Reborn as a tycoon in Hong Kong

"Taban Shen, you said it was the British-owned families who were short-selling Hutchison Whampoa through Standard Chartered Bank. Wasn't it the funds from Singapore and Malaysia that were short-selling through HSBC?"

After listening to Shen Porridge's words, Lin Baicheng couldn't help but ask. At the beginning, Weili reported to him that the funds from Singapore and Malaysia were short selling through HSBC. Logically speaking, it was impossible for Weili to check the error in this kind of thing.

"There was a group of funds from Singapore and Malaysia that were shorting, but there were not a lot of funds, and there was no other movement after that."

Since Lin Baicheng already knew about this, Shen Porridge did not hide it, but he did not tell the specific short selling situation of this fund.

"So, it's up to the two funds to do their own thing."

Lin Baicheng was a little speechless. Is this a big success? Otherwise, there wouldn't be many funds shorting Hutchison Whampoa.

Shen Zongdao: "The British-owned families are short-selling through Standard Chartered. According to my current investigation, their initial short-selling price should be between 40 Hong Kong dollars and 45 Hong Kong dollars, which is when the gold price begins to fall below 210 US dollars per ounce. Later, when the price of gold fell to US$200 per ounce, Hutchison Whampoa’s stock price fell below HK$40, and they increased their short selling efforts.”

After hearing this, Lin Baicheng said: "Obviously, they knew the long cost price of Hutchison Whampoa, and they only started short selling after confirming that Hutchison Whampoa's investment was unprofitable. After Hutchison Whampoa's investment suffered losses, it became even more The intensity of short selling has been increased.”

"According to what you said, their short selling cost price should not be higher than 40 Hong Kong dollars. Let's calculate it based on the average price of 40 Hong Kong dollars. Today, Hutchison Whampoa's stock price is about 25 Hong Kong dollars, and their short selling profit is about 37.5%. , It’s already quite a lot.”

"Taban Shen, do you think they will end their short selling near this price and buy back the stocks and return them to the brokerage?"

The profits of short selling are often incomparable with those of long selling. If the stock price drops from HK$40 to HK$20, short selling can only get 50% profit; but if it rises from HK$20 to HK$40, the increase will be 100%, and going long will Can get 100% profit.

"I'm not them, and I can't determine what they think. I can only express my personal opinion."

Shen Porridge said aloud: "From my own point of view, Hutchison Whampoa's previous stock price contained bubble elements and was somewhat artificially high. Now with Hutchison Whampoa's investment experiencing huge losses, coupled with the reversal of logic, The stock price will not only return to normal, but will even become oversold, coupled with the push from short sellers, so the total market value of Hutchison Whampoa is very likely to fall below 10 billion Hong Kong dollars. If I were short selling, at least the stock price would rise Buy it back when it falls below HK$20, so the profit will be higher."

"If it's the same as what you said, Mr. Shen, then I have some ideas."

Lin Baicheng said aloud: "I have found friends in the United States. They are willing to help buy some stocks after the stock price falls below 25 Hong Kong dollars. If the short side does not have much funds, it may be possible to support the stock price."

After hearing this, Shen Porridge said: "Lin Sheng, I can only rely on you this time. HSBC has no ability to help. All we can do is not hold back."

"I will try my best!"

Lin Baicheng said and hung up the phone.

Lin Baicheng was not sure whether Shen Zhou had any contact with the short-selling British family, but the information he revealed was nothing at all, because even if he didn't tell it, the stock price fell below 25 Hong Kong dollars many times and was supported by the short-selling British family. He was not a fool, so he would definitely notice that something was wrong, whether Lin Baicheng said it or not.

However, Lin Baicheng was a little surprised by the short-selling funds from Singapore and Malaysia. He guessed that the short-selling funds were just to make a profit from short selling, and were not intended to target Hutchison Whampoa. Otherwise, it would make no sense and there would be no action since then.

In a VIP room of the Hong Kong Stock Exchange.

Henry Caesar, Michael Kadoorie, George Swire, John Madden and others are all here, each of them representing a British-owned family. For example, Henry Kadoorie represents the Kadoorie family that controls Jardine Matheson, Michael Kadoorie represents the Kadoorie family that controls China Electric Power, Peninsula Hotels and other companies, and George Swire represents the Swire family that controls the Swire Group. John Madden represented the Madden family that controlled Wheelock.

In addition to them, there are several people here representing their respective families and companies, but their industries are incomparable to those of Henry Caesar and others, so the four of them are headed by Henry Caesar and the others.

This time, these British-owned families joined forces to short-sell Hutchison Whampoa. In addition to Henry Caesar's conspiracy, they also wanted to teach the Chinese-owned families a lesson. Lin Baicheng, who took the lead, was regarded as a target of power. .

"Hutchison Whampoa's stock price is currently fluctuating around HK$25. It seems that there is obviously a financial support. Should we continue to suppress the stock price?"

Henry Caesar asked aloud. They had just asked their subordinates to calculate. They borrowed 40 million shares of Hutchison Whampoa stock at the price of 42 Hong Kong dollars. About 30 million shares were sold at an average price of 39.5 Hong Kong dollars. The remaining 10 million shares were sold at a price this morning. Only 2 million shares were sold when the price was above 25 Hong Kong dollars. The remaining 8 million shares were almost sold at a price below 25 Hong Kong dollars, but now the stock price is still at this level. The price fluctuated around the price and did not fall.

John Madden said solemnly: "As long as Hutchison Whampoa does not have huge benefits, our cost price is still very safe, so I think we can continue to suppress the stock price. Otherwise, if we buy back the stock now, if there is a lot of money to compete with us, If the stock price rebounds to above HK$30, then our short selling will not make much sense."

Michael Kadoorie also said: "Our principal of 500 million Hong Kong dollars, after using five times leverage, is 2.5 billion Hong Kong dollars, but we only used 1.68 billion. Now the stock price has dropped to about 25 Hong Kong dollars. We can definitely make a profit here." At that price, we will borrow another 30 million shares and sell them.”

"For stocks worth HK$750 million, plus the more than HK$100 million that had been caught previously, unless the funds available to the long side are HK$1 billion, it would be impossible to catch all the sell orders."

George Schweizer nodded in agreement. He didn't think the bulls had that much money.

Henry Caesar looked at a few other people, and after seeing that they all nodded in agreement, he asked people to continue borrowing stocks. There was no need to hide it now, so they directly asked HSBC to discuss securities lending and borrowing stocks.

Soon, 30 million shares of Hutchison Whampoa were lent to Henry Kaiser and other short sellers by HSBC. Although HSBC is a shareholder of Hutchison Whampoa, securities lending is a business, and HSBC has no reason to refuse door-to-door business.

As short sellers began to sell a large number of stocks in the market, the stock price was quickly suppressed. However, traders from Goldman Sachs and other institutions reacted and immediately took a large number of orders.

Selling a large amount while buying a large amount, the result is that the stock price will fall sharply and rise sharply, but overall it will still fluctuate within the 25 Hong Kong dollar range, but this time the amplitude of the fluctuation is relatively large.