Return to Singapore 1995

"If I'm not mistaken, this is agarwood, the best of the best agarwood!" Li Xiaofan said.

"Agarwood, what is that?" Lin Zhiyong knew nothing about these things at that time, but he became very obsessed with them after 2000.

"Agarwood, also known as agar, agar is the abbreviation of Hainan. Agarwood is the best of the best agarwood. There is an ancient poem in the Qing Dynasty that says: Mountain rents are sold to seashells, and the cheap agarwood is sold in the market. The agarwood mentioned is agarwood, which is the best of the best agarwood. In ancient China, it was called agarwood, which is softer than agarwood. Usually in a large piece of top-quality agarwood, only a very small part can be considered agarwood, which is extremely precious!"

At this time, as Li Xiaofan polished it, the faint fragrance of the agarwood bracelet flowed and jumped between their nostrils. The fragrance jumped from the nasal cavity to the forehead and reached the forehead, lingering on the top of the head, sometimes jumping to the back of the head, and sometimes returning to the throat, making people yearn for it indescribably. Smelling it carefully, the fragrance is varied. The initial fragrance is like the fragrance of distant flowers and plants, extremely beautiful, the main fragrance is also sweet, cool and rich, and the tail fragrance is charming and long-lasting...

"It smells so good! Brother Fan, is this agarwood valuable?"

"I don't know the price of agarwood, but it is very precious!"

"So, we made a lot of money?"

Li Xiaofan smiled and said, "Well, this thing is a treasure for those who know it, and it is garbage for those who don't know it!"

While talking, Li Xiaofan looked at his watch and it was already past 3:30 in the afternoon. Li Xiaofan remembered that today was March 23, the day of the 327 Treasury bond incident.

He quickly called Zhu Junda.

At that time, in addition to the normal trading hours of futures trading on the Shanghai Stock Exchange, the Shanghai Stock Exchange also opened a special trading session for treasury bond futures, which was held from 15:30 to 16:30 every trading day, that is, after the stock trading ended. The advantage of special trading is that it does not affect stock trading and is easy to activate treasury bond futures.

"Ada, how is the market for 327 Treasury bonds?"

"Brother Fan, you've made a fortune!" Zhu Junda on the other end of the phone was extremely excited, staring at the 327 market, "Last night, the market was rumored that the Ministry of Finance might redeem 327 Treasury bonds at up to 148 yuan, and then this morning when the market opened, 327 Treasury bonds jumped up to 148.76. The bulls are unstoppable. It is said that several shorts have turned to long and joined the bulls! Today, the highest price reached more than 151 yuan, and it is currently around 150.8 yuan..."

"Great!" Li Xiaofan was secretly happy, 327 Treasury bonds were repeating the trend of the previous life.

On the other end of the phone, Zhu Junda's voice was trembling slightly because of excitement: "The account book has made a profit of more than 80% and more than 1.2 million. Brother Fan, should we close the position? Stop while we are ahead? More than 1.2 million, brother! How many lifetimes will it take to make that much money!"

Li Xiaofan exhaled a puff of smoke and said: "Calm down, brother, listen to me, don't move your position, and hold on until the closing! Don't do anything!"

Around 4:20, Li Xiaofan called Zhu Junda again.

"Brother Fan, it has broken through 151 yuan again, and it is now around 151.2 yuan. Brother, your 1.5 million has doubled. Do you want to close the position?" On the other end of the phone, Zhu Junda's voice was distorted because of excitement.

"It's okay, don't move your position, brother Ada, just keep an eye on the market!"

As soon as the voice fell, at 4:22:13 in the afternoon, the transaction price of the previous 327 treasury bonds was still 151.30 yuan.

In an instant, suddenly, a large number of selling orders surged out continuously.

500,000 lots! The traders at the Shanghai Stock Exchange could clearly see that the first big order had been placed!

At that time, these traders were stunned, and the phone calls in the market kept coming and going, and there was another round of bombardment.

The last super big order: 7.3 million lots! The price of "327" was forced to close at 147.40 yuan.

"Ada, are you still there? Ada!"

On the other end of the phone, Zhu Junda was stunned. He had never seen such a scene before, and he was stunned.

It was so shocking! He couldn't speak for a while.

"Brother Fan, the 1.5 million profit you could have made just now was instantly wiped out! The closing price just now was 147.4 yuan, and our cost price was 147.6 yuan. After calculating this, we still lost tens of thousands of yuan in principal!"

History really repeated itself exactly!

On the 23rd, the Ministry of Finance issued an announcement that the 327 Treasury bonds would be redeemed at 148.50 yuan, and the short-selling judgment led by Wan Guo Securities was completely wrong. On that day, China Economic Development led many parties to buy heavily by taking advantage of the favorable situation, pushing the price to more than 151 yuan. Several brothers of the former Wan Guo Securities Alliance turned from short to long when the situation was extremely unfavorable to the short-sellers, and bought 500,000 lots to go long. The 327 Treasury bonds rose by 2 yuan in 1 minute. This meant a heavy blow to Wan Guo Securities: a huge loss of 6 billion yuan.

In order to protect his own interests, Guan Jinsheng, the boss of Wan Guo Securities, made a crazy move to avoid huge losses eight minutes before the closing: he overdrew and sold Treasury bond futures and shorted Treasury bonds. In the last 8 minutes of trading, Wan Guo Securities made a large number of overdraft operations, using 7 million lots and 140 billion short orders to directly hit the price to 147.4 yuan at the close. The 327 Treasury bond contract plummeted by 3.8 yuan. If this closing price is valid, all the short positions opened on that day will be liquidated...

On the phone, Li Xiaofan comforted: "Ada, it's okay, we will make this money back later!"

"Brother Fan, when will you return to Minnesota?"

"My flight tonight arrives in Shanghai. If I catch the evening train, I should be able to arrive tomorrow morning! Let's meet and chat then!"

In the evening, Li Xiaofan and Lin Zhiyong took the last flight to Shanghai Hongqiao Airport and bought train tickets from the scalper at the new passenger station on the side of Hutai Road. The next morning, the two arrived at Mingzhou South Railway Station smoothly.

Li Xiaofan didn't bother to eat breakfast. After getting off the train station, he took a Xiali taxi to Mingzhou Guotuo.

At this time, several large notices had been posted on the wall of the Mingzhou Guotuo trading hall, and a large group of people gathered around the notice.

The general content of the notice on the wall was: Last night, after an emergency meeting, the Shanghai Stock Exchange announced that all transactions of the 327 Treasury bond futures trading variety after 16:22:13 yesterday on February 23 were invalid. The closing price of the "327 Treasury bond" variety yesterday was the last transaction price of 151.30 yuan signed before the violation!

There is another announcement: Shanghai Stock Exchange issued an "Emergency Notice on Strengthening the Supervision of Treasury Bond Futures Trading", which made six regulations on the supervision of treasury bond futures trading:

1. From February 24, 1995, the price limit system will be implemented for treasury bond futures trading;

2. Strictly strengthen the management of the maximum position contract limit;

3. Effectively establish regulations on customer position limits;

4. It is strictly forbidden for member companies to borrow positions from each other;

5. Control the use structure of position limits;

6. Strictly manage the use of treasury bond futures funds. At the same time, in order to maintain market stability, a special session for agreement liquidation was opened.

After seeing the announcement, some people were ecstatic, while others beat their chests and stamped their feet!

Li Xiaofan couldn't help but think of a song in his previous life: Life is like this, some people cry, some people laugh, some people lose, and some people win!