Rebirth of the Financial Crisis Sweeping the World

At this moment in St. Paul's Middle School, Wang Guanxi laughed.

He sold 27.5 million shares of Hengda Auto, but the stock price did not fall but rose. Obviously, someone was specifically against him on Hengda Auto's stock.

He thought to himself, "The stocks I borrowed were borrowed by Wing Hang Securities from Wing Lung Securities."

"It must be someone from Wing Lung Securities Co., or a friend of Wing Lung Securities Co., who is stabilizing the stock of Hengda Auto, doing the right thing with me, and making it clear that it will drag me to death and charge interest every day."

Borrowing stocks to go short is to charge interest, which is obviously to play with your own wool.

"But it's okay, just wait and see"

"Wing Lung Securities, let's wait and see!"

"This time I lost you"

The 2,750 shares of Hengda Auto that Wang Guanxi shorted were borrowed from Wing Lung Securities Company through Wing Hang Securities. When the stock price of Hengda Auto plummeted, he was returning the same number of shares to Wing Lung Securities Company.

For example, Wang Guanxi sold 27.5 million shares at 1.20 yuan per share, worth 33 million.

At that time, if the share price of Hengda Auto plummeted to 0.6 yuan per share, Wang Guanxi closed his position, which was equivalent to buying 27.5 million shares in the market and returning them to Wing Lung Securities Company.

At that time, the 27.5 million shares were only worth 16.5 million Hong Kong dollars, and Wing Lung Securities Company lost 16.5 million.

In fact, by shorting the stock of Hengda Auto, Wang Guanxi is betting against Wing Lung Securities Company.

Naturally, Wing Lung Securities Co. would not want the share price of Hengda Auto to fall, because if the share price of Hengda Auto fell sharply, Wing Lung Securities Co. would lose a lot of money.

The interest they collected from Wang Guanxi was not enough to cover it.

If the share price of Hengda Auto rises sharply, while the shares held by Wing Lung Securities appreciate in value, they will still charge Wang Guanxi’s interest, and the longer the time drags on, the more the interest will be, and the more wool will be collected.

Wang Guanxi naturally knew about the small abacus of Wing Lung Securities Company.

Is the stock price of Hengda Auto now stable for a small securities company?

Just wait and see!

In the evening, Wang Guanxi watched the news.

[Fortis Group (Fortis) lost a huge $4 billion in U.S. stocks, a joint venture fund with Bear Stearns Bank went bankrupt, and its stock price plummeted to a record low]

Fortis is an international financial services group active in the world of insurance, banking and investment, and one of the largest financial institutions in Europe.

[Ping An Fund Dips Fortis Group Loses 700 Million Euros]

The Ping An Fund was also entrapped. After all, it was Bear Stearns Bank's fault.

Although the Bear Stearns Bank was acquired by Morgan Bank at the price of cabbage, the shock wave it caused is still fermenting.

At this moment, Hao Yumao, senior vice president of the asset management department of Ping An Fund's branch in Hong Kong, intends to sell stock assets of some listed companies to supplement cash flow.

They have selected shares of several public companies that they intend to sell on the stock market.

Among them is Hengda Automobile.

"Mr. Hao, the stock price of Hengda Auto is still rising. Are we going to sell it?" a trader asked.

Hao Yumao nodded: "The stock price of Hengda Auto has come to an end, and the auto industry will definitely be sluggish in the second half of this year."

"Its stock price is still inflated, and it won't last long."

"Starting tomorrow, clearing its stock"

This Hengda Automobile is a company under the Hengda Group. This year, the housing prices in the mainland will definitely plummet once, because the real estate in the United States has collapsed, and it will soon spread to the world. The Hengda Group will definitely be hit by that time.

At present, Ping An Fund holds 500 million shares of Hengda Auto, temporarily valued at HK$650 million.

"Yes, Mr. Hao"

The next day, April 4th, Friday.

Hong Kong stock market opened.

Ping An Fund started selling shares in Hengda Auto.

1 million shares!

1 million shares!

･･･

The stock price of Hengda Auto fell steadily, and soon the share price of Hengda Auto fell from 1.30 yuan per share to 1.20 yuan per share.

Hao Yumao instructed: "Half the sales volume"

500,000 shares!

500,000 shares!

Wang Guanxi from St. Paul's Middle School looked at this scene and smiled.

There was no floating loss in his account, and he started to make a profit.

He knew that the share price of Hengda Automobile was going to plummet today, and there must be some big institutions selling its shares.

Continue the class.

·

Time flies, and the stock price of Hengda Auto was stabilized at 1.20 at this time, obviously institutions are increasing their holdings.

It should be the major shareholders of Hengda Auto, perhaps which fund company.

Hao Yumao: "Increase the sell-off"

"Yes, President" Everyone began to increase the selling.

2 million shares!

2 million shares!

··

After a short period of support, the stock price of Hengda Automobile began to plummet!

After the close of morning trading, it fell to 0.70 yuan per share

This morning, the share price of Hengda Auto plummeted from 1.30 yuan per share to 0.70 yuan per share, and the share price plummeted 46%.

And Wang Guanxi was very happy.

He shorted 27.5 million shares of Hengda Auto, and opened a position at 1.20 yuan per share, with a floating profit of 13.75 million.

Really cool.

At noon, it is very powerful to eat lunch.

Thinking of that Wing Lung Securities Company against him, it is estimated that the loss is now miserable.

Wang Guanxi was very proud and happy in his heart.

In the afternoon trading yesterday, he shorted the shares of Hengda Auto, but was blocked by Wing Lung Securities. They actually raised the stock price, making Wang Guanxi lose money in his account, and wanted Wang Guanxi to lose money, every day. Collect interest, pluck Wang Guanxi's wool, it's all right now.

The stock price plummeted, and Wing Lung Securities did not know how much it lost.

At this time, his phone rang, and it was Feng Shaokun from Yongheng Securities Company.

connected.

On the phone Feng Shaokun congratulated and said, "Mr. Wang, you are really a genius."

"You shorted the stock of Hengda Auto yesterday, and today the stock of Hengda Auto plummeted. God, I admire you."

He was surprised when Wang Guanxi suddenly asked him to short the shares of Hengda Auto, but for the intermediary fee and commission, he still did it. He borrowed the shares of Hengda Auto from Wing Lung Securities Company and asked Wang Guanxi to short.

Wing Lung Securities Company is also very happy, because shorting stocks is betting against them, and securities companies have never been afraid of retail investors.

This is good, the stock price plummeted 46%, and Wing Lung Securities suffered a huge loss.

At this time, Wang Guanxiqian smiled and said: "I'm just lucky, when the stock price falls below 0.50 yuan, I will close my position, buy stocks in the market, and return them to Wing Lung Securities Company."

"Then Wing Lung Securities has suffered a terrible loss this time, haha"

··

At this moment in Yonglong Securities Company, Wu Zhanhai's face was extremely gloomy.

They hold 60 million shares of Hengda Auto, and this morning at Hengda Auto, they lost 27.6 million on the books!

Just pissed him off.

"damn it!"

There must be big institutions selling like crazy!

He felt very unlucky to encounter such a thing.

If you can't pull Wang Guanxi's wool, you will be miserable.