Subsequently, as market trading hours continued.
Market investment sentiment, especially short-term speculative sentiment, began to gradually turn to panic.
At 1:21 PM, the ChiNext Index wiped out all its gains for the day.
Among them, 'Teli A', a major 'monster stock' that the Chief Helmsman had participated in some time ago, plunged from its daily limit after breaking the cap, continuously dropping to a loss of nearly 4% within about 20 minutes, experiencing a brief massive fluctuation of 15 points.
At the same time...
Other leading stocks in core concept sectors that were strongly correlated with 'Teli A's' trend.
Such as 'Chuansheng Jiuzhou', 'Meiyan Jixiang', 'Sanxia Xincai', 'Yishang Zhanshi', 'Tonghuashun', 'Baofeng Technology'... and other highly recognizable leading stocks in core concept sectors all continued to plunge violently.
The entire market showed concentrated panic selling by short-term funds.
'Lithium battery' as a core sector, and even the entire 'new energy industry chain' related concept themes and industry sectors, which were attacked and accumulated by various active funds and many institutional funds in the morning trading.
At this moment, they also showed rapid declines, with profit-taking concentratedly selling off, and even panic selling.
Among them, 'Tianci Materials', 'Penghui Energy', 'Ganfeng Lithium'... which had initially hit their daily limits, all broke their limits and fell back, with their intraday trading volumes showing a rapid expansion.
At 1:32 PM, with most of the 'Zexi System' holdings having already fallen to their daily limits.
This panic selling situation in the market.
Began to spread from 'SME-ChiNext' concept stocks, primarily from the ChiNext Board and SME Board, towards the main board's weighted core sectors, blue-chip, and white-horse stocks.
By then...
The overall flow of major funds in both markets.
Also gradually changed from a substantial net inflow in the morning to an outflow.
Whether it was active retail investors chasing at high prices, active institutional funds in the market, or many institutional groups who saw the unfavorable situation in the market.
At this moment, all were engaged in continuous deleveraging and selling activities.
"Damn it... In the market, all sentiment-driven speculative targets are starting to crash."
Noticing the sharp downturn and continuous plunges in both markets, around 1:40 PM, in the internal group of the 'Foshan System' main institutional funds, which had intervened with a significant number of chips in the core 'lithium battery' leading stocks during the morning session, Li Jinshi frowned deeply, furious.
"The Chief Helmsman's arrest has a very negative impact on market trends!"
Chen Guiyun sighed helplessly amidst Li Jinshi's complaints.
Liao Guoxiang replied,
"It will certainly be quite negative. This is equivalent to the regulators telling everyone that market funds are not allowed to engage in excessive speculation."
"The key is not knowing what exactly the Chief Helmsman did wrong,"
Chen Guiyun said.
"This has led to the spread of panic among all active institutional funds in the market."
"It's not just the institutional funds,"
Li Jinshi said.
"All similar private equity institutions in the market are probably also unsettled."
"Alas... The regulators truly don't want the market trend to improve even a little!"
Chen Guiyun said.
"A perfectly good market breakout situation has directly collapsed."
"For the CSI 300 Index to stabilize at 3500 points, it's really not easy,"
Li Jinshi sighed helplessly.
Liao Guoxiang stared intently at the trend of both markets, pondered for a moment, and said,
"As long as we avoid 'Zexi System'-related concept stocks, the problem should still not be big. Even if short-term speculative sentiment in the market fluctuates violently, as long as the basic speculative logic and future expectations of the relevant concept mainlines are still there, stock prices will eventually rise."
"According to you, Brother Liao... the 'lithium battery' sector isn't a big problem?"
Li Jinshi asked.
Liao Guoxiang said,
"I don't think it's a big problem; on the contrary, a pullback is a good opportunity to increase holdings."
"Brother Liao still plans to increase holdings?"
Li Jinshi asked, utterly surprised.
Liao Guoxiang smiled slightly and said,
"Why not? The logic isn't broken, expectations are still there, the chip structure is still relatively stable, and there's no liquidity crisis in the market, so there's no risk of continuous sharp declines. It's just a temporary emotional fluctuation caused by negative news. Isn't this a good buying point?"
