Chapter 35 Avalanche! It has begun!
"Damn it... this darn cigarette... it seems I really can't quit."
Liang Haiyuan has been smoking significantly more often lately than before.
He stood in the open-air smoking area downstairs from the company building, skillfully lit what was probably his umpteenth cigarette of the day, and took a deep drag.
Feeling the pungent smoke violently rush into my lungs, bringing a brief, almost self-destructive numbness.
Normally, as soon as the exchange's opening bell rings, he immediately becomes like a wound-up machine, throwing himself wholeheartedly into the ever-changing numbers game.
I was so nervous that I didn't even feel thirsty, let alone have time to come down for a smoke.
But now...
It seems that the one thing he has in abundance is time.
"Huh? Why are there so many people today?"
Liang Haiyuan was somewhat surprised to find that the smoking area, which should have been relatively quiet at this time, was now packed with people.
Moreover, without exception, all of these people were traders like him, who should have been fighting tooth and nail on the front lines of trading.
But what bothered him even more was not the large number of people.
Rather, it's the atmosphere.
In the past, this small space was always filled with low curses, frustrated sighs, and stressful silences due to failed transactions.
But today, contrary to the usual atmosphere, the place was filled with relaxed laughter, unrestrained excited discussions, and even a few undisguised bursts of triumphant laughter!
It's practically like throwing a victory celebration in advance!
"Oh? Isn't this Liang Haiyuan? You're out relaxing too? Looks like the market's doing well today, nothing to worry about, haha!"
A slightly familiar voice rang out. Liang Haiyuan looked up and saw several former colleagues from the same department, who were now gathered together, their faces flushed, puffing away on cigarettes.
"Of course! With the market like this, who has anything to worry about?"
Another person immediately picked up the conversation with a smile, their tone clearly showing off:
"Most of us bought the leading stocks in various industries a few days ago, and then just left them there, watching the money in our accounts grow on its own every day!"
"I heard that some of the bolder and more well-connected groups have already gotten special approval from above to directly invest heavily in stock index futures! They're making a killing!"
"And those guys in the options department next door are making a killing, they're already talking about where to go for a champagne celebration at the end of the month!"
"..."
Liang Haiyuan remained silent and did not respond.
He simply stood on the periphery of the crowd, mechanically and forcefully inhaling the cigarette in his hand, puffing away one puff after another.
The glow of Mars on the cigarette butt flickered, mirroring his current mood.
The rising white smoke blurred the excited, spittle-flecked faces in front of him, and seemed to temporarily shut out the harsh, Versailles-esque conversation.
"By the way, Liang Haiyuan, how's the situation at your Seventh Department?"
Finally, someone seemed to remember him in the corner and casually asked a question.
"Ha, their group? Is that even a question?"
Before Liang Haiyuan could answer, someone nearby immediately interjected in a half-joking, half-teasing tone:
"What's the stock market like right now? It's like dragons dancing in the wind, a raging fire! Money is everywhere in the market; it feels like you can just close your eyes and click the mouse, and money will flow into your account! There's practically no possibility of losing money!"
"Hahaha! That's right! That's a perfect description! It's practically free money! Anyone who loses money at this point is in a worse situation than the Chinese national football team qualifying for the World Cup!"
Everyone burst into laughter without any restraint.
They were all immersed in this unprecedented capital frenzy, so excited that they could hardly contain themselves.
That's understandable.
Liang Haiyuan stubbed out his cigarette in the ashtray, a wave of indescribable bitterness and heaviness washing over him once more.
Right now, it is indeed a seemingly endless feast of 'money making money'.
An era where even fools can make money.
Just looking at these guys who are usually so busy they wish they had three heads and six arms, even timing their bathroom breaks, and now they're gathered here so leisurely and relaxed, smoking, chatting, and bragging, you can tell how incredible this market trend is.
" Liang Haiyuan, aren't you going back to your office?" someone asked casually as they were about to leave.
"Ah, um. You guys go back first, I... I'll stay a little longer." Liang Haiyuan waved his hand somewhat stiffly.
"Alright, let's go up first."
As the crowd gradually dispersed, the smoking area quickly returned to its usual quiet, with only the smoke slowly dissipating in the air.
Liang Haiyuan sat alone, somewhat lost in thought, on the cold bench.
His mood, like the gray sky above him stained by industrial fumes, was filled with depression and confusion.
No matter how he analyzed, observed, or tried to convince himself...
This frenzied surge in the stock market shows no signs of ending anytime soon.
The unusually festive atmosphere in the smoking area just now was enough to explain everything.
That place is usually filled with the most primitive and unbearable curses and roars caused by losses due to misjudgment and improper operation!
But now, the place is filled with joy and laughter!
On everyone's face was an undisguised fervent anticipation for the performance bonus that was about to arrive this month—a bonus that was sure to be extremely generous!
"When the time comes... to distribute bonuses... are we in the Seventh Department just supposed to watch others count their money while we... silently lick our wounds?"
