Chapter 137: Quantification Destroyed
Quantitative funds are controlled by programs and can be said to be algorithmic tools in the financial industry. However, they are not popular now, and many people have not suffered from the beatings of quantitative funds.
In a few years, when quantitative funds are rampant in the market, everyone will understand.
Moreover, quantitative funds have great authority, and the capital that can be used for quantification is not ordinary capital.
It is very difficult for ordinary people to borrow securities, and it is almost impossible to borrow securities in large amounts.
But for quantitative funds, these are not problems.
They can use all the rules to make money.
Of course, quantitative funds also have disadvantages.
They have no way to manipulate the market and can only wait passively.
I will not take the initiative to follow any market trends. Once I find through data analysis that it is difficult for me to make money in the market, I will not take any action.
These days, quantitative funds are not well-known, mainly because they make too few moves.
There are almost no market conditions that meet their program standards.
Li Yuan watched the quantitative funds silently feeding the enemy in Tianchuan Shares and observed a second of silence for that enemy.
You are so brave! The turnover has exceeded 1 billion, and you are still buying?
Can the quantitative funds digest all the short selling?
In the financial market, having more chips does not mean they are useful, and having fewer chips does not mean you cannot control the market.
There is no single formula that is guaranteed to make money.
Now that he has withdrawn, he has a clearer view of the situation.
It must be that the enemy has too many chips, forcing them to pull the market.
Li Yuan didn’t know this data before, but quantitative funds knew it.
So quantitative funds have entered the market and will definitely take a piece of the meat.
Compared with the hundreds of millions of dollars earned by quantitative funds, the cost of the enemy's pull-up will be greater.
Quantitative funds can throw out another 3 billion, but they can’t take it.
If they still accept it after realizing it is quantitative funds, Li Yuan admires them as real men.
If Li Yuan didn't realize that it was quantitative funding, then he would have died without loss!
In fact, humans and quantitative funds are not at the same starting line. Quantitative funds have greater authority. This is why in the past few years some people have let quantitative funds take the blame, because they have no reason to lose by taking this blame.
Although quantitative funds are not the direct cause of the lack of a bull market in A-shares, the fact that quantitative funds are frantically bleeding them also accounts for a large part of the reason.
They are not as fast as machines in terms of reaction time, and their authority is reduced. It would be strange if they can make money.
However, there are also examples of quantitative funds being fleeced, which is a very extreme operation.
Since his funds no longer needed to be occupied by Tianchuan Shares, Li Yuan freed up 300 million yuan and started investing in other things.
For your own physical and mental health, stay away from quantification.
…
When the turnover reached 1.2 billion, Shen Tianfu realized that quantitative funds had entered the market.
But it was too late. They had consumed nearly 1 billion in funds, and the other 200 million was raised by others.
But there is no difference.
After they spent 500 million yuan, they had already stepped into the abyss. If they had discovered it before that, there would still be a chance to save themselves.
Shen Tianfu was unexpectedly calm today. He was no longer furious or hysterical.
He quietly left the trading room and returned to his office.
It had only been half an hour since the market opened, but he had already given up struggling.
Reviewing the entire process, he seemed to have done nothing wrong, but the result was not only completely different from what he had expected, but they had so many positions in their hands, but they never had the initiative at all.
He rarely gets into situations where he is completely confused and gets killed, but in the case of Tianchuan shares, ever since he discovered that he had made a wrong judgment, he has been completely confused and can't figure out what exactly happened.
Perhaps before, he always had a chance to turn the situation around.
However, after receiving 1 billion quantitative chips today, he knew that the chances of turning the situation around were completely zero.
When he was doomed to fail, he calmed down.
He thought a lot. From a boy from a mountain village, from the first college student in the village in the 1990s, from a poor boy with patched clothes, he has come to where he is today step by step.
He also benefited from the market trend in 2006. Although he lost a lot afterwards, it also established his position in Jiangzhou private equity.
He also benefited from the bull market in the past two years, which gave him higher ambitions in the future.
Although the acquisition of Tianqi Shares was risky, he felt that he had done nothing wrong from the beginning to the end.
He is confident that he can operate Tianqi shares to a market value of 20 to 30 billion yuan, making it the most important operation in his life.
Because of his limited network of contacts, he was never able to accumulate funds.
