Reborn with Consumption System-Chapter 398 - 198 Adding Wings to a Tiger

Seeing Zheng Lei’s reaction, Han Lie himself was a bit puzzled.

What happened? Is it big news?

He reopened the Great Wisdom software, pulled up his customized stocks list, and saw at first glance that Wei Hua shares had soared by 10.23%.

Han Lie was stunned.

Holy Crap, a "limit-up from limit-down" move! Old Xu, you’re being incredibly aggressive!

The so-called "limit-up from limit-down" refers to a stock that rebounds from its daily lower trading limit to its daily upper trading limit within a single day, totaling a 20% intraday surge.

A limit-down implies everyone is bearish, and capital is fleeing; a limit-up means everyone is bullish, and capital is converging.

To turn the tide of sentiment from bearish to bullish within a single day requires enormous strength.

This means going against the prevailing trend and market sentiment, and it’s not as easy as retail investors imagine.

Market "limit-up from limit-down" events usually occur under three circumstances:

First, the sudden emergence of undisclosed positive news, leading to concerted action among institutions and major players privy to the information.

Second, the main players possess a large volume of shares and substantial funds. They first violently crash the price, then aggressively pump it up, deliberately playing rough.

Third, "demon stocks" that have captured the entire market’s attention. Early profit-takers hit the "nuke button" to bail out, while subsequent speculative funds, gambling on a bargain, trigger a market sentiment reversal and pull the price back up.

The second scenario had become rare in recent years because it’s considered market manipulation and is strictly investigated. However, today clearly showcased this very scenario.

Han Lie quickly calculated: Old Xu must have thrown in at least 500 million yuan, incurring an intraday floating loss of 50 million yuan.

The stock was already trending weak, yet he used his existing shares to violently hammer the price down to its limit. When it hit limit-down, bottom-fishing gamblers would snatch up a significant number of shares.

By the time he managed to pull it back up to limit-up, those who had made profits before today would sell frantically, taking his capital as their profit.

Back and forth, the cost was extremely high.

So, in fact, a "limit-up from limit-down" is quite rare, generally only occurring when highly speculative "demon stocks" are at their peak.

Wei Hua shares weren’t considered a "demon stock"; it had only risen by 130% so far. This was nothing compared to some new stocks on the Growth Enterprise Market that could increase fivefold. However, the commotion it stirred up was certainly not small.

To attract attention, Old Xu had essentially acted like a 24-karat pure gold God of Wealth scattering riches today.

Not only were all the retail investors who were trapped yesterday able to exit their positions, but everyone who entered today also made a profit—100% of them.

This was because the stock price would definitely hit new highs afterward. Han Lie arrived at this judgment almost instantly; the logic was very simple:

After Wei Hua experienced yesterday’s limit-down and today’s "floor-to-ceiling board" (the limit-up from limit-down), the sentiment among various capital pools would inevitably be highly sensitive. Therefore, next week’s trend had to be strong; otherwise, the market interest, painstakingly built up at great cost, would dissipate for nothing.

Does that make sense?

The funds that entered today were all betting on continued strength. If the trend wasn’t strong enough, they would turn and flee without the slightest hesitation.

In a weak market, both retail investors and hot money act like easily startled birds; they scatter at the slightest sign of trouble.

The major shareholder’s divestment announcement had already been released. Yet he insisted on forcing a limit-up against this negative news. How firm could market confidence possibly be?

To continue bolstering confidence and lure more "leeks" to hold the bag, the price had to keep rising.

Old Xu’s problem was that his holdings were too large; it was impossible for him to offload them quickly.

If he were to sell even a small portion of his shares—say, around 200 million yuan worth—he could easily trigger a panic sell-off, pushing the price down to its limit.

Given Wei Hua’s current chart pattern, it absolutely could not withstand another limit-down day.

In fact, even two consecutive days of declines greater than 3% could trigger a collapse.

Therefore, Old Xu had no other choice. He had to drive the stock price to a new high next week, establishing a new support level.

He would have to raise the price while simultaneously offloading shares. He’d continue until less than half of his position remained, and then he’d hit the "nuke button."

The final twenty to thirty percent of his holdings could then be sold off slowly over time.

A market maker with significant control can’t possibly liquidate their entire position at the peak. However, as long as their average cost basis is sufficiently low, they still stand to make a substantial profit.

Hmm, before offloading the shares, the listed company will very likely cooperate by releasing a fabricated announcement—such as a sharp increase in profits, beneficial restructuring news, or large new orders. Otherwise, it’s still very difficult to unload. And this is my opportunity. The opportunity to pluck chestnuts from the fire.

In Han Lie’s eyes, with his ability to see into the future, Wei Hua’s subsequent trajectory was already fixed; there were no other possibilities.

Not pump the price, and instead trap hot money players like me inside? I only have 400 million yuan in total funds, with at most 300 million yuan tied up in Wei Hua. Old Xu, on the other hand, holds over a billion yuan worth. So, who’s more afraid of the stock price collapsing? If it really crashes, I can ’nuke’ my entire position at any moment, getting out in two days at most. But what about Old Xu? Once the chart pattern is shattered and market sentiment evaporates, after four or five consecutive limit-down days, everyone still holding would be trapped inside, cursing their mothers.

Some might wonder: what if the primary market maker isn’t in a hurry and plans to manipulate Wei Hua for the long term?

Could he try to smother me, then consolidate the price for a while, then pump it up again, repeating the same game over and over, fleecing investors wave after wave...?

Indeed, such scenarios do occur. But the problem is, Wei Hua isn’t the kind of stock suitable for long-term market making.

What ’story’ or ’concept’ does it even have?

Its current sharp rise is due to news of restructuring and the anticipation of a high stock dividend. Fundamentally, however, it’s not a mobile internet concept stock, which would align with future trends.

If it misses the year-end window for speculation on high stock dividends, Wei Hua, with its highly dubious actual profitability, could blow up at any minute.

Besides, shouldn’t the costs of long-term market making be considered? There are capital costs, time costs, and the limited window during which the listed company can release positive news...

Typically, only the listed companies themselves engage in long-term market making for their own stocks. Old Xu, as a top-tier private equity fund manager, never plays that game; it’s too slow a way to make money.

As an industry insider, Han Lie knew Old Xu’s style all too well.

So why was Han Lie so shocked? It was precisely because Old Xu’s maneuvers today were too aggressive, too rushed.