268: Wang Lin absconded, selling off 200 billion yuan worth of assets in just 10 days!

Upon receiving the order from Brother Junlin, those Traders immediately began to Dump Stock frantically.

They had actually been waiting for this day for a long time.

In trading, especially in the A-share market, it is understandable if one is an Institution; clearing positions is not common, as many just trade waves.

Why is it said that clearing a stock completely is rare?

It is because they need to conduct very precise research and various inspections on these stocks.

The purpose of doing so is to find a stock that can be held for the long term.

Therefore, they are also accustomed to long-term strategies.

Unlike Wang Lin, who came from a short-term background, a Hot Money player from the Stock Picking Bar, and is naturally used to short-term trading.

To be honest, the long-term layout during this period had made these Traders unaccustomed to it.

It was just that the capital volume controlled by Wang Lin was too large, making it impossible to play short-term, so they had to start long-term trading.

They were just doing T+0 trading on the basis of this long-term strategy, making small price differences.

That was all.

To be honest, it was not satisfying.

But isn't that the daily routine of a Trader?

Where could there be so many magnificent, earth-shattering major events?

It is only when encountering a bull market like this that they become so crazy.

Because of this, upon receiving the order from Brother Junlin, they all felt themselves leaping with joy, their hearts filled with happiness.

"Guarantee to complete the mission, Brother Junlin!"

"You can just leave it to us!!"

"We have earned so much in this wave, it really is time for a victory escape!!"

Looking at the excitement in the trading room, Wang Lin smiled and said: "When this is over, everyone will get a big red envelope, keep up the good work!!"

As soon as these words were spoken, it triggered another round of wailing and howling!!

Everyone now understood the generosity of Brother Junlin very well; following Brother Junlin means having meat to eat.

Whoever performs excellently within their own job scope will receive extra rewards from Brother Junlin.

Under this positive incentive, these Traders were eager to burst out with 120% effort.

May 13th.

Originally, under the various money-making cases constantly spreading crazily in the market, the A-share market should have continued to rise.

But the market strangely began to move sideways.

For two consecutive days, the index of the A-share market was controlled and fluctuated within 1 point.

If it rose too much, it would be Dumped; if it fell too much, it would be easily pulled up.

"Why did the overall market index suddenly start moving sideways in the last two days? The stocks I bought are not rising anymore."

"Me too. I chased the rise on a stock I thought would hit the limit, which used to go straight to the limit, but it was Dumped today, making me lose a few points!!"

"Perhaps, is the market entering an adjustment period?"

"Really!!? If it is true, that would be great. I am worried that the prices of these core stocks are too high and I am reluctant to buy. If the price falls, it will just give me a chance to buy in."

"Who says it isn't? I also hope for a callback!!"

Looking at the comments from these Stock Investors in the stock market.

In the Junlin Finance trading room.

Zheng Huan was chatting with several Traders, sighing.

"Only in this kind of bull market would bulls hope for a decline. They are not afraid of a crash if it falls too much, because they know in their hearts that it will definitely be pulled up!!"

"The bull market really makes people full of confidence, even falling into greed, losing all rationality."

"This is the stock market, a money game that points directly to the heart!!"

"How much capital have we shipped out in the last two days?"

"Over 30 billion."

"Still too little. The task Brother Junlin gave us is 150 billion, so we must strive to sell 200 billion in capital, understand?"

Listening to the vow made by Zheng Huan, these Traders were also very motivated.

In 2 days, they had already shipped 30 billion.

Under normal circumstances, they would ship about 150 billion in 10 days, which would indeed perfectly complete the task.

But if they want to over-fulfill the task, they must put effort into the market aspect.

This requires understanding when Retail Investors want to buy, when sentiment is high, and when capital will buy at any cost.

This time, because of the Central Bank Mother cutting interest rates, coupled with the money-making cases of Old Brother Zhao and others, they were able to ship so easily.

It would not be so easy to be this relaxed again.

However, they actually had a margin for error.

At worst, they would just Dump the stock price down a bit; Wang Lin had no specific requirements for this.

...

Mid-May.

In these 10 days, not only many Institutions at home and abroad, but also keen Hot Money, had already sensed something.

Although the overall market index was rising, capital was frantically flowing out.

This scene made some people feel uneasy.

Especially Xu Xiang.

Regarding the A-share market, he had always believed in "save yourself first".

After discovering that there might be risks in the overall market index, he made a quick decision and began more frantic buying and selling.

