Chapter 38

On Monday, March 16, Lu Ming embarked on his first day of work with Tiansheng Pioneer Mixed Fund. He arrived at the company headquarters around 9 a.m., and it was notable that the subscription amount for the fund had already exceeded an impressive 78.5 million yuan. This figure, however, was dynamic, as Christian Democrats retained the option to revoke their subscriptions until 3 p.m.

It's important to note that in the realm of over-the-counter (OTC) funds, fund managers are constrained from purchasing constituent stocks on the same day that investors subscribe to the funds. This limitation arises because the funds need to traverse a "special settlement account" before transferring to the corresponding custodian bank.

For Lu Ming, this meant that he couldn't immediately execute trades with the newly subscribed funds. Presently, he could only work with the existing 80 million funds on hand.

Around 9 a.m., Lu Ming proceeded to the trading room, an area strictly regulated and considered a forbidden zone due to the importance of risk management in fund companies. Tiansheng Fund Company adhered to industry regulations meticulously, implementing stringent procedures from order issuance to stock trading execution. The trading room was equipped with an access control system to ensure secure entry and exit of funds, considering the pivotal role it played in the company's operations.

Three young traders were diligently monitoring market conditions on their computer screens in the trading room. Upon entering, Lu Ming, as a fund manager, adhered to the rigorous supervision standards by handing over his mobile phone. The trading room was equipped with cameras on desks, a system for regular data tracking, and utilized big data technology for real-time monitoring—an evolutionary response to historical incidents of power abuse in the market.

The call auction for the day officially commenced at 9:15 a.m. Lu Ming, seated in his trading office, observed market conditions on multiple screens, providing him with rich information and making it easier to analyze orders. Simultaneously, the traders in the central trading room were on high alert, awaiting Lu Ming's trading orders.

At 9:22:30, Lu Ming issued his first set of instructions for the day's operation. The strategy involved closing 30% of all open positions, bidding out and placing orders at the last minute, and continuing to close 30% at the opening. The remaining 10% would be closed incrementally. This intricate plan aimed to change positions, exchanging shares and replacing all current constituent stocks with new ones, while maintaining a minimum position of 30%.

The operation also considered the constraints of the current market conditions, as they were insufficient to trigger short position standards. The strategy included closing the last 30% of positions, rotating to buy new constituent stocks, and ensuring the total fund position remained above the stipulated 30%. The nuanced approach highlighted Lu Ming's strategic thinking and his adaptability to the ever-evolving dynamics of the financial markets.