Vicious dogs in Hong Kong, entrepreneurs practicing evil cultivation

Kowloon Stock Exchange, inside the General Manager's office.

"Chairman Chen, we're from the same clan, no need to be so polite..."

"What do you speak? Just call me Uncle Fen, thank you for your kindness!"

“…………”

Nowadays, the four stock exchanges are going to great lengths to compete for listed companies, shareholders, and customers, and Chen Guanjiang, who holds a massive amount of HK$1.5 million, is a veritable god of wealth.

Surprisingly, Chen Guanjiang, who obtained financing from Bank of East Asia, did not choose Far East Club as his first choice, but instead came to Kowloon Club and hired ten brokerage firms to buy stocks.

The massive sum of HK$1.5 million, exceeding the total daily trading volume of four exchanges, was enough to make Chen Pufen ecstatic. He immediately pulled Chen Guanjiang to his office and personally brewed him tea.

"Ah Jiang..."

Chen Pufen, unable to hide his worry, said, "I see you haven't sold your Hong Kong Antenna stock yet. How high do you think it will rise?"

"Judging from the situation, breaking 12 today should be no problem." Chen Guanjiang picked up his teacup, took a sip, and smiled as he narrowed his eyes.

An ordinary scammer might get excited after swindling tens of thousands, or ecstatic after swindling hundreds of thousands, but they probably wouldn't be so happy after swindling millions.

How much did Chen Pu defraud?

Based on a share price of HK$10.2 per share, with a total share capital of 5000 million shares and an issuance of 2500 million shares, the market capitalization would be HK$2.55 million!

Of course, Chen Pufen didn't make that much money. He used a lot of his shares to dump them on the first day and cashed out several million Hong Kong dollars.

Even though he himself did not hold any shares, Xiangjiang Antenna was still listed on the stock exchange, and its stock price was still rising rapidly. This rate of increase had already frightened Chen Pufen.

Given the current scale of Xiangjiang Antenna, once the financial bubble bursts, it will leave a hole of at least several hundred million Hong Kong dollars, and the situation is already developing in a direction that is out of control.

"Is there any way to help suppress the stock price?"

Chen Pufen's words were clearly pointed; even a fool would know how to suppress stock prices.

What are some more direct ways to do this besides selling stocks? If a certified public accountant doesn't even know this, how can they run a stock exchange?

At the subscription conference, Chen Guanjiang's Sniper Capital subscribed for 100 million shares and also bought a large number of antenna stocks on the first day. According to the estimates of his brokerage firm, he should hold 500 million shares.

Chen Pufen was implying that he had made enough money and it was time to sell his shares to help suppress the stock price.

Chen Guanjiang pretended not to understand, and after thinking for a moment, said, "How about releasing some bearish news?"

Chen Pufen's face immediately darkened...

This was stated at the time of the IPO.

The company has just been established and hasn't even started operating yet. What negative news could they possibly reveal? They can't exactly say that the R&D progress is stalled, can they?

What obstacles could a company face after only one week on the market?

If this is exposed, investors might feel that the requirements for R&D are too demanding, and such a serious R&D spirit could even boost the stock price.

If you frankly admit that the antenna is just an iron wire, it is not the same as admitting to fraud. Not only do you dig your own pit and jump in, but you also have to light a fire. You are not satisfied until you jump into the fire pit.

"Is there really no other way?" Chen Pufen said still unwilling to give up.

"have…"

A glint of shrewdness flashed in Chen Guanjiang's narrowed eyes: "Uncle Fen can have the brokerage firm secretly manipulate the market by selling off the shares released by retail investors to drive down the stock price."

It is true that the Hong Kong stock market adopts a T+0 system, which means that you can buy and sell on the same day without waiting for the transaction to be settled. This is also known as "same-day trading".

but!

The actual transfer of funds and stocks is T+2 or even longer. That is, the funds are settled after the stock is purchased on the same day, but paper shares take two days or even longer to be received.

So, who holds the "paper shares" during this period? Of course, it's the intermediary that facilitates the buying and selling between the two parties—the brokerage firm!

Whom do brokerage firms listen to? The stock exchange, of course!

Hong Kong Antenna was listed only on the Kowloon Club, and all transactions were completed on the Kowloon Club. Chen Pufen could have brokerage firms sell antenna shares within the trading period for their clients, thus driving down the share price.

However, Chen Pufen's face darkened even more after hearing this...

Such an operation is definitely against the rules. If the stock price is driven down, you can still make some money, but if the stock price soars, wouldn't you be trapped?

In theory, while holding a client's paper shares, a brokerage firm can use the client's paper shares to conduct unlimited trading, only needing to return the paper shares to the client within two days or longer.

In fact, some brokers do this, taking advantage of the information asymmetry between the two parties to profit from the price difference. Essentially, it is a behavior of concealing information from clients while forcing them to gamble against each other.

If the brokerage firm settles the sale with the client at HK$10.2 per share, and the price rises to HK$13.2 per share by the due date, the brokerage firm will have to make up the HK$3 difference. No one would do that!

Chen Pu gave Chen Guanjiang a strange look, knowing that this little mad dog was trying to tell him that unless he was willing to bear the losses for him, he shouldn't even think about getting him to sell during the stock price surge.

"Acquisition of 18334 shares of Henglong Properties..."

"Acquisition of 8247 shares of Cheung Kong Holdings..."

"Acquisition of 9862 shares of Lixing Development..."

"Huamei Real Estate (3359 shares)..."

“…………”

One broker after another came to report enthusiastically that Chen Guanjiang's massive funds had given them a huge windfall.

You can earn 2.5% by buying and another 2.5% by selling.

Regardless of whether Chen Guanjiang makes a profit or a loss, they will each earn 2.5% and 2.5% respectively.

They can also take another 2.5% from both the seller and the buyer, a typical case of "taking from both sides with one mouth".

Chen Pu analyzed the reports and concluded that all the stocks Chen Guanjiang bought were pure real estate stocks, not real estate companies involved in other businesses.

Of course, this did not attract Chen Pufen's attention, who thought that Chen Guanjiang was optimistic about real estate stocks with actual assets.

What puzzled Chen Pufen was that Chen Guanjiang had clearly taken out a loan through the Li Peicai family, and it was only because of the Li Peicai family's influence that Jian Yueqiang provided five times leverage support.

It is impolite to give gifts without receiving them in return.

Since it was a favor from the Li Peicai family, this money should have been used to buy stocks at the Far East Club, so why did they choose to buy them all at the Kowloon Club?

With the recent relaunch of Chen Guanjiang's "Wang Gou Daily," a large amount of financial news requires brokerage firms to write articles for it. Chen Pufen only thought that it was to curry favor with the brokerage firms of the Kowloon Association.

After all, the Far East Club's brokerage firms are really busy; where would they find the time to give interviews or write financial news?

only…

HK$1.5 million is indeed too much. Kowloon Club's daily trading volume is only around HK$1700 million. This amount of money is enough to drain Kowloon Club's circulating shares instantly.

However, it's not too bad.

With such a massive amount of funds, it's impossible to devour it like a hungry dog ​​pouncing on its prey, as that would cause the stock price to surge rapidly, which would be detrimental to the acquisition. It would take at least half a month to complete the acquisition.

Although there is a short-term shortage of shares in circulation.

However, Kowloon Club also receives HK$300 million in exchange settlement fees, and an additional 0.02% settlement fee on each sale. This is the fundamental reason for the exchange's growth!