It was almost visible to the naked eye.
The market's liquidity crisis was rapidly dissipating under the effect of the massive influx of buying funds.
At the same time, on the trading board of the 'CSI 500 Index Futures Main Contract' held by Su Yi, the actively bought long orders had swept in like an angry tide, powerfully suppressing the short forces and rapidly pulling its decline on the board from near the limit-down position, up to the 8% decline mark.
Then, in just a few short minutes.
Su Yi discovered that on the 'CSI 500 Index Futures Main Contract' instant transaction interface, over 5,000 additional actively bought long orders, as well as countless short-covering orders, had appeared.
Such a fierce bullish counterattack, such a massive and indiscriminate group of buying funds.
Although he could no longer quite remember what extremely important event had happened in the original timeline at this time before his rebirth.
But based on years of trading experience.
He could perceive that such a market reaction must be stimulated by some potential major positive news.
Understanding this, and seeing the market's liquidity crisis dissipating, when the 'CSI 500 Index Futures Main Contract' intraday decline continued to narrow to 7%, and his account's profit also retreated from a peak of over 17 million to over 15.6 million.
Su Yi decisively took profits on his account holdings.
He quickly closed out the 30 lots of CSI 500 Index Futures Main Contracts he held.
After he closed his position.
The market rebound continued, with more and more funds following to buy at the bottom, and the declines of the SSE Composite Index, Shenzhen Component Index, and ChiNext Index were all rapidly narrowing.
"Huh, Su Ge, why did you close your position and take profits at this time?"
Mr. Deng saw Su Yi close his position immediately and asked in wonder,
"The SSE Composite Index has broken below 4000 points, shouldn't we press the advantage?"
Su Yi looked at the more than 21.6 million cash in his account, smiled, and said,
"Once the holdings reached my expected profit target, I naturally took profits, and... don't you have to give the bulls a chance to counterattack and recover? If it falls further, there really will be systemic financial risks."
Preventing systemic financial risks caused by continuous stock market plunges is absolutely the bottom line fiercely defended by regulators.
Now, with continuous market liquidity shortages, the bottom line might be breached.
Then, the stimulus of major positive news is bound to arrive.
Since the market's current trend has already given such feedback, Su Yi felt... there was naturally no reason not to take profits.
"Ah, I originally wanted to add more short orders,"
Mr. Deng sighed lightly and said,
"With you saying that, I feel uneasy holding my short orders."
Su Yi said with a smile,
"I'm just conducting my trading operations according to my own ideas. Mr. Deng doesn't need to care too much about my thoughts. After all, everyone's trading strategies and understanding of the market are different, and my ideas are not necessarily correct."
Mr. Deng knew this common trading knowledge that Su Yi spoke of.
He also knew that Su Yi's operational strategy, as well as his perception and views of the market, were not necessarily correct.
However, after much deliberation, he ultimately decided to continue following Su Yi's actions and quickly took profits on the index futures short orders he held.
After he took profits.
Lin Minghui saw the two men's actions and was completely bewildered.
He thought he had just turned from long to short, just experienced the massive profits brought by index futures short orders, and now... suddenly they were turning from short to long again?
However, both Su Yi and Mr. Deng no longer chose to continue holding short orders.
As a latecomer, he had no cost advantage at all with the index futures short orders he held, so he dared not continue holding them even more.
Therefore, Lin Minghui only paused for a brief moment, then followed suit and closed out the slightly profitable index futures short orders he held, and then quickly shifted his gaze back to his stock account.
He saw that the several stocks he held had all opened their limit-down circuit breakers during the market rebound.
Moreover, as market trading time progressed, they continued to counterattack.
"Could it be... that the bull market isn't over yet?"
Lin Minghui saw the SSE Composite Index rebound quickly, rushing back above 4000 points, and hope surged in his heart again.
"Is 4000 points on the SSE Composite Index truly the market bottom line that regulators can tolerate?"
"The SSE Composite Index actually returned above 4000 points!"
"The 5-point decline on the SSE Composite Index trading board has actually been completely recovered, this is... a desperate counterattack!"
"The ChiNext Index's decline also narrowed to within 2%, so fierce, both markets reversed across the board, what happened?"
"If the SSE Composite Index doesn't break below 4000 points, there's still hope for a bull market!"
Just like Lin Minghui, with the influx of countless bottom-fishing funds and the frenzied counterattack of massive actively buying funds, hope also surged anew in the hearts of other major investors suffering heavy losses in the trading room.
Just as this bullish hope was rekindled, and the market liquidity crisis was gradually melting away like ice and snow.
The market welcomed the midday closing.
The SSE Composite Index, assisted by massive buying funds, successfully turned positive at the last moment, forming a deep V-shaped recovery, while other indices also showed desperate counterattack patterns, significantly reducing their intraday declines.
After the midday close, amidst heated discussions among investors across the entire network.
Just as everyone was speculating on why the market had behaved unusually after 10:30 AM, with massive funds moving the market and alleviating market liquidity issues.
The market news front suddenly experienced a huge shock.
Super major positive news, completely unexpected and unforeseen by everyone, came rushing in.
According to market news, the central bank suddenly issued an announcement stating that, effective immediately, it would lower the deposit and loan interest rates for financial institutions by 25 basis points, and reduce the reserve requirement ratio by 0.5 percentage points for city commercial banks and non-county rural commercial banks whose 'agriculture, rural areas, and farmers' loan proportion met the targeted reserve requirement reduction standards.
Previously, most domestic institutions had expected the central bank not to continue cutting interest rates and reserve requirements in the short term, to further release market liquidity.
But now, interest rate cuts and reserve requirement cuts came without warning.
This completely exceeded the expectations of most market institutions, as well as the expectations in the hearts of countless market investors.
After all, everyone had previously been worried about seasonal liquidity crunch issues, about whether the monetary policy's easing efforts would change, and about the possibility of diminishing marginal returns from liquidity easing...
They had never expected the central bank to act at this specific time.
And in the form of special interest rate cuts and reserve requirement cuts, directly dispel such market concerns, shattering all rumors about a shift in the monetary policy's easing efforts.
From the moment the news of the central bank's special interest rate and reserve requirement cuts was announced.
Almost all market investor groups had their extinguished belief in a bull market rekindled.
Countless investors who had suffered heavy losses over the past half-month, looking at the central bank's announcement of interest rate and reserve requirement cuts, were all overjoyed to the point of tears, and their imaginary trading boards hit the daily limit again!
(End of chapter)
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