"Oh!"
Knowing there was no room for maneuver at the mont, the two won began asking questions again.
"Since we have such funds, why don’t we just beco market makers?"
Han Lie shook his head, laughing at their naivety.
"Do you really think every market maker makes money? In the dostic market, if you want to be a market maker, you must have a tacit understanding with the listed company. Otherwise, you painstakingly accumulate shares and wash the market, and just when you’re about to drive up the price, they release an announcent of an expected decline in performance, trapping you.
"Then the board secretary cos to talk to you, saying, ’Brother, do a favor. The company’s performance isn’t great this year. Could you please stay in for another quarter and help us support the stock price? At the end of the year, we’ll all get rich together!’
"Will you help or not? If you don’t, you’ll be stuck, and they can push the stock price down whenever you want to get out. If you do help, you’ll have to collude with them and get your hands dirty.
"And that’s if things go well. What’s worse? You’ve successfully driven up the stock price, and retail investors are also piling in enthusiastically. Then, the company’s actual controller suddenly reduces their holdings to cash out, running off before you can. At that point, you’ll be left with devastating losses.
"In short, don’t easily try to be a market maker without the cooperation of the listed company. And if you do have the cooperation of a listed company, then it’s even more out of the question. Insider trading and market manipulation? Are you bored with your peaceful life and itching to go ’sew’ in prison?"
"Understood!"
The two nodded like chickens pecking at grain and then asked, "So, with all this capital we have..."
"It’s actually not that much."
Han Lie casually scrolled through the large orders in the market, remarking, "Aren’t there still over a hundred billion yuan in transactions? That’s enough to accommodate us."
As soon as he finished speaking, his phone rang.
It was Old Zhang, asking if the funds had been transferred into Han Lie’s stock account.
"Let check... Yes, they’ve arrived. Exactly 10 million yuan."
That phone call seed to stir up a hornet’s nest, as his various ’fat sheep’ investors quickly followed up with ssages or calls.
After confirming the funds had arrived and exchanging so pleasantries, Han Lie tossed his phone onto the table. He noticed the SSE 50 index had suddenly started to plumt, and his eyes sharpened.
"Alright, ti to get to work!"
...
The market has inertia.
In the current environnt, with a continuous net outflow of funds from blue-chip stocks, capital can only flow to previous hot spots for safe haven.
What exactly are these? 4G, online gaming, corporate restructuring, and high bonus shares.
It’s not that people don’t want to co up with new plays; it’s just that they can’t.
In a bear market, you can tell stories, but not ghost stories, and certainly not to ghosts. Those retail investors who are heavily trapped are the "ghosts." For companies that keep hitting new lows, talk about their price-to-book ratios, price-to-earnings ratios, and growth prospects is nothing but pure ghost stories.
Who cares?!
This made the prowess of ’the Chief’ all the more evident; the listed companies he chose for collaboration were selected with pinpoint accuracy, and his thods were incredibly astute.
Now, the entire market was searching for another leading stock in the restructuring and high-bonus-shares sector. Wei Hua, by holding its ground at a high price today, was attracting massive inflows of follow-up capital.
Han Lie charged in even more fiercely.
You just want to create a high volu of turnover at this price level, right? I’ll satisfy you!
"Da Juan, Stone, for Wei Hua shares, between 11 and 11.3 yuan, absorb as many as beco available. Don’t proactively chase the price up."
At his command, the two won quickly got to work.
Wei Hua’s market value, after a surge of nearly 90%, was now over 16 billion yuan. Its turnover had exceeded 300 million yuan every day last week, and today it might exceed 600 million—more than enough to accommodate their tens of millions.
However, in the end, they only spent just over 20 million yuan, acquiring nearly 2 million shares.
Thanks to Han Lie’s strong buying support, Wei Hua didn’t fall below the 11 yuan mark, with its maximum drop being 4.45%.
Subsequently, driven by retail investors and risk-averse capital, Wei Hua slowly climbed to around 12 yuan, looking like it was about to hit the daily limit up again.
The first attempt to hit the limit failed.
On the second attempt, Han Lie dumped all the base shares from Old Pan’s account.
Wow! A massive order of 2.8 million shares in total sent the stock price crashing down.
A flood of profit-takers scrambled to get out. The stock had climbed erratically, but now it plunged like a diver from a high platform.
The major players in the market clearly had a strong tacit agreent. You only saw sellers, no buyers.
Many retail investors couldn’t understand why stocks that seed so strong could plumt so decisively. Yet, as soon as the retail investors had bought up all the available shares, the stock price would imdiately shoot back up.
Are the major players teaming up to screw over? Are they really fucking targeting my asly 20,000 shares? How despicable can you guys be?!
The reason is actually very simple—
In the market, large funds operated by experts inevitably possess the most basic ability to read the charts.
They take one look at the K-line chart. Huh, no major correction yet? Yikes, that’s aggressive! If there’s no platform consolidation, then it’s ti for an intraday ’fish blast.’ Fine, count in.
The goal is to clear out earlier profit-takers, telling those retail investors and hot money speculators who’ve made a profit to get lost, and bring in a new batch of investors to take over.
This way, the holding costs for the new batch of ’gold-diggers’ are higher. This reduces the upward pressure on the stock, as they don’t have to worry about a massive sell-off wrecking things at a critical mont.
An expert wouldn’t make a strong push at this ti. Without sufficient turnover now, how would they offload their shares after driving the price up?
So, they tacitly collude to smash the price down, waiting to devour the retail investors’ shares. If you don’t scare them, you won’t get your fill.
Consequently, what becos outwardly apparent is terrifying mid-session volatility on huge volu.
Actually, this kind of huge volu isn’t scary at all. If they truly wanted to suffocate retail investors, the major players could simply obliterate the stock; it wouldn’t take much trading volu to hit the limit-down price.
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