After the Divorce, I Could Hear the Voice of the Future-Chapter 29: A-shares, The Sky is Falling

"Locking positions is divided into two forms, profit locking and loss locking."

"When the market moves contrary to one's initial position, new positions opposite to the original holdings are created, hence it is also called hedging."

"The purpose of locking positions is primarily to handle potential reversals during the session, maintaining optimal positions at minimal cost."

In the kitchen, Lu Liang was making breakfast while delving deeper into the trading rules of London Gold.

Long and short positions were straightforward to understand, but locking positions was a strategy he had never touched before.

It seemed like a method to help investors reduce risk and appropriately avoid losses.

Yet, he felt that locking should be used more as a means of profit rather than a common remedial measure.

The explanation was too generic; Lu Liang felt he needed a chance to practice it to understand the specific methods.

Suddenly, the electric curtains slowly opened, and the sound of footsteps echoed from the end of the corridor.

"Liang, why are you up so early today, didn't we agree that I would make breakfast from now on?"

Li Manli, sleepy-eyed, dressed in a pink bear nightgown and bunny fluff cotton shoes, each step curling the rabbit ears.

Recently, with nothing much to do, she had been browsing a video website and suddenly conceived the idea of becoming a gourmet vlogger.

Lu Liang was happy to see her with her ideas and directly equipped her with several filming devices, letting her have fun on her own.

Now, Li Manli was not just the household manager but also a part-time chef, handling all three meals for Lu Liang.

Although the taste wasn't great, Lu Liang didn't want to dampen her creative enthusiasm.

If she had a talent and became a great internet sensation, Lu Liang would feel very accomplished.

"Busy until now, just finished work; idle as well."

After breakfast, Lu Liang walked to the water bar, brewed a strong bitter cup of coffee, trying to maintain a high energy level.

Who knew when he would be finished? It could be a blitz or a drawn-out battle.

Anyhow, he needed to stock up on as much energy as possible before the onset of the battle.

Li Manli expressed her surprise with wide-open mouth, "Did you not rest at all last night?"

"I won't need to be called for lunch; I'll come out if I want something," Lu Liang smiled, pushed her chin up again, then returned to his study.

Three screens on the desk displayed the Shanghai Stock Exchange, London Gold market, and one dedicated to browsing news.

At half past nine, the domestic stock market opened, starting up 0.57%, with the Shanghai Stock Exchange Index at 5150.12 points.

Today was another broad rally, the market mostly sees green except for a very few stocks showing losses.

Among them was Chinese Online, plummeting 3.55% at the opening, directly trapping yesterday's high chasers.

As time passed, a large amount of small capital began to enter the market.

Representing the retail investors' strong confidence in the subsequent market, they believed this was the second Baofeng of the year.

They also believed there would be a sharp increase during the session and if it hit the limit, today's gain would be 13.55%.

"The last chance to escape, if you don't cherish it, don't fantasize about institutions helping to lift the palanquin."

Lu Liang sighed and stopped paying attention to this stock.

Because the London Gold market fluctuated unusually during the quietest period in the Asian session, an abrupt drop of five points.

If it wasn't for Lu Liang's holding of 960,000 US Dollar in margin, he could accept drastic market volatility; otherwise, he might face a margin call.

"Could it be starting now?" Lu Liang furrowed his brows, staring at the calm Shanghai Stock Exchange Index.

After a brief hesitation, he reorganized his account.

Due to the large amount invested this time, Lu Liang revoked the previously set 400x leverage, reducing it to 200x.

The account now totaled 1.13 million US Dollars, with 630,000 as the margin and the other 500,000 leveraged into 100 million.

Lu Liang trusted his judgment that the trigger for the surge in Gold would be a crash in the A-shares, with capital moving into the International Gold Market for safe-haven.

The A-shares market relies on network and precedents; even if insider information was received, one couldn't reveal knowing it in advance until the official document was issued.

Like sometimes, some key stocks, one second after the document is released, immediately hit the upper price limit.

However, London Gold market can operate without any reservations.

A sudden change was a premonition.

Lu Liang decided to take a gamble. His funds were not ample enough, he had to take action before everyone else to secure the lowest price chips.

If he waited until the market action started to react, it would be challenging to get low-priced chips by then.

Lu Liang entered a position at 1365.2400 per ounce.

