No one expected the market trend on the first trading day of the year to be so disastrous.
Even the regulatory leaders who devised the circuit breaker mechanism didn't expect the market to trigger it so quickly, and they were caught quite unprepared.
Of course, what everyone least expected was...
...the stampede and siphon effect formed by funds fleeing in panic under the circuit breaker mechanism.
"If it weren't for the circuit breaker mechanism, today's market decline probably wouldn't be so disastrous, would it?"
Someone said amidst the explosively discussed topics among investors across the network.
"With panic spreading, whether or not there's a circuit breaker's siphon effect, the trend shouldn't be much different. It really feels like going back to the stock market crash of July and August!"
"Another thousand stocks hitting their lower limit, damn... making history again."
"It's my first time seeing the broader market hit its lower limit, what a rare sight!"
"This is crazy, why such a plunge? Who's crashing the market? Wasn't the market trend before New Year's Day perfectly fine? Why did it suddenly collapse?"
"With not enough funds to take over, the index naturally collapsed."
"The main reason is the lack of capital, combined with too many trapped investors at higher positions, plus profit-taking from the market rebound accumulated over recent months... these factors together led to today's sharp decline."
"Sigh... I was hoping for a good start to the year, but who knew... on the first trading day, we got hit hard."
"Full positions hitting the lower limit, this life is truly unbearable."
"When will the big A-share market truly stand up? Damn it, now let alone 3600 points or 3800 points, whether 3000 points can hold is a question."
"Today's trend is truly devastating; all indices broke down and fell."
"Over 1500 stocks hit their lower limit, it really is a scene straight out of the July and August stock market crash. Damn it... it's too hard to make money in the stock market."
"Today, the entire market saw wealth evaporate by about 6 trillion yuan, with an average loss of over 40,000 yuan per person."
"More than 40,000, all my holdings hit their lower limit."
"Where is the 'national team'? Why didn't the 'national team' act at the critical moment today?"
"A full-scale collapse, all funds in the market are fleeing. Amidst the chaos, sentiment completely collapsed. In such a situation, without sufficient positive news support, even the 'national team' with trillions in funds can't hold on. I only hope... that after the market closes, regulators can release ample positive news."
"It was a completely absurd crash, sigh... I should have stopped losses and reduced positions unconditionally when I saw things going wrong in the morning."
"Today, all market hotspots and core themes were wiped out; the loss effect reached its extreme."
"This trend truly shattered my mentality, and the index completely broke down. I'm afraid it will be difficult to recover and rebound in the short term. Sigh... I'll stop losses unconditionally tomorrow morning."
Countless topics, countless complaints, panic, and questioning voices raged across major stock investment online platforms.
At the same time...
All investment and trading related personnel within fund companies, financial investment institutions, major speculative fund groups, and various institutional companies.
Staring at the frozen market trend, they also took a long time to recover.
Whether it was veteran investors who had weathered years of market turmoil or young traders new to the market, today's market trend was something they had never seen or experienced before.
"Holy crap, this is terrifying."
Li Jinshi exclaimed this in the 'Foshan faction' main speculative fund group.
"More than just terrifying, it's murderous!" Chen Guiyun responded, "Only 26 stocks in the entire market were in the green, over 2000 stocks fell by more than 7%, nearly 1700 individual stocks hit their lower limit, the ChiNext Index and SME Board Index fell by 9%. Almost all stocks in the market lost liquidity, and all hotspots and popular themes in both markets were wiped out.
Whether stocks with excellent fundamentals, strong logic, and strong earnings growth expectations, or pure concept 'small and medium-cap innovation' stocks, almost all of them were locked at the lower limit.
This spectacle... it's even more disastrous than the trends during the previous two stock market crashes. What is this if not murder? Everyone in the market today, without exception... was slaughtered."
"The only sector with a less than 7% decline is the banking sector,"
Liao Guoxiang said,
"This trend is indeed too devastating."
"Sigh... fortunately, my position wasn't very heavy,"
Li Jinshi said,
"Otherwise, I'd be crying without tears."
"I don't understand why it suddenly crashed today,"
Chen Guiyun said.
Liao Guoxiang responded,
"Market trends are often unexpected, but... judging from previous market feedback, it actually started weakening for a long time before the holiday."
"That's true,"
Chen Guiyun said,
"In early December, the broader market trend clearly showed weakness. However, at that time, there was still some localized profit-making effect supporting the market, and everyone still had huge expectations for the Shanghai Composite Index to stabilize above 3600 points, or even return to the 4000-point bull-bear line. So, it didn't attract enough attention, nor did it trigger a panic selling effect in the market."
