My fintech empire.

Chapter 1435 [Rhythm: Stabilization Fund Cuts Leeks? ]

The decline of the Xinzheng 50 Index slowed down in the following few days, mainly because the stabilization fund continued to take action and the market rebounded for five consecutive days. The stabilization fund bought for five consecutive days, injecting a total of more than 4200 billion yuan of real cash liquidity into the market.

A stock exchange group.

A friend in the group posted a screenshot of his earnings and cursed in the group: [I missed out on opportunities in February, and lost all my earnings in March and April. I also lost 2 points, all of which were cut by the stabilization fund. They played it so well. I sold at the high point to cash out, and now I am buying at the bottom. Are they here to cut leeks? ]
This group member sent out a message to complain, and was quickly responded to by several other group members.

[No, are you stupid? If the stabilization fund hadn’t intervened, you wouldn’t have lost 6 points, but 20 points.]
[Although I also lost more than 2 points in the past two months, I don’t blame the management of SGX this time. I did use leverage, and if the stabilization fund hadn’t stepped in to support the market the day after the big drop, I might have lost more than points. The operation of the stabilization fund is beyond reproach.]
That group member sent another message to refute: [Isn’t it cutting leeks that the stabilization fund made 1 trillion yuan by buying low and selling high?]
As soon as these words were spoken, they were immediately met with collective rebuttals from other group members.

[I am dying of laughter. The SGX Stabilization Fund is close to open market operations. On February 2, it was openly sold. The management also repeatedly warned against leverage and margin trading. But did the market listen? They pushed back. Why didn’t they say anything at that time?]
[Everyone has some idea of ​​what is going on in this market. To put it bluntly, everyone wants to get rich overnight. At least two of the people I know have added leverage in different ways. If you don't listen and insist on making money, you have the ability, but don't curse if you lose.]
[SGX management has repeatedly called out since February 2, with each statement becoming harsher and harsher, but the market went against the wind and leveraged, and they couldn’t stand it anymore, so they pulled a few people out as sacrifices. This wave is really not the fault of the management.]
[In theory, as long as you don't use leverage, it is basically impossible to lose money in this wave. Even if it is adjusted to the present, at most it is a profit withdrawal, and the principal will not be seriously damaged. Of course, if you jumped in at 5500 points, just ignore what I said and just stand guard honestly.

Moreover, even if you are stuck at 5500 points, as long as you don’t sell, the SGX will most likely help you get out of the trap later. Judging from past trends, you will be stuck for more than half a year at most. If you still have funds to buy at a low point to reduce costs, you will be out of the trap in less than half a year. ]
[There is nothing much to say. The SGX management did the right thing this time and it was timely. If you really wait until the index reaches 1 points before removing the leverage, you will be in despair. By then, it is certain that the situation will be even worse than the leveraged bull market in 2015.]
[Excuse me, those who criticize the stabilization fund are either stupid or evil. If the stabilization fund wanted to reap profits, it should not have rushed into the market the day after the sharp drop on April 4. Anyone who thinks with their brains knows that it is impossible for leveraged funds in the market to withdraw all in one day, and the market will definitely continue to fall. If they wanted to reap profits, they should have further amplified the panic, continued the sharp drop, and then bought the bottom and got the bloody chips.]
[Indeed, how could such a stupid institution enter the market the day after the big drop on April 4?]
[Stabilization Fund: I don’t want to make money, but you insist on making me make money. I have to… (covering my face.jpg)]
[During the window guidance, I started to reduce my positions gradually when the index was over 5400 points. There were risks when the index rose and opportunities when the index fell. Now it is time to increase my positions when the index falls. I hope the index falls a little more so that I can buy at the bottom and get cheap chips... (manually funny)]
[Again, don’t leverage, don’t leverage, don’t leverage. I repeat this three times.]
[I don’t dare to do that anymore, for fear that my account will be locked up in a small black room… (covering my face.jpg)]
……

At present, except for a small number of people who are confused or led by the trend and criticize the stabilization fund for selling high and buying at the bottom to make money, most investors have not said much, and those who criticize the stabilization fund have been responded to by the majority.

Because everyone knows exactly what happened, it was greed. The management had advised for two months, and the stabilization fund had been operating in the open market for such a long time, but it still rushed up with leverage. No one can be blamed, let alone the stabilization fund.

Even if most people suffered a huge loss in this wave, they were actually willing to admit it, because they were indeed greedy and had a fluke mentality, and they did not have the confidence to blame the management and the stabilization fund.

Moreover, those who have made a big profit will not cry out in pain. They have been making money in the SGX market as a whole in the past few years, and the overall return of their accounts is still positive. Even if they have made a big profit now, they will only be able to make money for a while.

Everyone is still very confident about getting their money back, mainly because they have confidence in the SGX market. If they were stuck at 5500 points in the Shanghai Composite Index next door, they would feel very disappointed.

Objectively speaking, the stabilization fund did sell high and then buy at the bottom, but if the stabilization fund had not been released, the stocks in everyone's hands would only fall further, rather than slowing down the decline the day after a big drop.

If the stabilization fund had not intervened in time, some stocks with more leveraged funds might have hit the limit down on April 4 and continued to hit the limit down the next day. At least three consecutive limit downs would have been required before the stocks could get out, which would mean a loss of more than -22%.

The stabilization fund stepped in to support the market the next day, so that many stocks that plummeted to the limit on April 4 did not continue to hit the limit, and many people were able to sell them the next day.

……

The next day, Tuesday, August 4th.

Today is the last trading day before the May Day holiday. After six consecutive days of market sell-offs, the market has seen a small-volume rebound today.

The SGX 50 Index stopped falling for six consecutive days. The short-term sharp drop itself also has the need for a technical rebound. The SGX 50 Index regained the 5100 point mark today, rising +1.53% after the market to close at 5140.19 points. The full-day trading volume of the SGX market shrank to 6208 billion, a decrease of more than 1100 billion compared with yesterday.

Today, the main focus is on the on-site funds competing for a rebound. There is no incremental funds, and there is still funds that are deleveraging, but the leveraged funds have almost been gone.

In addition, the May Day holiday is coming up. At this juncture, most people are cautious in their operations and most choose to hold on to their coins during the holiday. Last week, the management of the SGX pulled out a few sacrifices, which had a strong deterrent effect on the market.

Everyone is also worried that there will be bad news during the holidays, so they are naturally cautious in their operations.

This is reflected in the market as today's trading volume has shrunk to 6000 billion, which is more than half of the peak period of 1.39 trillion.

The effect of dismantling leverage and eliminating capital this time was remarkable. Faced with the huge deterrent effect of the market ban, in the past week or so, most of the leveraged funds and capital in the market have been automatically cleared, leaving less than 15%, which is far below the safety line.

Fang Hong did not expect to clean up everything completely, and it was impossible to completely eliminate any leveraged funds in the market. As long as it was not too excessive and not everyone participated in leveraged financing, it would not be a big problem. The existence of leveraged funds also had certain rationality.

The leveraged capital problem in the SGX market was resolved, and in the following days, Fang Hong no longer paid attention to the capital market.

He shifted his focus to preventing the super black swan event of "masks", which is the top priority this year.

Fang Hong’s goal is clear and definite, that is, he must not let the "mask" incident wreak havoc on the entire Chinese land in this life, and then sit back and watch Ameilica get out of control and backfire on him.

……