Reborn Xiangjiang as a Tycoon

Chapter 538 Additional stock issuance, market value surges (two-in-one)

“Hutchison Whampoa made a profit of HK$4.1 billion!”

Many people in Xiangjiang are talking about this matter, including porters, students, white-collar workers, bosses and other classes.

The figure of HK$4.1 billion is so huge that anyone who knows this news for the first time is very shocked and cannot believe it.

When people discuss this topic, they will naturally mention Lin Baicheng. Hutchison Whampoa took off after it was acquired by Lin Baicheng. People know that it was Lin Baicheng who brought huge changes to Hutchison Whampoa, and it was Lin Baicheng who made the profit from this investment.

Although some newspapers did not mention Lin Baicheng, people subconsciously thought so.

Some small newspapers with a small circulation, in order to attract attention, while reporting normal news, also made predictions about Hutchison Whampoa's investment profits next year, and boldly predicted that profits may reach tens of billions of Hong Kong dollars.

In order to attract attention, the tabloid simply ignored that Hutchison Whampoa is currently not investing anymore, and without explaining the reason, simply mentioned a figure of tens of billions of Hong Kong dollars to attract Hong Kong people to buy its own newspaper.

Needless to say, some people are really attracted by it. The number "tens of billions" is very eye-catching.

The media coverage did not affect Lin Baicheng. He contacted Shen Zhou from HSBC before leaving get off work, and the two made an appointment to meet in the afternoon.

Before the two met in the afternoon, the stock market opened first and various stocks were traded.

Hutchison Whampoa's stock price continued its upward trend, rising amid shocks. Half an hour later, the stock price broke through HK$80, hitting a new high.

In this half hour, the Hang Seng Index not only did not rise, but actually fell some.

In other words, after a large number of retail investors learned about Hutchison Whampoa's huge profits in the morning, as Hutchison Whampoa's stock price rose, the Hang Seng Index fell slightly, following the opposite trend of Hutchison Whampoa.

Logically speaking, if Hutchison Whampoa, a large-cap stock, rises, the Hang Seng Index should follow suit. After all, Hutchison Whampoa has a great influence on the index.

The result is the opposite, and the reason is very simple.

Investors' money is not unlimited. Most investors' money has already been invested in the stock market. If investors want to buy Hutchison Whampoa stock, they need to sell the stocks they originally hold so that they can have money to buy Hutchison Whampoa.

Note the stocks of Huangpu.

A large number of investors selling their stocks will naturally have an impact on the index. In a chain reaction, more people will sell their stocks, causing the Hang Seng Index to fall instead of rising.

Large-cap stocks like Hutchison Whampoa have a great siphoning effect on funds. If a large amount of money is invested in Hutchison Whampoa, other stocks will naturally fall due to lack of funds. The two form a seesaw effect.

After the stock price exceeded 80 Hong Kong dollars, Hutchison Whampoa did not fall sharply, but still followed a volatile upward trend. It is obvious that long funds are very strong.

When Hutchison Whampoa's stock price exceeded HK$80, it rose nearly 20% that day. There was no rise or fall in the Hong Kong stock market. As long as the long funds are strong enough, Hutchison Whampoa's stock price can rise again, with the day's rise as high as 50% or even 100.

%It will be all right.

However, it is basically impossible for Hutchison Whampoa's increase that day to be as high as 100%, or even a 50% increase. After all, as of yesterday, Hutchison Whampoa's total market value was as high as 26.788 billion Hong Kong dollars, and a 50% increase would be more than 13 billion.

Hong Kong dollars, adding up to a total market value of 40 billion Hong Kong dollars, the stock price reaches exactly 100 Hong Kong dollars.

Hutchison Whampoa's stock price may rise to HK$100 in the next period of time, but it is basically impossible today because there is not so much capital to promote it.

At around two o'clock in the afternoon, Lin Baicheng and Shen Porridge met.

"Lin Sheng, congratulations, Hutchison Whampoa's profit this time is as high as HK$4.1 billion, which is really shocking!"

Shen Chow expressed congratulations aloud, although he felt depressed because HSBC sold Hutchison Whampoa shares in advance.

"Thanks."

Lin Baicheng shook hands with Shen Porridge.

After the two sat down, Shen Porridge said regretfully: "It's a pity that HSBC originally held a lot of Hutchison Whampoa shares, but it was a pity that they sold them in advance, otherwise they could have made a fortune this time."

Lin Baicheng immediately said: "This is all thanks to the rise in gold prices, otherwise Hutchison Whampoa's investment profits would not be much. It was not wrong for HSBC to sell at that time. Hutchison Whampoa's stock price once fell below HK$50 after HSBC sold it. It shows that HSBC made the right sell at that time.”

"That's indeed the truth."

Shen Porridge smiled and nodded, and stopped talking about this topic. Instead, he said: "Lin Sheng, you said that Hutchison Whampoa wants to cooperate with HSBC. I wonder what kind of cooperation it is?"

