The Son of Finance of the Great Age

  Chapter 376 This deal is over

  For a scheming girl like Zhu Yiting, Zhong Shi naturally couldn't arouse any interest, not to mention that she might be Song Ling's eyeliner, which made him unbearable.

  After leaving Xiarun headquarters and returning to Tianyu Fund, Zhong Shi crossed his legs and watched the changes in the Hang Seng Index with great interest. Except for him, the other left-behind staff of Tianyu Fund were nervously selling Indonesian rupiah. Anyway, Zhong Shi did not issue an order to continue operating the HSI futures, so they were all busy with their own jobs.

  In the morning market, the Hang Seng Index opened at 9553 points, slightly higher than the previous trading day, and then rose slightly, reaching a maximum of 9579 points. This should be the rebound after Peregrine reached an agreement. However, this rebound did not last long. Soon, large-scale selling orders appeared in the heavyweight stocks such as HSBC, Changhe Industrial, Huaxin Pacific, and Sun Hung Kai. At the same time, there were also a large number of selling orders in the financial sector. The rebound was stopped instantly, and then the index began to fall steadily.

In the process of falling, especially the financial sector and the real estate sector, the stocks of the eight major real estate companies plus Huade Real Estate, the stock prices of these large real estate companies that account for more than half of Hong Kong's real estate are like comparisons, one by one. Terribly.

  Hua De Real Estate is not bad, because most of its profits come from the mainland market, and the company itself has sufficient cash flow and sufficient ability to enter the market to support it, so it only fell slightly by 1.6%, and then began to oscillate repeatedly. Other real estate giants, including Changhe Industrial, all fell by more than 6%. The astonishing rate made investors at a loss for a while, not knowing what happened, and there were even rumors that their financial statements might be fraudulent.

  Hong Kong’s housing prices are notoriously high, so most citizens cannot pay in one lump sum, only through monthly payments. In the past, due to the emergence of international speculators, the jobs and salaries of many citizens were greatly affected. Many of them stopped mortgages one after another, causing real estate companies to cut prices. The property supply has been stopped. Therefore, Hong Kong's real estate economy has been hit hard during this period of time. As long as there is a slight disturbance in the market, their performance will be the most violent.

  As for the financial sector, many banking stocks led by HSBC also fell by more than 7%, and the decline is far from stopping. Because of the news that the international speculators attacked again, the market is extremely pessimistic about their prospects for the first quarter. There are even rumors that due to the expected sharp increase in the overnight lending rate, the bad debts of these financial institutions will increase exponentially. Time will not only affect their profits in the first quarter, but the net assets column in the balance sheet may also shrink sharply.

  In short, because of the rumors that international speculators may appear in Hong Kong again, there are all kinds of opinions in the market, various news have been produced, and various expectations have naturally been formed. Of course, these expectations are basically bearish.

  Due to the plummet of financial stocks, other industries have also fallen. There is no way, after all, everyone depends on the bank to start working. In this way, under the influence of the financial sector and the real estate sector, the entire Hang Seng Index followed all the way to the bottom.

After the attack in mid-October, many hedge funds, including Tiger Fund, did not completely leave the Hong Kong market at all. They took advantage of the Hong Kong stock market plummeting to the lowest point of 8775 points and began to buy, adding more possible short positions. chips. The wave of slight rises that began in mid-November was the result of their continuous buying in the market.

   With the continuous inflow of funds, Hong Kong stocks rarely rose to a maximum of 11842 points during this period, but then began to oscillate, hovering between 10,000 points and 11,000 points.

   And this time, because international speculators have more chips in their hands, they can leverage the index without too much leverage. Therefore, although the intensity of the attack this time is not as fierce as the previous one, it is more resolute.

However, during the trading hours in the afternoon, just when people thought that the Hang Seng Index would continue to drop, there was a sudden change in the Hong Kong stock market. Red chips led by Huaxin Pacific suddenly poured in an unknown number of buying orders. On the spot, they started a hand-to-hand contest with the short sellers who were selling recklessly. The two sides almost fought for every inch of land, without giving in.