"With today's trend, I feel like the short-term market is truly completely finished,"
Li Jinshi said.
Liao Guoxiang said,
"Let's see if regulators release any major positive news tonight. Although the market fell terribly today, if there's significant positive news support, there's still an expectation of a rebound tomorrow."
"Will it rebound?"
Chen Guiyun said,
"I think the probability is extremely low."
Li Jinshi said,
"Regardless of whether the index can rebound tomorrow, under this trend, I won't open any new positions. I'll wait and see for a while."
"Looking at it now... the 'Financial Street Fuxing Road' fund is truly smart, damn it,"
Chen Guiyun said,
"Tracing back the market trend, it seems that ever since the 'Financial Street Fuxing Road' fund completely liquidated its 'lithium battery' main theme for profit-taking, the market trend has been off."
"Indeed,"
Li Jinshi nodded slightly, then suddenly realized,
"No wonder Su Yi, the CEO of Huayi Capital, hasn't made any moves to open positions for so many days after completing the fund's fundraising. It seems Su Yi... truly sensed the risk in the market trend."
Liao Guoxiang, seeing them mention the 'Financial Street Fuxing Road' fund, couldn't help but praise,
"In terms of identifying main themes, creating 'monster stocks', and market timing ability, Su Yi truly has unique insights."
"Next, we can observe when Su Yi of 'Financial Street Fuxing Road' enters the market,"
Li Jinshi said,
"I think this could be a good signal for a market turnaround."
"In the industry, whether institutions or speculative funds, many people are watching the movements of this fund,"
Liao Guoxiang said,
"However, using this fund's entry time as a turning point for market conditions is fine. Before that... operating with light positions should be the most appropriate strategy."
Following the intense discussion within the 'Foshan faction' main speculative fund group.
Meanwhile, inside Huayi Capital, where Su Yi worked, especially in the 'Huayi Expedition No. 1' fund product trading department.
All traders, including trading team leader Zeng Anping, looking at the A-shares that had already made it to the top trending searches across the entire network, couldn't help but admire Su Yi tremendously.
Before this...
Everyone originally couldn't understand Su Yi's inaction, his continuous observation of the market without opening even a single position.
At that time, most traders in the team agreed that the index had adjusted to a relatively low level and believed that the risk of a continued sharp decline was small.
However, now everyone was proven wrong.
"Su Yi's judgment on the market's macro trend is truly brilliant!"
Someone in the trading team said with immense admiration.
"More than brilliant, it's a god-like judgment. It's a good thing our fund didn't open positions in advance, otherwise this blow would have definitely knocked everyone out cold."
"It seems the Shanghai Composite Index will have to seek support around 3000 points."
"It's likely heading towards 3000 points, but it should only go down to around 3000 points at most, right? After all, the last time there were two consecutive stock market crashes with continuous lower limits, it also stopped falling at this level. The 3000-point level for the Shanghai Composite Index should be said to have very strong support."
"Let's see the subsequent trend. At this point, market panic has just fully erupted, so it might not be that easy to stop the fall."
"Haha... today, our institution, being in an empty position, must have outperformed 99% of the institutions in the market, right?"
"Be more confident. Our company's fund net value definitely outperformed 99.99% of institutions in the industry today."
While everyone was overjoyed and highly impressed with Su Yi's trading strategy...
At this moment, Su Yi was sitting in his office, but his gaze was not on the A-share market.
Instead, he was staring at the Hong Kong stock market trend, observing the volume and price performance of Jingcheng Holdings, and continuously buying Jingcheng Holdings shares aggressively at the bottom amidst panic.
"Damn it, this is really strange. Before New Year's Day, Jingcheng Holdings suddenly plunged by more than ten percent, even though negative news was lurking but not clearly erupting.
Now, with major negative news for the company breaking out, coupled with the spread of panic due to the 'thousand stocks hitting lower limit' trend in A-shares, it actually opened low and closed high with gradually increasing volume, after an early morning plunge of over 20%. It's truly miraculous."
Amidst Su Yi's aggressive increase in positions, inside Hongyuan Capital in Hong Kong City.
Shi Jindong, the core trader in the secondary market investment and trading department, noticeably furrowed his brows, staring at Jingcheng Holdings' stock price trend, utterly confused.
Hearing Shi Jindong's question, investment manager Zhang Yanjun thought for a moment and said,
"The market is inherently reflexive; negative news materializing can actually become positive news. This logic makes sense. Moreover, with Jingcheng Holdings' stock price falling to such a state at the start of trading, it's also plausible that the company used other funds to increase its holdings and stabilize the stock price. There's no need to be too surprised, it's just that... this morning's crash tricked us out of a lot of chips!"
