Chapter 317: Violent Rebound, Thousands of Stocks Hit the Daily Limit
The frequent big moves are a severe deterrent to the forces involved in short selling.
If you continue to short at this time, it is not just going against the market, but it is uncertain whether you can save your wealth.
On July 9, the Shanghai Composite Index opened low at 3432.45 points, and the ChiNext Index opened at 2338.11 points.
Although the index still opened significantly lower, judging from the major heavyweight stocks, the decline has not widened much, and the early opening prices remained stable.
Among a series of holdings, only Home De Lisboa shares opened at the limit price today, with the share price at 9.88 yuan.
This price has returned to the low of January 20, 2015.
The index opened low and most individual stocks performed steadily. In addition to the reasons of financing, there was clearly an element of intimidation for retail investors.
No one should dare to short sell on a large scale today.
"It should be stable today. Most stocks have stabilized. If there is a rapid drop, you can add positions and do T. However, do not do T on a large scale for several large-cap stocks. The selling cannot be more than the buying."
Then Gu Junhao said to Wu Peng: "Teli shares will increase its buying power and strive to complete the position building within today."
"Okay, no problem." Wu Peng said with a smile.
After three trading days of building positions, although limited by trading volume, most of the positions have been bought.
However, this stock is still trapped, and most of Junshi No. 2's holdings remain trapped.
At 9:30, official trading began. The two markets opened low and fluctuated downward. Individual stocks also fell sharply, especially small and medium-sized start-up stocks.
The heavyweight stocks performed steadily, and sectors such as banks and liquor were surprisingly strong.
As for securities companies, we have already entered a bear market. There is no need to continue observing them. All rebounds are selling points.
Since Mr. Gu said that he would increase the efforts to build positions today, Wu Peng has nothing to hold back.
As soon as the market opened, Wu Peng placed two buy orders for 2,000 lots and did not make any further attempts.
After seeing the continuous buy orders of more than one thousand lots on the trading board, Wu Peng did not hesitate to place several buy orders of more than one thousand lots again.
At 9:38, with the entry of large orders, Home Depot shares opened the limit down.
The stock price was pulled up to 9.99 yuan, but then it was hit to the limit down again.
At 9:40, Home Depot once again hit the limit down, and the Shanghai Composite Index fell below 3,400 points, a sharp drop of 3.29% on the day. The ChiNext Index fell sharply year-on-year.
"It feels like the price limit of Teli shares will be lifted today. The trading volume has increased a lot this morning. Brother Peng can be faster."
Gu Junhao was keeping an eye on Home De Lisboa Holdings at this time. Although the stock price hit the lower limit again, it was much more active than the previous two days.
"Okay." Since the boss wanted to change his strategy, Wu Peng stepped up his efforts again.
At 9:45, the Shanghai Composite Index reported its intraday low of 3373.54 points, a drop of nearly 4%, and the market began to move abnormally.
Major weighted stocks began to rise one after another, and GEM stocks with relatively high weights such as Dongfang Fortune and Tonghuashun also rebounded quickly.
"It's almost time. A certain team has started working." Gu Junhao said with a smile.
With such a big move last night, more than 1,400 stocks in the two markets have been suspended. At this time, it does not require too much volume to push up the market.
As for the rest, many stocks that Gu Junhao knew would perform well in the future were not bought at this moment, and the reason was nothing more than that they were suspended.
There are also some others that are not listed. With large-scale suspension of trading, there are actually not many options available in the market.
"Control the rhythm and focus on buying as much as possible. It doesn't matter even if you increase your holdings. Don't sell blindly, especially Xiao Xu." Gu Junhao warned.
One third of the funds have already been spent. It is not impossible to do T to increase liquidity, but there is no need to ruin the goodwill for a little profit.
"Why should I pay special attention to it?" Xu Jianqing replied somewhat depressed.
The Wuliangye fund he operated performed well today. It opened flat in the morning and there was a clear rush of funds after the opening.
After the opening, nearly 100 million yuan of funds rushed to buy shares, directly pushing the stock price to 22.30 yuan, an increase of 1.73%.
"You, Mr. Xu, are the most fond of short-term trading. Who else could it be other than you?" Cao Wenxun joked.
During the previous few trading days when there were no transactions, several people chatted privately and learned that Xu Jianqing's previous wish was to become a hot money investor.
"Tingting, Wanke will buy another 150,000 lots." Gu Junhao ignored him and said to Liu Tingting.
After several days of decline and the volatile sell-off in today's early trading, Vanke's share price has dropped to 12.82 yuan, with a daily drop of 3.32%.
