Chapter 35: Avalanche! It has begun!

"Damn it... this darn cigarette... looks like I really can't quit."
Liang Haiyuan had been smoking significantly more lately than before.
He stood in the open-air smoking area downstairs at the company, expertly lighting what was probably his umpteenth cigarette of the day, taking a deep drag.
He felt the pungent smoke violently flood his lungs, bringing a brief, almost self-destructive numbness.
Normally, as soon as the stock exchange's opening bell rang, he would immediately immerse himself in the ever-changing numbers game like a wound-up machine.
He was so tense he wouldn't even feel thirsty, let alone have the leisure to come down for a smoke.
But now...
It seemed like the one thing he had in abundance was time.
"Hmm? Why are there so many people today?"
Liang Haiyuan was somewhat surprised to find that the smoking area, which should have been relatively quiet at this time, was now packed with people.
Moreover, without exception, these people were all traders like him, who should have been battling it out on the front lines of trading.
But what jarred him even more wasn't the sheer number of people.
It was… the atmosphere.
Normally, this small space was filled with low curses, frustrated sighs, and oppressive silences due to trading losses.
But today, amidst the swirling smoke, it was unusually filled with relaxed conversation, barely suppressed excited discussions, and even a few undisguised bursts of triumphant laughter!
It was practically an early victory celebration!
“Oh? Isn’t this Liang Haiyuan? You’re out relaxing too? Looks like the market’s doing well today, nothing to worry about, haha!”
A slightly familiar voice rang out. Liang Haiyuan looked up and saw several former colleagues from his department, now gathered together, their faces flushed, puffing away on cigarettes.
“Of course! With the market like this, who has anything to worry about?”
Another person immediately chimed in with a laugh, their tone laced with obvious boasting:
“We basically bought the leading stocks in each industry a few days ago, and then just left them there, watching the money in our accounts rise on its own!”
“I heard that some of the bolder, more well-connected groups have already gotten special approval from above to heavily invest in stock index futures! They're making a killing!”
“And those guys in the options department next door are making a fortune too, already discussing where to go for a champagne celebration at the end of the month!”
“…”
Liang Haiyuan remained silent, not responding.
He simply stood on the periphery of the crowd, mechanically and forcefully inhaling the cigarette in his hand, puff after puff.
The embers of his cigarette flickered, mirroring his current mood.
The rising white smoke blurred the excited, spittle-flecked faces before him, seemingly temporarily silencing the jarring, Versailles-esque conversation.
"By the way, Liang Haiyuan, how's things going with your Seventh Division?"
Finally, someone seemed to remember him in the corner and casually asked.
"Ha, their group? Need you even ask!"
Before Liang Haiyuan could answer, someone else immediately interjected in a half-joking, half-teasing tone:
"What's the stock market like right now? It's like dragons dancing in a blaze of glory! Money's everywhere! It feels like you can just close your eyes and click the mouse, and money will magically flow into your account! There's practically no possibility of losing money!"
"Hahaha! That's right! It's like free money! Anyone who loses money now is harder off than the Chinese national football team qualifying for the World Cup!"
Everyone burst into unrestrained laughter.
They were all immersed in this unprecedented capital frenzy, their excitement almost uncontrollable.
No wonder.
Liang Haiyuan stubbed out his cigarette hard in the ashtray, a wave of indescribable bitterness and heaviness washing over him again.
Right now, it truly was a seemingly endless feast of 'money making money.'
An era where even fools could make money.
Just seeing these guys, usually so busy they'd practically have three heads and six arms, even timing their bathroom breaks, now so leisurely and relaxed, smoking, chatting, and bragging, showed just how incredible this situation was.
"Liang Haiyuan, aren't you going back to your office?" someone asked casually as they were leaving.
"Ah, um. You guys go ahead, I... I'll stay a little longer." Liang Haiyuan waved his hand stiffly.
"Alright, we'll go upstairs then."
The crowd gradually dispersed, and the smoking area quickly returned to its usual quiet, with only the lingering smoke in the air.
Liang Haiyuan sat alone, somewhat lost in thought, on the cold bench.
His mood, like the gray sky above, tinged with industrial fumes, was filled with oppression and confusion.
No matter how he analyzed, observed, or tried to convince himself…
This frenzied surge in the stock market showed no signs of ending anytime soon.
The unusually festive atmosphere in the smoking area just now was enough to tell the story.
That place was usually filled with the most primal and unbearable curses and roars from those who suffered losses due to misjudgments and poor operations!
But now, it was filled with joy and laughter!
Everyone's face was brimming with undisguised anticipation for the undoubtedly hefty performance bonus that was about to arrive this month!
"When… when the bonuses are handed out… will we, the people in Department Seven, just watch others count their money while we… silently lick our wounds?"
