My fintech empire.

New city, quiet villa.

Today is Thursday, March 3th. More than half an hour has passed since the market closed. Fang Hong couldn't help but laugh as he looked at the closing price of the New Securities 7 Index and the recent trend of five consecutive positive days setting a new historical high.

Now the market has formed a consensus on an overall bull market. Many people firmly believe that the A-share market has entered the third bull market cycle. This time, the SGX market is no longer the only bull market, but the two neighboring markets are also bullish. In such a bull market cycle, most people see the target price of the SGX 50 Index as reaching 1 points.

The SGX market has maintained a trillion-dollar transaction market for 14 consecutive trading days, but the five consecutive increases in the past five days have underperformed the Shanghai Composite Index. The Shanghai Composite Index has successfully returned to the 3000-point mark because the large financial brokerage sectors in the two neighboring cities adjusted for a few days and then strengthened again in the past five days, leading the index higher.

The current market volume is so large that brokerage performance expectations have been blown up by stock analysts and teachers.

During these five days, Fang Hong did not let the stabilization fund release large-scale selling to suppress the bullish sentiment in the market, because the effect was not significant. It would be possible to suppress it only if it was combined with the resonance of negative factors.

Once a trend consensus is formed, it is indeed difficult to suppress it, and the SGX does not have too many short-selling tools, so the current top-level design is biased towards bulls.

The current situation is very clear. Not only are some institutions, especially private equity institutions, leveraging heavily, but many investors are also leveraging to varying degrees. The trading volume of the six new 50 ETFs is quite explosive.

At this moment, Fang Hong was on the phone with Tian Jiayi and instructed him: "Let the SGX speak out again against leveraged funds, and the wording must be harsh."

Tian Jiayi replied on the phone: "I'm afraid it will be difficult to suppress it effectively."

Fang Hongting said calmly, "We will just add more leverage. If the leverage is still too high, we will directly pull out a few typical leveraged funds to sacrifice them and ban them from the market for one year. If they still can't be stopped, we will pull out a few more typical ones and ban them from the market for three years."

The current market trend has formed a consensus on an overall bull market. It is difficult to fight against the trend but it does not mean that it cannot be suppressed. There are still many tools at hand.

Fang Hong is not preventing the market from rising, but he is saying that it cannot be raised by leveraging a small amount of capital. Such capital is unstable, and the more violent the rise, the more tragic the collapse will be. The lesson from the catastrophic market in the second half of 2015 is profound enough.

……

In the evening, the Singapore Exchange released a message late at night, once again emphasizing the prevention and resolution of financial risks. In the announcement, it mentioned five times the problem of illegal entry of leveraged funds, off-market financing and other funds into the market, and used a series of harsh words such as "zero tolerance", "strict investigation", "strict control" and "strict management" for the illegal entry of funds into the market.

Funds from all walks of life in the market were shocked and felt the situation was quite serious.

In addition, there are rumors that securities firms in the two neighboring cities also released negative news and were guided by the village window.

Supported by two pieces of negative news, on the next day, Friday, the three major A-share indices opened lower across the board. The Xinzheng 50 Index broke through the 5300-point mark in the call auction, and opened sharply lower by -1.49%. After the opening, it opened lower and continued to fall, with large volume and a sharp drop, and the 5200-point mark was also broken.

At 9:30, the Shanghai and Shenzhen stock markets opened, and the securities sector exploded at the opening. The sector index opened low at -6.43%. A large number of securities stocks opened at the limit down, opened low and rose, and then exploded again after rebounding for more than an hour. The securities sector plummeted by 9 points in the afternoon, and securities stocks were all at the limit down.

Today, capital outflow has become obvious. The three major trading markets have all seen large-scale declines, and profit-making funds have followed suit. From the news last night, it was very obvious that management intends to cool down the market. Everyone is afraid that there may be some negative news during the weekend.

As of the closing, the three major stock indices of the A-share market all ended with a sharp drop, with a large negative line pouring down, directly swallowing up the gains of the previous five consecutive positive lines.

