At 7:00 AM, the Hang Seng Index in Hong Kong reached 12,300 points.
At 8 a.m., the Hang Seng Index rose another 50 points.
At 9 a.m., the Hang Seng Index rose to 12,415 points.
At 10 a.m., the Hang Seng Index rose another 80 points.
At 11:00 AM, the Hang Seng Index reached 12,520 points.
At noon, when the Hang Seng Index rose to 12,559 points.
Liu Xiaobao exclaimed, "Now!" and then decisively made his move, investing all his funds in the market's decline and leveraging it five times!
Hu Ruoling, who had been watching the market index rise steadily, was stunned when she saw Liu Xiaobao's "short selling" move.
Of course, Hu Ruoling's eyes also showed strong worry. She was afraid that if Liu Xiaobao made a move, he would turn the 20 billion yuan that the old man had asked her to bring into ashes.
But just five minutes later, a miraculous scene unfolded.
The Hang Seng Index, which had been on an upward trend, suddenly began to decline sharply.
First, it dropped from 12,599 points to 12,400 points, then dropped to 12,150 points a minute later, and then dropped to 11,800 points five minutes later.
In just half an hour, the Hang Seng Index fell to 10,600 points.
The speed of this decline is like a sudden fall from a building; the rate of drop is terrifying, and it is far from over, still ongoing.
As the overall market index fell, all stocks listed on the Hong Kong Stock Exchange were affected, and their share prices began to decline.
Seeing the stock market fluctuations, Hu Ruoling, who had previously questioned Liu Xiaobao, and the other traders were all stunned.
At this moment, no one questioned Liu Xiaobao anymore; there was only admiration and curiosity.
I admire Liu Xiaobao's foresight in predicting today's astonishing turn of events, and I'm curious how he calculated that the Hong Kong stock market would begin to reverse its course today.
Actually, Liu Xiaobao didn't know the exact time Morgan Stanley International Fund would make its move today, but he had an advantage that others didn't: he knew the exact date and the index level of the market.
Liu Xiaobao knew that today was the turning point for the Hong Kong stock market, and that 12,599 points was the highest point in the history of the Hong Kong stock market.
These were not things Liu Xiaobao deliberately investigated, but rather things recorded in his textbooks when he was in college.
So, without knowing the exact time, Liu Xiaobao could only sit in front of the computer and watch until he saw the Hang Seng Index rise to 12,599 points before he immediately made his move.
However, Liu Xiaobao did not show any abnormality at this time. He just stared at the computer screen and then gave an instruction to Hu Ruoling behind him without turning his head.
“Tell them not to let their guard down, keep a close eye on the fluctuations of those stocks, and if the price of any stock rebounds, sell it immediately and buy other stocks instead. If the price of a stock does not rebound, leave it alone and wait for it to fall to its lowest point.”
Hu Ruoling was startled by Liu Xiaobao's words. Without asking any further questions, she immediately followed Liu Xiaobao's instructions and relayed them word for word to the traders.
After hearing that the order came from Liu Xiaobao, none of the traders questioned his judgment anymore.
The traders immediately followed Liu Xiaobao's instructions, constantly flipping through the stock pages and intently watching the rise and fall of all the stocks.
After delivering the message, Hu Ruoling returned to Liu Xiaobao's side to see what he would do next.
However, Hu Ruoling discovered that since Liu Xiaobao had used all his money to buy stocks, he hadn't done anything else, just sitting quietly in front of the computer looking at the screen.
Although she was curious about why Liu Xiaobao was doing this, Hu Ruoling had already witnessed Liu Xiaobao's abilities firsthand, so she didn't ask any more questions and just waited quietly behind him.
Time passed second by second, and the Hang Seng Index continued to decline.
By 1 p.m., in just one hour, the Hang Seng Index had fallen below 10,000 points, dropping to 9,600 points.
Just then, He Chaoqiong brought lunch to everyone, and she even personally delivered two lunches to Liu Xiaobao and Hu Ruoling.
"How's it going, honey? The Hong Kong stock market made a huge comeback today. Have you taken any action yet?"
Chapter 154 Earned over 200 billion in just over two hours (Please subscribe)
"It's already underway, don't worry, everything is under control!"
Liu Xiaobao didn't hide anything from He Chaoqiong, but he didn't go into details either, only giving her a general overview.
Just like Liu Xiaobao said before, even when he eats, he eats in front of the computer, and even while eating, he is staring at the computer screen.
Seeing Liu Xiaobao's focused expression, He Chaoqiong didn't ask any more questions, even though she wanted to know more details.
After Liu Xiaobao finished eating, He Chaoqiong personally cleared away his lunchbox, then quietly turned and left.
Although Liu Xiaobao noticed He Chaoqiong's departure, he didn't show any reluctance and continued to stare intently at the market index.
Until 2:30 p.m., Liu Xiaobao remained motionless, as if he were in deep meditation.
Liu Xiaobao finally made a move when the Hang Seng Index fell all the way to 7,963 points.
Liu Xiaobao, without even turning his head, gave Hu Ruoling another instruction.
"Go tell them to cash out all their stocks, not a single one, and then go into standby mode!"
Hu Ruoling didn't ask any further questions, responded, and turned to relay Liu Xiaobao's instructions.
