Reborn, you call this an honest person?

Chapter 223 Short Selling
On the 8th floor of the International Finance Center, No. 18 Xiangjiang Financial Street, Hengda Investment Company Xiangjiang Branch is located here.

Wang Heng has been working here for more than two months. Now it is December 07 in the Gregorian calendar. It is time for him to start big things.

Wang Heng is naturally very cautious. He has been making preparations since the end of August. After arriving in Xiangjiang, he didn't even care about his birthday in August of the lunar calendar. He stayed in Xiangjiang all the time.
Of course, he also received phone calls from a group of people, senior executives of the group company, senior executives of subsidiaries, his woman, his mother, and his daughter.

Hengda Group has changed a lot in the past two months, and the shipment of Honor mobile phones has reached 4000 million units.
Meituan Waimai is also officially launched, but the operating area is only in the urban area of ​​Hangzhou, and only a market of 200 million people has generated 100 million users.
Of course, the sales of smartphones in Hangzhou have reached 600 million units, but 500 million of them are not in urban areas.
At the beginning, there were only 5000 riders, so from the beginning, we focused on making Hangzhou urban standards,

For these 100 million users, the first order of Meituan Waimai is free, 19 orders are half price, and 2.1 million yuan is subsidized to cultivate users to use Meituan Waimai.

Therefore, Meituan Waimai immediately exploded within two months after its launch.

The monthly salary of Meituan riders has also soared from 2000 to about 4000 yuan.
Because the market is booming, the management of Meituan has proposed to Wang Heng countless times to expand,

Meituan Waimai opened other areas, but Wang Heng rejected them all.
At that time, it was not that there was not enough manpower. Meituan riders in other cities could be outsourced to skilled riders in Hangzhou.
There are nearly 8000 riders in Hangzhou, and half of them are willing to contract rider business.
Therefore, there is no problem with the expansion of Meituan. One rider is responsible for the construction of a rider station in one city, and Hangzhou can send 4000 riders at a time.
The key lies in funds. Wang Heng has to prepare for the financial crisis, so naturally he will not use all the money to start Meituan.

And I can't afford it. At present, the shipment of Honor has reached 4000 million units. In theory, Meituan can have 4000 million users.
If it is subsidized, it will need 84 billion. How could Wang Heng be willing to take it out? Of course, it can also be financed.
But Wang Heng didn’t want to raise money so early. Now Meituan’s valuation is only 50 billion. If he spends 84 billion to subsidize the market,

When Meituan has 4000 million users, then the minimum valuation will have to rise to 500 billion, so the financing is too bad at this time, so he held back and waited until he finished the financial crisis.
The two major projects of Xixi that took more than two months are still being designed.
It was originally planned to be launched in September as a mobile phone, but due to chip and system reasons, it was delayed, and the specific time may take half a year.

Originally, it was also possible to use other people's chips and systems first, but was fooled by Wang Hengyi and devoted himself to making high-quality goods, regardless of the market.
After that, Ma Yun’s B2B business was successfully listed in early November. This time, 11% of the B2B business’s additional stock was issued to raise US$20 billion. The issue price was HK$15.

The increase in the two days of listing reached 300%, the price-earnings ratio exceeded 300 times, and the market value exceeded 200 billion US dollars.

Due to the rise of b2b, the valuation of Yanxuan Group exceeded 2000 billion, more than double the valuation of Pinxixi, and became the Internet company with the highest market value in China.
Because of the b2b surge, all shareholders of the original Ari, including Yahoo, blamed Ma Yun, and even Ma Yun himself regretted it a bit.

He never expected that Ahri's B2B company, a company with no future, would adjust its stock price repeatedly in the initial stage of listing, from a market value of only 30 billion US dollars to more than 60 billion US dollars.

After listing, it exceeded 200 billion US dollars, 7 times the original estimate.
If he had known that b2b would be so fierce after listing, how could he be willing to merge with Yanxuan, let alone exchange shares with Pinxixi 2:1,

Of course, money is hard to buy. I knew it earlier, and now it is useless for Ma Yun to regret it. It’s just that the relationship between him and Wang Heng has just eased, because the b2b listing has soared, and there are turmoil again.

Wang Heng doesn't care about Ma Yun's mood now,
Today, b2b has risen another point, and its market value has reached 202 billion U.S. dollars.
Wang Heng stood in front of the big screen in the big office of the investment company, looking at the b2b trend on the screen and thinking,
Because of the memories of his previous life, he knows very well how much b2b has risen now, and how much it will fall in the future, and it has only been two days, where b2b has come and gone, and even fell below the issue price.
Wang Heng was thinking, Manager Li and a group of traders were waiting for his order,

Wang Heng only thought for a few minutes before making a decision.
"Then let's start now."

After Wang Heng gave the order, he sat on the sidelines and watched Manager Li instruct his subordinates.
"The numbers reported by each group, the maximum amount of securities lending by major securities firms."