The situation that appeared on Huaxin Pacific quickly spread throughout the market. After investors came back to their senses, they discovered that not only Huaxin Pacific, but also state-owned companies such as Xiarun, Baoli, and Commercial Bureau bought A huge amount of buying has also emerged on one side, and the stocks of several of them have even begun to turn red to green, with a slight increase.

   "The central government bails out the market?" This is the general reaction of investors, and the news immediately began to boost the confidence of investors who had fallen to the bottom. For a while, they began to re-enter the market, ready to grab the so-called "rebound", not only the small and medium-cap stocks with poor liquidity, but even the stocks of large companies began to gradually have small purchase orders.

   Driven by the red-chip stocks, the market began to gradually recover lost ground. After all, the so-called international speculators attacked Hong Kong again is only a rumor, and now it seems that the central government has already made a brazen move. This may be an opportunity. The Hang Seng Index began to rise from the lowest point of 8928. Although the speed was very slow, gradually, the east wind overwhelmed the west wind, and the funds on the buying side began to overwhelm the funds on the selling side.

But in the most important stocks of more than a dozen listed companies, the seller's power has had the upper hand from the very beginning. Even with the impact of good news, the seller is still unwilling to give up half a step. Most of the listings are mainly small and medium-sized institutions, and there are almost no large-scale buying institutions. Therefore, even at the final closing moment, many small and medium-sized institutions and investors gathered still did not turn the index from red to green.

The final result is that although the Hang Seng Index rebounded due to the strength of the red chips, the market still fell on this day because the previous decline was too heavy. Fortunately, it only fell by a mere 284 points and closed at 9254 points , down less than 3%. In the face of many bad news such as bird flu, Peregrine's suspension of trading due to financial crisis, and the comeback of international speculators, it is extremely rare for the Hang Seng Index to only fall by more than 200 points.

  …

After a night and a busy day, at ten o'clock in the evening, the lawyer team of Peregrine, ZCI and Chicago First Group finally completed the final contract text. There are three language versions of these two documents. They are in English, Chinese and French respectively. Among them, the shareholding agreement and loan agreement between Peregrine and Chicago First Group are in Chinese and English respectively, and the shareholding contract between Peregrine and ZCI is in Chinese and French. Since there are four official languages ​​in Switzerland, namely French, German, Italian and Romance, French, which is the most rigorous and clearest, is the first choice for drafting contracts.

  The audit team and lawyer team of both parties first drafted a first draft according to their own ideas, and then revised it after communication. Finally, the three parties finalized the final text contract after three drafts.

  In this final contract, Peregrine paid ZCI a total of US$175 million for the purchase of bonds in its Asian market, and at the same time purchased a total of US$100 million worth of Peregrine preferred shares at a price of HK$5.75 per share. As for the Chicago First Group, it subscribed for preferred shares of Peregrine with a total value of 25 million U.S. dollars, and at the same time provided Peregrine with a loan of 60 million U.S. dollars in total to ease the liquidity pressure of the other party.

  When the news of the final drafting of the contract reached the ears of Nian Botao and Du Kanghui, both of them breathed a sigh of relief. A boulder that had weighed on their chests for a long time was finally removed, which made them feel very relaxed. After showing a knowing smile, Du Kanghui handed a glass of whiskey that had been poured long ago to Nian Botao, pretending to be relaxed and said: "Hey, buddy, everything is settled. Should we take it easy?"

   "Yes!" Nian Botao sighed, and replied with emotion, "The problem that has troubled us for so long has finally been solved, and it's time to celebrate."

After finishing speaking, he picked up the wine glass and put it to his mouth, but as soon as the crystal clear glass touched his lips, he hesitated again, "However, I always have a bad feeling, as if this matter is far from over. Even if At this stage, if there is no final signature, I still feel a little uneasy."

