Reborn as the youngest son of a chaebol, let's get to know his sister-in-law!

Chapter 116 Crisis and Breakthrough! (still 4000+ chapters, two in one)

As soon as Li Xiangyu finished speaking, Kim Ri-tae was furious: "You still have the face to say these things, if you didn't operate carelessly today, why would the young master be so passive?"

Li Xiangyu smiled bitterly: "It's all my fault, so I blame myself and regret inside."

He looked at Chen Daojun helplessly: "Master, please let me finish my sentence, I want to make amends."

"I'll only give you 2 minutes. If you don't have any useful information, keep your mouth shut!"

Chen Daojun looked at his watch, meaning that he can start now.

Li Xiangyu's expression didn't look like he was pretending to be eager, and Chen Daojun didn't mind giving him a chance.

Li Xiangyu was sincerely grateful: "Thank you, then I will make a long story short."

He stretched his neck and coughed: "The key chance for us to turn defeat into victory is that the institution made a big mistake!"

mechanism?

Chen Daojun's eyes were fixed, and he and Kim Ritae looked at each other: "Go on."

"Please turn on my computer and find out the details of Sakata's stock transactions in these issues!"

Li Xiangyu signaled his colleagues to turn on the computer: "This is how I understand it. Excluding the factors of retail investors, repeated see-saw is like a fueling tactic. It consumes a lot of funds and there are many variables. I believe that no normal trader will do this. The short side should have almost the same strength as ours, if he is really strong enough and has enough chips, he will definitely carry out the fight to the end!"

The essence of shorting is to bet that the stock price will fall. Therefore, after shorting Sakata, institutions like Yuan Chuan will use various means to spread unfavorable news about this stock in an attempt to suppress the stock price for profit.

Now, many institutions represented by Yuan Chuan have released bearish news in the market, indicating that they have already entered the market.

It doesn't make sense to have funds in hand, so you don't just smash through the floor to scare off Xiao San, but let the stock price rise, putting yourself at risk of liquidation.

Kim Ri-tae nodded: "I agree with this. The short side was really powerless at the beginning, but recently the chips suddenly increased. How do you explain this?"

Li Xiangyu leaned on the table, and he was very excited about the problem he found: "Yes, I didn't figure it out at first. Normally, the bargaining chips of institutions are equal to ours, and the stock price only depends on our trading. Until I just recalled According to the data, except for us, the buying orders of securities companies are far lower than the selling orders this time. After conversion, institutions and securities companies bought 10 shares in the market, but they got close to 50 shares out of thin air, which is extremely unscientific!"

"I see, they are 'naked shorting', right, how did I not think of that!"

Kim Ri-tae slapped his head, as if waking up from a dream.

EGL’s brokerages have the function of borrowing stocks. Institutional short selling is to ask the brokerage to sell the stock at the current price first, and then buy back the stock at a low price in the stock market at a later time and return it to the brokerage.

If the broker happens to have this stock in hand, it will borrow it directly, if not, it will buy a share from the market and lend it to the institution.

The institution pays the brokerage fee or interest to the brokerage, and when Sakata’s stock price falls to a certain price, the institution will buy a share in the market and return it to the brokerage, and the transaction will be considered completed since then.

Li Xiangyu's meaning is obvious. According to the normal short-selling method, the theoretical maximum short-selling ratio is 100%, that is, institutions use all the outstanding shares in the market for short-selling at most.

The reason why institutions in the market have suddenly increased their short-selling chips, even exceeding 100%, is because of the emergence of "naked short selling".

"I have also stayed in an institution before. What Xiangyu said is not wrong. In fact, when a securities firm lends stocks to an institution, it does not lend out in a timely manner. Instead, it will be transferred to the institution three days after the lending is initiated. Under the name." Li Yunhao added.

No matter whether the brokerage has stocks or not, the institution can first borrow the stock from the brokerage with an IOU, and as long as the IOU is issued, the trading market will show that the institution holds the stock and can also sell it.

But in fact, it will take three days before the name of the institution will be written on the stock. At this time, as long as the institution buys the stock on the market and returns it, the account can be balanced. This operation is called "naked short selling".

"Then the three-day gap period is very learned." Chen Daojun frowned.

Obviously, "naked short selling" can create a lot of transactions out of thin air, and there is no upper limit in theory.

Institutions often use this trick to short-sell stocks with very poor liquidity, because the stock price is based on the latest transaction price.

Therefore, once the institution "naked short selling", it will spread bad news about the stock even more crazily, causing the stock price to fall even more, so as to make itself more profitable.

