Su Yi gazed at the unilateral sharp decline of the two markets, his expression calm, still patiently waiting for an opportunity.
The stock 'Teli A' that he was paying attention to opened directly at a limit down today, having hit the limit down for 5 consecutive days.
Its stock price had fallen back to approximately where it was in August 2014, before this round of bull market began.
However, although its stock price had completely erased all the gains from this round of bull market.
But under the severe liquidity crisis in the market, the panic selling orders at the limit down were increasing day by day, becoming a completely irrational decline.
Of course, it wasn't just 'Teli A'.
In the two markets, apart from a few core blue-chip stocks, other stocks that did not have time to apply for emergency suspension.
Their trends were basically the same as 'Teli A'.
Under the influence of such extreme panic selling sentiment, and the massive amount of chips being crushed as margin trading funds and off-exchange leveraged funds unconditionally cut their losses and exited.
Just fifteen minutes after the two markets opened.
Under Su Yi's gaze, the ChiNext Index, SME Board Index, and CSI 500 Index once again unilaterally plummeted to around a 6% decline.
Then, for the rest of the day, until the market closed at 3 PM.
These major indices remained flat at this decline level, not moving further, completely showing a horizontal linear fluctuation trend, similar to a stock hitting its daily limit down.
And this kind of trend...
It did not mean that market liquidity had recovered, nor did it mean that the indices had bottomed out at this level.
It simply indicated that with over 500 stocks in emergency suspension, unable to trade or fall further, the 6% decline level was the de facto limit down position for the major indices.
This also meant that when these major indices were at the 6% decline level.
In the market, the core blue-chip stocks that were strongly supported by non-brokerage institutions had basically all hit their limit down.
However, even though over 500 stocks in the two markets were suspended, and these stocks were not participating in market trading, the shadow of 'thousands of stocks hitting limit down' continued to hang over the market at closing, further tormenting the minds of all stock-holding investors in the market.
It could be said that such market trends and performance.
Could no longer be described as tragic; it was complete wealth destruction, an absolute stock market crash!
"Ten years of accumulation, destroyed in one night. This market is truly damn dangerous."
As the two markets had just closed, while Su Yi was still in a daze, a voice full of helplessness and sorrow echoed in the trading room.
Su Yi snapped back to reality and looked in the direction of the voice.
In the VIP trading room, the man with whom he had an argument earlier was now heavy-faced, his eyes filled with despair, slumped in a chair, letting out a long sigh.
After a while, he finally got up from his seat and walked out of the trading room.
It seemed... his account must have been liquidated, and he wouldn't be returning.
After continuous market plunges and thousands of stocks hitting their limit down.
In the past two days, the number of major investors coming to trade in the trading room had become increasingly small.
A week ago, two weeks ago...
Those figures familiar to Su Yi were now mostly gone.
Thinking this, Su Yi couldn't help but glance around the trading room at the few remaining major clients, who also looked solemn, knowing this was the cruelty of the financial market.
In his opinion.
A bull market was never a shortcut for ordinary investors to achieve wealth accumulation and cross class boundaries.
But rather the fastest scythe to harvest ordinary investors.
"Sigh, it's limit down every day, I really don't want to add more margin!"
"Thousands of stocks have hit their limit down, yet looking back, the Shanghai Composite Index and A50 Index are still in positive territory. What is this if not burying one's head in the sand?"
"Saving the market, saving the market... Can you save the market by only propping up weighted stocks?"
"The market has completely collapsed. Even if all of 'Big Finance' and the 'Two Barrels of Oil' hit their daily limit up, it would be useless."
"It's already hit five consecutive limit downs, how much more will it fall?"
"The regulator's market rescue is a joke, right? Do they even understand that the most illiquid parts of the market are the SME Board and the ChiNext Board!"
After a brief silence, the complaints in the trading room grew increasingly intense.
Su Yi knew that after successive massive losses and liquidations, every investor, whether major or retail, was filled with hostility and anger.
So, he did not talk much with anyone.
He simply observed everyone's emotional reactions, then left the trading room alone.
Stepping out of the Huaxin Securities branch building, heavy rain was falling outside again, and lightning and thunder occasionally mixed within the dense curtain of rain.
Su Yi opened his umbrella, walked into the rain, and looked into the distance.
The entire financial district was shrouded in a thunderstorm with lightning and heavy rain, and no one knew when this storm would stop.
In the evening, the heavy rain continued.
The moisture accumulated in the clouds for over ten days suddenly poured down, as if to submerge the entire city.
On the financial market news front, more and more listed companies began applying to the regulators for emergency suspension, thereby avoiding the risk of collateralized shares being liquidated.
Since the regulators had already opened the door for numerous listed companies yesterday.
Now, facing more listed companies' suspension applications, there was naturally no reason to refuse.
Thus, with the regulators agreeing to all major companies' applications for suspension, this practice of avoiding stock price drops through emergency suspension rapidly spread to all listed companies across the entire market.
Finally, by the next day.
July 8th, Wednesday, before the two markets opened for trading.
A total of 1429 companies in the entire market were in emergency suspension, accounting for more than half of all A-share listed companies.
And because more than half of the companies chose to suspend trading.
Market liquidity consequently became even scarcer.
This directly led to countless major capital groups locked in the market, especially public funds, after official market trading began.
To cope with massive forced redemptions from off-market fund investors, they had no choice but to frantically sell more liquid blue-chip stocks, as small-cap stocks had completely lost liquidity.
And when large numbers of public funds and various margin accounts passively sold off indiscriminately in a scramble for liquidity.
The market's long and short forces began to become completely imbalanced once again.
Thus, the market rescue team, formed by '21 brokerage institutions jointly contributing 120 billion yuan', could no longer forcefully prop up the Shanghai Composite Index as it had done yesterday and the day before.
Ultimately, when the bullish forces supporting the market rapidly collapsed.
The Shanghai Composite Index also collapsed, dragging down a host of weighted blue-chip stocks from central state-owned enterprises and state-owned enterprises, which all plummeted to their limit down, just like the small and mid-cap stocks in the preceding days.
(End of Chapter)
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