Reinventing the Millennium

The late night of April 17th was particularly cold.

The news from Yike is like pouring a basin of cold water on the head of the short-selling institution in winter, or like pouring boiling water down the throat in the scorching heat.

Yes, it's more like boiling water. No matter what the season is, you have to make a sound in pain!

how could you do this?

Mr. Fang!

The changes brought about by Yike's shareholding are still being discussed on Twitter, but all short-selling institutions, financial practitioners, and people with relevant knowledge or a little understanding of the significance of the news know what happened!

Together with the holdings locked by shareholder institutions due to reduction of holdings, Yike can control 89.3%, leaving only 10.7% on the market. However, according to the short positions released by the Nasdaq exchange on Wednesday, Yike was shorted Position size accounts for 15.6%.

10.7-15.6=-4.9%.

Negative 4.9%!

This means that, under the most ideal situation, short-selling institutions will short all circulating stocks on the market, leaving 4.9% of the stocks unaccounted for!

The total of all stocks is 100%, now it is 104.9%!

Where did this 4.9% liquidation come from?

And why does this happen?

Because the U.S. financial market can be naked short-selling, there are a variety of financial derivatives.

Under normal circumstances, when looking at the development of Yike and wanting to short it, investors borrow stocks from institutions and sell them, then buy them back when the stock price drops to a low level. They sell at a high price and buy at a low price. Profits appear in the middle, and the stocks bought back are Still returning it to the institution is short selling.

Naked short selling means directly selling the stocks you don’t have on the market without borrowing the stocks, and then buying the stocks from the market for delivery within the agreed period.

This can result in more stocks being created out of thin air.

Financial derivatives are somewhat similar. There are products based on securities lending and naked short selling, as well as complex trading profit-making tools such as A borrowing B, B borrowing C, and C borrowing D, etc., which can also bring "extra" stocks. .

This is the case with Yike now.

The consequences of this situation are...

There are no longer enough circulating stocks on the market, so short-selling institutions quickly buy up enough stocks to close their own positions. As for the institutions that cannot buy the stocks later, who cares whether they live or die?

There are 15 people in total. You can survive by running out of this door, but there are only 10 people. After running out, the door will be closed.

This is the situation that short-selling institutions are now facing, squeezing and trampling each other, and having to push the stock price to rise rapidly when supply exceeds demand, that is, short-squeezing.

It is almost conceivable, no, no need to imagine, this time there will inevitably be margin calls, liquidation, liquidation, bankruptcy, jumping off the building... And the only person who can end this situation is Fang Zhuo, the head of Yike!

Mr. Fang, where are you?

Mr. Fang, where have you flown to?

Mr. Fang, you took my soul away too!

Mr. Fang, you dropped your riches and I picked them up for you. Come and get them!

Mr. Fang, come back quickly, the exchange has issued money!

Patent wars don’t matter anymore! The ITC ruling is no longer important!

As long as Nasdaq opens on Monday, panic will inevitably occur, stock prices will inevitably be pushed up, and various positions will be liquidated!

"How could this happen? How could this happen..." Wall Street bounty hunter Andrew sat in front of the computer and was stunned for ten minutes. As soon as a thought arose in his mind, he was entangled with another thought. In the end, it became more and more entangled, and he couldn't think of anything. Not sure, just mumbling to himself.

The mobile phone on the table buzzed and vibrated, and the landline phone at home rang.

It took Andrew a long time to come to his senses. He stood up unsteadily and reached for his phone. Before he could get it, his legs gave out and he fell back.

He was almost certain that he was doomed this time.

Unknowingly, another half hour passed in a daze. Andrew forced himself to cheer up, drank the cold coffee on the table in one gulp, slapped himself again, then picked up his cell phone and called back the frantically calling fund partner.

"What should I do? What should I do?" Even though some time has passed since Yike's press conference, the partner's voice is still trembling, and even the accusations and reprimands are weak, "Yike has squeezed short, and we have broken into a trap!"

