Rebirth of the Financial Crisis Sweeping the World

  Chapter 116 116 earned 40.5 million Hong Kong dollars

   Back home, Wang Guanxi leaned against the bed, lost in thought.

  Acquired a model company today, and Wang Guanxi's layout for the future has gradually begun.

  He is short of money now.

  There are still three months. On September 14, the subprime mortgage crisis in the United States will detonate the financial crisis sweeping the world. By that time, you can make a lot of money by shorting 10,000 lots of the Hang Seng Index.

  In normal times, if you short 1 lot of the Hang Seng Index, banks, futures companies, and securities companies all provide 10 times leverage, and investors need a deposit of 100,000 Hong Kong dollars.

  Short 10,000 lots, you need 1 billion Hong Kong dollars margin.

  Wang Guanxi does not have a 1 billion Hong Kong dollar margin, so it is necessary to apply for a leverage of 100 times.

  He consulted Feng Shaokun, as long as the account fund is below 200 million Hong Kong dollars, he can apply for 100 times leverage with Wing Hang Bank to short the Hang Seng Index!

  In the case of 100 times leverage, you only need a margin of HK$10,000 for one lot, and a margin of HK$100 million for a lot of 10,000.

  More than 200 million Hong Kong dollars, it only provides 10 times leverage.

  After all, the higher the capital and the higher the leverage, the higher the risk. Banks are also worried about being affected by investors with huge losses.

   "Step up to make money"

  "Make the capital 200 million Hong Kong dollars first"

  "Part of the funds over 200 million Hong Kong dollars can be used to invest in high-tech companies, or can be injected into the global Jiyuan Group!"

  Now he has shorted BYD Electronics Group, with a loss of 35 million Hong Kong dollars in his stock account, and his net worth is only 135 million Hong Kong dollars.

  It’s a little far away from 200 million Hong Kong dollars.

  Wang’s Venture Capital Foundation has invested in many high-tech companies.

  Solomon Technology Company, 20% of the shares, locked in a return of at least 1 billion Hong Kong dollars.

  Energy-saving Electronics, 25% of the shares, locked in a return of at least 800 million Hong Kong dollars.

  Xianxing Electronics, 30% of the shares, locked in a return of 1 billion Hong Kong dollars.

  Changhong Semiconductor Company, 20% of the law, locked in a return of 700 million Hong Kong dollars when it went public. If by 2020, it will be at least 5 billion Hong Kong dollars in return.

  Jingke Energy, with a 35% stake, locked in a return of 400 million US dollars.

  Raidco Electronics, 50% of the shares, locked in a return of 120 million US dollars.

  But this is a long-term investment that lasts for several years. If you want to securitize your assets, you have to wait for the company to go public.

   Then he opened the stock chart of BYD Electronics Group.

  This week, its share price plummeted for two consecutive days, from 14.00 to 6.50. It seems that the fall is about the same. It will fall again tomorrow. The share price of BYD Electronics Group must rise.

  Why should it rise?

  Because the American Fidelity Investment Group must increase its holdings at a low level.

  As the share price of BYD Electronics is at a low level, HSBC International Trust Company will reduce its cash out or temporarily stop cash out.

  So Wang Guanxi will have to close the position tomorrow anyway.

  Thinking of this, he was a little excited.

  After all, he is plucking his hair at the US Fidelity Investment Group and HSBC International Trust Company at the same time.

  The next day, June 11, Wednesday.

  The stock market opens.

  HSBC International Trust, Jiang Quangang instructed: "Continue to sell today!"

He knew that the American Fidelity Investment Group was waiting for the opportunity to buy shares of BYD Electronics Group, so he would continue to cash out. Once the American Fidelity Investment Group increased its holdings, he would stop cashing out and let the American Fidelity Group raise the stock price. They cash out again.

  ··

  And the Hong Kong branch of American Fidelity Investment Group, Si Xiuliang ordered: "We will enter the market when the shorts in the market are exhausted."

  Looking at the trend chart of BYD Electronics Group, he opened his mouth and said: "When the stock price drops to the 5.00 position, start to increase its holdings."

  "Yes, President", several traders who are responsible for operating the BYD Electronics Group are waiting for them.

  The two major institutions are conceiving ghosts, and Wang Guanxi, a large retail investor, is also watching the stock closely for fear of missing the best opportunity to liquidate.

   Twenty minutes later, the stock price fell to 6.00 under the sell-off of HSBC International Trust.

  After receiving support for a short time, the stock price fell below the 6.00 position, which immediately caused a large number of retail investors in the Mainland to stop losses.

   "MD, this old man was still floating last week, and he lost money this week. I knew I should retreat last Friday, greedy!"

  ··

  You must know that these retail investors bought at the 10.00 position, and now they have lost so much, many people choose to cut meat.

  However, these retail investors have a small amount of funds, and they sell stocks, which also caused the stock price to fall to 5.80.

  At the moment, Wu Zhanhai of Wing Lung Securities Company has a gloomy expression. He holds 4 million shares in his account. The average price of opening a position is at 12.00. The loss per share is 6.2 yuan. Now it has a loss of 24.8 million Hong Kong dollars.

  He hates it in his heart. When he saw the American Fidelity Investment Group saying that it would increase its holdings of BYD Electronics, he wanted to come in and get a share of the pie. He never thought it was a big pit.

  The major shareholder of BYD Electronics Group, HSBC Trust is selling stocks!

   "MD, I just don't close the position!"

  Wang Guanxi shorted BYD Electronics Group last week. At that time, the stock price rushed to 14.00 and the account lost 40 million yuan. Wang Guanxi could resist it. Why couldn't the funds?

   is to carry it on!

  He will not cut meat easily.

  Wang Guanxi is entangled in whether to close the position. If it is too late and the American Fidelity Investment Group starts to buy the bottom, the stock price will definitely rise up, and his account will lose a lot of profits.

  But after thinking for a while, Wang Guanxi intends to close the position at 5.50!

  In a flash, the stock price finally fell to 5.50, Wang Guanxi started to liquidate the position without saying a word.

  1 million shares!

  1 million shares!

  1 million shares!

  ···

  Because Wang Guanxi is a short position, when the short position is closed, he buys the same number of stocks in the market.

   Soon the stock price rushed to the 6.40 position, and Wang Guanxi immediately suspended the liquidation.

  He only closed 5 million shares.

  As for HSBC International Trust, Jiang Quangang felt that this was an opportunity to continue to cash out, so he ordered: "Continue to close the position!"

  "Yes, President" traders continue to sell stocks.

   Soon the stock price fell to 5.50 again.

  Wang Guanxi once again closed the position crazily.

   still the same!

  1 million shares!

  1 million shares!

  ···

  The stock price was once again pulled to 6.40 by Wang Guanxi.

  Finally finished.

  His average closing price is at 5.95, earning 4.05 Hong Kong dollars per share, 10 million shares, making a total of 40.5 million Hong Kong dollars.

  "I closed my position early this time. I should have dared to close the position before the US Fidelity Investment Group increased its holdings!"

  It is true. At the moment of Fidelity Investment, Si Xiuliang frowned. The share price of BYD Electronics Group fell to 5.50 twice, and there was a U-turn increase. Perhaps other longs increased their holdings, or shorts closed their positions.

   "President, do we want to increase our holdings now?" the assistant asked.

  "No hurry, you must wait until the stock price drops to 5.00 before increasing your holdings." Si Xiuliang thought for a while: "HSBC International Trust will also sell stocks, so we just wait."

   "Yes, President"

  (End of this chapter)