Liu Shangyuan started private equity several years later than him, but the scale of his business is twice as large as his.
It is not like a public offering, which has public fundraising channels.
He hasn't had any new funds come in for a long time.
He needs to do something big to attract the attention of funds. Otherwise, unless he has incredible strength and can earn more than 20 billion with a capital of more than 10 billion, breaking 20 billion will be a goal he will never be able to achieve in this lifetime.
In the office, he smoked more than ten cigarettes in a row.
After calming down, he knew he was done.
It's completely over.
There is no money to carry out the subsequent operation of Tianqi Shares, and billions of dollars have been wasted without any visible results in the short term.
This time, the loss on Tianchuan shares will be more than ten billion or even twenty billion.
He had absolutely no way to fill such a huge hole.
He took out his cell phone and called Shen Anna.
"Nana, help me get Linlin's 10 million. I'll give you an account and you can transfer the money directly into it when the time comes."
After making the call, he rubbed his face.
Nothing makes sense anymore!
The returns that Shen Anna can bring to him are very limited at the moment, and there is no way to help him fill such a big hole.
So... I can only give up...
Before, ten million was not much for him.
But now there is more, at least it can be exchanged for more than one million US dollars.
The funds he had secretly transferred over the years only added up to five or six million US dollars. The foreign exchange controls were too strict, and he didn't dare to gamble everything on it before.
With a net worth of over a billion, he might not even be able to take away one tenth of it.
Almost equivalent to zero.
He began to take the initiative to contact some people and ask them to help exchange some US dollars.
He also knew that he couldn't make too much noise, otherwise his financiers would realize it and wouldn't give him a chance to escape.
After he made all the arrangements, he even went to the trading room.
The account was in a terrible state. Not only was nearly 2 billion in funds locked, but more than 4 billion was spent during this period. The remaining several billion in principal also suffered a loss of more than 10 billion during this period.
In just half a month, the entire Tianfu Capital fell to a point where there was no hope of recovery.
Of course, no one else is much better than him.
Lianying Technology hit the daily limit again today, which means that Liu Shangyuan’s losses have officially exceeded 2 billion.
I won’t say how long he can hold on. If the stock price hits the daily limit again tomorrow, Friday, Liu Shangyuan will go completely crazy.
The current situation may not be resolved even next week.
The other private equity firms are not large in scale, basically ranging from 5 billion to 10 billion, and their losses this time are also around 1 billion.
There is even public fundraising involved.
At this moment, he realized the benefits of public offering. If he lost money, the worst that could happen was that he would be fired, so he still had a high degree of freedom.
Unlike those who do private equity, they have already been controlled by their financial backers.
When the market is good, you can earn more, maybe two or three hundred million a year.
But if you want to get off? It depends on whether others agree.
Although a certain degree of loss is allowed when the market is not good, it should be less than the loss of others, and you must find ways to earn it back later.
Once you start doing private equity, you are no longer a free man.
The more capable you are, the more drastic measures your financial backers will take.
Because those financial backers will not let you leave and will try their best to get some leverage over you.
No?
They will arrange it!
They will use whatever leverage is most threatening.
I won't let you run away one day.
He also has some leverage in the hands of his financiers, but it's not that those financiers want to tie him up, but he took it out on his own initiative for funding.
After all, only when their handles fall into the hands of those people will they feel at ease to put their funds here for them to manage.
There is not much time left for him.
That evening, there was a closed-door meeting.
There is no longer the previous reserve, no longer the previous caution.
Everyone started hysterically shifting the blame and cursing.
"Liu Shangyuan, you were the one who made us work with you on Qingtian Capital. Now you have to give me an explanation!"
"Shen Tianfu, were you the one causing the trouble in the beginning? Do you know how much money we have lost now? How much funds have we used? Now a large amount of funds have been locked up, and we have lost hundreds of millions in cash. How can I explain this to my investors?"
"If there is no result today, I will fight you to death!"
If everyone could still restrain themselves yesterday and still had a sense of luck in their hearts, then today, after being manipulated by quantitative funds, everyone's mentality has exploded.
Quantitative investment has reached tens of billions or even more, and Tianchuan shares will not have a good ending for a long time to come.
Quantitative short selling is more terrifying than artificial short selling, and one can’t even think of resisting.
How can humans compare with machine programs?
Those small private equity firms are on the verge of collapse after losing 500 to 600 million yuan.
