Reborn in Hong Kong as a Tycoon

Chapter 314 Low Tray
Monday the next day.

Without any surprises, the stock price of Hutchison Whampoa ushered in a dive during the call auction stage. After the market opened, it quickly fell below the price of 30 Hong Kong dollars, and the lowest fell to around 27 Hong Kong dollars.

Despite this, the stock price of Hutchison Whampoa has fallen by about 20% that day, losing almost 30 billion Hong Kong dollars in market value.

In Hutchison Whampoa, Lin Baicheng's office.

"Boss Lin, it has only fallen by about 20% now, and it may fall again in the future."

When secretary Qin Lan reported the latest stock price, Wei Li said so.

Cheng Yufeng also said: "Since someone is shorting, such a small drop will definitely not satisfy the short side."

Xia Boyin asked: "Mr. Lin, if the stock price falls again, shall we allocate funds for repurchases?"

"It's fine to transfer funds, and the company's development cannot be affected."

Lin Baicheng shook his head, and then said: "At that time, you can get a loan from HSBC or Standard Chartered. If the bank is willing to give the loan, then use the loan to buy it back; if the bank is worried about the risk and is unwilling to give the loan, then forget it .”

"As long as the company needs loans and the loan funds are not too large, there should be no problem."

Wei Li said in a deep voice: "The company's net assets far exceed the company's liabilities. In addition, the company's operation is no problem, and HSBC is the company's major shareholder. It should be no problem to give the company a loan."

"No problem is best."

Lin Baicheng nodded and said with a smile: "You don't have to worry too much. I have already contacted my friend in the United States. If the stock price drops too hard, he will enter the market to help me support the stock price, so the drop in the stock price is only temporary. , it will rise back sooner or later.”

"What you have to do is to appease the employees of the company, so that they will not be influenced by the outside world and work with peace of mind. The stability of the company is the most important thing. At this time, any little trouble will be magnified and become major negative news. "

"Mr. Lin, don't worry, we will do a good job in related work."

Wei Li nodded to show that he understood that he was also a minority shareholder of the company, and of course he didn't want problems in the company's development, otherwise the stocks in his hands would become worthless.

"Hey! Hey! Hey!"

With the knock on the door, Weber walked in.

"Mr. Lin, Standard Chartered Bank unilaterally stopped the fixed increase negotiations, saying that it will reconsider whether to accept the fixed increase and become a shareholder of Hutchison Whampoa."

"As expected!"

Lin Baicheng nodded upon hearing the words, not surprised.With the current situation, no one knows where Hutchison Whampoa's stock price will fall, and what will happen in the future is even more of a question mark. It is normal for Standard Chartered Bank to not take the risk of accepting a fixed increase to become a shareholder.

"Mr. Lin, do you want to transfer the call from Taipan Huo of Standard Chartered?"

Secretary Chen Huixiang said at the door of the office.

"Turn in."

Lin Baicheng said a word, and after the call was transferred in, he picked up the phone.

Huo Yaohua called. He expressed his apologies to Lin Baicheng, saying that he had no choice but to implement the decision of the board of directors. He tried to persuade the board of directors to talk to Hutchison Whampoa and accept the fixed increase at a lower price, but the board of directors did not agree, thinking that the risk Too big to consider.

Lin Baicheng expressed his gratitude to Huo Yaohua after hearing this, and then said that Hutchison Whampoa's fixed increase price will not change. Even if the board of directors of Standard Chartered listens to him, the two parties will not negotiate in the end, because the difference between the fixed increase prices determined by both parties is too large. possibility of success.

The stock price of Hutchison Whampoa did not fluctuate for too long around the price of 30 Hong Kong dollars. In less than 10 minutes, a large number of sell orders appeared, and the stock price fell below the price of 30 Hong Kong dollars again.This time the key point fell below, causing a large number of panic orders to be shipped, and the stock price quickly fell to 25 Hong Kong dollars, and continued to fall.

The total number of shares of Hutchison Whampoa is 4 million shares. When the stock price fell below the price of 25 Hong Kong dollars, the total market value fell below [-] billion Hong Kong dollars, and it is no longer the highest market value among listed companies in Hong Kong.

Because HSBC holds 15% of Hutchison Whampoa's shares, when Hutchison Whampoa's stock price rose sharply, he also rose.Now that the stock price of Hutchison Whampoa has plummeted, coupled with the bad market conditions, HSBC's stock price has naturally continued to fall.

However, unlike Hutchison Whampoa, which was shorted, HSBC was not shorted, so HSBC fell relatively little, barely maintaining a market value of tens of billions of Hong Kong dollars.

When Qin Lan came to report that the stock price of Hutchison Whampoa had fallen below 25 Hong Kong dollars, Lin Baicheng nodded and let her go out, and then made an international call to Los Angeles.

Haruko Mori told Lin Baicheng that the offshore company had divided the 25 million US dollars into four according to his instructions and opened accounts with Goldman Sachs, Morgan, Citigroup and Merrill Lynch, and then entrusted these four companies to let the four departments in Hong Kong pay attention to Hutchison Whampoa If the stock price of Hutchison Whampoa falls below 25 Hong Kong dollars, buy it, and don't care if it is higher than [-] Hong Kong dollars.

At the beginning, buy with your own funds, and buy more and more as the price goes down until it is sold out.

Lin Baicheng hung up the phone after confirming that his order had been carried out.Although he only used 25 million US dollars to buy, if the stock price is still below [-] Hong Kong dollars after the purchase with his own funds, Lin Baicheng will use [-] times leverage with this [-] million US dollars, and the number of stocks he can buy will be more up.

If 21 million U.S. dollars is leveraged five times, it will be 25 billion Hong Kong dollars. If the stock price is less than 20 Hong Kong dollars, you can buy more than [-]% of the shares. Lin Baicheng does not believe that this will not make the stock price rise.

If the stock price still can't rise after all the 21 billion Hong Kong dollars are bought, then the short side has the ability, and Lin Baicheng can only admit it.He must keep the remaining funds as a deposit, and he cannot gamble all of them. If he loses, he will lose too much, and he is unwilling to bet so much.

As Lin Baicheng's funds entered the market, selling orders below 25 Hong Kong dollars were caught, and the stock price tended to stabilize and rebound.

At this time, it depends on the choice of the short side, whether to buy back the stock at around 25 Hong Kong dollars and return it to the brokerage, or to continue to suppress the stock price.

The short side did not make a decision immediately, and Hutchison Whampoa's stock price fluctuated around 25 Hong Kong dollars.When the stock price is lower than 25 Hong Kong dollars, there is Lin Baicheng's fund tray; when it is higher than 25 Hong Kong dollars, Lin Baicheng's funds will no longer buy, and the stock price will fall after a while of shock.

When the stock price fluctuated, Lin Baicheng received a call from Shen Congee.HSBC held a board meeting in the morning, and HSBC decided not to reduce or increase its holdings for the time being, and take another look.

Shen Porridge also told Lin Baicheng another news, that is, the funds that are currently shorting Hutchison Whampoa are some British-owned families in Heung Kong. For example, the Caesarker family is one of the short parties. They sell short through the channel of Standard Chartered.

The reason why it didn't go through HSBC's channel is very simple. HSBC is the major shareholder of Hutchison Whampoa, and this alone is enough.

(End of this chapter)