Reborn as a tycoon in Hong Kong

"Okay, I get it!"

"The shares belong to HSBC. Since HSBC insists on reducing its holdings, what can I say?"

"I still have things to deal with here, so that's it for now."

Lin Baicheng hung up the phone with an ugly expression.

Shen Chou from HSBC just called. He told Lin Baicheng that HSBC's board of directors has decided to reduce its holdings of 5% of Hutchison Whampoa shares first, and does not rule out the possibility of continuing to reduce its holdings. This news will be announced to the public soon. He called this Let’s talk to Lin Baicheng about this on the phone first.

In the Hong Kong stock market of this era, there is no need for major shareholders to announce in advance when reducing their holdings, and there is no saying that they can only reduce their holdings by 1% of the total shares in the secondary market within three months. As long as you are willing, you can completely reduce the number of shares you hold on the same day. .

But on Monday the day before yesterday, HSBC said it would not reduce its holdings for the time being. Only one day later, HSBC changed its decision.

When Lin Baicheng learned about this incident, he directly asked HSBC if it wanted to re-draft the property loan contract for Hutchison Whampoa. If necessary, he could come to Lin Baicheng at any time. He had already made plans to break up with HSBC, but Shen Zong said that HSBC I only reduced my shareholding, and there was no problem in cooperating with Hutchison Whampoa.

Lin Baicheng knew that HSBC didn't want to completely break up with each other, so he didn't take the initiative to break up with Shen Porridge and stopped talking to Shen Porridge.

At 10:30 in the morning, HSBC issued an announcement to reduce its holdings of 5% of Hutchison Whampoa shares, and stated that it would not rule out the possibility of continuing to reduce its holdings.

Hutchison Whampoa immediately stated that the company currently has no problems. Except for temporary losses in investments, negative news about the company is released by short sellers, so that investors can believe in the company and continue to hold stocks. Sell ​​stocks at low prices.

Unfortunately, with the announcement of HSBC's shareholding reduction, Henry Kaiser and others immediately increased the selling of stocks at the price of 21 Hong Kong dollars. Coupled with panic orders, Lin Baicheng also paid for more than 50 million yuan. All the shares were sold, and the stock price soon fell below the price of HK$20.

"Anyway, I've already reminded you that investors selling at a loss have nothing to do with me."

After Lin Baicheng learned that the stock price fell below 20 Hong Kong dollars, he couldn't help but talk to himself. Although his face looked a little ugly, he was mainly angry because the short side had profited, not because his wealth had shrunk.

Lin Baicheng knows very well that when the price of gold subsequently rebounds and breaks through the previous high, rising to US$300/ounce, US$400/ounce or even higher, Hutchison Whampoa's stock price will inevitably exceed the previous high of HK$70, and his net worth will exceed one It will all come back next year. If he buys a stock below 25 Hong Kong dollars now, he will be able to make a profit by then, but he himself cannot lose money anyway.

Therefore, Lin Baicheng was angry because the short side had benefited, which made him a little unhappy. However, Lin Baicheng is not ready to continue to use funds to buy long pallets. In addition to the acquisition, the money also needs to be used as a deposit, but it cannot be used out of anger.

If you divert those funds and use some leverage, you will definitely be able to defeat the short side. It's not that Lin Baicheng has more money, but that the short side will have no stocks to sell later, and there is no way to go short, so the short side will definitely lose when it reaches a certain level.

But the problem is that if the international gold price suddenly drops sharply again during this period, if Lin Baicheng cannot provide the margin temporarily, his long position will be liquidated, and his losses will be huge.

on the exchange.

Henry Kaiser and others were very happy when they saw Hutchison Whampoa's stock price falling below HK$20 and continuing to fall. This showed that many parties had no funds left, at least until the stock price fell to a certain price.

They know very well that the bulls have no resistance now, but if they dare to suppress the stock price to 10 Hong Kong dollars or even lower, then funds will definitely enter the market to go long, and they cannot be allowed to suppress the stock price without a bottom line. .

Henry Kaiser and others quickly discussed at what price to start buying back the stocks. After all, they would eventually have to buy back a sufficient number of stocks and return them to the brokers. Temporary success was not considered a real success.

Henry Kaiser and others sold a large number of stocks at the price of HK$21. Although they stopped selling stocks after breaking this price, they sold a total of 48 million shares at this price. If they want to make money, start The stock price you buy cannot be too high.

After discussion, they decided to start buying back the stock from the price of 16 Hong Kong dollars, but they had to buy it slowly and not increase the stock price just because they bought the stock. At the same time, if the stock price rebounds due to their buying, when the stock price rebounds to close to 19 Hong Kong dollars, the stock price will start to be suppressed and the stock price will fall again, so that they can continue to buy back the stock.

Henry Caesar and others must ensure that the short position sold at the price of 21 Hong Kong dollars has a profit of at least 10%, otherwise their profits will be too low.

Until the end of the morning session of the stock market, the subsequent stock price trend of Hutchison Whampoa was under the control of Henry Kaiser and others. The stock price fell to the lowest price of 15.75 Hong Kong dollars, then rebounded. After rebounding to 18.63 Hong Kong dollars, it fell again, towards the price of 16 Hong Kong dollars.

Hutchison Whampoa's stock price fluctuates between HK$16 and HK$19. It can be said that the stock price has been controlled by Henry Kaiser and others. When they buy the stock, the stock price rebounds and rises; once they sell the stock, the stock price is suppressed and falls.

Before the stock market closed in the morning, Wei Li came to Lin Baicheng's office to report to him.

Hutchison Whampoa applied for loans from major banks in the morning. HSBC and Standard Chartered clearly rejected Hutchison Whampoa. Of course, Hang Seng Bank, which is controlled by HSBC, also rejected Hutchison Whampoa. A large number of other small and medium-sized banks also clearly rejected the loan.

However, there are of course some who refuse and some who express willingness to negotiate. The largest bank willing to negotiate is the Bank of East Asia. Of course, if these banks are willing to lend money to Hutchison Whampoa, the interest rate will definitely be higher than usual. This is not taking advantage of the situation. After all, the bank is taking risks to lend money to Hutchison Whampoa. If there is no higher profit, the bank will follow Hutchison Whampoa is not a relative, so why should we lend money to Hutchison Whampoa when there is so much negative news?

Wei Li asked Lin Baicheng whether to get a loan from a bank such as the Bank of East Asia.

After hearing this, Lin Baicheng thought about it. He was unhappy at the thought that the short side would make a lot of money. Finally, he decided to ask Wei Li to contact various banks to see if he could get a loan of no less than 400 million Hong Kong dollars this afternoon.

If you can borrow a minimum of HK$400 million this afternoon, then take out the loan and use the loan funds to buy back stocks.

If the loan is less than HK$400 million, or the loan cannot be completed today, forget it. Hutchison Whampoa's loan is to stop the short side, whether it is too little money or too late, it is meaningless.