The Son of Finance of the Great Age

  Chapter 126 Changing hands (1)

   Just when Zhong Shi was planning a big move in the United States, Hong Kong's acquisition of Huade Real Estate also experienced twists and turns.

  First, Standard Chartered’s acquisition team made waves in the stock market, repeatedly speculating on Huade Real Estate’s stock through different accounts, which increased its trading volume and attracted the attention of the market.

  You must know that the stock market in Hong Kong is a bit strange, that is, T+0 trading and T+2 delivery. To be precise, stocks bought on the same day can be sold on the same day, which is very different from the trading rules in the Mainland. Naturally, the mainland set up a T+1 trading model to prevent wanton manipulation of short-term funds.

The T+0 trading mode is not surprising. Most of the developed capital markets in the world are in this trading mode. The strange thing is the T+2 delivery mode, which means buying stocks on the same day and delivering them within two working days at most , In these two days, there are many articles that stock holders can operate.

For example, let’s say you buy a stock worth 100,000 yuan, but you don’t necessarily need 100,000 yuan in cash in the stock account. Often, in order to ensure the normal completion of the transaction, securities firms need the account to be at least 100,000 yuan in cash during this period. It is necessary to reserve a certain amount of funds, which is about 30% of the transaction volume, which is 30,000 Hong Kong dollars.

This is a bit like futures, but the time before the delivery is a bit short, but in the eyes of professionals, such rules can undoubtedly be greatly utilized, coupled with the T+0 trading mode, it can definitely make the trader skillful Some people play stocks like futures.

The people in the Acquisition Department of Standard Chartered cleverly used this rule to leverage three times the market value with a small amount of funds, making the stock price of Huade Real Estate like a roller coaster in the last one or two months of transactions. A plot change.

However, this kind of behavior is obviously manipulating the market. If it is detected by the Hong Kong Securities and Futures Commission (SFC), it will definitely be a sky-high fine, and some specific executives will be prohibited from entering the market for a certain period of time, which is even more serious. The most likely thing is to revoke Standard Chartered's financial advisor license.

Therefore, in the preliminary preparations for this acquisition, in addition to its own trading seats, Standard Chartered also used the positions of other brokerage seats. In terms of accounts, it prepared a lot of scattered accounts. Naturally, the natural persons of these accounts were opened by Standard Chartered in advance. Greetings, and those legal person accounts may be registered on a small island in the Caribbean Sea, making it impossible for SFC to check.

The strangest thing is that the board of directors of Huade Real Estate did not have the slightest vigilance against the inexplicable fluctuations in the stock price. On the one hand, this is related to their arrogant mentality, and on the other hand, it is Zhao Jiajie, a coward, who actually warned Zhong Shi in person When they wanted to acquire their family business, they didn't tell the truth about the situation.

  He knew he had run into a catastrophe, but he still had a fluke mentality. In his heart, he still couldn't believe that just a few words of offense would lead to the fate of being acquired. Since the last gathering, he has started to pay close attention to the changes in the stock price of his own property, which at least shows that he is not a pure **** yet.

The senior management of the Zhao family, especially Zhao Jiajie's father, Zhao Shixiong, the helm of the Zhao family, was very pleased, thinking that this potential successor had also begun to learn to care about the business of the family business, and even in his heart, he planned to live another life. For a while, Zhao Jiajie was asked to take charge of a small subsidiary company.

  Unexpectedly, Zhao Jiajie and Zhao Shixiong, who were still kept in the dark, knew that a takeover battle against their group had quietly started.

  Although Zhao Jiajie observes the stock market every day, how can he see the profound strategies of these investment banking departments with his meager skills? At most, he could only see that his company's stock price suddenly soared inexplicably at a certain time after the New Year. Without knowing it, he thought it was a good thing, so he didn't take the acquisition matter to heart, but in fact he But it missed a good opportunity for anti-acquisition.

You must know that it is entirely possible for Huade Real Estate’s board of directors to prepare a set of anti-acquisition strategies when they know that someone is acquiring money. Taking the stock market as an example, they can completely raise the stock price during the early stage of the other party’s fund-raising process, and then Sell ​​a part, and then absorb the sold share back when the other party is shaken. In the process of going out and entering, Huade Real Estate will have a lot more capital gains, and it will also allow the other party to pay a greater amount. cost.

   What is even more severe is to invite the team of an international investment bank when you know the other party's acquisition intention, such as the team of a major international investment bank with rich experience in M&A business like Goodman and Stanley. If the other party buys in cash, although it may not be able to save the company in the end, at least it can be sold at a price that is enough to satisfy most people. And if it is a leveraged buyout, whether the buyout is successful or not is another matter.

