Chapter 351 Everyone's Going Crazy About It (Bug Fix): The Trembling of Falling
Fortunately, the provincial CPPCC meeting will not be held until the end of February, so Wang Xiao can still enjoy the excitement in peace and quiet until then.
The Chinese New Year is over, and the Shanghai Stock Exchange is about to reopen. Investors who have been eagerly waiting will have their hearts rising and falling with the numbers on the screen.
The reason Wang Xiao didn't even spend the Lantern Festival at home wasn't because Ms. Chen Yanqiu still hadn't given up on her dream of having a third generation in the family, but because on February 10th, the central bank made a big move, announcing that the inflation subsidy rate for March would be 11.87%.
This is definitely a major positive for bulls on the 327 Treasury bond. Because if the bond is subsidized according to this rate, the redemption price will directly rise to over 152 yuan.
The market reacted instantly.
As soon as the Shanghai Stock Exchange opened, the price of the 327 Treasury bond skyrocketed.
However, the short sellers did not give up, because the inflation subsidy rate announced on February 10 was only for March, and did not mean that the subsidies would be so high in the following months.
It's important to understand that each increase in the subsidy rate means the government has to spend a lot of real money, which puts a strain on the national treasury.
However, the 327 Treasury bond could not be redeemed until July 1995.
Five months is not necessarily a time when the bears cannot turn the tide.
Since we're already on the field, we might as well go all out.
After arriving in Shanghai, Wang Xiao spent all his time in the VIP rooms of the Shanghai Stock Exchange.
Rather than saying she was watching the price trend of the 327 Treasury bond contract, it would be more accurate to say she was observing the general public.
Money is always the most potent drug to stimulate people's emotions, and the Shanghai Stock Exchange was filled with laughter and cheers.
Besides the 327 Treasury bond, there are two other highly popular futures contracts among the ten bonds traded on the Shanghai Stock Exchange: 337 and 319.
Why are these two highlighted in particular? Because they are currently the most outstanding performers in the market.
As is well known, in February 1995, the Shanghai Stock Exchange's top focus was the 327 Treasury Bond, with major players such as China Economic Development Trust & Investment Corporation, Wanguo Securities, and Liaoning State-owned Assets Supervision and Administration Commission all getting involved.
However, in order to achieve their own goals, both the bulls and bears adopted a strategy of "besieging Wei to rescue Zhao," targeting these two bonds first.
Then Wang Xiao witnessed a rather magical scene: while the contract price of the 327 treasury bond was still stubbornly holding, the 337 and 319 bonds had begun to fluctuate wildly.
On February 14th, Valentine's Day, in Shanghai, a city widely recognized as fashionable and chic, while the vibrant colors and fragrance of roses enveloped couples, the alluring scent of money also permeated the Shanghai Stock Exchange.
The price of “337” gradually increased from 136.17 yuan. Then, its daily trading volume also increased sharply from 127,000 contracts on February 16 to 1,357,600 contracts on February 20, becoming the No.1 in daily trading volume of futures for the first time.
At the same time, with its exceptionally high daily increase of 0.94 yuan, it directly took the throne as the top-performing individual bond since the market opened in 1995.
So what exactly happened on this day that made "337," which was almost unknown in the history of Huaxia Securities, suddenly rise to the top?
On this day, following the positive news from the central bank on the 10th, the Ministry of Finance also took drastic measures.
On February 20, the Ministry of Finance announced the issuance of new three-year treasury bonds with a coupon rate of 14%.
What does this mean?
Think about it, what is the coupon rate of the 327 Treasury bond? 9.5%.
With such a large gap between the two, how can you not raise the coupon rate of your 327 Treasury bond?
If you don't raise the price, the people who bought government bonds will curse you to death. Oh, am I wrong for buying government bonds to support national development? You're deliberately bullying honest people.
The market widely believed that the interest rates on already issued government bonds would be raised, resulting in a market-wide collapse.
Whether it's 327, 337, or 339, everyone is singing all the way up.
Riding the wave of the upward trend of "337", "319" followed the same candlestick pattern, with the price rising steadily from 141.08 yuan to 142.98 yuan. The daily trading volume also surged from 302,000 lots to 1,893,000 lots.
