"Something seems to be wrong. The price has reached the daily limit before we even bought in our funds. Others are rushing to buy."

On October 8, the first day of the domestic futures market, all cotton futures of all categories opened at the daily limit.

In just ten seconds, the market rose by 10%, leaving countless short sellers with no time to react before their positions were liquidated by the backend. There were cries of pain everywhere.

Because domestic cotton futures generally have a 20-fold leverage, a 5% increase means the loss of all principal, and a 10-point increase means that you still owe money to the exchange, which is equivalent to a loss of principal.

It’s not that no one chooses to close their positions at the first opportunity, but there is too much capital entering the market. Many large funds set the upper limit price at the opening and sprint forward, matching the high and low prices, so short sellers have no way to trade at all.

When the upper limit price can be traded normally, any operation will become meaningless.

Many people know that there will be an increase today, but they have never thought that one day futures will be like stocks, with all stocks hitting the daily limit at the first opportunity, leaving no room for struggle.

The Taishan faction's team in charge of the operation had prepared sufficient funds early in the morning, ready to make a big move today, but they encountered this situation and didn't know what to do for a moment.

Yang Yuanqin, who was present in person, was puzzled. "It shouldn't be like this. Even if someone rushed to buy shares, the transaction volume of these categories (the cotton quality is different, and the types of futures contracts are also different) is too high.

It's only a few billion or so. All the executed orders are forcibly liquidated due to insufficient margin. What about Qingyun Group's positions? Why are they not forcibly liquidated?
Go check what's going on."

Soon, news came back that "Qingyun Group has added margin, and it is said that it obtained emergency credit from the Agricultural Development Bank of China."

"Still resisting?"

Jack Ma came last night. We discussed all night and had a great time together. We were very happy at the thought of blowing up Qingyun and taking over Pinxixi smoothly.

He just couldn't stop being excited.

Now that Qingyun had not given up resistance, he became a little impatient and said, "Then report the situation to the higher-ups. Using credit funds to illegally enter futures and other financial markets is a violation of regulations."

"I'm afraid it's not that easy."

Boss Duan of Sitong Group frowned and analyzed: "At such a sensitive time, and with a policy bank lending money, anyone with a discerning eye knows what's going on. I'm afraid it's tacitly approved by the higher-ups."

"I really don't know what the higher-ups are thinking. In today's globalized economy, when will those who keep planning their own little plots be accepted by the mainstream world?"

Some people expressed disdain for this, "No wonder people outside always say that we are playing by ourselves behind closed doors, but we want other people's funds, markets and technology, and always want to occupy a dominant position.

The textile industry is a sunset industry and no one knows how much it loses every year. Those who grow cotton don't make any money, those who work in textile factories don't make any money, and those who run factories still don't make any money.

In my opinion, it is better to sell out as soon as possible, introduce advanced Western management experience and systems, carry out market industry segmentation, and each do their own job to carry out supporting production, so that everyone can make money. "

"Who says it's not true? People outside just don't understand our efforts. Every time I face groundless accusations, I'm too lazy to explain."

Yang Yuanqin said casually, and then looked at the head of the investment team, "Looking at this situation, I'm afraid I can't buy it. Fortunately, I had enough bottom positions before, and I made a lot of money today.

You can contact the financial institution and see if you can still buy the call option."

Lu Zhiqiang shook his head and stopped him, saying, "There's no chance. During the National Day holiday, I have arranged for people to buy everything that can be bought.

With today's daily limit, I'm afraid there won't be any fools buying in."

As soon as he finished speaking, the phone rang. After answering it for a while, his expression changed rapidly along with the voice on the other end of the phone.

Finally, he shouted, "What are you waiting for? Take whatever you want. Buy all the short positions."

Yes, I said, eat as much as you can.

Remember, after receiving enough orders from counterparties, do not release them, and hand them all over to the securities company's proprietary trading department. Yes, hurry up."

After hanging up the phone, he said with a smile: "I don't know where this idiot came from, but he actually took out 5000 million to open an account in my securities company, and specifically asked to buy cotton short options."

"That's good. I picked you to make a fortune. It's rare to find such a fool. You have to treat me today."

Yang Yuanqin was very envious. With today's daily limit, the cotton price was only one step away from breaking through the 3 mark. The higher-ups had used every trick they could think of, even raising the long margin to 20%.

