Reborn as a tycoon in Hong Kong

After the market opened in the afternoon, Hutchison Whampoa's stock price continued to fall.

At 2 o'clock in the afternoon, when people arranged by Goldman Sachs began to buy Hutchison Whampoa shares, Hutchison Whampoa's stock price had fallen to HK$77.2, a drop of 9.28% that day. At its lowest, the stock price fell to around HK$75, because It fell too much and rebounded a little.

In the entrustment agreement signed between Goldman Sachs and the offshore company, the lower the cost price for Goldman Sachs to buy Hutchison Whampoa, the more remuneration Goldman Sachs can get. Therefore, Goldman Sachs people did not buy goods in large quantities, but sneaked in small amounts. field.

Although Hutchison Whampoa's stock price has rebounded due to too much decline, the overall trend is still mainly downward, so Goldman Sachs' initial small amount of buying cannot change anything, and the stock price will continue to move.

After Goldman Sachs' funds began to buy, Hutchison Whampoa's stock price rebounded for another ten minutes. The stock price rebounded to a maximum of HK$79 before turning around and falling. However, this time the decline was not a straight drop, but a slow downward trend.

The current selling price of Hutchison Whampoa is too great. Even if there are funds from Goldman Sachs buying, it still cannot stop the downward trend of the stock price, and the stock price is slowly heading towards the previous low.

Time passes slowly.

With the continuous buying of funds from Goldman Sachs, although Hutchison Whampoa's stock price fell below the previous low price of HK$75, it quickly rebounded. Moreover, many attempts by sellers to break through this price failed to materialize. In the end, Let the bulls form strong support at this price.

When Hutchison Whampoa's stock price rebounded to HK$77, it was already three o'clock in the afternoon. Goldman Sachs spent nearly HK$500 million buying the stock. Such a large amount of capital was needed to support the stock price.

Now, as long as the short side does not sell a large number of stocks, as long as there is no sudden huge negative impact on Hutchison Whampoa, then Hutchison Whampoa's stock price can be supported above the price of HK$75. As for whether it can rebound to the price range of HK$80 , it depends on whether the short side is strong, and retail investors are not optimistic about Hutchison Whampoa's prospects.

In the large room where British capital is located.

"It has been found that Goldman Sachs is constantly buying Hutchison Whampoa's stocks. It is currently known that the funds purchased are at least HK$400 million."

The men were reporting the findings to Henry Kasik.

Michael Kadoorie, George Swire, and John Madden are not here now. Only Henry Caesar is here. They all have work to do, so just arrange for one of them to stay here. If anything happens The situation can also be dealt with immediately.

Ten minutes ago, when Hutchison Whampoa's stock price was trading at HK$75 for a long-short bet, the people below told Henry Kaiser that there were large funds buying Hutchison Whampoa's stock, and it was impossible for retail investors to form such a consensus. There was a consensus, so Henry Caesar immediately arranged for people to go to the exchange to investigate who was buying Hutchison Whampoa shares in large quantities.

“It’s actually Goldman Sachs?!”

Henry Kaiser couldn't help but frown. Of course he knew about Goldman Sachs, a Wall Street giant. He originally thought it was Lin Baicheng's people who were secretly buying. He also wanted to catch the other party and seize Lin Baicheng's handle, and then teach Lin Baicheng a lesson. Unexpectedly, it was... It has nothing to do with Lin Baicheng.

"Damn Americans, you don't even give me face! This is Xiangjiang, not the United States!"

Henry Caesar had an angry look on his face. As a British person, he looked down on Americans like many people in his country. However, the United States was now stronger than Britain. Internationally, British capital could not compete with American capital, so many benefits were lost to American capital. It was swallowed up, leaving British capital helpless.

But this is Xiangjiang, the territory of British capital. American capital does not have much strength here at all. Wall Street capital has just arrived in Hong Kong a few years ago and does not have much strength at all. Yet it dares to offend British capital. If British capital If you don't respond, others will still think you are British-funded because they are afraid of being American-funded.

However, retaliation against Goldman Sachs is a matter for the future. The most important thing now is the matter of shorting Hutchison Whampoa. We cannot put the cart before the horse.

Taking advantage of the fact that there was still an hour before the stock market closed, Henry Caesar immediately contacted Michael Kadoorie, George Schweizer, John Madden and Shen Chow respectively to inform them that Goldman Sachs was buying Hutchison Whampoa shares, and Ask them if they want to spend a sum of money to suppress Hutchison Whampoa's stock price.

Others were also surprised and angry when they learned that Goldman Sachs was doing long, but now is not the time to be angry. They should first decide how to respond.

