A-Share Historic 998 Point Bottom
Cause
The implementation of the Non-tradable Share Reform (Guquan Fenzhi) created immense selling pressure and panic, driving the index to irrational lows.
Process
On June 6, 2005, the Shanghai Composite touched 998.23. The reform eventually proved successful, aligning major shareholders' interests with retail investors.
Result
From 998, the index embarked on an epic rally, peaking at 6124 in October 2007.
🚀 Time Traveler's Playbook (How to Exploit This)
- 🎯 Target Acquisition: Broad market index funds (ETFs) or blue-chip stocks like Kweichow Moutai, Vanke, and China Merchants Bank.
- 🛠️ Core Operation: Deploy maximum leverage and all available capital into the A-share market during the first week of June 2005. Ignore market doom-mongering.
- 💰 Profit & Extraction: Liquidate all equity positions in mid-to-late 2007 as the Shanghai Composite crosses the 5500-6000 point range, pocketing a 500%+ return on index and up to 2000%+ on individual stocks.