Chapter 486: Backstab

Chen Yang's delaying strategy lasted only one day. After Jiangshan Automobile's stock fell sharply for four consecutive days, on the fifth trading day it finally opened lower by just five points.

At this point, Wang Haifeng and Zheng Weimin both hesitated. Because they felt the downtrend had reached its peak, as soon as new funds entered the market, a rebound would come quickly.

"Doctor Tian, do you think it's better to sell the stocks we hold now, or keep adding to our position and wait for the stock price to rebound?" Wang Haifeng looked at Tian Wen with hopeful eyes; at this moment he still preferred to trust the expert's opinion.

Tian Wen thought for a while and still advised Wang Haifeng to sell the stocks he held. He said: "Chairman Wang, your stock position is too large; even if you use funds to push it up, your speed to exit won't be faster than others'. In the end you'll just be making wedding clothes for someone else."

Wang Haifeng said: "Then I'll wait for others to push the stock price up before I sell; that should be okay, right?"

Tian Wen said: "In theory, that would definitely be the best outcome. But when they lift the price, if you secretly dump your shares, they're not stupid either; upon noticing something wrong they'll stop. They might even join the selling frenzy like you. In that case, the stock price would very likely hit the limit down again."

Wang Haifeng instantly felt irritated. When the stock hit the limit down, all he thought about was selling. Now that the decline has stopped, his worries have multiplied. He worries both that the price will keep falling and that after he sells it will skyrocket.

At this moment, Zheng Weimin said: "Chairman Wang, let's first sell a portion, then buy back some when the price drops. By repeating this operation we might recoup a bit more loss."

Wang Haifeng's heart moved a little, then he turned to Tian Wen and asked: "Doctor Tian, what do you think?"

Tian Wen said: "Chairman Wang, I believe the risk here still outweighs the opportunity. Even if you want to do T+0 stop-loss, the cycle shouldn't be too long."

Wang Haifeng thought for a while, then asked Tian Wen: "If we choose to do T+0, at what price level do you think buying back would be more appropriate?"

Tian Wen said with some difficulty: "Chairman Wang, I can't guarantee that. The stock has already dropped five points; if it continues to fall, retail investors' panic will be stirred again. It's possible that before you finish selling your shares, the price will hit the limit down again."

Wang Haifeng is not good at stock trading; seeing Tian Wen continue to be bearish on Jiangshan Automobile, he hesitated immediately.

He remained still, but Zheng Weimin couldn't sit still. "Chairman Wang, we should just sell first! If the price hits the limit down, we can always buy it back. At least our cost will be lowered somewhat."

Wang Haifeng thought Zheng Weimin's words also made sense. He then began operating the computer to place a sell order for ten thousand lots of his shares at the price of 23.85.

Zheng Weimin also placed a sell order for ten thousand lots.

As soon as their sell orders were posted, even lower sell orders appeared immediately, and quickly their orders were pushed out of the top five.

"What the hell is this?" Wang Haifeng exclaimed when he saw that none of his shares had traded while the price was rapidly falling, leaving him dumbfounded.

Tian Wen beside him hesitated a moment, then still said: "Chairman Wang, I suggest you break the large sell order into several hundred-lot small orders. That way it's less likely to trigger market panic."

Upon hearing that, Wang Haifeng immediately canceled the ten-thousand-lot large sell order and then placed a few-hundred-lot sell order at the latest price. This time the trades actually went through!

After successfully selling the stocks, Wang Haifeng gave Tian Wen a thumbs-up. He felt this expert still had some skill. If he had listened to Tian Wen's advice when initially buying Jiangshan Automobile stocks, perhaps he wouldn't have ended up with such a tragic outcome.

Next, Wang Haifeng handed over the task of selling the stocks directly to the traders at Dongjiang Securities. After all, he held over 330,000 lots of Jiangshan Automobile shares; selling them in batches of a few hundred lots would wear out his fingers from typing.

However, even with small-batch orders, the stock price fell quickly. After selling only a quarter, Jiangshan Automobile's stock hit the limit down again.

Seeing the stocks he bought at 42.89 drop to 22.59 made Wang Haifeng's heart bleed. His hatred toward Chen Yang also intensified.

However, Chen Yang remained hidden in Qingshui City and could inflict only limited harm on them. The urgent priority was still to reopen the limit-down board and try to sell as many of their shares as possible.

Thinking of this, Wang Haifeng immediately directed the traders at Dongjiang Securities to quickly buy Jiangshan Automobile stocks.

However, he found that Jiangshan Automobile's stocks could not be bought up completely. Even after reinvesting all the proceeds from the sold shares, he still couldn't prevent the stock from closing at the limit down.

In this round of operations, the stock price fell from 23.85 to 22.59, while his total shareholding increased by only 1,515 lots. The total value of his stocks dropped from 1.25 billion to 758 million.

He's lost a ton!

What further enraged Wang Haifeng was that Zheng Weimin sold all his 70,000 lots of Jiangshan Automobile shares at an average price of 23 yuan, yet didn't buy back a single share!

"Zheng Weimin, what do you mean? We agreed to do T+0 together, and you actually backstabbed me!"

Zheng Weimin hurriedly explained: "Chairman Wang, I actually wanted to buy too, but the construction site is about to pay wages. If I don't take some money home, my dad will find out and I'm dead."

Wang Haifeng kicked Zheng Weimin in the stomach and shouted: "If you're short on cash, just tell me directly—don't trick me into buying back the shares I sold! Are you dissatisfied that my losses aren't big enough? Or are you actually a plant sent by Chen Yang?"

The angrier Wang Haifeng got, the more he shoved Zheng Weimin to the ground and began beating him violently.

Zheng Weimin desperately covered his head with both hands, begging for mercy repeatedly. The more he pleaded, the harder Wang Haifeng hit him. The others in the VIP room, fearing they'd get caught in the crossfire, silently left.

After who knows how long, Wang Haifeng slowly walked out of the VIP room. Seeing Tian Wen waiting outside, he softened his tone and asked: "Doctor Tian, is there any hope for Jiangshan Automobile's stock to rebound next week?"

Tian Wen said: "Chairman Wang, if a stock's fundamentals are fine, five consecutive limit-downs are a rare phenomenon. I believe the shareholders of Jiangshan Automobile Group will definitely step in to stabilize the market next week. If you want to get out of your position, you'd better not hesitate any longer."

Wang Haifeng nodded slightly. He had already expended too much energy on this stock, and he didn't want to keep torturing himself.

Money lost can be earned again. With Chen Yang, that big fat sheep, around, what we lost today will surely be earned back double sooner or later.

Thus, Wang Haifeng strode out of Dongjiang Securities.

After his silhouette had completely disappeared, the security guards of Dongjiang Securities rushed into the VIP room and found Zheng Weimin collapsed on the floor in a sorry state, already unconscious.