After communication, the British capital reached a consensus that it would spend about 500 million Hong Kong dollars to suppress the stock price. It would be best to suppress the stock price so that the stock price falls below 75 Hong Kong dollars. If this is not possible, it cannot allow Hutchison Whampoa's stock price to have a larger increase. It would be bad if Goldman Sachs bought Hutchison Whampoa's share price to rebound to above HK$80, or even to a higher price.

Although the British capital was short-selling very early this time, and the cost price was close to 100 Hong Kong dollars, even if the stock price rebounded, it would not be a loss. However, after a series of measures, not making a profit is a loss for the British capital. After all, using contacts is also a kind of intangible capital.

British capital is short selling, and short selling requires borrowing stocks to sell. For this, you can go to HSBC, which has a large number of Hutchison Whampoa stocks.

At 3:20 in the afternoon, there were 6.6 million more Hutchison Whampoa shares in the British short-selling account, accounting for 1.5% of Hutchison Whampoa's total share capital. Calculated based on the current Hutchison Whampoa stock price of approximately 77 Hong Kong dollars, these stocks The value is as high as more than 500 million Hong Kong dollars.

If all these stocks are sold, it will be equivalent to British capital spending more than 500 million Hong Kong dollars to short Hutchison Whampoa.

"Sell a large amount of stocks and smash the market with big orders. Let everyone know that there are big funds shorting Hutchison Whampoa's stock, let more short-selling funds follow the market, and make retail investors panic."

What the British capital wanted to do was to suppress Hutchison Whampoa's stock price, rather than secretly place short orders, so they chose to place large orders to smash the market.

As large selling orders from British capital continued to be issued, Hutchison Whampoa's stock price immediately turned downward, and the decline was quite fast.

By the time Goldman Sachs reacted and asked people to buy in large quantities, Hutchison Whampoa's share price had fallen to around HK$75.

One person sold a large amount and the other bought a large amount. Hutchison Whampoa's stock price immediately fluctuated at the price of HK$75, and the amplitude fluctuated by two percentage points. The long and short sides formed a stalemate.

In this situation, anyone with a discerning eye can see that there are big funds going short and long respectively. One wants to suppress the stock price, and the other wants to raise the stock price. No one will give in.

However, at present, there are obviously more short-selling funds on Hutchison Whampoa stock. Therefore, when other short parties saw the long-short game, they followed suit. Their interests are consistent with those of British capital.

In less than thirty minutes, all of Goldman Sachs' remaining funds of more than HK$500 million were used up.

As Goldman Sachs stopped buying, the bulls were completely defeated, and Hutchison Whampoa's stock price could no longer resist. It immediately fell again. This time, it was not only guided by the main short sellers, but also a large number of retail investors who were watching. Sell ​​your stocks after following the trend.

“73 Hong Kong dollars”

“72 Hong Kong dollars”

“71 Hong Kong dollars”

“70 HKD”

Hutchison Whampoa's stock price fell below HK$70 within a few minutes, falling as low as HK$68.5. However, it rebounded slightly before the close and finally closed at HK$70.8 that day.

Yesterday, Hutchison Whampoa's closing price was HK$85.1, and today's closing price was HK$70.8, a drop of HK$14.3 that day, a drop of 16.8%. The total market value evaporated by HK$6.3 billion that day, leaving only a total market value of HK$31.152 billion.

Hutchison Whampoa's decline today is even greater than yesterday. In fact, if there were no funds from Goldman Sachs, Hutchison Whampoa would not have fallen so much today, and the stock price is likely to close above HK$75.

Goldman Sachs' funds entered the market to go long, so that British capital sold a large number of stocks, and other short parties followed suit and sold, which then caused more retail investors to panic and sell their stocks, causing the stock price to fall even more severely.

In the large room where British capital is located.

"Very good, the Yankees really don't have much strength."

When the stock market closed, seeing Hutchison Whampoa's share price closing at HK$70.8, Henry Kasik was not only happy, but also disdainful of Goldman Sachs.

Henry Caesar did not leave the main room immediately. He waited for the subordinates to gather and report to him.

After a few minutes, the rollup ends.

"President, of the remaining 6.6 million shares, we sold a total of nearly 4.2 million shares, all of which were sold above HK$72. Most of them were sold near the price of HK$75, with an average selling price of HK$74.15. Total Obtained HKD 399.9 million in funding."

"Below HK$72, we bought a total of more than 610,000 shares of Hutchison Whampoa. The average purchase price was HK$70.4, and a total of HK$43.2 million was spent."

"We still need to buy back 3.565 million shares of Hutchison Whampoa shares to close the previous short order, and the funds recovered from the previous short selling are still HK$266.7 million. As long as the average buying price of our remaining 3.565 million shares is lower than 74.81 Hong Kong dollars, then we will not lose money on this short sale.”

