After a brief pause in thought, the entire network erupted with incredibly heated discussions.
Almost instantly, various topics such as 'A-shares hit second circuit breaker', 'thousand-stock limit down reappears in the market', 'A-shares' first-ever market close within half an hour of opening in history' were trending across the entire network, breaking through the industry barriers of the financial world, drawing the attention of all netizens and countless people from all walks of life.
Even within a short period, some people created short videos showing the dynamic changes of A-shares from opening to closing within a single day.
And named it the movie 'Circuit Breaker'.
Thus, with the rapid spread of online information, this multi-trillion-yuan movie 'Circuit Breaker' became popular on major online platforms, resonating with countless investor groups.
"More than 1700 stocks hit their limit down again. When did 'thousand-stock limit down' become the market norm?"
Amidst the heated online discussions, in the main speculative fund group of the 'Qilu Gang', Zhao Zhiyuan said helplessly,
"Damn it... it's really not easy to make some money. My large positions are buried today. It truly feels like two months of hard work have been lost in just a few days. Sigh... looking at this, it's clearly a 'Stock Market Crash 3.0' version of the trend!"
"Without a doubt, this is 'Stock Market Crash 3.0',"
said Zhang Wei from the 'Weihai Rongcheng Chengshan' trading seat in the group.
"Market investment sentiment has completely collapsed, and market liquidity is almost nonexistent. Moreover... the circuit breaker mechanism formulated by the regulators feels problematic; it very easily fuels the market's sell-off momentum."
Liang Jiucheng, a core member of the 'Qilu Gang' from the 'Huahai Securities Jinan Lishan Road' branch, said,
"There's no doubt, this market circuit breaker mechanism is problematic. As long as the market's decline approaches the circuit breaker threshold, it can very easily cause panic selling among in-market funds scrambling for liquidity. In other words... this circuit breaker mechanism is simply a tool to fuel market sell-offs. If this mechanism isn't changed, I feel the market will experience a similar trend to today's again in the future."
"The policy has already been implemented and has been running for so long; will it be revised?"
Zhao Zhiyuan asked, somewhat disbelieving.
"If the market consequently erupts into a sustained liquidity crisis..."
Liang Jiucheng said,
"I feel this circuit breaker mechanism will definitely be revised."
"I have the same feeling,"
Zhang Wei said.
"The key is that under this market situation, even the 'national team' can't prop up the market."
"How could a multi-trillion-yuan sell-off be propped up?"
Zhao Zhiyuan said.
"Let's see what news comes out this afternoon,"
Liang Jiucheng said.
"With the market so brutal and public opinion fermenting so strongly, the regulatory authorities can't possibly remain silent."
"I hope this market circuit breaker mechanism can be abolished,"
Zhao Zhiyuan said.
"This circuit breaker mechanism is truly disgusting. Once the market starts panicking, there's absolutely no room for maneuver. In fact, today's market trend, if not for the obstruction of the circuit breaker mechanism, many stocks could have seen a deep V-shaped rebound after the most panicked emotions were vented."
"This siphon effect induced by the circuit breaker mechanism is indeed disgusting,"
Zhang Wei said.
"The ecological environments of domestic and international markets are clearly different. Some related trading systems and rules really shouldn't be copied indiscriminately. Sigh... today, the average market loss per person is 50,000 yuan; there's truly no buying interest at all."
"If this mechanism isn't changed, I'm afraid the severity of 'Stock Market Crash 3.0' will far exceed the previous two stock market crashes,"
Liang Jiucheng said.
"If the regulators don't release positive news today, the Shanghai Composite Index will directly fall below 3000 points tomorrow, and a more serious 'systemic financial crisis' may be triggered subsequently."
"It won't be that serious, will it?"
Zhao Zhiyuan exclaimed.
Liang Jiucheng responded,
"I'm afraid it will be even more serious than I imagine. Panic will continue to spread. Believe it or not, if there's no positive news today, tomorrow it will open lower and trigger a circuit breaker immediately."
"Holy cow..."
Zhao Zhiyuan was startled by Liang Jiucheng's words and said,
"It seems it was truly foolish not to decisively cut losses at the market open today."
"If it truly is 'Stock Market Crash 3.0', the 3000-point level of the Shanghai Composite Index might not hold this time,"
Zhang Wei said.
Liang Jiucheng responded,
"There's a 90% chance it won't hold. Anyway, since the market trend has already formed like this, and the technical trend has broken across the board, then during this period, we must control our hands, make fewer moves, and even if we do trade, it can only be with light positions. Otherwise, once panic selling starts, you won't even be able to stop losses."
