Reborn in Hong Kong as a Tycoon

Chapter 538 Additional Issuance of Stocks, Big Rise in Market Value (Two in One)

"Hutchison Whampoa made a profit of 41 billion Hong Kong dollars!"

Many people in Xiangjiang are talking about this matter, porters, students, white-collar workers, bosses and other classes are all talking about this topic.

The figure of 41 billion Hong Kong dollars is too large, but anyone who heard the news for the first time was very shocked and could not believe it.

People will naturally mention Lin Baicheng when discussing this topic. Hutchison Whampoa took off only after being acquired by Lin Baicheng. People know that Lin Baicheng has brought great changes to Hutchison Whampoa, and the investment profit is also Lin Baicheng's handwriting.

Although Lin Baicheng was not mentioned in some newspapers, people would subconsciously think so.

Some tabloids with a small circulation, in order to attract attention, while reporting normal news, also predict the investment profit of Hutchison Whampoa next year, and boldly predict that the profit may reach tens of billions of Hong Kong dollars.

In order to attract people's attention, the tabloids directly ignored that Hutchison Whampoa did not make any further investment at present, and did not explain the reason, and directly mentioned a figure of tens of billions of Hong Kong dollars, so as to attract Hong Kong residents to buy their own newspapers.

Needless to say, some people are really attracted, the number 'ten billion' is very eye-catching.

The massive media reports did not affect Lin Baicheng, he contacted Shen Porridge from HSBC before get off work, and the two made an appointment to meet in the afternoon.

Before the two met in the afternoon, the stock market opened first, and various stocks were traded.

The stock price of Hutchison Whampoa continued its upward trend and went up in shocks. Half an hour later, the stock price broke through the price of 80 Hong Kong dollars and hit a new high.

During this half hour, the Hang Seng Index not only did not rise, but also fell a little.

Or it should be said that after a large number of retail investors learned of Hutchison Whampoa's huge profits in the morning, as Hutchison Whampoa's stock price rose, the Hang Seng Index fell slightly instead, following the opposite trend of Hutchison Whampoa.

Logically speaking, if Hutchison Whampoa, a large-cap stock, rises, the Hang Seng Index should follow suit. After all, Hutchison Whampoa has a great influence on the index.

The result is the opposite, and the reason is very simple.

The money of stockholders is not unlimited. Most of the money of stockholders has already been invested in the stock market. If stockholders want to buy the stock of Hutchison Whampoa, they need to sell the stocks they originally held so that they can have money to buy and sell the stock. Remember the stock of Whampoa.

A large number of stockholders sell their stocks, which will naturally affect the index. The chain reaction will cause more people to sell stocks, so that the Hang Seng Index will not rise but fall.

Large-cap stocks such as Hutchison Whampoa have a great siphon effect on funds. If a large amount of funds are invested in Hutchison Whampoa, other stocks will naturally fall due to lack of funds. The two form a seesaw effect.

After the stock price broke through 80 Hong Kong dollars, Hutchison Whampoa did not fall sharply, and it was still in a fluctuating upward trend. Obviously, long funds are very strong.

When the stock price of Hutchison Whampoa broke through 80 Hong Kong dollars, it rose by nearly 20% on the day, and the Hong Kong stock market did not rise or fall. As long as the long funds are strong enough, the stock price of Hutchison Whampoa can rise again, and the increase on the day can be as high as 50% or even 100. %It will be all right.

However, it is basically impossible for Hutchison Whampoa to increase by 100% that day, and it is even difficult to increase by 50%. After all, as of yesterday, Hutchison Whampoa’s total market value was as high as 267.88 billion Hong Kong dollars, and a 50% increase is more than 130 billion Hong Kong dollars, adding up to a total market value of 400 billion Hong Kong dollars, the stock price just reached 100 Hong Kong dollars.

The stock price of Hutchison Whampoa may rise to the price of 100 Hong Kong dollars in the next period of time, but it is basically impossible today because there is not so much capital to promote it.

At around two o'clock in the afternoon, Lin Baicheng and Shen Congee met.

"Lin Sheng, congratulations, Hutchison Whampoa's profit this time is as high as 41 billion Hong Kong dollars, which is really shocking!"

Shen Congee expressed congratulations aloud, although he felt depressed because HSBC sold the shares of Hutchison Whampoa ahead of schedule.

"Thank you."

Lin Baicheng shook hands with Shen Congee.

After the two sat down, Shen Porridge said regretfully: "It's a pity to say that HSBC originally held a lot of Hutchison shares, but it's a pity that they sold them in advance, otherwise they can also make a fortune this time."

Lin Baicheng immediately said: "This is all thanks to the rise in gold prices, otherwise Hutchison Whampoa would not have made much investment profit. It was not a mistake for HSBC to sell at that time. After HSBC sold, Hutchison's stock price fell below 50 Hong Kong dollars. It shows that HSBC sold it right at the time.”

"That's true."

