Faced with everyone's doubts, Liang Ying nodded and continued to explain: "Since Snow Leopard Capital was blown up yesterday, the short side has completely lost. But this time the short side's position is too large, and the short position has exceeded 150%.
In theory, these short stocks are all borrowed and will eventually need to be repaid. And when the market is doing well, no one will sell the stocks at all. The result of repeated rises in stock prices is that all short positions will be liquidated.
, short sellers will be forced to close their positions and instead buy stocks at a high price..."
"Haha, it's so exciting. This ending is really enjoyable."
"By the way, what about those market makers you mentioned?"
At this time, Zhong Pengcheng spoke: "Market makers are a kind of licensed traders. They use their own funds and securities to conduct securities transactions with investors. In this way, buyers and sellers do not need to wait for counterparties to appear, as long as a market maker comes forward to bear the responsibility
The counterparty can complete the transaction. This time the short side is largely the stock sold by the market maker."
Liang Ying: "Yes, but the amount sold by the short side was too huge, and in the end even these market makers couldn't afford it. Because the fund liquidated its position, the excess losses would also fall on the market makers. And the market makers
If you don’t have enough stocks in hand, you are forced to buy stocks at a high price, which will force short sellers to continue buying back stocks at a high price to close their positions.”
Cao An said excitedly: "Wow, it seems very profound, but I still understand it. The current situation is that short sellers have to buy stocks at high prices in order to close their positions. This is simply the same as stabbing oneself with a knife or swinging a knife into the palace. And doing so
Market makers are forced to join the battle because they don't have enough stocks in hand. The addition of market makers will force short sellers to increase their efforts to buy back stocks at high prices to close their positions. If this continues, it seems to form an endless cycle..."
Nangong Ming looked at Cao An with approval and said: "Cao An said it very intuitively. Judging from the current situation, this endless cycle has already been formed, so today is destined to be the death day of the short side."
Nangong Ming hit the nail on the head, the stock market on Thursday was simply a nightmare for the short side. The long side was like a combine harvester, mercilessly harvesting the profit space of the short side.
But the short side's camp was in chaos and was defeated. Everyone was forced to buy stocks to close their positions, but there was no stock to buy in the market, and even the former "allies" turned against themselves one after another.
The stock market started. Everyone started biting each other like jealous enemies.
You want to rob me, right? Okay, I'll offer you a higher price. You're going to lose anyway, so I don't care about this. What if you're not afraid of losing money? I don't even want my life...
By the close of trading, the short sellers were bleeding into rivers and corpses were everywhere. Xunying's stock price rose by a historic 160%, and the price exceeded 515 yuan.
The world was once again excited. Amid the joy, those short-selling institutions sadly left the market.
A short-side investor said sadly after the market closed: "We have suffered heavy losses in the past few days. The money we put in the day before was gone overnight. You can't understand this feeling."
Snow Leopard Capital lost more than 4.7 billion yuan, Bandit Fund lost 6 billion yuan and is also facing the fate of bankruptcy. WB Hedge Fund lost 3.5 billion yuan and announced it will close for liquidation from now on. Wegers Hedge Fund lost 3.9 billion yuan.
Fortis Asset and the supporting institutions behind it lost 7 billion yuan. The giant financial institution that joined later saw the situation was not right and immediately defected, recovering some losses, and finally lost 1.7 billion yuan. Several major institutions on the surface lost money this time.
In the battle, losses amounted to 26.8 billion yuan.
Another U.S. financial report said: In this Xunying war, some foreign funds also joined the ranks of short sellers, including some funds from China that were completely lost in this war. The total loss of the short side is expected
So far it has reached 80 billion yuan.
At this time, some market makers also began to come forward and accuse the short sellers of being too aggressive. The CEO of a securities company said on a program: The short sellers have done too hard this time. They have dumped such a big pot on us.
There is no way to take it! But if everyone goes bankrupt, it will destroy the stability of the entire financial system. The final meaning is that the government should come out and take charge.
What was unexpected was that this news did not bring joy to Bai Shuo and the others. On the contrary, facing the huge victory, everyone fell into a heated debate.
The focus of the debate mainly revolves around subsequent operational issues.
Just when Liang Ying, William and others suggested that they could slowly close their positions and cash in profits on Friday, Nangong Ming suddenly put forward a different opinion.
Nangong Ming believes that this Xunying incident is a once-in-a-lifetime opportunity. Not only should we not rush to close our positions, but we should continue to push up the stock price and blow up all the remaining airdrop institutions and market makers. If we can manage to close our positions again, we should continue to push up the stock price.
The whole incident continues to develop in a bad direction, causing these financial institutions and market makers to collapse one by one. It is very likely that it will eventually develop from a single point to a systemic risk and become a systemic risk.
Nangong Ming's words shocked everyone deeply. The essence of this proposal has nothing to do with interests and has risen to another level.
