Rebirth: The Financial Giant

Chapter 256 [Short General Electric (6393)]

Chairman, the day before I returned to China, people from Goldman Sachs Group talked to me again about packaging their $13.5 billion assets into securities. Qi Wei, who was sitting on a single-seater sofa, looked towards Lu Ming added:

According to John Bryan, they intend to carry out a reverse takeover of this capital security, they have already identified a financial shell company listed on the New York Stock Exchange, intend to use this backdoor listing, and intend to use the shell company's The transaction code was changed to TCG, which is the abbreviation of Tiansheng Capital.”

The U.S. stock market also has a backdoor operation, which is a basic operation in the global capital market. The IPO of U.S. stocks is fast, and the backdoor is faster.

Goldman Sachs may be able to complete the backdoor action in two to three months after such a mess.

In this way, the risk can be transferred to the capital market. US stock investors, even an ordinary retail investor, can indirectly become the LP of Tiansheng Capital by buying TCG shares, and can enjoy the investment income of Tiansheng Capital.

These magnates also like to play word games. It seems that Goldman Sachs wants this so-called TCG to become the shadow listed company of Tiansheng Capital in the US stock market. Lu Ming said with a half-smile.

Tiansheng Capital has already backdoored a big A, and of course it will not go public in the United States, so the trading code of TCG does not matter.

To put it more down-to-earth, Goldman Sachs wants to get a counterfeit product of Tiansheng Capital listed, but it cannot be said to be a complete counterfeit product, because TCG really has assets under the management of Lu Ming.

They're doing this. Did John Braine ask you to share the profit and loss of the $13.5 billion investment with them? Lu Ming asked rhetorically.

Since the packaged capital securities are listed on the backdoor of TCG, the financial statement information must be released according to the normal process of the listed company, and the core assets are managed by Tiansheng Capital. If the financial information is not provided, the actual financial statement of TCG will be Can't make it.

Qi Wei nodded and said, That's right.

Lu Ming said in a deep voice: This is not a big problem. The specific investment information cannot be shared, but every quarter, we can share the asset profit and loss of this investment with them as a final figure, huh, TCG, right? We have to do it secretly. Make an offer and do a market value management of the company.

Hearing this, Qi Wei couldn't help but be stunned, Chairman, do you mean that we give part of the money managed by the people of Magnesium to allocate TCG's stock assets?

In the past, Goldman Sachs shorted myself, and now Tiansheng I bought myself?

This……

Lu Ming said with a smile: I made the profits, and TCG's stock must have risen sharply. In that case, why can't I buy TCG's stock?

Qi Wei was speechless for a while, and was speechless to refute.

This is a purely financial game of cutting leeks, which is equivalent to a sum of money going around in a closed loop in a financial system. It does not create value for society in essence, but it can attract some leeks to buy TCG stocks and then cut them off. , and then the stock price of TCG can rise sharply, which is outrageous and extremely magical.

The general logic of this show is as follows: the capital institutions of the Magnolia people pay the asset management institutions of the Chinese people, and the people of the Magneso countries then package them into securities and throw them on the stock market for trading, and then the capital institutions of the Chinese people take the people The money he gave went to the capital market of the Magnusians to buy the securities made by the Magnusians... Forming a closed loop!

Philosopher said: No matter how strong a strong man is, he can't lift himself up!

But the financier just smiled when he heard this.

For this TCG led by Goldman Sachs, Lu Ming will definitely participate in a wave of speculation.

In the office, Lu Ming and Qi Wei chatted for a while, then got up and went to his desk, took out a document in a drawer and handed it to Qi Wei: If you have money in your hand, you can lay out a part first, and short the S\u0026P 500. Now we can enter the short order, in addition, we will short the six companies in the data.

Lu Ming returned to his seat and sat down, adding: The first step of this fund is to make a short position first!

Qi Wei took over the document and opened it to look at the list of the six short-selling companies that Lu Ming had chosen. The reasons for the short-selling, the funds invested in the short-selling, and the target prices were all clearly arranged.

General Electric GE: The current market value is 220.7 billion US dollars, and the expected decline is -78%;

Coca-Cola Vansa bottled: The current market value is 189 billion US dollars, and the expected decline is -61%;

Tesla: The current market value is $60.8 billion, with an expected decline of -59%;

Regeneron Pharmaceuticals: The current market value is $53.8 billion, with an expected decline of -44%;

Ink BBQ: The current market value of $10 billion is expected to decline by -30%;

Dekang Medical: The current market value is 5.8 billion US dollars, and the expected decline is -37%.

Qi Wei looked at the six companies to be shorted, closed the materials and said, Understood, I'll arrange it right away!

Now Tiansheng Capital has benefits from several top brokerage investment banking institutions such as Wall Street Goldman Sachs Group, and the execution of short-selling actions has become much smoother. At least more brokerages will be willing to lend stocks to Tiansheng Capital to sell short.

Qi Wei stayed in China for three days, and then set off for Magnesium again. In addition to the initial research work to be carried out, he first dealt with six short-selling companies after arriving in Magnesium.

Again, I found Goldman Sachs Group and other major brokerage investment banks to sell short securities. The first step in short selling is to borrow stocks from brokerage institutions, sell them to the market, and pay the interest negotiated by the brokerages.

As for the question of how to make money from short selling, it is also sold by borrowing stocks. Taking the stock of General Electric GE as an example, this time Tiansheng Capital borrowed about 390 million shares with a market value of 10 billion US dollars from major securities companies. sell off in the secondary market.

When GE's stock price plummeted to the expected $5.50, it only needed $2.145 billion to buy 390 million shares from the secondary market and return the shares to the brokerage.

In the end, Tiansheng Capital will profit from it, excluding transaction costs, it is 10 billion - 2.145 billion = 7.855 billion, that is, this short profit is 7.855 billion US dollars.

After the securities lending is successful and the stock is quickly sold, the next focus is to sing short, that is, to publicly publish a short report to the market, indicating the reasons for shorting, such as the company has problems of one kind or another, the stock price has deviate from the actual value, the market needs revaluation.

In fact, the purpose of publishing a short-selling report is to find a sense of identity in the market. Once other investors in the market agree with the short-selling report's point of view, they will also go short, and the stock price can fall rapidly, and the decline that Tiansheng Capital can earn bigger.

After the stock price of the shorted company fell to a position that Lu Ming thought was reasonable, Tiansheng Capital bought back the stock at a low price and returned it to the institution, thus completing a round of short arbitrage.

However, short-selling is quite dangerous. Selling something that does not belong to you is actually a very dangerous thing.

If you sell what you don't have, you have to buy it back, or you will go to jail.

Theoretically, the rise of the stock price is unlimited, and $1 can rise to $10,000 or even higher. There is no upper limit, so theoretically the profit is unlimited.

The decline is limited, and the decline is at most 100%, so the profit for short selling is limited and will never exceed 100% profit.

The most terrible thing is that the loss of short selling is unlimited. After short selling for 1 US dollar, if the stock price does not fall but rises to 10,000 US dollars, the short-selling agency must return the short-sold stock to the brokerage agency. At this time, it has to pay 10,000 US dollars. The price is to buy back the stock that was originally sold for $1. The more the stock price rises, the greater the loss, and the interest has to be paid every day.

Therefore, shorting is quite dangerous, and you cannot fight an unprepared battle.

After Tiansheng Capital quickly completed the short selling of these six companies, the time entered August. Lu Ming decisively approved a long-prepared material for public release.

That is, Tiansheng Capital issued a short report.

On the same day, it caused a huge sensation in the domestic and foreign financial circles, and suddenly a big news came out, which attracted various media reports.

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