Then, one day later than "319", on February 22, it jumped to become the top-performing futures contract on the Shanghai Stock Exchange, thanks to a daily increase of 0.90 yuan. Furthermore, with 2.394 million contracts traded and a daily turnover of 68.23 billion yuan, it set a new record for individual futures contracts.
This was in 1995! What did 68.23 billion yuan mean? In 1994, Shanghai's fiscal revenue was only 16.962 billion yuan!
Can you say the investors are crazy? Faced with such enormous wealth, how many people wouldn't go crazy?
Even the two bodyguards, Xiao Gao and Xiao Zhao, who were just watching, turned red in the face and their hearts were in their throats.
Sigh, if they had known this would happen, they would have been better off investing with the boss.
Although the deposit is high, requiring 20,000 yuan per transaction, the potential to make money is undeniable, especially the high volume and speed of earnings.
Every price increase made them feel their bladders tighten and their bodies heat up.
Money, lots and lots of money, every single number is money!
Wang Xiao turned to them with a smile and asked, "Do you still think MMM stock investors are crazy?"
Xiao Gao and Xiao Zhao were taken aback for a moment, then subconsciously emphasized, "This is different from that stock."
Wang Xiao shook his head, as if talking to himself: "It's the same, all people's desire for wealth is the same."
The two bodyguards exchanged glances, then instinctively turned their gazes to Lyuba.
As a woman, she is the boss's real bodyguard; she should be able to understand what the boss means.
The former KGB agent didn't respond to his colleague's gaze, but instead looked at the screen and exclaimed, "My God, the business world really is like a battlefield. Financial investment can be just like fighting a war."
"More than that, World War III may have already happened, and it hasn't stopped yet. It's a financial war."
Wang Xiao's gaze lingered on the faces of the individual investors downstairs.
These days, there are certain requirements to be able to trade futures and securities. If you're not a millionaire, a business owner, or an overseas Chinese, you don't even qualify to be a retail investor.
It can be said that those who suffered the consequences were all wealthy people of this era.
But who would complain about having too much money? Everyone is putting in their best effort to earn more.
She watched with great interest, while Zhou Liang, who was sitting next to her, couldn't keep up.
For the past ten days or so, the bulls have been celebrating wildly, as if they had been holding back all the joy of the Spring Festival and were now unleashing it all on the financial markets after the holiday.
Only he, a professional who had been bearish on the market before the new year, felt a mix of emotions.
Unfortunately, his boss, Zhang Junfei, wanted him to make a name for himself in front of the boss and specifically asked him to accompany the boss throughout the process so that he could provide professional services at any time.
He just couldn't understand why the boss was spending so much time going to the Shanghai Stock Exchange.
With your status as a big boss and your generosity, do you really need to do things yourself?
Look at Wanguo Securities, Liaoguo Development, and now China Economic Development Trust & Investment Corporation (CEDTIC). Which big boss would come to the stock exchange to oversee things?
The VIP room can never be occupied by the truly wealthy!
They're not afraid of losing face.
He tentatively suggested to his boss, "Why don't you go back and rest? We'll keep an eye on things and contact you immediately if there are any changes."
Tang Yicheng didn't leave Shanghai either. After a year of hard work, he needed a break. He wanted to see how his one million yuan investment would turn out.
He then advised Wang Xiao, "Boss, you should go back first; the smell here is unpleasant."
He and Wang Xiao had known each other since they were young, and he knew that Wang Xiao disliked the smell of smoke. Unfortunately, the so-called VIP room was quite rudimentary, and the wealthy patrons watching the market were all puffing away in their cigarettes; he figured her nose must have been suffering from the stench for a long time.
But this time Wang Xiao shook his head, his gaze still fixed on the ground floor: "It's nothing, I'll stay here. You can go about your business."
Xiao Zhao was genuinely curious: "Boss, what are you looking at?"
"It depends on the person."
Wang Xiao's voice was light and airy, which inexplicably reminded Xiao Zhao of the Gu Long martial arts novel he had read, "The Sentimental Swordsman and the Ruthless Sword," yes, the one about Little Li's Flying Dagger.
It seems there's a martial arts master in there who likes to hang out in the market because it's bustling with people and has a human touch.
