The Son of Finance of the Great Age

  Chapter 963 Big Avalanche (9)

   Before the market opened on this day, two well-known American investment banks, Goodman & Co. and Stanley & Co., also expressed their views in unison.

  Goodman said that the current Huaxia capital market has peaked, and there is no possibility of another surge in the short term. Investors are advised to sell their chips as soon as possible to avoid the upcoming systemic financial risks.

  Stanley said that now is not a good time to buy bottoms. The index will fluctuate in the range of 3250 points to 4600 points in the next year, which is 2% to 30% lower than the index of the previous trading day.

  At the same time, both companies stated that the government cannot directly control the market. In the case of high trading volume, leverage and valuation, even releasing positive news cannot alleviate the systemic risk of the market.

  The two companies issued serious warnings to the market with one voice, which is almost equivalent to shouting in the ears of investors, the danger is approaching, run for your life!

  Since then, public opinion at home and abroad has unanimously unified, officially sounding the clarion call of the stock market crash.

   And in the capital market, it is also quite powerful, as if responding to various market trends, it plummeted by more than 100 points as soon as the market opened, clearly and unmistakably sending a strong signal to investors from all walks of life: the public opinion in the market is not wrong!

  Small and medium-sized investors were immediately frightened. While some of them were still waiting and watching, others began to sell.

  However, there are still some powerful investors who are not very convinced. They have naturally heard all kinds of market rumors, but they have another interpretation of these news in their minds, that is, even if the financing market may be liquidated, it fell by more than 100 points at the opening and has reached the level of rebound after the last big drop. Therefore, even if there is another decline in the future, it will not be too serious, and there is still a high probability of a rebound.

  Based on their considerable funds, after a period of panic after the market opened, there was a momentary shock on the market, and part of the selling by retail investors was caught by them.

  But soon, institutions quickly joined the frenzy of selling.

  Although institutional investors are more rational and professional than ordinary investors. But in this market where performance only speaks, short-term net worth can determine the fate of a fund manager. After all, not everyone is Xu Fei. Therefore, after seeing the temporary stability of the market, fund managers thought that their opportunity had come, and began to join the ranks of selling.

They are generally not easy to be hit by market rumors, but most of them are very clear that the current market prosperity is not a rational prosperity, nor is it a bull market in the true sense. Brilliant bubbles blown up.

   No matter how big the bubble blows, it will eventually burst with a bang.

  The ingenuity of fund managers is that they always recognize the situation clearly, just as they know very well that a bull market is not a "bull market", but they still have to fight in such a market because they want to make as much profit as possible. But at the same time, they must avoid risks to the greatest extent, and cannot let their performance be fleeting like fireworks.

  During this process, what they rely on is their professionalism, hoping to escape from the market one step ahead of the avalanche.

   But it is a pity that there are many people who think this way in the market. When they think of getting together, the consequences will be very serious.

  The decline of heavyweight stocks is very slow, because there are too many institutions crowded in it, and some of them are ultra-long-term holdings, so the index does not show a tragic decline. But in the small and medium-cap sectors, investors are scrambling to flee like the Dunkirk retreat.

Xishi.com, which is famous for its subject matter among small and medium-sized companies, whose market value has grown from billions to tens of billions in just two years, was directly smashed by 5% of a 400 million sale order. Before people could react, another sell order with a total value of 600 million directly pressed it to the limit board, and it could no longer move.

Qinghu Hi-Tech, which once soared more than 30 daily limits in a row, created a myth of wealth ranging from a few yuan a share to 500 yuan a share. The stock price fell directly into a straight line.

Daguang Medical, due to the positive influence at the opening, the price was a full 5% higher than the closing price of the previous day. Even when the market was volatile, it was not affected. Within hours, the stock price has approached the daily limit. But just when there was still a short distance from the daily limit, a sale order of up to 300 million directly knocked down all the funds and directly sealed it at the daily limit.

  …

  The sectors with small and medium market capitalization are like harvested wheat fields, and the places they pass are in a mess. Stocks fell one after another, even the hottest subject stocks at the moment. The fate of the limit.

The selling frenzy in the small and medium-cap sectors soon affected heavyweight stocks. Although institutional investors are the majority in this market, human psychology is a very delicate thing. When there is a selling frenzy in the entire market, some institutions and some Big players also began to sell.

  The index fell quickly, but the speed was not very obvious, it can be said to fall slowly. By the time of the noon break, it barely stood above 4300 points.

  In just one morning, there were at least 500 stocks with a limit-down phenomenon, which means that the market value of these 500 stocks evaporated by 10% in one morning.

  The only thing that is gratifying is that the heavyweight stocks did not collapse.

   But the last straw that quickly broke the camel's back came in the short hour of the noon break.