The price per contract was $136,524, with a total of 732 contracts purchased, amounting to $99.918 million, nearly all-in.

The price was now $1365.2400 per ounce, and with just a one-point increase before the decimal point, he could make $9076.

With lower leverage, the returns were lower, but the tolerance for error increased, allowing him to handle a sudden drop of 17 points.

As time ticked by, London Gold moved slowly and steadily up to $1365.7400 per ounce.

By ten in the morning, Lu Liang had made $4538, but his assets were still showing a loss of $12,962.

Because of the leverage used, a minimum fee of 3.5% had to be paid; the higher the leverage ratio, the higher the fees.

Fifteen minutes later, the Shanghai Stock Exchange took a sharp downturn, as if a slow bull market had suddenly been beheaded.

It opened up 0.57% and rose to 0.95% during trading, but then suddenly plummeted by 1.89%, turning red to green.

The total market value of A-shares, at 71.25 trillion,

saw an escape of funds amounting to 1.34 trillion in a matter of seconds.

And this was just the beginning.

A piece of news broke from the stock forums and quickly swept across the entire network.

At ten-fifteen, an official document was issued, and the relevant departments delivered a heavy blow, bringing down 12 illegal private institutions that provided off-market margin trading, urging major brokerages to regulate operations, and introducing ten new securities laws.

The Shanghai Stock Exchange Index plummeted in response, as private institutions providing off-market margin services were forcibly liquidated, flooding the market with a massive volume of chips.

"Damn, my account is locked."

"Run, the stock market crash is coming."

The stock forums erupted, and financial industry professionals were astounded.

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In just four months, the Shanghai Stock Exchange Index rose from 3000 points to its current high of 5178.

The total market value of A-shares increased by nearly 20 trillion, thanks largely to the numerous institutions providing off-market margin financing.

Previously, off-market margin financing was a gray area, technically illegal, but the authorities didn't delve too deep.

Now, with a decisive blow, the leading financing institutions have been toppled, brokerages have been urged to regularize operations, and ten new rules have been implemented.

Undoubtedly, for A-shares, the sky had fallen.

Institutional liquidations, speculative capital flight, and retail investors following suit.

The entire market looked as if it were facing an apocalypse.

Lu Liang was exceedingly agitated, paying no heed to the further movements of the Shanghai Stock Exchange Index, his attention entirely captivated by the London Gold market.

Just then, at the very moment the official document was issued, London Gold surged by 21 points, with massive amounts of capital frenziedly flowing in.

As time progressed, London Gold started to climb rapidly, increasing by nearly one point every second.

An anomaly occurred in the London Gold Asian session, attracting speculators from across the ocean, further inflating the price of gold.

By noon Yanjing time,

the surge in London Gold gradually slowed.

In 80 minutes, it had jumped by 47.39 points,

stabilizing the price at $1412.6300 per ounce.

The international gold price broke through $45 per gram, equivalent to 288 RMB, rising by 10 RMB per gram.

Clearly, investors betting on gold did not want the rally to end, as news of the surging gold prices spread worldwide.

Taking domestic public sentiments as an example, various financial experts started to make their presence felt.

They first expressed support for the state's regulation of financial markets and lamented over the pitiful state of A-shares.

Secondly, they analyzed that trillions of funds fleeing would generally head in two directions.

The first was undoubtedly real estate; with house prices expected to keep rising, it would soon be too late to get on board.

The second was gold; aside from real estate, only the gold market could accommodate such a volume of capital.

The pushers of public opinion were clever, understanding what regulating financial markets meant—it was all about directing funds where they were supposed to go.

Therefore, they primarily talked up the real estate market, encouraging the public to invest in housing, with the international gold price spike just a side note.

However, considering the cost of houses often reaching millions, which is not a small amount, in contrast, gold could be bought for just a few hundred per gram.

People who had tasted the sweetness of the stock market, upon receiving the news, felt like they had a new target and began to flock to the gold market.

Though trading London Gold was complex, buying physical gold was an option.

Gold's attributes were too distinct.

Visible and tangible, you couldn't lose big or get deceived, and even if the price fell, it wouldn't go too low—at worst, you could still craft jewelry for yourself or your family members.

For a while, Shenzhen Shuibei experienced a gold rush like never before.