Chapter 185 Perfect Hedging, Extreme Arbitrage!

"What the hell, what's going on?"

As the entire market changed rapidly, all the core weight financial stocks with daily limit orders were cancelled, selling pressure was overwhelming, and the index fell straight down, the majority of retail investors in the market were also shocked, just like the changes in their expressions and mentality in the 10 minutes before the midday closing.

"Why did the buying suddenly disappear?"

"Not only did the buying disappear, but the selling on the market was pouring out like crazy. It's really weird."

"Look at the situation. Did tens of billions of funds in the morning just go to waste?"

"Fuck... I bought at a high position, where is the good news? These funds are simply sick. They rushed to buy before the midday closing and rushed to sell after the afternoon opening!"

"It's really sick. What are they trying to do?"

"The Shanghai Composite Index went straight up and down, just like a small-cap stock controlled by a market maker. It's simply... This should be considered as big funds manipulating the market?"

"Buy before midday, sell after midday, market sentiment and follow-up funds, all didn't rise, what is this manipulation?"

"I don't know, I just think that the market before and after midday today is really weird, come to collect Cut, and there is no pause, it's weird!"

"Yes, I have never seen such a market trend."

"Looking at the situation, it should be a wrong purchase, right? Otherwise, how to explain that all the buy orders were withdrawn after the opening?"

"Billions of funds bought before the midday closing, how can this be wrong?"

"No matter what the reason, fortunately I didn't chase it and dodged a knife, otherwise... I couldn't sell it now."

"I heard that it was Guangda Securities that did it, and their company's stocks were suddenly suspended before the afternoon opening."

"Guangda Securities? This securities company is not considered a first-class echelon in the market, right? How can it make such a big move?"

"It should be Guangda Securities, because at this moment, the Hong Kong stocks of this company have already plunged 6 points, while other securities companies have basically not moved.

"Oh my God! From this point of view... It is really a hammer in the market. The ups and downs are caused by Guangda Securities. "

Only one minute passed amid the exclamations of retail investors.

As the underlying stocks and indexes continued to fall, the trading volume of the CSI 300 Index futures continued to expand. Dozens and hundreds of short-selling orders emerged one after another to suppress the buying orders, and the CSI 300 Index futures broke through 2,400 points and entered a lower point.

At the same time...

On the CSI 300 Index futures, the market tycoons who had previously been killed by shorting and long positions, faced with the trend of the futures killing shorts and then longs, also cursed.

"Manipulation, this is definitely a market manipulation!"

"Fuck, the long positions I established at 11:27 am are now forced to stop losses. Today's index trend is really poisonous!"

"The normal market trend cannot go up and down so straight. Someone is definitely manipulating the index. ”

“Today's futures trading obviously increased many times. This shouldn't be a coincidence, right? Could this fund... use the underlying stock to manipulate the index and then use the futures to make a profit?”

“It's possible. There are still a lot of funds selling short orders on the market.”

“It looks more and more like it. There are too many short orders on the market. The futures index of the CSI 300 is more than 90 points away from the real-time position of the CSI 300 index.”

“It looks like the price difference will slide to more than 100 points!”

“The discount is so obvious. It should be to lure everyone to buy the CSI 300 index futures, so as to establish more counterparties for the short funds that are frantically shorting at this moment, right?”

“If the other party really smashes the underlying stock, controls the index, and makes a profit with the futures, then this discount is obviously a trap to lure more people. ”

“Fuck, the futures index and the current index have such a large discount. If it is a trap to lure more investors, does it mean that the CSI 300 Index will continue to fall!”

“Of course, the two cannot always have such a large discount. Usually, a gap of 20 or 30 points is normal.”

“Oh my god... the selling is so fierce.”

“Whether it is the underlying stock or the futures index, it feels like they are being maliciously shorted!”

“Guangda Securities’ Hong Kong stocks have collapsed, and the decline has widened to 12%. Could this really be the work of Guangda Securities? Isn’t this guy afraid of being investigated by the exchange and the CSRC’s trading supervision department? It’s obvious that he is manipulating stock prices and the market! "

Just as many large investors who were killed and forced to stop losses in the futures index were filled with righteous indignation and indignation...

Inside Guangda Securities.

The entire investment and trading strategy department, all traders, have been mobilized.

Everyone followed the instructions of the leaders of each trading group and the general manager of the investment and trading strategy department, frantically selling all the stocks that could be sold in the securities account to recover funds, and at the same time, they maximally shorted short orders in the CSI 300 Index futures, trying to achieve the purpose of hedging as soon as possible and recover the losses caused in the morning.

At this moment, the supervision departments of the Shanghai Stock Exchange Stock Trading Center and the Futures Trading Center.