As for the current stock price, Gu Junhao has already lost nearly 10 points, and his 150,000 lots have resulted in a loss of nearly 18 million yuan.
"Okay." Liu Tingting replied.
Vanke’s trading volume is very large, and it is actually very easy to buy 100 million units.
When the market opened in the morning, Vanke received 451 million sell orders, which crashed the market.
As the CIRC encouraged insurance companies to enter the market to rescue the market, leading real estate companies with dispersed equity structures became a target.
Vanke's stock price has fluctuated greatly in recent times, with countless long lower shadows, and the trading volume has also increased significantly.
The leading real estate companies that are being targeted by insurance funds for controlling rights essentially deserve it.
The company has excellent performance, its equity is dispersed and its stock price has been suppressed for a long time. It would be strange if such a big piece of fat was not coveted by others.
Even if calculated from the stock market rebound in July 2014, during this round of surge, Vanke's stock price has not doubled from the lowest point to the highest point, which is obviously contrary to common sense.
In today's world where all the powerful people have reacted in advance, Wan Ke is still thinking of taking action, so he can't be blamed for taking advantage of the situation.
At 10 o'clock, Vanke's share price remained around 13 yuan. After a round of rise, the Shanghai Composite Index narrowed its decline to 1.29% to 3461.82 points, which was already higher than the opening point.
Among the tradable stocks in the two markets, most of the stocks began to rebound violently. Home De Lisboa opened the limit down and the stock price soared directly to 10.50 yuan, and the decline narrowed to 4.37%.
"Don't worry about so many things. If you haven't used the 100 million yuan to build a position, don't worry about the stock price. Just buy, buy, buy." Seeing Wu Peng looking at him, Gu Junhao quickly responded.
"Okay, got it." Wu Peng nodded. He didn't expect that Mr. Gu was so determined to go long. Did he receive any news?
Not only Wu Peng, but many others are also not optimistic about the stock market.
Although the two cities have taken frequent rescue actions, it seems that the buying opportunities are not very good at the moment, and the stock market has obviously not stabilized.
I have never heard of a stock market crash ending in less than a month.
Every stock market crash is followed by a consolidation period lasting several years, but since the fund manager wants to build a position, he has no choice but to comply.
It is not surprising that traders, especially those with rich work experience like Wu Peng and Cao Wenxun, have such thoughts.
They only look at the market from the perspective of trading itself, but many things cannot be thought of from the perspective of trading itself.
This market is not a simple market, there are many force majeure issues. Sometimes losing money may be better than making money. You have to give up something to gain something.
Gu Junhao couldn't help but think of a line from a TV series he had watched in his previous life: "The Jianghu is not about fighting and killing, it is about human relationships and worldly wisdom."
At 10:01, the Shanghai Composite Index started a violent rebound. In less than 15 minutes, the index rose by more than 3%. The stock index was closed at 3597.91 points, up 2.59%.
The heavyweight stocks rose wildly, with Wuliangye rising more than 9% and Maotai rising more than 7%.
Small and medium-sized start-up stocks that have not been suspended have begun to rebound violently. Home De Lisboa shares have rebounded from the lower limit price to an increase of more than 5%, with a fluctuation range of more than 15%.
Since July 4, the all-round and three-dimensional rescue of the market has finally shown its full power today.
The two markets began a thrilling intraday rebound, with heavyweight and small and medium-sized start-up stocks forming a resonance.
At 10:18, the Shanghai Composite Index began to adjust after touching the 3,600 integer point. The short-selling force attacked again. At 10:30, the index turned green again and fell to around 3,494 points.
However, this round of short selling has been significantly reduced, and the adjustments of the index and individual stocks have remained stable, maintaining above the intraday yellow moving average.
In other words, there are no shorts today. This is just a normal adjustment caused by a certain team's daily T.
Don't doubt that a certain team will not do T. They are crazier than anyone else in doing T. In some individual stocks, they even do T at the threshold of holding the sign.
This happened to a well-known clothing company in Ningbo at that time. A team was doing T trading with a shareholding limit of 5%. It happened that the stock was undergoing a bonus issue and the trader failed to calculate the limit and the stock exceeded the shareholding limit.
The company issued an announcement in the evening, and a certain team also had to issue an announcement admitting that it was just an operational error.
These were all things Gu Junhao experienced personally back then. The company had a high dividend ratio and a relatively stable stock price trend.
The market was not good at that time, but Gu Junhao still had some interest in it, and he was the largest circulating shareholder of Yongcheng Bank.
With the decline of the clothing industry, its transformation into real estate was not very successful. In the following years, it made profits by continuously reducing its holdings of Ningbo Bank shares.