"It's not just us who were tricked,"
Shi Jindong said,
"The panic in A-shares, combined with the company's own negative news, meant that most investors holding Jingcheng Holdings stock today couldn't hold onto their chips. Otherwise, the stock's trading volume wouldn't have surged to this extent today."
"Indeed,"
Zhang Yanbing nodded slightly,
"The intraday trading volume surged by almost 10 times!"
"I wonder who's buying,"
Shi Jindong said,
"No matter how much selling pressure there is on the market, it's truly like a mud ox entering the sea. This buying fund... truly has a massive war chest."
Based on his observation of Jingcheng Holdings' market trend.
He roughly estimated that the funds accumulating shares in Jingcheng Holdings today bought at least 200 million yuan worth of chips.
In reality...
At this moment, in Su Yi's Hong Kong stock account, after fully covering his short-selling orders from before the holiday.
He already held 219 million yuan worth of Jingcheng Holdings stock chips.
Of course, his ability to accumulate so many chips on the market in one go was also thanks to the major negative news within Jingcheng Holdings Group and the historic crash in the A-share market.
However, 219 million yuan worth of chips was still far from his target.
And his operation on Jingcheng Holdings stock was not over yet; it had just begun.
Next, he would combine market sentiment, use the large quantity of chips he held to further 'shake out' the market, and through violent market fluctuations, induce retail investors to sell, thereby absorbing more chips.
While he continued to accumulate Jingcheng Holdings shares and formulated his subsequent trading plan.
The historic sharp decline of A-shares and the unprecedented triggering of the circuit breaker mechanism had already topped the trending searches across the entire network, breaking through the confines of the financial, investment, and fund circles, and sparking discussion among netizens nationwide.
Even within the regulatory authorities.
Leaders, in order to prevent another liquidity crisis and a continuous stock market crash,
...also held an emergency internal meeting amid the fermenting public opinion across the network, and at around 6 PM, released a series of positive news to the market, thereby appeasing the panic among market investors and calming the escalating public opinion attack, which was met with widespread mockery and condemnation.
With the release of positive news from the regulatory authorities...
...market panic ultimately improved.
Thus, the next day, Tuesday, January 5th.
The broader market in both cities generally opened higher.
After an initial downward pull due to inertia, it swiftly rallied upwards.
Driven by a full-scale surge in major core themes like 'Big Finance', 'Big Infrastructure', and 'Big Consumption', it gradually rebounded to cover yesterday's massive bearish candlestick, repairing market sentiment and the market trend.
On the other side...
Su Yi's operational focus remained on the Hong Kong stock market.
Amidst the brief recovery in market sentiment and trend, he continued to absorb selling orders for Jingcheng Holdings and pulled its stock price upward, also repairing Jingcheng Holdings' crash from yesterday.
Witnessing Jingcheng Holdings' stock price becoming stronger after the major negative news from the group was released.
And gradually recovering its losses.
Inside the group, Qin Renzhao, who had already contacted all major and minor shareholders, finally breathed a sigh of relief, thinking the crisis had passed just like that.
At the same time, major institutions invested in Jingcheng Holdings.
Seeing the trend of Jingcheng Holdings' Hong Kong stock, also believed the crisis was over.
But they didn't expect that after just one day of rebound.
After accumulating 276 million yuan worth of chips, Su Yi quickly and aggressively continued to short sell Jingcheng Holdings' stock, causing its market price to plummet again.
And at this time, Lei Kaishan also openly challenged within the group.
He united with other small and medium shareholders to openly oppose Qin Renzhao's succession to Qin Song's position as group chairman, and proposed convening a shareholders' meeting to reorganize the group's board of directors and re-elect a suitable, new group chairman according to regulations.
Facing the sudden struggle for control within Jingcheng Holdings Group.
The Hong Kong Stock Exchange promptly issued an inquiry letter.
At the same time, the company's listing plan, which had reached the A-share IPO review stage and was at a critical juncture, was also suspended by regulators, causing Jingcheng Holdings' plan to list on A-shares in the near future to be completely shelved.
And upon learning that the company's short-term listing was hopeless.
Numerous investment institutions that had received the company's additional shares also expressed their anger, demanding the company repurchase the shares according to the agreement.
Under these multiple negative blows.
The briefly rebounded Jingcheng Holdings suffered continuous heavy losses in the following trading days, with its stock price plummeting consistently.
At the same time, the A-share market, after a brief two-day rebound.
With everyone realizing that a full recovery was hopeless, that positive news was insufficient to reverse the downward trend, and with capital still scarce, it once again experienced a historic level of sharp decline.
(End of Chapter)