But it still cannot resist the combined force of the market, and the stock price will hit the daily limit.

Want to rescue cotton futures?
Dreaming.

Now it is not something that can be done just by having money, but it depends on whether there is enough spot in the market, otherwise anyone entering the market will be doomed.

Lu Zhiqiang also understood this principle, so when faced with the money that was delivered to his doorstep, he had no reason not to accept it. It would be a waste not to make money!
Thinking of this, he waved his hand and said, "I will take care of everything today. I will make sure you all have a comfortable and pleasant day."

"We are relaxed and happy now, but someone is probably about to jump off the building and commit suicide, right?"

With his biggest enemy about to collapse, Jack Ma was in a very good mood and couldn’t help but publicly tease, “How about giving him a call to say hello?”

“Can you get through? I remember that guy seemed to have blocked all of us.”

“Give it a try. I really want to hear how he feels now. If he can kneel down and beg for mercy, maybe the position of Wangcai in my family can be left to him.

After all, he was once the head of a multi-billion dollar business empire. It was quite impressive for him to be stationed at the company's door to receive customers."

"Oh~ Now that you mention that, I'm interested.

Hurry up, it just so happens that Qiandu and Qingyun have been cooperating for a long time. Mr. Li, you must be able to get through. Why don’t you ask them quickly? Don’t let them lose money and not even receive the final payment for the advertising contract. "

Under the teasing of his friends, Li Yanhong simply said that it was a bad timing, not that he had any special friendship with Li Zehua.

It's just that he is just that kind of person. He usually doesn't show off, he only cares about making money, and he never does anything to offend others.

In the previous few times when Taishan Sect launched an attack on Qingyun, he did not participate in it based on his own interests. Now that Qingyun is on the verge of collapse, the piece of cake given to Qiandu is not big enough.

Without the key share, why should he take on the final counterattack of Qingyun Group before its death?

These guys are all cunning and they will set traps for people if you are not careful.

Seeing that Li Yanhong was determined not to do it, the others gave up. Some curious people tried to call the office of the chairman of Qingyun Group, but the answer they got was that the chairman was busy.

"You didn't answer the phone, thinking that you could be alright if you just hide and pretend to be dead? We still haven't received the 50 tons of cotton that we are owed."

With the idea of ​​revenge when there is revenge, Yang Yuanqin arranged for people to go to the exchange to report Qingyun's illegal use of funds.

Regardless of whether it was tacitly approved by the higher-ups, it violated the rules anyway…

“Are the teams ready? Are the funds in place?”

In the Qingyun headquarters in the Magic City, all the core management gathered together, and also participated in the meeting, several people from the Five Military Governor's Office, finance, development and reform, national reserves, foreign trade, and the Magic City government.

Everyone is prohibited from contacting the outside world before today's closing. The only way to contact the outside world is a red confidential phone, which is guarded by someone specially assigned by the Magic City Security Department.

Such strict precautions are taken, on the one hand, to ensure absolute confidentiality, and on the other hand, to create an illusion to the outside world.

The Qingyun Group could no longer hold on, all of its executives disappeared, and the company’s business came to a halt with no one in charge.

All for today!
All preparations have been put in place, and the group has even selected nearly five thousand reliable employees through special channels based on their personal identities.

The company opened accounts in many stock exchanges, not many in number, with 500 million yuan of funds allocated to each account, and the cumulative amount of funds mobilized was nearly 250 billion yuan.

Through the above-mentioned relationships, we obtained nearly 10,000 absolutely safe personal securities accounts, and transferred a total of tens of billions of funds, all of which have now been arranged.

Nothing else, because personal accounts do not require delivery.

Cooperating with it are the State Administration of Reserves, the institutional accounts controlled by the proprietary departments of the five major banks, and the hidden personal accounts in their possession.

As well as the institutional account prepared by Qingyun Group for 350 million tons of cotton futures, the total investment was nearly 500 billion yuan, most of which was funds raised from foreign guarantees and domestic loans.

On the surface, official institutions openly intervene in long positions, which means they give up resistance and rely on hedging risks to recover losses.

Behind the scenes, tens of billions of dollars are being gathered through internal secret channels.

Overseas, Dongda has also prepared a considerable amount of foreign exchange funds, ready to invest in short selling in the Chicago trading market at any time!