Xiao Zhao vaguely wondered if this was why, when the boss was in Moscow, he didn't work in a high-end office building like other big bosses, but instead spent his time in the market.
But the reason why chivalrous people need to experience the human world is because they are lonely.
Are bosses lonely too?
Her eyes were shining as she stared at the crowd; it couldn't possibly be related to loneliness.
In a sense, Xiao Zhao guessed half right.
Wang Xiao was indeed absorbing the energy of the Shanghai Stock Exchange—the stimulating energy brought by money, or more specifically, people's emotions.
Just as vegetable markets and bazaars allow people to experience the warmth of everyday life, stock exchanges are places where the magic of money is most intense.
Wang Xiao needs this kind of stimulation, especially now that her business is so large. She needs this kind of stimulation to remind herself to stay sharp about money and not to be pretentious.
She should never have such absurd thoughts as "I don't love money the most."
It's the law of attraction! If she doesn't love money, money won't love her, which is really terrible.
The boss refused outright, and neither veteran Tang Yicheng nor newcomer Zhou Liang could persuade him any further.
All they could hear was Wang Xiao muttering to himself, "Tomorrow it's the turn of the 327 treasury bonds."
"What?" Xiao Gao asked instinctively, "It's my turn?"
Wang Xiao nodded and pointed to the numbers flashing on the screen: "Look, the trading volume of 337 has plummeted today. Everyone is withdrawing funds so that they can dump them on 327 treasury bonds. This is everyone's Zhao Kingdom."
As soon as she finished speaking, the individual investors downstairs began to leave.
It's time to close the market; the stock exchange will be shut down soon.
It's time to go.
Wang Xiao took a deep breath. The mixed smells of tobacco, leather, ink, and other strange human odors created a scent that smelled like money.
She stepped out of the VIP room, went downstairs, and walked towards the main entrance of the Shanghai Stock Exchange, surrounded by bodyguards and subordinates.
Stepping outside, the carbon dioxide exhaled by people dissipated, and the chill of the first month of the lunar calendar swept over us.
Strangely enough, Wang Xiao felt that the month after the New Year seemed colder than the twelfth lunar month before the New Year.
But the investors, their faces beaming with pride, seemed oblivious to the cold.
Some Wenzhou business owners even opened their mink coats, revealing Montblanc t-shirts with bulging bellies underneath, and hailed taxis with an air of triumph before speeding away.
There were quite a few taxis waiting outside the Shanghai Stock Exchange. The drivers all knew that people coming out of there were exceptionally generous. Whenever their stocks, bonds, or futures rose, "Keep the change" was their mantra.
Even those who couldn't hail a taxi in the first wave because there weren't enough were handing out cash everywhere, and some even ran across the street to stuff money into people's hands.
That place was a spontaneous labor market, gathering laid-off workers from Shanghai.
Each person has a card in front of them with the type of work listed, such as carpenter, fitter, or electrician. They either hang the card on the handlebars of their bicycles or hold it in their hands so that customers looking for workers can quickly find the person they want.
The well-dressed old man went over to hand them money. Some people smiled and thanked him, while others awkwardly and uneasy refused, but the old man still stuffed it into their pockets with great style.
The old lady, dressed in a bright red woolen coat, looked quite stylish. She bought several trays of steamed buns and mantou from the steamed bun shop next door and delivered them to the workers in bags.
Two completely different worlds separated by a stock exchange were connected by their outstretched hands.
Wang Xiao slowly exhaled, neither approaching nor handing out money to anyone, and simply said, "Let's go."
The people who came out behind him were still complaining: "It's insane, I think the government has really gone mad. Subsidizing interest rates is just crazy! Unless it's insane, it absolutely cannot subsidize interest rates. This subsidy, just for 327 alone, it will subsidize 1.6 to 1.7 billion yuan. How much money does it have to subsidize?"
He turned to look for his ally, "Don't you think so, Zhou Liang?"
Oh, it's that Senior Brother Zhang.
He stared at Wang Xiao with eyes blazing with fury, like a low-class man who turns on someone the moment he suffers a great humiliation for failing to win over his goddess. He said sarcastically, "This country's stock market is a mess because people who don't understand economics or finance are meddling in it."
