Chapter 6: The Midpoint of the Schedule

April 1st, April Fool's Day.

The "Huaxin Mock Trading Competition" was more than halfway through, yet Zhang Yang still chose not to make any trades. His one million in mock capital remained parked in Baosteel shares. Throughout March, Baosteel had seen a total gain of 9.33%. However, because Zhang Yang had entered the market on the 9th, successfully avoiding the short-term peak of the previous week, his total return was 12.7%. In other words, his mock account showed a floating profit of 127,000.

As for his real account, his cumulative investment was 4,200 yuan, with 70% in Baosteel, 20% in JAC Motors, and 10% in Bank of China. As of the end of the morning session on April 1st, his real-money gain was 15.22%, with a floating profit of 639.24, bringing his total account value to 4,839.24 yuan.

Zhang Yang knew very well that the current A-share trend was a bottom-rebound correction; under normal circumstances, no action was required. What is a bottom-rebound correction? Put simply, it is a phase of value recovery. Due to the subprime mortgage crisis, the vast majority of A-share companies had been severely undervalued. The current rise was merely a return to a normal valuation range. If one were to trade now, it would be highly likely to miss the boat, resulting in more losses than gains. The real time to act is when the market value has recovered, capital begins to diverge, and the market enters a technical bull or bear phase.

Despite Zhang Yang’s passive trading, his rate of return remained in the top thirty among professionals. When many investment students learned that Zhang Yang hadn't made a trade in over twenty days and had cracked the top thirty solely on the gains from Baosteel, they scrambled to split their positions and follow his lead. As for the market research reports priced at 30 yuan each, they were gradually being accepted by the students. It is worth mentioning that ever since Lai Weijie subscribed to the full set of reports, his returns had turned positive. He achieved a 2.9% gain yesterday, breaking into the top one hundred professionals. Although he was still at the tail end, he had been the number one performer in terms of returns last week!

This sudden surge from behind left teachers like Wang Xingbang and Chang Botao in disbelief. Knowing that Lai Weijie had lost 20% in the first six trading days, and even reached a 26% loss at one point, his current turnaround made him a total dark horse. As for the top twenty students, they were under immense pressure, as their returns were neck-and-neck. The first-place holder, He Jing, led the second-place Xu Jiafeng by only 4%. Meanwhile, Wang Liu, who had been far ahead in the first week, had fallen to ninth place after getting trapped by buying into a stock on the "Dragon and Tiger List" that hit a consecutive limit-down. With the competition more than halfway over, everyone was pulling out all the stops, some even using personal connections to dig for inside information.

...

On the sixth floor of the Shanghai Finance Library, in the Financial Analysis Room, Zhang Yang sat up straight, his hands typing rhythmically on the keyboard, a cup of coffee resting to his right. With "ambassadors" like Lai Weijie, He Jing, and Xu Jiafeng, his market sector report business was booming. In just half a month, he had earned 3,400 yuan from selling data, and that was with a client base of only 121 students.

The most critical point was that some students shared the cost by buying as a dormitory, and there were pirated copies being shared that ate into his market, but he was already satisfied with earning 3,400 Chinese yuan. As the 3:00 PM market close approached, he stretched, clicked the left mouse button, and checked the day's trend.

A-share performance on April 1st remained strong, with the banking and securities sectors both exerting force—a clear signal of valuation repair after an oversold state. Why say that? Banking and securities are like a seesaw. When banking rises, securities often fall or move sideways. If the securities sector rises, banking is highly likely to fall or move sideways. This is because banking is a defensive sector; only when market sentiment is low and there are signs of a market top will capital seek shelter there. Securities, however, is an offensive sector; because brokerage performance is directly linked to the stock market, when the market prospers, company performance naturally rises. But if the market enters a depression, brokerage performance will be equally disastrous. This is why the securities sector is known as the "bull market flag-bearer."

Of course, there are no absolutes in the A-share market. After all, the vast majority of retail investors are new to the A-shares and often choose the "Big Four" banks they are familiar with. The continuous influx of market capital can also break theoretical laws. However, this is the very charm of the stock market; its uncertainty is what drives countless investors to madness.

"Why are you checking the market here?"

A pleasant female voice reached Zhang Yang’s ears, accompanied by a fresh scent, like jasmine blooming in early June. Zhang Yang looked to the side—it was He Jing. Today, He Jing was dressed as provocatively as ever, wearing a loose printed short-sleeved shirt paired with denim shorts, her fleshy, fair legs dazzlingly bright.

"Just taking a look at the tail-end of the market."

No sooner had Zhang Yang finished speaking than He Jing replied, "That makes sense. After all, someone who hasn't made a trade in over twenty days wouldn't be staring at the screen." She asked again, "Can I sit here?"

Zhang Yang smiled calmly and said, "Of course."

After receiving permission, He Jing sat in the seat to his right. To find this man’s "hiding place," she had spared no effort in asking around until she finally discovered his exact location. Once seated, she looked at Zhang Yang with curiosity and asked what was on her mind: "Tell me, why haven't you traded in over twenty days? Don't you want to intern at Huaxin Securities?"

"No." Zhang Yang answered concisely.

Fund managers might look glamorous, managing billions in assets, but their annual salary of ten million is essentially the ceiling. He had higher goals now, and joining Huaxin Securities would only tie him down.

He Jing asked, "Why?"

"I like to maintain the initiative in my trading; I don't like shackles." Zhang Yang gave a vague answer.

He Jing wasn't stupid; she naturally understood what Zhang Yang meant. After all, the *Securities Law* stipulates that employees of stock exchanges, securities companies, and securities registration and clearing institutions are not allowed to buy or sell stocks directly or indirectly. Joining a brokerage firm offers a stable income, but sometimes you are not the master of your own destiny. Not joining allows you to live off your own skills. He Jing had thought about going solo, but the reality was cruel; the 2007 market crash had made her realize the importance of a stable income.

"Do you really want to join Huaxin Securities?" Zhang Yang asked suddenly.

"Of course. Huaxin Securities is a top-tier brokerage, and it has a big, prominent state-owned enterprise backing it. This is a once-in-a-lifetime opportunity." He Jing did not hide her yearning for Huaxin Securities; it was her "dream company."

"Buy more of my sector reports, and I guarantee you'll get in," Zhang Yang said with a faint smile.

"Are you that confident?" He Jing frowned slightly.

Zhang Yang’s lips curled upward, his eyes full of confidence as he said, "Of course."

Their eyes met. He Jing felt as if she were meeting Zhang Yang for the first time; he used to be quite introverted, but now, just like his name, he was confident, outgoing, and flamboyant!

In the study area outside the Financial Analysis Room, Wang Liu, who was always refined and prided himself on being the last gentleman of Pudong, couldn't help but curse, "Damn it, no wonder the dorm head is never in the room; he’s been dating He Jing."

"It’s over, he really found a shortcut," Chen Chuan remarked from the side, full of envy.

"At least it's He Jing, thank goodness for that," Xu Jiafeng let out a sigh of relief. He had been secretly in love with Xu Zhiruo for a long time; besides being from the same hometown, they both loved watching anime.