The Son of Finance of the Great Age

  Chapter 291 Internal Purge

   I have to say that Tianyu Fund is very efficient. By the time Zhong Shi returned to his office in Central, a report on borrowing stocks from a broker had already been placed on his desk.

  Because the Hong Kong Stock Exchange allows brokers to make the market, many large brokers are also shareholders of listed companies. For example, the largest brokerage firm, Peregrine, is a major shareholder of more than 20 listed companies. In this case, these market makers can lend their stocks to short sellers in the long-term optimistic situation.

  Although brokers compete with institutions, they themselves are a channel. As long as you use their brokerage channel, you will incur fees, and generally speaking, part of the interest generated by the account of the short seller will be intercepted by the broker, and this part of the interest will be used as the cost of selling the stock.

   However, in the case of a sharp drop, it is very likely that the market makers themselves have become victims of the short-selling mechanism, as long as the stock price they lent falls below the average price at which they opened the position. But sometimes brokers are not so stupid as to allow the Air Force to wantonly suppress the stock price. In fact, many market makers will do some small tricks behind the scenes, such as raising the stock price before the expiration date of the loaned stock, forcing short-selling Those who can't close their positions, or they can manipulate options or warrants contracts, and use correlation to make profits.

"According to our requirements, many brokerages can provide a small amount of short-selling quota for heavyweight stocks, but in terms of red-chip stocks, the quota for short-selling is significantly higher. Obviously, brokers are not very optimistic about the outlook for red-chip stocks." At the time of this report, Maxim, who was in charge of the Hong Kong fund, reported respectfully.

  Because the performance of the previous few people in charge of the Hong Kong fund was not very optimistic, Zhong Shi had no choice but to downgrade them to researchers. Originally, this level of conversion was very embarrassing for a fund manager who had already climbed to a high position, but the return on investment of the flagship fund was so amazing that most of these people became ordinary researchers with peace of mind, and only a few people endured it. Those who resigned angrily at this level of decline, of course, had their share here redeemed accordingly.

  Zhong Shi glanced at Maxim, his expression unchanged, with a noncommittal look.

  Next, Maxim analyzed the situation of other sections, among which the real estate section focused on the analysis, revealing in his words that he wanted to cash out the shares of his heavily held Huade Real Estate.

"No!" Zhong Shi categorically denied, "Other shares can be cleared or even shorted, but Huade Real Estate cannot be moved, because this is me... No, this is the only bright spot that we can exist. Believe me, with With good development prospects and huge cash reserves, Huade Real Estate will not experience excessive fluctuations."

   Under the excitement, Zhong Shi almost blurted out that Huade Real Estate is his property, but luckily he corrected his mistake in time.

  Maxim looked at Zhong Shi suspiciously, and resisted not to refute. In fact, he had long objected to holding such a large number of Huade Real Estate shares, but since Zhong Shi said so, he couldn't do anything more. Although there is no direct affiliation between the two parties, Zhong Shi's order has long been an inviolable order.

"Well, as long as the amount of Huade Real Estate you hold does not change, I will not take into consideration the performance between now and next year. It is all your fund performance. As long as you don't lose to the market index, you will be considered Qualified. What do you think?" After thinking for a while, Zhong Shi felt that such a mandatory order was not conducive to the operation of the fund manager, so he set an extremely loose condition for Maxim.

According to the development of later generations, the Hong Kong stock market will start to plummet in the future, and until September 1998, the entire Hang Seng Index will fluctuate violently. , Fund share will not appear too much change.

  Compared with Zhong Shi's near-miraculous performance, other fund managers of Tianyu Fund feel great pressure all the time. Fortunately, Zhongshi's requirements for them are not high. Generally speaking, as long as they don't underperform the market, they can pass the test. Sometimes they can even pass the test without underperforming the inflation rate.

  Hearing Zhong Shi’s words, Maxim’s face was overjoyed. In September, he made a lot of money by shorting stock index futures. Now he still retains some positions. According to Tianyu Fund's internal analysis, Hong Kong is about to face the impact of international speculative capital. In this case, the Hang Seng Index will definitely fall. According to Maxim's analysis, outperforming the market in the future will definitely not be a problem. Under such circumstances, he has gradually shifted his focus to stock index futures, but his largest holding, Huade Real Estate, makes him a little uneasy.

   Now that the burden he thought was a burden was also removed invisibly, he suddenly felt a burst of relief.

  …

   On the second day, apart from the researchers who were still outside, an extremely rare all-staff meeting was held within the Tianyu Foundation. With all the personnel present in Hong Kong, Zhong Shi delivered a speech at the meeting.