  On this day, there was a very high-standard financial meeting in Suhai, and the governor of the central bank attended this meeting. At noon, during the break of the official meeting, a reporter came forward to ask the president his views on the stock market. As the governor of the central bank, every word he utters will have a very large impact on the market, so the governor declined questions from reporters.

  However, when it spread to the market, it turned into another rhetoric: the president looked solemn and nervous, and said nothing to the reporters' questions about the stock market.

   Once this news was released, it immediately became the focus of discussion in the entire market. In just one hour, people from all walks of life interpreted the move of the central bank governor, with various opinions. Among these chaotic statements, the one that the market agrees with the most is that central bankers can't do anything about the current stock market.

Indeed, reverse repurchase has reduced the expectation of interest rate cuts and RRR cuts. Reverse repurchase is the best way the central bank can use, because lowering interest rates or RRR cuts may cause exchange rate fluctuations, and the RMB has suffered in overseas markets since this year. under enormous pressure. Other methods have no obvious positive effect on the capital market, and even the banking supervision department, the Ministry of Finance and even the highest level of the government have no good solutions.

   Qiang donkeys are poor, this is the most recognized view in the market.

What this interpretation brings to the market is the worst result. To a large extent, people place their final hopes on the government, because the authoritative media repeatedly agrees with the role of the stock market, which to a certain extent It makes people think that the booming stock market is the desired result of the government. Now the stock market is about to collapse, but the government has become helpless, which makes them feel like crying without tears.

  The confidence of the market has completely collapsed.

  As soon as the market opened in the afternoon, the index directly broke through 4300 points, and the important threshold was declared to have fallen without any resistance.

   Fall! fall! fall!

This time, not only the confidence of the small and medium-sized stockholders collapsed, but even the fund managers who have been fighting for a long time also experienced varying degrees of panic in their hearts. Certain factors, those good reforms are likely to turn out to be nothing, which makes them embarrassing.

  Sell, sell as fast as possible, sell like crazy!

In the afternoon, various institutions also joined the army of selling, and once the institutions sell, the power is far beyond the comparison of small and medium investors. Such strong funds. Moreover, the scope of the sell-off is not only concentrated on stocks with small and medium market capitalizations, but also on heavyweight stocks.

   Of course, not everyone loses money. For example, in some stocks, an institution may buy a position at an average price of 5 yuan. Now that the stock price has reached 55 yuan, they can sell it at 50 yuan, and even so, they will not lose money. But for new investors, being set at 50 yuan means that they may not be able to solve the set for a long time. In this case, they will be more encouraged to sell the chips on hand as soon as possible.

  For institutions, it may be the amount of profits, but for small and medium shareholders, it is their lives.

   But no matter what, once the panic begins to spread, there is no one in the entire market who is spared!

  Two hours after the opening in the afternoon, there were as many as 1,000 stocks with a limit-down limit. After the last two falls, they hit a new high with a limit-down limit. In terms of the index, 4200 points also began to falter.

In terms of the index of the small and medium-sized market capitalization sector, it has completed from 3278 to 3200, and then to 3100, followed by the continuous heavy losses of the three major hurdles of 3000. How tragic.

  However, even so, the decline has not stopped.

   At 2:45, fifteen minutes before the close, the decline reached the worst level. The main board index fell below 4150 points, while the index of small and medium market capitalization approached 2900 points.

  The stocks that reached the daily limit reached as many as 2,000. You must know that in the entire market, there are only about 4,600 stocks. That is to say, more than 40% of the stocks had a limit-down before the market closed today.

  Fortunately, at this time, the market finally regained some rationality, and taking advantage of the final transaction, some daredevil funds also rushed in, hoping to take advantage of the low price to absorb part of the bargaining chips and grab part of the rebound. And some institutions and retail investors have also begun to enter the market to grab chips, hoping to reduce their average price through such operations.

Under the dominance of the forces of rebounding and lowering the average price, the market finally slowed down the decline and even rose slightly. Finally, at the close, the index stabilized at 4192 points, which was 334 points less than the previous trading day. The entire market value fell by 7.40%.

   On the index of small and medium market capitalization, it fell by 8.91%. Although it is almost the same as the biggest drop of 9.01%, it is a little gratifying that the decline was finally controlled within the range starting with 8.

   This is the largest drop in a single day in the history of Huaxia Capital Market, unprecedented. Soon, after the market closed, someone called out the "6.26 tragedy".

  The performance of the market shocked everyone, and the topic of the stock market swept all social occasions for a while.

   Soon, a high-profile, stock market-focused meeting took place over the weekend.

   Thanks to book friends Demon Dragon Warrior Ghost, Crab Read Books, book friends 151029132347505, seanju1, wongC, Sunshine dazzling, for voting for the monthly ticket! Thank you for your support. The author must work hard and try his best to write well. I sincerely hope that this book will achieve good results~

  (end of this chapter)