Anshi Group, President's Office.
"Father, the repurchase department reported that the company's stock price has changed today, and some significant investors are buying heavily, attempting to pull the board," An Jinhong reported to his father, An Qilong, the returnee responsible for the repurchase department at Anshi Group.
"Wasn't it sealed?" An Qilong inquired.
"I brought it down," An Jinhong replied. Of course, the stocks that were sold off didn't belong to Anshi Group, allowing them to manage such transactions without announcing a reduction in holdings. The group had its channels for such large-scale operations.
An Qilong nodded with satisfaction, "It's not surprising that someone pulled the platform today. It should be due to the arrival of rescue funds, and they'll likely continue buying back tomorrow. How much has been repurchased?"
An Jinhong responded, "The cumulative repurchase exceeds 60 million shares, and the family holding has indirectly increased to 15%."
An Qilong nodded in silent approval. He sighed softly and remarked, "The company's shareholding structure has significant loopholes. The most significant drawback is the scattered ownership. The repurchase plan must be completed this year to ensure the family's control over the company."
This realization came to An Qilong in recent years, prompting him to hire a lawyer to revise the articles of association for Anshi Group. The lawyer discovered a critical flaw in the company's control structure. If targeted by malicious capital, the company could lose control. This revelation sent a shiver down An Qilong's spine.
Now, he could only address this slowly. Fortunately, An Qilong recognized that he was the soul of An Group, and his control over the company remained as stable as Mount Tai.
It's worth mentioning that during the market crash in mid-to-late June, Anshi Group announced a high-profile 20 billion plan to support the market, intending to make acquisitions as the market experienced a slight downturn. However, the result was a purchase of less than 1 billion.
...
On Tuesday, July 7th, Big A opened with a limit for 1,000 shares. The main board closed at 3727.12 points, a decrease of 48.79 points or -1.29%, and the Shenzhen index closed at 24845.49 points, down 141.82 points or -5.69%.
Due to a high number of suspended companies, this decline essentially represented the limit for all stocks. Only 84 stocks in the two cities experienced gains, with Oil Bank almost reaching the limit. Meanwhile, 1,931 stocks in the two cities fell, with over 1,700 of them hitting a downturn.
Today, Lu Ming continued his "sneak attack" on Anshi Group, continuously procuring shares in the secondary market. The Anshi Group's acquisition team managed to bring down the stock price at the market opening.
As Lu Ming contemplated the future stock price of Anshi Group and compared it to the current price, it could be aptly described as the floor price—no, it should be termed the basement price.
By day's end, Tiansheng Capital's special account had invested nearly 2.4 billion yuan, acquiring 179.9 million shares of Anshi Group. Tiansheng Capital now held a total of 596.9 million shares, accounting for 3.7778% of the total shares of Anshi Group, steadily approaching the 5% threshold.
Wednesday, July 8.
Half an hour before the market opened, Lu Ming found himself amidst a sea of panic as he observed the pre-market news. The entire Big A was in turmoil. According to the news, the China Insurance Regulatory Commission had adjusted the regulatory ratio of insurance funds investing in blue-chip stocks, increasing the upper limit from 5% to 10%. Funds already invested up to 30% in equity assets could further boost their holdings of blue-chip stocks.
Although the management encouraged investing in these high-quality core assets, the prevailing market panic made investors skeptical, interpreting it as an attempt to deceive them into taking over.
As the market opened in the morning, the call auction results were disheartening. The main board opened lower by -6.97%, dropping 259.72 points, closing at 3467.40 points. Only 7 stocks in the two cities experienced gains, while more than 1,300 stocks fell by the limit, with over 1,400 listed companies suspended from trading—a unique and distressing situation for Big A.
Despite the gloomy market sentiment, Lu Ming seized the opportunity and issued an order: "Tiansheng Value Growth Hybrid will enter the market today to hunt for the bottom. The top five stocks with heavy holdings will all enter the market until the maximum position limit of each stock is reached!"
For the past two days, Tiansheng's value growth mixture had consecutively reported a decrease in net value. This occurred while Lu Ming managed the fund with a lowered position, experiencing a minor downturn along with the overall market.
In this tumultuous environment, Tiansheng Value Growth Mix showed resilience against the falling market. While other funds were on the verge of falling below, Tiansheng Value Growth Mix maintained a drawdown of just over 3 points.
Since the start of the week, this marked the first time that Tiansheng Value Growth Mix witnessed a retreat in Lu Ming's trading. Some internal profit funds left, but the outflow was considerably less than the incoming funds. In the past two days since Tiansheng Value Growth Mix opened for subscription, investors bought a total of 3 billion yuan. The net purchase of 2.5 billion pushed the capital to a level of 5 billion.
As soon as the market opened that morning, traders swiftly followed Lu Ming's instructions, entering large positions. Tiansheng's top ten stocks, except for Anshi Group and Maotai, all opened at a lower limit.
Anshi shares opened sharply lower and quickly hit the lower limit. In a single sweep, Tiansheng Capital procured 500 million, and other heavily-held stocks also began accumulating significant positions. Twenty minutes after the morning opening, Tiansheng's value growth mix achieved a 95% stockholding, reaching full positions.
"The company's institutional account continues to buy Anshi shares!" Lu Ming conveyed the order in the trading room: "Today's sweeping over 3 billion!"
Traders executed the orders promptly. Tiansheng Capital continued to buy, causing the stock price to plunge to the limit of -8%, awaiting a fall. The market sentiment reached a freezing point.
In less than half a minute after Tiansheng Capital withdrew from the market, the soaring stock price of Anshi Group abruptly fell, sealing the limit down again. The plate was pried open again shortly after, diving repeatedly.
"Mr. Lu, we have accumulated more than 5% of the total shares of Anshi Group, and we have met the requirements for raising the placard!" Li Mingyang reminded that after surpassing 5%, the placard-raising mechanism must be triggered.
"Okay!" Lu Ming nodded.
By day's end, Anshi Group's share price reported 12.26 yuan, a drop of -8.87%, with a turnover of 21.7 billion. Tiansheng Capital bought a total of 196 million shares that day. The total shareholding reached 792.9 million shares, accounting for more than 5.018% of the total. For this, it had already spent 10.4 billion.
This amounted to a real loss of 10.4 billion. However, Lu Ming wasn't concerned about the floating losses. The crucial point was the number of shares he held.
One hour after the market closed, Tiansheng Capital officially started to raise 5% of Anshi Group in the secondary market, declaring in the announcement that it would be a long-term strategic financial investor in Anshi Group.