Chapter 315: Saving the Market
Throughout the history of A-shares, the stock market has always been accompanied by large-scale rescue operations, from the 200 million yuan rescue of the Shenzhen Stock Exchange at the beginning of the opening of the Shanghai and Shenzhen stock markets to the reduction of stamp duty and the suspension of new shares in 2008.
This time, with the 14-day plunge, many companies chose to suspend trading in order to avoid risks. By the close of July 8, the Shanghai Composite Index had fallen to 3501.19 points, and the ChiNext Index had fallen to 2364.76 points.
As of today, 1,429 stocks have been suspended in the two stock exchanges, accounting for more than half of all listed companies. The A-share market has witnessed a historical spectacle of thousands of stocks being suspended.
Whether you are an old stock investor or a new entrant, the performance of A-shares from June 15 to date has refreshed their cognition. It is amazing that stocks can fall so much and trading can be suspended so casually.
A large-scale rescue of the market has become inevitable. In fact, since July 4, a series of rescue policies have been in the process of being intensively prepared.
This includes the government's entry into the market to support the market, ordering securities firms to directly inject funds to rescue the market and suspend IPOs.
Companies such as China Securities Finance Corporation also obtained tens of trillions of yuan in liquidity support from the banking system, becoming the main force in rescuing the market; at the same time, the China Financial Futures Exchange continued to introduce measures to restrict the trading of stock index futures.
The God of Wealth supports state-owned financial enterprises to increase their holdings. At the same time, the State-owned Assets Supervision and Administration Commission also requires central enterprises not to reduce their holdings, and even prohibits analysts from making negative comments. It is no longer possible to issue reports like the one previously issued by Shenwan Hongyuan.
A certain department even sent people to brokerage institutions to severely punish malicious Fengkong actions.
In addition, there are two rescue measures of the CSRC. One is to restrict shareholders and executives of listed companies from reducing their holdings through the secondary market. The other is to require major shareholders and executives who have already reduced their holdings to increase their holdings in order to overcome the difficulties together.
The CIRC also responded to the call for market rescue and encouraged insurance companies to invest in the stock market and to raise their stakes. In mid-July, insurance institutions continued to net buy stocks and stock funds, with the amount reaching 112.2 billion yuan. This also laid the hidden danger for insurance funds to frequently raise their stakes and slide into "barbarians" later.
Everything seems to be destined.
On July 8, after the market closed, Gu Junhao said to the five traders who had returned to their positions, "How much did you buy? Have you completed your positions?"
"According to the boss's instructions, the positions have been almost completed, except for one stock which is still a little short." Xu Jianqing said.
"If it's almost there, just continue buying tomorrow. Build your positions according to the plan, and then you can allocate funds according to the proportion."
"Okay, there's something to do again, I'm happy." Xu Jianqing said with a grin, and when others heard Xu Jianqing say that, they also laughed.
To be honest, when I came to work on the first of this month, there was nothing to do. The boss was not there, and I and others did not have the authority to build positions, so I spent every day wandering around the company with nothing to do, occasionally staring at the market.
Due to the huge social impact caused by the accident of , the government began to rescue the market on July 4. Not only major institutions, but also some retail investors with greater reputations in the stock market and private equity institutions received the notice.
Junshi Capital's currently operable funds, including Junshi No. 2, the company's own funds and Gu Junhao's personal funds, are only around 3.5 billion yuan, but behind this 3.5 billion yuan of funds there are countless retail investors waiting and watching.
Since June 15, the news of Junshi No. 2 liquidation has been widely spread in the market. The subsequent series of stock market crashes also proved Gu Junhao's judgment. This led to Gu Junhao's increasing fame during the stock market crash, which has reached the point where he has become famous.
In the context of a bull market, it is not difficult to make huge profits with strength and luck, but being able to perfectly avoid the stock market crash and keep both yourself and your funds unscathed is an ability that not everyone can possess.
Gu Junhao, who was already gaining fame in the circle, perfectly avoided the stock market crash because of this amazing operation, which also led to a rapid increase in the number of fans for him and Junshi Capital's official account.
Under personal and official accounts, fans come to check in every day and ask when the stock market crash will end, which makes Li Xinyu, who helps Gu Junhao operate the account, laugh and cry.
With a capital of 3.5 billion yuan, Gu Junhao is not qualified to receive official attention. However, his Junshi No. 2 net value curve represents the confidence of a large number of retail investors. As long as Gu Junhao does not rebuild his positions, this group of people will not enter the market.
So Gu Junhao also received a call from the local regulatory authorities, which implicitly suggested that he could buy some stocks and not always keep his funds in a zero position state, at least to make it appear that there are some fluctuations.
Gu Junhao naturally could not refuse such a request. Although he knew that the price would continue to fall, he still had to buy, so Gu Junhao urgently ended his vacation and returned to Beicang on the morning of July 5.
