Chapter 112 [The short position burst (3100 months)
At the same time, An Yirou, who was also present in the trading room where Lu Ming was located, gradually became excited when she saw everyone staring at the trend chart on the screen. However, she still didn't quite understand, so she couldn't help but ask Lu Ming in a low voice.
: “Is a stronger Hi wave good for us?”
Hearing this, Lu Ming nodded with a smile, and immediately explained the logic to his little girlfriend: "As expected of the central government, she is a king when she takes action, awesome! The rise of Hi-Ren, for those speculative capitals that borrow RMB and then short-sell it,
It is absolutely a devastating blow. Because the increase in interest rates will cause their cost of borrowing RMB to rise sharply, and the increase in cost will immediately give up part of the profit margin, and they will pay interest every day."
Having said this, he came to the sofa in the lobby and sat down comfortably. Lu Ming crossed his legs and looked at the fluctuation trend of the main projection screen. He added: "The direct consequence of the compression of profit margins is that a relatively small number of
RMB short sellers will be the first to surrender, and they will definitely buy RMB from the market quickly to close their short RMB positions in order to prevent RMB financing costs from continuing to soar in the future market, which will bring more serious losses or even the risk of losing everything."
While Lu Ming was giving an on-the-spot lesson to his little girlfriend to answer her questions, he kept staring at the trend of offshore exchange rates shown on the poll. At this moment, he started to look up quickly. Lu Ming couldn't help but smile. This meant that Tiansheng Capital
Profits were soaring, and he continued:
"There are signs... Where did you just say that? Oh yes, when some short sellers start the pace of closing positions, once disagreements arise, they will soon destroy the short-selling consensus reached by various international short-seller capitals. In order not to be liquidated, they
You have to buy RMB to close your position, so this causes more investors to buy RMB, which in turn helps the RMB exchange rate to rise."
"And closing the short position is equivalent to going long in the RMB. Haha, in this way, the so-called unbreakable interest alliance collapsed in an instant. The management's move is really a big move. These robbers are all selfish.
They are profitable speculators. When the wind is blowing, everyone is willing to take the lead in the charge. When the wind is blowing, they are the first to run away. They will kill their fellow Taoists rather than the poor."
An Yirou nodded thoughtfully: "I see..."
At this moment, Qi Wei, who was in the lobby, stared at the market and couldn't help but said excitedly: "Mr. Lu, our floating profit has turned a profit! The offshore exchange rate is soaring, and it has appreciated significantly by 389 basis points. It is so strong.
The short squeeze trend!”
All the funds involved are top players. To put it bluntly, they are the best grassroots. Once there is any trouble that does not go as expected, they will just run away!
Once it is confirmed that the situation has reversed, he will run away even if he is cut off, and his decisiveness is outrageous.
One thing that is certain is that their reaction speed and sense of risk cannot be matched by retail investors. After all, there is an institutional team behind every short position.
My rabbit always makes decisions before taking action. At that time, the big A had already reached near 3000 points and was about to lie down below 3000 points.
At the same time, they blocked the circulation channels of speculative capital early, then found their positions in Xiangjiang, and then bought a large amount of RMB in a flash, which directly caused a shortage of RMB in the market. The sudden scarcity of RMB in the market caused a sharp rise. This is for short sellers.
It’s a nightmare, if it continues to rise, liquidation is the only result, and you will lose all your money.
I’m really panicking now!
At this moment, Lu Ming was buying the bottom and holding a large amount of RMB at the floor price. He was waiting for this moment. In order to close positions and shrink risks, short-selling institutions were grabbing RMB in the market, further pushing up the price.
Lu Ming has a lot of RMB in his hands, but he just can't close the position because interbank lending profits are soaring crazily. The reason behind it is not difficult to understand. It is that speculative capital from all walks of life rushes away and is willing to pay high prices to buy RMB flats.
If you change your position and take a loss, you are willing to pay a high price, and he is willing to pay a higher price. However, sellers in the market are scarce, and the result is that the price is getting higher and higher. This is the simple logic of supply and demand.
On Monday, January 11, as Zhongzi Bank seemed to evaporate in the market, short sellers were looking for RMB everywhere but could not get it, and they were as anxious as ants on a hot pot.