Wang Xiao never wastes time on unimportant people.
She pretended not to hear, continued walking, and got into the car.
He wasn't qualified to make her stop.
Zhou Liang quickly nodded to his senior brother and said, "We'll talk later."
He hurriedly got into the car.
Thank goodness, although he was bearish, he didn't invest; otherwise, he would be the one in a terrible mess right now.
Sigh, the market has come to this point; it's truly a complicated situation.
Although Brother Zhang's words were harsh, from a market perspective, he still agrees with Brother Zhang's views.
No bond market in the world operates like this.
He had to admit that he still harbored a glimmer of hope, expecting the market to turn the tide.
But when the news came on that evening, his illusions were completely shattered. The news reported that the Ministry of Finance announced that the 1995 Treasury bonds would be issued on March 1st.
When Zhou Liang saw the news, he had only one thought in his mind: It's over, all the short sellers are finished.
Sure enough, the next day, February 23, 1995, a day that will be mentioned countless times in the history of Huaxia Securities for the next thirty years, at 9:15 a.m., the Beijing Stock Exchange, which opened 1 hour and 15 minutes earlier than the Shanghai Stock Exchange, saw "327" quickly pushed to the daily limit by the bulls as soon as the market opened.
Zhou Liang subconsciously looked for his senior brother's figure, and unsurprisingly, he saw a pale face.
In the dead of winter, the Shanghai Stock Exchange had virtually no heating, but Senior Brother Zhang's forehead was covered in large beads of sweat, as if he were completely exhausted.
Having reached this point, all the short sellers knew perfectly well that the tide had turned.
As expected, the market reaction in Beijing caused the Shanghai market to boil over as well.
At the very beginning, many retail investors, led by large investors such as China Economic Development Trust & Investment Corporation (CEDTIC), began to increase their bets in droves.
Almost all the funds they invested in "319" and "337" were diverted and poured into "327".
There are stars in this world that can't be promoted no matter how much money you spend, but there are no bonds that can't produce results even if you put money on them.
Under almost everyone's watchful eyes, the price of "327" gradually climbed from 148.5 yuan to 151.98 yuan.
With each jump in the numbers, the bulls would gasp in surprise. Some even took out their megaphones and blew them loudly, as if celebrating a goal.
In stark contrast are the short sellers who have persisted until now and have not yet withdrawn.
Looking at their pale faces, Wang Xiao wondered if this was even worse than a cholecystitis or angina attack.
It's no wonder they were heartbroken; at this moment, no one could understand the torment of pain better than them.
According to the rules of the Shanghai Stock Exchange futures trading, a margin of 500 yuan is required for each contract.
When futures losses exceed the minimum maintenance margin, the client must add more funds.
If you do not add more funds, the brokerage firm has the right to forcibly liquidate your position.
The underlying asset of the 327 bond is a treasury bond with a face value of 20,000.
This also means that if a customer loses 1 cent for every contract, they will lose 2 dollars.
In other words, a client with a margin of 500,000 yuan can trade 1,000 contracts according to the regulations.
If each of these 1,000 contracts loses an average of 2.5 yuan, then the 500,000 yuan margin will be wiped out instantly.
It's gone, completely gone, not even a tiny bit will remain.
This is the futures market, like the sea on a moonlit night, alluring yet cold and cruel.
Where there is laughter, there is also tears.
The entire market went completely crazy, with all sorts of rumors flying around.
Some say that leaders from the China Securities Regulatory Commission (CSRC) are going to visit the Shanghai Stock Exchange; others say that the Shanghai Stock Exchange is convening a meeting with securities firms; still others say that the main short sellers are arguing with the leaders of the Shanghai Stock Exchange.
In any case, everyone who sent the message described it vividly, as if they were there in person.
However, after the lunch break, when the market reopened in the afternoon, everyone forgot about gossip, and the market experienced another sharp fluctuation.
It is said that every world has its own Italy, all show and no substance, not only unreliable in crucial moments, but also capable of turning against you.
Italy, the "327" government bond short-selling alliance, is Liaoning State Development.
At a critical juncture for the Air Force Alliance, instead of fighting to the last moment, it reversed course, closing out 500,000 short positions and then buying another 500,000 long positions.
