Reborn in Hong Kong as a Tycoon

Chapter 316 Cost 10 Billion!
Hong Kong Stock Exchange.

Short-selling funds led by Henry Caesarker and others are constantly selling Hutchison Whampoa stocks, while Lin Baicheng's funds, operated by Goldman Sachs, Morgan and other institutions, are continuously buying stocks below 25 Hong Kong dollars, throwing one after another.

Hutchison Whampoa's stock price fluctuates by three or four points because both parties are trading large orders.

As the amount of transactions between the two parties continued to increase and the volume of transactions was huge, many people could see that this was a game between long and short.

If the short side is strong, then nothing to say, Hutchison Whampoa's stock price will definitely have another wave of decline, and it is almost a foregone conclusion that it will fall below 20 Hong Kong dollars per share.Conversely, if the bulls are strong and hold on at the price of 25 Hong Kong dollars, after the short side cannot be suppressed, more funds will naturally enter the market to go long, and the stock price will inevitably rebound to above 30 Hong Kong dollars.

In this kind of long-short game, except for a few bold funds who dare to participate in long or short positions, more funds choose to sit on the sidelines and wait for the winners and losers to be scored by the long and short sides.

When the time came to eleven o'clock, the short side released fewer and fewer orders.

In the VIP room where Henry Cassack and others were located, the faces of Henry Cassack, Michael Kadoorie, George Swire, John Madden and others were very ugly at the moment.

Of the 3000 million shares borrowed in total, about 2000 million shares have been sold in about half an hour just now, but the funds on the tray are like a bottomless pit, and they keep taking orders, and all of them are taken.

Henry Cassack said: "This bull is very strong, what should I do?"

John Madden said: "It's at this time, we definitely can't admit defeat, let's sell the remaining 1000 million shares first."

Michael Kadoorie nodded in agreement: "I don't believe that bulls have unlimited funds. As long as Hutchison Whampoa doesn't have any big gains, we don't have to worry about the stock price going up."

George Swariya also said: "Sell the remaining stocks first, and see if the bulls can still catch them. If they can catch them, then we will discuss how to deal with them."

The four of them had made a decision, and the others had no opinion, so the specific traders continued to sell the remaining stocks.

About 10 minutes before the end of the morning session, all the short stocks of the British capital family were sold, but they were all caught, and the stock price immediately ushered in a rebound.

Although traders from Goldman Sachs, Morgan and other institutions stopped buying after the stock price exceeded 25 Hong Kong dollars, there was no large number of selling orders, and the funds that had been on the sidelines for a long time did not know that the bulls had won the victory, so naturally a large amount of funds chose to go long Buy stocks, and the stock price will naturally rebound.

Henry Kessack and others were discussing how to deal with it, while Lin Baicheng learned from Haruko Mori how much money he spent in the morning and how many stocks he bought shortly after the morning market closed.

Lin Baicheng's principal is 4.2 million U.S. dollars, which is 21 million Hong Kong dollars. After using five times leverage, it is 25 billion Hong Kong dollars.In the morning, Henry Cassack and others sold almost 3800 million shares below [-] Hong Kong dollars. Most of these stocks were taken over by Lin Baicheng's funds.

In addition, there were some follow-up stocks sold, so although some funds bought stocks below 25 Hong Kong dollars, they sold more, so Lin Baicheng bought more stocks with his funds. About 4150 million shares were bought.

The average purchase cost of these 4150 million shares was 23.85 Hong Kong dollars, and it cost about 9.95 million Hong Kong dollars including handling fees.

4150 million shares, accounting for about 4% of the 10.375 million shares, more than one-tenth of the total number of shares.

In the afternoon, the stock price of Hutchison Whampoa fluctuated for a while at the price of 30 Hong Kong dollars. Although there were no large selling orders from the short side, there were no large buying orders to drive up the stock price. To about 26 Hong Kong dollars.

After that, the stock price fell below 25 Hong Kong dollars, but because of the relationship with the tray below, it quickly rebounded back. Since then, it has been fluctuating up and down at 26 Hong Kong dollars, and has been running above 25 Hong Kong dollars.

The reason why there were no short sellers who sold a large number of stocks and caused a sharp drop was that Hutchison Whampoa itself had negative news. The market did not recognize the stock price at the price of 30 Hong Kong dollars. Buying less and selling more, the stock price naturally fell.

As the short side, Henry Cassack and others did not move in the afternoon because they were still discussing and had not yet decided whether to continue borrowing stocks to suppress the stock price.

Adding up the two times, Henry Cassack and others have borrowed 7000 million shares. Although the first time they were shorting through Standard Chartered, they actually borrowed shares from HSBC, because Standard Chartered borrowed shares from HSBC. At that time, they turned their hands around in order to hide.

Although after inquiring, they learned from HSBC that they can still borrow 5000 million shares, there is no problem, but they have to consider what to do if the borrowed shares are taken over by multiple parties.

The number of stocks they can borrow is limited. If the multiple parties have strong funds and take up all the sell orders, they will eventually have to buy back the stocks and return them to the brokerage. If it is not good, their short selling will result in losses.

Therefore, Henry Cassack and others had different opinions, and in the end they did not discuss the reason. Everyone decided to do this today and talk about it tomorrow.

It is said that HSBC has a lot of stock lending and it has something to do with Lin Baicheng himself. When he bought Hutchison Whampoa, he used the 9000 million shares he bought from HSBC as collateral for a loan of 10 billion Hong Kong dollars. The contract at that time allowed HSBC lends these shares in securities lending.

Of course, the premise of all this is that Lin Baicheng's control over Hutchison Whampoa will not be affected. HSBC must ensure that there is a sufficient number of stocks to return to Lin Baicheng at any time, otherwise it will pay five times the real-time stock price as compensation.

Lin Baicheng stayed in Hutchison Whampoa all afternoon, keeping an eye on the stock price changes, but he didn't expect that the short side didn't move at all in the afternoon.

After the stock market closed, Lin Baicheng left Hutchison Whampoa and went to Qizhou Yingni Company.

Speaking of which, Qizhou Yingni Company also held a shareholder meeting and a board meeting today, but because of the important relationship with Hutchison Whampoa, Lin Baicheng asked his assistant Liao Siren to attend on his behalf.

Now that Lin Baicheng is the chairman of Qizhou Yingni Company, of course he has to go there and arrange for someone to take over the company.As for the transaction with Li Jiacheng, it has already been arranged to be carried out at Yingni Company in Qizhou tomorrow morning.

When the transaction with Li Jiacheng is completed and the time for purchasing the remaining shares from the stock market expires, Lin Baicheng can delist the Qizhou Yingni Company, and the company will be under his control from now on.

(End of this chapter)