Chapter 184 Perfect hedging, extreme arbitrage!

"What the hell, what's going on?"

When the entire market is changing rapidly, all core-weighted financial stocks have withdrawn their daily limit orders, selling has been overwhelming, and the index has plummeted. The majority of retail investors in the market are just like the changes in their expressions and mentality in the 10 minutes before the noon closing, and their hearts are also full of excitement. Shocking.

"Why did the buying orders suddenly disappear?"

"Not only did the buying orders disappear, but the selling orders on the market poured out like crazy. It's really evil."

"Look at this situation, with dozens or tens of billions of funds in the morning, is it just making me feel lonely?"

"What the hell...I am chasing after you at a high position. What are the promised benefits? These funds are simply sick, right? They rush to buy before the market closes at noon, and rush to sell when the market opens in the afternoon!"

"You are indeed sick. What are you trying to do?"

"The Shanghai Stock Index has gone straight up and down, just like a small-cap stock controlled by a banker. It's just... This should be regarded as big money manipulating the market, right?"

"Buy before midday and sell after midday. Market sentiment and funds to follow the trend have all disappeared. What is this manipulation?"

"I don't know. I just think the market around lunch time today is really weird. Harvesting goes back and forth without stopping. It's really weird!"

"Yeah, I've never seen market trends like this."

"Looking at the situation, I guess I bought it wrong, right? Otherwise, how can we explain that all the buy orders were canceled after the market opened?"

"There were tens of billions of dollars in buying orders before the market closed at noon. How can this be wrong?"

"No matter what the reason was, luckily I didn't chase it and escaped a knife attack, otherwise... I wouldn't be able to sell it now even if I wanted to."

"I heard that it was Guangda Securities that caused the incident, and their company's stocks were suddenly suspended before the market opened in the afternoon."

"Guangda Securities? This securities company is not considered a first-class echelon in the market, right? Can it make such a big move?"

"It should be Guangda Securities, because at this moment, this company's Hong Kong stock has plummeted by 6 points, while other brokerage companies have basically remained unchanged.

"Oh my god! Look at it this way...it's really true that the straight up and down in the real market was caused by Guangda Securities."

Only a minute passed while the majority of retail investors screamed in exclamation.

As the underlying stocks and indexes continue to fall, the trading volume of the CSI 300 Index futures can further expand. Dozens or hundreds of short-selling orders appear in an endless stream to suppress buying orders, and the CSI 300 Index futures trading volume can be further expanded. The futures index broke through 2,400 points and headed towards a lower level.

And at the same time...

On the CSI 300 futures index, the big players in the market who had been killed both short and long before were all scolded when faced with the trend of killing shorts and then longs in the futures index.

"Manipulation, this is definitely market manipulation!"

"What the hell, all the long positions I established at 11:27 a.m. were forced to stop losses at this moment. Today's index trend is really poisonous!"

"The normal trend of the market cannot be so straight up and down. Someone is definitely manipulating the index."

"Today's trading in the futures index has obviously increased its volume many times. This shouldn't be a coincidence, right? Is this fund... borrowing the underlying stocks to manipulate the index, and then using the futures index to make profits?"

"It's possible that there are still a lot of funds on the market selling short orders."

"The more I look at it, the more similar it becomes. There are too many short-selling orders on the market. The CSI 300 futures index is already more than 90 points behind the current point of the CSI 300 index."

“It looks like the price difference is going to slide to over 100 points!”

"The discount is so obvious, it should be to induce everyone to go long on the CSI 300 Index futures, so as to create more rivals for the short-selling funds that are crazy at the moment, right?"

"If the other party really wants to sell the underlying stocks and control the index in the hope of profit, then this discount is obviously a trap to lure bulls."

"Damn it, the futures index and the current index have such a large discount range. If it is a trap to lure bulls, does it mean that the CSI 300 Index will continue to fall?"

"Inevitably, it is impossible for the two to always have such a large discount range. Usually a gap of 20 or 30 points is normal."

"I'll go... the selling is so fierce."

"Whether it's the underlying stock or the futures index, right now... I feel like I'm being maliciously shorted!"

"The Hong Kong stock market of Guangda Securities has collapsed, and the decline has expanded to 12%. Could it be that this incident is really the work of Guangda Securities? Isn't this guy... afraid of investigation by the trading supervision department of the exchange and the China Securities Regulatory Commission? It is obvious manipulation of stock prices and The market is being manipulated!”

And just when many big investors who were killed and had their positions liquidated and were forced to stop losses on the futures index were filled with indignation and indignation...

Inside Guangda Securities.

The entire investment and trading strategy department and all traders have been mobilized.

Following the instructions of the leaders of each trading group and the general manager of the investment and trading strategy department, everyone frantically sold all the stocks that could be sold in their securities accounts to withdraw funds, and at the same time, maximized their investment in the Shanghai and Shenzhen 300 Index futures. With a short order, I want to achieve the purpose of hedging as soon as possible and recover the losses caused in the morning.