"Market sentiment is poor, and the effect of losing money is extremely severe, so it's definitely better to rest and stay empty-handed,"
Zhang Wei said.
"Let's wait. Wait for the brutal market situation to pass, wait for the index to continuously fall until it finds support and stops making new lows. Sigh... I originally thought there would be a good market opportunity before the Spring Festival, but I didn't expect..."
"Actually, the market trend in early December was already a bit off,"
Liang Jiucheng said.
"Unfortunately, at that time, it didn't receive enough attention."
"So, it must be said that the 'Financial Street Fuxing Road' capital, with such a high premium on its short-term trading ideas, still has its reasons!"
Zhang Wei said.
"Ever since the 'Financial Street Fuxing Road' capital began to massively and continuously reduce positions and take profits on core 'lithium battery' stocks on the Dragon and Tiger List, the market trend has plummeted. From subsequent signs, the 'Financial Street Fuxing Road' capital must have sensed the risk of market decline and the weakening signs of profit-making effects and sentiment trends at that time, right?"
"That's without a doubt,"
Liang Jiucheng said.
"Although everyone in the circle is somewhat envious and jealous of the 'Financial Street Fuxing Road' capital, no one denies that this capital is the smartest and most powerful main fund in the market. Nor does anyone deny the ability of Mr. Su from 'Financial Street Fuxing Road' in trading, speculation, and creating market mainlines."
"It seems we'll have to wait for the 'Financial Street Fuxing Road' capital to reappear on the Dragon and Tiger List before entering the market,"
Zhao Zhiyuan sighed again and said,
"Damn it... I'm unconditionally cutting my positions and stopping losses at tomorrow's open."
Accompanying the continuous discussions among the main speculative funds within the 'Qilu Gang'.
At the same time...
In the 'Modu Ultra-short Gang' main speculative fund group, where Su Yi was.
Xu Qiao, Lao Zhang, Lao Wu, Brother Chen... and others, although equally shocked by today's market trend and finding it unexpected, felt no panic, remorse, or anger internally.
They were clearly like bystanders.
And in fact, they were currently bystanders.
Since January 4th, when the market first triggered a circuit breaker and the index fell below all support levels, given that Su Yi's 'Financial Street Fuxing Road' trading seat was still in a waiting-in-cash state, they also followed suit and stayed in cash.
So they perfectly dodged today's extreme plunge.
"Holy cow, this trend is truly murderous without shedding blood. Luckily, we were in cash."
Xu Qiao felt a lingering fear and couldn't help but say.
"It really is murderous without shedding blood. If it keeps falling like this, margin accounts will probably suffer massive liquidations, and even many major shareholders who pledged their equity might not be able to hold on,"
Lao Zhang said.
"I have to say, Brother Su is truly a beacon for the market. Once he's in cash or light positions, the market never fails to fall."
"One more circuit breaker, and many margin accounts in the market will directly explode," Lao Wu said.
Brother Chen pondered for a moment and responded, "Actually, under the current market situation, the most terrifying thing isn't the margin accounts exploding, but rather the inability to close positions even after they explode, coupled with the market's own circuit breaker mechanism. If this completely collapses, the index might form a continuous trend of limit down without volume."
"That would be a liquidity crisis,"
Lao Zhang said.
"More than just a liquidity crisis,"
Brother Chen said.
"I'm afraid it will directly trigger a 'systemic financial crisis'."
"Next, there must be a market rescue, right?"
Xu Qiao said.
Lao Wu said,
"A market rescue is definitely necessary, but the 'national team's' current holdings in the market are still relatively heavy. Under this situation, it might be difficult to turn the tide, right?"
"Relying solely on the 'national team' injecting real money won't work,"
Brother Chen said.
"It also needs favorable cooperation from the regulatory authorities."
"Just watch,"
Brother Chen said with certainty after a pause.
"There will definitely be important news released today."
And just as Brother Chen predicted...
While public opinion continued to ferment across the network, and market pessimism was so thick it couldn't be dispelled, with all investor groups having fallen to the point where they didn't even dare to look at their accounts.
An emergency meeting within the regulatory authorities was quickly convened after the market close at 10 AM.
At the same time, some industry notices issued by the regulators were also quickly communicated to major asset management institutions.
Then, as expected, at 2 PM.
After research and discussion, the leaders of the China Securities Regulatory Commission decided to suspend the market circuit breaker mechanism, which had only been introduced a few months earlier, and restore the previous market trading system.
