Chapter 59: Doubling the 50 Index with Eyes Closed?
Huayu immediately stood up upon hearing the words and quickly led Fang Hong out of the CEO's office. The two made their way to the company's trading floor—a critical area where only authorized personnel were allowed entry.
After a brief walk, they arrived at the trading room, where eight traders were already working diligently.
Contrary to popular belief, the profession of a trader is not as glamorous as it seems. Many traders might not even match the skill level of seasoned independent investors. Their primary role is to execute orders as per the fund manager's instructions rather than making their own investment decisions.
For example, in many fund companies, a fund manager issues a trading directive, and traders strictly carry it out without deviation.
Standing in the center of the room, Huayu called for the traders' attention. "Everyone, listen carefully. This is Fang Hong," he announced. "He is the trader I have personally invited to take full control of our company's trading operations. From now on, you are to follow his trading instructions without question. Do you all understand?"
"Understood!" the eight traders responded in unison.
Despite their formal agreement, many of them couldn't help but glance at Fang Hong with curiosity. Who was this young man? Why had Mr. Hua entrusted him with managing an astronomical sum of one billion yuan?
Fang Hong, however, remained unfazed. Without giving a speech or unnecessary explanations, he turned his attention to the multiple screens displaying real-time market data. The call auction had already ended, and there were still about forty minutes left before the market opened at 9:30 AM.
Huayu stayed behind in the trading room, watching closely. He was eager to see what stocks Fang Hong would choose and whether he truly had the ability to manage such a massive fund.
He was also tempted to ask: Did Fang Hong already complete his due diligence? Or was he trading purely on instinct?
Managing a ten-million-yuan fund was completely different from handling one billion yuan.
Just then, Fang Hong, who had been silent all along, suddenly entered a stock code into the Shenzhen Stock Exchange system: 000983 – Shanqi Coking Coal.
The stock was opening at 8.03 yuan per share with a market capitalization of 19.4 billion yuan. Based on Fang Hong's analysis, the stock was likely to dip below 7 yuan in the coming week. However, within the next nine months, he predicted a massive surge to 43 yuan per share, representing a more than fivefold increase.
Fang Hong even considered going all in—"stud" the entire position—at the 5% price fluctuation threshold. If he invested the entire one billion yuan, he could make a staggering +350% profit in under nine months.
The upside was enormous, and the stock's trading volume was currently quite low—sometimes less than 100 million yuan per day. However, once the government's "4 Trillion Yuan Stimulus Plan" was announced, its trading volume would skyrocket more than tenfold, averaging around 1 billion yuan daily, with occasional spikes above 2 billion yuan.
If he chose to go all in, he could simply offload his shares when the liquidity was high. Although he wouldn't be able to exit in a single day, distributing the shares over multiple sessions would not be a problem.
However, Fang Hong ultimately decided not to go all in.
His reasoning? He was wary of leaking position information, which could lead to malicious interference—or even a backstab from Huayang Group.
Therefore, he opted to divide his positions strategically, ensuring that even if his trades were exposed, they wouldn't be easily manipulated. His main investments would be in high-market-cap stocks, worth over 100 billion yuan, ensuring strong liquidity.
With this strategy, even if his position details were leaked, no single entity could influence the market against him—because his trades were aligned with the overall A-share market trends.
After making up his mind, Fang Hong issued his first trading directive:
"Shanqi Coking Coal (000983) – Accumulate up to 25 million shares. The average cost per share must not exceed 8.15 yuan. Any shares purchased below 8.15 yuan will be eligible for a performance bonus—30% of the price difference will be split among the eight traders."
The room fell silent.
The traders, along with Huayu, were stunned.
Allocating 200 million yuan for a single stock was an aggressive move. However, the performance-based bonus was even more shocking—the lower the traders managed to buy, the bigger their reward.
Was there really such a generous deal?
With just two minutes left before market open, Fang Hong spoke again.
"Based on my estimates, this stock's total transaction volume for the week will be around one billion yuan. Its price will likely bottom out below 7 yuan. I expect you all to complete the 25-million-share acquisition within this week. If you succeed, you will be rewarded handsomely. If you fail—pack your things and leave."
The traders exchanged uneasy glances.
Without Fang Hong's warning, some of them might have chosen to wait for an even lower price, delaying the purchase. However, this would mean missing the last golden window for accumulating shares, potentially forcing them to buy above 10 yuan per share later.
Realizing the urgency, Huayu stepped in. "Whatever he says in the trading room is final," he declared.
The traders were startled.
If they failed, they would be fired.
Although they had no idea about Fang Hong's background, Mr. Hua's statement made it clear—Fang Hong's orders carried absolute authority.
At 9:30 AM sharp, the market opened, and Fang Hong started issuing trading instructions rapidly.
Second Target: Zhongjin Gold (600489) – Invest 200 million yuan within nine trading days. Holding cost must not exceed 25.50 yuan per share. Bonus scheme remains the same.
Third Target: Pufa Bank (600000) – Invest 200 million yuan within two days. Average transaction price must not exceed 12.40 yuan per share.
Fourth Target: Xingye Bank (601166) – Invest 200 million yuan within a week. Average transaction price must not exceed 13.50 yuan per share.
Fifth Target: Zhongxin Securities (600030) – Invest 200 million yuan within two days. Average transaction price must not exceed 17.00 yuan per share.
Zhongxin Securities, in particular, was a stock with huge trading volume. Unlike other A-share stocks, it had a daily turnover exceeding 5 billion yuan, occasionally peaking at 70 to 80 billion yuan. Its liquidity was so high that even a billion-yuan investment would barely affect the market.
Within three minutes of market opening, Fang Hong had allocated the entire one billion yuan across five carefully selected stocks—each receiving 200 million yuan in investment.
Three of these stocks were financial sector giants, making Huayu hesitate.
As soon as they returned to the office, he finally spoke up.
"Brother Fang, isn't this position too concentrated? Won't the risk be too high?"
Fang Hong took a sip of water and replied calmly:
"If my prediction about the 4-trillion-yuan stimulus is correct, then the resulting credit expansion will exceed 20 trillion yuan. The real estate market has been in decline for over a year—this influx of money will flood into real estate, infrastructure, and urban expansion. Personal credit business will skyrocket, which is why I'm heavily invested in financial stocks."
He added with confidence, "Every crisis creates a golden opportunity. I won't quote Keynes, but let me put it simply—if you close your eyes and go all in on the SSE 50ETF Index, you should at least double your money. Anything below a 100% return is unacceptable. I'm just picking the best options."
Huayu: "..."
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End of Chapter.