Reborn as a tycoon in Hong Kong

The stock market opens in the afternoon.

Hutchison Whampoa's stock price fell sharply again, falling directly below the price of HK$4, and continued to fall.

This time, in addition to the Qi Dezun family selling stocks, there are also securities lending funds entering the market.

In fact, there were securities lending funds entering the market in the early trading, but fewer people entered the market. After looking at the institutions and funds all morning, it has been determined that a sharp drop in stock prices is inevitable under the big bad news. Therefore, during the lunch break, a lot of funds increased. If you increase the amount of securities lending, sell a large number of stocks, and prepare to buy them back when the stock price reaches a certain price, thereby making a profit on the price difference.

Margin margin trading is actually the use of leverage with securities firms. Financing is to increase the multiple of funds, enlarging the amount of funds, so that more funds can be used to buy stocks, that is, going long; securities lending is to borrow stocks from securities companies, then sell the stocks, and then buy them after the stock price drops to a certain price. If you return it to the brokerage, you are short selling.

Short selling in securities lending is the same as short selling in the options market, but the option market has an exercise time, the minimum is 30 days, 60 days, 90 days and other longer periods. Therefore, short selling in securities lending is actually better, because the longer the time, the more variables The bigger.

The reason why Li Jiacheng and others did not choose to short-sell through securities lending was because securities lending required borrowing stocks from brokers or banks, and the only company holding Hutchison Whampoa stocks in Hong Kong was HSBC. They were worried that borrowing a large amount of stocks from HSBC would leak the news. They were noticed by Hutchison Whampoa or Lin Baicheng, so they chose to go short through the options market.

Through short selling in the options market, although there is an exercise time limit, you can also agree on a price settlement with the counterparty in advance. You do not have to wait for the exercise time to arrive before settling. In addition, as long as you keep confidentiality, the operation will not be exposed and confidentiality will be maintained. The aspect will be higher.

After the bad news about Hutchison Whampoa was exposed, whether those involved were institutions or retail investors, if these funds wanted to go short, they could simply sell stocks through HSBC Securities Lending.

The Qi Dezun family simply sold stocks, but more funds belonging to institutions and retail investors were short selling stocks through securities lending. The sharp drop in stock prices was due to the buying of funds from multiple parties such as Lin Baicheng, as well as a small number of bargain hunting funds. , otherwise the stock price will only fall more fiercely.

Lin Baicheng himself raised 100 million Hong Kong dollars in funds, Hutchison Whampoa used 100 million Hong Kong dollars for repurchases, and the cooperation between Lin Baicheng and Iwasaki Horyū had 840 million Hong Kong dollars in funds. Although the funds here have a large number of short-selling opponents in the options market, there are also A lot of funds are buying stocks. In addition, funds from HSBC are also buying Hutchison Whampoa shares.

Therefore, despite the violent drop in stock prices, Lin Baicheng and others were not worried at all and bought in without hesitation.

The further the stock price falls, the slower the decline will be, because the less profit can be earned from short selling, the fewer people dare to do short selling, and the more people will enter the market to bargain for a rebound, and the stock market is actually the capital. In the game between long and short parties, whoever has more money will be stronger.

On the Hong Kong Stock Exchange, Hutchison Whampoa is definitely the most beautiful stock today, attracting the attention of many investors.

In the VIP room, Li Jiacheng, Feng Jinxi, Niu Bijian and Bob were watching the trend of Hutchison Whampoa's stock price and the price changes in the options market.

Hutchison Whampoa's stock price fell below HK$3.5, and the closer it got to the price of HK$3, the slower it fell.

Seeing this, Feng Jinxi said: "3 Hong Kong dollars is the previous low, and there is support here, so the decline will slow down now. Once this price can be broken down, more short-selling funds will join in, and the stock price will inevitably rise." Ushering in a new wave of decline.”

Li Jiacheng said: "There was so much rebound in the morning, and now there is support. Do you think it would be better to settle some of the short orders first?"

"Now it is clear that the short side has the advantage, and we will make a lot less profit now that we settle."

Bob immediately retorted. When the short side has the advantage, of course the settlement is better when the stock price is lower, so that you can make more money.

Niu Bijian also said: "I also think it is better to wait for the stock price to fall below 3 Hong Kong dollars before settling."

"Actually we can do this."

Feng Jinxi thought for a moment and said to the three of them: "Let's first see if the stock price can hold up at HK$3. If it can't, of course it's best. We'll settle the short order based on the stock price trend. If the stock price can hold up, According to the trend, we will use another sum of funds to sell stocks through securities lending and break the price of HK$3. At that time, there will definitely be a large number of follow-up orders, but we will take the opportunity to close the short orders."

"Although Hutchison Whampoa suffered a huge loss this time, the stock price fell below HK$3, leaving a total market value of about HK$1 billion. This price is about the same. No matter how much it falls, it will not fall much. The room for decline is limited, and it is not worth it anymore. Adventure, what do you think?”

Bob immediately nodded in agreement: "Mr. Feng is indeed a professional. I will do as you say."

"I don't have any objection either."

Niu Bijian nodded. It was indeed better to do this. If the profit exceeded 50%, he could already stop.

Li Jiacheng did not object, but he said: "I have no objection, but I have no funds."

Feng Jinxi said: "We are selling around the price of 3 Hong Kong dollars. The total market value of Hutchison Whampoa is just over 1.2 billion Hong Kong dollars. Even if it is safer, each of us will pay 10 million Hong Kong dollars. 40 million Hong Kong dollars is completely enough to complete the selling." , it doesn’t even take that much.”

"If you don't want to pay this amount, I don't mind paying an extra 10 million Hong Kong dollars."

Bob looked at Li Jiacheng and said that the reason why he was willing to pay 10 million Hong Kong dollars more was because it was short selling. They sold the market above the price of 3 Hong Kong dollars. After the stock price fell below the price of 3 Hong Kong dollars, he would buy it back. , you can earn a certain price difference. If you have more money now, you will naturally earn more money later.

"I have no extra funds. Since Mr. Bob is willing, I will trouble Mr. Bob."

Li Jiacheng immediately said that he had already arranged for people to buy stocks near the price of 3 Hong Kong dollars, so how could he be willing to continue to spend money to go short. The price between HK$3 and HK$3.5 is not high in Li Jiacheng’s opinion. Even if Hutchison Whampoa’s stock price will fall below HK$3 this time, as long as Hutchison Whampoa remains the largest landowner in Hong Kong, the future real estate industry prospects will be as good as his It is generally speculated that Hutchison Whampoa's stock price will return to this price sooner or later, or even go higher.

Therefore, Li Jiacheng doesn't think he will lose money if he buys Hutchison Whampoa's stock price at this price. At most, it will take a while.

As for the short option orders, Li Jiacheng did not think there was a problem, and Feng Jinxi had a good idea. When the stock price broke through the price of HK$3, he could settle the short orders and be safe.

Li Jiacheng and others believe that when the stock price falls below HK$3, the opponents of short orders who are long will definitely be afraid that the stock price will fall even more severely, so they will accept the price they release for settlement. Unfortunately, they did not know that among their short orders, more than 200 million Hong Kong dollars of the opponent's orders were bought by Iwasaki Mineryu. They had no idea of ​​completing the settlement at a lower price.