Reborn as a tycoon in Hong Kong

HSBC announced that it would reduce its remaining 10% stake in Hutchison Whampoa and will no longer hold shares in Hutchison Whampoa.

Of course, HSBC does not have 40 million shares to sell. The reason for making such an announcement is that it has transactions with the British-owned family and is doing the British-owned family a favor. This makes the market think that HSBC is no longer optimistic about Hutchison Whampoa and has a lot of companies in its hands. I don't want to hold any of it.

It is conceivable that this will depress Hutchison Whampoa's stock price, and it should not be of any benefit to HSBC. However, this transaction between HSBC and the British-owned family is that HSBC will sell 10% of its shares to the British-owned family.

The British-owned family continued to create negative news for Hutchison Whampoa in order to short-sell. HSBC's directors also became a little worried. They were worried that Hutchison Whampoa's stock price would really be unsustainable, so they chose to sell their shares to the British-owned family. It doesn’t matter if the British-owned family short sellers don’t want to buy this time. If they don’t buy, HSBC will choose to support Hutchison Whampoa.

Although many British-owned families have joined forces to put pressure on HSBC, and HSBC must give them face for the sake of the business of those companies, this does not mean that HSBC is willing to sacrifice its own interests for this, especially when the interests are not small.

HSBC wanted to sell Hutchison Whampoa's shares. After discussion, Henry Kaiser and others decided to take over all the shares and treat them as buying back Hutchison Whampoa's shares at a high price. Although they will definitely lose money by doing this, they originally asked HSBC for help, but now they cannot let HSBC side with the bulls, so they have to accept this part of the loss.

Fortunately, this time it was HSBC that wanted to sell its shares, so unlike last time when they bought 20 million shares at a premium of HK$28, this time after negotiation between the two parties, they took over 40 million shares at a price of HK$25.

If calculated based on the stocks lent at the price of 21 Hong Kong dollars, the short side would lose 4 Hong Kong dollars per share on these 40 million shares, for a total loss of 160 million Hong Kong dollars.

This transaction between the two parties did not involve actual stock transfers, because HSBC no longer had that many Hutchison Whampoa stocks, with only about 10 million shares left. Therefore, the transaction between the two parties directly reduced the number of stocks lent by the short side by 4,000. Ten thousand shares, equivalent to the 40 million borrowed shares that have been returned to HSBC.

Of course, the short side of the transaction must transfer the funds to HSBC. However, HK$1 billion is not a small amount, so the short side will pay HK$300 million first, and the remaining HK$700 million will be paid later.

HSBC's influence in Hong Kong is still very large. The outside world does not know the actual transactions between the short side and HSBC, and they think that HSBC really wants to reduce its 10% stake in Hutchison Whampoa. In addition, Hutchison Whampoa itself has negative news. , so a large number of investors followed suit and sold the stock. After the stock price fell below HK$25, it continued to fall.

Of course Hutchison Whampoa's repurchase funds are buying, and even the funds of Bao Yugang, Huo Yingdong and Zheng Yudong are also buying stocks, but the stock price continues to fall because more people are selling stocks.

In the meantime, the stocks on the short side are also selling, but they are no longer the main force. Because the number of stocks is limited, when there is a tendency to stop falling and rebound, a large number of stocks are sold, causing panic orders to follow the trend and continue to suppress the stock price.

Hutchison Whampoa's repurchase funds and the funds invested by Bao Yugang and others add up to nearly 800 million Hong Kong dollars. These funds are still useful for long-term investment, and the stock price has never fallen below the price of 20 Hong Kong dollars.

However, after 11:30, Hutchison Whampoa's repurchase funds were used up. Bao Yugang and three others also called Lin Baicheng one after another to express that they had bought 100 million Hong Kong dollars in shares and that they were not prepared to invest more funds.

In this way, the stock price trend will be left to the market.

Fortunately, we caught a large number of stocks that were sold during the crash, and almost all those who wanted to sell their stocks were sold, so there were no big orders, and the stock price still stood above 20 Hong Kong dollars.

The short side wants to push the stock price below HK$20 so that they can buy back the stock at a lower price. But the problem is that they don't have any stocks in their hands anymore, and they don't have any stocks to sell even if they want to sell them.

At this time, there were only about twenty minutes left before the end of the morning trading. Even if they lent the remaining 10 million shares from HSBC, they would not have time to smash the market, so they made no move.

At the end of the morning session, Hutchison Whampoa's share price closed at HK$21.52, a drop of 18.49% compared to yesterday's closing price of HK$26.4, which was almost a 20% drop.

Hutchison Whampoa, after the stock market closed, Wei Li came to Lin Baicheng's office.

Wei Li asked: "Mr. Lin, the 600 million Hong Kong dollars we borrowed have completed the repurchase. Do we need to allocate funds to continue repurchasing stocks?"

"Of course we need to allocate funds, but we only need to allocate 200 million Hong Kong dollars first, and try not to affect the company's operations."

Lin Baicheng nodded immediately. Now is the time to take advantage of the victory and pursue the victory. How could he let the short side go?

Wei Li was a little worried: "Would the 200 million Hong Kong dollars not be enough?"

Lin Baicheng expressed relief: "If the 200 million Hong Kong dollars are spent again, I will ask Galaxy Games to lend a sum of funds to Hutchison Whampoa for repurchase."

"That puts me at ease."

Weili nodded and said with a smile: "Although the short parties continue to target the company and release bad news, the impact on the company is only temporary. As long as we buy enough, the short parties have no stocks to sell, no matter how they struggle, they will It’s useless, you will definitely lose.”

"They've lost!"

Lin Baicheng also smiled and said: "I don't know if they have noticed the recent trend of gold prices. In the past few days, the gold price has rebounded to around 195 US dollars. It has supported the price of 190 US dollars per ounce many times without falling below. I think 190 US dollars / ounce The price of ounce should be the short-term bottom. Once the price of gold really rebounds, and when the price of gold rebounds to the price of 200 US dollars per ounce, then our investment losses will not be too big. At that time, the stock price will inevitably rebound, and it will be difficult for the short side to survive. ."

These were reported to Lin Baicheng by Vivien Kelly and others. They believed that there was a high possibility of a short-term rebound in gold prices.

"Is this true? Great!"

Weili was overjoyed when he heard this: "I have been busy with other things these days and have forgotten to pay attention to the international gold price. The real disadvantage of short selling is that the company suffers huge losses from investing in gold prices. If the price of gold rebounds, the shorting will be huge." If this is not true, the company’s stock price will inevitably rebound.”

"Let's just wait for those British-owned families to suffer huge losses!"

Lin Baicheng sneered. It was not that easy to make money by shorting his company. I wonder if the British-owned family was ready to make a bloody blow.

Weili nodded in agreement. Although he was also British, the huge losses of the British-owned family had nothing to do with him. He was the chief executive and minority shareholder of Hutchison Whampoa, and would only consider Hutchison Whampoa's and his own interests.