Reboot 2003

Chapter 215 Chapter 123: Thunderstorm (two in one)

"welcome."

Goldman Sachs has a bald head - of course he used his talents to register an account seriously and replied to Chen Aotian of Galaxy Software in Chinese, showing off the demeanor of a Wall Street elite.

At first, Chen Aotian seemed to be quite popular, but this time he was ridiculed unanimously on the Internet...

After all, there seem to be a lot of unfavorable rumors about him and his company recently, including some involving judicial risks, which is a bit like a street rat.

But at the same time, some people say that this matter has something to do with Goldman Sachs. Goldman Sachs is selling non-performing assets to Tianchao Bank. No one knows what the non-performing assets are yet, but Goldman Sachs’ entry into China is from the first step. Under the spotlight, watched by countless eyes, this news naturally attracted the attention of many people at the first time.

“What happened to Goldman Sachs?”

"Is it true that Goldman Sachs sold bad debt to Chinese banks?"

It is said that Chen Aotian answered, but quickly deleted the content of his answer.

People who eat melons are very angry, and more and more people are gloating: "You buy it, and remember to send pictures to show everyone after buying it."

Since he was not sure whether the person was joking or not, the person who asked the question had the intention of teasing him, but to his surprise, the person really agreed: "Okay."

Does he really want to buy it?Someone else asked: "How much do you want to buy?"

Buying [-] million is buying, and buying [-] is also buying. Although buying [-] short stocks just to post Weibo is stupid, but buying [-] short stocks is indeed a bit boring.

As a result, Chen Aotian said: "200 million US dollars."

Unexpectedly, there was a specific number, which was very interesting. Netizens on Weibo started discussing with each other, and immediately a group of knowledgeable people began to educate everyone about what short selling is, what methods and restrictions there are, of course, these things are just tools, tools Not important in itself.

The important thing is that he plans to short Goldman Sachs because of his personal grudge... It's not impossible. After all, no matter what kind of company, there will definitely be losses if the market value drops, and short selling means selling equity notes with a time limit and redeeming them when the time comes. , will directly cause the equity to fall directly within the period. From the results point of view, shorting the stock can indeed cause losses to the listed company, and rounding is equivalent to winning.

"Boss, do you really want to short Goldman Sachs stocks?"

"Do you need an investment project? Bro? Listen to me and don't spend money randomly..."

"It's only 200 million. Isn't this a good leverage?"

The next day, people from the company came to ask about the situation, and a group of people came to watch the fun on Weibo. It seemed that this matter had received more attention than expected.

After all, this matter is indeed a bit difficult to understand. In any case, investing in stocks is used to make money. Shorting the stock itself requires an additional decline in the stock to make a profit. Goldman Sachs’ stock price rose by nearly 40% last year. Last year’s financial report was just released. It's also too beautiful to look like a human being.

In this case, shorting Goldman Sachs, isn’t this seeking death?

For investors, knowing that there are short sellers on the scene means that this stock will have a definite taker. No matter how fast it rises, when a certain period of time is reached, the short seller will buy the stock, and then the stock will rise again. A wave... This in itself is good news for bulls.

Sure enough, someone fanned the flames the next day. In addition to some people trying to take advantage of the situation, quite a few traders came to Twitter to watch the excitement. There are always a lot of fools in the investment field. Now someone revealed his short-selling plan. This is not for anyone. Do you guys give money?
However, the parties concerned still did not intend to give up... Chen Aotian interacted cordially with netizens. During lunch the next day, Ji Xianglin's email came:

"I followed your request and directly shorted 200 million Goldman Sachs shares."

Mr. Chen made a request: “Take a screenshot and send it over.”

"Okay, besides, if you start building a position now and proactively disclose it, you may be badly hurt by the bulls."

"It doesn't matter, just let it run and you hurry up and put the report in order."

"It should be completed within three days, but are you sure this will work?"

"Just do it."

