Chapter 84: “Stabilization Fund” Enters the Market
Li Feng pondered for a moment and said, "Let's start with the most basic ones, such as Principles of Economics, Microeconomics, Macroeconomics, Money and Banking, and The Wealth of Nations. Let's read these first."
Lin Menghan frowned and said, "Are these books related to the stock market?"
Li Feng explained: "It's not particularly relevant, but it can help you build some very unique models in your brain to re-examine the stock market. At the very least, it can help you avoid being fooled by those big Vs. When doing value investing, it can also help you clarify some industry cycle issues."
Lin Menghan opened her phone, searched for them one by one, and placed an order.
Li Feng finished his tea, stood up and said, "Let's go eat."
Outside, the sun was shining brightly and the sky was cloudless.
On the Financial Pedestrian Street, people and cars were coming and going, and countless handsome men and beautiful women were strolling and chatting. There was no sign that the stock market was collapsing.
No matter when, stock investors are ultimately a small part of the society, and the stock market is just a very small pool in the entire social economy. Without the stock market, the earth will still rotate normally.
The three of them walked around twice and entered the Spicy Mother-in-Law restaurant. They chose a quiet private room and ordered several signature dishes.
Soon, boiled fish, spicy chicken, black pork, stir-fried cabbage, stir-fried beans, dumpling soup, and rice were all served.
“Wow, it’s delicious.”
Zhao Xinyue took a bite of the boiled fish and felt a numbing, spicy, and fresh taste that filled all the taste buds on the tip of her tongue, instantly making her forget everything in the stock market.
“Try this.”
Li Feng took a bite of black pork. The pork was said to be from the wild black pigs raised in the Xishan Forest Farm. They were slaughtered after three years. The pork was fat, tender, chewy and not greasy. It was indeed authentic.
Lin Menghan picked up the chopsticks, took a bite, and her eyes lit up.
"And this, the dumpling soup, is also very delicious... Menghan, you try it..." After eating the boiled fish, Zhao Xinyue scooped a bowl of dumpling soup and recommended it with high praise.
In the past few days, the three of them had been watching the market, and they mostly ordered takeout and dealt with the business in the trading room. This time when they came to La Po Po, they naturally feasted on the food and satisfied their appetite.
Just as Li Feng was enjoying his meal, his cell phone started vibrating "buzz, buzz, buzz".
He picked it up and looked at it, and was stunned.
"What's wrong?" Zhao Xinyue asked with her beautiful eyes flashing.
"Another rescue." Li Feng said with a wry smile.
"What is the policy this time?" Lin Menghan asked.
"This rescue policy is really big!" Li Feng stared at his mobile phone and said word by word.
Zhao Xinyue was impatient and went over to pull out a long message, only to see that it was forwarded from a group called "Old Stock Friends" where Li Feng was.
There are three policies to rescue the market, and each one is very important.
First, the two markets will suspend IPOs and return funds that have already been subscribed.
Second, Central Huijin has entered the market.
Article 3. China Securities Finance Corporation will significantly increase its capital and expand its shares, and its registered capital will increase from 24 billion yuan to 100 billion yuan!
"Uh, just suspend the IPO of new stocks..." Zhao Xinyue said in surprise.
"It turns out that the mysterious funds from a few days ago came from Central Huijin Investment." Lin Menghan looked at the second line and muttered to herself.
Li Feng pondered for a moment and said, "It seems our strategy of investing in new stocks without risk is about to fail... I'll go repay the loan when the market opens on Monday."
Zhao Xinyue was anxious and took out her mobile phone to browse the posts in major stock forums. The stock investors were all skeptical, some watched coldly, and some were just spreading rumors.
"Save, save, save, can we save him?"
"The IPO is on hold, financing is reduced, great news, go for it if you're not afraid of death!"
"I'm afraid of death, you go first."
"Me? I'm still stuck at 5,000 points, waiting for you to come and free me..."
The stockholders spoke in a humorous way, and Zhao Xinyue laughed as she watched. Her eyes curved into crescents, which was very beautiful.