Shen Congee nodded with a smile, and stopped talking about this topic, and instead said, "Lin Sheng, you said that Hutchison Whampoa wants to cooperate with HSBC, but what kind of cooperation is it?"

Lin Baicheng asked with a smile: "Master Shen, do you still remember the issue of additional shares that I mentioned to you at the beginning of the year?"

"Of course!"

Shen Congee nodded, his eyes lit up: "Lin Sheng, are you going to let Hutchison Whampoa issue additional shares and hand over the business to HSBC?"

"Daban Shen is right."

Lin Baicheng nodded: "I'm going to hand over the additional issuance business to HSBC. HSBC is the largest bank in Hong Kong. If I don't cooperate with HSBC, who will I cooperate with? Do you think so?"

Shen Congee immediately said, "Lin Sheng, you will never be disappointed by working with HSBC."

"I naturally believe in HSBC."

Lin Baicheng nodded with a smile, and then said: "But before we cooperate, I want to discuss the general direction with you first, and the specific matters will be discussed in detail by the staff below. What do you think?"

Shen Congee listened and said: "Lin Sheng, I am different from you. Although I am the head of HSBC, I am responsible for the board of directors. Therefore, I can decide the conditions within my authority. If it is not within my authority, there will be no There is a way."

"I understand what Taipan means."

Lin Baicheng nodded and said, "Let me ask first, the current stock price of Hutchison Whampoa is 80 Hong Kong dollars. If additional shares are issued at this point in time, what price can the additional issue be?"

"Lin Sheng, if investors want to accept Hutchison Whampoa's additional shares, they must make profits for them. Otherwise, everyone can go directly to the stock market to buy Hutchison Whampoa's shares. Why should they choose Hutchison Whampoa's additional shares? "

"Therefore, the price of additional shares must be set a little lower. However, the stock price of Hutchison Whampoa has been rising continuously under the sudden favorable stimulus. At present, it is impossible to determine which price will rise to stabilize, so the additional issue price can only be discussed by both of us. Come up with a price that the market can accept.”

"Once the additional issue price is set too high, no shareholders choose to buy it, and if the additional issue fails, it will have a considerable impact on Hutchison Whampoa's reputation. It will be considered that the capital market is not optimistic about the company's long-term development, resulting in a short-term downward adjustment of the stock price. possible."

Shen Congee spoke aloud, Lin Baicheng listened very seriously.

Lin Baicheng quite agrees with Shen Congee's words. If there is no profit, it is certain that no one will accept the additional shares, and even if there are, there will not be many.

"Shen Daban, for the company, the higher the price of the additional issue, the better. What do you think is the appropriate price for the additional issue?"

"With the current scale of Hutchison Whampoa, there is absolutely no problem with 60 Hong Kong dollars. If it is higher, it depends on which price will fluctuate after this wave of stock price adjustment. If the stock price can fluctuate above 70 Hong Kong dollars, then 65 Hong Kong dollars. The price is not unacceptable; if the stock price can fluctuate around 80 Hong Kong dollars, then there is no problem with the additional issue price of 70 Hong Kong dollars.”

"Since this is the case, let's not talk about the price of the additional issue. It is not too late to decide the final price of the additional issue after Hutchison's stock price stabilizes after a while."

"That's good, it just so happens that the issuance of additional shares will not be completed in a short period of time."

Shen Congee didn't object when he heard the words, and then asked: "Lin Sheng, I don't know how many additional shares you want to issue this time? At the beginning of the year, you said you would issue 25% additional shares, but 60 million shares is too much. Even if you only Based on the additional issue price of 60 Hong Kong dollars, [-] million shares is equivalent to [-] billion Hong Kong dollars, and I don’t think Hong Kong’s current market can accept such a large amount of additional shares.”

Lin Baicheng asked: "If 5000 million shares is not enough, what about [-] million shares?"

Shen Congee thought for a while and said: "Although there are still a lot, it is not impossible to sell all of them. The specific price depends on the additional issuance price at that time. If the additional issuance price is too high, then the additional issuance amount will be reduced."

Lin Baicheng nodded after listening: "That is to say, there should be no problem in issuing at least 4000 million additional shares, isn't that right?"

Shen Congee nodded: "You can say that."

Lin Baicheng immediately said: "Then we will discuss the specific number of additional issuances after the additional issuance price is roughly determined."

"it is good."

Shen Congee said with a smile on his face, "Don't worry, Lin Sheng, when the time comes, HSBC will take over part of the additional shares. At the same time, we will also recommend Hutchison Whampoa's shares to our clients, and try our best to ensure that the additional issue can be completed."

Lin Baicheng smiled and said: "Shen Daban, let's talk about the handling fee next. I think the 4% handling fee is a bit high. The market value of the additional shares issued by Hutchison Whampoa is calculated based on 30 billion Hong Kong dollars. 4% The handling fee is 1.2 million Hong Kong dollars, which is too high.”