One can only imagine how chaotic the Shanghai Stock Exchange must have been that afternoon.
The phone lines were ringing off the hook, and the traders in their red vests were practically typing away, creating sparks on their keyboards.
It seems the legendary leaders from the China Securities Regulatory Commission (CSRC) have really arrived, as leaders from the Shanghai Stock Exchange even came out to greet them.
However, almost no one in the market has the time or inclination to care about them.
Everyone was busy watching the market, and the fluctuating numbers on the screen were keeping everyone on their toes.
As Wang Xiao watched, her eyes began to sting.
She closed her eyes, rolled her eyes, and in less than two seconds, a gasp suddenly rang out in the hall: "She fell!"
Tang Yicheng, who was shaking his neck, suddenly widened his eyes, wondering if his 2.0 vision was mistaken.
Oh my god! What happened? How did it suddenly drop from 151.3 to 150 yuan?
He blinked hard, wondering if he was hallucinating.
But when he opened his eyes again, the number flashing on the screen was no longer 150 yuan, but 148 yuan.
He thought the scene would erupt in chaos, with everyone screaming, shouting, and yelling, suspecting that there was something wrong with the computer.
But no, this bizarre plunge was like a curse, freezing everyone in place.
Everyone stared wide-eyed and gaped, wondering if they were in a hallucination, completely unsure of what to do.
Tang Yicheng subconsciously turned to look at his boss, and only three words came to his mind: We're doomed.
The number on the screen changed again, this time to 147.4 yuan.
Tang Yicheng knew that the million he had invested was definitely going down the drain.
He felt the pinch, but it was limited; after all, the maximum he could get was only 1 million.
Unlike her boss, who always goes all out. She even placed an order that morning.
This time, her losses were in the hundreds of millions.
That's probably why her reaction was so strange—she didn't cry, make a fuss, or get angry; she just stared straight at the screen, as if she were in a trance.
Wang Xiao did indeed feel his soul floating lightly.
How can I describe it?
She was falling rapidly, as if she were falling rapidly after an extreme climax.
Her soul trembled, trembled from the deepest part of her body, and every cell in her body shuddered.
She had no strength, not even a little bit. After the extreme excitement came the so-called "wise man's time."
Yes, she felt as if she had experienced an unprecedentedly exhilarating sexual encounter.
They spent hundreds of millions of yuan, only to be left with a trembling feeling in their souls.
She even felt it didn't matter if there was no reversal; she didn't regret spending the money at all.
She hadn't felt this tranquility in a long time, and she closed her eyes with longing, slowly savoring the peace.
Tang Yicheng and the others were terrified.
When trouble comes, I'm not afraid of people crying or making a scene, but I'm afraid of people like their boss, who are eerily calm.
You need to vent your emotions; otherwise, things can really go wrong.
Even if it means fainting.
Yes, just like that well-dressed elderly lady from an overseas Chinese family in the lobby, the one who delivered steamed buns to laid-off workers yesterday—she fainted on the spot.
She had broken the pearl necklace around her neck herself, scattering pearls all over the ground.
And then there was the old man clutching his chest; his reaction was that of a normal person—pain, despair, and constant muttering of "impossible."
"Impossible!" roared the bulls in the VIP room. "How big is the market? How many lots would it take to drive the price down to this level in such a short time? There's simply no way that many lots at 327!"
"Yes, yes, yes!" Someone immediately found their tongue and chimed in, "That's impossible, someone is definitely up to something."
But it was too late, because the closing bell had already rung, the time was up, and today's battle was over.
Zhou Liang inappropriately thought of a book called "For Whom the Bell Tolls," which should be a novel by Hemingway.
As for what the novel was about, he didn't remember; he had no recollection of it at all.
He felt as if the sound of the bell was a rusty blade cutting through everyone's throat.
"This can't be!" someone shouted, the first voice of protest. "We have to get an explanation!"
"Yes, yes, yes!" The angry voices gathered like an ocean, surging and crashing against the Shanghai Stock Exchange.
The big investors upstairs were also rushing down, all heading to surround and intercept Wei Wenyuan, the head of the Shanghai Stock Exchange.
