After the Divorce, I Could Hear the Voice of the Future

"Old Te, what do you mean by this?"

"The over two hundred billion US dollars trade deal agreed in November, is it like a fart? Just let it go?"

"Steel and aluminum, semiconductors, small household appliances, and equipment parts, is this for real?"

"It probably hasn't been implemented yet, it's just temporarily drafted. Let's see how our mom reacts."

A spokesperson from the relevant department held a press conference to express strong condemnation, hoping the US side would not act unilaterally and destroy the friendship both sides have built.

The condemnation was mild, but this time netizens didn't criticize it as an act of weakness.

Because anyone with eyes could see that it was a drafted bill announced prematurely, clearly as a threat.

It's like pointing a gun at you and asking if you want to surrender, and if you don't, I'll shoot.

For stock investors who got the news, it felt like the sky was falling.

No good news awaited over the weekend, instead, they encountered bad news.

According to Big A's routine, good news should be treated as bad news, and bad news as even worse news.

"Liangzi, I was wrong, save the kids on Monday."

"I just had a dream, dreaming of New Year's Day in 2016, a thousand stocks dropping limit X2."

"I'm crying my eyes out. These past few days, Liangzi has actually been subtly warning us."

"I was saying, if there was no news, how could Tianxing reduce its holdings by that much? After all, Liangzi truly loves new energy."

"Can someone tell me what to do on Monday?"

"Let's see who runs faster, my uncle said this time it's going to break through to 3000 points."

Old Mr. Zhang, a busy stock investor working outside,

went home to cook some noodles, eating while crying, tears dripping into the bowl, sitting in a dark room without turning on the lights.

At the same time, Meng Changkun, who rushed back to the company for a meeting upon receiving the news, felt a mix of emotions.

His company mainly deals in foreign trade, including but not limited to the import of medical equipment and luxury cars, and the export of household appliances, steel, and aluminum products.

Basically, any trade order that could make money was involved.

A few days ago, he got a tip-off from Lu Liang.

On the first working day of the new year, Meng Changkun held a significant meeting to settle the funds for all trade cooperations.

Under the guise of investing in new projects, urgently needing funds, even if it meant losing exchange rate differences or giving discounts, he needed to get the money back.

The company had unsettled funds totaling 215 million US dollars, and in the end, only recovered 196 million US dollars, incurring a loss of 19 million US dollars, which ate into most of last year's profits.

But Meng Changkun still felt fortunate, as a friend's foreign trade company still had a whole 300 million US dollars in unsettled payments.

The moment Old Te announced the news, he immediately offered a discount at eighty cents on the dollar, with the 300 million foreign trade settlement order, agreeing to it at just 240 million if they could get the money, earning a clear 60 million US dollars.

Yet, no one dared to take it, even though the tariff increase bill was still in draft, Old Te's unilateral scrapping of the trade order exceeding two hundred billion US dollars was already a fact.

By following suit, even though for potential future collaborations, foreign distributors might still fulfill the contracts.

But the road to debt collection would definitely be tough.

Foreign distributors could easily use reasons like foreign exchange deficit and increased tariffs to extend the normal payment cycle significantly.

If it gets dragged on for a year and a half, it can easily collapse, and in this way, they can reasonably withhold payment.

Given the current international situation, in pursuit of earning 60 million, one might lose 240 million, the risk far outweighs the gain, anyone can do this math clearly.

Suddenly, during the meeting, Meng Changkun received a call from a friend, "Old Meng, did Mr. Lu tell you something?"

Old Meng said nothing, and that friend chuckled wryly, "If Mr. Lu had told me, I wouldn't tell anyone either."

Meng Changkun sighed, "Is there anything you need my help with?"

That person asked, "Can you lend me 20 million for a few months? The manufacturers are really pressing hard."

In the development of the foreign trade industry until now, it's no longer a business without any capital like a zero-cost game.

As middlemen earning the price difference, upfront capital is needed, then they wait for foreign distributors to settle, and they settle with the manufacturers.

Once Old Te's draft tariff bill was announced, those manufacturers acted like mad, those nearby even came directly to the company to demand payment, fearing he might run away overnight.

"In RMB or US Dollars?"

Old Meng thought for a long time, and finally agreed.

Even though this money might not be retrievable, it was his mentor who brought him into the industry.

That person asked, "I mean in US Dollars, would you lend it?"

"No." Meng Changkun answered quite straightforwardly.