"Lin Sheng, the 4% handling fee is not high at all. The market price is 5% handling fee. I have already given Hutchison Whampoa a certain discount."

Shen Congee immediately said, based on the market value of the 30 billion Hong Kong dollar additional issuance, 1% of the handling fee is 3000 million Hong Kong dollars, and one-thousandth of it is 300 million Hong Kong dollars, so when it comes to handling fees, you must not let go easily.

Lin Baicheng: "Mr. Shen, you need to know that the market value of additional stocks issued by other companies is definitely not high. Whether there is 1 million Hong Kong dollars is a question mark, and the market value of additional stocks issued by Hutchison Whampoa is several billion Hong Kong dollars. This is a big deal. HSBC should give certain discounts."

How can Shen Congee be easily persuaded: "Lin Sheng, it is precisely because Hutchison Whampoa's order is a big one that I give a 5% discount on top of 1%. If I lower the handling fee, I can't explain it to the board of directors. "

Lin Baicheng: "Mr. Shen, I think we can talk about the handling fee again and give a certain discount. How about letting the people below discuss it in detail?"

"Well, it's for Lin Sheng's sake. I hope that there will be similar cooperation in the future, and Lin Sheng will think of us at HSBC."

Shen Congee pondered for a while, then nodded and agreed, a few thousandths of the handling fee is still acceptable, there is no need to refute Lin Baicheng's face for this.

Lin Baicheng couldn't help smiling: "Then, I wish us a happy cooperation."

"Happy cooperation!"

Shen Congee was happier than Lin Baicheng. If this order is completed, HSBC will obtain a profit of no less than [-] million Hong Kong dollars. This is not a small business.

The reason why Lin Baicheng chose this time to start issuing additional stocks, instead of waiting for Hutchison Whampoa to make a lot of money from long gold futures next time, is that he considered that his reputation would not be affected.

If you wait until the next time you make a fortune on gold futures, Hutchison Whampoa's stock price will rise sharply again and then issue additional stocks. When the additional shares are completed, Hutchison Whampoa's stock price will inevitably fall, and there will be a big adjustment. It will be understood by the outside world that Lin Baicheng is cutting the leeks of "accepting additional stock investors", and he is cheating people.

It is different now to issue additional shares, and there will be a sharp rise in the stock price later. Even if the stock price falls below the additional issue price after a correction, it has nothing to do with Lin Baicheng, it is just a normal adjustment of the market.

What's more, there will be no less than 50 billion Hong Kong dollars in profits in the future. Even if there is an adjustment at that time, the stock price of around 70 Hong Kong dollars is likely to be supported. Even if there is an adjustment, Hutchison Whampoa will not adjust too much. Most investors are unlikely to lose money.

After finishing talking with Shen Congee, Lin Baicheng went back to Hutchison Whampoa.

At the close of the stock market that day, Hutchison Whampoa's stock price rose to HK$88.79 at its highest price on the day, and closed at HK$84.62 in late trading, an increase of 26.36% on the day. The company's total market value was nearly 338.5 billion Hong Kong dollars.

If the market value is calculated according to the highest price, the total market value of Hutchison Whampoa exceeds 350 billion Hong Kong dollars.

Knowing the stock price trend that day, Lin Baicheng knew that he, Bao Yugang, Huo Yingdong and others had bought a lot of stocks with a principal of 24 billion Hong Kong dollars today, and they should have sold a lot today.They had discussed in advance, and when the stock price of Hutchison Whampoa rose to 85 Hong Kong dollars, they began to sell the stocks slowly.

Lin Baicheng and the others don’t think that this wave of stock price rise will end only at HK$85. The reason why they sold at this price is that there has been a considerable increase compared to their purchase price, and their principal is 24 billion. Hong Kong dollars cannot be sold out in one day, so they should be sold in advance.

On the Yum Securities side, Lin Baicheng asked Anyuan to wait for the stock price to rise to 90 Hong Kong dollars before slowly selling.

It’s okay if the stock price in this wave doesn’t rise that high, Lin Baicheng can completely let Yum Securities wait for the next wave of Hutchison Whampoa’s stock price to rise sharply before selling, and there is no need to rush to sell.

That night, Lin Baicheng and Iwasaki Mineryu took Lin Baicheng's private jet to Tokyo.In Japan, the funds of Bailong Commercial Club still need to be handled by Lin Baicheng himself. After all, it is hundreds of millions of dollars, not a small amount.

After arriving in Tokyo, Lin Baicheng separated from Iwasaki Mineryu, and he went to Seiko Matsuda by car.

Before going to Tokyo, Lin Baicheng contacted Momoe Yamaguchi and Seiko Matsuda, but he only got in touch with Seiko Matsuda, Momoe Yamaguchi couldn’t get in touch. After that, he still contacted Chiba Nanako to find out that Momoe Yamaguchi was not in Tokyo. Went to Osaka.

There is no mobile phone yet, so we can only contact by landline phone, which is very inconvenient.

(End of this chapter)