Reborn in Hong Kong as a Tycoon

Chapter 330 HSBC Liquidation
HSBC issued an announcement to reduce its holdings of the remaining 10% of Hutchison Whampoa shares, and will no longer hold Hutchison Whampoa shares thereafter.

Of course, HSBC does not have 4000 million shares to sell. The reason for the announcement is that it has a deal with the British family and is helping the British family. The market thinks that HSBC is no longer optimistic about Hutchison Whampoa. Not willing to take a share.

It is conceivable that doing so would suppress the stock price of Hutchison Whampoa. It stands to reason that it would not be of any benefit to HSBC, but this time the transaction between HSBC and the British family was that HSBC sold 10% of its shares to the British family.

The British-owned family kept creating negative news for Hutchison Whampoa in order to sell short. The directors of HSBC also became a little worried. They worried that Hutchison Whampoa’s stock price would really not last, so they chose to sell the shares to the British-owned family.This time, the short side of the British-owned family has no choice but to buy it. If they don’t buy it, HSBC will choose Hutchison Whampoa as the platform.

Although many British-owned families have joined forces to put pressure on HSBC, and HSBC must give them face for the business of those companies, but this does not mean that HSBC is willing to sacrifice its own interests, especially when the benefits are not small.

HSBC wanted to sell the shares of Hutchison Whampoa. After discussing with Henry Kessack and the others, they decided to take over all the shares and treat them as buying back the shares of Hutchison Whampoa at a high price.Although they will lose money if they do this, they asked HSBC for help at the beginning, and now they can't let HSBC stand on the side of the multi-party, so they have to accept this part of the loss.

Fortunately, HSBC wanted to sell the shares this time, so unlike last time they bought 28 million shares at a premium of 2000 Hong Kong dollars, after negotiation between the two parties this time, they bought 25 million shares at 4000 Hong Kong dollars.

If calculated based on the shares lent at the price of 21 Hong Kong dollars, the short side will lose 4000 Hong Kong dollars per share for the 4 million shares, and the total loss will be 1.6 million Hong Kong dollars.

The transaction between the two parties did not involve the actual stock transfer, because HSBC no longer has so many Hutchison Whampoa shares, only about 1000 million shares are left, so the transaction between the two parties directly reduces the number of shares lent by the short side by 4000 million shares, equivalent to the 4000 million borrowed shares have been returned to HSBC.

Of course, the short side of the transaction funds must be transferred to HSBC.However, 10 billion Hong Kong dollars is not a small sum, so the short side pays 3 million Hong Kong dollars first, and the remaining 7 million Hong Kong dollars will be paid later.

HSBC's influence in Hong Kong is still very large. The outside world does not know the real situation of the transaction between the short side and HSBC. They think that HSBC is really going to reduce the 10% stake in Hutchison Whampoa. In addition, Hutchison Whampoa itself has negative news. , so a large number of stockholders followed suit and sold stocks. After the stock price fell below 25 Hong Kong dollars, it continued to fall.

Of course, Hutchison Whampoa’s repurchase funds are buying, and even the funds of Bao Yugang, Huo Yingdong and Zheng Yutong are also buying stocks, but the stock price continues to fall because more people are selling stocks.

In the middle, the short side's stocks are also being sold, but they are no longer the main force.Because of the limited number of stocks, when there is a tendency to stop falling and rebound, a large number of stocks are sold, causing panic to follow suit and continuing to suppress the stock price.

The repurchase funds of Hutchison Whampoa and the funds invested by Bao Yugang and others add up to nearly 8 million Hong Kong dollars. These funds are still useful for long-term investment, and the stock price has not fallen below the price of 20 Hong Kong dollars.

However, after 11:30, Hutchison Whampoa ran out of funds for the repurchase, Bao Yugang and the three also called Lin Baicheng one after another to say that they had bought [-] million Hong Kong dollars in stocks, and they were not going to invest more funds.

In this way, the trend of the stock price will be left to the market.

Fortunately, during the sharp drop, I caught a large number of stocks that were sold, and almost all those who wanted to sell the stocks were sold, so there were no big orders to drop down, and the stock price was still above 20 Hong Kong dollars.

The short side wants to drop the stock price below 20 Hong Kong dollars, so that they can buy back the stock at a lower price.But the problem is that they don't have stocks in their hands anymore, and they don't have stocks to sell even if they want to smash them.

At this time, there were only about 10 minutes left before the end of the morning trading. Even if they lent the remaining 1000 million shares from HSBC, it was too late to hit the market, so they did not move.

At the end of the morning session, Hutchison Whampoa’s stock price closed at 21.52 Hong Kong dollars, a drop of 26.4% compared to yesterday’s closing price of 18.49 Hong Kong dollars, almost a 20% drop.

Hutchison Whampoa, after the stock market closed, Wei Li came to Lin Baicheng's office.

Wei Li asked: "Mr. Lin, the 6 million Hong Kong dollars we borrowed from the loan have already been repurchased. Do we need to allocate funds to continue repurchasing stocks?"

"Of course we need to mobilize funds, but it is enough to mobilize 2 million Hong Kong dollars first, and try not to affect the operation of the company."

Lin Baicheng nodded immediately, now is the time to take advantage of the victory and pursue, how could he let the short side go.

Wei Li was a little worried: "Is the fund of 2 million Hong Kong dollars not enough?"

Lin Baicheng said with relief: "If the 2 million Hong Kong dollars are spent again, I will ask Galaxy Games to lend a sum of money to Hutchison Whampoa for repurchase."

"That way I'm relieved."

Wei Li nodded and said with a smile: "Although the short side continues to target the company and release bad news, the impact on the company is only temporary. As long as we buy enough, the short side has no shares to sell, no matter how hard they struggle. It's useless, and you will definitely lose."

"They're doomed!"

Lin Baicheng also smiled and said: "I don't know if they have noticed the recent trend of gold prices. The price of gold has rebounded to around 195 US dollars in the past few days. It has been supported at 190 US dollars per ounce many times before and has not fallen below. I think 190 US dollars per ounce The price of the ounce should be the short-term bottom. Once the price of gold really rebounds, and the price of gold rebounds to 200 US dollars per ounce, then our investment loss will not be too big. At that time, the stock price will inevitably rebound, and it will be difficult for the short side to survive. .”

These were reported to Lin Baicheng by Vivien Kelly and others, who believed that the possibility of a short-term rebound in gold prices was very high.

"Is it true? Great!"

Wei Li was overjoyed when he heard the words: "I've been preoccupied with other things these days, and I forgot to pay attention to the international gold price. The real bearishness of the short side is that the company's investment in gold prices has suffered huge losses. If the gold price rebounds, the short side's shortfall will be If it is not established, the company’s stock price will inevitably rebound.”

"Let's just wait for those British-owned families to suffer huge losses!"

Lin Baicheng sneered. It is not so easy to short his company to make money. I don't know if the British-owned family is ready for a bloodbath.

Wei Li nodded in agreement. Although he is also British, the huge loss of the British-owned family has nothing to do with him. He is the boss and minority shareholder of Hutchison Whampoa, and only considers Hutchison Whampoa and his own interests.

(End of this chapter)