Rebirth of the Hong Kong Millennium Conglomerate
Chapter 56 Preparation for the Stock Market Crash
In the conference room of Qian Gu Securities, Zhang Zeyang sat at the head of the table. What he was about to do was a grand plan that would shake up Hong Kong's financial world: to orchestrate the stock market crash that was about to occur in Hong Kong.
He clearly remembers that the frenzy in the Hong Kong stock market quietly began in 1970.
At that time, the Hang Seng Index reached a high of only 211.91 points, and the total market capitalization of the entire stock market was just HK$60.56 billion.
But no one could have predicted that in just two years, by 1972, the total market value of the Hong Kong stock market would skyrocket, breaking through the 10 billion and 30 billion mark, and finally settling at an astonishing 429.08 billion Hong Kong dollars.
Accompanying this was the Hang Seng Index's soaring rise, with countless stock investors going crazy over the myth of "getting rich overnight." Street vendors put down their loads, housewives clutched their shopping baskets, and even school teachers couldn't resist investing their savings in this frenzied game.
The peak of the frenzy was frozen in the spring of 1973.
The Hang Seng Index climbed to a historic high of 1774.96 points without any suspense. Amid the jubilant celebrations, no one realized that this was the last glimmer of light on the edge of a precipice.
Zhang Zeyang's fingers tightened slightly; he knew all too well what was about to happen.
In 1973, a scandal involving the forgery of stock by certain companies was exposed.
The moment the truth was revealed, panic spread like a plague, and countless investors were jolted awake, with a wave of selling sweeping across the entire stock market.
It wouldn't have triggered a stock market crash otherwise, but a series of policies subsequently introduced by the Hong Kong government became the last straws that broke the camel's back.
Imposing a capital gains tax on stock transactions directly cuts off speculators' profit-making opportunities.
The implementation of rent controls has further strained the already tight market liquidity.
The final tightening of credit cuts cut off the lifeblood of the stock market.
Every policy introduced is like a heavy kick to a already shaky stock market.
In just over a month, this sharp drop unfolded in full force.
From the glorious peak of 1774.96 points on March 9th to 816.39 points at the end of April, the nearly halved drop caused countless people to lose everything.
But this was not the end; the downward trend was like a flood breaking through a dam, completely unstoppable.
On the last day of 1973, the Hang Seng Index had plummeted to 433.7 points, and the once-proud wealth myth had been completely reduced to a mess.
But even heavier blows were yet to come.
The global oil crisis has directly strangled the world economy, and Hong Kong is naturally not immune.
The economy then declined, factories shut down, shops closed, and unemployment soared.
Against this backdrop, the Hong Kong stock market in 1974 plunged into an abyss.
The Hang Seng Index fell, fell, and fell endlessly until December 10th, when it broke through everyone's psychological defenses and fell to 150.11 points—a bottom that had not been seen since 1970.
Countless people lost everything in this stock market crash, and news of people jumping off buildings frequently appeared in the media. The once bustling stock exchange became a graveyard of despair.
But for Zhang Zeyang, this impending storm is a once-in-a-lifetime opportunity.
What is hell for others is heaven for him.
With a creak, the conference room door was gently pushed open, interrupting Zhang Zeyang's thoughts.
He looked up and saw Su Qing walking in quickly, carrying a thick stack of documents.
"Mr. Zhang, it's all done." Su Qing placed the documents on the conference table, let out a long sigh, and her voice carried a hint of barely perceptible fatigue.
"I selected a total of 27 traders from within the company and from several partner institutions. Each of them is highly experienced, with top-notch psychological qualities and trading skills."
Zhang Zeyang nodded, his gaze falling on the list Su Qing handed him.
The list was densely filled with everyone's names and resumes. He quickly glanced at it, then closed the list, a hint of satisfaction flashing in his eyes. "Thank you for your hard work, Su Qing."
"Of course." Su Qing smiled, and just as she was about to say something more, the conference room door was pushed open again.
Chen Mo walked in, looking travel-worn. He went straight to Zhang Zeyang and said in a deep voice, "Mr. Zhang, I'm here. What's the next step?"
Zhang Zeyang stood up and pointed to the documents Su Qing had brought: "Su Qing, make a copy of that confidentiality agreement and give one to everyone."
"Okay." Su Qing didn't dare to delay and immediately took the documents and headed to the copy room next door.
Before long, the confidentiality agreements were neatly stacked on the conference table.
Zhang Zeyang gestured to Su Qing to distribute the agreement, while the selected traders sat upright in the conference room, each with a different expression.
They were all seasoned veterans in the financial world, and judging from the company's various actions, they knew that what was coming next was no small matter.
"Everyone," Zhang Zeyang's gaze slowly swept over the crowd, "I believe everyone can understand this confidentiality agreement. It clearly states that every word heard here today, every decision made, must remain confidential. If even a single word is leaked, you will bear the consequences."
The traders looked at each other, then picked up their pens and signed their names without hesitation.
Having made it this far in this industry, they understand the importance of secrecy better than anyone else, and they know that such a large-scale operation by the company must indicate a major move to come.
After signing the confidentiality agreements, Chen Mo carefully collected them one by one. He checked them meticulously to ensure they were correct before turning and leaving with the agreements in his arms.
The conference room door closed slowly behind him, making a dull thud, as if shutting out all the noise from the outside world.
At this moment, Zhang Zeyang looked directly at everyone present.
"I've gathered everyone here today because I have an important matter to entrust to you."
He paused, then continued, "What you need to do next is—short the Hong Kong stock market."
These few words were like a thunderclap, exploding in the calm conference room!
"What?!"
Short selling? You're kidding, right?
"The stock market is red-hot right now, should we short it?"
In an instant, the conference room erupted in chaos. The traders could no longer maintain their composure and exclaimed in surprise.
Their faces were filled with disbelief, and some even stood up instinctively, as if wondering if they had misheard.
It's important to understand that the Hong Kong stock market is currently at its peak. The Hang Seng Index is soaring, and new wealth stories are being created every day.
Countless people are scrambling to get into the stock market to get a piece of the pie, and even beggars on the streets are talking about which stock has risen by how much.
Short selling at such a critical juncture?
A middle-aged trader couldn't help but advise, "Why don't you reconsider? Shorting now is too risky."
Another, younger trader nodded repeatedly: "Yes, everyone's going long right now. If we go against the trend, I'm afraid we might..."
Questions and dissuasion arose one after another, and everyone's face was filled with deep worry.
They are all seasoned veterans who have been in the stock market for many years, and they know all too well how risky short selling is.
Especially in such a frenzied market, short selling is like dancing on a knife's edge; a slight misstep can lead to utter destruction.
Zhang Zeyang calmly observed the uproar before him, without showing the slightest panic on his face.
He had anticipated the public's reaction long ago; after all, not everyone can stand at the height of the future and overlook the impending stock market crash.
He raised his hand to signal everyone to quiet down. Once the noise in the meeting room had subsided, he slowly spoke, "I know your concerns, but you don't need to worry about that. Just follow the company's instructions!"
Zhang Zeyang's words instantly silenced the previously noisy conference room.
The traders looked at each other, their doubts gradually fading and replaced by intense curiosity.
Looking at Zhang Zeyang's calm and expressionless face, a thought simultaneously arose in their minds—
Could it be that there's some inside story they don't know about?
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