The Great Sage Returns from Ten Years of Imprisonment
Chapter 424 Secrets Must Be Kept Secret
Upon hearing that Ling Yun was willing to invest alone to take over most of the risk exposure released by ZhongX Taifu, and was full of confidence in earning high returns, the senior executives of ZhongX Group immediately breathed a sigh of relief.
At the same time, everyone present, including them, gained a new understanding of Ling Yun's formidable personal strength and immense wealth.
With his ability to readily provide hundreds of billions of Hong Kong dollars to absorb the enormous risk exposure released by China Pacific Group, how many of Hong Kong's super-rich can match such a strong cash flow?
It seems the rumors were true; this young man is indeed one of the biggest winners of this global financial crisis!
Everyone muttered to themselves, their eyes filled with envy.
Then look at Ling Yun, who continues to talk eloquently.
"As Chairman Rong said before, ZhongX Taifu's stock cannot be suspended indefinitely and should resume trading by the beginning of next month at the latest. So let's talk about how to deal with the resumption of stock trading."
"The specific response strategy should be divided into two or three aspects: China Pacific Group itself, its parent company China Pacific Group, and possible external support."
"Without a second thought, the day China Pacific Insurance's shares officially resume trading, numerous international investment banks and Hong Kong short sellers will swarm in like sharks smelling blood!"
"This day should have happened long ago, but it was abruptly interrupted by the sudden suspension of trading in ZhongX Taifu's stock. These guys have been holding back for two months, and their short-selling offensive will only be more intense on the day trading resumes."
"I can imagine that they will use the pretext of ZhongX Taifu's huge losses in derivatives, concealment of information, and internal governance failures to collectively short the stock and drive down the company's share price."
"Outside the Hong Kong stock market, foreign counterparties will simultaneously tighten credit and demand additional margin, coupled with the short-selling wave in the stock market, putting China Pacific Group under double pressure."
"At the same time, many financial media outlets will follow up, including various rumors and gossip, artificially creating panic about debt defaults, dividend suspensions, and the halt of iron ore acquisition projects..."
"hiss!"
Everyone gasped in surprise, stunned by Ling Yun's analysis!
After careful consideration, everyone quickly came to a conclusion!
Lingyun's analysis was absolutely correct. His grasp of the market situation and his profound understanding of the psychology of numerous international investment banks and countless short sellers were truly insightful!
Those profit-driven international investment banks and countless short sellers, faced with such a golden opportunity, will not hesitate for a moment. They will surely swarm in and frantically bleed China Pacific Insurance!
But little did they know, someone had already foreseen all of this and was laying a trap for them!
"Slap slap slap"
A round of applause suddenly broke out in the room, coming from Chairman Rong.
His voice rang out as he clapped.
"Your analysis is very accurate and insightful. What you've described could very well be the predicament our company faces when it re-examines its stock price. We'll be targeted by countless short sellers at that time."
"From our company's perspective, what should we do now to avoid being attacked by everyone when the stock resumes trading and to prevent the stock from crashing? We can't afford that price."
Ling Yun looked at Chairman Rong, smiled and nodded, and then offered a solution.
"If ZhongX Taifu wants to resolve this crisis, it needs to do the following: First, the company's major shareholder should immediately issue an announcement to increase its shareholding."
"The major shareholders mentioned here include Chairman Rong himself, as well as ZhongX Group. We can discuss the specific amount of shareholding increase later. The purpose is to send a signal to shareholders to boost their confidence."
"Secondly, before the stock resumes trading, issue an announcement publicly disclosing the multi-billion-yuan bailout plan of ZhongX Group, clarifying that the company has no risk of bankruptcy, and alleviating market panic regarding default."
"Thirdly, we must continuously and synchronously disclose the Australian dollar exchange rate, daily unrealized losses on derivatives, and the company's cash flow situation to improve information transparency. Only in this way can we increase investor confidence."
"Article 4: Clearly define the asset quality of the Western Australian iron ore mine, clarify that its core assets are unaffected, its long-term operating fundamentals are sound, and it will not be affected by losses from financial investments..."
Only Ling Yun's voice remained in the conference room, with everyone else staring intently at him and listening attentively.
Hearing his strategies, any professional present was deeply shocked and full of admiration.
They quickly understood that this was the best solution they could think of at the moment, the most beneficial solution for China Pacific Group, and the most likely solution to stabilize the stock price. It was a comprehensive solution.
The other non-financial professionals, such as Director Peng and Chairman Wang, were also amazed by Ling Yun's plan.
Although they don't understand financial investment or financial derivatives trading, they do understand management, and each of them is a senior manager with extensive experience.
From Lingyun's response plan, they discerned a high degree of certainty that it could help ZhongX Taifu quickly escape the crisis.
Chairman Rong, who was directly involved, was beaming with excitement.
Just then, Ling Yun finished explaining ZhongX Taifu's strategy for dealing with the resumption of stock trading.
As soon as he finished speaking, Chairman Rong was about to ask a question.
As it turned out, someone was faster than him, and Chairman Wang couldn't wait to ask:
"Lingyun, tell me again about the role ZhongX Group played in this operation, and how we can cooperate to stabilize ZhongX Taifu's stock price?"
"And what about the external support you mentioned? What kind of support can they provide?"
As he asked these questions, everyone turned to look at Ling Yun.
Chairman Rong, who was about to be born, also stopped talking and prepared to listen to what Ling Yun had to say.
Ling Yun glanced at everyone present, then looked at Chairman Wang, and gently shook his head with a smile.
"Chairman Wang, I have answers to the questions you are concerned about, but I cannot disclose them here. These strategies need to be kept strictly confidential."
"The details can only be released gradually before and after the operation begins; some things must even remain confidential at all times!"
"In view of this, I suggest we change the venue for our conversation, such as the lounge next door. I will designate the participants for this small-group discussion."
"Besides you and me, Chairman Rong, Director Peng, and two representatives from the State-owned Assets Supervision and Administration Commission and China X Group are allowed to attend; no one else is permitted."
At this point, he looked at the other people present and then changed the subject.
"Don't overthink it. There are still nearly two weeks until ZhongX Taifu's stock resumes trading. That's plenty of time for a lot to happen."
"I made this decision for confidentiality reasons. In the financial investment field, especially when the competitors are 13 international investment banks, this is necessary."
Upon hearing this, those who were initially indignant fell silent.
They knew in their hearts that there was nothing wrong with what Ling Yun was doing. Things cannot be done without secrecy; this principle couldn't be simpler!
This is Hong Kong Island, where countless people believe in the law of the jungle where profit is paramount. There are many people who would even betray their own parents for money, let alone a company!
Those 13 international investment banks, including Morgan Stanley, have been operating in Hong Kong for many years and are very well-informed. How could they not be careful?
After considering all this, everyone had no further objections to Ling Yun's actions!
It's perfectly normal that I wasn't the one making the decision and therefore wasn't qualified to participate in this small-scale meeting!
Chairman Wang and Chairman Rong, who held the decision-making power, naturally understood this principle as well.
They exchanged a quick glance and instantly reached an agreement.
"Okay, Lingyun, let's go to the lounge next door and hear your solution."
Upon hearing Chairman Wang's words, Director Peng and Chairman Rong both stood up.
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