With enough cotton stocks to last the market for half a year, Dongda is fearless. Even the four major grain traders will have to surrender this time...

At this time, everyone was waiting for orders from the chairman of the group. As soon as he gave the order, orderly counting sounds were heard at the scene.

"The North China Group has made arrangements."

"The Northeast Group is fine."

"The East China Group is in place."

"Northwest, Southwest, South China, and Central China are ready..." "Each account will be fully leveraged at double the leverage. First, place a 2% short order and lure their funds into the market little by little. Today's goal is to lock in billion of their funds."

As Li Zehua finished his words, at the same time, Qingyun employees who were selected from all over the country began to show off their skills.

Some people open orders one by one, while others are more generous and open five or ten lots right away.

In short, the long-dormant buy orders on the cotton futures price limit finally began to flow, and this news was quickly fed back to competitors...

"I have completed 4550 transactions, totaling 5600 lots."

"It's the same here, 3200 times and 7500 hands."

"I have a little more, 7100 times and 1.55 hands."

Faced with the continuous reports, the people from the Taishan Sect who had not yet left were very confused. Yang Yuanqin immediately asked, "What's going on?"

Although buying means making money, there must be an explanation for the inexplicable transaction orders.

"Hurry up and check out Qingyun Group's official website!!!"

I don’t know who was the first to notice the problem, but after a shout, everyone crowded in front of the computer.

"Hiss~Is this guy crazy?"

Jack Ma seemed to be in disbelief, and the next second he said in ecstasy: "Are you just throwing away your life?!"

"Maybe. Either way is a dead end. If you don't follow us, we will raise the price to the sky.

It's nothing more than a last-ditch struggle."

Lu Zhiqiang sneered, "The desperate dog will jump over the wall, but since they are sending money to spend, there is no reason to give it to others. Take it all and put all the funds on it. Let's see how long they can struggle."

At this time, an article suddenly appeared on Qingyun’s official website. It was said to be an announcement on the group’s operating conditions, but it was more like a battle declaration.

The meaning is very clear. Qingyun Group is acting responsibly towards its colleagues in the textile industry and millions of cotton growers.

I decided to take the lead and do my part to curb the rapid rise in cotton prices and prevent the occurrence of systemic risks in the industry, even if it means total losses in the end.

We recounted again the conspiracies and intrigues of the four major grain merchants, Jiangsu and Zhejiang capital, and the comprador groups.

We call on all people of insight to unite and join forces to fight against those capitals at home and abroad that intend to disrupt the economy and the environment...

"Bah, who among cotton growers doesn't hope that cotton prices will rise?
He still has the nerve to represent cotton farmers? Why doesn't he say he represents the entire mainland?"

Someone couldn't bear to watch it any longer, and said with a "Puh" sound: "But if he dares to die, we dare to bury him!

Buy everything, no matter how much is sold today, take it all."

It doesn’t matter if I get scolded, as long as I make real money.

The Taishan School, Jiangsu and Zhejiang Capital, and various hot money were worrying about not being able to continue opening positions (no counterparties after the daily limit), when Qingyun suddenly appeared.

Like a lone soldier charging forward, he would not hesitate to move forward. Even if he dies, he would die on the road to charge.

It looks quite tragic, but in fact, in everyone's eyes, he is just a big fool, well, a very rich big fool.

"Hurry up and grab the order. Don't let others buy it. This guy wants to use up all the funds and bring the price down to avoid having to buy it on the market at a higher price ten days later."

Lu Zhiqiang was the first to react and shouted, "This bastard would rather die than let us get what we want. Fuck, place a big order quickly.

Call the exchange and request special permissions and priority access to ensure that no one else can snatch your short-selling order away."

"Yes, if Qingyun Group loses all its money in the futures market, and then there are a bunch of creditors, won't they try to snatch control of Qingyun's major subsidiaries from us?
Hurry up and grab it, don’t let others take our money away.”

The others also came to their senses. Qingyun saw that defeat was inevitable and decided to go all out. Haha.

The situation is obvious. Qingyun had opened an institutional account to short sell before, and it had to make deliveries. If it just lay flat and let itself be slaughtered, the price might rise to 50,000 per ton in a while.

By then, the State Administration of Reserves is bound to breach the contract. Is there any need to think about whether to save the market or Qingyun?

