Chapter 363 The craze gradually fades

Chen Mingluo's funds in the stock market have been withdrawn. Although the stock market still looks unlimited, Chen Mingluo feels that the risks are already very high. However, he still recommends keeping the Dechang Chemical stocks held by Yang Jier and Liu Qingmei for the time being. After all, this stock will become a big leader in the uptrend. If it is only 100 yuan, it is really not suitable to let go. There are really not many opportunities to find such a thing.

But Yang Jier still has some doubts about this matter. After all, the funds in her hands have exceeded 30 million and she has benefited a lot. She is still a little nervous about whether she can become a wealthy sister with an asset of over 100 million.

Chen Mingluo still has more than 200 million yuan in Changhong, Sichuan, and has not left the market for the time being.

In recent years, Sichuan Changhong's rise has been gratifying. Like Shenzhen Development, it has been a weather vane for stocks in the two markets.

"Why is the dealer still not moving?" In the trading hall, a stock investor was anxiously looking at the time-sharing chart of the stocks he held on the big screen, and murmured to himself in a silence.

Nowadays, most stocks are rising one after another, and those investors who are not in the turn are naturally anxious.

Yang Jier and Chen Mingluo stood by the stairs above the hall, talking while looking at the emotions of the investors.

This is also one of the main purposes of the two people coming to the stock market. It is said that this way can clearly observe the popularity and trend of the stock market, which is very beneficial for your own operations.

Yang Ji'er has been watching it for several months and has summarized some experience.

When the stock market grows best, there is a time when there are 70% or 80% of the people in the hall. Once it is ten or full, it is time to leave.

"I heard a joke about the dealer manipulating stocks-" Yang Jier suddenly said to Chen Mingluo, "A friend asked the dealer, you have been absorbing funds for almost three years, why haven't you raised the stock price? The dealer replied that, as far as I know, there is an old man in the thatched hut twenty kilometers away from the suburbs, holding 100 shares of this stock."

After hearing this, Chen Mingluo laughed, but didn't say much.

Although this is just a joke, in the two years since the end of 1995, dealers did fill the entire market.

The reason is naturally very obvious. From the end of 1995 to the beginning of 1996, the Shenzhen Stock Exchange and major securities companies had a difficult period.

At that time, stocks were almost profitable, new listed stocks were almost stagnant, economic growth was slow, and the stock market performed extremely poorly. The Shenzhen index fell 3.7 in 1993, 42.9 in 1994, and 22.3 in the year when inflation peaked in 1995.

The inflationary pressure just improved last year, and the Qiongminyuan incident, which was considered the first case of manipulating the stock market, appeared in the A-share market.

Before last year, Qiongminyuan's stock price was only two or three yuan, but last year, this junk stock turned over and soared into the sky. The stock price rose tenfold within a year. By this year, Qiongminyuan's stock price was 34 yuan.

After verified, Qiongminyuan's total profit in last year's annual report was 570 million, of which the fictitious profit reached 566 million, and the real profit was only four million, and the profit per share was only a few cents, but it fictitious earnings per share was more than 80 cents.

Starting from Qiongminyuan, the trend of fraud in domestic stock markets has gradually emerged, and the scale of fraud is getting bigger and bigger.

In this situation, institutions are ready to move.

In order to push the stock price higher, institutions have calculated that it is time for measures to redirect funds and people's interests back to the stock market.

Junan Securities seized this opportunity and started with Shenzhen Development.

Before the upward drama was staged, the price-to-earnings ratio of the entire market was less than ten times, while Shenzhen Development Bank's profits were expected to exceed 20%, but its stock price-to-earnings ratio was only seven times.

In order to increase the stock price of Shenzhen Development Bank, in January last year, many market participants, including Junan Securities, began to build positions in Shenzhen Development Bank. Subsequently, the stock began to rise a week before the Spring Festival, with an increase of 20%.

After the Spring Festival holiday, investors who realized that Shenzhen Development is profitable began to buy Shenzhen Development's stocks one after another.

Then, the overall environment improved.

Last May, the People's Bank of China announced a rate cut. In June, the Shanghai Branch of the People's Bank of China announced that it would welcome foreign securities companies to open business departments in Shanghai.