This thought gnawed at his heart like a venomous snake.
Liang Haiyuan let out a heavy, suppressed sigh, and finally stood up.
"Forget it, there's no point in thinking about it anymore."
"I still need to get back to the office first."
"Work... always needs to be done."
"Although... he has absolutely no idea what he could do back in that desolate, green-clad Department Seven."
"Perhaps... he could only stare blankly at the screen."
"...Hmm?"
However!
When Liang Haiyuan dragged his heavy steps, deep in thought, and pushed open the door to the department office, the scene before him made him freeze in shock!
Then he shuddered!
The expected somber and deathly silence didn't appear!
Instead, there was—"
Chaos reigned!
Utter chaos!
The entire spacious office was a scene of utter chaos!
Whether it was members of their department seven or traders from neighboring departments, everyone was running frantically between their workstations and the aisles, as if their bottoms were on fire!
Terrification and despair were etched on every face!
The clatter of keyboards and mice was a deafening, rapid-fire din!
Incoherent screams, angry roars, and wailing cries rose and fell in waves!
The scene was so chaotic… to the uninitiated, it looked like a terrifying earthquake had just struck!
“What…what’s going on?! What the hell happened?!”
Liang Haiyuan felt his heart leap into his throat. He grabbed a young colleague from his team who stumbled past him and demanded an urgent answer.
"Haiyuan! Why are you only just getting back?!"
The young employee, usually quite quick-witted, was now deathly pale, his lips trembling, barely able to speak, his voice filled with undisguised terror.
"No... Xiao Li! Tell me first! What happened to everyone?! They're all like they've lost their souls?! Has the sky fallen?!"
Seeing his team members, all equally pale and with unfocused eyes, as if they'd suffered some devastating blow, Liang Haiyuan's unease intensified a thousandfold!
"Just... just now! Just a few minutes ago!"
The employee named Xiao Li seemed to have used all his strength to manage a few words, his voice trembling:
"The China Securities Regulatory Commission! Suddenly issued an announcement! Announcing a complete restriction... on margin trading!"
"Wh...what?!"
These two words struck Liang Haiyuan like two thunderbolts from the heavens!
His mind went completely blank!
He froze, as if struck by lightning!
His blood seemed to freeze in that instant!
Restricting margin trading!
What did this mean?!
It meant the authorities were personally involved!
To curb the short-term overheating of the stock market!
With the strongest and most unquestionable stance, they were forcibly severing the most important artery of funding that had been frantically pumping money into the stock market—margin trading!
Commonly known as "borrowing money to speculate in stocks"!
"So...so everyone...everyone's completely gone mad!"
Xiao Li was almost in tears:
"You definitely know! Right now! The astronomical sums of money pouring into the stock market! The vast majority...the vast majority! are borrowed money through margin trading, leveraged several times, even ten times!"
That's right!
The reason the stock market could experience such a dramatic surge in such a short time
is largely due to this policy that the authorities had previously vigorously promoted to stimulate the economy—margin trading!
Simply put, it allows investors to use a small amount of their own capital as margin to borrow several times that amount from a brokerage firm for stock trading!
For example, if you only have 100,000 yuan in capital.
At its peak, margin trading allowed investors to borrow up to 10 times their initial investment—a full 1 million yuan—to invest in the stock market!
This massive leverage, like a stimulant, instantly amplified wealth!
Driving countless investors dreaming of overnight riches into the stock market like moths to a flame!
But the problem is…
Now, the official attitude has drastically changed!
Suddenly, the previously infinitely amplified "capital tap" has been tightened!
An announcement has been made to strictly limit, or even prohibit, new margin trading!
Therefore, the extremely frenzied upward trend, entirely driven by massive leverage, will inevitably suffer a devastating blow!
It might plummet!
It could even collapse like an avalanche!
And those investors who previously borrowed money to buy stocks with high leverage will immediately trigger the brokerage's forced liquidation mechanism once the stock price falls to a pre-set warning line!
Because their margin is no longer sufficient to cover potential losses!
The stocks in their accounts will be forcibly sold off on the market by the brokerage system at top speed, without regard to cost!
To recover the borrowed funds!
This forced selling will further exacerbate the market's panic selling…
Ordinary investors who originally held stocks with their own funds will also fall into extreme panic upon seeing this terrifying, apocalyptic scene!
They will frantically sell all their stocks, regardless of price, as if fleeing a plague!
They only want to escape this collapsing market as quickly as possible!
And so…
Sell orders! More sell orders! A tidal wave crashes in!
Buy orders? Sorry, they don't exist!
Thus, an extremely terrifying vicious cycle has formed!
Like the first domino to fall, it triggers an irreversible chain reaction!
The avalanche! It has begun!