At this time, in the trading room of Hengtong Financial Company, Liu Bin was eating a bowl of braised chicken with rice. While eating, he saw the news about the market rescue that had just been released.
"NND, it's another bailout, don't try to trick me into joining again..." He said hatefully, like a mouse whose tail was stepped on, with lingering fear.
While everyone was hesitating, an even more powerful rescue policy was released.
Saturday, July 4, 2015.
The China Securities Investment Fund Association announced that a total of 25 public funds, including Hua Xia Fund, E Fund, Harvest Fund, and Southern Fund, held a meeting and stated that the market has undergone substantial adjustments and has investment value. They will actively subscribe to the company's equity-oriented funds and hold shares for at least one year.
The China Securities Association announced that a total of 21 securities companies, including CITIC Securities, Haitong Securities, Galaxy Securities, GF Securities, and China Merchants Securities, jointly announced that the 21 securities companies will invest 15% of their net assets at the end of June 2015, a total of no less than 120 billion yuan, to invest in blue-chip EFTs. At the same time, the Shanghai Composite Index is below 4,500 points. Based on the balance on July 3, the company's proprietary trading will only increase and not decrease.
Sunday, July 5, 2015.
Even more important news has been released.
The People's Bank of China announced that it would provide unlimited liquidity support to securities finance companies.
The China Securities Regulatory Commission said that Central Huijin Investment has bought open-end fund index ETFs.
The China Financial Futures Exchange restricts the opening of stock index futures positions, especially malicious short positions!
China Securities Finance Corporation and State Administration of Foreign Exchange are equivalent to my country's "stabilization funds". They are responsible for stabilizing the stock market, providing liquidity support, and representing the will of the state.
Countless investors, after seeing the series of blockbuster news released within three days, felt a glimmer of hope in their already desperate hearts.
"In less than a month, the market has plummeted by nearly 30%. It's time to save the market. It's valuable..."
"This is real money, a comprehensive rescue of the market. From the central bank, the China Securities Regulatory Commission, to the China Financial Futures Exchange, securities firms, and funds, every conceivable channel and method has been used..."
"The securities firms alone have 120 billion yuan in real money. Add in funds, as well as Huijin and Zhengjin, and it's at least hundreds of billions, maybe even trillions. Now, Monday is going to be a good show!"
The stock forum is lively again.
Liu Bin stayed in the trading room for three consecutive days, his eyes were red, and he didn't even sleep.
While drinking coffee to refresh himself, he looked at the eight pieces of good news that had come out in the past three days. The fear in his heart slowly faded away, and a trace of greed secretly grew.
Suddenly, his cell phone rang.
"Hello, Mr. Liu, I'm Qin Tianyou, a customer service manager at Jinniu Online Loan. I saw a few days ago that you registered for our company's stock financing business, but didn't deposit any funds. Is there anything you don't understand? I can explain it to you."
"What a harassing call! It's so annoying!" Liu Bin cursed and hung up the phone.
But just an hour later, Qin Tianyou called again.
"Hello, Mr. Liu, our company is holding a big promotion for new customers. The financing rate for new customers is 50% off, only 6%, and the leverage ratio is 1:5. This opportunity is rare and the number of places is limited. I suggest you move your mouse and reserve a seat. You won't regret it in the future..."
"It's so fucking annoying!"
Li Bin cursed and was about to hang up, but after hearing the last part, he hesitated and thought to himself, "I'll just reserve a seat first, just in case I need it. Besides, this company has a very low financing interest rate and high leverage, so it's a good choice."
Thinking of this, he hung up the phone, turned on the computer, and logged into the website of Jinniu Online Lending Company.
Sure enough, the homepage of this online lending company featured a large advertisement that read, "Big rewards for new customers: increased leverage, lower financing rates. Wishing you continued success in the stock market. Just one click and your stake will be instantly credited to your account."
Liu Bin clicked on the ad, and immediately a financing interest rate discount coupon appeared in his account.
Less than ten minutes later, Qin Tianyou called again.
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