Just as Hu Ruoling left, Liu Xiaobao himself also took action. He cancelled his previous short-selling orders and withdrew his funds.
As for why Liu Xiaobao only took action when the Hang Seng Index fell to 657, it's simple: it was something recorded in a textbook Liu Xiaobao had read before.
However, the book only recorded the percentage drop in the Hong Kong stock market index on January 4, 1994, which was 36.8 percent. So the specific figure of 7,963 points was calculated by Liu Xiaobao himself.
It was precisely because Liu Xiaobao knew the exact point of the day's biggest drop that he was able to precisely time his order to close and exit the market; it wasn't that Liu Xiaobao was truly able to predict the future.
After Liu Xiaobao withdrew his short-selling order, he earned a profit of 36.8%.
His initial investment of 103 billion, plus the leverage he used, totaled 618 billion including the principal. Now, with a 36.8% return, it has become 845.424 billion.
After repaying the 515 billion borrowed with five times leverage, Liu Xiaobao's 103 billion invested has now become 330.424 billion.
Short selling and buying are essentially the same thing, except that buying is betting on an increase, buying first and then selling, while short selling is betting on a decrease, selling first and then buying.
(abcj) 'Buy on the rise' might be easier to understand. As long as you buy at a low price and sell at a high price, you can make a profit from the price difference.
In fact, short selling is the same, except that you sell at a high price first and then buy at a low price.
For example, if you bet on a stock falling from a price of ten yuan, and then place the order to cash out when it falls to nine yuan, the one yuan difference in price is your profit. This principle applies to both the overall market and individual stocks.
The difference is that buying stocks and watching their rise and fall makes money from brokerages and individual investors, while buying the overall market index and watching its rise and fall makes money from the stock exchange.
When Hu Ruoling returned after relaying the instructions, she saw Liu Xiaobao collect the funds and the amount in the account.
Seeing that Liu Xiaobao had earned more than 200 billion yuan in just two and a half hours, Hu Ruoling was incredulous and speechless with shock.
And this doesn't even include the money earned by those seventy traders!
After Hu Ruoling came to her senses, she sincerely said something to Liu Xiaobao.
"President Bao, you've earned over 220 billion in just over two hours! You're amazing! That's equivalent to our country's annual fiscal revenue. No wonder our old leader had such faith in your abilities. I've truly been amazed today, and I'm completely impressed."
Liu Xiaobao didn't show any smugness, because while others might not know, he himself did. He dared to do this entirely because he had the advantage of being a 'prophet'.
Otherwise, under normal circumstances, very few people would buy when the market is falling, not even those who study finance.
Even Liu Xiaobao himself wouldn't dare to short the market index, let alone patiently wait for it to drop by more than 4,000 points—that's something he simply couldn't imagine.
If it were the previous times he made money in the stock market, Liu Xiaobao wouldn't be modest; that was his true skill. But this time... Liu Xiaobao wouldn't dare to attribute it to his own ability.
So even though he earned more than 200 billion in just over two hours, Liu Xiaobao didn't think he was anything special.
At this moment, Liu Xiaobao stood up from the computer, smiled faintly, and said something to Hu Ruoling.
"This is just the appetizer; the main course is yet to come!"
After saying that, Liu Xiaobao walked over to the traders.
According to what Liu Xiaobao saw in the textbook, after the "Morgan Shake-up" on January 4th, the Hong Kong stock market would continue to fluctuate for a year, eventually falling to a low of 6,967 points on January 23rd of the following year.
This one-year cycle is too long; Liu Xiaobao will no longer buy into the market when it's falling.
Therefore, from today onwards, Liu Xiaobao can no longer just keep buying on dips, but must analyze stock market data and rely on his own abilities to bet on whether the market will rise or fall, following the lead of Morgan Stanley International Fund.
This is why Liu Xiaobao had the traders on standby; it wasn't that making this one profit would end the war.
When Liu Xiaobao approached the traders, he first glanced at them and then spoke casually.
"You've all seen the drop in the Hong Kong stock market today, right? But don't think that the Hong Kong stock market will never recover. Next, the brokerage firms and shareholders will definitely do their best to recover their stock prices. So from today onwards, the Hong Kong stock market will enter a normal upward and downward trend. What you need to do is to unconditionally obey my instructions to buy and sell. Do you all understand?"
"Understood, Mr. Bao!"
The simultaneous agreement of seventy traders on this single floor created quite a stir.
Having spent several days together, these traders never addressed Liu Xiaobao as "Boss Bao."
But after that previous short-selling battle, these traders had witnessed Liu Xiaobao's prowess, and their current address of "Boss Bao" was genuine, a sign of their respect for him.
Liu Xiaobao could also see the admiration these traders had for him.
Liu Xiaobao didn't try to be modest at this moment. He nodded in satisfaction, then turned around and went back to the private office next door, sitting down at the computer he was using.
Hu Ruoling naturally followed Liu Xiaobao back to the private office, and she said with a smile.
"Boss Bao, those traders were all questioning you this morning, but now they're completely convinced of your abilities!"
Liu Xiaobao smiled indifferently.
"None of that matters, as long as they follow orders completely. That's all for now, Miss Hu. Now is the time to really use my brain, I need to focus more!"
Upon hearing this, Hu Ruoling immediately nodded and remained silent, not daring to interfere with Liu Xiaobao's trading.
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