Chapter 72: The Second Thousand Stocks Drop
At eight o'clock in the morning on June 25, Liu Bin sat in the trading room in high spirits.
However, half an hour passed and Cao Song still hadn't arrived.
He frowned, called, and cursed, "Cao Song, what the hell are you doing? Why haven't you arrived yet? Don't you know that today's transaction is very important?"
On the phone, Cao Song cried:
"Mr. Liu, I was so happy last night that I drank too much. I felt a little dizzy while driving this morning, and I accidentally rear-ended the car in front of me. Sigh...Mr. Liu, how about you send someone over to help me deal with this?"
"What the hell is this! You're such a hopeless case, you failed at the critical moment, you deserve to be poor for the rest of your life! Just settle the car accident privately and get back here!" Liu Bin cursed and hung up the phone, turned on the computer, and checked the pending orders again.
There are no errors.
To ensure safety, the price is directly set at the daily limit price to ensure that the transaction can be completed at the opening.
At 9:15, the bidding began, and Yinzhijie indeed saw unusual movement. Driven by favorable news, buyers and sellers poured in thousands of large orders, pushing the price firmly to 9%. By 9:19, the buying orders suddenly withdrew, and Yinzhijie's gains suddenly dropped: 7%, 5%, 4%...
Finally, at 9:25, the opening price was generated, which was just over 3 points higher.
"This must be the main force suppressing the market,"
Liu Bin breathed a sigh of relief and checked the transactions again. The transaction details showed that they were basically all small orders. "Sure enough, the retail investors were scared away."
However, he was just happy for six minutes, when suddenly at 9:31, a huge sell order of 3,291 lots directly pushed the share price of Yinzhijie to near the flat line, directly killing nearly two yuan per share, which scared Liu Bin.
3291 lots, but nearly 30 million in funds, this is definitely not the work of retail investors.
Could it be that the main force is shaking the market?
Yes, it is shaking out the market. You will see that before long, the price will go up directly and hit the upper limit! Just like on June 17th.
Liu Bin stared at the screen, shouting in his heart: "Pull it up, pull it up, pull it up!"
Three minutes later, several consecutive buy orders suddenly appeared, and the stock price of Yinzhijie was suddenly pulled up from near the flat price, rising straight to 2.62%!
Liu Bin took a breath, but before he could catch his breath, wave after wave of selling orders came pouring out, and Yinzhijie was defeated. At 10:34, it had fallen by -9%.
"With such great news, it must be a market shakeout, it has to be. Look, isn't it down to around -5% again? It will definitely go up in the afternoon!"
Liu Bin comforted himself in this way.
However, Yinzhijie was like a rebellious son who was unwilling to live up to his expectations. It struggled weakly and powerlessly, and at 2:42 p.m., it was directly blocked by the lower limit.
Liu Bin looked at the straight line with a dazed look on his face.
The lower limit is actually the lower limit, not the upper limit. What is going on?
Where is Cao Song? Yes, where is Cao Song?
It was only then that he realized that Cao Song had not returned since the car accident in the morning.
Liu Bin hurriedly called, but the phone beeped a few times before he hung up. He then opened WeChat and saw a message: "Mr. Liu, the traffic police say I'm suspected of drunk driving. I'm going to the police station. Mr. Liu, please bail me out."
"Get out!" Liu Bin replied harshly, and sat down heavily on the chair again.
Only then did he realize that the Shanghai Composite Index opened high and closed low, falling by -3.46%.
"Oh, the overall market must be bad. The overall market must be bad. The main force is further cleaning up the market!" Liu Bin comforted himself in this way and spent the night in fear.
Zhao Xinyue and Lin Menghan looked at the negative line and looked at each other in confusion. They did not expect that Li Feng's prediction would come so quickly.
The next day, on June 26, the Shanghai Composite Index jumped -7.40%, breaking through four key integer thresholds of 4500 points, 4400 points, 4300 points and 4200 points. The short sellers rushed in and directly killed the index to 4192 points. A total of 2049 stocks in the two markets hit the limit down, and only 50 stocks were in the green. The trading volume of the two markets has shrunk to less than 900 billion.