"Take it easy, buddy." Du Kanghui drank the spirits in his glass, and said with some unsatisfactory words, "Nearly, we have overcome the difficulties. Next, as long as tomorrow's shareholders meeting, in front of many shareholders and In front of the media, sign a few contracts, and all our problems will be solved. Dude, I am afraid that you have worked too hard recently, and you are inevitably a little suspicious. Let’s go to the sea to have a good time after this matter is over. Fan, take it easy."

   "Perhaps I was overthinking it." Nian Botao smiled, noncommittal to Du Kanghui's proposal.

  …

At 12 o'clock in the middle of the night on January 9, both parties finalized everything. The gold-plated contract text was rushed out overnight, and the huge check sample was also made overnight. Except for the signature column of Party A and Party B, other The places are completely filled, and all that remains is to go through the motions at the shareholder meeting.

  The teams of the three parties were exhausted. The red-eyed lawyers and auditors were the first to go back to rest, and then the relevant persons in charge also returned to the hotel one after another, waiting for the shareholder meeting tomorrow.

   "What? Huge fluctuations in the Hong Kong dollar? We stop lending to Peregrine?"

  At one o'clock in the morning, in the room of Larry Morris, the senior vice president in charge of the negotiation of Chicago First Group, the phone suddenly rang, breaking the tranquility of the night. Larry, who had just fallen asleep, with sleepy eyes, muttered to answer the phone, only to hear a news that shocked him so much that he woke up immediately.

"Yes, this news is from Quantum Fund. They have already begun to attack the Hong Kong dollar. It won't be long before Hong Kong's linked exchange rate system will fall. At that time, we may follow in the footsteps of Peregrine in Indonesia. Dragging down the entire group." The voice on the other end of the phone continued to explain.

"God! How could this happen!" Larry's eyes widened. He couldn't believe what he heard. He knew very well how Peregrine got to where it is today. Originally, he and Chicago First Group Thinking of taking advantage of the fire to loot, who would not think that the fire might burn themselves now.

"Maybe you don't know yet. Just now, Standard & Poor's announced that it will lower the credit rating of the Indonesian government to 'junk'. There are already two rating agencies that are not optimistic about Indonesia. If in the future, they also announced that they are bearish on the Hong Kong government , by then we may really be the next Peregrine." The voice on the phone was also full of sighs.

At this time, Larry was fully awake, stood up suddenly from the bed, walked back and forth in the room, thinking quickly about the follow-up reactions caused by these things, and after a long while, he gave a wry smile and said to the phone: "Now What does the board mean? Cancel the deal?"

"No!" The other side of the phone flatly denied, "It's not to cancel the transaction. After all, it is still unknown whether the Hong Kong currency can be destroyed. The board of directors means to cancel the loan contract of 60 million US dollars. The exchange rate risk is the greatest. Everything else can be business as usual, and the Hong Kong market still has great development prospects."

"What about our partner? Do we need to tell him?" The partner Larry mentioned is naturally ZCI. In fact, although they signed a shareholding contract with Peregrine, both parties are based on the other party's shareholding. basis, because it is possible to spread at least part of the risk.

  Now that ZCI wants to unilaterally divest, at least morally, it must inform the other party, otherwise it will definitely bear the reputation of abandoning business partners.

"You can decide for yourself." The other end of the phone continued, "But if they know about it and announce the cancellation of the shareholding agreement, then you should know what to do. This may cause a chain reaction, but I really can't care so much now .”

  Larry Morris let out a "huh" and hung up the phone. Then he stood by the window, thought and thought, and then picked up the phone and called his negotiating team one by one.

   "We want to cancel the emergency loan to Peregrine, so don't ask too much about why. Tell me, what do you think ZCI will do when it gets the news?"

  After calling everyone into his room, Larry ignored the complaints of these people and said straight to the point.

   "This deal is over!" Everyone in this room had such a thought in their hearts.

  (end of this chapter)