Black technology: a super empire spanning two worlds

Chapter 38 [Stop pretending, just show your cards]

The traders of Penghui Capital did not hesitate after receiving the instructions from their boss and quickly rushed to buy Prism Technology. At that time, the overall market was not good. After a sharp drop yesterday, the stock fell again today by -7%.

At around 10:42, the time-sharing line of Prism Technology suddenly turned and rushed straight up.

Not only was the shadow account held by Penghui Capital scrambling to buy shares, several other investment institutions were also asking their traders to quickly buy shares. They all surprisingly unanimously judged that Xiao Yu's resolution at the board meeting today was to revise the proposed merger and reorganization to absorb 100% of Linghan New Materials' equity.

The stock price of Prism Technology rose sharply like a scallion in dry land, without any retracement.

Tens of thousands of large orders swept the market one after another, and in less than a minute the price rose from -7% underwater to +15%, which seemed to mean it was going to hit the daily limit.

This wave of strong rise not only attracted many small retail investors to follow suit and buy shares, but also some hot money.

Because the buying power of large funds is too strong and determined, we have to take a higher look.

This momentum shows that it is going to enter the third major upward wave. Everyone's first reaction is that it is news beyond expectations, and they are all following the trend to buy shares.

At around 10:45, Prism Technology's share price rose to 37.51 yuan, an increase of +19.99%, hitting the daily limit, and its market value climbed to 325.58 billion.

The amount of funds blocked on the daily limit was an exaggerated 75 billion, shocking all kinds of funds.

……

At around 11:45, Xiao Yu's board meeting had ended.

At this moment, Zhou Baichuan was waiting for news quite comfortably, but just a moment later, his assistant rushed over and hurried into the office.

Zhou Baichuan immediately showed his displeasure: "Why are you so flustered? Is the sky falling?"

His assistant immediately said, "Boss Zhou, something bad has happened. Prism Technology has just concluded a board resolution. Xiao Yu has terminated the restructuring with Linghan New Materials. This is the faxed information that Boss Zhang just sent."

Zhou Baichuan's pupils suddenly shrank, and he stood up from his boss chair like a spring: "What did you say?"

He immediately snatched the document handed to him by his subordinate, and while reading it, veins popped out on his forehead, the corners of his eyes twitched, and his whole body turned red and warm.

The office suddenly became eerily quiet. His assistant didn't even dare to breathe and secretly glanced at the boss.

Zhou Baichuan broke down his defenses instantly, and with a rage like thunder, he smashed the document to the ground fiercely, and turned into a desktop cleaning master. With a sharp sweep of his arms, he cleared out the phone, pen holder, documents, and other items on the table.

The tabletop was clean, but the floor was a mess.

"Xiao Yu! You bastard! How dare you do this? How dare you do this?" Zhou Baichuan completely lost his composure after reading the document. He roared in rage on the spot, his lungs almost exploding with anger.

If he still doesn't understand at this moment, he will have lived half his life in vain.

Xiao Yu had never thought about turning the page from the very beginning. He had long been prepared for a complete break, and had carefully planned a pit for them to fall into. From the beginning to the end, Linghan New Materials was just one of the links in the carefully set-up trap for them.

Originally thought that Xiao Yu just wanted to regain some ground and didn't dare to completely break up with the capital. Zhou Baichuan confidently believed that Xiao Yu wouldn't dare to do so, and several other investors were also so sure.

I was forced to sell short before and had to cut my losses. I thought that I would secretly accumulate funds and go long during this period, so that I could get back both the principal and the losses from my short positions.

But no one expected that Xiao Yu was so bold as to dig such a big hole, and his true intention was not revealed until today.

The board’s resolution that the restructuring had failed was tantamount to a direct showdown, and there was no point pretending.

What made Zhou Baichuan most angry and humiliated was that he had seriously misjudged Xiao Yu an hour ago, causing the trader to rush to buy shares.

This guy is taking the last bus to get killed.

At the time, I was full of confidence, as if I had everything under control, but now when I think about it, I feel a burning pain on my face due to shame. Oh, yes!
When Zhou Baichuan thought of this, he immediately yelled to his subordinates: "Quick! Tell the traders to stop going long immediately and close their positions quickly, regardless of the cost!"

The assistant nodded repeatedly and left quickly to inform the trader.

At this moment, Zhou Baichuan was so angry that he had heartache, because he had made a heavy bet on this long position, investing 15 billion real money, and he had already lost 10 billion when he opened a short position and sold it at a loss.

It is very likely that the 25 billion yuan will be lost this time. This is not just the nominal market value, but real money.

And that’s not all. Zhou Baichuan also realized that when things got to this point, Penghui Capital might not be able to get out of its 19.99% stake in Prism Technology.

Xiao Yu obviously intended to do it thoroughly, without any room for maneuver. He would definitely drive the share price of Prism Technology to the lowest point in hell, making it impossible for the investors to withdraw with profits, and they might not even be able to break even.

What's even more terrible is that Xiao Yu has completed the gambling agreement. He is completely free from any constraints and restrictions in Prism Technology and has absolute control. His word is final.

In this situation, it would be too easy for Xiao Yu to break through the stock price. It is very difficult to make a company bigger and stronger, but it is too easy to bring a company down.

At around 10 o'clock in the morning, Zhou Baichuan was still happily calculating that he expected to make at least 200 billion from Prism Technology this time. In the long run, an upper limit of 500 billion was not impossible. With this deal, Penghui Capital could expand its scale to the billion level.

Not only has the plan completely failed, but the company has also incurred a loss of 20 to 25 billion yuan, which makes a total of 225 billion yuan.

It's such a huge loss that I feel like I'm suffocating and my heart is about to break.

The most serious thing was the loss of 25 billion yuan in cash flow. Penghui Capital had a total cash flow of about 40 billion yuan, and two-thirds of it was gone in an instant, which directly led to problems with Penghui Capital's entire risk control system.

Many investment opportunities that could have been taken in the future may have to be abandoned or handed over to others due to the cash flow loss of 25 billion yuan.

This fall was really big, definitely a serious injury, it will take at least three to five years to recover.

The most difficult thing is that today's show-off-level operation of giving away a head is simply a great shame. Where will I put my face if this gets out? I will be laughed to death by my colleagues in the future.

Thinking of this, Zhou Baichuan felt a black screen in front of his eyes and almost fainted from anger.

At the same time, the situation of several other financial institutions was not much better. Upon learning about the board’s resolution, they immediately reacted on the spot and also immediately asked their traders to cancel orders and close their long positions.

……

At 12:16 p.m., Prism Technology suddenly released an announcement at noon:

[Announcement on Termination of Planning of Major Asset Reorganization and Withdrawal of Application Documents]

The content of the announcement is relatively long. The general meaning is that, in view of the significant changes in the recent market environment compared to the beginning of the planning of this restructuring, combined with the current situation, the actual situation of the company and future development judgment, the conditions of this transaction have changed significantly.

After careful study and friendly negotiation, the board of directors agreed that the company would terminate the restructuring and apply to the exchange to withdraw the relevant application documents for the restructuring.

At the same time, in accordance with the provisions of the "Management Measures for Major Asset Restructuring of Listed Companies" and other laws, regulations and normative documents, the company promises not to plan any major asset restructuring matters within at least one month from the date of disclosure of this announcement.

The company's board of directors deeply apologizes for the inconvenience caused to investors by the termination of this transaction, and expresses sincere gratitude to the investors who have been paying attention to and supporting the company's development over the long term.

The announcement reads:

The Board of Directors of Linzhou Prism Technology Co., Ltd.

July 27, 2021.

……

(End of this chapter)