Gu Junhao also likes Yongcheng Bank very much, but its stock price is too high now.
The recent continuous use of the two oil companies and the banking sector to maintain the index has resulted in the share price of Ningbo Bank not falling much.
Currently, the share price of Ningbo Bank remains around 18.50 yuan, only 30% down from its high point. Now is not a good time to buy.
This week’s large-scale rescue efforts can be defined as the policy bottom, and after the policy bottom there will definitely be a market bottom.
That is the time period when the stock price returns to its value, and buying at the market bottom is the most correct decision.
At the midday close, with the end of the adjustment, the Shanghai Composite Index reported 3549.69 points, up 1.21%. 90% of the tradable stocks in the two markets turned positive, and Wuliangye was close to the daily limit.
Such an increase has been rare since the stock market crash on June 15. In the afternoon, the two markets once again staged a violent rally, with Wuliangye, Tonghuashun and others taking the lead in reporting daily limit.
Within less than 20 minutes of trading, the Shanghai Composite Index surged by more than 4%, breaking through 3,700 points, followed by a surge in daily limit prices.
Under the collective riot, the main funds in the Shanghai and Shenzhen stock markets are in a posture of closing the door and beating the dog, determined to defeat the short sellers.
"Oh shit, my stocks hit the daily limit, haha, thanks Brother T." Li Ze said happily in the Soha group.
It is said that the A-share investors know everything about astronomy, geography and current affairs. Yesterday, Gu Junhao's news was widely circulated. As a investor who considers himself a die-hard fan of Brother T, it is impossible for Li Ze not to know about it.
I didn’t know what to buy, so I naturally returned to Tong Huashun’s arms.
Tonghuashun's stock price fell by more than 7% in early trading, with its lowest point falling to 63.03 yuan, and then gradually stabilized.
At 9:38, Li Ze bought another 8,000 shares of Tonghuashun at a price of 63.60 yuan, spending more than 500,000 yuan.
Due to buying a house, a car and blind dates, as well as being scared by the recent stock market crash, Li Ze, whose personal expenses are increasing, no longer plans to invest heavily in stocks.
This 500,000 yuan will be Li Ze’s future capital. It depends on fate whether he makes more or less money, and it doesn’t matter if he loses money.
Anyway, it’s all earned from stocks, so even if you lose it all it won’t affect your future life.
Li Ze has not yet realized that his investment mentality has slowly formed after a bull market and a stock market crash.
At this time, Ertong Huashun has successfully hit the daily limit, with the share price at 74.80 yuan.
There were quite a few orders on the board, and there was no sign of the board opening. Li Ze made a profit of nearly 90,000 yuan in one day.
"Brother T is really awesome. The market surged after he re-entered the market. His overall view is really strong."
"Luckily I read Brother T's news yesterday. I had planned to sell at a loss but couldn't resist buying again today. I got the daily limit. I was so happy."
After 2 p.m., the limit-up surge in the Shanghai and Shenzhen stock markets continued, with individual stocks constantly hitting the limit-up. Home Deli shares, which opened at the limit-down today, experienced a stunning reversal. The share price was now reported at 12.08 yuan, hitting the limit-up mark in one day.
The trading volume of Home De Lisboa shares has increased significantly, but Wu Peng has not completed his position today. At this time, part of the large order hanging on the daily limit board includes Wu Peng's order.
It is indeed very difficult to buy large amounts of stocks with too small trading volumes, especially those that are considered as monster stocks.
This is also the reason why big funds prefer large-cap stocks. There was only a purchase volume of 100 million yuan, which could not be completed in four trading days.
Looking at Vanke, Liu Tingting's purchase volume of 150,000 lots today was fully completed when the stock price rose from 12.80 yuan to 13 yuan, and it took less than half an hour.
Vanke A has now become Junshi No. 2's largest holding, with 300,000 shares held and a cost price of 13.50 yuan.
With the violent rise of the market in the afternoon and the start of a daily limit wave, Vanke, which had fallen sharply in the morning, has now hit the daily limit of 14.59 yuan. All of Junshi Capital's holdings were unwound within one day.
At 3 p.m., the Shanghai and Shenzhen stock markets closed. Under the violent rise of the two markets, the Shanghai Composite Index fluctuated by more than 10% again throughout the day, rising by 5.76%, and the ChiNext Index rose by 3.03%.
The increase in the index is only superficial. As more than 1,400 stocks have been suspended, only half of them can be traded today.
As the index surged, all tradable stocks on the SME Board and the ChiNext Board hit their daily limit.
