Chapter 364 [Making money]
The next day is Friday.
When Fang Hong woke up early in the morning, he paid special attention to the information on the news side. Unsurprisingly, in today's morning news, the "flash crash" incident of the US stock market made the headlines of major domestic media.
Everyone is eating this melon with great joy.
[The frustrating "Black Thursday" is here, the US stock market crashed thousands of points, and the whole world once again casts surprised eyes on Magnesia] - "Daily Economic News"
[Thursday night, the U.S. stock market experienced a turbulent wave. The global stock market lighthouse "Dow Jones Industrial Index" plunged nearly 1,000 points in the intraday.
[Analysis of the Dow's 1,000-point dive on Thursday, what happened to the Magnesium stock market? This question can't even be answered by the people of Magnesia themselves] - "Xinlang Finance"
[The U.S. stock market plunged by a thousand points and urgently investigated the source of the shock. The Securities and Exchange Commission of Magnesia and the Commodity Futures Trading Commission have begun to investigate the "abnormal transaction" that caused the stock market to plummet on Thursday] - "New Economic Weekly"
Early in the morning, various domestic media gathered to watch and discuss, and various analyzes and speculations emerged one after another.
According to foreign media reports, traders watched the riots in Athens on TV at that time, but they never expected that the next even more unimaginable thing would happen to them.
At about 2:30 in the morning of the East Eighth District, the Dow began to stage a once-in-a-century dive. It once fell 998.50 points to 9869.62 points in the intraday session, setting a record for the intraday point drop. Then it began to rebound again, closing down 347.8 points to 10520.32 points, a drop of -3.2%, the largest drop in more than a year.
The other two major stock indexes were also affected, with the S\u0026P 500 plummeting -3.24% and the Nasdaq composite index falling -3.44%.
At this moment, Fang Hong was eating breakfast and reading a review article quoting New York Times columnist Floyd Norris. He gave the reason for the sharp drop in US stocks last night:
[Part investor anxiety, part wax crisis, part trader error, plus an apathetic Chinese bank led to yesterday's panic.
These factors brought about the craziest day in the history of financial markets, with the Dow Jones Industrial Average plummeting nearly 1,000 points at one point, while the euro plummeted to a new low in more than a year. Stocks in emerging markets, whose economies are showing signs of overheating, slumped (big A: don't cue), while developed markets tumbled on fears of a renewed recession.
While a large part of yesterday's intraday rout was due to a trader's mistake that dropped a $40 stock to a penny in an instant, global stock markets were already falling before such a mistake occurred.
It appears that investors are less willing to own assets such as stocks and bonds, especially since many assets are much more expensive than they were a few months ago. If investors, consumers and businesses retreat massively again, the current global economic recovery could lose a lot of financing and businesses would lose a lot of new orders...]
Fang Hong looked at this article and laughed it off. Obviously, Freud attributed the plunge to the anxiety of investors, the dilapidated debt crisis, the mistakes of traders and the indifference of European banks that led to yesterday's panic. Disposal.
It cannot be said that there is no reason, but it is certainly more than that.
Anyway, some people made a lot of money in this "flash crash" event, and harvested more than a lot of wealth. Qunxing Capital is one of them. Although they made a lot of blood, they definitely did not make the most money. The big short that really made money is hiding deeper.
But then again, fears of the next crisis in Europe have ebbed and flowed over the past few months.
Europe and the International Monetary Fund announced plans to rescue Xila, but there have also been riots in Xila against the government's large-scale deficit reduction. And yesterday, Trichet, chairman of the European Yang Bank, said at a press conference that the bank's governance committee did not even discuss the possibility of buying government bonds.
That disappointed some traders, who had hoped that the European bank would be able to inject liquidity as the situation deteriorated, as the Fed did.
Conversely, fears are growing that Europe will repeat the mistakes of North America in 2007, with grapes and Spain likely to follow in the same footsteps.
...