"I agree with Brother Liao's view,"
Chen Guiyun said.
"If the core expected logic is fine, then the market trend is likely not over. However... the line of 'Zexi System'-related concept stocks is probably finished. Alas... the Chief Helmsman, a legendary figure of his generation, unexpectedly met his end like this."
"I don't think it will be that optimistic,"
Li Jinshi said.
"The collapse of market sentiment will directly lead to the collapse of overall market investment confidence. Coupled with the CSI 300 Index's prolonged inability to stabilize at 3500 points, the original support at this level will turn into strong resistance.
Once such strong resistance forms, the market's potential selling pressure will also grow geometrically under the influence of continuously declining market investment confidence. At that time, the market trend is highly likely to experience a chain reaction due to this news.
Furthermore, above 3500 points, the trapped positions accumulated from two rounds of stock market crashes were already very heavy. Once the index fails to break through this range quickly. It is highly probable that this round of rebound, which began after the National Day holiday, will stop here.
And if the broader market index cannot rise, and the overall market investment sentiment and confidence begin to reverse and decline, then this core 'lithium battery' sector. Under the premise that it has already been speculated to a certain high level. Lacking the boost from sentiment and investor confidence.
Wanting to continue to strengthen against the trend, and break out to new highs against the trend, solely based on the logic of industry fundamental changes and future expectations. Is probably not very likely! Therefore, I believe the subsequent market trend. Is highly likely to undergo a prolonged period of violent adjustment.
And this sustained rebound, which began on National Day... is almost certainly coming to an end here. Anyway, given the current situation, I don't dare to increase my positions further. At this stage, we must implement defensive strategies to avoid losing all previous profits in another wave."
"The pressure at 3500 points exists,"
Chen Guiyun said.
"But no matter how you look at it, there's no risk of continuous sharp declines in the market. What's more... external markets, especially US stocks, are continually hitting new highs. While external markets are in a sustained bull market phase, even if our A-shares cannot follow suit and go bullish, maintaining a range-bound oscillation shouldn't be difficult, right?"
Liao Guoxiang paused and also said,
"The news of the Chief Helmsman's arrest is an absolutely far-reaching negative for 'Zexi System' investors, but its impact on the overall market is very limited. After all, the total amount of funds the entire 'Zexi System' invests in the market is only about 30 billion.
This amount of capital, compared to a market with a single-day trading volume of six to seven hundred billion. And the 'national team' with trillions in holdings that has already formed a stabilizing effect in the market, is truly insignificant. Overall... There will be short-term effects, but as for long-term effects, they will be negligible."
However, even though Liao Guoxiang and Chen Guiyun remained bullish, it did not affect Li Jinshi's own perception and short-term trading behavior.
While Liao Guoxiang and Chen Guiyun continued to increase their positions in core 'lithium battery' stocks amidst the market's panic selling.
Li Jinshi, on the other hand, seized the opportunity to further reduce his holdings of related chips.
And at a time when the opinions of the three were clearly divergent, and their trading behaviors were distinctly different.
As market trading hours continued.
Whether it was the broader market in both cities, the major core concept themes, or the numerous leading stocks in 'SME-ChiNext' concept sectors, and even 'Zexi System' fund-held concept stocks... all continued to decline, and in terms of the overall performance of major funds in both markets.
Active selling funds still fully suppressed active buying funds.
Even in the 'lithium battery' core sector, which performed most strongly in the morning, leading stocks like 'Duofudo', 'Tianci Materials', 'Tianqi Lithium', 'Ganfeng Lithium', 'Penghui Energy'... were all suppressed by selling orders at this moment, and the flow of major funds on the market all showed a net outflow trend.
At 2:02 PM, 'Teli A' showed a 'sky-earth board' pattern, with a massive intraday fluctuation of 20 points.
At 2:07 PM, in the 'Zexi System' holdings concept stock sector, over 7 stocks hit their daily limits, and the 'Zexi System' concept sector index plunged by more than 8%.
