Reborn in Hong Kong as a Tycoon

Chapter 176
The stock market opens in the afternoon.

The stock price of Hutchison Whampoa fell sharply again, directly falling below the price of 4 Hong Kong dollars, and continued to go down.

This time, in addition to Qi Dezun's family selling stocks, there are also securities lending funds entering the market.

In fact, there were securities lending funds entering the market in the early trading, but few of them entered the market. After looking at the institutions and funds all morning, it has been confirmed that a sharp drop in stock prices under a big bearish situation is inevitable. Therefore, during the noon break, a lot of funds added Increase the amount of securities lending, sell a large number of stocks, and prepare to buy them back after the stock price drops to a certain price, so as to earn the difference.

Margin financing and securities lending is actually the use of leverage at securities firms.Financing is to increase the multiple of funds and enlarge the amount of funds, so that more funds can be used to buy stocks, that is, to go long; securities lending is to borrow stocks from securities companies, then sell the stocks, and then buy them after the stock price drops to a certain price Return it to the brokerage when you come back, that is, sell short.

Shorting in securities lending is the same as shorting in the options market, but the option market has an exercise time, the minimum is 30 days, 60 days, 90 days and other longer periods are available, so shorting in securities lending is actually better, because the longer the time, the more variable bigger.

The reason why Li Jiacheng and others did not choose securities lending to short is because securities lending is to borrow stocks from securities companies or banks, and Hong Kong only holds Hutchison Whampoa stocks. They are worried that borrowing a large amount of stocks from HSBC will leak news. It was noticed by Hutchison Whampoa or Lin Baicheng, so they chose to short through the option market.

Shorting through the options market, although there is a limit on the exercise time, it is also possible to negotiate a price settlement with the opponent in advance, and it is not necessary to wait for the exercise time to arrive before settlement, and as long as it is kept secret, the operation will not be exposed, confidentiality aspect will be higher.

After the bad news of Hutchison Whampoa was exposed, whether the participants were institutions or retail investors, if these funds wanted to go short, they could sell stocks through securities lending to HSBC.

The Qi Dezun family is simply selling stocks, but more of the funds belonging to institutions and retail investors are short selling stocks through securities lending. The sharp drop in stock prices is due to the fact that many funds such as Lin Baicheng are buying, and a small amount of bottom-hunting funds are fighting for it. Otherwise, the stock price will only fall more fiercely.

Lin Baicheng himself raised 8.4 million Hong Kong dollars in funds, and Hutchison Whampoa used [-] million Hong Kong dollars to repurchase. The cooperation between Lin Baicheng and Iwasaki Mineryu has [-] million Hong Kong dollars in funds. A lot of funds are buying stocks. In addition, HSBC funds are also buying Hutchison Whampoa stocks.

Therefore, regardless of the ferocious drop in the stock price, Lin Baicheng and others were not worried at all, and they never refused to buy.

The more the stock price falls, the slower the rate of decline, because the short-selling can earn less profit, the fewer people dare to short-selling, and at the same time, the more people will enter the market to catch the bottom and rebound, and the stock market is actually the source of funds. In the game between long and short, whoever has more money will be stronger.

Hong Kong Stock Exchange, Hutchison Whampoa is definitely the most beautiful stock today, which has attracted the attention of many investors.

In the big VIP room, Li Jiacheng, Feng Jinxi, Niu Bijian, and Bob were watching the stock price trend of Hutchison Whampoa and the price changes in the option market.

When the stock price of Hutchison Whampoa fell below 3.5 Hong Kong dollars, the closer it was to 3 Hong Kong dollars, the slower the rate of decline.

Seeing this, Feng Jinxi said: "3 Hong Kong dollars is the low point in the previous period, and there will be support here, so the rate of decline will slow down now. Once this price can be broken down, more short-selling funds will join in, and the stock price will inevitably rise. Usher in a new wave of decline."

Li Jiacheng said: "There was so much rebound in the morning, and now there is support. Do you think it would be better to settle some empty orders first?"

"It is obvious that the short side has the advantage now, and we will earn a lot less at the settlement now."

Bob immediately retorted that when the short side has an advantage, of course, the lower the stock price, the better the settlement, and the more you can earn in this way.

Niu Bijian also said: "I also think it's better to settle after the stock price falls below 3 Hong Kong dollars."

"Actually we can do that."

Feng Jinxi thought for a while, and said to the three people: "Let's first observe whether the stock price will hold at 3 Hong Kong dollars. If it can't hold up, then of course it's best. We will settle the short order according to the stock price trend. If the stock price is supported In the trend, we took out another sum of money, sold stocks through securities lending, and broke the price of 3 Hong Kong dollars. At that time, there will definitely be a large number of follow-up orders, but we took the opportunity to close the empty orders.”

"Although Hutchison Whampoa suffered a huge loss this time, the stock price fell below 3 Hong Kong dollars, and the total market value was about 10 billion Hong Kong dollars. Adventure, what do you think?"

Bob immediately nodded in agreement: "Mr. Feng is indeed a professional, so I will do as you say."

"I don't mind either."

Niu Bijian nodded, it is indeed better to do this, and the profit of more than 50% can already be stopped.

Li Jiacheng did not object, but he said: "I have no objection, but I have no funds."

Feng Jinxi said: "We are selling around the price of 3 Hong Kong dollars. The total market value of Hutchison Whampoa is only more than 12 billion Hong Kong dollars. Even if it is safer, we will pay 1000 million Hong Kong dollars each, and 4000 million Hong Kong dollars is completely enough to complete the sale. Not even that much."

"If you don't want to pay the money, I don't mind paying an extra 1000 million Hong Kong dollars."

Bob looked at Li Jiacheng. The reason why he was willing to pay an extra 1000 million Hong Kong dollars was because it was a short sale of securities lending. They smashed the market above the price of 3 Hong Kong dollars, and when the stock price fell below the price of 3 Hong Kong dollars, he bought it back. You can earn a certain price difference.If you earn more now, you will naturally earn more by then.

"I don't have any extra funds. Since Mr. Bob is willing, I will trouble Mr. Bob."

Li Jiacheng immediately said that he had already arranged for someone to buy stocks around the price of 3 Hong Kong dollars, how could he be willing to continue to spend money to go short. The price between HK$3 and HK$3.5 is not considered high in Li Jiacheng’s opinion. Even if the stock price of Hutchison Whampoa will fall below HK$3 this time, as long as Hutchison Whampoa is still the largest landlord in Hong Kong, the future prospects of the real estate industry will be as good as his Generally speaking, the stock price of Hutchison Whampoa will return to this price sooner or later, or even go higher.

Therefore, Li Jiacheng does not think that he will lose money if he buys the stock price of Hutchison Whampoa at this price, at most it will take a little longer.

As for the short options, Li Jiacheng didn't think there was a problem, and Feng Jinxi had a good idea. When the stock price broke through 3 Hong Kong dollars, the short position could be settled and the pocket would be safe.

Li Jiacheng and the others believe that when the stock price falls below 3 Hong Kong dollars, the opponents of short orders who are long will definitely be afraid that the stock price will fall even harder, so they will accept the price they released for settlement.It's a pity that they didn't know at all that among their empty orders, the opponent's order of more than 2 million Hong Kong dollars was bought by Mineryu Iwasaki, and they couldn't even think about completing the settlement at a lower price.

(End of this chapter)