Reborn Xiangjiang as a Tycoon

Chapter 176 Agreeing to Smash the Deal

The stock market opens in the afternoon.

Hutchison Whampoa's stock price fell sharply again, falling directly below the price of HK$4, and continued to decline.

This time, in addition to the Qi Dezun family selling stocks, there are also securities lending funds entering the market.

In fact, there were securities lending funds entering the market in the early trading, but fewer people entered the market. After looking at the institutions and funds all morning, it was already confirmed that a sharp drop in stock prices was unavoidable under the bad news. Therefore, during the lunch break, a lot of funds increased.

If you increase the amount of securities lending, you will sell a large number of stocks and prepare to buy them back when the stock price reaches a certain price, thereby making a profit on the price difference.

Margin lending is actually the use of leverage with securities firms. Financing is to increase the multiple of funds, enlarge the amount of funds, and use more funds to buy stocks, that is, to do long; securities lending is to borrow stocks from securities firms, and then transfer the stocks

Sell ​​it, wait for the stock price to drop to a certain price, then buy it back and return it to the brokerage, which is short selling.

Short selling in securities lending is the same as short selling in the options market, but the options market has an exercise time, the minimum is 30 days, 60 days, 90 days and other longer periods. Therefore, short selling in securities lending is actually better, because the longer the time, the greater the variables.

The bigger.

The reason why Li Jiacheng and others did not choose to short-sell through securities lending was because securities lending required borrowing stocks from brokers or banks, and the only company holding Hutchison Whampoa stocks in Hong Kong was HSBC. They were worried that borrowing a large amount of stocks from HSBC would leak the news.

It was noticed by Hutchison Whampoa or Lin Baicheng, so they chose to short-sell through the options market.

Short selling through the options market, although there is an exercise time limit, you can also agree on a price settlement with the counterparty in advance, and you do not have to wait for the exercise time to arrive before settling. In addition, as long as you keep confidentiality, the operation will not be exposed, and confidentiality

The aspect will be higher.

After the bad news about Hutchison Whampoa was exposed, whether those involved were institutions or retail investors, if these funds wanted to go short, they could simply sell their stocks through HSBC Securities Lending.

The Qi Dezun family simply sold stocks, but more funds belonging to institutions and retail investors were engaged in short-selling and short-selling stocks. The sharp drop in stock prices was due to the buying of funds from many parties such as Lin Baicheng, as well as a small number of bargain-hunting funds.

, otherwise the stock price will only fall more fiercely.

Lin Baicheng himself raised 100 million Hong Kong dollars in funds, Hutchison Whampoa used 100 million Hong Kong dollars for repurchases, and the cooperation between Lin Baicheng and Iwasaki Mineryu had 840 million Hong Kong dollars. Although the funds here have a large number of short-selling opponents in the options market, there are also

A lot of funds are buying stocks. In addition, funds from HSBC are also buying Hutchison Whampoa shares.

Therefore, despite the fierce drop in stock prices, Lin Baicheng and others were not worried at all and bought in all comers.

The further the stock price falls, the slower the decline will be, because the less profit can be earned from short selling, the fewer people dare to short sell, and the more people will enter the market to bargain for a rebound, and the stock market is actually a capital.

In a game between long and short parties, whoever has more money will be stronger.

On the Hong Kong Stock Exchange, Hutchison Whampoa is definitely the most beautiful stock today, attracting the attention of many investors.

In the VIP room, Li Jiacheng, Feng Jinxi, Nuo Bijian and Bob were watching the trend of Hutchison Whampoa's stock price and the price changes in the options market.

Hutchison Whampoa's stock price fell below HK$3.5, and the closer it got to the price of HK$3, the slower it fell.

Seeing this, Feng Jinxi said: "3 Hong Kong dollars is the previous low, and there is support here, so the decline will slow down now. Once this price can be broken down, more short-selling funds will join in, and the stock price will inevitably rise."

Ushering in a new wave of decline.”

Li Jiacheng said: "There has been so much rebound in the morning, and now there is support. Do you think it would be better to settle part of the short orders first?"

"Now it is clear that the short side has the advantage, and we will make a lot less money when settling now."

Bob immediately retorted that when the short side has the advantage, of course the settlement is better when the stock price is lower, so that the more money can be made.

Niu Bijian also said: "I also think it is better to wait until the stock price falls below 3 Hong Kong dollars before settling."

"Actually we can do this."

Feng Jinxi thought for a while and said to the three of them: "Let's first observe whether the stock price can hold at 3 Hong Kong dollars. If it can't, of course it's best. We will settle the short order based on the stock price trend. If the stock price can hold up,

According to the trend, we will use another sum of funds to sell stocks through securities lending and break the price of HK$3. At that time, there will definitely be a large number of follow-up orders, but we will take the opportunity to close the short orders."

"Although Hutchison Whampoa suffered a huge loss this time, the stock price fell below HK$3, leaving a total market value of about HK$1 billion. This price is about the same. No matter how much it falls, it will not fall much. The room for decline is limited, and it is not worth it anymore.

Adventure, what do you think?"

Bob immediately nodded in agreement: "Mr. Feng is indeed a professional. I will do as you say."

"I don't have any objection either."

Niu Bijian nodded, it was indeed better to do this. If the profit exceeded 50%, he could already stop.

Li Jiacheng did not object, but he said: "I have no objection, but I have no funds."

Feng Jinxi said: "We are selling around the price of 3 Hong Kong dollars. The total market value of Hutchison Whampoa is just over 1.2 billion Hong Kong dollars. Even if it is safer, each of us will pay 10 million Hong Kong dollars. 40 million Hong Kong dollars is completely enough to complete the selling."

, it doesn’t even take that much.”

"If you don't want to contribute this money, I wouldn't mind an extra 10 million Hong Kong dollars."

Bob looked at Li Jiacheng. The reason why he was willing to pay an extra 10 million Hong Kong dollars was because it was short selling. They sold the market above the price of 3 Hong Kong dollars. After the stock price fell below the price of 3 Hong Kong dollars, he would buy it back.

, you can make a certain price difference. If you pay more now, you will naturally make more money later.

"I have no extra funds. Since Mr. Bob is willing, I will trouble Mr. Bob."

Li Jiacheng immediately said that he had already arranged for people to buy stocks near the price of 3 Hong Kong dollars. How could he be willing to continue to spend money to go short? In Li Jiacheng's opinion, the price between 3 Hong Kong dollars and 3.5 Hong Kong dollars was not high.

This time Hutchison Whampoa's stock price will fall below HK$3. As long as Hutchison Whampoa remains the largest landowner in Hong Kong and the future real estate industry prospects are as he predicted, Hutchison Whampoa's stock price will sooner or later return to this price, or even go higher.

.

Therefore, Li Jiacheng doesn't think he will lose money if he buys Hutchison Whampoa's stock price at this price. At most, it will take a while.

As for the short option orders, Li Jiacheng did not think there was a problem, and Feng Jinxi had a good idea. When the stock price broke through the price of HK$3, he could settle the short orders and be safe.

Li Jiacheng and others believe that after the stock price falls below HK$3, the long opponents of the short order will definitely be afraid that the stock price will fall even more sharply, so they will accept the price they released for settlement. Unfortunately, they do not know at all that their short orders

Among them, more than 200 million Hong Kong dollars were bought by Iwasaki Mineryu. They had no idea of ​​completing the settlement at a lower price.

(End of chapter)