After returning to Beicang, Gu Junhao did not take time to rest, but went directly to the company to start arranging the position building plan for the opening on July 6. At this time, Xu Jianqing and others were already waiting in the trading room.
After receiving the call on the 4th, Gu Junhao had already informed Xu Jianqing and others to come to the company to work overtime on Sunday.
At the weekend, some of the remaining staff at Junshi Capital were shocked when they saw Gu Junhao suddenly appear in the company; before that, Xu Jianqing and four others came to the company to work overtime, and they didn’t think there was anything wrong.
It's a little different when the boss, who is on vacation, suddenly shows up at the company on the weekend.
"Damn, the boss suddenly came back, has the stock market hit bottom?" Everyone was thinking about the purpose of Gu Junhao's return, but no one dared to ask.
Not to mention, Gu Junhao had asked Xu Jianqing to spread the news secretly in the company, and it did have a certain effect. Most of the company's employees who were involved in stock trading avoided this disaster, and the retracement was not large, so they all kept their profits.
Only a very small number of people suffer huge losses or very serious losses; but there is nothing that can be done about it, as many people will continue to move forward even though they know the danger.
The happiest people during the stock market crash must be the customers of Junshi No. 2. Under the backdrop of a bull market, even if they had invested in Gu Junhao's private equity fund, these people would have bought some stocks.
The greed of human nature is incomprehensible. Even after learning that Junshi No. 1 was liquidated and Junshi No. 2 was liquidated, some people would still enter the market during the previous surge or after the sharp drop, wanting to buy at the bottom.
The stock market crash killed everyone, no matter retail investors or institutions, and this group was no exception. Those who invested more were numb from the losses, but fortunately, the returns from Junshi No. 2 are still there.
However, the investors of Junshi No. 1 were not so lucky. Gu Junhao's decision to liquidate the shares ahead of schedule was both a good thing and a bad thing to some extent. Some people took the profits from Junshi No. 1 and re-entered the market with the rising stock market.
Now that they have money, they become arrogant and think that their decision to invest in Junshi No. 1 is the behavior of a stock god. The same applies to buying their own stocks. Some people have even almost lost all the profits they earned from Junshi No. 1.
To be honest, July is not a good time to build a position. Deleveraging cannot be completed in just half a month. As we have entered a technical bear market, the confidence of investors in both cities has been severely hit, but everyone still has certain expectations for a stock market rebound.
Not to mention the circuit breakers that will happen later, there will also be a big drop in August and September. The current level of around 3500 to 3600 points is not at all the lowest point of this round of the market.
If you really want to build up positions on a large scale, you must at least wait until the confidence of this batch of new investors is completely .
However, since he was hinted to enter the market by the local regulatory authorities, Gu Junhao could not have no response. The example of Old Xu was there. Even though this guy has been behaving normally recently, he won't have a few months of happy days left.
There are various rumors through the grapevine, some saying that this time Old Xu made money that he shouldn't have made and cut off a certain team's bailout funds. The specific reason is unknown, but Gu Junhao doesn't dare to do anything rash.
Gu Junhao had his own idea when building a position knowing that the market would continue to fall, which was to buy some stocks that did not fluctuate much in 2015 and the industrial chain of emerging industries that would explode in the future.
Junshi Capital's first proprietary trading account has also been established, with all-round purchases from personal accounts, funds and the company's proprietary trading accounts. Since it cannot be avoided, it must be real and cannot be purchased only with fund accounts.
All your transactions will be visible to the higher-ups, and comprehensive involvement will leave a better impression and make it easier to do things in the future.
In addition to these, in order to prevent the fund from being affected, Gu Junhao also specially selected a very famous monster stock in 2015. The stock that Xu Jianqing mentioned that had not completed the position building was exactly this monster stock.
The historical trajectory remains the same. This stock, whose stock price is similar to that in the previous life, will most likely continue to maintain its trend of being a monster.
As long as he continues to perform well, the specific profit of Junshi No. 2 will not be greatly affected by the decline of other stocks. Gu Junhao has no choice but to do this kind of speculative behavior.
You must enter the market, but you cannot let the clients' interests suffer great losses. If you hold the clients' money, you must be responsible to them, especially when everyone has suffered heavy losses recently.
The customer groups of the two funds are somewhat concentrated. Although Junshi No. 1 VIP customer group has been disbanded, Gu Junhao also knows from Junshi No. 2 customer group that everyone has lost a lot of money recently.
Even Gu Junhao has received many calls from Junshi No. 1 customers, hoping that Junshi No. 2 would end its closed period as soon as possible so that they could re-subscribe to Junshi No. 2 Fund.
As for Junshi No. 2, Gu Junhao has no plan to liquidate it like he did with Junshi No. 1. After the closed period, it will enter the ex-rights process, and then normal subscription and redemption channels will be opened.
In this way, a group of old customers will leave and a group of new customers will come in, just like public funds.
