Reborn Xiangjiang as a Tycoon

Chapter 319 Hutchison’s long-short battle (1)

After returning, Henry Caesar, Michael Kadoorie, George Swire, and John Madden convened a meeting with those involved in short selling.

After discussion, they agreed that Hutchison Whampoa's stock price is unlikely to stabilize above HK$30 without huge positive news, unless there is a large amount of funds that are optimistic about Hutchison Whampoa's stock price and continue to buy it, forcing the stock price to rise.

, but this possibility is very small.

After calculation, the average selling price of the 70 million shares they shorted was above HK$30. As long as Hutchison Whampoa's stock price did not exceed HK$30, then their short selling would not make a loss.

Furthermore, this time they shorted Hutchison Whampoa to show off the strength of the British-owned family. If it ends now, it will not have the effect of deterring the Chinese-owned family. Instead, it will be regarded as useless.

Virtual table.

Therefore, due to the combination of many factors, they decided to continue borrowing stocks from HSBC to short-sell, and at the same time, they tried to find ways to attack Hutchison Whampoa through various channels, so that Hutchison Whampoa would have a lot of negative news, leading investors to follow suit and sell stocks, suppressing the stock price.

After making the decision, in the afternoon, Henry Kaiser went to HSBC to borrow stocks on behalf of everyone, and borrowed 40 million shares of Hutchison Whampoa stock again. At the same time, they also lobbied the board of directors of HSBC to let HSBC reduce its holdings of Hutchison Whampoa.

Share decision, this will be a big negative.

When Henry Caesar came to borrow stocks, Shen Zou certainly had no reason not to lend them. The two parties happily signed the securities lending contract. Having said that, no matter whether Henry Caesar or the others could succeed in short selling this time, they would still be able to lend a large amount of stocks.

HSBC has made a huge profit, with a stock value of over 3 billion Hong Kong dollars, and the interest alone is a lot.

Although they borrowed stocks, Henry Caesar and others did not sell a large amount of stocks immediately because they had to wait for the negative news about Hutchison Whampoa to appear. At that time, selling a large amount of stocks would trigger a large amount of panic and bring down the stock price.

Smash it down.

There was no movement on the short side, and Lin Baicheng, the bull, was naturally even more silent. He didn't have a lot of good news that he didn't announce.

Lin Baicheng worked at Jinzhou Yingni Company that day. He transferred several middle-level managers from Hutchison Whampoa to work at Jinzhou Yingni Company. Together with the original management of Jinzhou Yingni Company, they were able to manage the company well.

The Kane family will definitely give up some positions when they leave Qingzhou Yingni Company. Lin Baicheng himself will also need to place trustworthy people in key positions such as finance and human resources. Fortunately, these are high-level administrators, and there are not many middle-level administrators.

There was no impact, so not many people left.

When a company is acquired, unless there is a relative relationship with the original owner, everyone will definitely know what to do or how to do it. After all, they are working part-time, and the salary is the same no matter who they receive.

With the cooperation of Gu Luo Kane, the handover of Qingzhou Yingni Company is proceeding steadily.

While having dinner at home in the evening, Lin Baicheng suddenly received a call from Wei Li. Lin Baicheng knew very well that Wei Li would not have called his home at this time if something serious had not happened.

"Weili, what happened?"

"Mr. Lin, I just received a report from the London branch, saying that someone reported our company for tax evasion and the IRS came to inspect the accounts."

Wei Li's voice was a little anxious. It was definitely not good news that the IRS came to check the accounts at this time.

"Then did we evade taxes?"

Lin Baicheng asked in a deep voice. The reason why he asked this was because there was definitely no large-scale tax evasion, but he was afraid that the people below would secretly do this for their own benefit and harm the company. Although the people below did not do the amount themselves,

It will be big, but if you are caught, dirty water will definitely be poured on the company.

Wei Li said: "No, I heard from the people below that the IRS came to check the taxes that the company had to pay on its previous profits from gold investment."

Lin Baicheng warned: "It's okay if you don't, but let people keep an eye on it, otherwise we won't evade taxes and we will be framed."

"I'll make people stare."

Wei Li agreed, and then said: "Also, when the IRS came to the door, reporters soon came to the door. I suspect that relevant reports will appear in various newspapers tomorrow morning. This is obviously someone behind the scenes.

The method was probably done by a short-selling British family."

"Remove the word 'possible'. There will be no one else involved in this matter except them."

Lin Baicheng snorted. The incident happened in London. Recently, Hutchison Whampoa was shorted by the British-owned family. The British-owned family has the power to cause trouble in London. Who else could this happen besides them? If you say this is a coincidence, kill him.

Don't believe it either.

Wei Li said: "Mr. Lin, I'm worried that this is just fun, and they may make other moves next. Since they are short-selling, of course they want to suppress the company's stock price. Once there is a lot of negative news about the company, the stock price will inevitably rise again.

A wave of decline.”

Lin Baicheng agreed: "Well, you are right. Do you have any good way to deal with this?"

Wei Li said helplessly: "The company's current plan is to get a loan from the bank and find a way to repurchase some stocks."

"In that case, tomorrow you will arrange for people to contact the major banks in Hong Kong to see if you can get a loan from the bank to buy back the stock price."

When saying this, Lin Baicheng felt a little regretful. His Galaxy Bank has just completed its merger and reorganization. Although he has used his reputation as the richest man in Hong Kong and allowed some Hong Kong people to deposit their money in Galaxy Bank, the deposits of Galaxy Bank are not many after all.

, there is no way to give Hutchison Whampoa too many loans.

Loans of tens of millions of Hong Kong dollars can be taken out, but the problem is that it is meaningless. Even if Hutchison Whampoa's stock price drops, it will cost more than ten Hong Kong dollars per share. One million shares is more than ten million Hong Kong dollars, and one million shares only cost

Accounting for 0.25% of the total number of shares, such a small repurchase is useless.

Wei Li said: "If it really doesn't work, we can allocate the funds used by the company for development. We still have hundreds of millions of Hong Kong dollars."

"If the stock price is not low enough, the funds used for development must not be used. This will slow down the company's development progress."

Lin Baicheng did not completely veto it. If Hutchison Whampoa's stock price dared to fall to about 15 Hong Kong dollars, then the company's funds could be allocated to buy back and sell it after the stock price rises to make a huge profit. The company's development time has been delayed.

The profits of hundreds of millions of Hong Kong dollars are more than enough to make up for it.

After the two chatted for a few more words, they ended the call.

Lin Baicheng and Wei Li both knew very well that since the Kongfang Yingzi family had taken action, there would probably be more actions to follow. There was a storm waiting for Hutchison Whampoa ahead.

(Thanks to ‘There is always a beauty who wants to fuck me’ for your huge reward and support!)

(End of chapter)