At this time, basically every company had suffered losses of several hundred million, plus more than one billion in funds were locked up.
One third of the entire private equity fund was gone just like that.
He had a bunch of junk chips in his hand.
Liu Shangyuan's face was gloomy and he was speechless.
Shen Tianfu said, "Everyone calm down first. In terms of losses, Liu Shangyuan and I have lost more than everyone here. Besides, isn't it just quantitative entry? What do we have to be afraid of? At this moment, the share price of Tianchuan shares is already at a historical low. Either the quantitative investors make 200 to 300 million and leave on their own, or we waste time with the quantitative funds. When they repay the short selling, that will be our chance! The short selling of tens or hundreds of billions is also a force to support us."
Shen Tianfu picked up the good ones and said.
Indeed, sooner or later, quantitative funds will have to buy stocks from the market to repay short selling, which will inevitably push up stock prices.
It’s exactly the same situation Liu Shangyuan is facing now.
As long as they have enough funds, the quantitative side may have to lose money and cut losses.
Doesn't Liu Shangyuan have any chips now? He is increasing the margin all the time, more than 200 million a day.
But to achieve this, a prerequisite is required.
That is to take all the chips of Tianchuan Shares and all the chips sold by quantitative funds, so that quantitative funds will not be able to buy chips from the market.
By then, it is possible that the stock price will rise for 20 or 30 consecutive days.
The question is, would quantitative funds make such a mistake?
They will monitor the movement of all chips, and when they notice that the liquid chips in the market are lower than their own margin lending quota, they will take action.
“You said it’s nice, will quantitative funds give you such an opportunity?”
Someone must have realized this.
Shen Tianfu said slowly, "Even if the quantitative funds react quickly, what can we do? We already have so many chips in our hands. At most, they will cut off another 200 million or 300 million. We will slowly make the market and fill the 200 million or 300 million hole. Tianchuan shares are such a highly active stock, and there will always be funds involved. We are the biggest dealer. After the quantitative funds leave the market, how the stock will rise depends on our mood."
“What if the quantitative funds continue to attack tomorrow?”
"Just let them smash it!"
"If you want to die, don't drag us into this!"
…
In the evening, Shen Anna returned home.
There aren't many courses in the senior year anyway.
"Dad, Linlin said that the 10 million will not arrive until next Monday."
"What? Oh...it's okay, let's do it next Monday."
Shen Tianfu's face looked very ugly at first, but soon returned to normal, looking calm and composed.
Ana Shen asked, “Dad, is there something wrong?”
"No, I'm afraid that Li Yuan will become desperate. He's almost at the end of his rope. If he asks Linlin to return the money, it will be a huge loss for us."
Shen Anna felt something was wrong.
Because the performance of the Qingtian Mixed Small and Medium Cap Fund has been very strong in recent days.
Although today's net worth has not yet come out, their official website has released a net worth estimate, and today's net worth estimate exceeds four points.
The funds are increasing, and the growth rate is more than four points every day. Does this mean that we are on the verge of a dead end?
However, she didn't know the details.
"Dad, if we take this 10 million, Linlin will never be able to hold her head up in front of Li Yuan. If we are not short of money, I think..."
Shen Tianfu's face changed. "When did you start to have this idea? You still want to leave 10 million for Li Yuan as a capital for him to turn things around?"
"No, no, I have nothing to do with Li Yuan, it's just that Linlin..."
Shen Anna hurried to explain.
All her actions were for profit. Since her father said that Li Yuan was about to go bankrupt, how could she possibly rush to give money to Li Yuan?
It’s just that the money is more important to Shu Yanlin, and it was Shu Yanlin who asked Li Yuan for it, which is equivalent to owing Li Yuan.
If she successfully became Li Yuan's girlfriend, the psychological pressure would not be so great.
However, Li Yuan and Wen Yuxian have been very close recently, and are even close to an official announcement.
When she asked Shu Yanlin for money today, Shu Yanlin was in a very low mood and was absent-minded for a long time.
Although I finally agreed.
Even when she was scolded so harshly by her father in person, she didn't see Shu Yanlin so distraught.
She has feelings for this cousin.
Shen Tianfu said: "Then don't worry about it. Once we defeat Li Yuan, as long as Li Yuan comes to beg me, I will naturally give him money!"
