Through the wealth life

Chapter 349
The speed of the British consortium was quite fast this time. On the second day after Nubijian and others finished their discussions, they contacted Shen Bi and Powell Wilson, and discussed about doing more in the Xiangjiang stock market.

Shen Bi and Powell Wilson have known for a long time that everyone in the Xiangjiang Exchange is shorting the Xiangjiang stock market, and they are basically shorting these listed companies, and their two bank executives are very optimistic about the recent development of Xiangjiang. Coupled with the long positions of these major groups, the Hong Kong stock market will only be more favorable.

After Nubijian described their proposal, both Shen Bi and Powell Wilson agreed with Nubijian, saying that the investment departments of HSBC and Standard Chartered would also follow up.
This time, these funds are quite strong. In addition to Jardine and Swire which are 20 billion Hong Kong dollars, Wheelock raised 15 billion Hong Kong dollars this time, and HSBC and Standard Chartered Investment Department have prepared 10 billion Hong Kong dollars to enter , most of which are customers' funds, and their own bank funds are not too much.

On June 6 (Monday), this day is also the first day of the week when the market opens, and the futures trading market is very lively.

Since Li's Group made a large number of empty orders here last week, it still had a little impact on Xiangjiang's stock market, and the rapid rise of the entire stock market was suppressed. That being said, it's pretty slow.

As the third largest financial center today, Xiangjiang has too many financial institutions here, especially large financial investment institutions in many Asian countries have set up branches here.

Li Guangyu, Yuan Tianfan and others underestimated Xiangjiang's financial market. When Li Guangyu was bearish on Xiangjiang's stock market, countless financial investment companies and bank investment departments were quite optimistic about Xiangjiang's stock market in the short term.

Even though Li's Group made huge empty orders from listed companies under several major foreign firms, they were still taken over by many investment companies. Last week, Li's Group completed orders close to 50 billion Hong Kong dollars.

On the morning of the 8th, as soon as the trading market opened, Li Guangyu came to the Tianyu Investment and Securities Department, waiting for today's new changes.

Sun Jianping reported to Li Guangyuhui: "Li Sheng, due to our large amount of short selling last week, it is not easy to deal with the listed companies of several foreign companies."

Li Guangyu asked: "Oh, what is the reason for this?"

Sun Jianping replied: "Li Sheng, we are shorting the stocks of these listed companies, all of which are borrowed from major securities firms. Nowadays, the stocks that can be borrowed are getting less and less, and the three major companies of Jardine Matheson, Wheelock and Swire Due to our short-selling, the stock market value of the listed companies of the group fell slightly last week. I don’t know if there are any investment companies coming to take orders this week.”

Today's Xiangjiang stock market is not as convenient to operate as in later generations. In this era, Xiangjiang has no way to short these companies in futures.Li Guangyu and the others had no choice but to go short in the stock market directly, and the way was to borrow shares from a securities firm, repay them at a low price in October, and then sell the borrowed shares here at the current price.

Securities firms and exchanges act as intermediaries. Before the deadline for trading, these shares and funds are locked up. If any party has insufficient margin, it needs to make up the funds, otherwise the exchange will forcibly close the position.

Last week, Li's Group's huge amount of capital has almost wiped out the shares in the hands of securities companies. It may not be easy to deal with it later.

When Li Guangyu was still thinking about how to arrange the next step, an employee came to report: "Li Sheng, Yuan Sheng, Guo Sheng, suddenly there are many long orders from listed companies of several large British consortiums in the market. Do we want all of them? Eat it."

Li Guangyu asked: "The staff at the exchange, did they report that those institutions issued these orders?"

The employee replied: "Sheng Li, the long orders are mainly issued by the investment department of HSBC and Standard Chartered. The amount is quite astonishing. The stock market of these groups has also started to rise because of this."

Li Guangyu was very happy when he heard this. He knew that the British consortium made the move. Otherwise, how could there be so many stocks coming out? It must be that several big groups took out the stocks and wanted to fight with him in the stock market.

