What's wrong with me being a rich man?

Chapter 183 181 Suspension
——Sino-Forest is collapsing!

——No, Sino-Forest has collapsed!
这是雅虎财经在2009年8月14日中午11点、11点30分前后仅隔半个小时所发布的两个新闻标题。

The largest private forestry company in the Northern Hemisphere!

Market value exceeds 50 billion US dollars!
Analysts previously believed that it might exceed 100 billion US dollars this year!
Not to mention being on par with any giant company, this scale is definitely not small. In particular, the traditional industry in which it is located has always been considered relatively stable, with no major fluctuations whether it rises or falls.

Now... this is truly an exhilarating high diving experience!
Moreover, unlike other similar incidents, this time the decline in Sino-Forest's stock price received a strong boost because the most well-known Paulson came out to support it.

Sino-Forest itself is not a solid fortress, and now an important major shareholder has defected. All funds that dare to stand on the opposing side will only end up being submerged.

The stock price fell so sharply that it was easy for people to have illusions.

——Fuck, this stock has fallen by more than 50%!
——It’s over 60%!
——70%!!
——With a 70% drop, it’s time to buy the dip, right? It’s impossible that there won’t be any rebound at all, right? !

Some retail investors who were attracted by the spectacular collapse looked at the price of Sino-Forest and felt as if they had grown greed in their hearts, especially when they saw the latest news and learned that Sino-Forest's founder Chen Deyuan was going to hold a press conference in Hong Kong late at night. They could not control their hands.

How about copying some and trying?
Logically speaking, it should have reached the bottom, right?

Whether out of simple experience or a sense of luck, there are some retail investors who bravely rushed into the ocean of defeat.

At 12: p.m. Eastern Time, Sino-Forest issued an urgent announcement, confirming that its founder Chen Deyuan would hold a press conference in half an hour. At the same time, it also stated that it had submitted an application for a temporary suspension of trading to the Securities and Exchange Commission (CSA).

而从上午9点半到中午12点半的这3个小时，嘉汉林业的股价已经从开盘的18.1加元跌到了5.04加元，市值蒸发了72%，目前只价值14.2亿美元。

This epic collapse was caused by both Shanfeng’s research attack and Paulson’s support. Of course, the most fundamental factor was the vulnerable scam of Sino-Forest.

The half-day performance of this stock in the Canadian stock market also alarmed Wall Street, and many analysts analyzed the various circumstances of this matter.

The world-renowned media "Wall Street Journal" reported the incident after synthesizing some opinions, and its title directly used the original words from "Over the Mountain" - "Deceit remaineth forever."

Bloomberg, which also has a wide influence around the world, extracted similar details of "Over the Mountain" and titled it "Another Madoff-style company."

The case of financial fraudster Madoff is still popular in the industry today, and it is particularly easy for readers to understand the nature of this company.

Whether it is the Wall Street Journal or Bloomberg, whether it is their headlines or content, their position at this moment is quite clear, and they recognize the research report issued by "Guoshanfeng".

The No. 1 hedge fund manager on Wall Street, well-known media, notorious short sellers, and corporate businesses that are beyond analysis...

Investors who already held shares in Sino-Forest felt like the sky was falling!

Not everyone pays attention to business and company information all the time. When they rush to open the website because of the widely circulated news, all they see is a stock withering in the wind!

What about a $50 billion company with a bright future?
You said this is the one that is expected to break through to 10 billion US dollars? ? ?
The decline is too fast and the drop is too severe!

Investors who didn’t have time to sell at a loss didn’t see any point in selling at this point, and instead tended to hold on to their positions – as long as they didn’t sell, this would only be a floating loss…

At the same time, what comforted them was that the company’s founder was about to hold a press conference.

This may be a turning point.

Investors with paper losses are trembling, investors with real losses are in agony, and major shareholders are furious...

At this time, at 1 a.m. in Hong Kong, Sino-Forest's founder Chen Deyuan held a late-night press conference to refute Guo Shanfeng's research report and announced that everything was slander. At the same time, the Canadian Securities Administration (CSA) also held a discussion at the request of the company and the market to discuss whether to temporarily suspend trading of Sino-Forest.