After Manager Li finished speaking, the leaders of each group of traders quickly reported the number of b2b stocks owned by the corresponding securities firm.

"1 group of 1568 million shares of Peregrine Securities."

"2 groups of Sun Hung Kai Securities 5645 million shares."

"3 groups of 825 million shares of Nanhua Securities."

"4 groups of 986 million shares of Shenwan Securities."

"5 groups of 3638 million shares of Everbright Securities."

"6 groups of 2825 million shares of Merrill Lynch."

"7 groups of Goldman Sachs Securities 3869 million shares."

"8 groups of 2963 million shares of Standard Chartered Securities."

"9 groups of 2680 million shares of HSBC Securities."

……

Hengda Xiangjiang Financial Investment Co., Ltd. has opened direct access to Hong Kong stocks, and also opened the accounts of the top 50 securities companies in Hong Kong.

Therefore, Wang Heng does not need to go to the stock market hall to trade stocks at all. He can directly buy and sell at Xiangjiang Hengda Investment Company.

Generally, for a tradable stock fund of a stock, securities firms account for about 30%, retail investors account for about 50%, and hot money accounts for about 20%.

b2b has just been listed, and the trading volume is huge. Securities companies are optimistic about b2b, and they are buying b2b stocks one after another.

B2B has nearly 7 million shares in circulation, and more than 20 securities firms hold more than 4 million shares.
Based on today's stock price of 42 Hong Kong dollars, it is as high as more than 170 billion Hong Kong dollars.

Of course, leverage can be used in Hong Kong, and foreign exchange can reach up to 20 times.
Stock margin financing and securities lending can also reach 10 times. Of course, Wang Heng will definitely not use [-] times leverage.
With ten times the leverage, if there is any fluctuation, his money will be gone, and there will be no chance to increase it, so it would be so miserable.
The team leaders of each group reported the numbers, while Manager Li was using the computer to make statistics,

Soon the data came out, Manager Li glanced at the data and said,
"Boss, the securities firm owns 4.1259 million shares with a market value of 173.2878 billion Hong Kong dollars. How many leverages are used?"

"5 times leverage, let's start to operate!"

As soon as Hengda Investment Company operated, a large number of super sell orders appeared in the B2B stock market.

42.00 twenty thousand lots,
41.99 ten thousand lots,

41.98 twenty thousand lots,
41.97 ten thousand lots,

41.96 twenty thousand lots,
.........

Hong Kong stocks can be bought or sold, and the operation is very simple. In fact, you just set the target number of stocks on the trading interface, and then click "sell" directly.

As for how many stocks you can borrow, it depends on your own margin amount and the amount owned by the brokerage.
Of course, if you want to borrow the stocks held by a brokerage firm, you will naturally open a margin financing and securities lending business.
For example, if you speculate in big A shares, the account you open with Zheshang Securities will naturally not be the same as Galaxy Securities’ margin financing and securities lending.
In addition, domestic securities lending and short selling rules are somewhat strict, which is very unfavorable to investors. There are several main ones:

[-]. The selling price of the stock for securities lending must be higher than the current price, that is, it cannot be smashed.

[-]. The funds sold by securities lending cannot be used to buy stocks, that is, the money can only be put on the shelf, and the stocks that cannot be bought are the lock-up period, and the interest is paid in vain, and the interest of securities lending is higher than that of financing.

……

And because Hong Kong stocks can be bought or sold, there is no restriction on the stocks that have been raised to smash the market.

There is securities lending, of course there is financing. Securities lending is to borrow stocks and sell them first. When the stocks fall, you can buy stocks and return them during the contract period to earn the profits that have fallen.

Financing is to borrow money to buy more stocks, wait for the stocks to appreciate in value, and earn profits from the appreciation.

Hengda Investment is so smashing, if the financing does not take over, it will be smashed and liquidated.

Basically, it is impossible for those who raise funds to speculate in stocks to watch you smash the market.

In addition, after some securities firms are optimistic about a stock, they will also make one fish and three meals. For example, after lending the stock to the securities lender, they will buy a certain number of stocks from the market.

If you borrow again, he will lend you back, and after you sell it, he will buy it back again, just like infinite nesting dolls,
Of course, it is impossible to do this clearly. The Xiangjiang Exchange has strict regulations, and will send auditors to audit every once in a while to determine whether some financial institutions have carried out excessive financing or securities lending, that is, the infinite doll.

In addition, since margin financing and securities lending are high-risk businesses, the cost of borrowing funds charged by securities companies is quite high. In Xiangjiang, the interest rate of margin trading or short-selling transactions is 4-5 percentage points higher than the mortgage loan interest rate, so basically Most of the securities firms in Hong Kong will do securities lending business,

For a stock with a market value of 173 billion, using 5 times leverage only requires a deposit of 34 billion. Of course, it is impossible for Hengda to eat all of this 173 billion. It is not bad to be able to eat 150 billion.
150 billion stocks, 5 times leverage, so Hengda Investment Company needs to pay 30 billion deposits,

When the b2b stock price rises to 50 yuan, Hengda’s 30 billion deposit will lose 28.5 billion, and the remaining deposit will only be 1.5 million.

