Reborn Xiangjiang as a Tycoon

Chapter 351 Loss and Profit

The day after Hutchison Whampoa sold the repurchased shares and received HK$1 billion in cash, it spent more than HK$800 million to repay the loan from Standard Chartered Bank, and then took the property to the Bank of East Asia for a loan.

More than 800 million Hong Kong dollars.

After such operations, it is equivalent to Hutchison Whampoa solving the loan problem of Standard Chartered Bank without spending a dime.

The reason why the money is returned to Standard Chartered Bank now is because Standard Chartered's previous application restricted Hutchison Whampoa's use of large amounts of funds. Now that the loan has been repaid, the restriction will of course be ineffective.

However, the loan has been repaid, but the lawsuit has not ended. Hutchison Whampoa is still fighting a lawsuit with Standard Chartered Bank. Anyway, this lawsuit may not come to a conclusion in a year or two.

Although the loan of more than HK$800 million is a lot, given Hutchison Whampoa's current situation, there is no problem at all in granting a full loan as long as there is physical collateral. No matter which bank you switch to, they will be willing to take it.

If possible, Lin Baicheng would like to give this loan to Galaxy Bank so that Galaxy Bank can have a big business, but unfortunately it is not possible at all.

Nowadays, Galaxy Bank is leveraging Lin Baicheng's reputation to attract HKD 6.7 billion in savings, but all of this money is not enough to lend to Hutchison Whampoa. What's more, the bank cannot lend all the funds to a company, especially the controller of this company.

Or Lin Baicheng.

If Galaxy Bank has more than 800 million Hong Kong dollars in its own funds, as long as the bank is controlled by Lin Baicheng, then Lin Baicheng can lend all the money to Hutchison Whampoa. After all, even if the loan cannot be recovered, it will be a loss.

It is also the bank itself. The depositors' money will not be lost, so it will not violate relevant laws.

It is okay to lend depositors' money from Galaxy Bank to Hutchison Whampoa or Lin Baicheng himself, but the amount will be limited, otherwise the nature will change and it will become Lin Baicheng's misappropriation of bank funds, which violates relevant laws.

After entering December, the international gold price has mainly rebounded and risen. In recent days, the international gold price has been rising as a whole. Now the gold price is close to the price of 220 US dollars per ounce. It has recently rebounded from around 190 US dollars and has now risen by nearly 100 US dollars.

As much as 15%.

The rise in international gold prices is of course a great benefit to Hutchison Whampoa. Hutchison Whampoa's investment in gold futures has already made a profit of 6%, a profit of about US$90 million.

Therefore, yesterday Monday and today Tuesday, Hutchison Whampoa's stock price fluctuated upwards.

Bill Harveys and Doug Goldon arranged for traders to slowly sell Hutchison Whampoa's stock, while they negotiated with Henry Kasik and others without any delay.

Since they decided to buy stocks from Hutchison Whampoa, Henry Kaiser and others have truly admitted defeat. Now they just want to buy a sufficient number of stocks and return them to HSBC. However, they can buy a sufficient number of stocks at a lower price.

stocks, they certainly won't want to buy the stock at a higher price.

Therefore, Henry Caesar and the others did not buy from the stock market, but chose to buy from those who held a large number of stocks, hoping to negotiate a satisfactory price.

Several negotiations with Bill Harveys and the others failed to reach a satisfactory price. While Henry Kasik and the others continued to negotiate with Bill Harveys and the others, they also contacted Bao Yugang and Zheng Yudong, wanting to

Buy stocks from them.

Bao Yugang and Zheng Yudong announced that they held at least 100 million Hong Kong dollars worth of stocks. Judging from their purchase prices at the time, they each owned at least 4 million shares. If they could buy them from them, then they would

The number of shares in short supply will be even less.

However, Bao Yugang and Zheng Yudong rejected them directly and told Lin Baicheng about the matter instead, saying that they were optimistic about Hutchison Whampoa and were willing to hold Hutchison Whampoa's shares for a long time.