Bai Shuo looked at Nangong Ming blankly and asked, "Uncle Ming, what do you want to do?"
Nangong Min seemed unable to conceal his inner excitement. He looked at Bai Shuo expectantly and said, "Just imagine, the impact of the subprime mortgage crisis has not yet been fully recovered. If another crisis breaks out at this time, it will be fatal to their fragile financial system."
A blow, what will be the result?"
Liang Ying was the first to stand up and express his opposition: First, he believed that the power of many parties has been exhausted. In the future, more and more parties will make profits and withdraw. If they persist, they are likely to become the last takeover, and then the early victory will be
All previous efforts are wasted.
Second, I feel that the U.S. government will not sit idly by and allow the situation to develop like this. If the outcome of this battle will eventually affect the security of the entire financial system, then the forces behind it will definitely go all out to safeguard their own interests.
The third is that the short side will definitely make a desperate struggle. Although it is not clear for the time being what means the other side will use, it is certain that the short side will do anything to save their lives.
Liang Ying's words resonated with everyone. Brother Xiao Ma also believed that the subprime mortgage crisis had just passed, many risks had been released, and there was insufficient support to brew a new round of crisis. From the perspective of the power of long and short, it is currently not
It is not suitable for such a huge battle.
Qiangzi hesitated and said again and again that he was just a businessman, focusing on the development of his career, and believed that the current results were already very good.
Of course, due to Nangong Ming's impassioned speeches and arguments, many people agreed with this proposal. Cao An was a staunch supporter and felt that since he had the opportunity, he must seize it and be able to lead and experience it in his lifetime.
There would be no regrets in a war like this.
In addition, Zhuzi and Xiao Lin also expressed their agreement.
Zhong Pengcheng felt that the situation was unclear and maintained a neutral stance, while Anna did not express any opinions at all.
After more than an hour of debate, a unified opinion could not be formed in the end. Finally, Nangong Ming looked at Bai Shuo, wanting to hear what Bai Shuo thought.
Bai Shuo felt very embarrassed and looked back and forth at Nangong Ming and Liang Ying, who were unable to make a decision.
"Shuo'er, you don't need to consider our thoughts, just follow your heart and tell your truest thoughts." Nangong Ming said.
Bai Shuo nodded, thought seriously for a while and then slowly said to Nangong Ming: "Uncle Ming, I don't think we are strong enough to fight against a country or the entire financial system on our own."
Nangong Ming was stunned for a moment, and then said loudly: "How can it be done by oneself? Take advantage of the situation, isn't it now..."
Just halfway through speaking, Nangong Ming suddenly calmed down, looked at everyone blankly, shook his head and changed his tone and said: "Forget it, I respect everyone's opinions, just follow your ideas, I should go back
rest."
After saying that, Nangong Ming walked out of the room with some staggering steps.
Watching Nangong Ming leave, Bai Shuo suddenly felt a little guilty and said to himself: "Hey... Uncle Ming doesn't think I'm like Wang Zhongtian, who shrinks from battle, right?"
Cao An said: "Brother Shuo, although I also support Uncle Ming, I know that you are not someone who shrinks from battle. I think Uncle Ming also understands."
Liang Ying patted Bai Shuo on the shoulder: "I understand Uncle Ming. He has been waiting for so many years and wants to win so much. Your choice is rational and correct. I think Uncle Ming will figure it out."
Bai Shuo smiled bitterly and said: "When this matter is over, I will go and have a good talk with Uncle Ming."
At this time, William's voice came from the intercom: "Boss, I see that Uncle Ming has left. Have you already discussed today's strategy?"
Everyone looked at Bai Shuo in unison. Bai Shuo thought for a moment and said into the intercom: "William, we have decided to close the position and exit today. You also inform Andre, Weilun, and the Fuxing Gang.
Over there, let’s all act together.”
"Okay, boss, I know what to do."
The strategy was decided and the atmosphere in the room began to become lively again.
Zhuzi suddenly thought of something again and asked curiously: "The news said that the short side's losses this time included a lot of funds from China. Does this refer to Xie Ning?"
Liang Ying thought for a moment and said: "Even if it's not all about him, he must have made a considerable contribution."
When Cao An heard this, he immediately became excited: "Haha, after this kid passed by this time, let's see if he can calm down a little bit."
Bai Shuo: "I hope so. If this fly doesn't circle around us anymore, I won't bother to argue with him."
Liang Ying smiled slyly and said, "I really want him to stop completely. I think maybe we should give him some more strong medicine."
"Oh! What do you mean?" Bai Shuo wondered.
Liang Ying: "I think Xie Ning must be in a hurry to buy stocks to close his position. How about we help him?"
Bai Shuo suddenly realized: "Haha, you, Mr. Liang, are really ruthless in deceiving people. You want to make Xie Ning lose all his money."