Started from Hong Kong Island

Chapter 243 [Stock Market Bottom Picking]

Tuesday, March 12

The Hang Seng Index of the stock market has reached 153 points and the downward trend is still continuing, leaving some investors who are waiting and watching in despair. The top management of listed companies are also helpless and can only allow the stock value to drop.

Li Wendi hung up the call from Wu Xiong and fell into deep thought. He remembered that early December was the lowest point of the stock market, which was a good opportunity to enter the market. However, it now seems that the lowest point may be even lower.

Ten minutes later, Li Wendi made up his mind that he must enter the stock market as soon as possible and use part of the funds to buy at the bottom.

Arriving at the trading hall of HSBC, Li Wendi looked at the constantly changing stock prices on the blackboard and felt a little depressed. It seemed that he would suffer a loss if he bought at the bottom now.

"Mr. Li!" Wu Xiong walked up to Li Wendi and greeted him.

"Mr. Wu, the market conditions today are very bad!" Li Wendi said with emotion, and then said, "The Hang Seng Index of 153 points should be the lowest point in the past three years, right?"

"Yes, 150 points may not be maintained. Some people are very pessimistic and think it will fall below 100 points." Wu Xiong said with a gloomy face.

The sluggish stock market has made these traders feel very uncomfortable. There have been rumors of "layoffs" in the HSBC trading hall. The staff are all worried and want to pretend to be diligent, but unfortunately there is no work for them.

These words made Li Wendi frown. 150 points and 100 points, that's a huge difference. The stock price is going to lose almost one-third.

However, Li Wendi's memory shows that the lowest Hang Seng Index in 74 was around 150 points. Even if there was a "butterfly effect", the gap would not be so huge.

Li Wendi was a little conflicted, but in the end, the confidence in his memory prevailed.

"Mr. Wu, I'm going to enter the market to buy at the bottom." Li Wendi said to Wu Xiong.

Wu Xiong was a little surprised. He was silent for a while and said, "Mr. Li, the stock market situation is very complicated. The Hang Seng Index has dropped by more than 9%, and there is less than 1% left. I personally think it has reached the bottom."

"Withdraw 3000 million from my account and buy blue-chip stocks, except Wharf Holdings and China Gas," Li Wendi gave the order.

The top management of Wharf Holdings has already developed a fear of Li Wendi. Buying Wharf Holdings shares at this time is tantamount to adding fuel to the fire. Now they need to let Jardine Matheson Company relax its vigilance and wait until 77 or 78, when Li Wendi will make his next move. By then, the financial resources should have increased by more than two levels.

As for the shares of China Gas Company, Li Wendi was even more reluctant to touch them because his only competitor, Li Zhaoji, was still acquiring other real estate and construction companies to expand his strength and had no energy to pay attention to China Gas Company.

"Yes!" Wu Xiong nodded. "There are a lot of scattered shares in the current stock market. You can buy large shares. You should be able to buy all of them before the market closes tomorrow. Mr. Li, do you plan to divide the 3000 million funds equally among the 34 blue-chip stocks?"

Li Wendi stroked his chin and thought for a while. The share price of Hutchison Group had dropped to 1 yuan, but after Willis' asset restructuring, it would merge with Whampoa Dock Company to form Hutchison Whampoa Company next year. The share price would inevitably rise sharply, and making ten times the profit would be a piece of cake.

"Mr. Wu, are there many scattered shares of Hutchison Group on the stock market now?" asked Li Wendi.

Wu Xiong thought for a moment and said, "A lot! Before, HSBC provided Hutchison Group with 1 million yuan in funding, and the stock price was already not doing well. Although shareholders have some hope for the new boss Willis, they dare not gamble."

"Okay! Help me buy 2000 million shares of Hutchison Group alone. This amount of money does not involve the 3000 million mentioned earlier." Li Wendi certainly would not miss such a good opportunity. When Wu Xiong heard about investing 5000 million in the stock market, he couldn't help but roll his throat, "Mr. Li, do you need to reconsider it?"

That's a lot of money, especially during a bear market.

Li Wendi shook his head and said, "No need to think about it anymore. The stock market has almost hit bottom. There is no need to wait any longer."

"With the other 3000 million yuan, help me focus on buying blue-chip stocks of Chinese companies, such as Hang Lung Properties, New World Development, Cheung Kong Holdings, and also buy 500 million shares of Hopewell Holdings for me." Li Wendi gave further orders.

The share price of Hopewell Holdings has dropped to 0.43 yuan, and 500 million shares only cost a little over 200 million yuan.

According to the memory of the previous life, Hopewell Holdings began to slowly recover in 75 under the management of Hu Yingxiang, and the stock price once rose to more than 3 yuan. So Li Wendi could make nearly 9 times the profit, which is not much worse than Hutchison Group.

Hearing the name of Hopewell Industrial Company, Wu Xiong was even more shocked. None of the companies that have fallen to the bottom now are as "powerful" as Hopewell Industrial Company. It has fallen from a peak of 30 yuan to a few cents now. To put it in an exaggerated way, "shareholders can use the certificates to wipe their butts."

"Mr. Li, don't you remember the fake stock incident of Hopewell Industries?" Wu Xiong reminded.

Li Wendi smiled and said, "Of course I remember. It was the first company to be found to have fake stocks. It wasn't that Hopewell Industries was fraudulent. It was just that it was unlucky. Now I am very optimistic about Hu Yingxiang, the boss of Hopewell Industries. Hopewell Industries will not continue to be depressed."

Seeing that Li Wendi understood the whole thing, Wu Xiong stopped talking and just discussed with Li Wendi the issue of the quantity of blue-chip stocks to be bought.

Changxin Real Estate Company
Zhang Wentao held a document in his hand, and spread it out. "Boss, the financial situation of Mingcheng Real Estate Company has been checked out. There are no hidden accounts. The funds in the account can still maintain the normal turnover of the company. The problem is that the assets are insufficient to cover the debts and there are difficulties in repaying the interest."

"If we take over Mingcheng Real Estate Company, it will cost at least 500 million just to solve the debt problem. This is the money needed to restore Mingcheng Real Estate to a relatively normal operation. I am afraid that the subsequent funds will be more."

"Based on the property prices at their peak in 73, what is the asset value of Mingcheng Real Estate Company?" Li Wendi asked thoughtfully.

"That still needs to be calculated." Zhang Wentao hadn't expected such a question. "According to the current market price, the assets are around 3000-4000 million."

Li Wendi multiplied the asset value by 2, which is about 6000-8000 million. This market value is already very good. Using about 1500 million of funds to leverage a company worth tens of millions is considered a good investment project.

"Now that we have understood it clearly, let's get started." Li Wendi made the decision.

"Boss, maybe we can talk to Wu Lixing, the boss of Mingcheng Real Estate Company. If he is willing to sell the company, we can save two to three million." Zhang Wentao suggested.

Li Wendi shook his head. Mingcheng Real Estate Company is not Luckin Coffee, and Wu Lixing is not Wen Tianhe. If Wu Lixing is alarmed, the acquisition may fail. It's just two or three million, so there is no need to take such a risk.

"No need, we'll start directly from the stock market. If we don't have enough shares, we'll contact those small shareholders."

"Yes!" Seeing that Li Wendi had made up his mind, Zhang Wentao stopped persuading her.

(End of this chapter)