Chapter 161: The trade war intensifies, and the Shanghai Composite Index falls below 3,000 points

Before I knew it, more than two months had passed.

The Shanghai Composite Index has been fluctuating between 3,000 and 3,100 points, like a lone boat drifting in the ocean, with no idea where it will go in the future.

During this period, the Sino-US trade war entered a melee.

Starting from May 2, 2018, China and the United States began negotiations. The United States began Trump's "maximum pressure" and "madman strategy" and began to make exorbitant demands, putting forward a total of 11 unreasonable negotiation demands.

Among them, there is a reduction in the trade deficit with the United States, the cancellation of subsidies for 10 high-tech sectors in "Made in China 2025", and the removal of investment restrictions...

Every one of these demands is unfair and even extremely unreasonable.

This is the "maximum pressure" strategy used by businessman President Trump. He first creates bargaining chips out of thin air, then asks for exorbitant prices, presses forward step by step, and pursues maximum benefits.

Faced with this situation, our country sent an experienced team to conduct negotiations.

In mid-May, the second round of negotiations...

In late May, the third round of negotiations...

The negotiations went smoothly and the stock market was calm.

Just when everyone thought that the negotiations were successful and the trade war between the two countries would stop.

The market is closed during the Dragon Boat Festival.

On June 15, the United States unilaterally announced that it would impose a 25% tariff on Chinese imports on July 6, directly undermining all negotiation results!

my country's Ministry of Commerce subsequently announced that it would retaliate against the United States by introducing tariff measures of "equal scale and intensity."

On June 16, my country announced that it would impose a 25% tariff on 659 items worth approximately 50 billion yuan originating from the United States, and would impose tariffs on American agricultural products, automobiles, fruits, etc.

On June 18, Trump announced that he would impose a 10% tariff on $200 billion worth of Chinese goods.

Not only has the trade war not stopped, but it has intensified.

Tuesday, June 19, 2018.

The stock investors had just celebrated the Dragon Boat Festival and ate a big green rice dumpling.

The Shanghai Composite Index broke through the key point of 3,000 points as soon as it opened, opening low at 2,980 points.

Before investors could recover from the shock, the market plummeted all the way to the south without looking back, from the opening to the closing, breaking through the two key points of 3000 points and 2900 points in succession, and finally closing at 2907 points.

Throughout the day, the Shanghai Composite Index released a huge volume of 241.2 billion yuan and plummeted 3.78%, 114.08 points.

This marked the lowest level in two years since June 2016.

Thousands of stocks in the two markets hit the daily limit again, with a total of 1,083 stocks hitting the daily limit, and more than 1,600 stocks falling by more than 9%. No sector turned red!

The ChiNext Index plummeted 5.76%, from 1641 points to 1547 points, hitting a new low in three years!

Since ZTE resumed trading on June 13, it has been hitting the daily limit for five consecutive days, trapping countless retail investors and institutions, unable to sell even if they wanted to.

ZTE Corporation’s Hong Kong stocks plummeted 41.56% on the day of resumption of trading on June 13. After a day of adjustment, they plummeted another 11.49% and 24.81%!

In just four days, the price was halved compared to 24.09 yuan before the suspension, and then it was discounted by 20%!

The cruelty of the Hong Kong stock market is evident from this.

If calculated from the high of 3587 points in January, the Shanghai Composite Index has fallen by 680 points, and the drop has reached 18.9%!

The stock market plummeted, individual stocks were sluggish, and accounts suffered losses. Many people began to feel sarcastic, and some experts even openly expressed "surrender theory." All kinds of monsters and demons began to emerge.

Li Bin, who was far away in WR Village, looked at the K-line chart of Ping An of China and felt very worried. He saw that Ping An of China had fallen from a high of 81 yuan in January to 62.09 yuan today, a full drop of 18.9%!

"Oh, why did you start a trade war? Why not just bide your time? Oh my! Now that's it, the stock market has lost two trillion dollars, and the US is furious. This is a big problem."

Li Bin looked at the account, annoyed, and complained, "Goudan, isn't that right?"

Beside him, Goudan was in no mood to complain about these things. He stared at the China Ping An shares in his account and said worriedly:

"Brother Bin, didn't you say that buying Ping An of China was like picking up money? How come I bought 50,000, and in less than half a year, it's already dropped by nearly 10,000? Isn't this a very fast loss?"

"Yes, Brother Bin, these 30,000 yuan were earned from working last year. I didn't play cards during the Chinese New Year in order to invest in stocks. Oh, I didn't expect that I didn't lose money at the poker table, but I lost money in the stock market. If I had known earlier, I would have played cards. Maybe I could have made some money..."

Er Gouzi echoed from the side.

"Get out of here, all of you!" Li Bin cursed, spitting.

"What do you two wage earners know? This is called value investing. Do you know value investing? It's the secret weapon of Warren Buffett, the richest man in the United States! We should be fearful when others are greedy, and greedy when others are fearful!"

"Now that the Shanghai Composite Index has fallen below 3,000 points, many people, including you two, are scared to death and keep selling. Now is the time to do the opposite. This is a good time to buy!"

"Look, Ping An of China's first-quarter report shows a 30.2% new business value margin! If net profit were calculated according to the old rules, that would be a 32.5% increase! With such impressive performance, its PE ratio is only 12 times!"

"Just like what the stock market god 'Hongqu' said, if January was like picking up money, now is like gold falling from the sky! This kind of opportunity may only come across once in a lifetime!"

"Buying Ping An of China now means buying into China and going long on China..."

Li Bin opened a post from an internet celebrity, saying something that was not in his mind.

Ergouzi and Goudanzi didn't understand and were hesitant.

"Forget it, it's pointless to tell you," Li Bin pondered. "At this price, I'm planning to buy some more. Do you have any money left? Can you lend me some?"

"Brother Bin, I'm broke. I threw all my money into the stock market."

"I don't have any left either, Brother Bin. They're all in the stock market."

When Ergouzi and Goudanzi heard Li Bin say he wanted to borrow money, they waved their hands.

Of course, the two knew that if they lent money to Li Bin, it would be like throwing meat buns at a dog, and there would be no return.

"MD, I knew you guys wouldn't lend me money. If you don't want to lend me money, someone will lend it to me!" Li Bin cursed, opened his mobile phone, and started downloading online loan P2P. After some operations, he borrowed a full 100,000 yuan from several online loan platforms!

Directly bought 1,600 shares of Ping An of China.

Together with the 1,400 shares he had in his account before, he had a total of 3,000 shares.

Looking at these stocks worth hundreds of thousands of yuan, Li Bin felt a surge of pride. He silently calculated in his mind that according to the valuation model of the stock god "Red Yeast", China Ping An's lowest price would not be lower than 60 yuan, and within three years, it would definitely exceed 100 yuan. If he sold them at that time, the tens of thousands of yuan in his account would directly become 300,000 yuan!

It's really an opportunity to pick up money.