Chapter 40: Big A is about to rise again and go all the way to hot money
On the first trading day after Big A returned from the festival, Zhongxin Securities did not open. The company was holding its first shareholders' meeting of the year, so trading was suspended today and would resume tomorrow.
However, the stockholders who had locked their positions in Zhongxin Securities were already panicking. With the market moving like this, the resumption of trading for Zhongxin Securities would likely involve a significant correction.
As expected, Murphy's Law kicked in—the more people feared, the worse the outcome.
On Tuesday, October 7th, when the market opened, Zhongxin Securities immediately dropped by more than 7%. After a brief rebound to lure more investors, it turned around and started a rapid decline, entering a "waterfall mode" as it hit the daily limit within just three minutes.
Though the price limit was lifted ten minutes later, and the stock rebounded slightly, narrowing the drop to -4%, it quickly fell again in the afternoon, and by the end of the day, the stock hit its limit down once more.
Zhongxin Securities' trading volume today reached a staggering 7.69 billion yuan. To put this into perspective, the total trading volume for the Shanghai Stock Exchange Index was 47.2 billion yuan, meaning Zhongxin Securities accounted for over 16% of the market's total trading volume.
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The following day, Wednesday, October 8th.
Zhongxin Securities continued its sharp decline. The stock opened lower and dropped further, accelerating its fall in the late trading hours, with a loss of more than 9%.
At around 14:42, Fang Hong made his move, investing 9.09 million yuan into the stock. In just one minute, more than 40 million yuan was traded, and about one-third of the shares changed hands, with Fang Hong acquiring 4,490 lots at an average price of 20.26 yuan.
As a result, Zhongxin Securities rebounded by more than 2%, and after the market closed, it reported a decline of -6.64%, closing at 20.80 yuan per share. Fang Hong's investment that day made a profit of +2.66%, earning an absolute profit of 242,400 yuan. His total assets now amounted to 9.34 million yuan, with an accumulated return rate of +14,902.33%.
With funds approaching tens of millions, Fang Hong adjusted his trading strategy accordingly. He moved away from smaller stocks and focused on large-cap stocks—those with a market value of 100 billion yuan or more, which had large trading volumes and short-term fluctuations of over 10%. These stocks presented higher returns.
While the absolute return increased with the larger funds, Fang Hong had other reasons for the shift in his strategy. Stocks that could surge by the daily limit were typically smaller-cap stocks, with trading volumes of a few million shares. But Fang Hong's current capital was pushing toward tens of millions, so trading small amounts was no longer worthwhile. Large funds would move the market, and those involved in "Zhuang" (manipulating the market) were unlikely to tolerate this large capital. Therefore, Fang Hong's best course of action was to focus on bigger stocks with more predictable moves.
Fang Hong knew he had likely drawn attention with the rise in his returns. Although no one was publicly showcasing it yet, his performance was certainly being noticed by brokerages. As his returns soared, he became increasingly cautious, realizing that he could not afford to make reckless moves.
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The next day, Thursday, October 9th.
The A-share market opened today, and Zhongxin Securities saw a slight recovery, opening up +0.87%.
Fang Hong held off on making any moves until around 11:20, when the stock price of Zhongxin Securities rose to 22.13 yuan. When the price increase expanded to +6.39%, he decided to exit. In one click, he sold all his holdings, moving over 28 million yuan in just one minute, with Fang Hong's share being over 9.8 million yuan.
The 4,490 lots he held were a significant order. His action of selling created a ripple effect, driving other investors to follow suit, pushing the stock to its intraday high of 22.13 yuan before it began to fluctuate again.
Fang Hong's profit for the day was 466,900 yuan. After completing the sale, he refrained from purchasing any more small stocks and instead decided to wait for the market to open again tomorrow to secure a better deal. His focus remained on big stocks, avoiding smaller, riskier plays.
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Looking back at his growing influence:
After the market closed, Fang Hong noticed that his reputation points were rising rapidly. His reputation had accumulated to 35,700 points, tripling since the previous day.
Fang Hong quickly checked the Tianya Forum and found a post by Cao Chenghui, using the ID "weathered salted fish." This post was getting a lot of attention.
"It worked..." Fang Hong thought as he read the post. The comments on it had exploded, with over 3,000 replies. Cao Chenghui, known as "weathered salted fish," had accurately predicted the downturn in Zhongxin Securities.
For stockholders who didn't know the full story, it appeared as though Cao Chenghui had perfectly timed the market, buying at the bottom and selling at the peak. The forum was full of praise.
"Great god, you're amazing!"
"You predicted the fall after the festival and nailed it perfectly!"
"I was so scared after the price hit the limit down. I cut my losses immediately. According to your prediction, it was right to sell!"
"I have to say, Big A really hides some major players!"
"My idol is now officially Tianya's stock guru, 'weathered salted fish!'"
The praise for Fang Hong's actions and his prediction skills skyrocketed. As "weathered salted fish," Cao Chenghui's post had become a topic of admiration, especially among retail investors.
Fang Hong smiled to himself. This growing reputation was helping him gain more recognition in the stock community, and it was reflecting in his social fame points, which were rising fast. Soon, he would accumulate enough points to exchange for an item card.
Meanwhile, Fang Hong's influence also radiated to other platforms like Xinhong Securities and Huayang Capital, where his impact continued to grow.
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By Friday, Fang Hong had reached a critical milestone. He was no longer just another retail investor; he was becoming a name to reckon with in the stock market.
The A-share market had more surprises in store for him, but for now, he was content with his strategy—taking profits, maintaining control, and managing his rapidly growing capital.
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End of Chapter 40
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