this A-share defense war!"

"You just said that the A-share market crash may be caused by malicious short selling by people with ulterior motives. There are similar views in society now. What do you think about this?"

"This is beyond doubt. The stock market started to plummet on June 6, the day the Hong Kong Island political reform plan was shelved. On June 18, the signing ceremony of the Asian Infrastructure Investment Bank Agreement was held in my country, and the short-selling forces continued to dump the market. These amazing coincidences at these time points are obviously not accidental, which shows the malicious intentions of the malicious short-selling forces!"

"Faced with the sudden plunge, did AVIC realize it beforehand, or was it mentally prepared?"

"The market value of AVIC stocks rose from more than 2014 billion yuan on December 12, 31 to a peak of 4600 billion yuan in early June 2015, more than doubling. Faced with the rapid rise in stock prices, the group attached great importance to it. On the one hand, it held a meeting to discuss appropriate reduction of stock holdings within the scope of compliance, and on the other hand, it increased vigilance. Today, it seems that the judgment was correct."

The chairman crossed his legs and talked at length. Halfway through his speech, he suddenly remembered something and reminded: "When you publish the report later, please consider the wording. Make sure to highlight that we are reducing our holdings to remind investors, which is different from the irresponsible major shareholders in the market who cash out."

Reporters from the group's newspapers nodded like chicks pecking at rice, constantly recording the spirit of the interview in their notebooks.

Yu Nian stood in the corner with his arms folded, watching with interest. Today is Saturday. According to the latest rescue plan, state-owned listed companies must not only save each other, but also pull up prices to cooperate with the Securities Regulatory Commission to defend the overall market index.

The listed companies under China Merchants Group and AVIC Group have cross-holdings, and the share of China Merchants Capital that was allocated to rescue the market directly corresponds to AVIC.

Therefore, she hurriedly took the initiative to visit him to discuss the details. As a result, the chairman who was being interviewed in front of her talked about the foresight of the nearly trillion-dollar market value, but his secretary gave her a rescue plan to invest 3 million yuan to increase holdings of listed company stocks under the group.

Oh, nearly one trillion yuan in market value and 3 million yuan in rescue funds.

It turns out that the culprit of the market crash, the enemy who maliciously shorted the market, was outside. A faint smile appeared on Yu Nian's lips.

(End of this chapter)