Yes.

That's right.

Not selling, but buying and selling.

As a top-tier Hot Money player who grew up from short-term trading, how could he not see the risks in the stock market? But he believed in himself more; there was no clear signal yet that the stock market would collapse.

His capital volume was not as large as Wang Lin's. According to his estimation, he only needed 3 days to leave the market.

This was too easy for him.

Moreover, in this great bull market, even if the authorities really issued a clear signal, in the face of this mighty bull market, it would not suddenly brake.

Those crazy Retail Investors would still let the wheels keep rolling forward.

At this rolling time node, it was the time for him to run away.

I have to say.

Xu Xiang really understood the A-share market thoroughly, because future events would indeed go down as he thought.

At the same time.

Xu Xiang also knew in his heart who was running away during this period.

In Zexi Private Equity.

Xu Xiang looked at the capital table summarized by his subordinates, and his heart was filled with emotion: "Crazy. I really didn't expect that in our small temple of the A-share market, it could accommodate a genius like Brother Junlin!"

"Over 300 billion in capital, and that's just the base. God knows how much money he has now!"

"The highest daily turnover of the entire A-share market is only over 1 trillion. The volume of one person occupies a part of it. It's too terrifying!!"

"In this crazy rising spectacle, the only person who can see that the stock market is going to fall and start to lay out and run away in advance, other than him, should be no one else!!"

Xu Xiang guessed correctly.

Nowadays, this kind of money-picking spectacle that happens once in a decade in the A-share market, who would want to run away?

Don't those Institutions know that the overall market index has risks?

Don't the Hot Money know?

Even for Retail Investors, don't they understand in their hearts that the stock market has entered the stage of "greater fool theory"?

After all, during this period, stocks with prices below 10 yuan almost hit the limit every day.

Not to mention those big stocks; there was almost no one selling.

Even if they wanted chips, they couldn't get them.

Coincidentally, during this period, Wang Lin started shipping.

In some respects, it unexpectedly facilitated the rapid circulation of chips in the stock market.

Between May 15th and May 25th.

Interested people made statistics that the overall market index had a net outflow of over 400 billion in capital.

But strangely, the entire overall market index was still maintained at over 4700 points.

It was simply damn terrifying!!

And when it reached May 28th.

Under the pulling of a certain Institution, the overall market index surged 3% in one day, and the shanghai composite index soared 140 points!!

This once again ignited the madness of Retail Investors.

"Holy shit, the overall market index is crazy. It surged more than 3% in one day. All the stocks in my hand hit the limit today!!"

"It's really comfortable. These days are simply picking up money every day!!"

"Damn, half a month has passed, and the overall market index finally had a net capital inflow today. No wonder the overall market index soared today!!"

"What does that have to do with this? Turnover can also be faked. Watching this to trade stocks will make you lose your pants!!"

"Then why do you think it is?"

"I don't know, but I only know that my account has started to take off!"

"I made over 200,000 today. I feel like I'm dreaming. I can earn so much in one day. Why would I still go to work?!"

According to incomplete statistics, most of the employees who resigned in May had made money in the stock market.

Some of them could even earn hundreds of thousands a day.

While their monthly salary was not even ten thousand.

This extreme situation made some people unable to distinguish between reality and fantasy.

There is also a very interesting statistic.

During this period, bath centers were full every day.

If you didn't book in advance, you couldn't get a spot at all.

Some technicians in the bath centers would even chat about which big shots in the financial industry they received today, and how they bragged about how much money they earned in a day.

This stimulated these technicians to also rush into the A-share market to trade stocks.

Wave after wave of incremental capital was still entering the market.

That's how the stock market is.

The more it rises, the more people enter.

But inside Junlin Finance.

The 150 billion in capital requested by Wang Lin had actually completed 200 billion in capital chips.

Over-fulfilled the task by 50 billion.

At this moment, it was already the end of May.

Wang Lin looked at the rising stock prices on the board and the increasingly crazy stocks.

He also smiled and shook his head.

In the warehouse, there were still over 200 billion chips left.

Some of these 200 billion chips were Public Fund stock-type funds, which were forced to not be empty-handed and had a minimum position limit of 80%.

Some could continue to rise.

This part accounted for about 40 billion.

With such a small amount of capital, Wang Lin felt that these chips could probably rise another 50 points, no problem.

The final madness is also madness. 20 billion, even if only 30 points were left when running away, that would be enough.