"If this is the case, then Yuan Chuan and the newly joined organization have been hyping so wildly recently, it is justifiable!"

Under the introduction of Jin Ritai, Chen Daojun understood the specific operation.

The Emotional Yuanchuan Institution uses the method of issuing IOUs to borrow stocks in virtual terms, and then smashes the market crazily.

Institutions only need to pay up to half of the margin to lend double the stock, and even as long as they have money, they can continue to borrow. As long as the stock price is successfully suppressed, they can easily buy stocks at a low price. Unknowingly go back.

"Good method! Then we have no choice but to admit defeat?"

Chen Daojun vaguely caught something, but he didn't think clearly, he motioned to uncuff Li Xiangyu's handcuffs, and moved a stool for him.

Li Xiangyu flexed his wrists and sat in the middle of the office. He was a little uncomfortable being surrounded by everyone for the first time, but now he needs a more detailed explanation to ensure that everyone understands his thoughts.

"Master, not only stocks, but even futures. Institutions will use 'naked short selling' to operate under special circumstances, but this is a double-edged sword, and the most feared encountering a 'short squeeze'."

Since "naked short selling" is so easy to operate, why don't most institutions do it this way, because the risk is too great!
The stock price goes up and down. If the stock price does not fall but rises after the short sale, the institution can only buy the stock and close the position with the brokerage after the stock price soars.

And the closer the delivery date is, the more eager institutions will be to buy stocks, the more the stock price will rise, and the more short-selling institutions will suffer.

This is the so-called "short squeeze".

However, if an institution like Yuan Chuan insists on holding on and refuses to close its positions, and has to wait until the stock price falls before buying stocks and delivering them to the brokerage, then the brokerage will not be happy.

The stocks I bought with the money I spent so hard, you borrowed them with a margin?
How can there be such a good thing in the world?
Therefore, brokerages who dream of guaranteed income in drought and flood must make delivery with the market within the specified time. If the institution suffers huge losses and cannot deliver in time, the brokerage will worry that it will be dragged into the water, so every time the brokerage lends stocks, it will charge a certain margin.

For example, institutions such as Yuan Chuan shorted Sakata, borrowed stocks from a brokerage at a price of 100 yen and sold them, and paid a deposit of 50 yen.
Soon after, the stock price rose to 120 yen. If the institution buys stocks and closes the position at this time, the institution will lose 20 yen. This loss is still within the scope of the margin, so the broker can wait.

But once the stock price rises to 150 yen, the loss of the institution reaches 50 yen, which is equal to the margin.

At this time, the brokerage will not wait any longer, and will force liquidation and delivery regardless of whether the institution is willing or not.

"Master, as long as there is a 'short squeeze', the institution will definitely not be able to withstand it!"

After listening to Li Xiangyu's words, Kim Il Tae nodded slightly, but sighed again.

"But we have no bargaining chips. Now that the institutions have suppressed the stock price, it has not yet reached the psychological price. Wait half an hour after the market opens, and the institutions will continue to smash the market. The price may plummet. Xiangyu, you only thought of it now, it is too late!"

"Master, tomorrow will be three consecutive days of holidays, and the stock market will be closed. As long as you can hold on this afternoon, everything will be fine. Can you make money?"

Even though Li Xiangyu had thousands of plans in his mind, he had to wait until this afternoon.

Everyone turned their attention to Chen Daojun, after all, he is the boss, hoping that there is something he can do?
Chen Daojun's expression froze, after all, it was still a matter of bargaining chips!

A confident smile appeared on his face: "Everyone think about it, I'll make a call."

Everyone looked at the back of Chen Daojun picking up his mobile phone and closing the door, feeling faint expectations in their hearts.

The voices of everyone talking to each other were much lower, for fear of disturbing Daojun.

They didn't know that Chen Daojun's face collapsed as soon as he entered the door.

As the boss just now, he must not be weak in momentum, but now he is alone, and he collapsed on the sofa, scratching his scalp.

There is no rush for the money that will arrive the day after tomorrow.

This afternoon, just one afternoon, who can help himself?
He even thought of contacting Chen Yangzhe, believing that with his grandfather's face, it would be no problem to get money here in Tokyo.

But in that case, the involved area is too wide, not to mention that all the layout on my side will be leaked.

There is no guarantee that my own strength will not be known by my family, and many plans will be several orders of magnitude more difficult by then.

It's not that Chen Daojun feels sorry for the two or three hundred million dollars, he's just unwilling!

After all, it is a battle in a different place, and the conditions are still restricted. A Sakata was forced to this by the organization.

