My Age of Investment

Xia Jingxing did not wait for the short-selling ban in the United States, but first waited for the short-selling ban in the United Kingdom.

On the evening of September 18, Li Yaozu, who was in London, led a group of executives to hold a video conference with Xia Jingxing and the New York office executives in New York.

“The British Financial Services Authority (FSA) announced just a few hours ago that short selling will be banned from 23:00 today. This temporary ban will be re-evaluated in 30 days, but the ban will be valid until January 16 next year.

And the FSA also announced a list of financial stocks that are prohibited from short selling, with a total of 29 companies.

Our heavy position targets include Halifax Bank of Scotland, Lloyds TSB Bank, HSBC, Royal Scotland, Barclays, Standard Chartered and other major banks, as well as financial companies such as Standard Life and UniCredit. "

Xia Jingxing looked at the big screen on the wall. Li Yaozu looked helpless and frustrated as he spoke.

The British guy couldn't afford to lose and started to flip the table!

As a private company, they have no choice but to face the decrees issued by the state apparatus.

Liu Hai, who was sitting next to Xia Jingxing, asked aloud: "How does the FSA view short selling now? Has it proposed involving the judicial department?"

Li Yaozu shook his head slightly, "There is no judicial intervention. To borrow the original words of FSA CEO Hector Senz: Although we still regard short selling as legal under normal market conditions, the current extreme situation is already causing trouble to the market." Add to the chaos.

Finance Minister Darling commented: Short selling has exacerbated the deterioration of the market environment in the recent past, and the introduction of a ban will help stabilize the market. "

Liu Hai continued to ask: "What about the short positions you already hold? Have you requested liquidation?"

“There is no requirement for forced liquidation, but the FSA has also put forward an additional requirement: hedge funds whose short positions exceed 0.25% of a financial institution’s total equity must publish position changes and holdings every day starting from September 23.

This is equivalent to allowing short sellers to stand out in the open, not only exposing their own short selling behavior, but also accepting pressure and criticism from public opinion.

Everyone now thinks that short sellers played a particularly disgraceful role in the collapse of Lehman Brothers. "

Xia Jingxing tapped his fingers on the table, and the UK fired the first shot of "banning short selling". It is foreseeable that in order to prevent the financial crisis from continuing to expand, other countries and financial management departments may choose to follow suit.

Don't mention whether he is acting like a gangster or not. He was originally a gangster, but now he has just shown his true colors.

Li Yaozu continued in the video and said: "Dailun, there are only two options before us now, one is to close the position, and the other is to disclose the short position.

Of course, the disclosures are also made by Goldman Sachs and Morgan Stanley. They are the ones doing the short selling, but the profits and losses from the short selling belong to us. "

Xia Jingxing nodded slightly, "Then what's your opinion?"

"My opinion is not to close the position!"

Li Yaozu explained in a slow and slow manner: "Today, Halifax Bank of Scotland, the sixth largest bank in the UK and the largest mortgage bank in the UK, which is in a liquidity crisis, accepted the approval of its competitor Labor Bank under the promotion of the British government. Ed TSB Bank's takeover offer.

When the market opens tomorrow, the stock prices of the two banks will definitely rise sharply.

If we close the position, we will have to take back a lot of profits.

I think we might as well communicate with the two investment banks. Anyway, they don’t do bad things once or twice. It doesn’t matter if their reputation in the UK is worse. If you have too many lice, you don’t need to itch, and if you have too much debt, you don’t have to worry about it. "

Xia Jingxing sneered, but what Li Yaozu said was absolutely right!

Because they were afraid that the big bosses in the United States would not provide bailout loans, Blankfein and Mack had to behave more honestly.

But the British don't give money, so Goldman Sachs and Morgan Stanley don't need to sell each other's face.

It's not a big problem to play the role of a shit stirrer once.

Besides, Envision Capital provides tens of billions of dollars in financing and provides work for M\u0026A consultants. The two investment banks should also play their own roles. They can't just take the money and not do the work!

"There are still a few days until the 23rd, please wait for my news!"

After a few words of warning, Xia Jingxing asked Liu Xiaoduo to turn off the video conferencing system.