Lin Baicheng asked with a smile: "Daban Shen, do you still remember the issue of additional shares I mentioned to you at the beginning of the year?"

"certainly!"

Shen Porridge nodded, his eyes brightening: "Lin Sheng, are you planning to let Hutchison Whampoa issue additional shares and hand over this business to HSBC?"

"Daban Shen was right."

Lin Baicheng nodded: "I am going to hand over the additional issuance business to HSBC. HSBC is the largest bank in Hong Kong. If I don't cooperate with HSBC, who will I cooperate with? Don't you think so?"

Shen Zhou immediately said: "Lin Sheng, if you cooperate with HSBC, you will never be disappointed."

"Of course I trust HSBC."

Lin Baicheng smiled and nodded, and then said: "But before we cooperate, I want to talk to you, Mr. Shen, about the general direction first, and the specific matters will be discussed in detail by the staff below. What do you think?"

After hearing this, Shen Porridge said: "Lin Sheng, I am different from you. Although I am a senior member of HSBC, I am responsible for the board of directors. Therefore, I can decide the conditions within my scope of authority. If it is not within my scope of authority, I can't." There’s a solution.”

"I understand what Taipan means."

Lin Baicheng nodded and said: "Let me ask first, the current stock price of Hutchison Whampoa is 80 Hong Kong dollars. If we issue additional shares at this time, what can the additional issuance price be?"

"Lin Sheng, if you want shareholders to accept the additional shares issued by Hutchison Whampoa, then you must make profits for them. Otherwise, if everyone just goes to the stock market to buy Hutchison Whampoa's shares, why would you choose the additional shares issued by Hutchison Whampoa? "

"Therefore, the price of the additional shares must be set slightly lower. However, Hutchison Whampoa's stock price continues to rise under the stimulation of sudden good news. It is currently impossible to determine the price to which it will stabilize, so the price of the additional issue can only be discussed by both of us. Come up with a price that the market will accept.”

"Once the additional issuance price is set too high and no shareholders choose to buy it, and the additional issuance fails, it will have a big impact on Hutchison Whampoa's reputation. It will be considered that the capital market is not optimistic about the company's long-term development, leading to short-term downward adjustments in the stock price. It's possible."

Shen Zhou spoke aloud, and Lin Baicheng listened attentively.

Lin Baicheng quite agreed with Shen Chou's words. If the profits were not given, no one would be willing to accept the additional issuance of shares, and even if there were, the number would not be too much.

"Shen Daban, for the company, the higher the price of the additional issuance, the better. What do you think is the appropriate price for the additional issuance?"

"With Hutchison Whampoa's current size, HKD 60 is absolutely no problem. No matter how high it is, it depends on the price at which it will fluctuate after the adjustment of this wave of surge in stock prices. If the stock price can fluctuate above HKD 70, then the additional issuance of HKD 65 The price is not unacceptable; if the stock price can fluctuate around HK$80, then there is no problem with the additional issuance price being HK$70.”

"In this case, let's not discuss the additional issuance price for now. It won't be too late to decide the final additional issuance price after Hutchison Whampoa's stock price stabilizes."

"That's fine. It just so happens that the issuance of additional shares cannot be completed in a short time."

Shen Porridge did not object when he heard this, and then asked: "Lin Sheng, I don't know how many shares you want to issue this time? At the beginning of the year, you said you would issue 25% more shares, but 100 million shares is too much. Even if it is just Calculated based on the additional issuance price of HK$60, 100 million shares is equivalent to HK$6 billion. I don’t think the current market in Hong Kong can accept such a large amount of additional shares.”

Lin Baicheng asked: "If 100 million shares doesn't work, what about 50 million shares?"

Shen Porridge thought for a while and said: "Although it is still a bit too much, it is not impossible to sell them all. The specific price depends on the additional issuance price at that time. If the additional issuance price is too high, then the additional issuance quantity will be lowered."

Lin Baicheng nodded after hearing this: "In other words, there should be no problem in issuing at least 40 million additional shares, right?"

Shen Porridge nodded: "You can say that."

Lin Baicheng immediately said: "Then we will discuss the specific number of additional issuances and wait until the price of the additional issuance is roughly determined."

"good."

Shen Porridge said with a smile on his face: "Don't worry, Lin Sheng, HSBC will take over part of the additional issuance of shares. At the same time, we will also recommend Hutchison Whampoa's stocks to our customers and try our best to ensure that the additional issuance can be completed."

Lin Baicheng smiled and said: "Taban Shen, let's talk about handling fees next. I think the 4% handling fee is a bit high. The market value of Hutchison Whampoa's additional shares is calculated based on HK$3 billion, 4% The handling fee is HK$120 million, which is too high.”

