Chapter 110 [Luring the enemy to go deep (2900 months)
As early as the middle to late last year, it had aroused the idea of the management. Since November last year, the management has blocked multiple channels through a multi-pronged approach to divert funds from the onshore market to the offshore market.
.
On November 19 last year, there were news reports that the central bank instructed some domestic banks to suspend cross-border financing to RMB accounts of offshore banks. Soon after, the domestic bond repurchase transactions of offshore RMB clearing banks were also suspended.
In December last year, the central bank's window guidance suspended the related business of institutions applying for new RQDII, that is, the business of RMB qualified domestic institutional investors.
In addition, the cross-border business of individual foreign banks and the domestic foreign exchange business of participating banks have been suspended. The suspended foreign exchange business includes spot closing, etc.
To put it bluntly, since November last year, the central bank has already launched a smokeless currency war with international short-selling institutions.
However, it was only a tentative confrontation, and the central bank took the lead in taking a defensive stance and only closed some circulation channels for international hot money.
However, these measures did not have much substantial impact on the trend of the RMB. Under the impact of international hot money, the offshore RMB has continued to fall since November last year, falling from 6.32 to 6.42 per U.S. dollar.
Then in mid-December, when the Federal Reserve announced to raise interest rates, another round of sharp declines occurred, barely stabilizing at the level of 6.56. No matter how you look at it, it seems that the central bank cannot withstand it, and the RMB will soon become the target of international short sellers.
Serve with minced meat.
This made them so happy that they didn't think about it at all. This was a good show played by Yang Ma for them to "lure the enemy deep and try to catch them".
Entering the first trading day of the new year, which happened yesterday, the international short-selling institutions stepped up their offensive on the first trading day of the new year. In their eyes, victory is within reach and they cannot help but
Crazy with excitement.
Yesterday, the RMB exchange rate in the offshore market fell directly below the 6.6 mark from 6.5673 the previous day, and closed at 6.6272 yesterday, depreciating 600 basis points throughout the day.
And today, January 5, at this moment, the depreciation is still continuing.
Lu Ming didn't care about his opponents' wanton short selling and directly let his traders go long crazy. This wave must smash the heads of international short sellers and pierce their anus!
…
On January 6, the RMB exchange rate in the offshore market depreciated again by 700 basis points, falling sharply to 6.7316 during the session. Today, Lu Ming commanded the traders under his command to complete the second long task of 10 billion US dollars.
.
On January 7, the offshore exchange rate depreciated to a maximum of 6.7585. International short sellers were already excited and had goosebumps, hoping that the RMB would fall sharply.
What makes them very excited is that Big A's circuit breaker broke again today, and it broke when the circuit breaker mechanism was activated on the first day of the new year.
Today, the big A main board jumped short and opened low, and then continued to vent wildly.
The first-level circuit breaker was triggered less than fifteen minutes after the market opened. After trading resumed 15 minutes later, it continued to plunge further. This time, it only lasted three minutes and the second shot was paid, triggering the second-level circuit breaker. Nearly 1,500 stocks in the two cities fell to the limit.
This is the posture of planning to dive below 3000 points.
Big A leaves work early at 10 o'clock in the morning.
Lu Ming, who is in Hong Kong, is also paying attention to the situation in the domestic capital market. He knows that if nothing unexpected happens, the management will stop the circuit breaker mechanism tomorrow, and this circuit breaker operation imitating the old and American circuit breaker operation makes everyone confused and even feels uncomfortable.
The second one didn't work, and mainland investors were scolded.
The management encourages various funds to increase their holdings of blue chips, but very few respond. Big blue chips have already fallen to the floor price. Sooner or later, these core assets will rise and reach new highs, but...
No one listened, no one believed, and few understood it.
Just kept scolding.
The management cannot be too straightforward. The bloodthirsty capital has already raised the sickle of harvest. How can it be said clearly and clearly? Encouraging the increase in holdings of blue chip stocks is already a huge amount of information.
Only by holding down the stock market first and releasing risks can we go all out to concentrate our firepower on attacking the enemy, so as not to fall into a two-front battle and ignore both ends.
Today, Lu Ming went long again for the third hundred US dollars. After completion, he only had 20 billion US dollars left in his hand. He will do it all tomorrow and Friday. Tomorrow will be a fever pitch.
At this moment, the traders in the trading room are continuing to go long, and continue to use up the remaining funds of today's target bullets.
Lu Ming looked at the trend of the offshore RMB exchange rate on the screen and couldn't help but said to himself with emotion: "Niubi, the exchange rate difference between the onshore market and the offshore market exceeds 2,000 basis points. I can't help but want to short arbitrage."
.”
What is the concept of an exchange difference of 2,000 basis points?
Suppose, regardless of cost, international short-selling institutions first exchange 1 US dollar for RMB in the offshore market, and then exchange the RMB held in the onshore market for US dollars.
With such a simple change of hands, you can make a net profit of 0.2 yuan, and this is just the lowest level of play. The speculators on Wall Street will not do this. They are all experts in leveraging.
By adding leverage to various financial derivatives, you can leverage a leverage ratio of ten times or even dozens of times, so that you can earn a few yuan or more than a dozen yuan in profit with just one move of one dollar.
What huge profits? No wonder the international short sellers are so excited and crazy.
In addition, this is a T+0 transaction. Theoretically, repeated transactions can be carried out within a day. However, in terms of today's transaction efficiency, nearly two transactions can be completed within 1 second, and within 24 hours,
Theoretically, the transaction frequency that can be created can reach a terrifying 170,000 times. What about two accounts? What about three accounts? What about N accounts?
The huge arbitrage space brought about by such exchange differences makes all kinds of international hot money go crazy.
There is another operation that is to go short directly, and the price difference in the middle is the profit.
A major feature of the financial market is that once a positive feedback is formed, more speculative capital will enter the market to jointly promote this feedback, thereby accelerating a certain trend.
This is also reflected in stocks. A stock rises slowly at first, and then suddenly becomes popular. More people know about it, and the subsequent rise accelerates because the funds coming in to do long positions are soaring.
Similarly, this kind of positive feedback can also be found in the subscription of Tiansheng Value Growth Hybrid Fund, and the current subscription scale is constantly accelerating.
The same goes for Big A’s mad bull market in the first half of the year. Hundreds of millions of speculative funds worked together to push the index to over 5,000 points easily. If the country does not dismantle leverage, it will definitely push you to 10,000 taels in the second half of the year.
A thousand points doesn't matter.
In the same way, the decline forms a synergistic force. The rising mad bull market in the first half of the year was the result of the accelerated acceleration of the bulls, while the flash crash in the second half of the year was the result of the joint efforts of the short sellers.
The same goes for the current foreign exchange market. Most people believe that the RMB will continue to depreciate, which will drive more speculative funds to short the RMB and accelerate depreciation.
Since November last year, the trading volume of RMB has begun to rise rapidly, and funds are also flowing out of the country rapidly. Some of the domestic capital must have entered the speculative market, acting as an accomplice and participating in short selling with international short-selling institutions.
After all, huge short-selling arbitrage is too tempting. In the face of huge interests, there will always be a group of people who ignore justice.
…
(Ps: Board 21, are you staging an epic short squeeze... [Foaming at the mouth.jpg])
