The current situation is that if the bears want to continue to resist, they need to borrow RMB to make margin calls or continue to sell, but at this time the state has tightened the supply of RMB and prohibited institutions from lending RMB.

At this moment, the overnight lending rate of the renminbi in Hong Kong has soared all the way to around +69%, and if the shorts borrow the renminbi at this cost, it will definitely be a loss to vomit blood.

This +69% is the overnight rate, not the annual interest rate. In other words, if you borrow 100 million today, you will have to repay 169 million tomorrow, and this kind of capital cost is how many days Fang Hong can't withstand it.

If the bears liquidate their positions or choose to close their positions and leave the market, they will have to buy RMB in the market, but this will further push the RMB exchange rate higher, leading to more short liquidation, forming a situation where short capital is killing each other.

This situation is really a dilemma, neither advance nor retreat, stretching out the head is a knife, and shrinking the head is also a knife.

The army of bears who originally seemed to be unbreakable collapsed almost at the touch of a button in the face of this wave of counterattacks from the stars, and quickly fell apart.

At this moment, a fratricidal situation has been staged, even if you want to buy RMB from the market, you have to look at the face of Qunxing Capital, look at Fang Hong's face, because Qunxing Capital has almost bought out the RMB in the market.

Although there is still some RMB circulating in the market, it is a drop in the bucket compared to the current demand from so many shorts, unless Qunxing Capital is willing to release some RMB.

But is it possible?

Obviously, it was absolutely impossible, and it was hard to bury them in it, Fang Hong didn't plan to let them go at all, especially those who ate inside and out, all of them were suffocated and left here.

The overnight call rate hasn't doubled, so where is that?

The stars are now sitting firmly on the Diaoyu Tai, sitting and watching the bears kill each other, and they are not in a hurry at all, and all that is in the net is already fish on the chopping board, and they are slaughtered.

……

At 15 o'clock, the stock market closed as scheduled.

The three major stock indexes closed with a plunge across the board today, all out of a barefoot long black line, and the closing price was the lowest price of the whole day, indicating that it had closed before it had fallen through, and it also hit a new low since the beginning of the year.

The Shanghai Composite Index plunged -5.33% to close at 3,016.70 points, with a turnover of 286.4 billion, the Shenzhen Component Index plunged -6.21% to close at 10,212.46 points, with a turnover of 377.8 billion, and the Singapore Stock Exchange 50 Index plummeted -5.45% to close at 846.15 points, with a turnover of 81.1 billion yuan, and the total turnover of the three major markets was 745.3 billion yuan.

Big A seems to be about to start the 3,000-point defense battle again.

On the other hand, the offshore exchange rate market closed today, and the yuan rose to 6.5858 against the US dollar, a full 1,200 basis points higher than the lowest point of the day.

In other words, the positions that the bears have fought these days have basically lost today.

……

The next day, Tuesday, January 12.

Today's offshore RMB exchange rate has not soared sharply, and Fang Hong does not plan to do so, the foreign exchange market will soar and plummet in the short term, and it is not a good thing for the foreign exchange market to soar and plummet, and it is not a good thing to take a step back and say that the bears may also hedge in turn.

Today's exchange rate has only appreciated to 6.5781, which is less than 80 basis points overall.

But at the same time, the overnight lending rate of the renminbi in Hong Kong soared by +35.50% today, and yesterday's increase was a cumulative increase of +129%, a new high since the quotation began.

Those opportunistic speculators who repeatedly jump sideways from the shore and some people who eat inside and outside have now lost so much that they vomit blood, and the liquidation and wearing of positions are being staged in turn.

International short capital is also riveting its efforts to fight back, but Fang Hong doesn't care, because his cost of capital occupies an absolutely overwhelming advantage, that is to say, time is on his side, and if he takes a small step forward, the opponent will have to pay ten times the price to barely recover.

In the face of such a situation, as long as Fang Hong drags on, the power of the bears will become weaker and weaker day by day, and when the time comes, he will easily take it down by sweeping the leaves in the autumn wind.

As for the moment, pack up the group of people who eat inside and outside, come one by one, and don't even think about running.

……

"This surnamed Fang is really ruthless! He's going to put people to death, and he's going to cut people to bankruptcy......" The trader of the private equity market who fled with his life yesterday is still apprehensive at the moment, and he is even more terrified when he sees the overnight interest rate soaring to the +129% level.

He knew very well that if he ran a little slower yesterday, he would be gone today.

It's no wonder that he still feels scared for a while, because of his capital disk, the owners are basically rich and powerful, but they are not the public, and if they really want to liquidate their positions, they can only go to the rooftop to apologize.

Even if he escaped this catastrophe, it almost cost him half his life, and his capital disk went from a big profit of +179% to a loss of -36.7%, and it only took one day, not only did he spit out all the profits of this year's empty orders, but he also gave up a large number of votes last year to pick up a life.

It's good that he can pick up a life, because some lives are gone, just in the past 48 hours, he has already learned some news in the circle in private, there are more than a dozen peers whose funds have been confirmed to be liquidated, and the actual situation is definitely more than this number, and some people have already jumped directly on the rooftop.

Such a terrifying overnight call rate has been maintained for two days, and the worst thing is that it is not known how long such an exaggerated overnight call rate will be maintained.

Who can afford more than doubling the cost of interest in a day?

There are also some who are forced to cut meat in Big A to make a margin call, and the real killer is the miserable one, which is the biggest factor that really triggers the rooftop of the trader.

Generally speaking, in addition to the margin, the investor's assets have other remaining funds, liquidation is the loss is greater than the margin in the account, the remaining funds after the company's liquidation is the total funds minus the investor's loss, that is, all the margin losses into it, at this time must be added to the margin to avoid liquidation.

The position is the investor's equity is negative, not only the loss of all funds, but also the situation of falling through the situation that the money owed to the financial company, and the legal responsibility will be investigated if the vacancy is not made up in time.

The means of financial institutions are not covered, joking to make him pay for you?

Because of this, some traders choose to take the road of "shortcuts" and go directly to the rooftop to save trouble.

This also explains to a certain extent why, under the violent appreciation of the RMB in the foreign exchange market yesterday, the big A has accelerated its plunge, because some people have cut meat in the stock market to fill in the holes in the foreign exchange city, and it is not one or two.

The current situation is that those short funds trapped in the market can't get out if they want to, and they have to continue to invest in filling holes.

If they want to close their positions, they have to buy RMB from the market, but the problem is that there is not so much RMB now, and the RMB balance in the offshore market is now almost in the hands of the Qunxing family.

Without RMB, you can't close your position, and the overnight call rate is more than double the cost of funds per day.

Some of them with high leverage have exploded on the spot yesterday.

"This is simply a ruthless capital slaughter, this Fang Hong is too terrible, yesterday's decision may be my wisest decision this year......" At this moment, the trader felt really scared every time he thought about it, compared to those peers who went to the rooftop, he felt more and more that he was too lucky, but if he was slower, he would have to rush to the rooftop to queue up.

……