My fintech empire.

Institutions, large investors, and small retail investors that had used leverage and financing all released their selling pressure in a concentrated manner. The market index could not withstand it at all and directly experienced a flash crash.

No one wants to be locked up in a small dark room for a year, but they are also afraid of receiving a big gift package of being locked up in a small dark room for a year, so they dare not harbor any more luck.

After the Xinzheng 50 Index fell below 5500 points, there was no follow-up to the 5400 point mark and it was easily broken through, and it continued to fall, and then 5300 points was also broken through.

From the moment the news flash pop-up window appeared, the entire market showed a unilateral downward trend, without even a pullback, swallowing up all the gains since April and even more than half of the gains in March.

The Shanghai and Shenzhen stock markets next door also followed suit and plunged. With the Xinzheng 50 Index falling sharply, it was impossible for the two neighboring markets to stay out of the situation.

Moreover, there are leveraged funds and off-market financing in the Shanghai and Shenzhen stock markets, which makes these people very panicked.

At this moment, the entire market is in a panic and stampede. Those who have leveraged are frantically cashing out and deleveraging. Profit-taking funds are dumping stocks regardless of cost and fleeing. Those who increased their positions or chased highs in the early trading session are so regretful when they see the entire market plummeting.

The styles of major stock forums and communication groups have changed at this moment.

[As soon as I got on the bus, I ate noodles. Damn!]
[Run!]
[I added positions in the morning hoping for a new high, now I am dumbfounded.]
[Turn off the lights and eat noodles…]
[Well, I wasted my time in April and lost 4 points. Today's big negative line killed the market, confirming that 2 points on April 4 was the top of this market, and there is basically no suspense.]
[Before the surge on February 2, the management had been emphasizing not to use leverage or margin trading, but some people just didn’t listen. The stabilization fund couldn’t suppress the market even after selling 25 trillion yuan, so they just kept pushing it up... (covering face/jpg)]
[The market has soared from 4194.73 points at the beginning of the year to 5554.06, an increase of more than 1350 points, a cumulative increase of +32.4%, which is indeed a crazy increase.]
[I remember that there were several old friends in our group who used OTC financing, and one who used Taobao to borrow money to increase his position...]
[Damn, this is so fucking exciting. I’m out now (laughing and crying.jpg). This wave of retracement cost me 25 pips, and I almost lost my principal. I’ll pay it back tomorrow and never use leverage again. Damn, it’s all in vain. Fortunately, I watched the market today, otherwise I would be screwed! ]
[You are lucky, you have profit margin and it is just a retracement, so you have escaped a disaster. Those who chased high prices today are miserable, and if they use leverage, they are even more miserable.]
[Others are afraid of me, but I am greedy. I want to buy at the bottom...]
[Take it easy.]
[I didn’t add any leverage anyway, so I’ll just build a base position first.]
……

As of the closing, the three major A-share indices all ended in a sharp drop.

The SGX 50 Index plunged -4.73%, the largest single-day drop in nearly two and a half years, and closed at 5277.28 points after the market. The turnover of the SGX market increased significantly to 12353 billion. The Shanghai Composite Index fell -1.70% to 3215.04 points, with a turnover of 3592 billion. The Shenzhen Component Index fell -1.86% to 10224.31 points, with a turnover of 4451 billion.

The transaction volume of the three major markets totaled 20396 billion.

The SGX market showed a general decline today, with only 1600 stocks in the green among more than 80 stocks, of which 137 stocks hit the limit down.

Funds from all walks of life have basically confirmed that a real major adjustment is coming. This super-large negative line has already established that 5554.06 points is the interim high point of the Xinzheng 50 Index. It is impossible to break through in the short term, and there is no need to think about it in the first half of this year.

It is obvious that the management has dragged four unlucky guys out as sacrifices, and it has reached the point where it can no longer tolerate off-market financing and leveraged funds.

If the leveraged funds in the market are not dealt with, these four unlucky guys will serve as a lesson for us. The leveraged funds and funding in the market are very sensible and dare not force the limit anymore, but instead deleverage and deleverage themselves in a decent manner.

Because if you don't want to look decent, someone will help you look decent. The market ban package is more powerful in deterring big funds. Big funds would rather be fined than go to the small black room.

What is certain is that today's big negative line sell-off is just the beginning, and the reason is very simple. It is impossible for all the leveraged funds and capital in the market to be sold out today. Most people know this.

It is unlikely that too much money will enter the market before the leveraged funds are cleared out, and leveraged funds dare not stay away under the deterrence of the market ban, so it is inevitable that the market will continue to fall.

The reasons for today's market crash are pretty straightforward.

The management of the Singapore Exchange launched a heavy-handed crackdown on off-market financing and leveraged funds, and many people who chased high prices suffered heavy losses in the early trading session.

However, after the market closed, judging from the discussions in major stock forums and communication groups, basically no one blamed the SGX management for crashing the market. Even those who had made a fortune mostly just pinched their noses and considered themselves unlucky. In the past, they would have definitely cursed at the management.

The reason why no one pointed the finger of blame for the market crash at the SGX management is that people still have some idea in their minds. Most of those who suffered the biggest losses from this wave of sell-offs know in their hearts that they are not innocent. Many small retail investors have secretly leveraged and even borrowed money to extend their holdings of the SGX 50 ETF, not to mention those who have the authority to trade SGX stocks.

Moreover, since February 2, the management of the SGX has repeatedly stressed that investors should not use leverage or margin trading, and should invest normally and not bring illegal funds into the market. The wording has become more and more severe, and even the stabilization fund has stepped in to release trillions of selling pressure.

But few people listened.

Ultimately, it is the greed that cannot be suppressed. They all want to achieve financial freedom by getting rich in a bull market, and then they can live a life of luxury without having to work for the rest of their lives.

The management of SGX has repeatedly warned people against this, but most people are still taking chances and thinking that it should be okay if they add a little leverage to earn more. They didn’t buy at the bottom and didn’t earn much, so what’s wrong with adding a little leverage?
The problem is that there are quite a few people who think this way. There are almost as many people who have similar ideas as there are funds that have missed out on opportunities, which reflects on the entire plate. They know that adding leverage and financing is not good, and they also know that it is right for the management to crack down on financing and leverage funds, but everyone has their own little selfish desires.

Now that you have lost a lot of money or your profits have been significantly withdrawn, you can't find any reason to blame the management of SGX. After all, there is nothing wrong with the management's approach, and the lessons learned in 2015 are there for us to see.

If we really wait until the NSE 50 Index is pushed all the way to 1 points by leveraged funds and off-market financing and then carry out deleveraging, causing a market crash, it will inevitably be another epic disaster, and even more serious than the one in 2015.

In the next five trading days, the Xinzheng 50 Index continued to fall with shrinking volume, and including the big negative line on April 4, it experienced six consecutive declines.

这五个交易日里，分别下跌-1.24%、-0.48%、-0.97%、-0.82%以及-0.62%，新证50指数也回调到了5062.98点，最新的日成交额也缩量到了7000多亿。

The cumulative correction in six trading days was -8.84%, and this wave of continuous decline also filled the gap created on February 2.

This market correction was within the expectations of most people. The only unexpected thing was that the decline in these five days was less than most people expected. When the big negative line burst down on April 4, everyone thought that the market would drop another 22 percentage points the next day, but it only fell by -3%.

It was not until the close of the next day that we understood why the market did not continue to plunge. It turned out that the SGX's trillion-yuan stabilization fund intervened to support the market. Public data showed that it received a huge amount of 1300 billion yuan that day. If the stabilization fund had not intervened, the irrational panic selling would certainly have continued.

...(End of chapter)