Manager Deng watched the market where hundreds of stocks hit their daily limit at open, and the Shanghai Composite Index, which opened down to 2.56%, losing the 4400-point mark.
His entire expression was bewildered again.
Similarly, the other major investors in the VIP trading room at this moment were also dumbfounded, completely unable to understand what this panic-stricken low-opening market was up to.
Only Su Yi sat in front of the computer in the trading room, gazing at the plummeting opening of the two markets.
He still maintained relative calmness.
"It seems the market has become a scared bird,"
Su Yi murmured to himself, staring at the China Securities 500 Index Futures main contract, which plunged 3.22% at open, and the 20 main contract short positions in his holding account, which had expanded to 3 million in profit.
Instead of making an immediate profit-taking closure, he continued to add 10 more main short sell orders near the opening price of 9570 points for the China Securities 500 Index Futures main contract.
Manager Deng sat beside Su Yi, saw his crazy actions, and with a tremor in his heart, said,
"It opened down so much, and you're still shorting the index?"
Su Yi replied with a smile,
"Strike while the iron is hot."
"You're too... greedy,"
Manager Deng glanced at Su Yi, always feeling that the other party was like a mad gambler.
His holding account had suffered a massive loss of 420,000 at market open.
Originally, he had also considered following Su Yi's lead and shorting two lots of index futures to hedge his stock account losses.
But at this moment, seeing Su Yi's crazy actions and the excessively low-opening Shanghai Composite Index, he pondered for a moment and then hesitated again.
After all, the profit and loss fluctuations of index futures are much more ferocious than stocks.
What if the entry direction was wrong, and the Shanghai Composite Index fully rebounded after the official opening?
Then he would be giving money away to the market for nothing, and it would seriously hinder the recovery of his stock account.
As he hesitated, the time had already reached 9:30 AM, and the two markets officially entered continuous auction trading.
Just as the stagnant market started to move, Su Yi's 10 short sell orders for the China Securities 500 Index Futures main contract were instantly executed.
Subsequently, the Shanghai Composite Index and the China Securities 500 Index quickly rebounded, and their declines rapidly narrowed.
Manager Deng saw that the Shanghai Composite Index narrowed its decline to within 2% in just one or two minutes, returning above the 4400-point level.
At the same time, the loss in his holding account also narrowed to around 300,000, and he was secretly glad that he hadn't rashly followed suit to short index futures.
At this moment...
However, several popular heavyweight stocks in the market suddenly plunged again.
Immediately afterward, massive active sell orders, influenced by these popular heavyweight stocks that were plunging straight down, swept through almost all stocks in the entire market like a hurricane.
Thus, in an instant.
The Shanghai Composite Index, which had opened low and rebounded, was cut off by this 'hurricane' and turned to continue heading downwards.
And in less than 5 minutes, the Shanghai Composite Index broke through its opening level, easily shattering the strong support level of 4400 points that everyone had believed in.
The breaking of the 4400-point mark again.
Also caused long investors, who had originally held hopes for a rebound, to see their long confidence collapse instantly.
Thus, without the support of long confidence, the market's panic selling sentiment began to intensify as trading time progressed.
At 10:00 AM, the Shanghai Composite Index's decline reached 3%.
At 10:20 AM, the Shanghai Composite Index's decline continued to expand to 3.5%, with the ChiNext Index plummeting to 4.21%, and the China Securities 500 Index's decline also surging to over 4.2%.
At 10:50 AM, heavyweight financial stocks collapsed, and the Shanghai Composite Index's decline broke through 4%.
By this time, over 500 stocks in the two markets had already hit their daily limit, and the ChiNext Index's decline had expanded to about 5%.
And in the entire VIP trading room where Su Yi was.
All the major investors holding positions stared at the two markets, which were already in a unilateral plummeting mode, and their eyes, besides incomprehension, were also filled with panic.
Among them, Manager Deng, who was beside Su Yi.
At this moment, his account's intraday loss had reached over 600,000, and two of his held stocks were already heading towards the daily limit.
"How could this happen, how could this happen?"
Watching his account losses continuously expand, Manager Deng muttered to himself while quickly cutting losses and selling off shares.