At this time, if Hengda does not make up the deposit, the securities company will forcibly close the position.
If the b2b stock price suddenly rises to 51 yuan, then Hengda Investment will lose 32 billion, and his margin is only 30 billion, so the position will be liquidated instantly.

Is it possible for b2b to rise to 51 yuan?Yes, although the highest B2B stock price that Wang Heng knew in his previous life was 42 yuan,
But that is when there is no big short position, if there is a big short position,
Maybe there will be a securities company, or hot money, or a big dealer, to blow up the big short...

In addition, it cannot be ruled out that the securities company knowing the customer's position information on its own account and deliberately blowing up the customer's position,
For example, Hengda started shorting B30B for 2 billion, and then several securities companies joined forces to take over Hengda's securities lending, and further pushed up the stock price until Hengda's position was blown out.

Of course, Hengda can also make up the margin. Every time they push up the stock price by 8 yuan, Hengda will lose 28.5 billion.
For example, b2b was pushed to 50 yuan by them, Hengda lost 28.5 billion, 58 yuan, 57 billion, 66 yuan, 85.5 billion, 74 yuan, 114 billion,
In general,

Bulls: Kill!

Short: Stop!

Bulls: Kill again!

Short: I will block again!

Bulls: Make another cut!

Short: I will continue to block!
Bulls: Is this still dead?
Short: I can still block!
Boss: Damn it now, right?
Short: I can't stop it, hurry up...

Of course, with the funds invested by Hengda, the b2b stock price must rise to at least 100 yuan,
In other words, the market value of b2b needs to increase by 2.5 times, and the market value reaches 500 billion US dollars before Hengda can lose its position.

Hengda can't continue to make up for it. There is a time limit for securities lending. The general contract period is half a year, so when the 6-month period is up, it will be forcibly settled.

After the contract expires, even if the stock price falls to one yuan the next day, it has nothing to do with you.

Of course, Hengda will not sit still. In addition to making up the margin, it will continue to borrow stocks to suppress the stock price. Anyway, when the bulls and the bears are fighting, all available moves will be on top.

When there is a whole series of large orders of 2 lots in B2B, this is Hengda Investment’s direct announcement to the market that he wants to short B[-]B, various institutions, hot money, and retail investors believe in Hengda, so let’s get on the bus and buy down together!
Soon the stock price of b2b was instantly hit by Hengda Investment to 40 yuan,
After Ma Yun knew that Wang Heng was shorting b2b, he was very annoyed.

However, the 15 billion US dollars he raised was for the development of the group company. It must not be used to speculate on the stocks of the subsidiaries, and the market does not allow him to operate.

As for why Hengda Investment can operate b2b stocks, because there is no direct relationship between the two,
Hengda Group does not directly hold shares in B2B, so it can be operated completely,
The B2B subsidiary controlled by Yanxuan Group Company has independent legal personality, owns its own property, its own company name, articles of association and board of directors, conducts business activities in its own name, engages in various civil activities, and independently bears all legal obligations of the company. All consequences and responsibilities brought about.

In addition, other shareholders of Yanxuan Group also hold shares in b2b stocks.

The scale is roughly that Yanxuan Group owns b2b, 60% of the shares, 20% are group shareholders, B2B executives and employees, and 20% are listed tradable shares.

The shareholders of Yanxuan Group must have paid a price for taking B2B stocks.

At that time, it was exchanged at 1:2.5, Hengda Group did not want b2b stocks, and exchanged shares of Yanxuan Group according to the ratio.

Ma Yun saw that Hengda Investment brought up a big short position, and b2b fell by more than 3 yuan in less than an hour, a drop of more than 80%.

Ma Yun dialed Wang Heng's phone angrily and asked,
"President Wang, what exactly do you want to do?"

Wang Heng didn't react for a while,
"What do you want to do?"

"Why do you want to short b2b?"

"Of course to make money! If it can be sold, I want to sell the whole b2b, 200 billion US dollars! 1600 billion RMB, won't you have everything if you sell B2B?"

Ma Yun also wants to sell, but the newly listed stocks are still in the lock-up period.

"So, you think b2b is not worth 1600 billion?"

"In my eyes, B2B is worth up to 160 billion, with a price-to-earnings ratio of more than 300 times. All fools know that this is a void market value that has been speculated. When the market reacts, it will definitely fall back, so I make money by selling short, and make money. Why don't I make money."

Ma Yun, as the person in charge of the group, of course knows that B2B is a big bubble blown up, and the inside is empty.
But no man is willing to admit his hypocrisy, so Ma Yun thought in his heart that if b2b can always be strong, then he will be the person in charge of the largest Internet company in China.
PS: Alas, the car cannot be driven, the author simply speeds up and directly enters the time period of the financial crisis,
In addition, it will take some time to add more things. Please believe in the author's character and always remember it.

(End of this chapter)