He's resigned himself to 20 million RMB going down the drain, considering it as a gift to his mentor, but 20 million US Dollars is beyond what he can bear.

Just like Lu Liang said, the winter for foreign trade has come.

They are like bears hibernating, capital is the fat, only by storing enough fat can they safely endure the winter.

"RMB is fine," the person smiled wryly.

"Public account or private account?"

"Public account, hold on for a while, see if there's a turnaround?"

The person tentatively asked, "Old Meng, did Mr. Lu say anything else?"

Meng Changkun fell into silence once again.

The person laughed at himself, "Sorry, I shouldn't have asked."

Not long after, finishing the call with his friend, Old Meng's eyes were complex, with a long sigh, "Owed another big favor."

That night, the entire internet was discussing, if Old Te unilaterally pursued this, what would be the future economic trend.

Lu Liang was staying at a private equity firm on the 17th floor, watching the offshore yuan market.

A candlestick chart soared, effortlessly breaking through the 6.7500 barrier.

In the evening, before the news was announced, the exchange rate was 6.7100.

A piece of news shot it up by 400 basis points.

"How much did we earn tonight in total?"

Lu Liang suddenly asked, and Sun Yutao quickly pulled up the real-time data, "If we settle now, it's 2.3 billion US dollars."

They had been lurking since Thursday, this time using 60 billion US dollars, leveraging three times, shorting the yuan.

Invested funds were 180 billion US dollars, with each basis point fluctuate worth 575 thousand US dollars in profit or loss.

Lu Liang said in a deep voice, "Cover the position if there's a rebound, and wait until 6.7900 before evaluating the situation."

"Will it break 6.8?" Sun Yutao was surprised.

"Perhaps."

Lu Liang pondered, not giving a definite answer.

[April 2, offshore yuan dropped below 6.8 for the first time...]

[July 5, offshore yuan broke below 6.9 for the first time...]

July 6 is the day the tariff increase bill is officially implemented, bad news will land, and the market will start to adjust.

By riding out these two waves, there was at least a billion dollars to be made.

Lu Liang would remember these two pivotal moments, especially the July 5th one.

He intended to be a short-seller first, then a bullish player, trying to blow up as many short-selling institutions as possible, forcing them to cough up any money made from shorting.

For those who didn't play stocks, the two weekend days were undoubtedly joyful, wishing only to rest a few more days, enjoying the feeling of waking up naturally.

But for stock investors, it was unbearably long, two days, forty-eight hours, every minute and every second felt like pins and needles, a thorn in the back.

Some even jokingly called Monday judgment day, having prepared themselves mentally for a ten-point loss.

That morning, Lu Liang also got up early and arrived at the company.

At ten past nine, he walked into Zhang Jing's office, with a bun in his left hand and soy milk in his right.

Lu Liang asked with a smile, "How many overnight orders were placed for the last trading day?"

"If we only count the stocks we're holding, there should be over 40 billion in overnight orders."

Overnight orders are pre-market orders, placed on the evening before the trading day.

In A-shares trading rules, there's a time priority principle, thus the orders placed the previous night have much quicker execution rates than those placed that day.

Overnight orders usually appear in stocks where there's a need to act swiftly.

If any stock suddenly encounters bad news, one must place orders in advance, possibly getting ahead of institutions to complete transactions.

Once the market opens and plunges to the floor price, bulk transaction priority is executed, queuing wouldn't help unless the bulk orders are canceled, or the bulk orders are fully purchased.

"Eighteen stocks alone with 40 billion, it seems like a substantial amount of capital is flowing out of the market today."

Lu Liang squinted, as for other sectors, he couldn't care, but the new energy sector's foreign capital and Northbound Capital, they were all locked in, each one had to steadfastly safeguard the market.

"Mr. Lu, when are we going to ramp up?"

Zhang Jing asked, they didn't have many chips available.

If their idle position line is still above 20% before month-end settlement, they would receive a warning from the Securities and Futures Commission.

Lu Liang replied with a smile, "Lift the board right at the opening, but we can't see a rally this morning, let's flush some people out underwater first."

The new energy sector had risen for too long, taking this opportunity to shake out some of the previous profit-takers, attracting newcomers to join in.

So there can't be a limit down, if there were, they wouldn't be able to escape, would probably choose to add positions, and continue to resist.

Seven or eight points underwater is the best spot for a shakeout.

They can escape but must sell at a loss.