The SSE 50 Index fell -3.55% after the market closed at 5145.89 points, with a trading volume of 13063 billion yuan; the Shanghai Composite Index fell -4.40% to 2969.86 points, falling below the 3000-point mark; the Shenzhen Component Index fell -3.25% to 9363.72 points.

The total trading volume of the three major markets increased to 24904 trillion, once again breaking the record for the largest single-day total trading volume in the history of the A-share market. The new record of 2 was set on February 25 and was broken again today.

The sharp drop of the Xinzheng 50 Index today ended at the upper track of the gap on February 2. This gap has strong support. There was no follow-up when it was falling all the way during the session. At this position, there was obviously a large amount of funds buying at the bottom.

However, although the market fell sharply today, it did not cause too much panic from an emotional point of view. At this moment, the comment section of the Xinzheng 50 Index stock forum is also hotly discussing and analyzing the market.

[I think this is a characteristic of a bull market, with a slow rise and a sharp fall. Also, I wasted my time this week, as I failed to lock in my profits and lost everything.]
[The management said that they would conduct a strict investigation on capital allocation and curb the surge. In fact, in the long run, this is a good thing.]
[It’s rare to see a bull market turn around, if not now, when?]
[But this one Yin swallowing five Yang is quite scary.]
[What are you afraid of? It's just the will of the management. What the country wants is a slow bull market, a healthy bull market that moves upward in the long run, not a crazy bull market. Otherwise, it will be a mess like in 2015.]
[It should have fallen. From a technical point of view, it shouldn’t have risen for so long. The divergence is so serious that only leeks who don’t care about the risks will buy like crazy.]
[Today's market crash has two conclusions. One is that the market has not stabilized yet, and the other is that a large-scale adjustment has finally come. Funds that missed out can consider gradually entering the market. I have always believed that the stock market cannot continue to rise without adjustment. This time the market has risen from 4194 points to 5300 points, with almost no decent adjustment. This state is impossible to continue.]
[Didn’t the market just reach 3000 points?]
[Who told you that the market refers to the Shanghai Stock Exchange Index? Who looks at the Shanghai Stock Exchange Index now? The index that dominates the market now is the New Securities 50 Index. Thank you.]
[All right……]
[It's like a train, fully loaded with 2000 people. Investors hesitated at first, and only 500 people got on the train before it drove away at high speed. Because the speed was too high, investors dared not get on the train, but a train with 2000 people can't carry only 500 people, so it must come back to pick up people, and it will go back and forth many times to pick up people, at least to carry 1800 people to continue moving forward. For investors, the market rushed too fast and they didn't dare to enter the market. Now that the train has reversed to pick you up, you don't dare to get on the train, then you need to reflect.]
[Don’t study why the market crashed. Every time the market crashed, it always happened when the news and technology aspects resonated. This time is no exception. A fall does not mean that the market is not bullish, and a short squeeze cannot mean that the bull market has turned around.]
[Today's drop is exactly what the management intended. They don't want a crazy bull market, but a slow and steady bull market. Moreover, if you pull back your fist, you will be more powerful when you hit it out. If there is no correction, where will the right opportunity to get on board come from?]
……

Judging from the market sentiment after the market closed, no one was panicking at all. In fact, this wave of rapid sell-offs made many investors who missed out on the opportunity feel that it was a rare bull market turnaround, and the market trend after the opening of next Monday received the most intuitive response.

On Monday, March 3, the A-share market opened, and the three major stock indexes opened higher across the board and rebounded sharply. Last Friday's big negative line gap-up and sell-off instead prompted more funds that missed the opportunity to rush into the market. During the weekend, major stock forums and communication groups were all shouting that money cannot buy back the bull market.

At the close of the day, the Xinzheng 50 Index rose by +2.77% to 5288.41 points, reversing the negative line entity; the Shanghai Composite Index rose by +1.92% to 3026.99 points, regaining the 3000-point mark; the Shenzhen Component Index rose by +3.64% to 9704.33 points, also strongly reversing the negative line.

The three major trading markets had a total transaction volume of 19560 trillion, of which the SGX market had 10115 trillion, and maintained a trillion market transaction volume for 16 consecutive trading days, with the record being constantly broken.

...(End of chapter)