Chen Deyuan cried bitterly in front of the camera, denouncing the atrocities of the unscrupulous short sellers.

The Administration has studied the matter carefully and is almost about to confirm the suspension of trading of Sino-Forest.

However, when they were about to end their discussion, the three major shareholders of Sino-Forest called one after another and made a similar request - the stock cannot be suspended!
The largest shareholder Chandler, the second largest shareholder Davis, the third largest shareholder Paulson... They showed different attitudes when facing the short selling of Sino-Forest. Davis expressed real support, Chandler expressed real support but pretended to support, and Paulson stabbed back.

However, when they received the news that CSA was discussing the suspension of trading, they could not help but change color and actively lobbied, not wanting to see such a situation.

CSA leisurely communicated with the three shareholders and eventually learned the most honest concerns from the major shareholder Davis - he was afraid that the suspension would be permanent.

He suffered the most serious loss among the three major shareholders, and he has not yet gotten out of the car. If Sino-Forest does not suspend trading, the stock price will definitely continue to fall, but at least he can get a little bit of profit...

If Sino-Forest were to suspend trading, the ensuing scenario would become very familiar.

Suspension of trading → investigation → bankruptcy → establishment of a creditors’ committee → no further pursuit.

In the end, Sino-Forest's 2.5 million shares will become nothing more than waste paper!

That would be a real loss of all your money!
The total cost of Davis' Sino-Forest shares exceeded US$3.5 million, part of which was acquired through block trades. Now he can't get away with it at all, and the rest of it can't be lost because of strategic errors.

As a result, his losses amounted to nearly 3 million US dollars!
Chen Deyuan’s press conference was being broadcast simultaneously in the CSA conference room, but compared to the founder’s grief and anger, they felt that the major shareholder on the other end of the phone was the one who was really...crying while talking!

"In principle, we sympathize with your loss, Mr. Davis, but the situation of Sino-Forest has reached a critical point. In order to protect the interests of the majority of investors, we will announce our decision in 10 minutes."

In the end, CSA rejected Davis' request with regret.

But even so, the phone calls between the three major shareholders bought Sino-Forest nearly half an hour of time for collapse.

At 2:30 p.m. Eastern Time in Canada, or 1:30 a.m. Hong Kong Time, CSA issued an announcement confirming the suspension of trading of Sino-Forest shares.

It is worth mentioning that when CSA’s announcement came out, the company’s founder Chen Deyuan had just finished the press conference and had not even left the venue.

The reporters who were already besieging Chen Deyuan received the new information and immediately blocked the passage again, throwing out the latest situation: "Mr. Chen Deyuan, what do you think about CSA's suspension of Sino-Forest?"

Chen Deyuan had already expected this, but he was caught off guard when he heard this. The look of surprise and panic on his face was frozen under the flash lights.

After a few seconds, he managed to muster up the strength and said in a hoarse voice: "We will be back soon! Time will prove everything!"

At this point, Chen Deyuan refused to accept the reporters' siege, and even when a microphone was stuffed into his mouth, he no longer responded to a single word. After half an hour of such embarrassing efforts, the press conference scene was left in a mess.

But no matter how he behaved, no matter how embarrassed he was afterwards, or how angry he was at the press conference, as of the moment the stock was suspended, Sino-Forest's share price had collapsed in an inhumane way to 1.991 Canadian dollars, with its market value evaporating by 89%, leaving only 5.58 million US dollars.

The good news is that the market value was at 5% before the opening and it was still at 5% when it was suspended.

Bad news, it’s still 5, but there’s one less zero at the end.

The worse news is that even the market value of US$5.58 million is most likely false and will eventually return to zero.

From 9:2 a.m. to 89: p.m., a full five hours, Sino-Forest's stock price staged the fastest legendary drop, with a drop of %, shocking the global financial community and attracting the attention of countless reporters, investors and audiences.