"According to our internal analysis, we believe that international hot money is about to attack Hong Kong. Although it is not clear how the attack will be, although we have also analyzed this, according to our research results, it is unanimously believed that the Hong Kong dollar is not likely to depreciate."

"This means that international hot money, including hedge funds, is very likely to return without success, and may also lose a fortune in the exchange rate market. But what we can analyze, they will also analyze. In the event of losses, they will insist on attacking Hong Kong, and the meaning of it can be imagined. In other words, they have the ability and methods to ensure that they will earn back their losses in the exchange rate market, and there will even be a lot of Big profits, otherwise they wouldn't do such thankless things."

"Then the question is, which market will be the focus of their attack. Our judgment is that the Hang Seng Index market is the focus of their attack, and the exchange rate market is just an important supplement. The market and related warrants and options markets make more profits than the exchange rate market. There is no need to say more about the connection between the two.”

"The topic of today's meeting is for everyone to choose, because we have no intention of entering the Hong Kong market in the short term. This is mainly related to regulation. We do not want to be exposed to the regulation of any market at this time. Because once our performance is exposed, There will be unprecedented accusations that we cannot afford at this moment."

  As soon as Zhong Shi’s voice fell, there was a burst of commotion below. Obviously, most people couldn’t understand Zhong Shi’s approach. Regardless of the discipline announced before the meeting, they began to whisper to each other, and the whole venue was filled with buzzing voices.

   Regarding this situation, Zhong Shi did not stop it. He just exchanged glances with Ma Jiarui and waited patiently. This reaction was naturally within their expectation.

   After five full minutes, the discussion gradually died down. The researchers talked for a long time on their own, only to find in astonishment that Zhong Shi hadn't finished all the words. This discovery made them realize that Zhongshi will definitely have a follow-up story. Most of them have a thought in their minds, that is, they are not calm in the face of interests, and they are also very enthusiastic. Compared with Zhong Shi, the cultivation of xinxing is a judgment call.

Zhong Shi didn't have the time to think about what these guys were thinking. After the discussion quieted down, he continued: "Of course, I won't stop you from getting rich. Except for the staff of the Hong Kong Fund, others may rely on their own judgment. Choose to go long or short the Hong Kong market, but we will not provide corresponding judgment and analysis. If you are lucky, you may make a fortune, but if you are unlucky, you may lose everything.”

"Because our fund is not involved in the Hong Kong market, all your actions in the Hong Kong market are personal actions. From today on, discussions about the Hong Kong market will be limited to the Hong Kong fund and its researchers. Anyone else touching this article The red line will be warned, or even handed over. We don’t want our colleagues to be punished and arrested for insider trading. And the Hong Kong fund will move out of here tomorrow and go to another place.”

"Also, we will not intervene, provide analysis, or stop the Hong Kong market. Any actions will be your personal investment actions and have nothing to do with Tianyu Fund. In addition, while you are focusing on the Hong Kong market, don't forget Your main work, that is, the analysis of the economic situation in the Asia-Pacific region."

   Speaking of this, Zhong Shi paused, and after scanning the audience, he said meaningfully: "I believe you will understand the trade-offs."

  After speaking, Zhong Shi got up and left directly, without giving the researchers a chance to ask questions. Immediately afterwards, a group of high-level personnel also filed out, and no one had the intention to speak. Although all of them had solemn faces, they looked quite calm. Obviously, they already knew about Zhong Shi's decision.

  After the crowd left, the remaining researchers in the conference room looked at each other, and no one said a word for a long time. Obviously, the news shocked them too strongly, so that they needed to digest it.

   At the same time, the employees of the Hong Kong Fund began to tidy up the room, packing the Bloomberg terminal and other items. Within the next year, they will work in another place.

  …

   "Don't understand?" Andrew had been sitting in Zhong Shi's office for a long time. He wanted to ask Zhong Shi several times, but he swallowed the words.

Zhong Shi smiled, glanced at Andrew who was scratching his head, lit a cigarette, and then said casually: "You won't understand, our enemies are not those hedge funds, they can still follow the rules of the market Come and act. This time we are going to face a group of people who don't follow the rules at all, so take advantage of this time to remind the internal forces that are about to move, and don't wait until the guys from the ICAC come to the door."

   Thanks to book friends Romantic Snail, Mouse Flying, God's Solitude, Mystery, and irvinwj for voting monthly! The second update will be released later, I wish you all a happy Dragon Boat Festival holiday in advance! At the same time, don't forget to vote for Ha, thank you!

  (end of this chapter)