Chapter 794: Circuit Breaker Level 2 Triggered!
The circuit breaker mechanism refers to the pause in trading implemented when the stock index fluctuation reaches a set threshold, similar to a fuse in an electrical circuit that automatically breaks when the current is too high to protect the circuit's safety.
The original intention of the circuit breaker is undoubtedly for the sake of the market.
However, through Fuji TV's coverage, the public has realized that now Neon's economy is facing internal and external troubles.
Internally, the national treasury is empty; externally, there are wolves surrounding. The cooling-off period produced by the circuit breaker has turned into a period of agony under human influence.
The only purpose of a ten-minute trading halt can only allow market panic to spread further.
Tokyo Time, 2:10 p.m., the Nikkei 225 Index resumed trading.
In just three seconds, the index's decline widened from -8.12% to -12.06%, triggering a secondary circuit breaker and another 15-minute trading halt.
Neon investors, looking at their domestic stock market once again displaying the words "trading halted," suddenly felt exhausted, numb, and a yearning for destruction.
They didn't even dare to open their securities accounts, for fear of seeing a series of numbers they couldn't bear.
The yen has plummeted, and the stock market is losing money.
They suddenly recalled a scene from an old Three Kingdoms show introduced years ago: "Oh, endless Heaven, why so against me!!!"
A sense of despair and sadness is spreading.
"Is this Lu Liang's influence?"
Once the Tokyo Daily published this statement, international institutions, speculative funds, and individual speculators fell into deep thought.
There is indeed a problem with Neon's economic structure, which is why it provided Lu Liang the opportunity to short the yen.
However, it is still the world's third-largest economy and was known as the East Asia overlord more than a decade ago. It really doesn't deserve this.
After Lu Liang began shorting the yen, only 18 hours had passed, and the foreign exchange and Japanese stock markets had evaporated funds amounting to a trillion US dollars.
Previously, some called Lu Liang the Eastern Soros, but after this battle, Soros is just an old god of the past; Lu Liang is the new Speculation God.
Seeing this, neighboring Korea was directly scared, and Samsung's Li Zairong urgently contacted Hyundai's Zheng Xuanyi, hoping he could help convey the message.
Representing the major shareholders of Kakao Group, he strongly supported Ant Group transferring all of Alipay's operations in Korea to Tianxing Finance, and sincerely invited Lu Liang for a get-together.
The time and place would be determined by Lu Liang; as long as Lu Liang was available, he would be available at any time to ensure his immediate attendance.
In Fuji TV's economic program, Lu Liang, through the mouths of several guests, exposed many unknown inside stories.
For example, why Lu Liang decided to short the yen was essentially due to Mitsui Sumitomo's lack of cooperation, causing the transfer of Ant Group's Japanese operations to Tianxing Finance to be delayed.
This reason is tenuous, like ABC cooperating in business, A and C reach a transaction, but B disagrees, so A in anger turns and strikes B's home base.
But anyway, it counts as a 'justifiable' reason.
Li Zairong suddenly recalled that Hyundai's cryptocurrency trading platform was in contact with Kakao Group, facilitating cooperation between the two sides to further expand the cryptocurrency market.
This was originally a win-win project, as Kakao is equivalent to Korea's Alipay + DiDi + Meituan all in one financial payment platform; if connected to the cryptocurrency platform, it could boost financial market consumption.
The more places young people spend money, the higher their personal debt; the easier it is for capital to control them, like East Country next door using housing to bind a generation's life.
However, as Lu Liang shorts the yen and Japanese stocks.
Li Zairong gradually realized something was amiss; Zheng Xuanyi was quite close to Lu Liang, and Hyundai Group quickly rejoining the ranks of major financial conglomerates was thanks to Lu Liang.
In just the Bitcoin operation, Lu Liang led Hyundai Group to earn billions of US dollars in real cash, not to mention subsequently entrusting Bitcoin to Hyundai Group, allowing it to establish a cryptocurrency trading platform.
If Hyundai Group's cooperation with Kakao was under Lu Liang's hint, then Kakao was in danger.
Haven't you noticed, the major shareholders of Samsung Group, such as BlackRock, Vanguard, and Blackstone Group were all left dizzy by Lu Liang.
Neighboring more powerful Neon, the then Prime Minister An San, even had to start writing a confession edict, performing the traditional art of 'Private Marseille'.
If danger can be nipped in the bud, Samsung Group kneeling on the ground swiftly doesn't disgrace anyone; rather, it's an acknowledgment that those who know to accommodate times are wise.
"Mr. Lu, Samsung Chairman Li just called; he and Mr. Jin Fan Zhu from Kakao Group would like to meet with you."
Zheng Xuanyi looked frustrated, feeling an overwhelming excitement ready to compete, but before the battle even started, the opponent had raised the white flag in surrender, creating a sense of powerlessness.
Reality, after all, is no game, and Samsung Group is not a target to be whimsically slaughtered.
If they're willing to let Tianxing enter the Korea market without resistance, surely Lu Liang will accept such goodwill.
