Rebirth: The Financial Giant

As early as the middle to late last year, the management's idea had been aroused, and since November last year, the management had blocked multiple channels through a multi-pronged approach to transfer funds from the onshore market to the offshore market. .

There were already news reports on November 19 last year that the central bank's window instructed some domestic banks to suspend cross-border financing to offshore banks' RMB accounts, and soon after, offshore RMB clearing banks' domestic bond repurchase transactions were also suspended.

In December last year, the central bank's window guidance suspended the related business of institutions applying for new RQDII, that is, the business of RMB qualified domestic institutional investors.

In addition, the cross-border business of individual foreign banks and the domestic foreign exchange business of participating banks have also been suspended. The suspended foreign exchange business includes spot flats and so on.

To put it more directly, since November last year, Yangma has already launched this currency war without gunpowder with international short-sellers.

It's just that it was only a tentative confrontation, and the central bank took the lead in making a defensive stance, but only closed the circulation channels of some international hot money.

However, these measures did not have much substantial impact on the trend of the renminbi. Under the impact of international hot money, the offshore renminbi has continued to fall since November last year, from 6.32 to 1 US dollar to 6.42.

Then in mid-December, when the Federal Reserve announced a rate hike, another round of sharp declines ushered in, barely stabilizing at the water level of 6.56. No matter how you look at it, the central bank seems to be unable to withstand it, and the renminbi will soon become a board for international shorts. On the meat.

This made them ecstatic, and they didn't even think that this was a good show that Mother Yang played for them, to lure the enemy into the depths and play hard to catch.

Entering the first trading day of the new year, that is what happened yesterday. The international short-sellers stepped up their offensive on the first trading day of the new year. In their eyes, victory was within their grasp, and they couldn’t help it. Excited and frantic.

Yesterday, the RMB exchange rate in the offshore market fell directly below the 6.6 mark from 6.5673 the previous day, and closed at 6.6272 yesterday, depreciating 600 basis points throughout the day.

And just today, January 5, at this very moment, the devaluation is still continuing.

Lu Ming doesn't care about his opponent's wanton short selling, and directly makes his traders go long. This wave must smash the heads of international short sellers, and chrysanthemums must be worn in buckets!

...

On January 6, the RMB exchange rate in the offshore market depreciated again by 700 basis points, and fell sharply to 6.7316 during the session. Today, the traders under Lu Ming’s command completed the second multi-tasking of US$10 billion. .

On January 7, the offshore exchange rate depreciated to a maximum of 6.7585, and the international bears were already getting goosebumps with excitement, hoping that the RMB would fall happily.

What made them very excited was that the big A was blown again today, and it was blown when the fuse mechanism was activated on the first day of the new year.

Today, the big A motherboard jumped and opened low, and then it couldn't stop venting all the way.

The first-level circuit breaker was triggered less than 15 minutes after the opening, and after 15 minutes of resumption of trading, it continued to dive further. This time, it only lasted for three minutes and the second shot was paid, triggering the second-level circuit breaker. Nearly 1,500 shares in the two markets fell by the limit.

This is a stance that is going to dive down to below 3000 points.

Big A leaves work early at 10 am.

Lu Ming, who is in Hong Kong, is also paying attention to the situation of the domestic capital market. He knows that the management will stop the circuit breaker mechanism tomorrow, and this circuit breaker operation, which is learned from the old beauty, makes everyone incomprehensible, and even feels Second, no, the mainland investors scolded a lot.

The management encouraged all kinds of funds to increase their holdings of blue chips, but few responded. The big blue chips have already fallen to the floor price. Sooner or later, these core assets will rise and reach new highs, but...

No one listened, no one believed it, and few people realized it.

Just keep scolding.

The management can't be too straightforward. Bloodthirsty capital has raised the scythe of harvesting. How can it be clearly stated that encouraging the increase in blue-chip holdings is already a large amount of information.

Only by holding down the stock market first and releasing the risks, can we go all out to concentrate firepower on one enemy, so as not to fall into a two-front battle and lose sight of the end.

Today, Lu Ming went long again for the third 10 billion US dollars. After the completion, there are only 20 billion US dollars left in the bullets in his hand. Tomorrow and Friday, all of them will be put in, and tomorrow will be white-hot.

At this moment, traders in the trading room are continuing to go long, and continue to drive the remaining funds of today's target bullets.

Looking at the trend of the offshore RMB exchange rate on the screen, Lu Ming couldn't help but muttered to himself: Nice pen, the exchange rate difference between the onshore market and the offshore market exceeds 2,000 basis points, I can't help but want to short arbitrage. .

What is the concept of a 2000 basis point exchange difference?

Suppose that regardless of the cost, the international short-sellers first exchange USD 1 for RMB in the offshore market, and then transfer the RMB they hold to the onshore market to exchange for USD.

With such a simple change of hands, you can make a net profit of 0.2 yuan from it, and this is only the lowest level of gameplay. Those speculators on Wall Street will not do this. They are all experts in leveraging.

After superimposing the leverage of various financial derivatives, you can leverage ten times or even dozens of times the leverage ratio, so that one US dollar can make a few yuan or ten yuan in profits after one flip.

How profiteering? It is no wonder that the international shorts are so excited and crazy.

In addition, this is a T+0 transaction. Theoretically, it is possible to perform repeated reverse transactions within a day. In terms of today's transaction efficiency, nearly two transactions can be completed within 1 second, and within 24 hours. Theoretically, the transaction frequency that can be created can reach a terrifying 170,000 times. What about two accounts? What about three accounts? What about N accounts?

The huge arbitrage space brought about by such a foreign exchange difference cannot be made crazy by the international hot money.

There is another operation that is to go short directly, and the difference in the middle is the profit.

A major feature of the financial market is that once a positive feedback is formed, more speculative capital will enter the market to form a combined force to promote this feedback, which will lead to the acceleration of a certain trend.

This reaction is the same in stocks. A stock initially rises slowly, and then suddenly becomes popular. When more people know about it, the subsequent rise will accelerate, because the funds that come in and do long are skyrocketing.

Similarly, this kind of positive feedback can also be found in the subscription of Tiansheng Value Growth Hybrid Fund, and the current subscription scale is accelerating.

The same is true for the mad cow market of Big A in the first half of the year, that is, the combined efforts of hundreds of millions of speculative funds to push the index to more than 5,000 points easily. A thousand points don't matter.

In the same way, the decline is also the result of the joint force. The rise of the mad cow in the first half of the year was the result of the acceleration of the bulls, and the flash crash in the second half of the year was the result of the joint efforts of the bears.

The same is true in the current foreign exchange market. Most people think that the RMB will continue to depreciate, which in turn drives more speculative funds to short the RMB and accelerate the depreciation.

Since November last year, the transaction volume of RMB has begun to rise rapidly, and funds are also flowing out of the country rapidly. Some of the domestic funds must have entered this speculative market, acting as an accomplice and participating in short selling along with international short-sellers.

After all, the huge short arbitrage is too tempting. In the face of huge interests, there will always be a group of people who ignore the righteousness.

...

(Ps: The 21st board, are you performing an epic short-running market... [foaming at the mouth.jpg])