"Oh, it's over..."
A helpless sigh also rang out at this moment.
Su Yi heard the sound, briefly shifted his gaze from the market boards of the two cities, and looked around, only to see that almost all other margin trading clients in the trading room had very grim expressions on their faces.
Several trading clients were even staring blankly at their computer screens, their faces already pale.
Even General Manager Lin next to him.
At this moment, seeing his own holding account losing over 1.6 million yuan right at market open, he had completely lost his temper, his eyes filled with utter disappointment, not even wanting to utter a single curse.
Amidst everyone's silence, an even more panicked selling force was brewing.
Therefore, when the brief 5-minute trading halt passed, the market officially entered the continuous auction trading session after 9:30 AM.
The entire Shanghai and Shenzhen markets, with almost no rebound, were completely suppressed by a massive volume of panic selling.
At 9:40 AM, in just ten minutes, the Shanghai Composite Index's decline widened to over 2.5%.
At 9:50 AM, the Shanghai Composite Index's decline reached 3%, and the two markets once again plunged into a unilateral nosedive, with over 300 stocks hitting their daily limit down across the entire market.
At 10:00 AM, the Shanghai Composite Index's decline continued to widen, and many stocks in both markets had already begun to experience liquidity crises.
Thereafter, the sharp decline intensified with time.
By around 11:00 AM, the Shanghai Composite Index's decline had expanded to over 4%, nearing 4200 points.
At the same time, the main contract of the CSI 500 Index Futures had plummeted by as much as 5%, with over 500 stocks hitting their daily limit down in both markets.
The severity of the situation surpassed that of last Friday.
General Manager Lin saw the market completely collapse, with the liquidity of countless stocks rapidly disappearing.
Furthermore, his core holdings, 'LeEco' and 'East Money Information', were rapidly heading towards their daily limit down.
He finally could no longer sit still and reluctantly followed the trend, selling off a large portion of his chips.
At the same time, other margin trading clients in the trading room.
As long as they hadn't been forced liquidated yet, they also blindly followed the trend and cut their positions, dominated by panic.
Under the effect of extreme panic selling, around 11:20 AM, the Shanghai Composite Index's decline approached 5%, while Su Yi's holding in the main contract of the CSI 500 Index Futures broke through the 6.50% decline level, plummeting 650 points in half a day.
Su Yi watched as his operated account showed an unrealized gain of 7.12 million yuan.
A strong desire to take profit finally surged in his heart.
However, he was not in a hurry to close his position and take profit.
Instead, he suppressed this desire, wanting to wait for this wave of extreme panic to fully vent, or for a clearer profit-taking closing trade point to arrive.
At 11:22 AM, 'LeEco' hit its daily limit down.
At this point, General Manager Lin, who had violently dumped most of his 'LeEco' chips, finally breathed a sigh of relief.
Although his account loss had reached over 4 million yuan in this half-day, successfully reducing most of his holdings in this stock before his heavily invested stock hit its daily limit down was a stroke of luck in misfortune.
Of course, focusing on selling 'LeEco' chips.
For the two stocks 'East Money Information' and 'Ping An Insurance', he didn't have time to reduce many chips.
Fortunately, the market decline for these two heavily invested stocks was not as severe as 'LeEco', and their market liquidity was also higher.
If he disregarded the losses, he could calmly reduce his positions in time.
As he was considering whether to continue dumping chips from these two heavily invested stocks.
The market had already reached its midday close.
Facing the exceptionally dismal midday closing results, all investors participating in market trading were wailing.
Among the wails, the hardest hit were the countless investors in on-exchange margin trading and off-exchange margin financing.
In just half a day, market investors, on average, lost 40,000 yuan again.
And it almost caused a situation where a thousand stocks hit their daily limit down again.
Beyond the countless almost desperate complaints and curses from the investor community, there was the incessant sound of numerous brokerage firms and off-exchange margin financing agency salespeople calling their margin trading clients.
Without exception...
In the business departments of brokerage firms and off-exchange margin financing agencies.
What rang out were all calls regarding demands for margin clients to add collateral, or reminders that client trading accounts had reached warning lines, or even forced liquidation lines.
Along with the continuous market crash.
An astronomical amount of wealth was evaporating, and the brutal destruction of wealth was escalating.
Moreover, more seriously, the market's liquidity crisis had begun to fully emerge, with countless on-market bulls collectively collapsing and rapidly forming a stampede where longs killed other longs.
If this situation is not curbed.
It will subsequently face continuous stampede-like systemic financial risks.
Fortunately... as extreme market panic soared like a rocket, and as countless investors who suffered huge losses or even forced liquidations vented their towering rage.
Regulators finally began to realize the market's fragility and the gradually emerging liquidity crisis.
Consequently, an emergency internal meeting was held at midday.
Subsequently, before the market officially opened in the afternoon, the positive news that should have arrived during the Dragon Boat Festival holiday finally came late.
According to the positive news urgently released by regulators, the regulatory body not only relaxed the time for forced withdrawal and liquidation of 'off-exchange margin financing' cleanup but also stipulated that major brokerage firms are allowed to lower the forced liquidation conditions for margin trading accounts, which is equivalent to modifying the forced liquidation lines for internal margin accounts.
As soon as this positive news was released...
When the market opened in the afternoon, the entire market instantly reversed, and countless stocks that had been suppressed by margin selling violently surged upwards.
Su Yi saw that the bearish dark clouds suppressing the market had been cleared, and panic selling had temporarily vented in the extreme two-day continuous decline.
He knew that bulls would take advantage of this opportunity to frantically cover their positions.
Therefore, he decisively closed his position of 20 lots of CSI 500 Index Futures main contracts.
He harvested a total profit of 7.01 million yuan, completing this trade.
After he closed his position to take profit, both the Shanghai Composite Index and the CSI 500 Index violently surged upwards.
Among them, 'LeEco', which General Manager Lin had just sold off most of his holdings in the morning, instantly opened from its daily limit down in the afternoon and rebounded sharply.
Even after 2:00 PM.
As the Shanghai Composite Index and CSI 500 Index recovered most of their intraday losses.
The stock 'LeEco' even turned positive.
General Manager Lin did not promptly cover his position in 'LeEco' in the afternoon.
At this moment, seeing his heavily invested stock, which he had sold at its daily limit down, reverse its trend and successfully turn positive, he was so angry that he almost ground his molars to dust.
The market experienced a deep V-shaped reversal.
It caused him to lose nearly half of his position at the lowest point during the most panicked trading.
This meant that when the market continuously crashed, he suffered full-position losses, but when it surged, he could only recover half, feeling indescribably awful.
Especially when he glanced over and saw Su Yi successfully take profit precisely at the lowest point, violently reaping 7 million yuan in profit from a single trade.
He was even more furious, wanting to spit blood, feeling even worse than the huge losses he incurred in the morning.
(End of Chapter)
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