He glanced at the attending executives and said with a faint smile: "How about it? The final interpretation of bullshit financial freedom rests with each country.

Some people used to say that Hong Kong violated the rules by using foreign exchange to crack down on international speculators!

Now let's see, the eldest brother, not to mention the second brother, is the same when pressed. "

Jiang Ping adjusted the glasses on his nose habitually and said: "In the short term, short selling is indeed the main culprit of the market decline. Short selling causes the stock price to fall, causing more people to panic sell, and also makes more people think it is profitable. Pictures, have chosen to join the short-selling army...

This is a vicious cycle, and if it is not stopped, it may indeed lead to an even greater financial crisis.

Therefore, even if some people object and feel that this violates market fairness and interferes with market liquidity, the regulatory authorities will still choose to implement the short-selling ban. "

"It's none of our business. We should be able to close all positions tomorrow!"

Xia Jingxing couldn't remember the specific time when the short-selling ban in the United States was enacted, but he felt it would be within the next few days.

…………

…………

The next day.

Before the U.S. stock market opened, the SEC announced major news.

It was announced that from September 19 to October 2, short selling of 799 financial stocks will be prohibited. After the expiration of the ban, it can be extended for 10 days.

For naked short selling, T+3 delivery and closing is mandatory.

In addition, the SEC also requires hedge funds and investment institutions with more than $100 million in securities assets under management to declare and disclose their short positions every day.

As soon as this order came out, the short sellers cried out, which also meant that the short sellers who had entered the market recently would be out before they could make any money.

And the short sellers who entered the market early, such as the Goldman Sachs and Morgan Stanley vests worn by Envision Capital, also have to be exposed to the sun.

If you are not afraid of pressure and accusations from all sides, you can disclose your position under pressure while shorting and not closing the position.

However, positions that are not closed are limited to stocks that are normally shorted in the market.

The so-called normal short selling means borrowing stocks first, selling them, and then buying them to close the position on the delivery date.

Naked short selling, however, lacks the step of "borrowing shares" and can directly conduct one-way short selling.

Generally speaking, normal short selling has limited trading volume because the number of securities that can be borrowed is limited.

Naked short selling does not require borrowing, so the trading volume will be very large, which will increase the arrogance of speculators and make it easier to disrupt the market order.

Xia Jingxing, Liu Hai, Jiang Ping and company executives were sitting in the conference room, watching the "short selling ban" news being broadcast on the TV.

Xia Jingxing was a little speechless. He said Cao Cao, and Cao Cao was here.

Fortunately, we closed the position early, otherwise we would have been in great trouble, because Envision Capital held a large number of naked short selling orders.

He had already had a phone call with Blankfein and Mack last night, and he could close all his positions today without incurring penalties for being unable to deliver the stocks.

In addition, he also communicated with the two CEOs. After promising some conditions, the two investment banks planned to help Vision Capital take the blame in the UK.

At this time, the news channel suddenly jumped, and a middle-aged white man with black hair appeared. He looked like he was of Italian descent.

The man stood in front of a podium, faced the camera, and said loudly: "Since last year, some greedy Wall Street vultures have made profits by deceiving investors, manipulating stock prices, spreading rumors and other illegal means, seriously disrupting the In the U.S. financial order, the SEC has fully entrusted the New York State Judiciary Department to thoroughly investigate the matter.

I am here to express my position to the public that I will definitely uncover those capital vultures, and then bring them all to court one by one to face trial and give an explanation to all the families who were harmed by the financial crisis..."

Jiang Ping usually focuses on investment and doesn't know much about local politicians. At this time, he couldn't help but ask: "Who is this? So loud?"

Abel was well-informed and had many contacts. He introduced with a smile: "New York State Attorney General Andrew Cuomo, whose father served as the governor of New York for three terms, and his ex-wife is the niece of Commander-in-Chief Kennedy and the daughter of Senator Robert Kennedy. .”

Jiang Ping was silent. No wonder, the background is quite tough!

Xia Jingxing had some impressions of Cuomo because in his previous life, like his father, this guy had been the governor of New York for three terms, so he was also called the King of New York.

His battle to become famous is to crack down on Wall Street!