Reborn as a Hong Kong Tycoon

Chapter 325 He Huang's long and short battle ()
When the confrontation between Guo Henian's funds and the short side was over, Lin Baicheng contacted Guo Henian and learned about the number of shares he held from Guo Henian.

郭贺年在成本价40港币左右买入了600万股左右，花了将近2.5亿港币的资金；这次在20港币下方买入了2620多万股，花了5亿港币的资金。

In other words, the number of shares held by Guo Henian is 3220 million shares, accounting for 8.05% of the total shares of Hutchison Whampoa.

Lin Baicheng began to count. His total holdings in Hutchison Whampoa were 1.996 million shares, of which 9000 million shares were mortgaged to HSBC for a loan of HK$10 billion, and the stocks in his hands were 1.096 million shares.

After Hutchison Whampoa was short-sold, Lin Baicheng took out 4150 million US dollars of funds to go long Hutchison Whampoa's stock through five-fold leverage through offshore company financing, and bought it in two installments.I bought 9.95 million shares at one time and spent HK$25 million. Later, the price fell below HK$25 a few times and then rose rapidly, so I bought about 10 shares, which cost a little more than HK$ billion.

The second time I paid all the orders at the price of 21 Hong Kong dollars, which was a shortfall of 100 million and nearly 11 billion Hong Kong dollars. After deducting the handling fee, I bought 5230 million shares.

Adding up the two times, Lin Baicheng bought a total of 9405 million shares in this $23.5125 million leveraged financing, accounting for % of the total share capital.

All together, Lin Baicheng's total share capital exceeds 70%, which is close to 75% of the total shares acquired.However, he will definitely not make a comprehensive acquisition of Hutchison Whampoa, because the highest stock price of Hutchison Whampoa in the past six months is about 70 Hong Kong dollars, and he will spend 25 billion Hong Kong dollars to acquire the remaining 70%. If there is a lot of money, it will not be used to fully acquire Hutchison Whampoa.

Lin Baicheng originally held 1.096 million shares, plus the 9405 million shares he bought later, a total of 2 million shares in his hands, which is a little more than 365% of the total share capital.

Adding the stocks in Guo Henian's hands, it equals a total of 2.3585 million shares. This is a stock that many of them will definitely not sell, and these stocks will not flow into the stock market.

After calculating the number of shares held by his own side, Lin Baicheng began to calculate the chips that the short side might have left.

Before being short-sold, Hutchison Whampoa held 49.9% of the shares held by Lin Baicheng, 15% by HSBC, and the rest of the shares were in the stock market. Perhaps some institution or large capital would buy 1% or 2% of the shares. % of the stock, but the holdings will not be too concentrated.

To be short, the short side must borrow stocks to sell, and the stocks that the short side can borrow are only from HSBC, that is, the 9000 million shares mortgaged by Lin Baicheng and the 6000 million shares held by HSBC itself, a total of 1.5 million shares.

Since the short side is to make money by shorting, the short side must have sold a large number of stocks before the negative news broke out at a price above 37 Hong Kong dollars, 40 Hong Kong dollars or even higher. Make the difference.If you wait for the negative news to break before you start selling stocks to go short, the short side will also not make much money.

Therefore, Lin Baicheng guessed that the short side had already shorted above 37 Hong Kong dollars before the negative news broke out, and since it is the joint efforts of multiple British-funded families, it is impossible to short 2000 million shares, 4000 million shares or even more.Calculated based on the minimum number of short positions, let's count it as 3000 million shares.

Lin Baicheng bought a total of 9405 million shares with the funds on the tray. With such a large amount, he guessed that the short side sold at least 7000 million shares, and retail investors could sell more than 2000 million shares, which is quite a lot.

Of the 3220 million shares that Guo Henian bought, the short side had to use 2500 million shares anyway in order to suppress the stock price.

Adding it all together, Lin Baicheng speculates that the short side has already sold 1.25 million shares through securities lending, and can lend up to 2500 million more shares through securities lending.Although the short side bought a lot of stocks from retail investors in the morning and afternoon, Lin Baicheng guessed that the number of stocks bought was between 1000 million shares and 2000 million shares. Let’s count 1500 million shares. The short side can sell the most stocks Just 4000 million shares.

"There's a lot to do!"

Not ignorant, after calculation, Lin Baicheng found that the short side basically has no bargaining chips, and Hutchison Whampoa still has 6 million Hong Kong dollars that can be used to buy back stocks.Based on the current stock price, if the short side doesn't have as many as 4000 million shares, just wait to be blown up.

When it was almost three o'clock, Hutchison Whampoa's loan finally arrived, and the company's traders also completed the account opening at the corresponding bank. The 6 million Hong Kong dollars of funds could enter the stock market to buy Hutchison Whampoa stocks at any time.

However, before buying the stock, Lin Baicheng revised the repurchase announcement originally planned by Hutchison Whampoa, and then asked Hutchison Whampoa to issue an announcement.

Hutchison Whampoa announced to the outside world that due to the company's recent malicious short-selling, the stock price has plummeted, and the company's current operations have no problems. Therefore, for the benefit of the majority of shareholders, the company has decided to use funds to repurchase the company's shares after the announcement.

The capital limit for this repurchase is HK$15 billion, of which HK$6 million is a bank loan, HK$4 million is the company's own funds, and HK$5 million is a paid loan from Youshang Xinghe Game Company.

The highest share price for this repurchase is HK$30. As long as the company’s share price is lower than HK$30 per share, the company will repurchase the company’s shares at any time to maintain the share price and protect the interests of all shareholders of the company.

This is the announcement issued by Hutchison Whampoa. In fact, the funds are not too exaggerated, because the loan is real, and the company can indeed withdraw 4 million Hong Kong dollars from its own funds. Galaxy Games also has 5 million Hong Kong dollars that can be lent to Hutchison Whampoa. .

However, Hutchison Whampoa will only use 6 million Hong Kong dollars to repurchase at the beginning. It is best not to use its own funds and the funds of Galaxy Games. To the account of Hutchison Whampoa.

The reason for such an announcement is to send a signal to the outside world, boost market confidence, allow more funds to enter the market, and let more shareholders hold their stocks and not sell them, so that it is more likely to use 6 million Hong Kong dollars The funds will blow up the short side.

After Hutchison Whampoa released the announcement, the trading personnel arranged by the company on the exchange immediately began to buy a large number of Hutchison Whampoa stocks. The stock price below 20 Hong Kong dollars can be sold as much as it is sold, and it will be sold in less than 10 minutes. The stock price rose above 20 Hong Kong dollars, and then continued to buy.

The predicted sell-off by the short side did not appear at all. Hutchison Whampoa’s repurchase funds continued to buy stocks. Around 03:30, the stock price was gradually raised to around HK$25.

It's not that the short side doesn't want to smash the market, but that after knowing that Hutchison Whampoa has a maximum of 15 billion Hong Kong dollars for repurchases, Henry Cassack and others who hold about 400 million shares have no desire to smash the market at all, because such a small amount The market is useless at all, so why should you hand over the stock at a low price, it is better to let Hutchison Whampoa buy it.

After 03:30, many observers realized that the short side had no bargaining chips after finding out that the short side hadn’t hit the market all the time, at least for the time being.

(End of this chapter)