Chapter 35: The Market Index Hits the Daily Limit
At the same time, Cao Chenghui, who was at home, had almost filled his position in Zhongxin Securities after the morning meeting and reported the limit price. Since his boss had stopped going to the internet cafe, naturally, Cao Chenghui stopped going there as well.
Even though Cao Chenghui was now speculating in stocks in front of his wife at home, it didn't matter.
Ever since he made millions with his boss, Lao Cao had transformed, and his family had quickly recognized him as the "emperor" of the household.
"Husband, do you really trust your boss? It makes me nervous just watching this! What if…" At this moment, Cao Chenghui's wife sat next to him, her anxiety evident. In her view, stock trading was no different from gambling and not something for ordinary people to attempt.
Her concerns had grown, especially with the sharp drop in the stock market this year. News of stockholders going bankrupt, families being torn apart, and people jumping from rooftops had been common.
Her worry stemmed from the fact that her husband had borrowed money from various sources, even using short-term loans, and had quickly turned over more than one million yuan. Now, the total amount had grown to nearly 2 million yuan, which had been directly invested in Zhongxin Securities.
Just as her concern reached its peak, at 10:08 AM, Cao Chenghui, who had been staring at the stock chart, suddenly shouted with excitement, "It's really happening! The limit has been hit, haha!"
"Did you hear me?" His wife snapped in dissatisfaction.
"I heard, I heard. Just look at the screen yourself," Cao Chenghui said, his eyes still glued to the chart. "The trend for Zhongxin Securities today is exactly as predicted by the boss. It's dropped to the limit. There's nothing to worry about now. Just relax, and we'll sit back and wait for the wealth to roll in."
"What if it continues to drop?" his wife asked, still uneasy.
"Impossible! Absolutely impossible!" Cao Chenghui responded confidently. "The boss said that today's price limit is the lowest we'll see in the near future. It will rise from here. The target price is 24 yuan. Once it reaches that, we can sell it and make more than a million yuan."
Cao Chenghui had complete trust in his boss's words, and no doubts lingered in his mind.
"It's a done deal! Oh yeah!" he shouted as he watched his securities account. After Zhongxin Securities hit the limit, all of his orders were successfully filled. In the minute after hitting the limit, Zhongxin Securities traded more than 70 million yuan.
Not only did the 2 million yuan Cao Chenghui had invested change hands, but Fang Hong's more than 5 million yuan also successfully changed hands. This was because both of them had placed their bids earlier, and according to the rules of price and time priority, orders placed first at the same price were executed first.
Cao Chenghui kept his eyes on the screen throughout the afternoon, his wife still sitting beside him, increasingly anxious.
"The board is open, and it's starting to rise!" Cao Chenghui exclaimed, excitement in his voice. His wife, now understanding the screen's white line that rose and fell, was beginning to grasp the basics.
It was around 2:30 PM when Zhongxin Securities experienced its second limit-down and reopened. From there, it started climbing steadily. The drop had narrowed to -1.93%, and Cao Chenghui's purchase at the limit-down price had paid off, rising from 15.42 yuan to 16.8 yuan, with a profit of 8.94%.
He turned to his wife with a triumphant smile and said, "See? You've already earned 9%, which means 170,000 or 180,000 yuan in profit. Not bad, right?"
"Wait… did you really make 180,000 yuan that quickly?" His wife stared at the screen in disbelief. She sighed deeply and added, "Now I understand why so many people get addicted to stock trading."
"That's the power of the boss. The Stock God is no exaggeration. It's hard not to get rich if you follow him," Cao Chenghui said proudly.
Just then, his wife looked at the screen again. "Hey, is it falling again?" she asked.
Cao Chenghui glanced at the chart. Zhongxin Securities had indeed fallen again, reaching -5%, but he wasn't worried. "It's fine, we're still in the green with 5% profit. Making 100,000 yuan today is not bad at all."
"It's gone down 80,000 yuan in just a short time?" His wife was again shocked.
"Don't worry, don't worry. It's just market fluctuations," he reassured her. "Anyway, the boss said the price will rise to 24 yuan, and once it does, we'll sell."
"How much do you think we can earn in total?" his wife asked curiously.
"Let me do the math." Cao Chenghui quickly grabbed the calculator and made a few calculations. "From 15.42 yuan to 24 yuan, if we sell, after handling fees and interest on the loans, we'll make about 1.07 million yuan."
His wife was stunned by the figure. She didn't know what to say but felt immense happiness. She never expected her husband to have such luck and to have met someone with such extraordinary foresight.
"Pour me a glass of water, will you, dear?" Cao Chenghui requested calmly.
"Okay, okay, Mr. Cao!" His wife rolled her eyes playfully, but with so much money at stake, she was more than happy to fulfill his request. She could now live a life of wealth and freedom, taking care of their children while enjoying comfort.
...
Later that evening, the stock market management released three major news announcements, all of which were bullish for the market. This news immediately ignited a frenzy in the capital market.
The most important news was a further reduction in the stamp duty. Starting today, the stamp duty on securities transactions would be adjusted from bilateral collection to unilateral collection, with the rate remaining at 1‰. Investors were ecstatic.
The last time the stamp duty was reduced was on April 24, when the market had just fallen below 3000 points. Experts at the time had pushed for the reduction of stamp duty, and when it was implemented, the market had surged by over 9 percentage points.
With today's announcement, the policy was further relaxed, and investors were anticipating a dramatic rise, just like the previous time.
...
The following day, Friday, September 19, marked the last trading day of the week.
Stimulated by the three major positive factors, including the unilateral imposition of stamp duty, the stock market call auction opened with a 9.06% increase, reaching 2067.64 points. The market saw an incredible spectacle with stocks hitting their daily limit one after another.
Zhongxin Securities also hit its daily limit without any surprises, and the entire securities sector followed suit.
Fang Hong didn't check the market that day, as he went straight to class. This was the first time since the semester began that he attended all his classes without skipping, knowing that the market had no surprises that day. He already knew that Zhongxin Securities would be the star of the day and would continue to rise.
After the market opened, the Shanghai Index dipped by 1% in the first five minutes but quickly rebounded and continued to rise.
An hour after the market opened, the stock index had reached 2074.94 points. The market index surged straight to the daily limit!
The two cities were alive with excitement, as more than 1,400 individual stocks hit their daily limit, with investors celebrating their gains.
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