This thought gnawed at his heart like a venomous snake.
Liang Haiyuan let out a heavy, suppressed sigh, and finally stood up.
Forget it, there's no point in thinking about it anymore.
I still need to go back to the office first.
Work... always needs to be done.
Although... he has absolutely no idea what he can do back in that desolate, green Seventh Department.
Perhaps... all I can do is stare blankly at the screen.
"...Um?"
However!
When Liang Haiyuan dragged his heavy steps and pushed open the door to the department office with a heavy heart, the scene in front of him made him freeze in shock!
He immediately felt a jolt throughout his body!
The expected dullness and deathly silence did not occur!
Instead, it is—
Chaos ensued!
Utter chaos!
The entire spacious office was filled with people!
Whether they were members of their Seventh Department or traders from other departments next door, they were all running around like madmen between their workstations and the aisles, as if their butts were on fire!
Everyone's face was filled with terror and despair!
The sound of typing on the keyboard and mouse was as dense and piercing as a stormy rain!
Various incoherent screams, angry roars, and wailing cries rose and fell in waves!
The scene was so chaotic... if you didn't know better, you'd think a terrible earthquake had just struck!
"What...what's going on?! What happened?! What on earth has happened?!"
Liang Haiyuan felt his heart leap into his throat. He grabbed a young employee from his team who was stumbling past him and asked urgently.
"Haiyuan-ge! Why are you only getting back now!"
The young employee, who was usually quite quick-witted, was now as pale as a sheet of paper. His lips were trembling, and he could barely speak. His voice was filled with undisguised fear.
"No... Xiao Li! Tell me first! What's wrong with everyone?! They're all acting like they've lost their souls?! Has the sky fallen?!"
Seeing that the other members of his group were all pale and had unfocused eyes, as if they had suffered some kind of devastating blow, Liang Haiyuan's unease instantly increased a thousandfold!
"Just...just now! Just a few minutes ago!"
The employee named Xiao Li seemed to have used all his strength to barely squeeze out a few words, his voice trembling:
" The Securities Regulatory Commission has suddenly issued an announcement! It's declaring a complete restriction on... margin trading!"
"What?!"
These two words were like two thunderbolts from the heavens, striking Liang Haiyuan hard on the top of his head!
His mind went completely blank for a moment!
He was frozen in place, as if he had been frozen in place by a spell!
The blood seemed to freeze at that moment!
Restrict margin trading!
what does that mean?!
This means that the authorities are personally involved!
To curb the short-term overheating of the stock market!
We must use the strongest and most unquestionable approach to forcibly sever the most important artery of funding that has been frantically injecting capital into the stock market—margin trading!
Commonly known as "borrowing money to speculate on stocks"!
"That's why...that's why everyone...has completely gone mad!"
Xiao Li was on the verge of a breakdown:
"You surely know! Right now! The astronomical sums of money pouring into the stock market right now! The vast majority of it... the vast majority of it! is borrowed money through margin trading, with leverage several times or even ten times!"
That's right!
The reason why the stock market was able to experience such a strong surge in such a short period of time is...
To a large extent, this is due to the policy that the government previously vigorously promoted in order to stimulate the economy—margin trading and securities lending!
Simply put, it allows investors to use a small amount of their own capital as margin to borrow several times the amount of their capital from brokerage firms for stock trading!
For example, you only have 100,000 yuan in principal.
Through margin trading, at the height of the frenzy, one could borrow up to 10 times the amount, which is a full 1 million yuan, and invest it in the stock market!
It is this enormous leverage, like a stimulant, that can instantly amplify the wealth effect!
This has led countless investors, dreaming of getting rich overnight, to flock to the stock market like moths to a flame!
But the problem is...
The official attitude has suddenly changed!
Suddenly, the "capital tap" that had been infinitely amplified was tightened!
They announced strict restrictions, or even a complete ban, on new margin trading and securities lending transactions!
Therefore, the extremely crazy upward trend that was originally driven entirely by huge leveraged funds will inevitably be devastated!
It might just fall down!
It even collapsed like an avalanche!
For those investors who previously borrowed money to buy stocks with high leverage, once the stock price falls to a certain preset warning line, the brokerage's forced liquidation mechanism will be triggered immediately!
Because their margin was no longer sufficient to cover potential losses!
The stocks in their accounts will be forcibly sold off on the market by the brokerage system at the fastest speed, without regard to any cost!
To recover the lent funds!
This forced sell-off will further exacerbate the market's panic selling...
Ordinary investors who originally held stocks with their own funds would also be thrown into extreme panic upon seeing such a terrifying, apocalyptic scene!
They would sell all the stocks they held, as if they were avoiding a plague, regardless of the price!
I just want to escape this collapsing market as soon as possible!
then...
Sell orders! More sell orders! They're coming in like a tsunami!
Pay the bill? Sorry, that doesn't exist!
Thus, an extremely terrifying vicious cycle has formed!
Like the first domino to fall, it triggered an irreversible chain reaction!
Avalanche! It's started!