Andrew was a little distracted, yes, he broke into a trap.

It took him a while to speak, but then he found his voice hoarse: "We want to sue Fang Zhuo! He is manipulating the market! We are looking for someone, we are looking for someone, we are going to threaten him! We, we..."

Fang Zhuo has flown away!

There are only two days between now and the opening of Nasdaq. How can there be a threat across the Pacific Ocean during these two days? Who to threaten? Looking for Nokia? Looking for the SEC? Looking for ITC?

Who can threaten a shameless, despicable, vicious and vicious global rich man who has already planned it in two days?

Who can make such a person give up the profit that is about to be at least billions of dollars?

Andrew was speechless and suddenly laughed to himself.

"Andrew, Andrew, Andrew." The partner on the phone suddenly called out to the Wall Street bounty hunter and said, "There are still two days left, or you can fly to China now to find Fang Zhuo. Go find Mr. Fang!”

"What should I do?" Andrew said numbly.

The partner suddenly became furious: "I've said it before, I've said it before, you are too high-profile. Why did you offend Mr. Fang? Why did you go on the show to question him? Go to Dongfang and apologize to him!"

Andrew said sadly: "It's useless. How could he stop just because of this?"

"You're not alone! The fastest ticket has been sold out!" The partner calmed down and said, "Go to Mr. Fang, beg him, cry bitterly, go find his company, even if it means jumping, Jump off his building too!"

Andrew said numbly: "Okay."

"I heard that the top executives of Goldman Sachs are also going to China overnight! Come with them!" The partner said the latest news.

Andrew subconsciously asked: "Goldman Sachs is going too? What are they going to do?"

Isn’t Goldman Sachs working with Yike?

It was as if his mind had been activated.

Andrew instantly realized what was happening again, which was grand!

He took two breaths, and a glimmer of hope suddenly arose in his heart. He jumped up from his chair: "Goldman Sachs is also going to China. They realize the seriousness of the problem and will definitely have chips to threaten Fang Zhuo!"

"No." The partner said firmly, "Goldman Sachs also went to seek help from Mr. Fang!"

Go and beg!

Also go and ask for it!

Form a group to ask for help!

Wherever Mr. Fang flies, fly there immediately!

As long as Mr. Fang is willing to talk, you can kneel down and beg him!

No, kneel down first and then beg!

Andrew took two deep breaths of air and his eyes fell on the computer screen. It was still the previous information. It included the Yike press conference and the previous fun. Fang Zhuo paid attention to the question: What is the state after bankruptcy?

What is the status after bankruptcy? What does it look like? What does it look like?

I thought this was Mr. Fang's self-report, but I didn't expect that his sudden concern was directed at me.

Andrew thought about Mr. Fang's performance these days. He just took two steps and felt that his legs and feet were weak, his heart was numb, and his scalp was numb.

…

The Qingzi arrived in Chinese airspace safely.

Due to the time difference between the two places, Fang Zhuo and his team, which took off from New York in the afternoon, were about to arrive in Shanghai in the afternoon.

The two reporters from "China Securities News" who took the opportunity on this trip were really glad to come back with them. As expected, they interviewed the parties as if they were exclusive interviews.

Reporter Tao Ruohong met Mr. Fang for the first time and found that he was kinder and more talkative than expected.

Yike is now facing a crisis, which ultimately comes down to the situation at the patent level.

Therefore, Tao Ruohong deliberately did not ask about Yike's recent stock price changes, but asked Mr. Fang to talk about his thoughts on corporate development. Yike's thoughts must have changed with the stages from weak to strong and then to encountering challenges. It's different.

As expected, Mr. Fang reflected a lot on the development of Yike.

Whether it was the supply chain, products or cooperation between all parties, Mr. Fang carefully reviewed it and admitted with some regret that he had not been able to do his best in the process.

Tao Ruohong silently recorded it. Seeing that Mr. Fang didn't talk about recent lessons, he guessed that he might be distressed or even painful.

Halfway through the voyage, the interview-type conversation ended.

