Rebirth of the Financial Crisis Sweeping the World

   Chapter 53 53 Short 27.5 million shares of Hengda Automobile

  Wang Guanxi was very happy to go back at night.

  Wang Yongyi’s Xiansixing Electronics Group has a market value of at least HK$4 billion in the future. Even if his shares are diluted to 25% during multiple financings, he can still obtain shares worth nearly HK$1 billion.

  4.5 million Hong Kong dollars, in exchange for 1 billion Hong Kong dollars in return, this investment is very good.

  After taking a shower at home, Wang Guanxi lay on the bed and still couldn't sleep.

  Then he browsed the stocks of various listed companies.

   Soon he found a listed company, this company is an automobile company under the mainland giant Hengda Group, Hengda Automobile Group (empty rack).

  Currently, the stock price of Hengda Automobile Group is 1.00 Hong Kong dollars per share. It is still rising. The total share capital is 8.8 billion, and the market value is now 8.8 billion Hong Kong dollars!

Wang Guanxi clearly knew that the stock price of Hengda Automobile would soon fall. By November 2008, the share price of Hengda Automobile Group had fallen to 0.10 Hong Kong dollars per share, and its market value had shrunk from 8.8 billion Hong Kong dollars to 880 million Hong Kong dollars. Fell to the lowest level.

  Of course, Wang Guanxi will not wait until November. He is making quick money, and the time for shorting varies from a few days to two weeks.

   looked at the information of Hengda Motors again, and he muttered: "With this Hengda Motors, bargain hunting is still possible in the future."

  Hengda Auto’s share price fell to 0.1 yuan per share in November 2008, and it has been in a downturn for a long time. However, in the future, its stock price will reach tens of Hong Kong dollars per share, with a market value of up to 250 billion Hong Kong dollars.

  But that is the distant future. Wang Guanxi will not go long in its stocks now. After 14 years, he can try to buy bottoms and hold for a long time.

  He remembers that Hengda Automobile started taking off in 14 years.

  It’s only 2008, and there are still 6 years to go.

  "Hengda Auto’s stock price is 1.00 Hong Kong dollars per share, and my capital is 33 million. Although it may still rise, now is a good time to go short."

If it waits until it rises to the highest level, there will be very few buying orders in the market at that time, and he will not get much buying. Therefore, it is best to go short when the stock price of Hengda Auto is strong, because the trading volume is particularly large at this time and the market There are a lot of buying orders on the list, so Wang Guanxi can eat them.

  He immediately decided to short Hengda Motors from tomorrow!

   But short, not barely short.

  There are usually two short selling methods.

  First, you need to borrow stocks from brokers to go short. The Yongheng Securities Company, where Wang Guanxi is located, may not have so many Hengda Motors stocks to lend him.

  Second, you can also sell short stocks. The problem is that Hengda Auto does not open short shorts. In short, short selling is not supported.

  For the stocks of Penguin Group, it supports short selling!

  And Hengda Auto’s stock does not support short selling!

  So Wang Guanxi wants to go short, only through the first way.

  So Wang Guanxi called Feng Shaokun of Yongheng Securities Company overnight.

  The call was connected soon.

   "Mr. Wang, what's the matter with you calling so late?" On the phone, Feng Shaokun was taking a shower and was about to sleep, but he didn't expect to receive a call from Wang Guanxi overnight.

  Wang Guanxi bluntly said: "President Feng, I plan to short Hengda Motors and I need Hengda Motors stocks worth 33 million yuan."

   "33 million?" Feng Shaokun was also stunned on the phone, borrowing 33 million Hengda auto stocks?

  They Wing Hang Securities Company does not have so many Hengda Motors stocks to lend to Wang Guanxi A, and they need to borrow from other brokers.

   "Mr. Wang, we Wing Hang Securities does not have so many Hengda Motors stocks, but I can borrow them for you"

  Investors borrowed a listed company’s stock from a brokerage firm, and then the investor began to short the listed company’s stock, and then returned the same number of stocks within the agreed time.

  This short-selling method is actually a bet against brokers. As the stock price rises, the stocks held by the brokers rise in value, making money and earning commission interest.

  If the stock price plummets, the broker will lose money, and the commission and interest earned are not enough to offset the loss.

  Because naked shorts are not allowed, so this model, in essence, investors shorting stocks is a gambling on securities firms!

  Wang Guanxi's investment is so strong, Feng Shaokun dare not let Yongheng Securities Co. bet against Wang Guanxi.

  Feng Shaokun then asked: "Mr. Wang, do you think the stock price of Hengda Motors will plummet in the future?"

  Wang Guanxi smiled and said: "Well, I think it will plummet, so I should make it short."

  Feng Shaokun: "Okay, I will borrow it for you tomorrow, and you will come over at noon"

  They Wing Hang Securities Company also holds some shares of Hengda Motors, worth hundreds of thousands of Hong Kong dollars. If the stock price of Hengda Motors really plummets, these stocks held by Wing Hang Securities Company will also lose money.

  He planned to sell the stocks of Yongheng Securities Company when Wang Guanxi shorted the stocks of Hengda Auto.

  The next day, April 3, Thursday, at noon, Wang Guanxi came to Wing Hang Securities Company, signed an agreement, paid the commission, and interest.

  Wang Guanxi got the stock.

  Pan Hengda Auto’s share price has risen to 1.10 yuan per share this morning, which is a strong rise.

  Opening in the afternoon, it continues to rise.

  Wang Guanxi sold crazy!

  100,000 shares!

  100,000 shares!

  200,000 shares!

  500,000 shares!

  1 million shares!

  ···

  At the same time that Wang Guanxi sold, Wing Lung Securities Co., Ltd., the securities department under Wing Lung Bank.

  The third-generation son of the Wu family, Wu Zhanhai shouted: "Buy me the stock of Hengda Auto"

  This morning, Wing Lung Securities borrowed shares of Hengda Auto to short-sell customers of Wing Hang Securities.

  If Hengda Motor’s stock price plummets, their Wing Lung Securities will lose money.

  Now they continue to increase their holdings of Hengda Motors stocks, against which of Wing Hang Securities’ short-selling customers.

  This time they will not only charge interest and commission, but also stabilize the stock price of Hengda Auto, or even raise it.

   "Yes, manager!"

  So several operators started to buy, and while consuming all the stocks Wang Guanxi had sold, they also pushed up the stock price.

  Time passed in a flash.

  Hengda Auto’s share price has rushed from 1.10 yuan per share to 1.30 yuan per share.

  Wu Zhanhai is very satisfied.

  Wing Hang Securities borrowed the shares of Tianye Liushui Company last time to short the investors, and this time borrowed the shares of Hengda Auto to short the investors.

  Last time, Tianye Flowing Water Company suddenly broke out in a large-scale accident. The 600 million investment floated, causing Tianye Flowing Water Company's stock price to plummet. Their Wing Lung Securities suffered a terrible loss, and he also lost a lot of money in his own private account.

  This time is different.

  Which short-selling investor must be exhausted, not only must he keep paying interest, but also short-selling and losing money.

  ···

  While Wang Guanxi’s average selling price was 1.20 yuan per share, a total of 27.5 million shares were sold, with a loss of 0.1 Hong Kong dollars per share, and a temporary loss of 2.75 million Hong Kong dollars in his account.

  　 Hengda Automobile Group (empty rack).

  (End of this chapter)