Ji Xianglin didn't ask any more questions, but Chen Qin hadn't gone home yet. He sent an email to the traders in the investment department, asking them to post the news to his Weibo account quickly. The trader also hesitated and said: "Boss, this way You will be squeezed out."

"Let him rise!"

Chen Qin didn't care at all and asked the trader to post the news to his personal social network account. In fact, someone may have seen it now. Goldman Sachs stock seemed to have fallen a little, and then immediately rose back up. Right here. At that time, Chen Aotian sent a picture. The picture was a third-party online exchange interface, showing that he had purchased a short position of 200 million.

There was no reaction in the market, but perhaps after hearing the news, Goldman Sachs' stock price began to rise. At this moment, Mr. Chen, the party involved, seemed not to care about the profits and losses of the projects he invested in, and even seemed not to care about it at all. Care about this.

Many relevant people started to get involved. Mr. Sun of Galaxy Software came out to repost it, which was vaguely meant to give a platform to his subordinates.

As a party involved, of course you can’t be idle...

"Lingling, how many fans do you have on Waibo.com?"

"Now there are [-], which seems not as high as Getai.com."

"I mean Waibo.com, the overseas one."

"I'm not using that one. Last time when my father was embarrassed by that big bald man in Lin'an, the company's manager and teacher told us not to use overseas websites for the time being."

"Oh... that's okay, but do you still have your account number and password?"

"The account is still there, but I'm not allowed to speak. The same goes for everyone else."

"Then you have to go and give me a thumbs up, the one I posted today that I was short on."

"I can do it, but others don't know if it can be done..."

"Don't worry about the others. I'll tell them later. Just go out and click."

"it is good……"

An investment of 200 million is not low, but Mr. Chen doesn't seem to take this matter seriously.

Not only did he have no intention of avoiding risks, but he also secretly mobilized contacts to expand the number of people paying attention to this matter.

So on that day, Goldman Sachs' stock price rose by 3 percent. Some people even began to wonder whether this person was a trader that Goldman Sachs deliberately hired to raise the stock price. Chen Aotian continued to post on Weibo, saying that the exchange required him to pay back the margin today. , it doesn’t look fake...

The sarcasm and gloating were as constant as ever, but the attention he wanted was gradually enough.

On the third day, the number of relevant reports began to increase, and the relevant reports were even sent back to China.

"Young people seem to be very interested in discussing boring financial transactions on social networks."

"Yesterday the madman Chen Aotian claimed on his official account that he wanted to short Goldman Sachs stocks..."

"Chen Aotian forcibly shorted Goldman Sachs, and the floating loss exceeded 5% in three days..."

The media and institutions will be more objective. Many investors have begun to thank Boss Chen for giving everyone money. When he is a short seller in the market, the more the stock rises, the more losses he loses as a short seller. He lost 3% of his money on the first day. Tian is also losing money one after another. It seems that he has been kicked on the iron plate. Retail investors are willing to follow up to compete with him and cut him off...

On this day, Chen Aotian responded to a netizen's inquiry on Waibo.com, saying that he had not closed his position, and then he advised netizens as usual: "If you follow Goldman Sachs, aren't you afraid of taking over at a high position? Goldman Sachs's credit management is very problematic. If Goldman Sachs If there is a thunderstorm, you will all be in trouble."

The audience disagreed: "Boss Chen, your 200 million is too boring. Why not add some leverage?"

Boss Chen calmly said: "The market is irrational and I will not increase my position for the time being."

Someone was unconvinced and replied in machine-translated Chinese: "You are the one who is irrational. Now we have made a lot of money, but you are the loser."

Boss Chen retorted: "Of course I have my reasons. Now that Goldman Sachs is engaged in a large number of low-credit transactions, I think Goldman Sachs will definitely fall."

"What a low-credit transaction, you tell me!"

This is what Boss Chen is waiting for.I threw out a report with my backhand. The report was still warm. It contained 12 pages of content, which was not much, but it did answer the questions asked.