In their view, making friends with Lin Baicheng is more important than selling stocks to make short-term profits.

After Lin Baicheng learned about this, he naturally expressed his gratitude to Bao Yugang and Zheng Yudong, and said that it was up to them to sell the stocks as they wished, and it would not affect everyone's relationship.

Seeing that they could not buy stocks from Bao Yugang and Zheng Yudong, Henry Kaiser and others had no choice but to negotiate wholeheartedly with Bill Harveys and others to buy stocks from here.

On Wednesday, seeing that Hutchison Whampoa's stock price continued to rise today, Henry Kaiserk and others had no intention of waiting any longer, and reached a deal with Bill Harveys and others after the market closed that day.

Henry Caesar and the others purchased 21.6 million shares of Hutchison Whampoa from Bill Harveys at a price of HK$62 per share, for a total transaction value of HK$1.3392 billion.

Bill Harveys was not familiar with Henry Kasik, so the transaction was conducted in cash, and there was no default in payment.

Fortunately, Henry Kasik and the others had already raised some funds, so they had the money to pay all the money.

The offshore company originally held 94.05 million shares of Hutchison Whampoa, but this time it sold 21.6 million shares. In the past three days this week, it sold 8 million shares in the stock market, and in total, more than 1.8 billion Hong Kong dollars were withdrawn.

The offshore company used US$100 million to raise US$500 million to buy stocks, which converted into Hong Kong dollars would be HK$420 million to raise HK$2.1 billion. Now, the funds recovered from selling the stocks plus a margin of HK$420 million are enough to return to the brokerage.

.

After deducting the financing funds of 2.1 billion Hong Kong dollars and deducting the interest on the financing, there is still about 100 million Hong Kong dollars left in the funds currently withdrawn.

The most important thing is that there are currently 64.45 million shares left in the offshore company. If all these stocks are sold at a price of no less than HK$60, at least about HK$3.9 billion can be recovered, which means that the offshore company can make a profit of at least 35

billion Hong Kong dollars.

After returning the financing funds and interest to the securities firms, among the remaining 64.45 million shares, the offshore company's principal was only US$100 million. Therefore, after the US$100 million principal was withdrawn, which was enough to pay for the acquisition in the United States, these stocks

There is no rush to sell.

Therefore, Lin Baicheng has decided that these stocks will only be sold slowly when the stock price is higher than 60 Hong Kong dollars. If there is a correction, he will hold the stocks and wait for the stock price to rise again.

This time the offshore company is expected to make a profit of no less than HK$3.5 billion, and Hutchison Whampoa will make a profit of nearly HK$1 billion excluding the land discount, adding up to a profit of at least HK$4.5 billion.

However, although both parties have made so much profit, it does not mean that the British family on the short side has lost so much.

The short-term British-owned family's losses will not exceed HK$2 billion. The rest are retail investors who lost money by selling stocks at high prices, and HSBC was also one of the losses.

Think about HSBC selling Hutchison Whampoa's shares at HK$28 and HK$25 respectively. Now Hutchison Whampoa's stock price is above HK$60, with a loss of up to HK$2 billion. Of course, this refers to the situation where all the stocks can be sold at HK$60.

losses.

It can be said that HSBC's losses this time were no less than those of the British-owned families who were short-selling. The problem is that HSBC did not participate in the short-selling. It only sold the stocks because it was worried that the stock price would plummet. It was sold too early. It is quite unfair to think about it.

However, if you really want to calculate it, HSBC still made a huge profit from its investment in Hutchison Whampoa. After all, most of the stocks held by HSBC were bought at low prices, and the profit should be about one billion Hong Kong dollars.

However, if a profit of HKD 3 billion turns into a profit of HKD 1 billion, then HKD 2 billion of it will naturally be considered a loss. No matter who it is, the less earned money will be lost as a matter of course.

Consider it a loss.

(End of chapter)