10 billion, that is something that can be easily earned in the current stage of the stock market.

If it were any other time, making this much money would be harder than reaching the heavens.

"You guys are truly impressive. I said 150 billion, and you actually pulled off 200 billion for me!"

Wang Lin felt a bit emotional.

"In that case, let me distribute some of your rewards in advance!"

"Everyone gets a small bonus of 2 million. Buy cars if you want to buy cars, buy houses if you want to buy houses. For those of you saving up for a big villa, once this wave is over, you'll have plenty to be happy about!"

Wang Lin was never stingy with his employees.

These were the Traders who helped him sell stocks, and they were also his most core department.

Upon hearing Wang Lin's words, a thunderous roar instantly erupted from below.

2 million.

A small bonus!?

Perhaps only with Brother Lin at Junlin Finance could such things be said?

Some of them recalled their time at other companies at this moment.

Let alone receiving bonuses in the middle of a project like this.

Even when it came to final rewards, they were sometimes overlooked.

With Wang Lin, they received the utmost respect.

"You can take a short break for the next two days and watch the market dynamics."

"The next time we sell, it will be when the real crash happens!!"

Wang Lin's frantic selling during this period.

It also attracted the attention of the exchange.

Upon seeing the funds frantically flowing out of the stock market, the Village Chief's eyes couldn't help but twitch.

Damn it.

Everyone says that when prices rise too much, people will sell.

But he hadn't seen many people sell off their positions like Wang Lin during this period.

Most people would just sell one stock and immediately turn around to buy another.

The current market atmosphere was so heated that even some stock market veterans couldn't suppress the greed in their hearts.

Even knowing there was a pit, they still wanted to jump into it.

Everyone was gambling, gambling that they wouldn't be the one left holding the bag at the end.

Most importantly, the market trend during this period was so hot that the market actually managed to absorb this 200 billion in funds and still continue to rise.

The Village Chief had also realized something was wrong at this moment.

Damn it, if the stock market kept rising like this, something would definitely go wrong.

Because this wave of growth was never a normal type of increase.

As for the reserve requirement ratio cuts and interest rate cuts, while some of it was intended to boost the stock market, most of it was considered for other reasons.

For instance, exchange rates, or various hedges against the US.

"What is the situation in the margin trading market now?" The Village Chief could no longer suppress his anxiety.

Even 200 billion in chips had been eaten up, and this 200 billion had truly, genuinely disappeared.

Because these chips were all in Wang Lin's hands.

The Village Chief didn't believe that Wang Lin would use this 200 billion to come back and take over the market after it crashed.

Even if he were patriotic and wanted to take over for the sake of the country.

It was impossible for him to buy at the limit up, right?

Just dragging it out for two days would cause tens of billions to evaporate from the market.

"Village Chief, the sentiment regarding off-exchange margin trading might be excessively heated."

After conducting various precise calculations, the staff member in charge of statistics.

His face turned pale as he said, "Besides the visible margin financing balance, which has already reached 1.8 trillion and is about to break through 2 trillion, off-exchange margin trading is the real disaster area, and it is particularly severe!!"

"Hengsheng, Mingchuang, and Flush—these three companies have already seen the scale of off-exchange margin trading funds connected to our officially registered systems reach 500 billion. The biggest chunk comes from the Hengsheng HOMS system, totaling over 400 billion. They are trying to crazily swallow us up!"

"At the same time, besides the data we see, I also looked at the responses from the Brokerage Firms below. Shenwan Hongyuan Securities believes this data does not reflect the reality and estimates it at 1.9 trillion, Huatai Securities believes it is around 1.4 trillion, and Everbright Securities is the most aggressive, giving an estimate of 2 trillion!"

Hearing this, the Village Chief's face also turned pale.

He had actually heard of these things and was mentally prepared.

But when he actually received this data, he still couldn't hold it together.

Damn it, the discrepancy is way too large.

With such terrifying amounts of capital, let alone providing a floor, it's impossible to protect it at all, okay?!

"What about the source of funds? They have leveraged so much capital; there must be a source, right? Could it be..." The Village Chief was furious.

The staff member nodded and said, "It's the domestic banks! But their operations are very clever; they are all playing a shadow model. First, they use wealth management funds to channel a portion into the stock market through structured trust products."

"The second part uses their respective subsidiary fund companies or securities asset management products to enter the stock market."