Li Guangyu asked: "What about the duration of their contract? Is there any regulation?"

Li Guangyu was worried that if the term contract was only for one month, he would have to lose money if he accepted the order. In such a short period of time, he would only send money to the British consortium.

"Li Sheng, I don't know if they came here on purpose. Their contract delivery time is also at the end of October." The staff replied.

After thinking about it for a while, Li Guangyu said to him: "You immediately inform our exchange staff to take all their orders for me. We will take as much as we have until the funds we stipulate are exhausted."

Li Guangyu didn't expect that these British consortiums were brave enough to lend out their shares, but he didn't know how much money these British consortia had contributed.

It doesn’t matter if it’s just Standard Chartered and HSBC, it’s okay to lose money. If these companies have a huge amount of money in the market, when the stock market plummets, it’s up to them to cover their positions with tears, or they are going to lose the company’s controlling stake.

What Tianyu Investment needs to do now is to borrow these shares from HSBC and Standard Chartered, transfer them to the securities department of HSBC and Standard Chartered who are long at the current price, and buy them back to Standard Chartered and HSBC at the end of October.

The stock is still the same stock, but after going through these procedures, by the end of October, we will see the situation of the stock market. With more than 700 points left, none of the listed companies on the market can avoid this disaster, not even Li Guangyu's own group.

In particular, many of these listed companies under the British consortium are constituent stocks of the Hang Seng Index. The Hang Seng Index fell so badly that it was driven by these listed companies.

What Li Guangyu hopes most is that Jardine Matheson Group and Swire Group can invest more funds to enter the market this time. They must have only lent the shares to HSBC and Standard Chartered Securities Investment Department. If they want to buy Li Guangyu's current list, they have to pay separately Yes, unless they don't want a stake in the company anymore.

Li Guangyu hopes to take advantage of this time to make a lot of money, and once these groups are short of funds, they can retake the electric lamp group from last time. Swire Group has the only airline company in Xiangjiang. Li Guangyu hopes that It is better to control such a company as Cathay Pacific Airways in the hands of the Chinese.

In the investment department of HSBC, several people from Nubijian are also waiting for the reaction of the market. This time they will only deal with the personnel of the Li Group. This time they need to buy back the shares immediately after lending them. Instead of letting the stock flow out.

Niu Bijian said, "Mr. Shen Bi, how many orders do you think the Li Group will take from us this time?"

Shen Bi said: "It depends on how much leverage the Li Group uses. It is said that they used five times the leverage in their transactions last week. In this case, I estimate that the Li Group can make at least 500 billion orders. .”

Several people present also lamented the abundance of cash in the Li Group. These groups had to piece together all these cash, and the sum of them was not as much as that of the Li Group.

Shen Bi and the others were chatting about this action while waiting for the reaction of the market. In order to make the Li Group lose a lot of money this time, they tried their best.

One of the most important ones is that HSBC and Standard Chartered Bank must ensure that the shares of their own groups will not flow out. The reason why this thing is taken out is to reach a deal with the Li Group. Without this thing, the transaction cannot be established.

Only with it can the Li Group borrow money and sell it to them. HSBC, Standard Chartered and the exchange are the custodians. In the end, HSBC and Standard Chartered will return the shares to them.

As for the orders they have taken now, after the contract ends, the Li Group will also purchase them, and then return them to HSBC and Standard Chartered, and the two banks will return the shares to their respective groups.

This is the reason why futures trading is not possible, and there is no subsequent bull and bear contracts. The operation is quite troublesome. Fortunately, HSBC and Standard Chartered Bank are strong enough. Neither the British consortium nor the Li consortium are worried about this. HSBC And Standard Chartered Bank have the ability to guarantee this, and their income can be guaranteed.

PS: I made some mistakes about the futures trading earlier. At that time, the stocks of listed companies could not be traded. I have made revisions. Please forgive me.

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(End of this chapter)