Affected by the external market, today's A-share market fell again. It opened at 2685.99 points and opened at -1.96%. The 2700 point mark was broken down in one fell swoop. After the opening, it fell further to 2665 points, and the decline expanded to -2.70%. .
However, it quickly rebounded upwards. Unfortunately, the good times did not last long. When the gap was about to be completely repaired, it was only a little bit short. The rebound ended and fell back again in the afternoon.
In the end, the broader market closed down -1.87%, closing at 2688.38 points, further dropping to a new low for the year.
...
In the afternoon, Tian Jiayi came back from the company and found Fang Hong who was at home. He looked at him with undisguised surprise and said, "How did you predict it so accurately? Do you have a dark clue in Wall Street?"
Fang Hong asked back with a smile, "How do you say?"
Hearing this, Tian Jiayi immediately explained: "According to the latest foreign reports, the major stock exchanges in North America stated that they are investigating whether there are trading errors. possible erroneous trades in a single stock.”
Tian Jiayi added: "Nasdaq OMX Group said about two hours after the stock market closed that it would cancel all erroneous transactions between 2:40 p.m. Individual stocks with a volatility greater than 60% of what they were last traded before 2:40, all of those trades will be cancelled.”
After a pause, Tian Jiayi continued: "It is reported that Nasdaq has canceled 10,468 transactions, a total of 1.4 million shares, involving 236 different securities, but did not give the amount of funds for the canceled transactions. In addition, the New York Stock Exchange The firm also said its electronic trading platform would also cancel trades that fluctuate more than 60% between the same time periods in the US EST."
In short, I can't afford to lose, I don't accept my account, and the transaction on Thursday doesn't count!
Tian Jiayi was surprised again when he heard the news, because it was all predicted by Fang Hong.
His strategy perfectly avoids volatility. To put it bluntly, he is not greedy for too much, otherwise the transaction will be cancelled, and the place opened by others will not be counted because he is the world's hegemony. There is nothing he can do about him.
The stars are just watching and following to get something, so it's not appropriate to make a public announcement.
Avoiding the cancellation of volatility means that the money earned by Qunxing Capital is not included. Those investors who copy the floor price are the ones who are extremely happy and sad. Thousands of times, luxury cars and mansions have all started to look for, but in the end there is nothing to count, who would not be dumbfounded?
Fang Hong didn't explain Tian Jiayi's suspicion that he had a dark line on Wall Street, and immediately smiled and said, "How much did you earn?"
Speaking of this beautiful assistant's face, there was a little excitement, "I have made a lot of money. The fast forward and fast out of the two varieties have been completed and the total profit has been calculated. This time, we have made a total net profit of 32.7 billion US dollars. If we follow the The products involved have the largest volatility, and we may earn more than 80 billion U.S. dollars. Of course, if we really do that, we will lose a penny.”
Fang Hong still smiled and said: "Not bad, but there are not many opportunities to pick up money like this."
Tian Jiayi couldn't help but said again: "With such a precise prediction, I really doubt whether you have an insider on Wall Street..."
This kind of situation, this kind of money, really cannot be earned by luck.
It is also impossible to make money by judgment. It is most reasonable to be informed of inside information in advance.
Fang Hong smiled, noncommittal.
Keep the mystery of being a big boss. He knows that the beautiful assistant has this kind of thinking, which means that Hua Yu and other core executives of Qunxing Capital will also have similar inferences. This is very good, let them guess for themselves Well, even this kind of inside information often represents terrifying energy, and this kind of unspeakable mystery can better establish authority among the people below.
At the end, Tian Jiayi said again: "This time I made a fortune, and the net value of the company's overseas assets soared to 77.5 billion US dollars, or about 528.5 billion yuan. Now it is all liquidity. How do you plan to deal with this liquidity? assets?"
Such a huge amount of liquid capital has now been withdrawn with interest, but it has to find a place to live, and it cannot be allowed to lie there and depreciate.
...
