Reborn as a tycoon in Hong Kong

The first day of December, the last trading day of the week.

For more than an hour on Friday morning, the stock market was as volatile as the previous few days. Hutchison Whampoa's stock price closed at HK$23.62 yesterday and almost opened flat today. The stock price also fluctuated up and down in the next hour or so. , neither a big rise nor a big fall.

However, Hutchison Whampoa's trading volume is still the largest among the entire Hong Kong stocks. The trading volume exceeded HK$100 million in half an hour. Many small and medium-cap stocks did not have such a large trading volume throughout the day.

When the time is approaching eleven o'clock.

Several industries, including import and export trade and textiles, began to lead the decline in Hong Kong stocks. The entire Hang Seng Index was soon driven down, falling below the key integer level of 500 points. After the important support level was broken, almost all stocks in the Hong Kong stock market began to fall, and even stocks that had originally risen began to turn around.

When the Hang Seng Index plummeted, Hutchison Whampoa could not avoid it, and the stock price began to fall, no longer fluctuating.

In the afternoon, the stock market continued its early decline, and the Hang Seng Index continued to fall, closing at 466.7 points, with the lowest falling to 461.3 points, a drop of as much as 7% that day.

The entire market has fallen so much, and a large number of stocks have fallen by more than 10% today. The stock market is wailing, and almost no one is spared.

Hutchison Whampoa also fell today, but not by much. The closing price was HK$22.68, a drop of 3.98%, which was barely close to 4%. It fell even less than the broader market.

Hutchison Whampoa's decline is not very large. One of the reasons is that Hutchison Whampoa's subsequent repurchase funds of 200 million Hong Kong dollars were all spent again today, and it received a lot of selling orders.

But those who also bought a lot in the stock market today were short-term British-owned families. They did not choose to take advantage of the trend to suppress the stock price today, but chose to buy stocks. Therefore, the stock market plummeted today, but Hutchison Whampoa did not fall too much. .

After the stock market closed, Henry Caesar and others simply did not leave the exchange and discussed it in the VIP room.

Henry Kasik was the first to say: "Today we bought about 13 million shares at an average price of HK$22.3 and spent HK$290 million. Now we hold a total of more than 17 million shares of Hutchison Whampoa, which is the same as our sales. The empty quantity is still far behind.”

“What is the specific situation of our short selling now?” someone asked.

"We borrowed 70 million shares at a cost price of HK$32, and the average selling price was HK$31.3. We then borrowed another 40 million shares from HSBC, this time at a cost price of HK$25.5, but we subsequently borrowed HK$28 per share. Bought 20 million shares from HSBC at the same price."

"Of the next 60 million shares, we sold 35 million shares at HK$21, 24 million shares at HK$18.2, and the remaining 1 million shares were left untouched. Then we repurchased 3 million shares at an average price of HK$16.6 share."

"In the end, we bought 40 million shares from HSBC at a price of 25 Hong Kong dollars per share. This transaction did not trade specific stocks, but traded on the stocks we borrowed, which is equivalent to buying it at a price of 25 Hong Kong dollars. 40 million shares.”

For short sellers, the cost will be whatever the price was when the stock was borrowed from the brokerage, not the price when it was sold. If that's the case, if you borrow it from a securities firm for HK$20, wait ten days and a half and then sell it for HK$15, it's impossible to say that the cost price of the short position is HK$15, right?

"We short-sold a total of about 130 million shares, but we bought 60 million of them from HSBC, so the number of shares to be returned to HSBC is 70 million, and we currently only have more than 17 million shares. , still short of nearly 53 million shares."

"For now, we have already lost a lot on the 60 million shares we bought from HSBC. The cost price of 20 million shares is HK$28, and the cost price of 40 million shares is HK$25. We have 1 million shares that are not 35 million shares were sold at HK$21 and 24 million shares were sold at HK$18.2, resulting in a total loss of HK$363 million."

"For the remaining 70 million shares, our cost price is HK$32, and the average selling price is HK$31.3. Among them, the average buying price of 17 million shares is about HK$22, and the profit is about HK$200 million. Calculated in this way, we The current loss is HK$160 million."

"However, the point is that there are nearly 53 million shares left. If the entire Hong Kong stock market had not plummeted today, we would not have been able to buy so many shares. Hutchison Whampoa is also still buying back. If we want to buy so many shares The cost price of stocks is likely to be above HK$30. At that time, not only will we not make any money, but we will also lose a lot."

Henry Kaesik shared the calculated data to give everyone a clearer understanding.

"We have suppressed Hutchison Whampoa's stock price to this level, but we didn't expect to lose money!"

"There is no way, the price paid later to suppress the stock price will be too high."

"We cannot let Hutchison Whampoa continue to buy back, otherwise we will only lose money this time and have no hope of making money, and we will not achieve the purpose of suppressing Hutchison Whampoa's stock price."

"I think it's good to be able to maintain capital now. There are simply not many stocks in the market for us to buy."

"."

Everyone started discussing, and everyone was dissatisfied with the possibility of losing money this time and could not accept it. After all, they started shorting from above 40 Hong Kong dollars. Now the stock price is less than 25 Hong Kong dollars, but they have the possibility of losing money. How can they accept this?

"At noon, I went to see the Americans who represented the company that spent 2 billion Hong Kong dollars to buy stocks. They did not accept selling the stock to us at a price of 25 Hong Kong dollars. They said there was no need to discuss it if it was less than 40 Hong Kong dollars per share. The price we offered was too different, so we had to buy from the stock market.”

"If we buy stocks from the stock market and Hutchison Whampoa repurchases them, the average price we buy will only be above HK$30. After all, we have a lot to buy."

"As I said before, we will continue to use off-market moves to suppress Hutchison Whampoa's stock price. The stock market is not doing well right now. Once influential negative news drives it, it will be difficult for Hutchison Whampoa's stock price to fall."

"We have to stop Hutchison Whampoa itself, and we cannot allow Hutchison Whampoa to use funds for buybacks anymore."

"Taking advantage of the fact that tomorrow and the next two days are weekends, let's work together to get things done."

After discussion, Henry Kaiser and others decided to use off-market moves to suppress Hutchison Whampoa's stock price, while taking advantage of the depressed stock price to buy stocks low so that they could return the stock to HSBC.

Henry Caesar and others also know very well that no matter how they suppress the stock price, if the bulls do not sell the stock and continue to buy, the stock price will rebound sooner or later. At that time, they will face the situation of returning no stock to HSBC. Huge losses, so they must buy back the short-sold stocks while the stock price is not high.