The “6.26” stock market crash is coming.
On that day, Yinzhijie also opened at a gap down of -5%, and just three minutes later, it fell to around -9%.
Clearance? Or not?
Liu Bin looked extremely nervous. He held the mouse, looked at the market, then at individual stocks, and was hesitant.
If he didn't liquidate his positions, his account would have lost nearly 8 million! Looking at this staggering figure, his heart was bleeding.
But if I liquidate the position, wouldn't the 8 million be a real loss? Now it's just a paper loss, so there's still hope of recovering it. If I liquidate the position, then the paper loss will become a real loss.
While I was hesitating, Yinzhijie directly blocked the lower limit and I couldn’t sell it even if I wanted to.
Liu Bin slumped down on the chair, staring blankly at the ceiling, as if his body and mind had suffered tremendous torture.
The continuous plunge for several days caused a huge wave in the stock forum, completely waking up the investors who were pretending to be asleep.
"I've never seen anything like this before. The ChiNext Index actually dropped -8.91%! Almost all the stocks on the ChiNext have hit their limit down. This saves me a lot of worry. I don't have to trade anymore, and I don't have to compare my returns with others."
"Welcome once again to the era of thousands of stocks hitting the limit down! Everyone, please share how many limit downs have you experienced in the past few days?"
"Sharing is a joke, I've already blown up my account!"
"Attention, it's not the bulls that are coming back, it's the bears that are coming out! A stock market crash is coming! Everyone, run!"
"Run? I've already been trapped!"
"What do you mean by reversing to pick someone up? It's more like reversing to run over someone. Now the car door is welded shut and I can't get out. Help me! I don't want to play anymore. I want a refund, o(╥﹏╥)o..."
"This Dragon Boat Festival, oh, everyone is either eating rice dumplings or preparing to jump into the river..."
Stockholders spoke one after another, wailing and comforting each other. Facing the stock market crash, there were no more arguments between bulls and bears in the forum, no more verbal abuse and accusations, and everyone instantly became united.
In the trading room next door, Zhao Xinyue looked at the astonishing drop in the Shanghai Composite Index, opened her mouth exaggeratedly, and murmured:
"This is too much! It took only nine trading days for the Shanghai Composite Index to drop by 1,000 points, nearly 20%. The Shanghai Composite Index had been working hard to rise for a month, and it was gone in an instant."
Then, she quickly called up the K-line charts of CRRC, LeTV, and Eastmoney. Without exception, the three stocks were either directly blocked at the lower limit or on the way to the lower limit.
Especially CRRC, which has fallen to 14.82 yuan. After being halved, it hit the limit down again.
She couldn't help but feel a little scared. If she hadn't cleared out the inventory in time, she would probably only have 300,000 yuan left out of the previous 500,000 yuan.
The stock market is so dangerous. In just a few days, buying or not selling can make a world of difference. It is really a matter of one thought: heaven or hell.
Lin Menghan quietly opened the K-line charts of Kweichow Moutai and China Merchants Bank and said, "Blue-chip stocks have basically not fallen. Kweichow Moutai has only retreated about 10% from its peak, and China Merchants Bank is similar."
Li Feng nodded and analyzed:
"This bull market is different from previous ones. It's a typical leveraged bull market, a bubble bull market. A large number of new investors are using leverage to enter the stock market, inflating the bubble inside the stock market. This is especially true for the ChiNext (Growth Enterprise Market), where the bubble is even bigger and more dangerous."
"Take a look at this data. As of June 12, the median PE ratio of the Shanghai Composite Index was still 24 times, which is considered moderate. However, the PE ratio of the ChiNext has soared to over 140 times, more than double the PE ratio during the unprecedented bull market of 2005-2007! It's a full six times higher than the Shanghai Composite Index! This shows how serious the bubble is!"
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