At the close of the day, Anshi's shares were reported at 21.79 yuan after the market, hitting the limit and causing a significant loss of -14.28% for investors who intervened from the day's high point.
Anshi's shares were immediately listed on the Dragon Tiger List, with a total net sales of 1.752 billion yuan. The sheer magnitude of funds fleeing left many investors startled.
In Tiansheng Capital's headquarters, in the CEO's office, Lu Ming studied Anshi Group's K-line chart on the computer screen. Recognizing the standard dark cloud cover pattern, he couldn't help but smile. Both sides of the game believed the other had fallen into the trap they set, creating a complex scenario of nesting dolls.
On Thursday, August 6, Anshi's shares opened lower, creating a horror story. Within a minute, they dived and hit the limit down, with an overwhelming number of orders on the board – 2.55 million. The transaction volume was minimal, and after five minutes of opening, there was barely any trading activity.
By Friday, August 7, the situation worsened. The stock hit the limit down again, with over 5 billion selling orders on the board. Inside investors were stunned, and the comment section echoed with frustration and despair.
"Can you believe this blue-chip stock on horseback has dropped the limit three times in a row without any warning?"
"The main force is trying to kill, Wori!"
"Who smashed the plate, is it the first brother?"
"It's said that the first brother's leeks. Let's first understand the rules of the game and then play with Big A. He holds a sign for Anshi Group, and it will take half a year to sell the stock in his hand. It must be someone else."
"Aren't you afraid of being punished by God for such a mess!"
"I think someone is targeting a brother."
"It's too rich on paper, why don't you leave after 25 yuan? If you drop another board, you will hurt the principal. I'm not willing to sell it here!"
On Monday, August 10, Anshi's share price continued to fall by the limit, closing at 15.88 yuan. The downward trend persisted on Tuesday, August 11, with Anshi Group's stock price hitting the third limit and closing at 14.29 yuan. This continuous flash crash attracted widespread attention, bringing Anshi Group and the "Antian War" into the spotlight.
"The stock price is definitely being manipulated. Doesn't the management check it out?"
"The limit fell in a row, and it lost -43.78% in five days from the high point, which is basically cut in half. Is this a big blue chip?"
"The management encourages the increase in the holdings of big blue chips. Who dares to increase their holdings in this trend."
"The village chief has already sent an inquiry letter to the senior management of Anshi Group, asking about the recent abnormal stock price of Anshi Group. It seems that the village can't stand it anymore."
"This Nima is daring, and his front feet are encouraging to increase his holdings of big blue chips. You just collapsed like this. It's not the face of the village chief!"
"For a 25-dollar book, I've been beaten to the point of being confused and unconscious~~"
The majority of ordinary investors remained fixated on the "Antian War" news hotspot and the plummeting stock price of Anshi's shares, overlooking a significant event that unfolded on August 11 – the double-pegged exchange rate reform, aptly referred to as the "811 Exchange Reform."
In his office that afternoon, Lu Ming diverted his attention from An Group's affairs to scrutinize the implications of the exchange rate adjustment. With a deep breath, he murmured, "Have you finally begun to make arrangements in advance to deal with various international short-sellers offshore..."
Anticipating an imminent battle in the foreign exchange market, Lu Ming contemplated how Tiansheng Capital could strategically intervene in this currency war. He envisioned Tiansheng Capital as a guerrilla force, operating behind enemy lines – a flexible independent combat force capable of disrupting Wall Street's maneuvers and exploiting their weaknesses.
Considering the gravity of the opponent's losses, Lu Ming foresaw astronomical profits for Tiansheng Capital. While acknowledging the challenges of moving funds overseas, he believed the previous conversation provided a unique advantage. This time, they aimed to "encircle and suppress" international shorts targeting the RMB exchange rate.
Lu Ming understood the broader significance of the "811 Exchange Reform." The RMB, now a player on the world economic stage, faced challenges from international financial capital. The reform was a crucial measure to prepare the RMB for the looming uncertainties and potential control by the U.S. dollar.
Reading the disclosed contents of the reform, Lu Ming observed four major elements:
1. Two-way floating elasticity was significantly enhanced, breaking free from the previous unilateral appreciation situation.
2. The regularity, transparency, and market level of the formation of the middle price were greatly improved.
3. The reform aimed to ease the pressure of cross-border capital outflow.
4. A shift from focusing on the U.S. dollar to gradually referring to a basket of currencies, increasing the flexibility and stability of the RMB.
Lu Ming recognized the long-term vision behind this move, intertwined with the breakthroughs of the RCEP and the Zhongyu Agreement. Despite the outside world's limited interpretation, he believed the giants behind the scenes had seen the long-term pattern and were strategically preparing for the future.
The "811 Exchange Reform" was more than an immediate response; it was a calculated step towards securing a stable and flexible future for the RMB in the global economic landscape.
The U.S. dollar, despite not yet undergoing an interest rate hike, has demonstrated sustained strength through the U.S. dollar index, signaling an imminent trajectory towards such hikes. In response to the potential adverse effects of U.S. dollar interest rate hikes, the domestic strategy for the next few years involves a series of continuous Reserve Requirement Ratio (RRR) cuts. The plan is to lower interest rates to stimulate housing prices, subsequently influencing the devaluation of the renminbi.
Lu Ming is acutely aware that the domestic housing market is poised for a rapid and pronounced surge starting next year, a prospect that may baffle those less informed about the situation. The housing market appears to be flourishing.
However, Lu Ming maintains no interest in entering the real estate sector, even for pure investment purposes. His reasoning is straightforward – he doesn't want to impede the national economy. Conversations with Wang Ju provided insights into the cause and effect, revealing the risk of pushing the real estate bubble to dangerous heights. While some might see it as daring, Lu Ming views it as a reckless venture teetering on the edge of disaster.
For others, engaging in real estate might be one thing, but for Lu Ming and Tiansheng Capital, there are numerous lucrative opportunities beyond the housing market.