In the early hours of the evening, the overseas editions of a number of mainstream media newspapers issued a stern warning to international shorts: shorting the renminbi is a dead end. Those speculators and malicious short sellers who are eager to smash the market for arbitrage will eventually lose the market.

The warning on public opinion still has a certain deterrent effect, and some people have some scruples, which are also reflected in the capital market.

The next day, the A-share market opened, the Shanghai Composite Index in the morning gap low -3.02%, after the opening of the rapid rebound, intraday once turned up more than 1 percentage point, recovering the 3300 point mark, but in the afternoon rushed up and fell, and finally closed down -0.26%, at 3287.71 points.

The CSI 50 index closed in the red after opening lower in the morning, closing up +0.31% at 923.99 points in after-hours trading

On the next day, on Wednesday, January 6, the A-share market opened, the SGX took the lead in opening half an hour, and the new stock 50 index opened high and went up to repair, which also drove the opening sentiment of the main board index.

At the close, the Shanghai Composite Index rose +2.25% to 3,361.84 points, and the closing price was almost the highest price of the day. The New Stock 50 Index was much stronger than the Main Board, closing up +4.07% at 961.62 points.

The market plummeted the day before yesterday, stabilized yesterday, rebounded strongly today, and seems to have stabilized.

The night before yesterday, the mainstream newspapers issued a stern warning to the short sellers in the foreign exchange market, although it had a deterrent effect, but it only lasted for two days, and it only shook the stock market, but the foreign exchange market did not have any effect, and the international short capital did not buy it at all.

In the case of a sharp depreciation of more than 600 basis points in the offshore exchange rate market the day before yesterday, it depreciated by 135 basis points yesterday, a depreciation of 0.2 percentage points, and today it depreciated sharply again, and the exchange rate of the RMB against the US dollar in the offshore market depreciated to a record low of 6.7305 at the highest level, and once depreciated by more than 870 basis points under the strong pressure of international short capital.

In the end, when the trading team of Qunxing Capital made a strong move to borrow the market and vigorously buy the yuan, the exchange rate began to rebound and closed at the 6.6977 level, but still depreciated by more than 540 basis points.

In fact, Fang Hong definitely has the strength to pull today's exchange rate back, but he didn't let his trading team do so.

The reason is very simple, now is not the time, Fang Hong needs to make those who eat inside and outside believe that the bears will win, and firmly believe that the offshore exchange rate can quickly break the 7 mark, so that they can be more firm in this idea and implement the short opening strategy.

When they jumped in, they cleaned up again.

Now the outside world is in a moment of dark tide surging, and some people who were shocked before saw the foreign exchange market fall to a new low three times in a row, and now they are also moved, and they are no longer afraid of the day before yesterday, the mainstream media newspapers issued stern warnings, and firmly implement the Kairun and arbitrage actions.

In this posture, the offshore exchange rate will definitely continue to depreciate, so it is right to move quickly.

Sure enough, the next day, Thursday, January 7, was fulfilled, and the market once again staged a "double kill of stocks and foreign exchange", the three major A-share trading markets fell across the board, the New Stock 50 Index opened low and went low, and the Shanghai and Shenzhen markets also opened low and went all the way to the explosion.

At around 9:44 a.m., the Shanghai Composite Index fell to a new low of 3178.70 points, and the decline expanded to -5.45%, triggering the circuit breaker mechanism and suspending trading for 15 minutes.

At 9:57 to resume trading, the index again straight line killing, it took only three minutes, once again triggered the second circuit breaker in the day, the Shanghai Index fell 3115.89 points, down -7.32%, the next time is suspended until 15 o'clock in the afternoon to close, the main board of the two cities opened half an hour ahead of schedule.

The new stock 50 index also could not withstand the continuous decline, until the closing plunge of -7.85% to 886.15 points, a record low since the opening of the board.

Before the first trading day of the year, and even before the opening of A-shares this morning, shareholders did not expect that the circuit breaker mechanism had just been implemented, and it suffered four major circuit breakers in just four trading days.

I wanted to make a difference with the innovative elements of the SGX next door, but it turned out to be like this, staged a catastrophic market version 3.0, and made a mess last year, and now it has just started a catastrophic market 3.0 version at the beginning of the new year, or is it at a critical juncture when the capital market is in an eventful autumn, how can the above not pay attention?

The village chief was already sweating at this time, and he wanted to make some innovative elements, but now he knows that he can play with it.

……

The stock market has closed, but the foreign exchange market has broken out a more fierce long and short duel, and the bears from all walks of life continue to attack, once suppressing the offshore exchange rate to the 6.7504 water level, and once again depreciating sharply by more than 500 basis points.

At this moment, Fang Hong stayed at home and kept an eye on the trend of the offshore exchange rate market, and kept an eye on the consultation news.

It is no exaggeration to say that it is now in a state of chaotic dancing, with reductions, circuit breakers, short-selling of the A50 index, plummeting in the external market, depreciation of the RMB, and a huge number of short orders from some domestic institutions.

Those who bet that their country will lose are frantically throwing out the yuan at this time, and some of the capital that has made a fortune back and forth onshore and offshore has become indirect accomplices.

They don't have the pattern and feelings like Fang Hong, let alone Fang Hong's firm position, they only have profits in their eyes, they don't have a border at all about currency, as long as the legal and compliant technical operation is profitable, then do it.

Fang Hong stared at the trend of the offshore exchange rate and couldn't help but sneer silently, at this moment, the capital that was constantly flipping and arbitraging to open a huge amount of short orders was jumping into the pit one by one in Fang Hong's eyes.

After a while, Fang Hong sent a message to Tian Jiayi: [Those who eat inside and outside have almost jumped into the pit, and inform the traders below that they can exert their strength.] ]

Two minutes later, Qunxing Capital's offshore funds struck hard, and the immediate effect was immediate, and the offshore exchange rate rushed to the 6.7504 water level and then began to fight back all the way up, at this time there was not much water in the pool, and the ammunition in the trunk of Qunxing was extremely sufficient, and it could be drained at any time as long as it was willing.

It's just that Fang Hong didn't do that, showing too strong energy, and the opponent will not continue to bet on chips if he is frightened.

This keeps the opponent in the ascendancy, but in order to maintain that advantage, you have to keep raising.

If you make your opponent feel that you can't win as soon as you come up, you will definitely not continue to add chips, especially those speculators who follow the trend, and it will be difficult to trap them.

With the strong move of Qunxing Capital, in the case of the stock market taking the lead in sending the circuit breaker into the IUC in today's huge panic tide, people staring at the offshore exchange rate market were surprised to find that today's RMB has not depreciated, but has appreciated slightly.

After depreciating by more than 500 basis points, it finally bucked the trend and appreciated by 47 basis points to close at 6.6930.

……

In the evening, the peripheral market continued to plummet, and the three major North American stock indexes were also falling.

However, this is not the most concerned thing at night, but another sudden thing caught the big A shareholders off guard, and the two major exchanges of Shanghai and Shenzhen and the Futures Exchange issued a notice in the evening: in order to maintain the stable operation of the market, the implementation of the index circuit breaker mechanism has been suspended since January 8.

According to the disclosed information, the village has agreed to this matter, that is, the circuit breaker mechanism will be suspended from tomorrow, and this matter has suddenly become the biggest blockbuster news in the capital market.

……