Chapter 62 : Here We Come! The Four Trillion Stimulus is Here!
With today's sharp surge in the market, many investors who had been skeptical of "Weathered Salted Fish" yesterday could no longer remain hesitant. The explosive rally left them with no choice but to follow the trend and start purchasing SSE 50ETF.
Even those who had doubts the day before ultimately convinced themselves that the master's judgment was beyond their understanding. If he claimed something was impossible, it must mean their knowledge was far inferior to his.
Moreover, unlike stock market analysts who only talk without investing, the master himself had gone all in with his own funds. What reason was there to hesitate?
For ordinary retail investors, doubling their returns in just six months was unheard of. Even achieving a 30% or 50% profit would make them ecstatic.
At the same time, Fang Hong liquidated his position in Zhongxin Securities at around 11:19 AM when the stock surged over 8%. He opted to sell at a premium, planning to re-enter tomorrow at a lower price to secure a better cost basis.
Currently, Fang Hong was managing his personal account, focusing on arbitraging Zhongxin Securities, one of the most liquid and actively traded stocks in the market.
After checking his investments, Fang Hong glanced at his growing Reputation Value. He had already read the updated content posted by Cao Chenghui on the Tianya Forum yesterday, but the increase in Reputation Value was only moderate.
"Still, it's a good gain—over a million," he muttered to himself, noting that his accumulated Reputation Value had now reached 8.23 million. Clearly, the content update and today's market surge had played a major role in this growth.
The market index had climbed 4.7% intraday, while the SSE 50ETF had outperformed significantly, reaching an intraday peak of over 6%.
Since Cao Chenghui had posted the update at noon the previous day, retail investors who followed him had a two-hour window to copy the trade that afternoon. Even those who entered the market immediately after a 1% gap-up this morning were still sitting on substantial gains.
Today's rally in the A-share market seemed to confirm the predictions of Weathered Salted Fish.
Many investors were shocked.
"It really can double! Even if you bought at today's highest point, you could still gain 80-90% in just half a year!"
Those who missed out became restless and rushed to buy in immediately.
Meanwhile, investors who had followed the strategy since yesterday flooded the Tianya Forum to express their gratitude, leaving messages of admiration on Cao Chenghui's post.
As a result, Fang Hong's Reputation Value surged by another one million today, and his accumulated Achievement Points crossed 480,000. At this pace, he would soon be able to exchange for five item cards.
After reviewing his social reputation system, Fang Hong chose to hold onto his Achievement Points for now. Since they were accumulating steadily, he wanted to wait for the right moment to use them.
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Two Days Later – Friday, November 7th
At 4:00 PM, inside the Qunxing Capital headquarters, Hua Yu paced back and forth in his office, silently flipping through a market report submitted by the secondary market trading team.
The report detailed the progress of Fang Hong's strategic orders. The firm had successfully executed trades as planned, with 1 billion yuan in liquidity now fully allocated. The only exception was Zhongjin Gold, which was still a few tens of millions short of the target position.
Meanwhile, the other four target stocks—Shanqi Coking Coal, Pufa Bank, Xingye Bank, and Zhongxin Securities—had all reached their respective 200 million yuan investment targets.
Fang Hong's strategy for Zhongjin Gold was to complete position-building within nine trading days, leaving four days remaining. The delay was due to low trading volume, as the stock's total daily turnover was only around 300 million yuan.
"The total transaction volume of Shanqi Coking Coal this week was approximately 1 billion, just as he predicted," Hua Yu muttered, his surprise growing as he read through the report.
Everything was unfolding exactly as Fang Hong had forecasted.
Hua Yu vividly recalled being present when Fang Hong issued the strategic orders in the trading room on Monday. He had personally heard Fang Hong's reasoning.
As he finished reading, Hua Yu fell into deep thought.
He remembered what Fang Hong had proposed:
"If you can bring 10 billion yuan in leveraged funds to Qunxing Capital by the end of the year, I will give the firm 1% equity."
Hua Yu reopened the report, carefully weighing the risks and potential rewards.
From the current outlook, Fang Hong's confidence seemed borderline arrogant—but as events unfolded, his accuracy was undeniable.
However, the risk was astronomical. 10 billion yuan was a colossal amount, far beyond what Hua Yu could handle alone. The only way to leverage such capital was to involve his father, Hua Yongming, who controlled Huayang Group.
If his father agreed, 100 billion yuan in liquidity could be accessed.
After much deliberation, Hua Yu sighed and made a decision:
"I need to consult my father."
---
November 9th – Sunday Evening
At 8:00 PM, Hua Yu arrived at Hua Yongming's residence, brimming with excitement.
"Father, it's happening! The stimulus plan is really here! And it's a 4 trillion yuan stimulus package—confirmed on tonight's evening news!" Hua Yu announced, his voice filled with amazement.
"The National Congress, in its meeting on November 5th, proposed a 4 trillion yuan economic stimulus plan to expand domestic demand. It was officially announced today!"
He continued, "The government is implementing an aggressive fiscal policy and a loose monetary policy to accelerate investment in public infrastructure, environmental projects, and post-disaster reconstruction."
Upon hearing this, Hua Yongming's first reaction was not excitement, but suspicion.
"Are you certain about Fang Hong's background?" he asked sharply. "Have you investigated him thoroughly?"
Even he had not received insider knowledge of this policy before the official announcement. If Fang Hong had, it implied a deep and unknown level of influence.
Hua Yu, however, remained firm.
"Father, I believe Fang Hong made this prediction purely through his own analytical skills. If he had insider connections, even Huayang Group's resources wouldn't be able to uncover them. But I strongly believe in the former."
After a long pause, Hua Yongming let out a deep sigh.
He turned to his son and said, "You've put me in a very difficult position."
On one hand, Fang Hong's abilities were exceptional—so much so that even someone as seasoned as Hua Yongming had to reassess his judgment.
Now that the 4 trillion yuan stimulus plan was officially confirmed, everything Fang Hong had predicted seemed eerily accurate.
On the other hand, Fang Hong had previously mentioned leveraging 10 billion yuan in funds—a dangerous gamble that Hua Yu had already discussed with him.
Initially, Hua Yongming had dismissed the idea outright, refusing to risk Huayang Group's future on an untested young man's vision. Even the 1 billion yuan investment, which granted them only 5% equity, was already a considerable risk.
But now…
As events continued to align with Fang Hong's predictions, the temptation grew stronger.
If they took this gamble, Huayang Group could achieve unprecedented success.
But if they failed…
The risks were equally devastating.
For the first time, Hua Yongming found himself truly conflicted.