Chen Daojun's competitive spirit was aroused!

……

Before the stock market opened, Chen Daojun opened the door of his office and came out.

Facing a pair of nervous and expectant eyes, he said with a smile: "You don't need to do anything this afternoon!"

"???"

Chen Daojun said seriously: "I just talked with the chairman of Sakata Company on the phone. In order to save my own fate, Mr. Tanaka of Sakata Company will hold a press conference at the same time as the stock market opens to announce the repurchase of shares!"

"That guy in Tanaka, didn't the industry say he was so difficult to deal with? He was actually persuaded by you."

Kim Il Tae murmured, "How did you do it?"

"Is it that difficult? He is actually very polite to me."

Chen Daojun couldn't help laughing when he thought of Tanaka's tone that changed from arrogance to panic on the phone just now.

In fact, Sakata does not have that much money, and the so-called stock repurchase is just a gesture.

Isn't it just telling stories, as long as someone listens and believes, it's fine!
Hearing that Sakata Company was going to hold a press conference, the media came to hear the news like a shark that saw blood.

Sure enough, Tanaka, who was full of wrinkles, was a good hand at mobilizing public opinion. He called the seven largest shareholders in the company and preached the company's corporate culture in public.

Of course, these are all drafts he memorized, but the literary talent is not bad, at least the reporters on the scene nodded repeatedly.

Immediately afterwards, he announced together with the seven shareholders in an almost desperate gesture.

Not only will the company spend 137 billion to repurchase shares, but they will also personally support the company with their own pockets, vowing to live and die with the company.

In fact, no matter how much they repurchase, they have no psychological pressure.

This kind of performance has been staged too many times when employees in the company are clamoring for a wage increase.

It's just a change of rhetoric.

They also don't want the company to be delisted just like that. After all, they have shares, the company is still there, and their status is also there.

As long as we get through this delisting turmoil, Tanaka will lead everyone, and we will still invite you to banquets, drink wine, and dance!
The media is not interested in what kind of person Tanaka is, they are only responsible for reporting the news.

The fastest move was the radio station bought by Chen Daojun, followed by forums, TV programs, and newspapers.

CLA once again called on everyone to support Sakata.

The enthusiasm of retail investors to buy is very high, coupled with the press conference of Sakata Company.

After a set of combined punches, even the empty side was a little confused.

Under normal circumstances, there have been several fights.

The short side understands that the strength of the multi-party should not be underestimated, but right now there is no financial backing for the multi-party.

On the contrary, there are a lot of small orders with dozens or hundreds of hands, which is very wrong, and it does not resemble the style of many parties at all.

As long as you are a normal person, you will suspect that there is something tricky in it, and whether the multi-party is preparing to counterattack at a low price.

The short side tentatively placed some orders, which were quickly eaten by retail investors.

For a moment, he didn't dare to act rashly.

Without long and short handwriting, retail investors cheered up, and Sakata's stock rose all the way from 75 to 84.6.

Binzhong Tainan originally thought that he had enough chips and was already a surefire winner.

Until Hidechu Sato called him to ask for instructions: "Minister, Sakata Company announced the repurchase of stocks. There are many loose orders for the stocks. The current situation is a bit uncertain. Shall we hold off?"

Binzhong Tainan was directly annoyed and laughed: "Pause? I am indeed."

Before he finished speaking, Tomohisa Yamashita, a senior Sumitomo official, pushed the door in: "Hinaka, the chairman is looking for you, please come with me!"

Binzhong Tainan knew that trouble was coming. The company might have found something about his unauthorized participation in copper futures trading. He pressed the phone on the table: "Can I finish this call?"

"Sorry, the chairman asked me to take you there right away, please don't make things difficult for me!"

Yamashita Tomohisa didn't give face as before, and said with a stern face.

"Crack!" Binzhong Tainan stared at him angrily, and hung up the phone helplessly: "You bastard, let's go!"

On the other end of the phone, Hidechu Sato heard half of what he was listening to, but no one answered the calls afterwards.

In desperation, he can only choose the most conservative way, stay put and do nothing to reduce costs!
It took three hours for Binzhong Tainan to go.

When he heard that the stock price did not fall, he scolded Sato angrily all night.

On Wednesday, May 5, Constitution Day, the market will be closed.

Thursday, May 5th, Green Day, closed.

May 5, Friday, Children's Day, the market will be closed.

Plus two days on the weekend.

Chen Daojun got a rare five-day respite.

The funds he transferred from outside finally arrived.

But the real winners and losers are often outside the stock market.

(End of this chapter)