At 2:13 PM, the CSI 300 Index wiped out its intraday gains, returning to its flat position.
At the same time, the Shenzhen Index and ChiNext Index were already down nearly 1%.
"With the end of the Chief Helmsman, a legendary figure, this wave of market rebound that began on National Day is probably also coming to an end."
Seeing that there were more declining stocks than rising ones in both markets, and that 'SME-ChiNext' concept stocks were once again hit hard.
At this moment, in the 'Modu Ultratrend Gang' main institutional funds group where Su Yi was, Xu Qiao's eyes flickered, and he sighed,
"It feels like... it's time for a full retreat, isn't it?"
"Indeed, it's time to retreat,"
Old Zhang said.
"No large funds dare to chase any of the market's high-standard stocks anymore."
Old Wu said,
"Currently, no one knows the Chief Helmsman's situation or what exactly he did wrong. Powerful active institutional funds and many private equity institutions in the market are all panicking. Who would dare to chase high-standard stocks?"
"I feel that the negative news of 'the Chief Helmsman's arrest' is just a trigger,"
Brother Chen pondered for a moment and said.
"The main reason is that profit-taking has accumulated considerably at this market level, and furthermore, the 3500-point resistance has not been fully breached for a long time, naturally triggering concentrated selling by profit-takers."
"Just a trigger? I don't think so,"
Xu Qiao said.
"Regardless, with market sentiment turning sharply downwards like this, it's never wrong to reduce positions, or even liquidate and wait,"
Old Zhang said.
"Anyway, following Brother Su in this wave on the 'lithium battery' core sector, we've made quite a bit of profit. Let's exit the market and observe for now."
"Agreed,"
Old Wu responded.
"With obvious risks approaching, it's always right to avoid them first."
As their discussion about the market continued and group messages kept refreshing.
During the late trading session of both markets.
Under continuously declining and collapsing market investment sentiment.
The broader market indices, along with a host of core concept sectors and their related leading concept stocks, experienced a unilateral decline with almost no rebound.
Finally, when 3:00 PM arrived and both markets officially closed.
The CSI 300 Index, Shenzhen Index, and ChiNext Index all closed down.
Among them, the Shenzhen Index and ChiNext Index fell by more than 1% intraday, and the CSI 300 Index lost 3500 points.
As for the 'lithium battery' core sector, which was highly watched by market investors.
And popular stocks like 'Teli A', 'Duofudo', 'Tianci Materials', 'Penghui Energy', 'Ganfeng Lithium', 'Meiyan Jixiang'...
Without exception, all closed at their lowest points for the day.
However, to everyone's surprise...
Amidst heated post-market discussions and fervent reviews by various investor groups.
When 5:00 PM arrived and the 'Dragon and Tiger List' for both markets was published, the core institutional funds that everyone expected to massively reduce positions and take profits, namely the 'Financial Street Fuxing Road' capital, did not appear on the selling side of any listed stock, maintaining a locked-in heavy holding position.
This inadvertently gave the pessimistic market a relatively positive emotional boost.
Afterwards, amidst everyone's continued heated discussions.
At 6:00 PM, various news related to the 'Chief Helmsman's arrest' incident, which had been widely spread in the market during the day, finally became clear.
According to the official announcement, the Chief Helmsman was arrested for insider trading and stock manipulation.
And as the official announcement was issued.
The relevant document issued by the China Securities Regulatory Commission (CSRC) regarding 'Strict Investigation and Punishment of Market Violations and Illegal Transactions' also detonated the market, sparking discussions among countless investor groups.
"The end of a legendary figure!"
Su Yi browsed the related market news, sighing inwardly.
Although he had never truly met Xu Xiang, the Chief Helmsman, in person, who was renowned and famous in China's institutional fund circles.
He still admired the Chief Helmsman from the bottom of his heart.
He knew that the other party also came from humble beginnings and had built everything he had today through his own efforts.
Furthermore, the short-term leading stock trading strategy developed by the Chief Helmsman had indeed allowed many short-term investors who followed him to make money in the stock market's speculative ecosystem in China.
