Reborn Xiangjiang as a Tycoon

Chapter 314 Low Tray

The next day is Monday.

Without any surprise, Hutchison Whampoa's stock price took a dive during the call auction stage. After the opening, it quickly fell below the price of HK$30, with the lowest falling to about HK$27. Then it rebounded and fluctuated in a range at the price of HK$30.

Despite this, Hutchison Whampoa's stock price fell by about 20% that day, losing almost 3 billion Hong Kong dollars in market value.

Hutchison Whampoa, in Lin Baicheng's office.

"Mr. Lin, it has only fallen by about 20% now, and it may fall further in the future."

When secretary Qin Lan reported the latest stock price, Wei Li said this.

Cheng Yufeng also said: "Since someone is shorting, such a small drop will definitely not satisfy the short side."

Xia Boyin asked: "Mr. Lin, if the stock price drops again, should we allocate funds for repurchase?"

"Forget about diverting funds, the company's development cannot be affected."

Lin Baicheng shook his head, and then said: "At that time, you can borrow a sum of funds from HSBC or Standard Chartered. If the bank is willing to provide a loan, then use the loan funds to buy back; if the bank is worried about risks and is unwilling to provide loans, then forget it.

.”

"As long as the company needs a loan and the loan funds are not too large, there should be no problem."

Weili said in a deep voice: "The company's net assets far exceed the company's liabilities. In addition, the company's operations are no problem, and HSBC is the company's major shareholder. There should be no problem in giving the company a loan."

"No problem is the best."

Lin Baicheng nodded and said with a smile: "You don't have to worry too much. I have already contacted my friends in the United States. If the stock price drops too hard, he will come in and help me support the stock price, so the drop in the stock price is only temporary.

, it will rise back sooner or later.”

"What you have to do is to appease the company's employees so that they will not be affected by the outside world and work with peace of mind. The stability of the company is the most important. At this time, any slight disturbance will be magnified and become major negative news.

"

"Don't worry, Mr. Lin, we will do a good job in the relevant work."

Wei Li nodded to express his understanding. He is also a small shareholder of the company now, and of course he does not want problems with the company's development, otherwise the stocks in his hands will become worthless.

"嘚!嘚!嘚!"

There was a knock on the door and Peter Wei walked in.

"Mr. Lin, Standard Chartered Bank has unilaterally stopped the private placement negotiations and said it will reconsider whether to accept the private placement and become a shareholder of Hutchison Whampoa."

“Expected!”

Lin Baicheng nodded when he heard this and was not surprised. In the current situation, no one knows to what price Hutchison Whampoa's stock price will fall. What will happen in the future is even more questionable. Standard Chartered Bank is unwilling to take the risk of accepting a fixed increase to become a

Shareholders are normal.

"Mr. Lin, do you want to transfer the call from Mr. Huo from Standard Chartered?"

Secretary Chen Huixiang said at the office door.

"Turn in."

Lin Baicheng said, and after the call came in, he picked up the phone.

The call was from Huo Yaohua. He apologized to Lin Baicheng and said that he could only choose to implement the decision of the board of directors. He had persuaded the board of directors to talk to Hutchison Whampoa and accept the fixed increase at a lower price, but the board of directors did not agree and considered the risks

If it is too big, you need to consider it.

After hearing this, Lin Baicheng expressed his gratitude to Huo Yaohua, and then said that Hutchison Whampoa's fixed increase price would not change. Even if the board of directors of Standard Chartered listened to him, the two parties would not reach an agreement in the end because the fixed increase prices determined by the two parties were too different and there was no negotiation.

possibility of success.

Hutchison Whampoa's stock price did not fluctuate for too long around the price of HK$30. In less than ten minutes, a large number of sell orders appeared, and the stock price fell below the price of HK$30 again. This time the key point fell below, resulting in a large number of panic orders.

Following the shipment, the stock price soon fell to HK$25 and continued to fall.

The total number of shares of Hutchison Whampoa is 400 million. When the stock price fell below the price of HK$25, the total market value fell below HK$10 billion. It is no longer the highest market value among listed companies in Hong Kong.

Because HSBC holds 15% of Hutchison Whampoa's shares, when Hutchison Whampoa's stock price rose sharply, it also rose. Now that Hutchison Whampoa's stock price has plummeted, and the overall market situation is not good, HSBC's stock price has naturally followed suit.

Keep falling.

However, unlike Hutchison Whampoa, which was shorted, HSBC was not shorted, so HSBC fell less and barely maintained a market value of 10 billion Hong Kong dollars.

When Qin Lan came to report that Hutchison Whampoa's stock price fell below HK$25, Lin Baicheng nodded and asked her to go out, and then made an international call to Los Angeles.

Maori Haruko told Lin Baicheng that the offshore company had divided the US$100 million into four accounts according to his instructions and opened accounts with Goldman Sachs, Morgan, Citigroup and Merrill Lynch, and then entrusted these four companies to let the four departments in Hong Kong pay attention to Hutchison Whampoa

If Hutchison Whampoa's stock price falls below 25 Hong Kong dollars, buy it. If it is above 25 Hong Kong dollars, don't care.

Use your own funds to buy at the beginning, and buy more as the price drops until you finish buying.

After Lin Baicheng confirmed that his order had been executed, he hung up the phone. Although he only used 100 million U.S. dollars to buy, if the stock price was still below 25 Hong Kong dollars after buying out his own funds, Lin Baicheng would use 100 million U.S. dollars to buy it.

Using five times leverage with US dollar funds, more stocks can be purchased at that time.

If one hundred million US dollars is used with five times leverage, it is 2.1 billion Hong Kong dollars. If all is bought when the stock price is lower than 25 Hong Kong dollars, more than 20% of the shares can be purchased. Lin Baicheng does not believe that this can not make the stock price rise.

If the stock price still doesn’t rise after buying all the 2.1 billion Hong Kong dollars, then the short side has the ability, and Lin Baicheng has no choice but to admit defeat. He must keep the remaining funds as a deposit and cannot gamble all of them. If he loses, he

He had lost too much and was unwilling to gamble so much.

As Lin Baicheng's funds entered the market, selling orders below HK$25 were caught, and the stock price tended to stabilize and rebound.

At this time, we have to look at the short side’s choice: whether to stop buying the stock near HK$25 and return it to the brokerage, or whether to continue to suppress the stock price.

The short side did not make a decision immediately, and Hutchison Whampoa's stock price fluctuated around 25 Hong Kong dollars. When the stock price was lower than 25 Hong Kong dollars, Lin Baicheng's funds were on the tray; when it was higher than 25 Hong Kong dollars, Lin Baicheng's funds stopped buying, and the stock price was at

It fluctuated for a while and then fell again.

When the stock price was fluctuating, Lin Baicheng received a call from Shen Chow. HSBC held a board meeting in the morning, and HSBC decided not to reduce or increase its holdings for the time being and take another look.

Shen Porridge also told Lin Baicheng another news, that is, the funds currently shorting Hutchison Whampoa are some British-owned families in Hong Kong. For example, the Kaiser family is one of the short parties. They borrowed securities and sold short through the channels of Standard Chartered.

The reason why it is not through HSBC is very simple. HSBC is the majority shareholder of Hutchison Whampoa, and this alone is enough.

(End of chapter)