  You must know that the capital market in the 1980s was basically dominated by buyout funds and bond funds, especially the buyout business, which produced many classic cases of snakes swallowing elephants. Often a buyout fund joins with a bond fund, especially a junk bond fund, and through highly leveraged financing, can swallow a large company with a market value of billions of dollars. After swallowing such a company, these buyout funds, through restructuring and packaging, Sell ​​the company's business item by item, and get out unscathed after maximizing profits.

In fact, before Soros creatively made a profit of two billion US dollars in 1992, the holder of the highest annual income on Wall Street was the junk bond king Michael Milken, and most of his income that year was obtained through mergers and acquisitions. Obtained by issuing junk bonds.

  Junk bonds refer to those bonds issued by companies rated BB by S&P or Ba by Moody’s and below. These bonds often have a higher risk of default, but the yield is correspondingly much higher than that of ordinary bonds.

  It's a pity that Zhao Jiajie's momentary cowardice made such an opportunity go away in vain, so that later on the board of directors of Huade Real Estate, Zhao Shixiong was also dismissed by many directors using this as an excuse.

After two months of preparatory work, Standard Chartered’s acquisition department began to work on Huade Real Estate. Various rumors of De Real Estate began to spread. Although the management of Huade Real Estate claimed many times that the company's current business and management had no problems, it still couldn't change the daily large-scale selling.

Under such circumstances, the first reaction of ordinary investors who hold Huade Real Estate is to clear their stocks, which strengthens the panic in the market to some extent, and once this sentiment spreads, it will It's hard to stop.

The stock of Huade Real Estate fell one after another. Although Huade Real Estate announced a stock repurchase plan, the stock price continued to decline after a short stay. Downward volume still shows no sign of shrinking.

  The board of directors of Huade Real Estate is suffering and cannot tell. Although they want to spend some cash to support their confidence in the market, they have not absorbed much bargaining chips at all during the period when the stock price fell. Not only that, especially the lack of preparation when the stock price rose in the early stage, at this time they don't have much cash reserves to put in the market, which makes them very in a dilemma.

  The board of directors and management were at a loss, but on the side of Standard Chartered, repeated position swaps and stock price suppression were in full swing. They have now absorbed more than 20,000 lots of stocks, which is not far away from the 50,000 lots that were raised.

"What's the situation now?" In an office building in Central, Zhang Jiaqiang stood in front of the floor-to-ceiling windows and looked at the Huayin Building not far away, asking seemingly casually, but the slightly twitching corners of his eyes betrayed his real heart.

Under such circumstances, it seems that the chances of winning are in hand, but unexpected situations may occur at any time, for example, a certain fund jumps out to attract funds. After all, Huade Real Estate is a company with a complete business structure, sufficient profit expectations, and good development prospects. . It's not surprising that this happens, but it will ruin their plan to absorb chips.

"There are not many chips in the market, but there is no problem in absorbing 50,000 lots. Oh, by the way, there is a fund that wants to sell the Huade Real Estate Fund in their hands. It is said that they are now looking for buyers in the market." The cocky female secretary replied solemnly. Her name is Li Mingli, and she is an assistant to the M&A Department of Standard Chartered Bank. Although she has a very hot figure, all traders dare not look at her. Not long after she came to work here, most people realized that she was a workaholic and a professional legal person. Once, a usually flirtatious trader just inadvertently touched her little hand, and was almost charged with sexual harassment.

Li Mingli came here to help Zhang Jiaqiang. As a junior assistant in an investment bank, they are basically workaholics, and sometimes they even need three all-nighters, but their work is often meaningless, mostly paperwork, and 100%. Ninety-nine of them will be denied by the superiors, but this is their job. It's like when Lehman Brothers went bankrupt in later generations, the junior assistants were still working overtime the night before the bankruptcy, and the company was gone the next day.

   "How much do they have? How much is the price? If it's moderate, eat them all!" After a flash of excitement on Zhang Jiaqiang's face, he ordered as if nothing had happened.

  Different from listed companies, publicly offered funds need to announce their net value every day. If the net value fluctuates too much in a short period of time, it is likely to cause redemption by investors. This fund must have placed a heavy bet on Huade Real Estate. The price drop of the heavily held stocks during this period also put a lot of pressure on the fund managers. As a last resort, they could only release the shares of Huade Real Estate in their hands.

  Li Mingli nodded, indicating that she had written it down.

   "In addition, let people spread the word that as long as the price is reasonable, we can buy all the shares of Huade Real Estate." Zhang Jiaqiang said that we are naturally the party to the acquisition.

   Thank you book friends for drawing a knife and breaking the oil, and heaven and earth for my monthly ticket support! Thank you for poisoning you thousands of times, making me think about it, porridge killing people! At the same time, thank you for the evaluation vote of Meteor in the Black Sky!

  (end of this chapter)