The offshore RMB exchange rate surged and appreciated by 846 basis points throughout the day, with the closing level reaching 6.6021. The onshore and offshore exchange rate difference, which originally exceeded 2,000 basis points, dropped sharply to around 400 basis points within one day today.
The arbitrage space has narrowed significantly.
And the entire short side began to enter a collective panic and started running fast mode!
These short-selling institutions are chasing the rise and the fall, and the retail investors of Big A call them experts. Once they confirm that they will cut off their profits, they will not hesitate at all costs.
Even if Lu Ming encounters this situation, he will not be an exception. As long as there is a reversal, he will be unambiguous in cutting off the flesh, because in the foreign exchange market with unlimited fluctuations, the consequences of hesitation will be direct losses.
If you lose the rhythm, then it is not cutting off the flesh, but being eliminated on the spot.
…
Tuesday, January 12th.
Lu Ming came to the trading hall in the cubicle conference room. When he came in, he saw that all the team members were very excited. When Qi Wei saw Bo SS, he couldn't hide his excitement and said:
"Mr. Lu, it's incredible. The determination of the short sellers to close their positions is incredible. Hibor's interest rate today has soared to an unprecedented and even unprecedented high. It has now reached %, and there is no trend of falling back."
Lu Ming couldn't help but flip through the memory information of the previous life in his mind. Hibor's lending rate once reached %. Lu Ming looked at the market trend at the moment, because his intervention would definitely reach a new high in the previous life.
.
After a while, Lu Mingyan concluded concisely: "It should be able to reach about 75%. Some short sellers have already begun to liquidate their positions. Very good, brothers, listen up. Today we are going to start harvesting and cashing in profits. This time it is super big meat.
Take the pants off Wall Street!"
The team present was so excited that they wanted to scream. The past few days had been so exciting that they gave Wall Street a hammer blow and their heads were smashed. It was like a dream-like experience.
What is the concept of 75% lending rate?
This means that if international short speculative capital wants to buy RMB in the Hong Kong market to close out their current short positions, the interest cost they need to pay is at least 75% of the money. This interest rate is higher even for illegal loan sharks.
shed tears.
There is no other way. The short sellers can only buy RMB from the Xiangjiang market. All other places are blocked by the central government. At this time, they finally realize that they have painstakingly prepared a large amount of funds and spent a lot of energy on planning. With the help of the rare 811 exchange rate in mainland China,
I changed my timing to make a big profit, but I never thought that my opponent had already laid a dragnet, just waiting for them to jump into it.
This is really the end of the world. The short funds here have been buried alive, and the long funds in the mainland capital market have also been buried alive.
Today, Big A has already settled below 3000 points. Big A fell from 5178 and almost buried all the investors on the top of the mountain, including retail investors, domestic institutions, and overseas funds.
It's impossible to escape at such a killing speed.
Want to run? Unexpectedly, Big A laid down in advance before the U.S. dollar interest rate hike, and lay down resolutely, quickly, and thoroughly. The boost from the big circuit breaker at the beginning of this year directly fell below 3,000 points.
Foreign investors will either have to admit their losses and be eliminated, or they can stand guard on the top of the mountain.
Today, Hibor's overnight lending rate soared to %, and the offshore RMB exchange rate appreciated again by 225 basis points, closing at 6.5796.
After the RMB exchange rate has basically recovered its losses since the beginning of the year, the exchange rate difference between onshore and offshore narrowed to 50 basis points. In other words, compared with the initial exchange rate, the current RMB exchange rate difference is only 5 cents. This
One look at the foreign exchange difference and there is no desire for arbitrage at all.
…
(Ps: I admit, I was too big on the promise of 100 monthly votes for extra updates. I can never catch up with the speed of fulfillment. If I could go back to yesterday, I would definitely change it to 200 votes. No, 300 votes for extra updates. It was a mistake, a serious mistake.
Ah, I thought that dozens of saved manuscripts would be released regularly, 2 chapters would be updated every day, and I would be able to waste away without coding for a month. What a perfect plan, but now I have really become the donkey of the production team...)
