ryethenovel Chapter 233: The Time Has Come
Chapter 233: The Time Has Come
May 21, 1992, was a historic day for Shanghai's financial community. The Shanghai stock market fully liberalized its share prices, becoming a true market from that day forward.
Early in the morning, crowds thronged the entrances of Shanghai's three major securities firms, Shenyin, Wanguo, and Haitong, causing traffic congestion in the surrounding area. Haitong Securities was forced to shut down its trading activity display screen because the iron railings were damaged by the crowds.
After 10 a.m., trading volume began to increase, and all new stock prices were marked, ranging from 250 to 300 yuan. Old stocks also went crazy. On this day, Vacuum Electronics rose to 2344 yuan per share, and Yuyuan Department Store rose to 10034 yuan per share. The entire stock market went crazy.
That afternoon, holding the freshly printed Securities Times, Wu Duo, Ding Yizhang, Gao Lei, and Chen Zhe were all dumbfounded. Chen Zhe had 600 shares of Vacuum Electronics, and today Vacuum Electronics' closing price was 22368. In addition to the 2120 new shares he won in the lottery, his stock market value was now close to two million. This did not even include the value of his 400 subscription certificates.
Wu Duo and Zhang Gaolei have more stocks than Chen Zhe, and Ding Yi and Huang Xiaochuan are like two big crocodiles, with even more.
After calculating roughly how much money he had, Chen Zhe swallowed hard and looked at Huang Xiaochuan, asking, "Xiaochuan, what do we do now?"
"What should we do? Let's sell them tomorrow! Better to have the money in hand."
Chen Zhe nodded excitedly. The time to reap the rewards had finally arrived, and he was incredibly excited!
The others were the same; upon hearing Huang Xiaochuan mention selling stocks, they couldn't contain themselves any longer and all said they would go sell stocks together tomorrow.
The group discussed it further. Since Huang Xiaochuan had an account with Haitong Securities, while Ding Yi, Wu Duo, and the other three had accounts with Shenyin, Huang Xiaochuan told them to contact their account manager, Yuan Chen, before going to Shenyin the next day. Based on the number and amount of stocks they held, they were among the biggest investors and could easily request Shenyin to provide them with a private VIP room.
This way, they could operate in the VIP room, basically selling everything in batches at different times.
However, when the five of them asked Dai Xiaoguang for leave, Dai Xiaoguang was startled. What was going on? Five people were taking leave. What were these five darlings up to this time?
However, Dai Xiaoguang eventually agreed to help, which was a day off, within his means, and he wouldn't have to spend money on cigarettes for the next few months.
On the morning of May 22, the students from dormitory 222 went to securities companies separately. Ding Yi, Wu Duo, and three others went to Shenyin. For their safety, Huang Xiaochuan asked Li Huan and He Guang to accompany them to Shenyin, while Huang Xiaochuan took Zhou Wei and three others to Haitong.
After showing his account to the account manager at Haitong Securities, Huang Xiaochuan immediately received exceptionally high treatment from Zhongp. The vice president of Haitong even came to the VIP room to meet Huang Xiaochuan and exchange pleasantries. This was only because the general manager was not present; otherwise, it would not have been his turn to meet Huang Xiaochuan.
Haitong Securities assigned two traders to Huang Xiaochuan at his request.
Huang Xiaochuan planned to stay in the VIP room all day. Zhou Wei and his men guarded the door of the VIP room. No one was allowed to enter without Huang Xiaochuan's permission, and no one inside was allowed to leave.
The market continued its upward trend from yesterday. Through communication with his account manager, Huang Xiaochuan learned that retail investors are currently selling their stocks, while major institutional investors are buying them up.
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Huang Xiaochuan then instructed the trader to place a sell order for 1000 shares of Vacuum Electronics at a price of 2311. One minute later, the trader reported that the sell order had been completed, and after deducting the handling fee and stamp duty, the amount received was 2298000.
Huang Xiaochuan then stopped and observed for a while to see if the stock price of Vacuum Electronics had been driven down by the 1,000 shares. Unexpectedly, it didn't even cause a ripple, and the price of Vacuum Electronics even rose to 2327.
Since that's the case, Huang Xiaochuan had the trader place another 2000 sell orders, which were instantly sold, bringing in 4645000.
After observing for a while, Huang Xiaochuan was relieved to see that the market was still rising. He even called Ding Yi and the others to inquire about their situation. They replied that everything was normal. Wu Duo, Zhang Gaolei, and Chen Zhe had relatively fewer shares and had already sold them all. Ding Yi was still selling shares in batches, usually a little every ten minutes.
After hanging up the phone, Huang Xiaochuan instructed his traders to continue selling off Yuyuan Department Store, United Textile, and other stocks in batches. By the morning close, Huang Xiaochuan had sold all of Vacuum Electronics, as well as some of Yuyuan Department Store and newly listed stocks.
At noon, Huang Xiaochuan arranged for He Wenfeng to buy a boxed lunch outside and they ate a simple meal. After a short rest at noon, they continued to sell stocks when the market opened in the afternoon.
Before the market closed, Huang Xiaochuan sold all the stocks he held, and now he has a total of 445698337 yuan in his Haitong Securities account.
Huang Xiaochuan gave each of the account manager and two traders an 8,000 yuan red envelope, then politely declined the dinner invitation from the vice president of Haitong Securities who had rushed over upon hearing the news, got into his car and drove away.
Soon, the big clients in Haitong Securities' VIP room learned that a mysterious young man had made a profit of over 40 million yuan that day. Some people even went to the staff to try to find out more details, but Haitong had already issued a gag order, strictly prohibiting the disclosure of client information, with violators facing dismissal. So no one knew the details.
Huang Xiaochuan and Zhou Wei drove two cars to Shenyin to pick up Ding Yi and the other three. After they got into the cars, they excitedly high-fived each other in celebration.
Huang Xiaochuan was driving when he heard the other four bragging about their glorious achievements that day, especially Ding Yi, who was spitting out words. If it weren't for the fact that today was a happy day, Huang Xiaochuan would have kicked him out of the car long ago.
Upon arriving at the school gate, Huang Xiaochuan handed the car to Zhou Wei and also gave him a small bag.
"Old Zhou, there's 50,000 yuan in here. You each get 10,000 yuan. Go back and divide it among yourselves."
Zhou Wei was startled and didn't dare to take it. Huang Xiaochuan threw it directly into his arms, and then called Ding Yi and the others to enter the school gate together.
In this battle, Ding Yi earned 37 million, Wu Duo 6.3 million, Zhang Gaolei 3.6 million, and Chen Zhe 1.9 million.
The Shanghai Stock Exchange's complete liberalization of stock prices led to a dramatic increase in trading volume. Statistics show that the trading volume of the Shanghai Stock Exchange in 1992 reached 500 billion yuan, dozens of times that of 1991. The increase in listed stocks and the surge in trading volume were predicated on the expansion of the primary stock market. In 1992, the Shanghai Stock Exchange issued 46 types of stocks to the market through a lottery system using stock subscription certificates, raising a total of 33 billion yuan. Of these 46 newly issued stocks, 20 were listed within the year. This brought the total value of listed stocks to 4435 billion yuan, with a market capitalization of 58550 trillion yuan.
It was under these circumstances that Huang Xiaochuan and his associates amassed such enormous wealth. This is the allure of the times—both magical and real. Many people earned their first fortune through this feast, such as Yang Baiwan, Zhou Daye, and Liu Dalao, all of whom started their businesses in the Shanghai stock market. There are many more such people, too numerous to list.