At the same time, Shenzhen Development Bank, which has been hovering around eight yuan, suddenly began to make efforts. Within a few months, Shenzhen Development Bank closed at fifteen yuan and five cents. The outstanding performance of the stock price stimulated market players to continue to manipulate the market.

Since March this year, under the leadership of Shenzhen Development and Sichuan Changhong, the Shanghai Composite Index has climbed from 870 points to the highest level of 1510 points.

At this point, a bull market in Shenzhen and Shanghai has been formed. The central government has paid close attention to the development of the stock markets in both places and finally decided to intervene. Rumors that regulators will take measures that are not conducive to Shenzhen's development have begun to spread in the market.

On April 19 this year, due to the punishment of the securities business department in Beijing, the board of directors of Shenzhen Development Postponed the shareholders' meeting and announced that the dividend distribution plan would be postponed until the end of October.

Two days later, Shenzhen Development released its annual report for this year, with operating income and profits increasing significantly, with a price-to-earnings ratio of more than 40 times, and the stock price eventually rose to 54.49 yuan.

"It is obvious that from last year to this year, Shenzhen Development's stocks have been manipulated, but who has intervened?" Chen Mingluo said to Yang Jier. "As we all know, Shenzhen-based Junan Securities has traded a large number of Shenzhen Development's stocks and is accused of making a lot of profits. Members of the Shenzhen Development Board also admitted that from March last year to April this year, Shenzhen Development invested more than 300 million yuan to buy its own stocks and obtained more than 90 million yuan in profits from the transaction. According to reliable news, they have sold all the stocks they hold. From these news, don't you think you can make some sense?"

"It is not allowed to buy and sell the stocks of your own company--" Yang Jier said in surprise.

"There are many things that are not allowed, but the more unsupported things, the higher the profits, and everyone will rush to do it. The so-called rule is to scare the people. When did you see the big zombies being hit?" Chen Mingluo replied disdainfully.

Chen Mingluo was very disdainful of many behaviors in the domestic stock market management. They didn't know how to regulate the capital market, or they had never considered seriously regulating the market. After all, who is too deep in it, and those who can enjoy it are big names or spokespersons of big names who can't afford to offend. A small China Securities Regulatory Commission cannot do such a big thing.

Although he was a little disdainful, Chen Mingluo also reminded Yang Jier that as Shenzhen Development faded out of the stock market and other funds were withdrawn, Shenzhen Development's revenue and profit growth slowly declined, stock trading volume was also slowly declining, and the market's popularity was also dampened.

It is understood that after the Shenzhen Development Incident, regulators began to ban banks and state-owned enterprises from using their own funds or borrowing funds to buy and sell stocks. Although this ban may not be so effective, it will also have a huge blow to the stock market.

"The wind direction has begun to change again-" Chen Mingluo said to Yang Jier.

The wind direction has indeed reached a time when it needs to change.

Last year was indeed a really exciting year, and it was also a really heart-wrenching year. How many people made a fortune and how many people lost a lot. In the entire history of world stock trading, last year's Chinese stock market was a year worth remembering.

Only last spring, the Shanghai Composite Index was hovering around 600 points. Since the stock index began to rebound from its lowest point of 512 points in early January last year, it has been difficult to rise every little. Stimulated by the good news of interest rate cuts on May 1 and August 1, the Shanghai Composite Index finally reached 870 points in July, and then maintained around 800 points, repeatedly switching hands. It was not until October that the Shanghai Stock Exchange began a decent rise, and the stock index reached a maximum of 1033 points. After a period of adjustment in November, the Shanghai Stock Exchange launched a strong rise in December, driven by the Shenzhen Stock Exchange.

In just less than a year, the Shanghai Composite Index rose by about 1.5 times, and the Shenzhen Composite Index rose by about 4 times. On average, if an investor invests one dollar in the Shanghai stock market at the beginning of the year, his yield is 150% at the highest point, while the Shenzhen stock market returns are 400%, not to mention that some stocks have risen far more than four times!

"Why did the stock market rise so much?" Yang Jier began to ponder this question.