The stock was suspended, and although some people were still looking forward to the resumption of trading of Sino-Forest, the mainstream opinion almost quickly reached a consensus that the grave of this company had been dug, and the remaining work was just to spread the soil on it.

Compared with the opening process, more media conduct a more comprehensive review and wider dissemination after the suspension of trading.

Therefore, the name of the tragedy was deeply imprinted in the hearts of many people, and the words in its research report were also sought after.

——One generation passeth away, and another generation comes, but deceit remains forever.

——One generation passes and another generation comes, but deception lasts forever.

What is even more appropriate is that the official website of Guoshanfeng was quietly updated at some point and restored to its previous interface.

——A cartoon snake and a sentence:

——See you next time.

Last time, due to the short selling of Fenzhong Media, the official website of Guoshanfeng was hacked, and when it was restored, it gave the words "see you next time". This time, it still ended in the same way.

It has to be said that this leaves a very iconic impression.

Even...many people began to follow and spread the words of the mountain.

In the early hours of the morning in Shanghai, Yu Xing stayed up late to follow the development of the incident. He felt sorry when he saw the news of Sino-Forest's suspension of trading. It was really suspended, and he would not be able to get the subsequent money.

He was naturally not afraid of a suspension of trading to this extent. This was completely different from Paulson's previous threat of a suspension of trading. This was...

The child is dead, you are breastfeeding, and snot is running from your mouth. What's the point if you know how to get rid of it?
Yu Xing rubbed his tired eyes and flipped through the posts on Bai Xiaosheng and the content they translated. This was what had previously attracted the legal department of Jiahan Forestry, but the legal department certainly didn't have the energy to care about it now.

How should we describe this decline?

Landslide, tsunami, avalanche?

After Yu Xing became extremely nervous, his thoughts were a little slow. It took him a long time to find a word: hemorrhage!
He stood up and walked a few steps, looking into the night sky in the early morning. Knowing that the other side of the earth had just experienced a fierce market situation, he couldn't help but feel that this matter was actually a bit romantic.

Of course, the person involved must have the opposite idea.

Yu Xing sat back in front of his notebook and saw that netizens had quickly translated the entire research report.

He looked at it curiously, and frowned at the first sight. "One generation passes, another generation comes, and deception lasts forever"...

No, no, it’s not that deception lasts forever, it’s that the scam lasts forever!

Yu Xing hesitated for five seconds and gave his opinion in the form of a comment: Would it be better to translate it as 'The scam lasts forever'?
Soon, his opinion was rejected.

"Oh, Dr. Yu hasn't slept either. It means deception lasts forever. This is a sentence adapted from the Bible. You can see that this is also the translation in Hong Kong." User 'If you stay up late again, you will be a dog' explained the translation problem.

Yu Xing hesitated for a while and then continued to try to set things right: I think all the findings from this mountain research are scams, and I feel that 'scams last forever' is more in line with its meaning.

Compared to "If you stay up late again, you'll be a dog", the reply from another user "I'm in a good mood at work on Monday" was much more rude: Doctor, what do you know about crossing a mountain? It's enough for you to be a know-it-all!
Yu Xing: …

What can I say?

The founder of Bai Xiaosheng really could not explain what Shanfeng was thinking.

Before going to sleep, Yu Xing discussed the future of Sino-Forest with another netizen.

His reply was: There is no future, and the suspension of trading means there is no more room for collapse, it is a direct death.

Because of identity issues, this judgment is still questioned by some people.

Yu Xing couldn't show his fangs, so he could only end the discussion gently and lie on the bed waiting for Xiaoying's summary.

The capital invested in the short selling of Sino-Forest this time was US$320 million, most of which was the funds rolled out after Red Falcon’s financing.

At this time, the previous choice of buying a Mercedes-Benz seems to be very uneconomical.

At 3:30 in the morning, Yu Xing, who was in a daze, received a call from Xiaoying.