Then, before retail investors could understand what the report meant, Goldman Sachs' stock price fell in response, down 3% that night. Only then did the public react...

This is a short report!

For retail investors, short selling stocks is not a good choice at any time. After all, this product itself often needs to be paired with other things to be effective.

For example, with hedging, although stocks are relatively unstable, using short stocks to hedge risks is one of the most common hedging methods today.

But there are other things, like short selling reports.

Today, short-selling institutions specializing in China have not yet appeared, and people in China are still unfamiliar with this trading method, but in today's Meilijian, such institutions are not uncommon——

For investors, market profits often come from stock selection, timing and overall market conditions. However, investing in stocks cannot be completely regarded as digital speculation. If the public's profit expectations for a company can be directly reversed through some third-party survey information, then Of course, the stock price will fall sharply, allowing short institutions to make a lot of profits.

This time, Chen Aotian seems to have used this method. He first actively stated that I wanted to sell short, you can do whatever you want, and then issued a report.

Although I don’t know why, the short-selling report came a little late. He came out as a living target and let a group of retail investors enter the market, and then threw out the short-selling report...

So far, he himself has not made any money.

The 200 million short position is still in hand, and Goldman Sachs' stock price is still slightly higher than at the beginning.

On the contrary, a group of retail investors who took over the orders from high positions were trapped.

So that night, another group of retail investors continued to scold Boss Chen. Many media had also focused on this matter. Some third-party analysis institutions reminded retail investors that the stock price fluctuations of Goldman Sachs in the past few days were completely normal fluctuations. , there is no evidence that the short-selling report published through the blog has any real use, and everyone is asked to invest rationally.

"The report states that Goldman Sachs has recently invested heavily in derivatives related to some 'low-documentation' and 'no-documentation' credit."

"And like HSBC, which has recently run into credit problems, it operates a large amount of off-balance sheet commercial paper with serious credit problems."

"According to the investigation, these financial instruments themselves are quite common in the market. Although some experts believe that they have certain risks, it does not seem to have the persuasive ability to prove that Goldman Sachs' stock price will fall..."

But there was a vague commotion in the market.

People who care about this matter are beginning to understand the meaning behind those difficult financial terms, and the sudden decline of Goldman Sachs's stock seems to represent some unspeakable danger signs...

"Old Chen, I know what you are going to do."

That night, Chen Qin was having a meeting with several people from Galaxy Software. Gu Wenjie, who had previously been confused about what Chen Qin was doing, suddenly took the initiative to find him.

"What do you know?"

"We are not shorting the stock price of Goldman Sachs, we are shorting the real estate credit industry." Gu Wenjie said, "You have produced so much evidence this time. The information itself cannot prove that Goldman Sachs' stock will fall, but it can prove that the CDO will default, and then explain that Goldman Sachs’ stock price will go down… No, Goldman Sachs’ stock price never mattered in the first place!”

Gu Wenjie spoke happily, but Chen Qin just said: "That's only half correct. How about the matter you were asked to investigate today?"

"What's the other half?"

"You will know when the time comes, but first tell us about the investigation."

"Okay, today I went to find a broker I know and asked about it. Look at this document..."

After speaking, he sent two documents. When he opened them, he found that they were indeed what Mr. Chen needed——

"Goldman Sachs has at least three companies operating CDO business. Since last year, they have recently been continuously transferring the CDOs held by the company to these companies."

Gu Wenjie also explained it himself, and a manager asked: "Normal business divestiture, or risk isolation?"

"It's probably risk isolation." Gu Wenjie said, "Send this up quickly. Even if there are no problems with their own operations, these two items are enough for them to drink a pot."

Gu Wenjie didn't get the answer and was a little worried, but he was still confident. That night, the report was also sent out. The release location was also on Chen Aotian's personal blog. It felt a bit unofficial, but it was cooperative. The financial media also received submissions, which will probably be published in newspapers soon together with the previous short selling report.