"In fact, the reason is very simple. Just look at the data." Chen Mingluo explained to her, "In early December, the daily trading volume of the Shanghai and Shenzhen stock markets reached 35 billion yuan. The number of account openings of shareholders in the Shanghai and Shenzhen stock markets has reached more than 20 million, which doubled from the beginning of the year. Simply calculate, the new investors who have added more than 10 million yuan, even if each person brings 20,000 yuan in funds, is 200 billion yuan. Moreover, there are many institutional investors among these newly opened accounts, and there is no count of how much corporate funds they bring. In short, hundreds of billions of funds have poured into the small market with less than 500 stocks. No wonder the stock market is rising so loudly."

Yang Jier nodded, thinking that this consideration was correct.

She recalled the beginning of the year, when the circulating market value of the Shanghai and Shenzhen stock markets was about 100 billion yuan, and the daily trading volume was only about 1 billion yuan. At the end of the year, the daily trading volume of the two markets increased to more than 30 billion yuan, and the circulating market value reached more than 30 billion yuan. This is still the case when the regulatory authorities repeatedly cooled down. If the regulatory authorities were free, the stock market would not know how far it could rise.

The situation is already very obvious. The capacity of the Shanghai and Shenzhen stock markets is relatively small. As the people are showing more and more enthusiasm for securities investment, the pace of stock listing and the speed of market expansion are obviously no longer keeping up with the demand for funds.

In this case, new funds can only swell around existing stocks, making the stock price high and increasingly deviate from the investment price.

Yang Jier vaguely remembers that when the listing quota of 5.5 billion was announced at the beginning of the year, people were still scared, fearing that the new psychology would hover over the stock market like a ghost for half a year.

But practice over the past year has proved that the 5.5 billion quota is like a drop in the bucket under the huge injection of peripheral funds. By the second half of the year, although almost a few new stocks have been listed every day, they cannot keep up with the demand for new funds.

In this case, the management department and the Shanghai and Shenzhen exchanges are still following the steps. When the stock price is driven to the sky by market forces, the new stock listing work is still in the eight-character step. No wonder the stock price is about to rise to an unreasonable level.

The popularity of Shenzhen City has really made the Shenzhen Stock Exchange, which has been sluggish for two years, breath out a lot.

Inspired by the good news of Hong Kong's return, the stock index in the Shenzhen Stock Exchange quadrupled, which is also rare in the history of the world's stock market.

But at this high point, the stock market is still restless. Even under repeated warnings from regulatory authorities, there is still an uncontrollable upward momentum, and things have become a bit too much.

Finally, at the end of last year, the People's Daily published an article by a special commentator, "Correct understanding of the current stock market", which seriously criticized the abnormal development of the stock market and many unhealthy cheating.

This article is like a bombshell. On that day, the Shanghai and Shenzhen markets fell 10% in one go, and the trading volume suddenly shrank from more than 30 billion in the previous few days to 2 billion. The stock market continued to fall 10% the next day. On the third day, after most of the day, the market rebounded at the end of the market, but fell sharply again on the fourth and fifth days.

During this period, a rare figure in the world's stock market appeared on the display screen of the exchange business hall. As soon as the market opened, the transaction price hit 10% lower than the previous day. The trading fluctuation line stretched forward flat at 10% below the index line on the previous trading day, and there was no fluctuation from the opening to the closing.

This is because the increase or decrease is limited, and the up or down does not exceed 10%. Otherwise, I really don’t know how much the stock market will plummet in one day.

"Are I leaving or staying now?" Yang Jier asked a very important question.

Although the dealer of Dechang Chemical still did not leave, Yang Jier was still a little nervous when she saw the market was about to change, because she didn't know when the other party would move. After all, Dechang Chemical's profits are already very high now, and the profit of more than 30 million made her feel a little stressed.

Sometimes, she really wants to leave and no longer expect the opportunity of this billionaire.

"It's not the time to leave now-" Chen Mingluo replied, seeing that Yang Jier didn't seem to understand, so he continued, "In the case of bad market, it is actually more conducive to the market makers to raise the stock price."

"Why is this happening?" After hearing Chen Mingluo's words, Yang Jier felt even more incredible.

According to Yang Jier's understanding, when the stock market is getting better, the amount of funds is abundant, and the emotions of investors are high and blind, which is the best time to take action. However, the situation is about to change. Once the situation reverses, how can the dealer successfully achieve his goals and raise the stock price?
Chapter completed!