At this moment, the Supervision Department of the Shanghai Stock Exchange Stock Trading Center and Futures Trading Center.

The crazy short-selling behavior of Guangda Securities has been monitored at the same time.

So, in less than 5 minutes, calls from the two supervisory departments came into Guangda Securities again. The leader of the supervision department directly yelled at the CEO of Guangda Securities: "What are you planning to do?"

In the view of the entire internal inspection department...

This remedial measure of Guangda Securities, with the help of crazy selling of underlying stocks and large-scale short selling of CSI 300 Index futures, has constituted suspicion of insider trading and market manipulation.

This sentence 'What are you planning to do?' is both a reminder and a warning.

Of course, if Guangda Securities' actual background was not state capital, the internal regulatory authorities would not even have this warning and directly restrict the opening of positions.

The CEO of Guangda Securities faced the other party's yelling and could only try to appease him.

At the same time, I was scolding my mother inside.

If we do not use this hedging situation to make up for the losses in the morning and make up for some losses and capital differences, the company will have no choice but to bear the billions of capital differences that will be settled before the next trading day. Overnight, credit goes bankrupt.

And such an ending is much better than the so-called suspicion of market manipulation and insider trading.

It was even more unacceptable to him.

So, after simply appeasing the other party and using the procrastination technique...

The entire investment and trading strategy department of Guangda Securities did not restrain its actions. Instead, it intensified its efforts to open short positions on the CSI 300 Index futures. At the same time, it further sold off all stock holdings of the entire company on a large scale. The first was to withdraw funds, and the second was to make all-out efforts. Kill the falling market and push the index down, so that you can reap huge profits on a large scale in the main contract trading of Shanghai Stock Exchange 300 Index futures to make up for the losses caused by buying chips in the morning.

As a result, Guangda Securities ignored the warnings of regulators and desperately shorted the market.

on the entire market…

All the stocks linked to Guangda Securities' proprietary investment plates have suffered a brutal sell-off at this moment. Tens of millions, hundreds of millions, or hundreds of millions of chips can be said to be desperate to escape, causing these stocks to Other investors who held shares suffered huge losses.

Then, coupled with the "big financial" weighted stocks that fell across the board after losing Guangda Securities' huge capital tray.

As well as the trend of futures indexes with serious discounts and endless short-selling orders.

Investment sentiment in the two cities quickly took a turn for the worse from the high at the midday closing stage, and slipped into depression and even panic as the trading hours went by.

And due to the impact of investment sentiment...

The selling in the market became more and more serious. It took less than 10 minutes for the major indexes to swallow up all the gains before midday, and... at 1:32, several major indexes went even further. It fell to an intraday low, with an average decline of 1%.

at this time……

Investors in the entire market looked at the extremely long antenna on the Shanghai Index and it was like a dream.

"Mr. Xu, please find out!" When the market had fallen underwater and panic began to spread, in the Magic City, inside Zexi Investment, Director Qiao of the company's market information department once again walked into the trading room and whispered to Xu Xiang Said, "The internal trading system failure of Guangda Securities has caused extreme changes in the market. At this moment, the China Securities Regulatory Commission supervision team is heading to the headquarters of Guangda Securities in Shanghai to investigate."

"Okay, thank you for your hard work!" Xu Xiang stared at the market that was still falling and the main contract trading surface of the CSI 300 Index that had reached 2322 points. He nodded lightly, "Continue to inquire about Guangda Securities. News, this news... is of great value to us."

After saying that, Director Qiao left.

Xu Xiang tilted his head and told the trading team led by Zhou Kan: "Continue to short the CSI 300 Index futures. Guangda Securities should be standing on the edge of the cliff this time. Their choices... won't be many."

"Okay!" Zhou Kan responded and continued to execute Xu Xiang's instructions.

At this moment, the bad news about "Guangda Securities' operational error" has not been truly known to the majority of investors in the market. In other words, the bad news is still there. In addition, in order to withdraw funds and make up for asset losses, Guangda Securities must not Do not sell underlying stocks or short-sell index futures for hedging.

Therefore, from various logics, the index still has obvious room to fall under the current situation.

Even if they have successfully speculated and obtained part of the profits, they have not yet reached the time to stop taking profits and safely exit the game.

at the same time……

Within Yanjing and Anlan Fund, Xie Wanting, who had also successfully speculated on the main contract of the CSI 300 Index futures, was secretly happy and felt a very satisfying sense of accomplishment.

Although she only established a total of 10 short selling orders using her personal account at the opening of the market in the afternoon.

The overall profit is limited.

But this was her prediction of the market one step ahead, and her prediction was absolutely correct.

The sense of accomplishment that this trading logic has been verified and that the trading strategy completely corresponds to market changes is far more important to her than simply making money.