As of the close, the three major A stock indexes had mixed gains and losses. The Shanghai Composite Index closed in the red by +0.26% to close at 2772.20 points, the Shenzhen Component Index fell by -0.45% to close at 10109.91 points, and the ChiNext Index fell by -1.21% to close at 10109.91 points.
At 1903.88 points.
Tiansheng Holdings closed +10.00% daily limit today, with the stock price closing at 145,911.58 yuan, with a daily trading volume of 206.7 billion yuan, and a total market value of 11.67 trillion yuan after the market closed.
As soon as this trend comes out today, the stock market leader is still less than 9 percentage points away from hitting a record high.
When such major negative news broke out in the external market, the market was able to close in the red. The stock market leader's daily limit today played the most important role, which did not make the Shanghai Stock Index close down today.
If we exclude the contribution of the daily limit of the stock market leader to the broader market, with one increase and one decrease, the Shanghai Composite Index closed down at least -3% today. In addition, it fell from the intraday high, which is equivalent to a drop of about -4.49%.
If it really kills so much, the Shanghai Stock Index will hit a new low.
However, the super main force topped the stock market in the afternoon, supported the market, and received a large number of chips.
From the current point of view, Tiansheng Holdings is once again close to the pressure level of the previous high and wants to break through the new high. The super main force who took over today saw the trump card in advance than other institutions in the market. It is clear that even near the new high, it is still a relatively cheap bargaining chip.
.
…
That night, the U.S. stock market crashed as expected, with a sharp gap at the opening and the fifth major meltdown in the month and the eighth time in history.
The big dog owners were very relieved when they saw it. Although it would be painful for the big dog investors to continue to drop the oil price, it would be even more painful for the U.S. stock market to collapse, and it would make them happy.
However, the performance of the U.S. stock market tonight has made global investors nervous, because the three major North American stock indexes are all frantically testing the edge of the fifth major circuit breaker in this month, and the circuit breaker mechanism may be triggered at any time.
But until the close, it was still on the verge of a circuit breaker. The market collapsed, but it did not trigger the fifth major circuit breaker in the month and the eighth time in history.
The reason is the Federal Reserve's crazy rescue of the market, because the situation is different at this time. The Federal Reserve has already announced zero interest rates and unlimited quantitative easing, and has already entered the "unlimited bullets" mode, using the trick of printing unlimited money to support the situation.
The U.S. stock market stalled on the verge of a major meltdown.
The trick of unlimited bullets is indeed exciting to use, but the stamina is also very strong. Problems will always be exposed later, but the Federal Reserve has nothing to do. If it is not continued now, there will be no future.
How can you manage so much? Let’s continue.
As of the close, the S&P 500 Index, the three major North American stock indexes, dropped -6.07% to close at 2470.50 points, the Nasdaq Index dropped -5.60% to close at 7360.58 points, and the Dow Jones Index dropped -6.65% to close at 21052.53 points.
After all, if the three major stock indexes fell -7% during the session, the circuit breaker mechanism would be triggered. Even the current closing situation is equivalent to a quasi circuit breaker.
Lu Ming is also looking at the volatility of the North American capital market, but now he can only watch it, and if he enters now, he will lose his life.
…
The collapse of oil prices this time is obviously due to oversupply and the result of the mutual feedback resonance of dual negative factors on both sides of supply and demand. Affected by the Y situation and the failure of prevention and control by major economies, the demand side has dropped significantly; OPEC+
Negotiations broke down, Maozi had no intention of reducing production, Sater responded with tit-for-tat, the oil price war intensified, and supply increased significantly.
While the demand side has dropped sharply, the supply side has pushed up wildly, causing oil prices to plummet.
From the demand side, as the epidemic expands globally, flights are grounded, companies are suspended, and industrial production is suspended. The demand in the Greater China market alone is approximately 13.5 million barrels per day, which was affected by the epidemic prevention and control in the first quarter.
The impression of the measure is that demand fell by about 2 million barrels per day, which is roughly equivalent to a 15% demand drop.
If simply converted according to this ratio, global crude oil demand will fall by about 15 to 20% in the next few months, and this is a high probability time, that is, global crude oil demand will decrease by 15 million to 20 million barrels/
day.
