Rising from the age of thirty

Chapter 92: Cut off the Wan family together?

Short?

The domestic stock market does not traditionally allow unlimited short selling of stocks, but investors can indirectly achieve short selling through specific mechanisms.

Many people don’t understand that short selling means buying on a dip.

He Mei responded: "It is very complicated because there are many restrictions, and not all stocks can be shorted. Domestic stocks cannot be shorted. Of course, Hong Kong's Hang Seng stocks are different from those abroad."

"Brother Le, which stocks do you want to short, domestic stocks or Heng stocks?"

(I’m afraid, so I’ll replace it with Henggu.)
Lu Le's face was filled with visible disappointment, but he still looked it up. Wantong Company was a listed company there. What if...

"Henggu!"

Lu Le's mouth corners raised. Wan Hualin was destined to bleed this time.

Wantong Company is actually a Hang Seng stock. It makes sense because there are not so many restrictions in Hong Kong, it is highly open, there are a large number of investment institutions and investors, and the trading rules are transparent and standardized, which makes it convenient for the Wan family father and son to make money!
"That's much easier."

He Mei explained it.
In the Heng Stock Market, individual or institutional investors need to first open an account with a securities company that provides securities lending services and apply to open the margin trading function, which usually requires a certain credit rating and capital threshold.

Lui Lok: "Is this easy? I want to short a stock right now. I can't wait."

According to what He Mei said, it sounds troublesome to open a short selling account and have credit. It certainly cannot be done in one day.

Wan Hualin's status said that Wantong's stock price would plummet within a week. Lu Le guessed that it would be next week, because today is Thursday and tomorrow is Friday, and it should not be possible within one day, so it is most likely next week.

"Brother Le, don't be so anxious. Short selling will take more than one or two days."

"urgent!"

"Okay, which company is so unlucky that you've targeted it?"

"Wantong Company."

“Fuck, it seems to be the Wan family’s property, it belongs to the Wan Hualin family.”

He Mei was surprised.

Lu Le nodded with a sneer: "It's Wan Hualin Holdings. He's got into a fight with me. You know that now that I'm shorting his company, won't I make a fortune from him?"

"How sure are you?"

Bearish on a company?
In He Mei's opinion, it was a bit absurd. Unless something major happened to the company, the stock price would not fall much.

Moreover, short selling is very risky. If you are not careful, you may suffer huge losses.

"Seventy percent."

Lui Lok has learned his lesson. There is no need to be too sure about what he says. Even if the share price of Wantong is bound to plummet, he will not insist that it is 100% certain.

He Mei thought for a moment and asked, "When do you want to do it?"

"It's better to implement it tomorrow."

"I had a Henggu account before, and I can help you with everything."

"Really, that would be great."

"But Brother Le, have you really thought about shorting? Think twice before you act."

He Mei knew that Lui Lok didn't understand stocks, and she couldn't let him blindly short sell in order to target Wan Hualin.

"I've thought about it very clearly."

“How did you come up with the idea of ​​going short?”

"I personally think that Wantong is a shipping stock. In the past year, due to external influences, freight rates have fallen. It should not have a net profit!"

It's not just about having a net profit, it's a huge net profit.

If it weren't for the information from the system, outsiders wouldn't suspect anything at all!
Moreover, the financial fraud of Wan Hualin and his son should have been discovered by others. Once the report is made public, Wantong’s stock price will plummet and it may even face the risk of delisting, which shows how serious the case is.

"That's just speculation. Wan Hualin wouldn't be that bold!"

Lu Le smiled and said, "Who knows." Hey!
Wan Hualin is really not that big a person. Not only did he falsify financial statements, he was also involved in money laundering. Those anchors were forced to sign unequal contracts.

What a scumbag.

How to short?
It's very simple. To borrow stocks, you need to apply for short selling from a brokerage firm, that is, borrow stocks from a brokerage firm.

During this process, you need to sign a short selling agreement with the securities firm and pay a certain amount of margin as collateral. At the same time, short selling interest and other fees will also be incurred.

After obtaining the borrowed stocks, they are immediately sold on the market at the current market price, and when the price of Wantong stock drops, the stocks are sold back and returned to the brokerage firm.

The profit or loss of short selling is the difference between the price at which the stock was sold and the price at which the stock was bought when the position was closed, minus the cost of borrowing, handling fees, interest, etc.

Lu Le has already made a plan. Now the stock price of Wantong is three yuan and ten cents.

It will fall precipitously, by more than 1.5 yuan.

At this time, you can borrow stocks from the brokerage and sell them at 3.1 yuan per million shares. Then, when the stock price drops to a suitable level, you can buy back one million shares and return them to the brokerage.

Zheng Yusheng was curious: "Brother Le, I just looked at Wantong. Its momentum this week is pretty good, with more positives than negatives, and the stock price is very stable."

Now shorting Wantong? It’s not because you are stupid and have a lot of money!
What's the difference between that and giving money to others?

“Only on the surface.”

No matter how hard Zheng Yusheng tried, he would never have imagined that Wantong Company would encounter a catastrophe.

"Sister, how is the deposit calculated?"

"Just give me the deposit and everything. Just tell me how much you want to borrow."

"As many as you want?"

Lu Le couldn't help but breathe a sigh of relief.

He Mei's mouth twitched, and she was a little speechless: "Not really, it's not okay if it's too much, just tell me first, how much you plan to borrow."

If the price goes up, the more you borrow, the more you lose.

Securities firms are not fools either.

"Can I borrow 100 million shares?"

"More, more, how much?"

He Mei was driving and almost ran a red light. She was shocked and wondered if she had heard it wrong. Was it that crazy?
"Can I borrow 100 million shares?"

"Fuck, that much, are you crazy, do you really want to short it with all your strength?"

"You think I'm kidding?"

"Cough cough."

He Mei was really scared. The brokerage firm would not lend her such a large amount of money.

Zheng Yusheng added: "Wake up, stop dreaming. The brokerage firm can't borrow that much unless the margin is large enough. Do you think He Mei can get the brokerage firm to give in?"

It’s really difficult!

One of He Mei's college classmates has a family that owns shares in a securities company, and this account was also opened with him. His account has a very high credit rating, but with 100 million shares worth more than 300 million yuan, a deposit is really required.

Lui Lok: "One hundred million is not possible. Just do your best and borrow as much as you can. Loss? I have never considered such a thing!"

This statement shocked both people in the car. There were probably not many people in the entire mainland who were so crazy as to short Wantong Company!

Who is arguing with whom?

Where does Lui Lok get the confidence to borrow 100 million shares? He is determined to shock people with his words. 100 million shares are worth more than 300 million.

"Brother Le, I'll try my best."

(End of this chapter)