However, it would be hard on Hyundai Group; its idea of profiting by watching two tigers fight must be declared bankrupt.
Lu Liang pondered briefly, understanding Li Zairong's intent, smiled, and said: "Let Chairman Li contact Secretary Xu. Perhaps I'll take a trip to Korea the day after tomorrow, and we can meet then."
He looked at the computer screen, where An San was holding a press conference, beginning with a deep bow to perform 'Private Marseille'.
Then announced that the Japan Central Bank would immediately deploy 20 trillion yen in reserves, approximately 163.9 billion US dollars.
To launch a series of market rescue plans, firmly resisting the removal of wealth that belongs to Neon's entire National by 'foreign capital'.
The rescue plans, once announced.
The stock market is still in recess, unable to react, but the foreign exchange market has stopped the decline, hit the bottom, and started a tug-of-war at the 120 yen level.
"Alright, I'll be awaiting your arrival in Korea."
Zheng Xuanyi heard the echoes of the press conference and subconsciously glanced at the bottom right corner of the screen, finding it temporarily on mute.
This indicated the sound wasn't coming from his location; Lu Liang was also watching An San's news conference.
With the announcement of the bailout plan, the capital markets would definitely respond, so he dared not disturb Lu Liang more than necessary.
Lu Liang hummed an acknowledgment, quickly ending the call with Zheng Xuanyi. Sun Yutao seized the opportunity and hurriedly asked, "Mr. Lu, should we take action?"
To short a country's currency in the most primitive way, they need to wait for the settlement day on the 21st of each month, when, as short-sellers, they can take their profits.
Today is the first day of November.
They still need to hold out for 20 days. If they allow a yen rebound during this period, it will be challenging to suppress it again.
At least today, it can't return to the 119 yen level; they need to let the market know that the so-called bailout plan is worthless.
"Without the capabilities, who dares to undertake such tasks."
Lu Liang squinted his eyes and calmly said, "If they're daring to intercept us, they will naturally consider this factor. Ignore the foreign exchange, continue suppressing Japanese stocks, and don't let them rise."
Though he felt displeased, he understood that they were on the same wavelength with Wall Street institutions, aiming to short Neon as a common goal.
Forex is left to them; he is responsible for the stock market. No matter which market is suppressed successfully, it will provide indirect assistance to the other, and vice versa.
At two twenty-four in the afternoon, in one more minute, Japanese stocks would resume for the third time today.
"Bastards, meet your demise!"
"Baka yarou!!"
Countless investors were itching to act, mortgaging their loans to exchange for massive funds in preparation for bottom-fishing.
The yen index has set an example, rapidly rebounding by 3 points and about to return to the 119 level.
They believed the Nikkei Index would also rebound like the yen index, perhaps even severely striking the shorts.
A minute passed in the blink of an eye.
At the instant when Japanese stocks opened, the transaction volume in a second exceeded a trillion yen, creating a historic high.
After sliding all day and experiencing two flash crashes, the Nikkei Index showed for the first time a dotted rebound line.
The dotted line directly jumped 5 points, with the Nikkei Index's decline about to return to the -8% first-level circuit breaker.
At this moment, huge volumes of shares were seen in the market for each stock.
They forcefully erased the rising dotted line, making it forever unable to become a solid line.
The dotted line, like a fleeting flower, saw the Nikkei Index continue to decline, and in an instant, it was back below the second-level circuit breaker.
Nikkei 225 Index: 20,964 points,
The day's decline was -12.65%, a massive drop of 3,036 points.
"Nani?"
Neon's retail investors were dumbfounded, looking at their accounts exploded by leveraging and the huge deficits on their books.
They couldn't understand why, despite the Central Bank mobilizing 20 trillion yen for a rescue, it was still a complete rout?
Could it be that Lu Liang's strength was such that even a national central bank could not compete?
At this moment, someone on the forum mentioned, "Quick, go watch Fuji TV, you'll find the answers you seek there."
Upon receiving the information, retail investors rushed into Fuji TV's Financial Observation Room.
In no time, Fuji TV's viewership skyrocketed, topping the same time slot.
"Ladies and gentlemen, when you see the second circuit breaker open, no matter what, the Nikkei Index will have a wave of upward rebound, even if the rebound is ineffective, but it will still occur."
"The situation of the dotted line being eaten up happens because a third-party force has joined the ranks of shorting Japanese stocks."
"From the fund usage channels, we can see the shares come from Mitsubishi UFJ, Mizuho Financial, and Mitsui Sumitomo."
"Truly deserving of being the top three financial institutions in our country, during a national crisis, they're actually profiteering from it greatly."
Mitsutani Kenshiro was full of sarcasm; he was a finance professor at Tokyo University and a special guest in the Observation Room.
When Ishikawa Mayu invited him, it was mentioned that in their channel, he could speak freely without evasion.
If anything happened, they would bear full responsibility.
There was only one condition: do not speak ill of Lu Liang.