Chapter 111

From mid to late last year, the management's ideas were awakened and since November last year, the management has blocked several channels through a multi-pronged approach to transfer capital from the domestic market to the domestic market. foreign school. .

Previous reports were published on November 19 last year that the central bank window had asked some domestic banks to suspend cross-border funding of the banks' RMB accounts foreign countries, and shortly thereafter, the repurchase of domestic bonds by foreign clearing banks in RMB was also suspended.

In December last year, a Central Bank directive suspended relevant activities of new RQDII registrants, i.e. activities of qualified domestic RMB institutional investors.

In addition, cross-border operations of individual foreign banks and domestic foreign exchange operations of participating banks were also suspended. Suspended foreign exchange transactions include spot transactions, etc.

To put it directly, since last November, Yangma has started this gunpowder-free currency war with international short sellers.

It's just that it was only a temporary confrontation, and the central bank proactively adopted a defensive posture, but only closed the circulation channels of some international speculative capital.

However, these measures did not have a significant impact on the development of the renminbi. Under the impact of international hot money flows, the overseas yuan has continued to decline since November last year, falling from 6.32 to 1 US dollar to 6.42. Then, in mid-December, when the Federal Reserve announced an interest rate hike, a new sharp decline began, barely settling at a water level of 6.56. No matter what anyone says, the Central Bank seems irresistible, and the yuan will soon become an international short market. On meat.

This made them ecstatic, they didn't even think it was a good scene that Duong's mother set for them to "lure the enemy into the abyss, play hard to catch them".

This is what happened yesterday, at dawn on the first trading day of the new year, international short selling organizations stepped up their attacks on the first trading day of the new year. Excited and crazy.

Yesterday, the Yuan exchange rate in the foreign market fell immediately below 6.6, down from 6.5673 the previous day, and closed at 6.6272 yesterday, depreciating 600 basis points in all day.

And even today, January 5, at this exact moment, the depreciation continues.

Lu Ming did not care about his opponents' free short selling but directly encouraged his traders to take long positions. This wave must tear the heads of international short sellers to pieces, chrysanthemums must be stored in buckets!

... On January 6, the yuan exchange rate in the overseas market continued to depreciate by 700 basis points and fell to 6.7316 during the session. Today, the merchants under Lu Ming's command achieved the second multitasking goal of 10 billion US dollars. .

On January 7, the maximum devaluation of the overseas exchange rate was 6.7585, and international bears got goosebumps with excitement, hoping that the Yuan would happily depreciate.

What made them very excited was that Big A exploded again today, and it exploded when the fuse mechanism was activated on the first day of the new year. Today the big motherboard A jumped up and opened low, then couldn't stop draining completely.

The first level circuit breaker was triggered less than 15 minutes after the open, and after 15 minutes of trading resuming, it continued to plunge further. This time it only lasted three minutes and the second attack paid off, activating the second level kill switch. Nearly 1,500 stocks on both exchanges hit the floor.

This is a position aimed at dropping below 3000 points. Big A goes to work early at 10am.

Lu Ming in Hong Kong is also concerned about the domestic capital market situation. He knew that tomorrow the management would turn off the circuit breaker mechanism, and this circuit breaker operation learned from the old beauty made people incomprehensible, even impressive. Second, no, there are a lot of complaints from mainland investors.

Management encouraged all types of funds to increase their holdings of blue chip stocks, but there was little response. All major bluechips have reduced their prices to the floor. Sooner or later, these core assets will grow and reach new heights, but...

No one listens, no one believes and few people realize it.

Just rumble.

Management cannot be too simple. Capital thirsty for blood has swung the scythe to harvest. How to clearly state that there is a large amount of information that encourages the price increase of blue-chip stocks.

Only by maintaining the stock market first and eliminating risks can we concentrate our firepower on a single enemy, so as not to fall into a two-front war with an unknown outcome.

Today, Luc Minh won his third $100. After that, he was left with $20 billion worth of balls. Tomorrow and Friday it will all be full, and tomorrow it will be hot. For now, traders on the exchange continue to buy and continue to manage the remaining funds from today's target balls.

Looking at the overseas yuan exchange rate trend on the screen, Lu Ming couldn't help but mutter: "Nice pen, the exchange rate difference between the domestic market and the foreign market exceeds 2,000 basis points, I don't may not want. short-term arbitrage.

What is the concept of a 2,000 basis point exchange rate differential?

Suppose that, regardless of costs, the international short seller first exchanges 1 USD for RMB in the offshore market, then transfers the RMB it holds in the domestic market in exchange for USD.

With such a simple change of hands, you can make a net profit of 0.2 yuan, and this is just the lowest level of play. Wall Street speculators won't do that. They are all experts in leverage.

After applying the leverage of various financial derivatives, you can achieve ten or even dozens of times leverage, so that one US dollar can generate a profit of several yuan or ten yuan after just one reversal.

How to benefit? No wonder international short films are so feverish and passionate. Additionally, this is a T 0 transaction. Theoretically, it is possible to make repeated reverse transactions on the same day. In terms of current trading efficiency, almost two transactions can be completed in 1 second and within 24 hours. Theoretically, the frequency of transactions that can be created can reach a whopping 170,000 times. And two accounts? And three accounts? What about N accounts?

The huge arbitrage space caused by such exchange rate differences cannot be driven crazy by international hot money.

There is another activity which is direct short selling and the difference in between is the profit.

The main characteristic of the financial market is that once a positive feedback is formed, more hot capital will enter the market to form a general force to promote this feedback, leading to the acceleration of a trend. certain direction. This reaction is the same in action. A title that grows slowly at first, then suddenly becomes popular. As more people become aware of this, the resulting increase will accelerate as the amount of money entering and holding long positions skyrockets.

Hello everyone, we will find red envelopes with gold and coins every day on our official account. Just be careful to get the final benefit at the end of the year. Take the chance. Official account [Book Friends Base Camp]

Similarly, this type of positive return can also be found in subscriptions to the Tiansheng Value Growth Hybrid Fund, and the current subscription scale is accelerating.

And so was the first half of big A's mad bull market ~ www.mtlnovel.com ~ It was the combination of hundreds of millions of hedge funds that easily pushed the index up over 5,000 points. If the country does not remove leverage, it will certainly give it away. It won't be a problem if you get 12,000 points.

Likewise, decline is also a result of collective strength. The rise of mad bulls in the first half was the result of the acceleration of the bulls, and the lightning collision in the second half was the result of the joint efforts of the bears.

The same is true in today's foreign exchange market. Most people believe that the renminbi will continue to depreciate, which encourages many hedge funds to short the renminbi and accelerate the devaluation process.

Since November last year, RMB trading volume began to increase rapidly and money quickly left the country. Some domestic funds have certainly participated in this speculative market, acting as accomplices and engaging in short selling alongside international short sellers. After all, huge short spreads are just too tempting. In the face of great benefits, there will always be a group of people who disregard justice.

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