High School Belle Fell in Love with Me-Chapter 38: What He Knows Best Is Data

The current market is not strict with financing review, but for Dou Ying, the main purpose is to help keep an eye on Xue Ning.

The financing limit she set for Xue Ning was only a hundred thousand, which is quite conservative compared to the generous leverage provided by major brokers.

As an industry professional and an executive, she is well aware of the current situation.

She has a lot of information, especially on the scale of the company’s margin financing and securities lending business, which has been expanding for more than a month.

It’s not just Zhongyuan Securities, other brokers are likely in a similar position.

As a core business for brokerage platforms, margin financing has struggled due to A-shares’ underperformance in recent years, resulting in minimal profit throughout the year.

With the current trend, margin financing may once again become a core business.

She returned to Jiang City for Jiang Yaoting, but that doesn’t mean she’s limited to managing a small business office; the company will still involve her in management due to her experience and capability.

"Shanying Port."

After seeing the entire 200,000 yuan invested in this stock, she opened the stock page for a look.

A small company with a market value of just a few billion, locked its price limit today; that 200,000 investment was a hit for the limit.

Flipping through the K-line chart unveiled the trend starting in April—on the surface, it seems to mark the beginning of a major uptrend; however, from a cash flow perspective, it’s not a buy point.

The stock itself is fine, with decent capital activity and potential from a structural point of view.

But entering the market with a price limit today entails significant risk.

At opening, there was an attempt to lock, but it didn’t succeed, with multiple tussles in between; even now, there’s still substantial capital involved on the board.

The situation is exceptionally complex.

It seems there’s significant capital committed to both bullish and bearish positions.

The tug-of-war persisted all day, with transactions nearing 800 million—a colossal amount.

Dou Ying isn’t afraid of losing money; she fears Xue Ning encounters a pump-and-dump scheme.

The two popular pump-and-dump schemes today are online and offline.

Whether online or offline, the core is essentially the same—recruiting people.

Offline, there are many tactics; online, there are just two methods.

One involves inviting an industry professional to make some random remarks, then using small accounts in the comment section to create buzz: "Master, I’ve realized, it’s precisely XXXX."

Or: "The master recommended XXX yesterday, and today it hit the limit, truly impressive."

Or even: "This is a true expert, ordinary people simply can’t comprehend."

Underneath, a crowd will ask: "Brother, care to share, what should we buy?"

Then there’ll be a dedicated reply: "The master made it so clear, XX** is the answer, figure out the last two letters yourself."

The other uses the current public account model to attract attention through articles, followed by some serious lectures, then subtly inserts private interests, saying: "Let me recommend someone, search XXXX, they’re the new generation of speculative capital, a frequent guest on the trading volumes list."

Then it recommends several people with grandiose titles like Trader, Stock Guest, etc.

Even directly appropriating the names of speculative capitals.

Layer upon layer, after following those accounts, they recommend another batch to follow after a couple of days.

Layering several times leads to exploiting small investors ("churning the wheat").

A hundred stocks divided among a hundred accounts to promote.

Loss-making stocks get deleted; people who followed those accounts are unlikely to trust further, losing their worth as investments.

Accounts with rising stocks instill the concept in followers’ minds: this is a real insider, said it would rise yesterday, and it did today.

When this account recommends a stock the following day, more people will join in and buy.

Filtering through rounds, there’ll always be one, two, or three to five accounts accurately recommending several increasing stocks.

At that moment, almost everyone following those accounts will believe them.

And then, the cutting reaper’s scythe falls.

They’ll collectively recommend a pre-prepared stock, leading followers to take over.

A casual profit can yield millions or even tens of millions.

But these have nothing to do with Dou Ying, as even flawless regulations can be exploited, let alone the less-than-ideal A-shares regulations.

They’re a legitimate company; the only thing done was giving out eggs to invite people to open an account for business performance.

After the market closed, with the stock price steady, Dou Ying felt much relieved.

After all, this stock had risen from over three to more than five, a high position; any participation implies risk.

While taking a sip of water, suddenly, Shanying Port released an announcement.

"Every 10 shares to receive 29 additional shares distributed at 1.5 yuan"

Upon this announcement, Dou Ying suddenly felt the water in her cup tasted bitter.

"Is it distributing so many shares?"

High transfer is somewhat akin to stock split in US Stocks or Hong Kong stocks, where some companies choose this over dividends, opting for ratios like ten-for-one, ten-for-five, ten-for-ten, etc.

But ten-for-twenty-nine?

It’s not completely unheard of, but definitely rare this year.

Isn’t this just stirring trouble?

High transfer has one advantage—enabling major shareholders to have more chips, facilitating subsequent maneuvers.

While appearing beneficial, high transfer stocks often end up as significant pitfalls.

Following high transfers, increased market chips complicate market conditions, naturally providing greater arbitrage opportunities.

Ten-for-twenty-nine indicates the company has no intentions for future financing.

The high transfer will occur in a month and a half; considering the current price over five, post-ex-dividend, the price would be over one.

Whether it’s a pump-and-dump scheme, Dou Ying isn’t very certain, but she’s not optimistic about this maneuver.

Given today’s level of fund contention, an opening limit-down tomorrow is possible.

This wasn’t a good stock to begin with.

...

After buying stocks with Xue Ning’s account, Li Yang didn’t manage it further.

The bull market hasn’t officially started; funds are gathering strength.

More importantly, he lacks capital, hasn’t turned eighteen, so he can’t open an account.

By mid-July, he’d qualify for account opening, by then this year’s hot stocks will begin revealing true colors.

In his previous life, he dabbled in artificial intelligence but lacked a strong foundation, often taking on trivial tasks.

Later, a private equity firm hired a group to develop a quantitative program.

Key to quantitative programs are algorithm and data. He led the team, using experience from previous employers to stitch together the algorithm, while he diligently fed the data, as he was a hustler on the team—at over thirty, without a house or car, with only twenty thousand in hand, he needed money.

After a year on the project, results were decent.

Despite a sluggish market, the company achieved nearly 30% annualized return through quantitative trading.

The company’s capital for quantitative trading wasn’t much, ultimately earning a hundred million.

The boss awarded a five-thousand bonus, promising a year-end bonus based on performance.

He didn’t wait for it and ended up holding a ticket to rebirth instead.

He’s most familiar with data, having been born next to a database; the doctor who delivered him transitioned from a back-end developer.