However, early the next morning, Goldman Sachs' stock price rose again, up 2%.Seeing this, some of the onlookers felt a little annoyed: "So this is actually a normal fluctuation in the market. The financing report you issued is wrong. It's just a ploy!"

Boss Chen explained to him again, talking about credit abuse and the like. When many people saw this, they recalled the drama last year: "Isn't this the same problem that the congressman said? At that time, You are preaching to others that there are structural problems in the financial market, and the government has announced that it will continue to stimulate the market. Why are you still saying this now!"

Thinking about it carefully, it’s true. Now that Chen Aotian has to explain again, more people are impatient: “So you spent 200 million US dollars shorting Goldman Sachs, do you think he will care about you? They are a large company with a market value of hundreds of billions, and you have no money at all. Even if the water splash can’t make a splash, I really want to say that you are bearish, so why don’t you add more positions?”

Boss Chen was dissatisfied, saying that the policies of the George W. Bush administration had not saved the credit market. At this point, most people had lost interest.

However, Boss Chen seemed to be really 'fooled'. "How much position do I need to add? I'm pretty sure Goldman Sachs' stock is going to fall, but I don't have much spare money anymore."

A foreign netizen who majored in finance suggested: "You can use mortgage to repeatedly sell short. I know there are institutions willing to undertake this kind of business..."

Ten minutes later, Boss Chen took some pictures and sent them up: "Okay, I doubled the leverage and shorted Goldman Sachs."

This……

The disapproving audience was still disapproving, but also a little frightened.

200 million... add twice the leverage, it's still 200 million, but it's like mortgaging the principal twice.

If the profit will be higher in the future, the previous losses can be earned back faster, but the losses will also triple, which is equivalent to increasing the capital to 600 million. Of course, it is a bit ridiculous compared to the assets of Goldman Sachs, but for an ordinary person It's no longer a small amount of money.

Isn’t he afraid that Goldman Sachs will continue to rise?
More people could not understand his thoughts. Some of the retail investors holding stocks in their hands also started to cheer. Some were still sarcastic as before, and some began to discuss it privately.

There was still no movement from Goldman Sachs. Everyone was waiting for the opening of the New York Stock Exchange the next day. Amid much attention, Goldman Sachs opened soaring 5% the next day.

"Is this an institution entering the market?"

The retail investors were relieved for some reason. It was normal to think about it. The short-selling report was not a paper tiger. However, Boss Chen's short-selling report was not very convincing and exposed himself. It seemed that it could only become nourishment for big companies.

At this point, everyone began to sympathize with him. Some professional investors suggested that he close his position or at least give away his leverage. Boss Chen seemed very stubborn: "I have already paid the margin."

However, the stock market does not pity losers, and Goldman Sachs's stock continued to rise, rising another 2% in an hour.

The audience felt they couldn't stand it any longer, so they had no choice but to exit the webpage and open Weibo to play 1024.Most of them are white-collar workers, and it is quite interesting to be on Waibo.com. Compared with the recently popular Facebook, it is less popular, but for adults, the social pressure is not that heavy.

But the day continues to pass——

It's already dark in the sky, and the beautiful sun is rising. Boss Chen has stopped talking. I don't know if he jumped off the building.

By 11 o'clock, looking at the stock price, Goldman Sachs had already risen by 9%. This increase was obviously a bit unscientific for a company with a market capitalization of trillions, and it was even a bit scary.

The white-collar workers looked at the straight K-line and felt a little dazed. Although they bought most of the stocks and crushed the short positions, they also drank the soup, but for some reason, they felt a little hairy behind their backs.

The white-collar workers sitting in front of the computer are still paying attention to this matter. Some of them are flipping through the news, some are reading the web, and some hear a colleague making a commotion in the office. It seems that at the same time, someone seems to News that had nothing to do with it entered their field of vision at the same time.

"Hey, have you heard?..."

"Last year's annual report..."

"Loss..."

"It's because of the subprime loans that New Century Insurance Company went into trouble!"

(End of this chapter)