At 2 PM, the intraday declines of the SSE Composite Index, SZSE Component Index, and ChiNext Index all exceeded 1.5%, and the declines were rapidly expanding.
At the same time, the intraday declines of the 3 stocks held in Manager Lin's account had all exceeded 5%.
In particular, the 'Oriental Wealth' stock he held had plummeted to around a 7% drop, causing his account's intraday loss to exceed 4.3 million.
An hour ago, his account was still profitable, but now, a full 4.5 million in profit was gone.
Looking at the trading account operated by Su Yi, the 20-lot short position in the CSI 500 Index Futures main contract had turned his account's profit and loss data from an intraday high loss of 300,000 into a profit exceeding 600,000.
Manager Lin watched the market suddenly plunge again without reason, and his mind went blank once more.
He couldn't understand why the market suddenly collapsed.
Of course, deep down, he still believed this was merely a technical adjustment, and the inherent bullish logic of the market was perfectly fine.
Therefore, he had no intention of reducing his positions.
However, his belief was not at all validated by the market's movement that followed.
After trading hours entered 2 PM, the plunge did not stop but intensified.
At 2:26 PM, the SSE Composite Index's decline expanded to 2%, while the SZSE Component Index and ChiNext Index had reached a 3.5% decline.
Small and medium-cap concept stocks, as well as popular core-weight stocks, were all bloodbathed.
Among them, 'CRRC' and 'Oriental Wealth', the two market-leading stocks highly watched by investors, were both approaching their limit down.
After 2:30 PM, the final half hour of the trading day.
The entire market began to form a complete unilateral plunge, with massive selling orders causing panic and exodus.
Finally, when 3 PM arrived and the two markets closed.
A total of over 500 stocks in the entire market hit their limit down, and over 1,000 stocks fell by more than 5%.
The SSE Composite Index plummeted by 3.67%, and the ChiNext Index's decline reached a terrifying 6.33%.
The CSI 500 Index Futures main contract held by Su Yi also closed with a sharp decline of 3.35%.
Based on the closing results of the two markets, the position profit in the trading account operated by Su Yi had rapidly expanded to around 1.54 million.
Compared to his initial investment of 1 million principal, this achieved a doubling of profit once again.
However, his account's large profit also meant that the vast majority of investors in the market were suffering huge losses, as most investor groups primarily engage in long positions when trading in the secondary market.
After closing, Su Yi did not choose to close his positions for profit-taking.
He exited the trading account, closed the trading software, and couldn't help but turn his head to look at Manager Lin sitting beside him.
The latter was staring at the closed market screen, completely lost in thought.
Su Yi glanced at Manager Lin's intraday profit and loss.
He saw that the other party's account had lost over 6.3 million in funds in a single day.
Even though the other party's account assets exceeded 100 million, a loss of 6.3 million in one day would certainly still sting quite a bit.
Su Yi continued to glance at Manager Lin's specific stock holdings and saw that among the three stocks the other party held, 'LeTV' and 'Oriental Wealth' were both at their limit down today, while another financial stock, 'Ping An Insurance', also fell by nearly 6%.
It could be described as a complete bloodbath for his holdings.
"Has the market gone mad? Such a huge plunge!"
"The ChiNext Index almost hit its limit down. Can this still be considered a technical adjustment?"
"Another limit down hit hard, the account is almost liquidated. What's wrong with the market?"
"Ah, my heart's chilled. I'll have to add more margin tomorrow. The market was fine this morning, why did it suddenly crash in the afternoon?"
"Damn it, I'm numb. Both of my stocks hit their limit down."
In the trading room, numerous complaints also started to sound at this time.
Manager Lin noticed Su Yi's gaze, came back to his senses, and smiled somewhat helplessly, saying,
"Congratulations. Luck is on your side once again."
In less than a week.
Su Yi used 150,000 in principal to leverage over 2.5 million in profit on stock index futures contracts.
If he hadn't seen all of this with his own eyes, he would never have believed it.
"Thank you,"
Su Yi said with a smile.
"The market plunged unilaterally at the close. You had a chance to reduce your positions, why didn't you?"
Manager Lin said,
"In the stock market, there's a saying, 'profits and losses stem from the same source,' you know? As long as the basic logic of the bull market remains, then avoiding a correction might also mean avoiding a rally. Such violent sell-off and correction trends like today also appeared in April, but didn't the index ultimately reach new highs?"
Despite an intraday loss exceeding 6.3 million.
He still remained full of confidence in the market's subsequent trend.
"Profits and losses stem from the same source..."
Su Yi pondered for a moment and replied,
"That makes sense. In general, everyone has always only been able to earn money within their scope of understanding."
Manager Lin nodded and was about to say something else when his phone suddenly rang.
He then glanced at the caller ID, smiled and greeted Su Yi, then walked out of the trading room while answering the phone.
After the other party left.
Su Yi sent a message to Chen Anya, indicating that he would continue to use the leveraged account, then also got up and left the trading room.
Chen Anya, busy in the company's business department office, saw the message Su Yi sent her, quickly replied with a 'Got it', then reported the account, and continued to make phone calls from her desk.
From 2 PM until now.
She had been constantly calling to urge customers whose leveraged trading accounts, from the deals she signed, were already within the liquidation warning line, to either add margin or close positions to stop losses as soon as possible, to prevent these customer-operated accounts from eventually hitting the forced liquidation line and being forcibly liquidated directly by the company's internal system.
Similarly, at this moment, in Yinghui Finance Company's trading account data risk control center.
A group of risk control officers were also busy identifying the risky trading accounts screened out by the system.
After this brutal intraday plunge.
The number of leveraged trading accounts lent out by Yinghui Finance Company that had hit the liquidation warning line had rapidly surged to over 100, and the number of accounts liquidated or with negative equity intraday had reached 21, which brought immense work pressure to the entire risk control department.
Of course, at this moment, it wasn't just Yinghui Finance, an over-the-counter leveraged trading institution, that saw a large number of leveraged trading accounts hitting the warning line, or even the forced liquidation line.
Among the hundreds of over-the-counter leveraged trading institutions in the entire financial city.
Other leveraged trading institutions also experienced the same situation.
In these leveraged trading institutions, a large number of over-the-counter leveraged trading accounts, due to some investors' excessive greed and aggressive operations, had already hit the forced liquidation line today and were forcibly liquidated by the institutions.
This was also the fundamental reason for the unilateral plunge observed in both indices and individual stocks during the market's closing stage.
Furthermore, as more and more over-the-counter leveraged trading accounts hit the forced liquidation warning line amidst the market plunge, the subsequent risk of market collapse has not been alleviated by today's plunge, but has instead become increasingly severe.
(End of chapter)
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