Already monitored the crazy short selling behavior of Guangda Securities at the same time.

So, in less than 5 minutes, the calls from the two major supervision departments came into Guangda Securities again, and the leaders of the supervision departments directly yelled at the executive president of Guangda Securities: "What are you going to do?"

In the eyes of the entire internal supervision department...

This remedial measure of Guangda Securities, with the help of crazy selling of underlying stocks and large-scale short selling of CSI 300 Index futures, has constituted suspicion of insider trading and market manipulation.

This sentence 'What are you planning to do?' is both a reminder and a warning.

Of course, if Guangda Securities' actual background was not state capital, the internal regulatory authorities would not even have this warning and directly restrict the opening of positions.

The CEO of Guangda Securities faced the other party's yelling and could only try to appease him.

At the same time, I was scolding my mother inside.

If we do not use this hedging situation to make up for the losses in the morning and make up for some losses and capital differences, the company will have no choice but to bear the billions of capital differences that will be settled before the next trading day. Overnight, credit goes bankrupt.

And such an ending is much better than the so-called suspicion of market manipulation and insider trading.

It was even more unacceptable to him.

So, after simply appeasing the other party and using the procrastination technique...

The entire investment and trading strategy department of Guangda Securities did not restrain its actions. Instead, it intensified its efforts to open short positions on the CSI 300 Index futures. At the same time, it further sold off all stock holdings of the entire company on a large scale. The first was to withdraw funds, and the second was to make all-out efforts. Kill the falling market and push the index down, so that you can reap huge profits on a large scale in the main contract trading of Shanghai 300 Index futures to make up for the losses caused by buying chips in the morning.

As a result, Guangda Securities ignored the warnings of regulators and desperately shorted the market.

on the entire market…

All the stocks linked to Guangda Securities' proprietary investment plates have suffered a brutal sell-off at this moment. Tens of millions, hundreds of millions, or hundreds of millions of chips can be said to be desperate to escape, causing these stocks to Other investors who held shares suffered huge losses.

Then, coupled with the "big financial" weighted stocks that fell across the board after losing Guangda Securities' huge capital tray.

As well as the trend of futures indexes with serious discounts and endless short-selling orders.

The investment sentiment in the two cities quickly turned sharply downward from the high level at the midday closing stage, and as the trading time went by, fell into depression and even panic.

And due to the impact of investment sentiment...

The selling in the market became more and more serious. It took less than 10 minutes for the major indexes to swallow up all the gains before midday, and... at 1:32, several major indexes went even further. It fell to an intraday low, with an average decline of 1%.

At this time...

Investors in the entire market looked at the extremely long antenna on the Shanghai Index, and it was like a dream.

"Mr. Xu, please find out!" When the market had fallen underwater and panic began to spread, in the Magic City, inside Zexi Investment, Director Qiao of the company's market information department once again walked into the trading room and whispered to Xu Xiang Said, "The internal trading system failure of Guangda Securities has caused extreme changes in the market. At this moment, the China Securities Regulatory Commission supervision team is heading to the headquarters of Guangda Securities in Shanghai to investigate."

"Okay, thank you for your hard work!" Xu Xiang stared at the market that was still falling and the main contract trading surface of the CSI 300 Index that had reached 2322 points. He nodded lightly and said, "Continue to inquire about Guangda Securities." News, this news... is of great value to us."

After saying that, Director Qiao left.

Xu Xiang tilted his head and told the trading team led by Zhou Kan: "Continue to short the CSI 300 Index futures. Guangda Securities should be standing on the edge of the cliff this time. Their choices... won't be many."

"Okay!" Zhou Kan responded and continued to execute Xu Xiang's instructions.

At this moment, the bad news about "Guangda Securities' operational error" has not been truly known to the majority of investors in the market. In other words, the bad news is still there. In addition, in order to withdraw funds and make up for the loss of assets, Guangda Securities must not Do not sell underlying stocks or short-sell index futures for hedging.

Therefore, from various logics, the index still has obvious room to fall under the current situation.

Even if they have successfully speculated and obtained part of the profits, they have not yet reached the time to stop taking profits and safely exit the game.

At the same time...

Within Yanjing and Anlan Fund, Xie Wanting, who had also successfully speculated on the main contract of the CSI 300 Index futures, was secretly happy and felt a very satisfying sense of accomplishment.

Although she only established a total of 10 short selling orders using her personal account at the opening of the market in the afternoon.

The overall profit is limited.

But this was her prediction of the market one step ahead, and her prediction was absolutely correct.

The sense of accomplishment that this trading logic has been verified and that the trading strategy fully corresponds to market changes is far more important to her than simply making money.