And as soon as this news was released.
It meant that the 'circuit breaker mechanism' became the shortest-lived trading system in regulatory history.
And at the moment the regulators decided to suspend the circuit breaker mechanism after research and discussion.
Large state-owned asset management institutions and proprietary trading desks of brokerages were all required not to maliciously reduce positions or short sell through securities lending.
At the same time, opening restrictions on stock index futures were further tightened.
Furthermore, the 'national team' and 'pension funds' also began to issue announcements, stating that they would not reduce any positions and would further increase holdings in high-quality market stocks.
Regarding the most concerning crises of margin accounts and major shareholders' pledged equity.
The regulatory authorities also issued instructions to further lower the forced liquidation line for margin accounts.
In short, with the experience of the previous two stock market crashes.
This time, facing the market's continuous 'thousand-stock limit down' and circuit breaker trends, the regulators' intervention was remarkably decisive.
They not only quickly overturned their previously formulated trading system but also comprehensively curbed all bearish momentum in the market.
However, all these measures and favorable actions by the regulatory authorities.
In the subsequent market trend.
Still failed to reverse the market's decline.
In the subsequent market trading days...
The market, like January 5th and January 6th, only briefly rebounded for two trading days, and then on January 12th, it experienced another plunge, directly breaking through the important 3000-point mark in one swift move, causing the '3000-point defense battle' to completely fail before it even had a chance to mobilize.
And after falling below 3000 points, the Shanghai Composite Index had no support whatsoever.
Like falling into a bottomless abyss, it continued to plummet, bottomless, breaking below 2900 points, 2800 points...
"Damn it, this market is truly crazy, crazy!"
Witnessing more than half a month pass, with the market still not stopping its decline, and the downward trend becoming increasingly fierce, at this time, inside 'Noah Capital' company in Modu.
'Blue Chip Mixed Selection' fund product trading department.
Fund manager Wang Shujie gazed at the fund's net value, which had retracted beyond recognition, and was almost in tears.
The fund product he managed did not reduce its positions immediately at the onset of 'Stock Market Crash 3.0'; instead, it even increased them significantly.
This led to this fund product fully enduring the entire market decline during 'Stock Market Crash 3.0'.
Although the fund product he managed heavily invested in blue-chip stocks, the net asset value retraction caused by such sustained declines still made him cry out that he couldn't bear it.
"Mr. Wang, enduring it isn't the solution!"
Amidst Wang Shujie's complaints, Li Shangfeng, the head of the fund trading group, reminded him again.
Wang Shujie sighed helplessly and said,
"The Shanghai Composite Index is already approaching 2700 points. Reducing positions at this time... isn't that cutting losses at the bottom?"
"In a liquidity crisis, no one knows where the bottom is!"
Li Shangfeng said.
He had reminded Wang Shujie several times before.
Unfortunately, after the Shanghai Composite Index fell below 3000 points and entered the so-called relatively undervalued stage, the other party simply didn't listen and held on until now.
"Sigh..."
Wang Shujie gritted his teeth and sighed again, saying,
"It seems you're right. We shouldn't fight against the market trend, and even less should we bottom fish against the trend and increase positions at the early stage of a plunge. Let's reduce, let's reduce positions first. If we keep holding on like this... this fund product we manage will truly break the mandatory stop-loss line."
Although public offering funds do not have mandatory liquidation lines.
The company's internal mandatory stop-loss lines are clearly stipulated.
He originally thought that after such a severe market plunge, there would be a violent rebound.
Unfortunately... the market's trend completely defied his expectations.
Li Shangfeng, seeing Wang Shujie finally concede, nodded and quickly instructed the traders behind him to reduce positions and stop losses.
Although it was highly possible to reduce at the bottom at this point.
It was also possible for the Shanghai Composite Index to plunge below 2500 points in one go, meaning they would reduce halfway down.
In any case, under the established trading strategy, Li Shangfeng felt that there was nothing wrong with not going against the trend and reducing positions promptly when there were absolutely no signs of the index and market stopping their decline.
And just as he was instructing the traders to massively reduce positions and stop losses.
At this time, inside 'Huayi Capital' company.
Su Yi gazed at the Shanghai Composite Index, which was already approaching 2700 points, and the still extremely brutal sell-off trend across the entire market.
A sharp gleam of excitement, like a hunter spotting prey, appeared in his eyes, feeling that the time for the fund to officially establish positions and enter the market had finally arrived!
(End of chapter)