Reborn Xiangjiang as a Tycoon

Chapter 336 Short side inventory

The first day of December, the last trading day of the week.

For more than an hour on Friday morning, the stock market was as volatile as the previous few days. Hutchison Whampoa's stock price closed at HK$23.62 yesterday and almost opened flat today. The stock price also fluctuated up and down in the next hour or so.

, neither a big rise nor a big fall.

However, Hutchison Whampoa's trading volume is still the largest among the entire Hong Kong stock market. The trading volume exceeded HK$100 million in half an hour. The trading volume of many small and medium-cap stocks throughout the day is not so large.

When the time is approaching eleven o'clock.

Several industries, including import and export trade and textiles, began to lead the decline in Hong Kong stocks. The entire Hang Seng Index was soon driven down, falling below the key integer level of 500 points. After the important support level was broken, the entire Hong Kong stock market

Almost all stocks began to fall, and even stocks that had been rising began to turn down.

When the Hang Seng Index plummeted, Hutchison Whampoa could not avoid it, and the stock price began to fall, no longer fluctuating.

In the afternoon, the stock market continued its early decline, and the Hang Seng Index continued to fall, closing at 466.7 points, with the lowest falling to 461.3 points, a drop of as much as 7% that day.

The entire market has fallen so much, and a large number of stocks have fallen by more than 10% today. The stock market is wailing, and almost no one is spared.

Hutchison Whampoa also fell today, but not by much. The closing price was HK$22.68, a drop of 3.98%, which was barely close to 4%. The drop was even less than the broader market.

Hutchison Whampoa's decline was not very large. One of the reasons is that Hutchison Whampoa's subsequent repurchase funds of 200 million Hong Kong dollars were all spent again today, and it received a lot of selling orders.

But those who also bought heavily in the stock market today were short-term British-owned families. They did not choose to take advantage of the trend to suppress the stock price today, but chose to buy stocks. Therefore, the stock market plummeted today, but Hutchison Whampoa did not fall too much.

.

After the stock market closed, Henry Caesar and others did not leave the exchange at all, but discussed it in the VIP room.

Henry Kasik was the first to say: "Today we bought about 13 million shares at an average price of HK$22.3 and spent HK$290 million. Now we hold a total of more than 17 million shares of Hutchison Whampoa, which is the same as our sales.

The empty quantity is still far behind.”

"What exactly is the current status of our short sales?" someone asked.

"We borrowed 70 million shares at a cost price of HK$32, and the average selling price was HK$31.3. We then borrowed another 40 million shares from HSBC, this time at a cost price of HK$25.5, but we subsequently borrowed HK$28 per share.

Bought 20 million shares from HSBC at the same price."

"Of the next 60 million shares, we sold 35 million shares at HK$21, 24 million shares at HK$18.2, and the remaining 1 million shares were left untouched, and then we repurchased 3 million shares at an average price of HK$16.6

share."

"In the end, we bought 40 million shares from HSBC at a price of 25 Hong Kong dollars per share. This transaction did not trade specific stocks, but traded on the stocks we borrowed, which is equivalent to buying it at a price of 25 Hong Kong dollars.

40 million shares.”

For the short side, whatever price the stock was at when it borrowed the stock from the brokerage firm, the cost will be that price, not the price at the time of sale. If that is the case, borrow 20 Hong Kong dollars from the brokerage firm, but wait.

If it is sold at a price of 15 Hong Kong dollars after ten days and a half month, it is impossible to say that the cost price of the short position is 15 Hong Kong dollars, right?

"We short-sold a total of about 130 million shares, but we bought 60 million of them from HSBC, so the number of shares to be returned to HSBC is 70 million, and we currently only have more than 17 million shares.

, still short of nearly 53 million shares."

"For now, we have already made a lot of losses on the 60 million shares we bought from HSBC. The cost price of 20 million shares is HK$28, and the cost price of 40 million shares is HK$25. We have 1 million shares that are not available.

35 million shares were sold at HK$21 and 24 million shares were sold at HK$18.2, resulting in a total loss of HK$363 million."

"For the remaining 70 million shares, our cost price is HK$32, the average selling price is HK$31.3, of which the average buying price of 17 million shares is about HK$22, and the profit is about HK$200 million. Calculated in this way, we

The current loss is HK$160 million."

"However, the key point is that there are nearly 53 million shares left. If the entire Hong Kong stock market had not plummeted today, we would not be able to buy so many shares. Hutchison Whampoa is also still buying back. If we want to buy so many shares

The cost price of stocks is likely to be above 30 Hong Kong dollars. At that time, not only will we not make any money, but we will also lose a lot."

Henry Kaesik explained the calculated data after statistics, so that everyone can have a clearer understanding.

"We have suppressed Hutchison Whampoa's stock price to this level, but we didn't expect to lose money!"

"There is no way, the price paid later to suppress the stock price will be too high."

"We cannot let Hutchison Whampoa continue to buy back, otherwise we will only lose money this time, and we will not even try to make money, and we will not achieve the goal of suppressing Hutchison Whampoa's stock price."

"I think it's good to be able to protect our capital now. There are not many stocks in the market for us to buy."

"."

Everyone discussed, and everyone was dissatisfied with the possibility of losing money this time and could not accept it. After all, they started shorting from above 40 Hong Kong dollars, and now the stock price is less than 25 Hong Kong dollars, but they have the possibility of losing money.

How can they accept it.

"At noon, I went to see the Americans who represented the company that spent 2 billion Hong Kong dollars to buy stocks. They did not accept selling the stock to us at a price of 25 Hong Kong dollars. They said there was no need to discuss it if it was less than 40 Hong Kong dollars per share.

The price difference we offered was too big, so we had to buy from the stock market."

"If we buy stocks from the stock market and Hutchison Whampoa repurchases them, the average price we buy will only be above HK$30. After all, we have a lot to buy."

"As I said before, we will continue to use off-market moves to suppress Hutchison Whampoa's stock price. The stock market is not doing well right now. Once influential negative news drives it, it will be difficult for Hutchison Whampoa's stock price to fall."

"We have to stop Hutchison Whampoa itself, and we cannot allow Hutchison Whampoa to use funds for buybacks anymore."

"Taking advantage of the fact that tomorrow and the next two days are weekends, let's work together to get things done."

After discussion, Henry Kaiser and others decided to use off-market moves to suppress Hutchison Whampoa's stock price, and at the same time, take advantage of the suppressed stock price to buy low in order to return the stock to HSBC.

Henry Caesar and others also know very well that no matter how they suppress the stock price, if the bulls do not sell the stock and continue to buy, the stock price will rebound sooner or later. At that time, they will face the situation of returning no stock to HSBC.

Huge losses, so they must buy back the short-sold stocks while the stock price is not high.

(End of chapter)