Such a large reduction in demand is unprecedented. As a commodity market with obvious marginal effects, a 20% drop in demand is enough to cause the market to fall below the level, and the market is indeed falling below and then again.
From the supply side, crude oil production capacity has always been sufficient. This is why after the oil price plummeted in 2016, OPEC, led by Saudi Arabia, and non-OPEC oil exporting countries, led by Russia, needed to form a joint venture.
The alliance has come to an agreement to reduce production.
However, in the context of the sharp drop in demand caused by the coronavirus impact, OPEC+'s efforts to reduce production seem insignificant. If global demand drops sharply by 20 million barrels per day, even if OPEC+ reaches an agreement to reduce production, it will be in vain. 2 to 4 million barrels per day
A barrel/day production cut cannot bring supply and demand back into balance at all.
In this case, it is better to just let nature take its course and add fuel to the fire, increase efforts and use this opportunity to kill the shale oil in the United States. At this time, a large number of shale oil companies in North America are no longer able to bear it.
The scale of corporate debt in North America has reached the level of US$10 trillion, and shale oil companies are borrowing money to survive.
A large number of junk bonds have been generated by shale oil and gas companies. With current oil prices, more and more shale oil and gas companies have entered bankruptcy and liquidation. Once the corporate debt crisis breaks out due to successive explosions of shale oil companies, there will also be a crisis here.
The rhythm of entering the ICU.
Supply increases and demand drops sharply. This divergence between supply and demand will also cause another problem, which is inventory backlog.
Where to put the produced oil?
The answer is inventory.
Major crude oil producing and consuming countries, including end-user refineries, will build corresponding infrastructure to store crude oil. Developed countries such as OPEC also usually have about two months of oil reserves for emergencies. When oil prices are low,
Use inventory to stock up on time.
As of mid-March, North American crude oil inventories have climbed for nine consecutive weeks, but have yet to reach five-year highs.
Ideally, there are enough global inventories to store excess crude oil production, but if the cost of floating tank charters or land-based storage tanks rises, it is unclear how much energy storage will be available globally.
…
At about 17:00 in the afternoon, Tiansheng Capital Headquarters.
At this moment, Lu Ming was at the company's headquarters. He was waiting for someone, Wang Yue, the head of Wanxiang Group. He had contacted him earlier and specifically asked him to come to the company for an appointment to discuss some matters.
While waiting for Mr. Wang to arrive, Lu Ming was looking at a financial product, Yuanyoubao.
This is the reason for inviting Mr. Wang here this time.
Lu Ming has harvested a lot from North America at the current time point. The old Americans are so righteous that they must be holding back their bad intentions. Yuanyoubao was going to step on the thunder, and now there are a million of them.
Kill him for a reason.
The product Yuanyoubao has flaws in its design. Lu Ming is not out of kindness to wipe their PI stocks this time, but to intercept Hu, a short seller on Wall Street, and catch the other party off guard.
What is certain is that Yuanyoubao will lose money. What Lu Ming has to do is not to lose this money to short-selling institutions on Wall Street, and to take Yuanyoubao's orders before his opponents.
But Tiansheng Capital is now also a thorn in the side of Lao America, so it needs to find a reliable third-party partner and someone who can open the door in North America to execute it on its behalf.
In this way, Wanxiang Capital came into Lu Ming's field of vision, which met his requirements.
When he went to cut off the Hu this time, Lu Ming was not interested in the money, but the scale of more than 30 billion yuan. Compared with the three trillion US dollars harvested before, it was nothing but a fraction.
The reason why Lu Ming wants to participate in the interception is because he has another long-term strategic intention, which is to improve Tiansheng Capital's performance and reputation, so that members of its foreign-funded LP institutions can see that Tiansheng Capital can win in various ways.
If you don't want to play with Tiansheng, you'd better be careful. You might get a sickle on your head one day without even knowing it.
It's best to keep the money in your pocket tightly, otherwise it may go into Tiansheng's account in the next second.
Who doesn't panic after seeing this sickle? Think about it, you still can't beat it and join the ball counting.
For Lu Ming to achieve such an effect, it is far beyond the tens of billions Yuanyoubao has. If nothing else, the annual management fees collected by those foreign LP institutions that hire Tiansheng Capital for asset management are not enough.
Youbao's more than 30 billion is comparable to that, and the harvest is guaranteed by drought and floods every year.