Chapter 748 - 311: Impulsive Jiang Banxia
Facing the upcoming opening of the Chinese stock market, all the investors were on edge.
The result of the opening was already predictable.
Even the US stocks had been tumultuous during this period, with the NASDAQ dropping over a thousand points.
But regardless of their mood, on the tenth day of the first lunar month, the market still opened.
During pre-market bidding, countless people desperately wanted to sell their shares because they didn’t know how long this situation would last, and most families needed the money.
And so, when the pre-market bidding ended, the Chinese stock market had already crashed.
Fortunately, the circuit breaker policy from 2016 was canceled after just a few days, otherwise the market would have hit the breaker as soon as it opened.
Ultimately, half an hour after the market opened, the Shanghai Index plummeted by 8.7%, and the Shenzhen Index fell by 9.2%, with nearly 3,200 stocks hitting the limit down across both markets.
This was more terrifying than the stock market crash of 2015!
A dark, terrifying atmosphere hung over everyone in the stock market.
Despair! Abyss!
The wealth of countless people evaporated into thin air.
Many people couldn’t even sell if they wanted to.
For many investors, the tens of thousands or hundreds of thousands of yuan they had in the stock market were among the few urgently needed funds for their families.
Facing unemployment, facing job loss, and seeing several mouths in the family waiting to be fed.
This day, they didn’t even have the chance to accept the loss and exit.
All locked in at the limit down, who would buy?
...
Li Yang was buying!
Especially performance stocks, he was continuously buying since the market opened.
Although he could throw in more than 300 billion yuan to forcefully revive the market.
But there was no need for that.
There were many retail investors in the Chinese stock market, and they had no risk resistance; today they would sell off, and tomorrow they would still sell.
No matter from what angle, going all in today was not a wise choice.
He couldn’t just come out and say: Don’t sell, wait a little longer!
Saying that would be tantamount to manipulating the market.
Li Yang also knew that foreign investors were overjoyed today, buying up quality assets of the Chinese stock market at very low prices.
Fortunately, Wanliu Capital managed to snatch some from them.
By noon, the two markets traded 260 billion yuan, and very few limit-down stocks were pulled up, for instance, Moutai, was pressed hard at the limit down.
There was only one theme with a limit up, which was medical equipment.
Even Moutai was pinned down, needless to say for others.
...
Jiang Banxia only got up at 11 a.m., because she was busy very late last night. In the past few days, she frantically bought the short positions thrown by the other party, the struggle between both sides had reached a fever pitch, and she spent almost the entire day watching data.
After getting up and having some food, she casually glanced at her phone and found that over 3,000 stocks in the Chinese market had hit the limit down.
The internet was full of wailing, especially in her comment section.
Everyone knew she was the richest person in the world, having topped Forbes again last year with a net worth of 1.4 trillion yuan, equivalent to 210 billion US dollars.
Jiang Banxia actually knew that the stock investors in China were in a miserable state, except for a few lucky ones, most were being taken advantage of every day.
It’s just that finance is like this; there will always be someone losing money.
At most, at certain stages, no one would lose, but extending the timeline, you’ll find that the losses and gains are actually about the same, mostly just the market having some bubble that disguises the essence of the game.
The essence of a zero-sum game is that if someone earns a hundred bucks, someone else loses a hundred bucks.
But it’s different in stocks; someone might lose fifty bucks, but someone earns a hundred bucks.
The extra fifty bucks is the bubble added on the stock market.
And there are those who lost a hundred bucks, but someone only earned fifty, that’s when the stock market wipes away fifty bucks of bubble.
Over 3,000 stocks hitting limit down...
Jiang Banxia could imagine the countless despairing families behind this.
The possible loss of tens of thousands they had painstakingly saved as pocket money.
Essentially, she shouldn’t sympathize with those who speculate in stocks, after all, putting money in the stock market means you should be ready for it to be lost.
It’s a gamble after all.
But she felt that countless people losing their blood-stained chips at this time was too cruel.
What’s happening today will continue tomorrow.
The morning trading session just ended, and even foreign investors didn’t dare to go all in, maybe they only took a few billion yuan from the market.
But after the afternoon session begins, it could be different.
They are very cautious in taking chips, they would never lift the market, emotions are their best tool.
They might even crash the market madly early tomorrow morning, further driving emotions.
The bits of chips foreign investors hold are definitely not enough, domestic financial institutions are their helpers.
Plus, individual investors can’t discern the situation, seeing the plummet will blindly choose redemption, inexplicably giving those financial institutions excuses.
Jiang Banxia couldn’t predict the future of the Chinese stock market, but since Li Yang was personally overseeing it, it meant there shouldn’t be a problem.
In fact, now truly is a good opportunity because foreign capital had largely exited before the year-end, even if some came back today, it was no big deal.
Precisely when the Chinese market is weakest, foreign investors had the most ammunition.
If it lasts two days, who knows how much more the foreign investors could make.
Perhaps hundreds of billions, maybe even thousands of billions.
She didn’t know if she should call Li Yang.
Afraid that if she called, Li Yang might disagree.
She even pulled out her contact list but ultimately didn’t make the call.
At twelve noon, Jiang Banxia updated a short video.
The content was recorded of her sitting on the sofa.