"There are 3.565 million shares left to be bought back. The lower the average purchase price, the higher our profit will be."

"Because we are not sure whether Lin Baicheng will use other means to protect the market two days after the weekend, we cannot accurately judge the specific amount of funds required to buy back a sufficient number of stocks, and we cannot judge whether the subsequent short sale will be profitable."

After listening to the returns from his men, Henry Kaesik had a rough idea. Generally speaking, the forced short selling in the afternoon would not cause too much loss, and they could even make more if everything went well.

Originally, according to the plan of Henry Kaiser and others, it would have been good to bring Hutchison Whampoa's stock price to HK$75 today. However, because of Goldman Sachs' long position, they had to borrow stocks from HSBC again to go short. Instead, Hutchison Whampoa was Huangpu's stock price has hit a lower price.

If everything goes well, they can push Hutchison Whampoa's stock price to a lower price this time. Not only will those who shorted later make a profit, but more short orders that were shorted before will also make more.

“We can’t let Goldman Sachs do bad things!”

Henry Kaiser thought about Goldman Sachs, which bought almost 1 billion Hong Kong dollars today. If Goldman Sachs buys Hutchison Whampoa shares next Monday, it will definitely affect their income, so it must be stopped.

Now that he was alone here, it was not time to think so much. Henry Kasik immediately contacted the other partners and told them the good news. No matter what happens next, today's closing price of Hutchison Whampoa is only a little over 70 Hong Kong dollars, which is good news for them.

When Henry Kaiser informed his partners of the good news, Dawell also contacted Qin Lan and told Qin Lan the number of stocks purchased by Goldman Sachs, the average purchase price, and the closing price of Hutchison Whampoa, so that Qin Lan would be reassured. There are several.

According to statistics, the average price at which Goldman Sachs bought stocks was HK$76.3. After deducting handling fees, a total of 13.1 million shares were purchased with a capital of HK$1 billion, accounting for 2.977% of Hutchison Whampoa's total share capital, which is nearly 3%.

After Qin Lan found out, he went to report to Lin Shufang and told Lin Shufang the situation.

From Qin Lan, Lin Shufang knew that the offshore company had to pay Goldman Sachs tens of millions of Hong Kong dollars in additional entrustment fees. The specific fees had to be calculated after communication between the two parties. Based on this calculation, the average purchase price of the 13.1 million shares should be around 80 Hong Kong dollars. .

Lin Baicheng had previously told Lin Shufang that as long as Hutchison Whampoa's stock price fell below HK$80, it could be bought in large quantities. Therefore, the average buying price of HK$80 was acceptable and did not exceed expectations.

Because the stock market will be closed tomorrow, Saturday, Lin Shufang is not going to go to Xinhua News Agency to contact Lin Baicheng now. When Lin Baicheng contacts Xiangjiang tomorrow, it will not be too late to talk to Lin Baicheng about this matter. Anyway, there is no difference between talking now and talking tomorrow.

Lin Shufang said to Qin Lan: "Director Qin, that's it for today. When Mr. Lin contacts us tomorrow, he will definitely tell us if he has any instructions."

"Okay, Vice President Lin, I'll come back and tell you if there's anything else."

Qin Lan responded and left the office.

Hutchison Whampoa's sharp decline today still had a considerable impact. The Hang Seng Index was pulled down a lot, causing other stocks to follow suit. The decline of a large number of stocks seemed like a stock market crash was coming.

However, everyone knows that it is not that the stock market crash is coming, but that Hutchison Whampoa's impact on the Hang Seng Index has been so great that many investors have panicked and sold their stocks. This is the result.

In fact, because of the current improvement in Hong Kong's economy and the upward trend in land prices and property prices, the Hong Kong stock market is booming.

The decline of the Hang Seng Index in the past few days can be said to be a mistake. After investors react, the index will definitely rebound.

Early next morning.

The special train that Lin Baicheng and others took arrived in Peiping, and the reception staff arranged for the group to rest in the State Guesthouse.

There are a total of Building 18 in the State Guesthouse. Although Lin Baicheng and others were uniformly arranged into Building 14, this is already a great deal of official attention to them, because this is a place specially used by the country to entertain heads of state.

After all, at a time when the ownership of Xiangjiang is still unclear, Lin Baicheng and other people can accept the official invitation to come to the mainland, and their position of siding with the mainland is self-evident. The group is taking risks, and the officials see it. Naturally It can't be disappointing, so the entertainment standards are arranged to be higher.

Because it was early in the morning, everyone went to sleep in their respective rooms at the State Guesthouse.