"We closed the net too early this time. I was afraid that Paulson would make some unexpected moves, so I was still conservative!" Liu Wanying's voice was a little annoyed. "In fact, when he came out to agree to cross the mountain peak, I should have adjusted more radically."

Compared with her last attempt to short Fenton Media, she increased the proportion of CFD contracts this time, with 60% of the principal used in this regard, and the remaining 40% was divided equally between PUT and double CALL spreads.

CFD can use higher leverage, double CALL can lock in the highest profit, and PUT has the opportunity to bring more profits due to greater declines.

"Paulson is under a lot of pressure. I have also felt it these days. We have discussed your strategy before. You cannot regret it now that you see the decline of Sino-Forest." Yu Xing said with a smile, "What if you didn't have time to close the net and Sino-Forest was suspended directly at 10, 11 or 12 o'clock?"

There is a possibility that Jiahan Forestry will be suspended at any time, which means that the funds operated by Liu Wanying have always been at great risk, and it will be a long time before the stock will be resumed after the suspension.

"That's true, but..." Liu Wanying shook her head and reported the profit. "The CFD contract was about 960 million US dollars in the end, and the rest added up to about 600 million US dollars, which is almost 1600 million US dollars in total."

Yu Xing praised with surprise: "Great! We have destroyed the market value of Sino-Forest by several billion. The money we made this time is almost enough to make up half of Bai Xiaosheng's next round of financing!"

Liu Wanying: “…”

She said unhappily, "You deliberately don't want me to fall asleep today."

"You seem to be in a bad mood. Adjust your mood. That's great. We only made $119 million last time, but this time it's $1600 million. The more capital we have, the more money we can make." Yu Xing said seriously, "I believe that now that we have this much capital, we can achieve our next goal with peace of mind."

If Fenzhong Media and Sino-Forest knew about Shanfeng’s profits, they would probably die with regret.

Liu Wanying sighed: "We need more channels to obtain information, we need a small team, yes, we need Alibaba."

Ali's next goal is enough to offset the frustration caused by the pressure on Sino-Forest.

Yu Xing briefly chatted with Xiaoying for a while, then asked her to rest and have a comprehensive talk tomorrow.

However, after he hung up the phone, he tossed and turned and couldn't fall asleep.

After a long time, when Yu Xing opened his eyes again, it was almost noon.

He quickly washed up and arrived at the company. Not long after he sat down, he saw the third-in-command Zhong Zhiling walk in.

"Brother Xing, why did you ask your secretary to give you an order..." Zhong Zhiling asked in confusion and hesitation, "an order to suppress the news about Sino-Forest?"

Yu Xing coughed and explained, "This matter seems to be quite complicated. We don't need to make it the most popular one. It will be too eye-catching."

"Brother Xing, why is it so complicated? It's not flattery, it's just natural popularity!" Zhong Zhiling argued.

Yu Xing suddenly had the illusion that he could sense Xu Xin's mood. After a moment of silence, he said, "Suppress it a little. Other platforms have already reported it."

Zhong Zhiling said righteously: "Brother Xing, what are you pressing? Who asked you to press? When Xu Xin asked you to press, what did you tell us?"

Yu Xing: “…”

Zhong Zhiling looked at his senior brother's messy hair and haggard face, and suddenly felt the pressure he might face. He sighed and said, "Forget it, Brother Xing, you have pressure, but you don't say it. I'll do as you say."

“Hey…” Yu Xing stopped the third in command who turned around and said helplessly, “Forget it, forget it, don’t press it, just leave it like this, the heat will naturally rise.”

Zhong Zhiling hesitated and said, "Then your pressure..."

Yu Xing put his hands on the table to make his position clear: "I am Yu Xing, not Yu Xin!"

Zhong Zhiling nodded silently, turned around and left the office.

A moment later, he saw the second-in-command, Lu Haiying, and saw her inquiring eyes.

Zhong Zhiling sighed and said, "Brother Xing, he..."

He was silent for a few seconds, then said regretfully, "He's not sharp anymore."

The business world is ruthless, and that is human nature.

(End of this chapter)