"Longs have started trampling each other,"
Su Yi said with a smile, looking at the unrealized profit in his holding account, which had expanded to over 4.2 million.
"It's still an issue of leveraged capital. Once margin trading loosens and a stampede begins, the outcome is predictable. In this storm, no long investor in the market can escape unscathed."
No sooner had he finished speaking.
The only stock in Manager Deng's portfolio that had not yet hit its daily limit also sealed at the daily limit at this moment.
"Sigh..."
Manager Deng saw that he couldn't even sell his shares when they hit the daily limit, and his heart instantly grew anxious.
Almost subconsciously, he asked Su Yi,
"Do you think it's still possible to short index futures to hedge at this moment?"
Consecutive sharp drops.
Made his belief in a bull market begin to collapse.
At the same time, he finally realized that Su Yi's heavy shorting of index futures was not due to luck, but rather because he truly perceived the enormous risks in the market, and was profiting based on his skill.
"I don't know about that,"
Su Yi replied.
"If you think it's still possible, then it is."
Manager Deng thought back to how his momentary hesitation right after the market opened had led to greater intraday losses.
So, he gritted his teeth, hardened his resolve, and decisively switched accounts, quickly injecting 1 million into his infrequently used index futures account.
Before the market closed at noon, he followed suit and shorted 2 lots of the China Securities 500 Index Futures main contract.
After the midday close.
The market, which had plummeted across the board, once again triggered fierce discussions among all investors.
Amidst these intense discussions, panic selling sentiment continued to ferment, permeating and enveloping the hearts of all market investors.
Then, under the influence of this panic.
More and more investors began to see their belief in a bull market collapse.
After that, when the market reopened in the afternoon, the longs had not even a shred of resistance and were directly crushed into a state of collapse by the massive amount of chips sold off regardless of cost.
Especially after 1:30 PM.
The market's long positions suffered a complete rout across the board.
Whether they were heavyweight blue-chip stocks or small-cap concept stocks, whether they were high-quality industry leaders or garbage stocks with extremely poor fundamentals.
Without exception, all of them lost liquidity and plunged towards their daily limits.
At 2:00 PM, super-heavyweights with hundreds of billions in market value like Huaxin Securities, China Ping An, China Railway Rolling Stock Corp. (CRRC)... all hit their daily limits.
At 2:15 PM, the ChiNext Index's intraday decline reached a staggering 8.11%.
And at this moment, almost all constituent stocks of the ChiNext Index had hit their daily limit.
Popular leading stocks that were heavily speculated in this bull market, such as Tonghuashun, Oriental Fortune, LeTV, Quantong Education, Yinjie Technology..., were all sealed at their daily limits.
At 2:30 PM, the Shanghai Composite Index's decline also reached 8%. Not only did it fail to hold 4400 points, but it also failed to hold 4300 points and 4200 points.
And with the Shanghai Composite Index hitting the 8% decline level, it essentially meant that the market had completely lost liquidity.
It also meant that, except for a few heavyweight bank stocks and some suspended stocks, all other stocks in the entire market had hit their daily limit.
This was not just 'thousands of stocks hitting their daily limit'; this was the broader market itself hitting its daily limit!
Facing such an extremely devastating historical market moment.
Across the entire network and market, the eyes of tens of millions, even hundreds of millions, of investors watching the market were completely filled with despair and fear.
At this moment, Su Yi couldn't help but look around.
He saw that the entire trading room at this moment was in a deathly silence, so quiet that you could almost hear a pin drop.
Everyone's eyes were fixed on the computer screens in front of them, their faces showing the numbness that comes after being baptized by panic, fear, and despair.
Before this, no one had imagined the market would fall so severely.
Therefore, almost none of the major investors in the entire trading room managed to liquidate all their positions and escape at the open.
Regardless of how many stocks these major investors held, whether they had margin financing or leverage?
Today, apart from Su Yi, who made huge profits by heavily shorting index futures.
The results for everyone else's holdings were very consistent... that is, their individual stocks were basically sealed at the daily limit, all suffering a critical hit of 10% intraday loss!
(End of chapter)
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