"Lin Sheng, a 4% handling fee is not high at all. The market price is a 5% handling fee. I have given Hutchison Whampoa a certain discount."

Shen Zong immediately said, based on the market value of the additional issuance of HK$3 billion, 1% of the handling fee is HK$30 million, and one thousandth is HK$3 million. Therefore, we must not let go of the handling fee easily.

Lin Baicheng: "Shen Taipan, you have to know that the market value of the additional shares issued by other companies is definitely not high. There is a question mark whether it is 100 million Hong Kong dollars. However, the market value of the additional shares issued by Hutchison Whampoa is several billion Hong Kong dollars. This is a big deal. , HSBC should provide certain discounts.”

How could Shen Chow be easily persuaded: "Lin Sheng, it is precisely because Hutchison Whampoa's order is a large one that I gave a 1% discount on top of the 5%. If the handling fee is further reduced, I will not be able to explain it to the board of directors. "

Lin Baicheng: "Shen Daban, I think we can talk more about the handling fee and give a certain discount. How about letting the people below discuss it in detail?"

"Okay, for Lin Sheng's sake. I hope that if there is similar cooperation in the future, Lin Sheng will think of us, HSBC."

Shen Zhou pondered for a moment, then nodded and agreed. A few thousandths more for the handling fee would still be acceptable. There was no need to refute Lin Baicheng's face for this.

Lin Baicheng couldn't help but smile: "Then, I wish us a happy cooperation."

“A pleasure to work with!”

Shen Chow is even happier than Lin Baicheng. If this order is completed, HSBC will earn a profit of no less than 100 million Hong Kong dollars. This is not a small business.

The reason why Lin Baicheng chose this time to start issuing additional shares instead of waiting for Hutchison Whampoa to make big profits by going long gold futures next time is because he considered that his reputation should not be affected.

If you wait until the next time you make a big profit on gold futures, Hutchison Whampoa's stock price rises sharply again and then issue additional shares. When the additional stock issuance is completed, without good news, Hutchison Whampoa's stock price will inevitably fall, and there will be a big adjustment. This It will be understood by the outside world that Lin Baicheng is cutting the leek of "accepting additional stock investors", which is a trick.

It's different now that the additional issuance is being carried out. There will be a sharp rise in the stock price later. Even if the stock price falls below the additional issuance price after the correction, it has nothing to do with Lin Baicheng and is just a normal adjustment of the market.

What's more, there will be profits of no less than HK$5 billion in the future. Even if there is an adjustment at that time, the stock price of around HK$70 is likely to be able to support it. Even if there is an adjustment, Hutchison Whampoa will not adjust too much and accept the issuance of additional shares. Investors will most likely not suffer losses.

After finishing the conversation with Shen Zhou, Lin Baicheng returned to Hutchison Whampoa.

At the closing of the stock market that day, Hutchison Whampoa's stock price rose to the highest price of HK$88.79 on the day, and closed at HK$84.62 in late trading, an increase of 26.36% on the day, and the company's total market value was nearly HK$33.85 billion.

If the market value is calculated based on the highest price, Hutchison Whampoa's total market value exceeds HK$35 billion.

Knowing the stock price trend that day, Lin Baicheng knew that among the 2.4 billion Hong Kong dollars in stocks that he, Bao Yugang, Huo Yingdong and others purchased, a lot should have been sold today. They had discussed it in advance, and when Hutchison Whampoa After the stock price rose to HK$85, I began to slowly sell the stock.

Lin Baicheng and others did not think that this wave of stock price rise would only end at HK$85. The reason why they sold at this price was because there had been a considerable increase compared to their purchase price, and their principal was 2.4 billion. Hong Kong dollars cannot be sold out in one day, so they must be sold in advance.

On the other hand, at Yum Securities, Lin Baicheng asked Anyuan to wait until the stock price rose to 90 Hong Kong dollars before slowly starting to sell.

It's okay if the stock price doesn't rise that high this time. Lin Baicheng can let Yum Securities wait for the next wave of Hutchison Whampoa's stock price to rise sharply before selling it. There is no need to rush to sell.

That night, Lin Baicheng and Iwasaki Mineryu flew to Tokyo on Lin Baicheng's private plane. On the Japanese side, Bailong Commercial Club's funds still needed Lin Baicheng to handle them personally. After all, they were hundreds of millions of dollars, not a small amount.

After arriving in Tokyo, Lin Baicheng separated from Iwasaki Mineryu, and he took a car to Matsuda Seiko's place.

Before going to Tokyo, Lin Baicheng contacted Yamaguchi Momoe and Matsuda Seiko, but only Matsuda Seiko could not be contacted, and Yamaguchi Momoe could not be contacted. Afterwards, he still contacted Chiba Nanako and learned that Yamaguchi Momoe was not in Tokyo.

Went to Osaka.

There are no mobile phones yet, so we can only contact people through landline phones, which is very inconvenient.

(End of chapter)