My Fintech Empire

The peripheral market was in a bloodbath, risk assets all collapsed, funds were frantically buying government bonds, and the lowest yield of AMG's 10-year bonds was hit below 0.5%. This means that if you buy 10-year government bonds at the current price without leverage and hold them for 10 years, the annual yield is only 0.5 percentage points.

Another thing that made matters worse was the plunge in oil prices. Affected by this black swan event, no one dared to go out. As a big oil consumer, private cars and the like, fuel consumption dropped significantly. Crude oil demand itself was already weak. At this time, the Opec+ meeting agreement to reduce production collapsed.

In this situation now, anyone with a discerning eye can see that Sat and Goose seem to be singing a double act. The drunkard's intention is obviously not to drink. On the surface, they are sniping at each other in the middle lane and the middle gate. They seem to be fierce, but the shale oil producers in AMG are the ones who are most hurt.

The plunge in oil prices will bring a lot of derivative effects. The fiscal pressure of oil-producing countries will be under pressure, the world will face deflationary pressure, and the shale oil producers in northern magnesium will begin to lose money and face the risk of bankruptcy.

The market is more worried about what will happen to the hundreds of billions of dollars of debt if all the shale oil producers in the A-Mei family go bankrupt? Will it trigger a debt crisis? Will it trigger a series of chain reactions?

…

Friday, March 13.

At around 8 o'clock in the morning, several core members of the Qunxing Group, the management of the SGX, and Fang Hong, who was in the study on the second floor of his home, were having a video conference.

“No hurry, let’s see how the market opens first.” Fang Hong said to the participants in the video, and he is still calm now.

Last night, the external market staged a catastrophic market like the collapse of the sky and the crack of the earth. The A-share market cannot be immune to it, and neither can the SGX market. This is everyone’s consensus.

On the side of Qunxing Group, Hua Yu, the then head, asked: "Do we need to help the Shanghai and Shenzhen stock markets?"

Hearing this, Fang Hong slowly shook his head: "No, the source of confidence in the current A-share market lies in the SGX market, and the core support lies in the SGX 50 Index. If we lift this side, the confidence of the two neighboring markets will also rise."

Fang Hong added: "This time we have to support the market, but also promote the smooth completion of the liquidation plan. It is indeed not easy to have both. The SGX 50 Index can accept a cumulative decline of about -20% this time. , anyway, the European and American stock markets are several times more tragic than the SGX market. "

At this time, the manager of the SGX market who attended the meeting nodded and said: "In the face of the current chaotic and panic-filled global market, it is unrealistic for the SGX market not to fall. Even if it is held up now, it will trigger expectations of a compensatory decline in the future market, and it will be more passive at that time."

The participants present also nodded to express their agreement with this view. Instead of triggering a compensatory decline that is very likely to occur later, it is better to follow the trend and release the risk at the same time when the global market is losing money.

Just then, a participant said: "The opening results of the SGX market are out!"

Everyone's eyes moved elsewhere at almost the same time, obviously looking at another screen. Fang Hong also looked at the opening price of the SGX market. At this moment, it was 8:55, and the opening price of the SGX 50 Index came out.

The result of the call auction surprised everyone. The closing price of the Xinzheng 50 Index yesterday was 6233.55 points, but the data shown by the opening price at this moment not only broke through the 6000-point mark, but also broke through the 5900-point mark. One call auction directly broke through four integer barriers in succession.

The Xinzheng 50 Index opened at 5851.98 points and opened a gap of -6.15%. This is the largest downward gap in history since the opening of the board four years ago.

From the historical high of 6794.27 points, the cumulative decline has reached -13.87%.

After a while, everyone looked at Fang Hong, who also shifted his gaze to the video conference and said directly and concisely: "There is nothing to say, just do it."

If nothing practical comes out, the Xinzheng 50 Index may hit the limit today.

After all, the SGX market has been rising for four consecutive years, and it is an objective fact that there is a bubble.

According to the normal development trajectory, the bubble blown up by the market will be filled by enterprises through value growth, and then the bubble will be blown up again. Such a cycle is a virtuous market cycle.

But the current situation is a special season. Everyone and the entire market have entered an irrational state. The panic index has exploded. Everything is falling, and safe-haven assets such as gold have also plummeted.

Everyone seems to have become a headless fly. They all feel that there is danger everywhere. Nothing is safer than holding cash. Even if you hold cash, there is a risk of a sharp depreciation, but holding other things will depreciate more severely and unsafely.

Just after the opening price of the SGX 50 Index came out, the entire A-share market was in a panic.

At this time, Fang Hong was not idle. In addition to using real money to support the market, he was also working hard on public opinion to guide market confidence, but this time he did not use his Weibo account to speak.

Because this time there is also a liquidation plan. If Fang Hong uses his Weibo account to speak out, then those who have accumulated a lot of profits in the early stage will see that they originally planned to sell and cash out, and then they will not leave. That would be a bit embarrassing.

However, Fang Hong has a lot of cards to play. He does not need to speak out in his own name, but he has Chen Yu's AI army to use.

After the opening price of the New Certificate 50 Index came out, there were analysis and comments on bottom-fishing on major forums.

[First of all, I don’t recommend selling at the opening, and you can even bottom-fish at the opening, because the negative news of A-shares is now overseas, and when A-shares open in Europe, it is midnight, and there are fewer negative news, so the negative news is mainly concentrated at the opening, and there is almost no negative news during the trading session. ]

[The current strategy is that when the market is extremely pessimistic, you can choose to bottom-fish at the opening, but it is not recommended to intervene during the intraday rebound, and it is recommended to wait and see. ]

[I ran away. I have held the New Certificate 50 ETF for more than two years. Today, I reduced my position again and retained some bottom positions. Now the foreign mask incident is getting worse and worse. Although we are generally fine now, we cannot withstand the risk of secondary imports. As the saying goes, there is always a loophole in a hundred precautions. In this case, the stock market crash is foreseeable, and there should be no real rebound before the end of the mask outbreak period in Europe. ]

[Seeing that everyone is bearish on the market, I can rest assured to invest in the New Certificate 50 Index. ]

[What are you panicking about? If you keep enough cash, I don't think you need to panic. Why did the global stock market plummet? Because they didn't control the impact of masks, and the outbreak has just begun. We are doing a good job here, so why did it fall? ]

[Don't panic, I don't recommend selling. Now is a good opportunity to buy high-quality assets at the bottom. ]

[Foreign capital is cutting its losses to protect itself. It has been flowing out crazily in the past few days. Haven't you seen that gold and Bitcoin are falling? ]

[Achou's liquidity has been completely exhausted, and it has to cut its losses to save its life. ]

[The global market is frantically increasing liquidity against the US dollar, which means that if Achou doesn't release liquidity, it will have to release high-quality resources to cut its losses. But it can't bear to do so. Soon the Fed will definitely cut interest rates and reserve requirements to increase liquidity. ]

[A sharp opening lower is a good opportunity to buy at the bottom. In fact, external negative factors are no longer the main contradiction for our country. Unfortunately, most people are afraid of a big drop. ]

……