My Fintech Empire

In the early hours of the night, the overseas editions of many mainstream media newspapers issued stern warnings to international short sellers: shorting the RMB is a dead end. Those speculators and malicious short sellers who are eager to take advantage of arbitrage will eventually lose to the market.

The public warning has had a certain deterrent effect, and some people have some concerns, which are also reflected in the capital market.

The next day, when the A-share market opened, the Shanghai Stock Exchange Index jumped sharply and opened as low as -3.02% in early trading. It rebounded quickly after the opening. It once rose by more than 1 percentage point during the session and regained the 3,300-point mark. However, it fell back in the afternoon. , and finally closed down -0.26% at 3287.71 points.

After opening low in the morning, the NSE 50 Index closed in the red and closed up +0.31% at 923.99 points after hours.

On the next day, the A-share market opened on Wednesday, January 6. The SGX took the lead in opening for half an hour. The SGX 50 index opened higher and headed higher to recover. This influence also drove the opening sentiment of the main board index. The Shanghai and Shenzhen stock markets After it opened flat, it fluctuated higher, and the day ended with bare feet.

As of the close, the Shanghai Stock Index rose +2.25% to 3361.84 points, and the closing price was almost the highest price of the day. The NSE 50 Index performed much stronger than the main board, closing up +4.07% at 961.62 points.

The market plummeted the day before yesterday, stabilized yesterday, and rebounded strongly today. It seems to have stabilized.

But this is not the case. The mainstream newspapers issued a stern warning to short sellers in the foreign exchange market the night before yesterday. Although it had a deterrent effect, it only lasted for two days, and it only shocked the stock market, but it had no effect on the foreign exchange market. International short sellers Capital doesn’t buy it at all.

The RMB depreciated significantly by more than 600 basis points in the offshore exchange rate market the day before yesterday. It depreciated by another 135 basis points yesterday, with a depreciation rate of 0.2 percentage points. Today it depreciated sharply again, with the exchange rate of the RMB against the U.S. dollar in the offshore market depreciating to 6.7305 at its highest. The water level hit a record low, and it once depreciated by more than 870 basis points under the strong pressure of international short capital.

In the end, when the trading team of Qunxing Capital made a strong move to borrow the market and vigorously buy RMB, the exchange rate began to rebound and closed at the 6.6977 level, but it still depreciated by more than 540 basis points.

In fact, Fang Hong had the ability to bring back today's exchange rate, but he did not let his trading team do so.

The reason is simple. Now is not the time. Fang Hong needs to convince those who are cheating that the short sellers will win and that the offshore exchange rate can quickly break through the 7 mark, so that they can become more determined in this idea and implement the short-selling strategy.

Wait until they jump in and then clean them up together.

Now the outside world is in a moment of undercurrent. Some people who were shocked before saw the foreign exchange market drop to new lows for three consecutive times. Now they are also thinking about it. They are no longer afraid of the stern warning issued by the mainstream media and newspapers the day before yesterday and resolutely implement Korrun. and arbitrage actions.

With this situation, the offshore exchange rate will definitely continue to plummet, so we should leave as soon as possible.

Sure enough, the next day, Thursday, January 7, it came true. The market once again staged a "double kill for stocks and exchanges" situation. The three major A-share trading markets all fell. The NSE 50 index opened lower and moved lower. The Shanghai and Shenzhen stock markets also fell. Drive low and move low to kill all the way.

At around 9:44 in the morning, the Shanghai Stock Exchange Index dropped to a new year-opening low of 3178.70 points. The decline expanded to -5.45%, triggering the circuit breaker mechanism and suspending trading for 15 minutes. Big A investors were numb.

Trading resumed at 9:57, and the index exploded again. In just three minutes, the second circuit breaker was triggered again during the day. The Shanghai Stock Exchange Index fell by 3115.89 points, a drop of -7.32%. Trading was suspended for the rest of the time until the afternoon. The market closed at 15:00, and the main boards of the two cities closed early half an hour after opening.

The NSE 50 Index could not withstand the continued decline until it closed down -7.85% to 886.15 points, a record low since the market opened.

Before the first trading day of the new year, and even before the A-share market opened this morning, investors did not expect that the circuit breaker mechanism had just been implemented, and that they had experienced four major circuit breakers in just four trading days.

I originally wanted to introduce innovative elements that are different from the SGX next door, but it ended up like this. A disaster-level market version 3.0 was staged. Last year, it was a mess. Now, just at the beginning of the new year, a disaster-level market version 3.0 has been staged. Or is it that the capital market is at a troubled juncture? How can the higher authorities not pay attention?

The village chief was already sweating profusely. He originally wanted to add some innovative elements, but now he knew it was out of the question.

…

The stock market has closed, but a more intense long-short duel broke out in the foreign exchange market. The short forces at home and abroad continued to attack, once suppressing the offshore exchange rate to 6.7504, and once again devalued significantly by more than 500 basis points.

At this moment, Fang Hong is staying at home and watching the trend of the offshore exchange rate market and paying attention to the consultation news.

It is no exaggeration to say that we are now in a state of chaos, with holding reductions, circuit breakers, short selling of the A50 index, plummeting external markets, depreciation of the RMB, and huge short orders from some domestic institutions.

Those who bet that their country will lose are now frantically selling RMB, and some of the capital that has made a fortune in and out of the country has become an indirect accomplice.

They don’t have Fang Hong’s structure and feelings, let alone Fang Hong’s firm stance. In their eyes, they only have profits. They have no regard for national borders when it comes to currency. As long as legal and compliant technical operations are profitable, they will do it. .

Fang Hong couldn't help but sneer silently as he stared at the trend of offshore exchange rates. At this moment, he was constantly using up the capital to open huge amounts of short orders for arbitrage. In Fang Hong's eyes, everyone was rushing to jump into the pit.

After a while, Fang Hong sent a message to Tian Jiayi: [The people who cheated and cheated have almost jumped into the pit. Please inform the traders below that they can use their strength. ]

Two minutes later, the offshore funds of Qunxing Capital struck hard, and the results were immediate. After the offshore exchange rate reached the 6.7504 level, it began to fight back and rebounded. At this time, there was not much water in the pool, and in the trunk of Qunxing Capital, Ammo is extraordinarily plentiful and can be drained at any time if desired.

It's just that Fang Hong didn't do that and showed too much energy. If his opponent was frightened, he wouldn't continue to add chips to bet.

In this way, the opponent's advantage is maintained on the board, but if you want to maintain this advantage, you must continue to raise bets.

If your opponents feel that they can't win from the beginning, they will definitely not continue to add chips, especially those speculators who follow the trend, and it will be difficult to trap them.

With the strong action of Qunxing Capital, when the stock market was the first to be sent to the IUC in a huge panic wave like today, people staring at the offshore exchange rate market were surprised to find that today's RMB not only did not depreciate, but actually appreciated slightly.

After depreciating by more than 500 basis points, it finally bucked the trend and appreciated by 47 basis points, closing at the 6.6930 level.

…

At night, the external market continued to plummet, and the three major North American stock indexes also fell.

However, this was not the most talked about thing in the evening, but another sudden incident that caught Big A's stockholders off guard. In the evening, the two major stock exchanges of Shanghai and Shenzhen and the ZTE issued notices: In order to maintain the stable operation of the market, since 1 The index circuit breaker mechanism will be suspended from March 8.

According to disclosed information, the village has agreed to suspend the circuit breaker mechanism starting tomorrow. This matter has suddenly become the biggest news in the capital market.

…