Almost all stocks in the Shanghai Composite Index hit their daily limit. Among Gu Junhao's stocks today, except Maotai Liquor and Vanke A, all stocks hit their daily limit.
Vanke surged 9.77%, approaching its daily limit, while Maotai Liquor rose 8.9%.
Maotai Liquor, which rose 8.9%, can only be ranked at the bottom of the entire trading system today.
Today, thousands of stocks in the two markets hit the daily limit. There should not be too many stocks like Home Depot that hit the daily limit.
Under normal circumstances, the floor and ceiling of Home De Lisboa Holdings would be enough to shock investors, but today the attention it received was not that high, and the crazy market obscured the intentions of the main funds.
The reason why there are so many floor-ceiling boards is actually closely related to the fact that many financing accounts have lost account operation permissions.
Due to the inability to replenish margin and collateral, some financing accounts were locked by securities firms.
When facing the liquidation line, these accounts will be automatically queued for sale at the limit price by the system. As the rescue funds are invested without reservation, these truly floor price chips are forced to be liquidated above the limit price.
Some people will be extremely happy because they hit the ceiling today, while others will be extremely depressed because their positions were blown up today.
I watched the stock market rebound while I was forced to lose my chips at the lowest point.
There is no money to buy again, the account is locked and cannot be operated, and some investors even owe money to securities firms and over-the-counter financing institutions due to excessive leverage, and are burdened with debt.
Although the stock market crash caused by a round of deleveraging lasted less than a month, it is unknown how many middle-class families lost their savings and fell back into poverty in the process.
The accumulation of decades or even generations was destroyed in an instant, and the risks of excessive leverage were undoubtedly exposed.
With the massive influx of rescue funds, the Shanghai and Shenzhen stock markets completed a major reversal on July 9 with almost all stocks hitting the daily limit. The A-share market, which had been ravaged by short sellers for nearly a month, finally saw the light of hope.
On the evening of the 9th, the China Securities Regulatory Commission made further additional comments on listed companies' maintenance of stock prices.
Although the requirements of local securities regulatory bureaus for listed companies within their jurisdictions vary, they basically include but are not limited to major shareholders' share purchases, directors, supervisors and senior managers' share purchases , company share repurchases, equity incentives and employee stock ownership plans.
In addition, a deadline has been set for submitting this supplementary plan, which is July 10th.
That is, it must be completed tomorrow, the last working day of this week. If it is not completed, be careful of being blacklisted.
Influenced by this news and yesterday's shocking reversal, sentiment in the Shanghai and Shenzhen stock markets was high on Friday.
Following yesterday, there was another retaliatory rebound.
Following yesterday, the spectacle of thousands of stocks hitting the daily limit was staged again.
In less than a month, A-shares have experienced thousands of stocks hitting the daily limit, thousands of stocks being suspended, and now thousands of stocks hitting the daily limit.
In the years that followed, the investors who participated in this spectacle still talked about it with great relish when they recalled it.
After today's closing, the Shanghai Composite Index rose 4.54%, closing at 3877.80 points, rebounding nearly 500 points in two trading days. The ChiNext Index rose again by 4.11% today, closing at 2535.89 points.
Among all the holdings of Junshi Group, just like yesterday, all stocks except Maotai Liquor and Vanke hit the daily limit today. Maotai Liquor rose 2.97% and its share price closed at 265.59 yuan.
As for Vanke A, it rose 2.8% today and its share price closed at 14.97 yuan. The increase was even less than that of Maotai, and the suppression was very obvious.
The week-long rescue operation made substantial progress in the last two trading days with the comprehensive action of a certain team.
Investor sentiment has begun to stabilize gradually, but it is too early to determine whether it has bottomed out and rebounded.
As of now, more than half of the stocks in Shanghai and Shenzhen stock markets are still suspended. Among these half of stocks, there are countless funds that are already facing the pressure of liquidation, but they are temporarily hidden because of the suspension.
If these companies resume trading in large numbers after seeing the broader market gradually stabilize, it may cause a relatively large impact on the market.
Due to the violent rebound in the past two trading days, thousands of stocks have hit the daily limit in succession.
Some stocks, such as Home Depot, which hit the daily ceiling yesterday, have already made profits of more than 30%. Such a huge profit margin is bound to lead investors to take profits.
Trading next week and even in the second half of July will be a real test for the market. After suspended stocks resume trading, the market will finally face the ultimate test.
After the end of today's trading, due to Gu Junhao's dynamic update on the 8th, industry insiders and ordinary investors are particularly concerned about the net value of Junshi No. 2 Fund.
After the market closes, people are constantly refreshing the private equity rankings.