If Qingyun breaks the contract, it is bound to be beaten by all parties, and the only option left is bankruptcy.

Fulfillment?

50 tons, there must be so much goods in the market. The State Administration of Grain and Oils is unable to take care of itself, and the four major grain traders are hoarding the goods and are not selling them at all.

Dongda is capable of solving the problem, but there is still some time before the new cotton comes on the market, and no one dares to bet that the situation will improve in the future.

Therefore, the liquidation of Qingyun is inevitable, which in turn will push the cotton price to the sky. By then, 80,000 or 100,000 per ton will not be a dream...

From then on, the outcome of the life-and-death duel was completely determined!

Qingyun mobilized tens of thousands of accounts, and people kept short selling. Although the amount of a single sale was not large, there were many accounts and sufficient funds.

Yutai Capital, Jiangsu and Zhejiang Capital, various hot money, and Taishan Sect are also not pushovers, they will not give in either!
However, in the process of rushing to grab (give) money, the Taishan School did not notice that those institutions that had directly rushed to push the stock price to the daily limit in the early trading session seemed to have disappeared collectively.

The buy order that was originally placed at the price limit is gone.

The buy orders held are also decreasing rapidly.

The exchanges that were notified in advance simply gave up and just collected the money. They made a lot of money from the transaction fees in just one trading day, the 8th.

Of course, they did not do nothing. At least they were considerate enough to open special permissions for big investors.

Dear, here we have customized rights worth 300 million per year. Not only can you enjoy priority transaction rights, but you can also directly place large orders of tens of thousands of lots like in the stock market.

The fight is so fierce, won’t there be ten or eight packaged accounts?

As long as you have real money, it can be arranged in minutes.

According to subsequent statistics, on the 500th alone, both bulls and bears managed to create a transaction volume of more than billion near the daily limit.

To be honest, this number is not that much, because the futures market is T0, and you can buy and sell at will on the same day. If the market is usually good, everyone can participate ten times and achieve a transaction volume of hundreds of billions.

The key point is that this was hit on the daily limit. Neither the buyer nor the seller will continue to trade after the transaction is completed, and the funds are completely deposited.

The size of positions held by both parties is growing.

At this time, based on the calculation of 3 per ton, the price of holding 5 tons of cotton is 15 RMB. Qingyun is the short seller with double leverage, and the cost of holding the position is 7.5 RMB per person.

For other long buyers, according to the latest rules of the exchange, the leverage is 5 times and the cost of holding a position is 3 yuan per person. As both sides got angry, they invested without regard for the consequences.

By the close of the market, the short sellers had accumulated short positions of more than 9 million tons, including the 50 tons transferred from September, and the actual new funds entering the market exceeded 200 billion yuan.

The total holding size after leverage is more than 300 billion, of which more than 70% are individual users who do not need to participate in physical delivery.

The long side also holds more than 200 million tons, with a 5x leverage, which actually increases the funds by to billion yuan...

“…In view of the recent large fluctuations in the cotton futures market, in order to prevent systemic risks, it has been decided that from the closing date of the 8th, the margin for all buyers and sellers will be strictly enforced at 50%.

All parties involved in the transaction must make up the difference before 11: a.m. on the th, otherwise the exchange has the right to decide to take over the account and force liquidation..."

Just when everyone was shocked by the notice suddenly issued by the CSRC and the exchange.

In the evening, U.S. cotton futures surged!

As of the close of trading in the early morning of the 9th, U.S. cotton prices soared by 2.3% across the board, a large number of market shorts died, and countless people jumped off buildings.

In response to this, the Taishan faction responded by taking out their respective assets and immediately mortgaging them to the Minsheng-related financial institutions in order to get the cash as quickly as possible.

Even Jack Ma, who never participated in the venture, couldn't help but invested 1 billion yuan to test the waters.

They directly make up the account margin shortfall on weekends through the exchange's internal channels.

But what they don't know is that all of this has been secretly recorded by the relevant departments...

Jack Ma, in a good mood, sang and danced, and shouted wildly with the microphone: "Want to use the power of the upper class to take sides?
It’s too late. The 11th is Monday, and cotton prices will hit the daily limit every day for the next five days.

I said, even gods can’t stop it! "

(End of this chapter)