At the same time, the long week finally came to an end. The Hang Seng Index fell 456 points in five days, falling every day with no sign of bottoming out.
For investors, this is a painful week. Fortunately, it is coming to an end and we have two days of rest.
Although Hong Kong is a free financial market, the Hong Kong Stock Exchange also adopts the T+0 long and short hedging trading method.
In addition to being long on stocks, investors can also stop losses in time and change from long to short.
However, the Hang Seng Index fell without any warning, and it suddenly jumped short every day at the opening. In the past few years, it has been in a bullish trend. They did not dare and were reluctant to cut their losses.
Moreover, every day the market jumped right after the market opened, and the priority trading system for large funds also made them unable to react quickly. When they were able to trade, they suffered too much loss.
If they lose too much, they are reluctant to cut their losses. They are hoping for a short-term rebound so that they can take the opportunity to sell and get back a little bit of their principal as much as possible.
The rebound did not come, but further losses followed, thus falling into a vicious cycle.
A market where you can go short and go long at any time is only good for financial institutions and not good for most retail investors. Because of poor information and non-professionalism, they cannot hedge risks like big funds, and most of them just choose to go long blindly.
Investors can only pin their hopes on next Monday. They hope that the stock index has fallen too sharply this week and the main players have no way to recover. They are ready to wait for the new week.
After two quiet and peaceful days with no transactions, a new Monday ushered in in a blink of an eye.
The Hang Seng Index gapped -1.2% at the opening, falling 52 points and instantly breaking through the 4,000-point mark.
The stock investors have become numb and can only cover their positions, cut off their stocks, or smash the pots and smash them, and vow to never play stocks again in the future.
A mood of despair gradually permeated the entire market. The most obvious feature was that the trading volume on Monday morning shrank to an extremely exaggerated level.
Hong Kong stocks with a total value of RMB 12,000 before last week had a daily trading volume of at least RMB 100 billion.
However, in the new week, in the past two hours, the trading volume of the entire market was only HK$12.8 billion.
Everything seems to be announcing to the world that the three-year bull market in Xiangjiang is over and a new round of bear market is coming.
Financial market transactions shrank and banks raised interest rates again.
Countless people are pessimistic about Xiaobawang, which will be listed next week. If the financial market environment is not good, even Zheng Yaoyang may not be able to save it.
They no longer expect the listed stock price to double. They only hope to earn a dozen points and be satisfied.
As time goes by, news gradually spreads in Hong Kong that the Hang Seng Index will plummet all because of Zheng Yaoyang, who should not be the agent for the listing of mainland companies.
Things in the world are not so coincidental. The bull market in Xiangjiang lasted for several years, and even the financial crisis in Tokyo and the Gulf War did not affect them.
Why the bull market ended and the bear market ushered in was all because Fuxing acted as an agent for mainland companies to list in Hong Kong.
Although there seems to be no causal relationship between the two, the plummeting financial market and investors who have lost money need to find a channel to vent their emotions.
In the past few days, Stephen has been paying attention to the market transaction details every day, and he couldn't help but show a trace of confusion in his eyes: "Have you given up? Why haven't you taken the move yet?"
Wells couldn't help but ask: "President Stephen, I think Zheng Yaoyang has made his choice."
In the past few days, they have shorted the Hang Seng Index. They used banks to sell the stocks they held and did not short the index.
The main reason is that their original intention is to consume Fuxing Bank's funds, rather than ruin the market. After all, they still want to rely on this market to make money in the future.
However, those greedy international speculators do not care about the life and death of the Hang Seng Index. While they are shorting, they are frantically shorting the Hang Seng Index.
It can be said that the profits gained by speculators are sucking the blood of HSBC. In just three days, the floating losses on their accounts reached 2.3 billion Hong Kong dollars.
If Zheng Yaoyang does not fall into the trap, they must make an early decision and build a position at a low position to hedge risks. Otherwise, they will suffer too much loss and it will be difficult to explain to the headquarters at the end of the year.
Stephen said coldly: "Manager Wells, you just need to do your job well."
Wells looked ugly, but he dared not speak out in anger.
On the other side, Zheng Yaoyang, who had just had lunch, came to the stock operation room of Fuxing Building.
In addition to him, thirty traders will stay in seclusion here for more than a week until the bully comes on the market and quells the threat posed by HSBC.
"After waiting for a week, it's time for us to take action."
Before the afternoon session started, Zheng Yaoyang made two calls to Nicks of Barings Bank and President Wu of Bank of China to inform them that they could enter the market.
When afternoon trading began, the first amount of funds amounted to HK$5 billion, directly entering the Hang Seng Index.
Funds entered the market in a violent way to buy goods. The Hang Seng Index, which had been dormant for a week, finally recovered. The pointer of the K-line chart moved upward, starting to stage a drama of a dragon raising its head.
His rough approach to entering the market and his generous use of funds were very characteristic of Zheng Yaoyang's personal style, which instantly attracted the attention of HSBC Bank.
When Stephen heard the news, he looked at the transaction details on the screen with a smile on his face: "Zheng Yaoyang is here after all, and Wells is increasing the selling of stocks."
Wells responded, but a look of disappointment flashed across his eyes.
He actually wanted to call Zheng Yaoyang to tell him not to fall into Stephen's trick. He just wanted to drain Fuxing Bank's funds and attack the listed bully.
However, their communication tools have been confiscated long ago. Now they can only hope that Zheng Yaoyang will stop a little and reserve some funds to wait for the listing of Xiaobawang.
Otherwise, when Little Overlord is released, Zheng Yaoyang's undefeated golden body will be broken.
Only five minutes after the midday session of the Hang Seng Index started, many investors were surprised to find that although the market index did not rise much, the trading volume surged in a short period of time. This also means that the market has begun to recover and there may be market trends in the afternoon.
A sum of funds worth hundreds of thousands or even millions can only be called a small amount, while more often the transaction amount is tens of millions.
Countless people rushed to tell each other, and there were waves of howling ghosts and wolves in the trading hall of the Hong Kong Stock Exchange.
Even the investors who were already standing on the rooftop took back their steps into the abyss after learning the news and returned to the trading floor to watch the battle.
Finance is a war without smoke. Only those who are familiar with the trading rules can understand the meaning of red and green numbers.
“HSBC!”
“It must be HSBC!”
"The people who shorted our Hang Seng Index last week are definitely HSBC, the white-eyed wolf, the bully, and the street boy."
In the past week, HSBC has been lurking in the dark and quietly shorting. There is no counterparty in the market. With the amount of funds they hold, others cannot see their strength.
However, since Zheng Yaoyang faced off, a huge torrent of funds entered the market instantly, and people can clearly see through the numbers the strength of both sides in the long-short game.
There are 598 stocks in the entire Hang Seng Index, 200 of which are the main battlefields of the long-short game. The scale involved makes onlookers stunned.
They also know the identity of one of the parties. After all, only HSBC, Standard Chartered, and Bank of China have such strength in Xiangjiang. Zheng Yaoyang's Fuxing also has strength, but they do not have enough chips to short the market.
If combined with the previous rumors that the bull market has turned into a bear market, it is obvious that HSBC is shorting the Hang Seng Index.
According to this idea, the person currently competing with HSBC may be Fuxing's Zheng Yaoyang.