If the Shanghai Stock Exchange dares not give everyone an explanation today, they will simply tear this place down.
Tens of millions of dollars have vanished just like that. Who could bear that?
A few short sellers who held on to the end retorted with dissatisfaction: "Oh, so you lost money because you guessed wrong, that means you had inside information. But when we lost money, how come there wasn't inside information? Who does that? You have to accept the consequences of your bet!"
"I'll lose to you, you son of a bitch!"
If the security guards hadn't been desperately trying to stop them, the two sides would probably have gone into a full-blown brawl.
Wang Xiao stood on the second floor, looking down at the chaos below, as if savoring the afterglow, experiencing the madness created by money.
The general manager of the Shanghai Stock Exchange, unable to leave the area, finally made a promise: the Shanghai Stock Exchange will immediately investigate the strange situation in the last eight minutes and guarantee an explanation to everyone.
General Manager Wei Wenyuan had a good reputation, and after his repeated assurances, the angry investors gradually dispersed so that he could investigate the truth of the matter.
Wang Xiao gradually recovered from exhaustion, and at least he could move his hands and feet again.
She lifted her foot and casually tossed out, "Let's go."
That's interesting; she's witnessed a historic moment, hasn't she?
The chaos at the Shanghai Stock Exchange continued. As she descended the stairs and walked through the crowd, she suddenly crouched down and picked up a smooth, round pearl.
The cool beads rolled in her palm, sparkling and lovely.
Just like her owner, the old lady who bought steamed buns for laid-off workers, she was elegant and dignified.
Unfortunately, the old man was slumped in the chair with his eyes closed, and it was unclear whether he had woken up.
Wang Xiao handed the beads to the cleaner and then gestured for Zhang Junfei to give her 100 yuan, since she rarely carried cash with her.
"Please help me look for it," she pleaded with the cleaner. "Please help the old lady look for it. It'll cost you a hundred yuan. Thank you."
The cleaner was a little taken aback, nodded with an "oh oh" sound, and subconsciously looked around.
How can we find the pearls scattered all over the ground and trampled underfoot by the crowd in this mess?
In fact, Wang Xiao also knew that given the chaotic state of the exchange, probably only a few of these pearls would be recovered.
But these are not things she can decide, and she doesn't even care.
She was simply doing her best and accepting her fate.
Across the street from the Shanghai Stock Exchange, at the open-air labor market, laid-off workers are still waiting for employers. But on this day, perhaps they won't receive their paychecks or hot buns.
The only thing that could provide them with heat was the white mist they exhaled from their mouths and noses.
Wang Xiao slept very well that night.
She went back to the hotel, took a shower, got into bed, closed her eyes, and fell asleep. The last time she looked at the clock, it was not even 6 p.m.
She had no dreams, not a single dream; she fell into complete darkness, a warm and comforting darkness.
So when she opened her eyes and saw Ivanov squatting by the bedside, she wondered if she was hallucinating.
"Ivan, what are you doing here?"
Ivanov looked hurt: "You don't welcome me? Your Majesty, you don't welcome me."
Wang Xiao had just woken up and was still weak. She could only laugh and cry at the same time: "What nonsense are you talking about? You know that I'm always happy to see you, just like I'm happy to see my family."
She shook her head slightly to clear her mind. "Can you answer my question now? Why did you suddenly come here?"
“They told me,” Ivanov explained, “that something had happened and that you might need me.”
Wang Xiao was speechless for a moment, then sighed and asked, "Do you know what happened?"
"Know."
"Do you think I would have a bad reaction to such a small thing?"
“You won’t.” Ivanov grasped her hand, which was sticking out from under the covers. “I know you won’t.”
It's only eight figures in US dollars, it's no big deal.
Don't forget that in the summer of 1993, the Russian Federation government suddenly abolished the old ruble, causing them to lose $1 billion.
Nothing happened, did it?
“It’s me who needs you.” His voice was muffled. “I’m just looking for a reason, a legitimate reason, to come to you because I need you.”
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Regarding the 327 Treasury bond incident, this chapter referenced a lot of materials, but I don't have time to finish it today, I'm too sleepy. I'll post it in the next chapter. [Done] Goodnight, Makka Pakka.
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