Although in the later stages, as the 'Zexi System' grew larger in capital size.
It gradually shifted to relying on insider information for asset restructuring, or leveraging capital advantages to collaborate with major shareholders through private placements and long-term control to manipulate stock prices, thereby extracting market profits and gradually deviating from legitimate trading practices.
However, the entire 'Zexi System's' development path.
Still offered many, many lessons and warnings for him.
Furthermore, he wanted to establish himself in the Modu financial circle, carve out his own niche, and replicate the 'Zexi System's' development path.
Then, the collapse of the 'Zexi System'.
Was a considerable positive, big or small, for his subsequent company formation and the establishment of private equity funds.
Sure enough, while he was still contemplating the impact of the 'Zexi System's' collapse on his future development, his phone rang.
Su Yi picked up his phone and glanced at the caller ID.
Seeing that it was General Manager Shan from 'East Money Information Group', he was slightly surprised and answered the call.
"Mr. Su, I hope I'm not disturbing you?"
the other party said with a smile.
"When do you have time to have a meal together? What do you think?"
Su Yi smiled and said,
"General Manager Shan, if you have something, please speak directly."
General Manager Shan cleared his throat slightly and said,
"I heard you are preparing an investment company. When do you plan to open?"
"Probably another half a month, or a month,"
Su Yi said.
"Oh..."
General Manager Shan said,
"After your company opens, Mr. Su, are you planning to do 'private stock fund' business?"
"Mm-hm,"
Su Yi nodded in response.
"Then I wonder... has Mr. Su considered the idea of cooperating with our 'East Money Tiantian Fund Network'?"
General Manager Shan said.
"We can offer Mr. Su the most favorable cooperation terms, what do you think..."
"Sure,"
Su Yi thought.
The traffic portal of their website would definitely be greatly beneficial for the development of his planned fund business.
What's more, as a local powerhouse in the Modu financial sector, 'East Money Information Group' possessed an incredible amount of resources.
Their proactively seeking cooperation with him was essentially all benefit and no harm for him.
Of course, he knew.
The reason they proactively approached him.
Was his current reputation in the financial market.
They knew that once he launched private stock fund products under his name, it could attract a large number of fund investors to 'Tiantian Fund Network', a subsidiary of 'East Money Information Group', and also help the group earn significant commission fees.
In other words, such cooperation would undoubtedly be a win-win situation.
General Manager Shan heard Su Yi's answer and was surprised that Su Yi agreed without even thinking.
This made many of the persuasive words he had prepared unspoken for a moment.
However, Su Yi's straightforwardness was something he was happy to see.
So, after a brief pause, he said,
"Then how about we meet and talk this Friday evening?"
"Okay!"
Su Yi responded again, and hung up after setting the time.
After that, he continued to review the market conditions, browsed some evening market news, glanced at the trends of overseas markets, and then washed up and went to sleep.
The next day, Tuesday, November 10.
Under the influence of continuous sentiment building and external market trends.
The broader market in both cities, popular stocks where active institutional funds concentrated, and core concept sector mainlines with high investor attention, all showed a lower open.
Then, when 9:30 AM arrived and both markets entered the official trading session.
Under depressed sentiment, the market continued to decline.
At 10:00 AM, under continuous selling pressure, 'Teli A', the 'monster stock', plunged another 7%.
And amidst the successive declines of all 'SME-ChiNext' concept stocks, the core 'lithium battery' stocks heavily held by Su Yi also suffered severe setbacks.
Immediately after, just when everyone thought today's market was destined for another brutal session.
Believing that there was no hope for the CSI 300 Index to fully recover 3500 points.
Around 10:20 AM, 'Teli A', which was almost at its daily limit, suddenly launched a counterattack.
Under the aggressive buying of an unknown major fund, it swiftly recovered its intraday losses, quickly turning red and rising.
At the same time, 'lithium battery', this core market sector, also launched a full counterattack.
Even 'Penghui Energy', which Su Yi primarily controlled, surged straight up, reversing yesterday's losses within just two or three minutes, continuing to hit new rebound highs and historical highs since its listing.
(End of Chapter)