"The third type enters the stock market through stock pledges and the transfer of income rights from margin trading."

"It can be said that they are completely bypassing our supervision to form this massive margin trading."

The Village Chief could barely stand.

This was definitely a failure of their supervision.

If such a huge amount of capital were to collapse and start to Dump Stock, it would definitely be a tsunami.

No one would be able to withstand it at all.

"Why is there so much capital? Is it that easy for Retail Investors to access margin trading?" the Village Chief muttered to himself.

The staff member smiled bitterly and said, "Village Chief, you are busy every day focusing on high-level matters and the big picture. You probably don't pay much attention to such minor things."

"Take those margin trading platforms nowadays; they offer one-stop services. For regular margin financing and securities lending, the leverage is basically one-to-one, and there is also a 500,000 threshold."

"But in off-exchange margin trading, there are no such restrictions. Most importantly, the leverage ratio is at least 3 times, 8 times is normal, and there are even cases of ten-to-one. You can get 100,000 with just 10,000, and the interest rate is only about 15%. Given the current market craze, buying basically means making money. Who wouldn't be tempted?"

The Village Chief stood up with difficulty.

He said, "Issue a warning immediately. If someone really goes for 10 times leverage, a 5% drop will trigger a liquidation. They are truly daring!!"

The man deeply agreed: "Because of the crazy rise in the stock market this year, countless novices have been introduced. They don't understand the stock market at all, nor do they know risk control. They only know that as long as they buy a stock today, they can make money tomorrow. As for losing 5%? In their impression, such a situation is impossible to happen."

"What I am most worried about now is that once the stock market starts to fall, these things will trigger a chain reaction."

The Village Chief's worry was absolutely correct.

With such super-high leverage, the risk of this off-exchange margin trading was destined to be very high.

It was so high that a single chain reaction could cause the entire market to crash.

For those Stock Investors with 10 times leverage, as soon as the stock market falls, they will be the first to have their positions liquidated.

With just one fluctuation, they wouldn't even be able to escape.

Once the margin trading platforms start forcibly liquidating their accounts, it will trigger the classic cycle of decline - liquidation - further decline - further liquidation.

Finally, a stock market crash begins!

"Immediately, go through the procedures, apply for management measures regarding margin financing and securities lending, start restricting margin financing and securities lending, and we must rectify the margin trading business!!"

Upon hearing this, the staff member looked troubled: "Will this cause panic in the market?"

The Village Chief glared at him and said angrily, "Then tell me, what should we do now?"

"Wang Lin has already sensed this situation and has already run away with 200 billion. Look at his account; there is still about 200 billion left. If we let him keep running and the number of people taking over the market continues to increase, what do you say we should do?"

"Even if he doesn't run, others will definitely sense the risk and start running away."

"If a consensus is formed among the public by then, the stock market will completely crash!!"

"A long pain is worse than a short pain. This margin financing and securities lending must be plugged now!!"

3 days time.

The management measures regarding margin financing and securities lending were quickly passed, with the note that it was a draft for public comment.

There was no other way; an official document could not be passed in such a short time.

And it was during these three days.

Wang Lin saw the latest system notification: "The Village Chief's side is drafting regulations regarding margin financing and securities lending, expected to be issued in 3 days!"

This notification made Wang Lin's heart skip a beat.

Regulating margin financing and securities lending—isn't that equivalent to withdrawing loans?

The stock market is rising so fiercely now, all relying on this leverage to support it.

If this leverage is removed, wouldn't that directly declare a market crash?

The problem is, it's only just June, and the timing is quite a bit earlier than the crash he remembers.

Could it be?!

Wang Lin looked at the 200 billion funds in his account and instantly realized something.

It seems that it was because of his appearance that the crash came early.

But since he knew, the remaining 40 billion in chips could also be sold off.

Immediately, Wang Lin called Zheng Huan: "Tomorrow, sell off everything that can be sold!"

Zheng Huan was stunned for a moment, then immediately said: "Guarantee to complete the mission."

As for Wang Lin's own Hot Money position, it was just over a billion, and Wang Lin did not intend to sell it.

On the weekend evening, the Village Chief looked at everyone below and said: "That's it then. Whether it will be a storm or something else afterwards, it's up to fate!!"

That night.

The announcement was issued.

It instantly caused an uproar.

Because this was the first time the authorities began to change direction.

Margin financing and securities lending are starting to be regulated?

Or is it that the bull market is coming to an end!?