Reborn as a tycoon in Hong Kong

After eleven o'clock, Hutchison Whampoa's stock price rebounded after fluctuating at HK$28, but was suppressed by the integer level of HK$30, closing at HK$29.41 in early trading.

Although it did not rebound above HK$30, compared to last Friday's closing price of HK$22.68, the increase this morning still reached 29.67%, nearly 30%.

Although Hutchison Whampoa's stock price has soared, the overall stock market is still not doing well, and the Hang Seng Index continues to fall. Fortunately, Hutchison Whampoa is a large-cap stock, which has a great impact on the index. In addition, it has an increase of nearly 30%, so the Hang Seng Index did not fall much in the morning, only less than 1%.

At one o'clock in the afternoon, the stock market started to move in midday trading. Hutchison Whampoa's stock price stood above 30 Hong Kong dollars and fluctuated above 30 Hong Kong dollars.

The reason why it was able to stand above 30 Hong Kong dollars in the afternoon was because Hutchison Whampoa issued an announcement after twelve o'clock, stating that the company's chairman Lin Baicheng would hold a press conference at two o'clock in the afternoon to express his views on the recent huge fluctuations in the company's stock price. and answer some questions from reporters.

But in the eyes of the market, this was a signal that Lin Baicheng was going to announce a good signal, so the stock price naturally rose a little. The reason why it didn't rise much is because the positive news is just speculation. The market will choose a direction based on the content of the press conference after the press conference at two o'clock.

Before two o'clock in the afternoon, Hutchison Whampoa's stock price had been fluctuating above HK$30. Although the trading volume was not small, the stock price neither rose nor fell sharply.

Henry Kaesik and others were also very worried, not knowing what Lin Baicheng would announce when he held a press conference, but they could not prevent this, so they could only wait for the press conference to be held. When the truth is unknown, they certainly cannot choose to sell the stock to suppress the stock price, but buying now is tantamount to admitting defeat in disguise, so they did not buy it and were just spectators.

Two o'clock in the afternoon arrived with many people's expectations. The TV stations and newspapers sent reporters to Hutchison Whampoa's press conference.

First, the emcee pointed out the theme of the press conference and asked reporters to abide by the order of the venue. When it was the reporter's turn to ask questions, the reporters would raise their hands to ask questions in an orderly manner, and then speak after the roll call, etc.

"Good afternoon, fellow journalists."

"Regarding the recent huge fluctuations in the company's stock price, as the chairman of Hutchison Whampoa, it is necessary for me to provide some explanations so that the majority of shareholders can understand the company's current situation and avoid unnecessary losses due to following what others say."

"When I acquired Hutchison Whampoa, Hutchison Whampoa's stock price was around HK$7. Since then, because I was too young, I was not recognized by the market. Shareholders were worried that I would not be able to manage Hutchison Whampoa, a large company. , so Hutchison Whampoa’s share price fell to about HK$6.”

"After that, a short party suddenly shorted Hutchison Whampoa, causing Hutchison Whampoa's stock price to plummet. However, this short party obviously did not do its homework. It did not even check whether Hutchison Whampoa's investment was a loss or a profit before going short. Later, the company’s investment profits were exposed, causing the stock price to rise sharply.”

"Then there are the huge profits brought to Hutchison Whampoa by the investment department that I preside over. It brought a total of more than 1.8 billion Hong Kong dollars in profits, which caused Hutchison Whampoa's stock price to rise to the price of 70 Hong Kong dollars."

"In the meantime, Hutchison Whampoa's own business has also developed well. Subsidiaries and departments that cannot bring profits to the company have either been abolished or sold. The company has completed its downsizing this year and has become stronger. These have started from half a year It can be seen in both the annual report and the third quarterly report.”

"It can be seen from the company's semi-annual report and third quarterly report that there is no problem with the company's operation itself. Even as of the third quarterly report, it has brought more than 200 million Hong Kong dollars in profits to the company. It can be predicted that this year's profit growth will be half of last year's More than times."

"While there are no problems with the company's operations, the reason why the company's stock price has plummeted recently is not only because it rose too high in the early stage and needed a correction and the Hang Seng Index fell as a whole, but also because the company was shorted again by funds. ."

"Before being shorted, the company's stock price had been fluctuating between HK$35 and HK$40. Obviously the market recognized this price range as the company's normal market value."

"The reason why the company was shorted before was due to huge investment losses. I want to make a statement here. This was true at the beginning, but now the rebound in gold prices has made the company's investment losses not large, and I am convinced that gold prices will rise in the future. The company brings high profit returns.”

"Since I was able to bring huge profits to the company through investment before, I can still bring huge profits to the company this time. I only started to make a fortune last year. Many people think that I am lucky. I do not deny this. I even believe that my luck will be passed on to Hutchison Whampoa and bring huge profits to Hutchison Whampoa.”

"So, I think the current price of less than HK$30 per share is not the true price of Hutchison Whampoa. It should be at least HK$40 or even higher to meet the market value of Hutchison Whampoa."

"I know that since Hutchison Whampoa was shorted, negative news about the company has appeared in the market from time to time, but those negative news cannot bring down the company at all. Take the company's branch in London as an example. At that time, the IRS came to inspect its accounts, which caused negative news. , but the fact is that the IRS has not found anything so far, because the company has not evaded taxes and is not afraid of investigation, so similar negative news cannot affect the company at all, and the market should not overreact to similar negative news."

After finishing speaking, Lin Baicheng nodded to the master of ceremonies.

The emcee immediately announced that it was time to enter the reporter's questioning session. Lin Baicheng named the reporters of Asia Television to ask questions first.

"Mr. Lin, you said that Hutchison Whampoa's stock price should be at least above 40 Hong Kong dollars. What is the basis for this?"

The questions asked by reporters were arranged in advance by Lin Baicheng.

Therefore, Lin Baicheng said in a deep voice: "The short side will sell at least 70 million shares below HK$25. Even if the short side sells some stocks at a high level, the average cost price of the two will not be lower than HK$25." Hong Kong dollar. With nearly HK$2 billion in short selling, I don’t think the short side will not use leverage. Once the short side uses more than three times the leverage, the short side will be very close to liquidating the position.”

"Once the short side liquidates its position, HSBC, which lent the stocks to the short side, will definitely immediately buy a large amount of Hutchison Whampoa's stock. At that time, Hutchison Whampoa's stock price will inevitably rise sharply, and it can easily exceed 40 Hong Kong dollars or even 50 Hong Kong dollars. price range.”

"In order not to liquidate the position, the short side can only buy Hutchison Whampoa's stock before the liquidation. This is equivalent to raising the stock price. Therefore, the possibility of Hutchison Whampoa's stock price rising far exceeds the possibility of falling."

"However, the benefits brought by exploding the short side are huge. If the stock price can be raised above HK$50 or even HK$60, all investors who buy and hold Hutchison Whampoa stocks will make huge profits."

Although Lin Baicheng was stating the facts, he was also tempting investors to buy Hutchison Whampoa shares. Fortunately, this was Hong Kong in 1978, and supervision was not so strict, so he would not be invited to tea for his speech.

(It’s just one chapter today. If you’re missing a chapter, I’ll try to make it up tomorrow)