Reborn in Hong Kong as a Tycoon

Chapter 336
The first day of December, the last trading day of the week.

For more than an hour on Friday morning, the stock market was as volatile as the previous few days. The stock price of Hutchison Whampoa closed at 23.62 Hong Kong dollars yesterday, and it opened almost flat today. The stock price also fluctuated up and down in the next hour or so , neither rising nor falling.

However, the trading volume of Hutchison Whampoa is still the largest stock in the entire Hong Kong stock market. It broke through [-] million Hong Kong dollars in half an hour. The turnover of many small and medium-cap stocks in a whole day is not so large.

When the time was approaching eleven o'clock.

Hong Kong stocks, led by several industries such as import and export trade and textiles, began to lead the decline in Hong Kong stocks, and the entire Hang Seng Index was soon driven down, falling below the key integer level of 500 points.After the important support level was broken, almost all stocks in the entire Hong Kong stock market began to fall, and even stocks that had originally risen began to turn around.

In the case of the Hang Seng Index plummeting, Hutchison Whampoa could not avoid it, and the stock price also began to fall, and it was no longer a shock.

In the afternoon, the stock market continued the decline in the early trading, and the Hang Seng Index continued to fall, closing at 466.7 points, and the lowest fell to 461.3 points, a drop of as much as 7% that day.

The entire market has fallen so much, and a large number of stocks have fallen by more than 10% today. The stock market is wailing, and almost no one is spared.

Hutchison Whampoa also fell today, but not by much. The closing price was 22.68 Hong Kong dollars, a drop of 3.98%, which was close to 4%, and the drop was even less than that of the broader market.

Hutchison Whampoa’s decline is not very large. One of the reasons is that Hutchison Whampoa’s follow-up [-] million Hong Kong dollar repurchase funds have all been spent again today, and many selling orders have been caught.

Today, those who also bought a lot in the stock market were short-term British-funded families. They did not choose to take advantage of the trend to suppress the stock price today, but chose to buy stocks, so the stock market plummeted today, but Hutchison Whampoa did not fall too much. .

After the stock market closed, Henry Cassack and others simply did not leave the exchange, and discussed in the VIP room.

Henry Kesak took the lead in saying: "Today we bought about 22.3 million shares at an average price of 1300 Hong Kong dollars, and spent 2.9 million Hong Kong dollars. Now we hold a total of more than 1700 million shares of Hutchison Whampoa. The number of vacancies is much worse than that.”

“What exactly is our short sale right now?” someone asked.

“我们有7000万股借到的成本价是32港币，卖出均价是31.3港币。之后我们又从汇丰借了4000万股，这次的成本价是25.5港币，但我们随后以28港币每股的价格从汇丰那里买下了2000万股的股票。”

“后面的那6000万股，我们有3500万股以21港币卖出，有2400万股以18.2港币卖出，剩下100万股左右没动，然后以16.6港币的均价回购了300万股。”

"In the end, we bought 25 million shares from HSBC at a price of 4000 Hong Kong dollars per share. This transaction did not trade specific stocks, but traded the stocks we borrowed, which means we bought 25 million shares at a price of 4000 Hong Kong dollars. [-] million shares."

For the short side, the cost is the price at the time they borrowed the stock from the brokerage, not the price at the time of sale.If that is the case, it is impossible to say that the cost price of short selling is 20 Hong Kong dollars, right?
"We have sold about 1.3 million shares short-selling in total, but we bought 6000 million shares from HSBC, so the number of shares to be returned to HSBC is 7000 million shares, and we only have more than 1700 million shares in our hands now. , there is still a shortfall of nearly 5300 million shares."

"For now, we have lost a lot of money on the 6000 million shares we bought from HSBC. Among them, the cost price of 2000 million shares is 28 Hong Kong dollars, and the cost price of 4000 million shares is 25 Hong Kong dollars. We have 100 million shares without 3500 million shares were sold at 21 Hong Kong dollars, 2400 million shares were sold at 18.2 Hong Kong dollars, with a total loss of 3.63 million Hong Kong dollars."

"For the remaining 7000 million shares, our cost price is 32 Hong Kong dollars, and the average selling price is 31.3 Hong Kong dollars. Among them, the average buying price of 1700 million shares is about 22 Hong Kong dollars, and the profit is about 2 million Hong Kong dollars. If calculated in this way, we The current loss is HK$1.6 million."

"However, the point is that there are nearly 5300 million shares left. If the entire Hong Kong stock market hadn't plummeted today, we would not have been able to buy that many shares. Hutchison Whampoa is still in the process of repurchasing. If we want to buy so many For stocks, the cost price is likely to be above 30 Hong Kong dollars. At that time, not only will we not make money, but we will lose a lot.”

Henry Caesark stated the data calculated after statistics, so that everyone can have a clearer understanding.

"We have suppressed the stock price of Hutchison Whampoa to the current level, and we didn't expect to lose money!"

"No way, the price to be paid later to suppress the stock price is too high."

"We can't let Hutchison Whampoa continue to buy back, otherwise we will only lose money this time, and we don't want to make money at all, and we still can't achieve the goal of suppressing Hutchison Whampoa's stock price."

"I think it's good to be able to protect our capital now. There are simply not many stocks in the market for us to buy."

"."

Everyone discussed that the possibility of losing money in short selling this time made everyone very dissatisfied and unacceptable.After all, they started short selling from above 40 Hong Kong dollars, and now the stock price is less than 25 Hong Kong dollars, but they may lose money, how can they accept it.

"At noon, I went to the American who represented the company that spent 20 billion Hong Kong dollars to buy stocks. They refused to sell the stock to us at a price of 25 Hong Kong dollars. The price difference we offered was too much, so we can only buy from the stock market.”

"And if we buy stocks from the stock market, and Hutchison Whampoa repurchases them, the average price we buy will only be above HK$30. After all, we have to buy a lot."

"It's still the same sentence, continue to use off-the-market tactics to suppress Hutchison Whampoa's stock price. It just so happens that the stock market is not doing well right now. Once there is negative news with huge influence, it will be difficult for Hutchison Whampoa's stock price to not fall."

"We want to stop Hutchison Whampoa itself, and we can't let Hutchison Whampoa take out funds for repurchases."

"Because tomorrow and the next two days are weekends, everyone will work together to get things done."

After discussions with Henry Cassack and others, they decided to suppress the stock price of Hutchison Whampoa through out-of-the-market moves, and at the same time take advantage of the suppressed stock price to buy low, so as to return the stock to HSBC.

Henry Cassack and the others are also very clear that no matter how much they suppress the stock price, if many parties do not sell the stock and continue to buy it, the stock price will rebound sooner or later. Huge losses, so they have to buy back the short-sold stocks while the stock price is not high.

(End of this chapter)