Tao Ruohong noticed that Mr. Fang was very focused on reading English books, and it didn't feel like a show, so he asked about the content.

"It's a book by an American economist named Friedman, who won the Nobel Prize in Economics." Fang Zhuo introduced casually, "He used rational expectations to explain the causes and different stages of stagflation. Well, quite Attractive."

Tao Ruohong was sure that he had never heard of this name.

She also had some doubts that Qi Fang was always putting on a show in front of her.

When Mr. Fang put down the book and started to look through the information, Tao Ruohong politely borrowed the book and after flipping through it, he found that there were notes on it.

——Unemployment and inflation, in the first stage, are negatively correlated, one waxes and wanes; in the second stage, the natural unemployment rate is difficult to eliminate; in the third stage, biased policy intervention and market mechanisms aggravate each other.

——In the short term, unemployment and prices are inversely proportional and have a substitution relationship, but in the long term this relationship will disappear, and employment levels have no relationship with inflation. If expansionary policies are implemented again, the result can only be stagflation.

Tao Ruohong took a quick look and found many notes similar to this.

She asked curiously: "Mr. Fang, you are usually so busy, how come you have time to read?"

"Isn't it time now? It's my free time on the plane. Watch more and learn more." Fang Zhuo smiled and said with emotion, "The world is changing too fast. If you don't learn more, you will easily encounter obstacles."

Tao Ruohong perked up and felt Mr. Fang's low mood, but this was what the interview needed.

Fang Zhuo stopped to look through the information in his hand and said thoughtfully: "Not only books, some policies also change very quickly, which requires attention and learning. Just like the U.S. financial market, the financial crisis that occurred last year was very serious, which changed the policy There were immediate changes, and the U.S. Securities and Exchange Commission (SEC) banned short-selling stocks of financial institutions such as Goldman Sachs and Merrill Lynch in July, which was a temporary ban.”

"The situation worsened, and the temporary ban was extended from July to August, and in September a short selling ban was issued, prohibiting short selling of 799 stocks it listed."

"Later, the list increased to 950 animals."

Tao Ruohong thought of the situation that Yike was facing now and said regretfully: "Yike is not on this list."

Fang Zhuo nodded slightly.

Tao Ruohong couldn't help but ask: "Why? Is this something we can strive for? It's like a safe haven."

Fang Zhuo pondered over and over again, this question...

He can now explain the situation caused by Yi Ke, but it seems a bit showy to talk face to face like this.

Fang Zhuo replied euphemistically: "Yike needs this. It can only grow if it goes through rough waves."

Tao Ruohong was in awe: "Even if Yike fails because of this, Mr. Fang, won't you regret it?"

Fang Zhuo said firmly: "I don't regret it."

Tao Ruohong stood in awe x2.

Look, this is a business leader. Even if Yike faces a crisis, even if Yike sinks, he still has such a spirit!

Tao Ruohong thought of the New York media who had been chasing him for interviews, and remembered their questions, and asked again: "Mr. Fang, what do you want to say now that Yi Ke is in such a situation?"

Fang Zhuo was a little embarrassed.

Seeing this, Tao Ruohong changed the question: "What do you want to say to those short-selling institutions?"

Fang Zhuo thought this was an easier answer and said, "I still hope to let them bring love and let the world be full of love."

Tao Ruohong couldn't comment on Mr. Fang's "love" words, which seemed a bit naive and also seemed to be longing after experiencing setbacks.

The Qingzi arrived at Shanghai Shanghai International Airport.

Tao Ruohong organized the words in his mind, and the draft was vaguely formed, almost like a report that did not need polishing.

Fang Zhuo estimated that he would not be calm after landing, so he took the time to read the last two pages of the material in his hand.

"Mr. Fang, is this also an economic theory?" Tao Ruohong still wanted to get as much information as possible.

"Oh, this is not it. This is information about a photolithography machine manufacturer in the Netherlands." Fang Zhuo turned the page and said frankly, "This manufacturer is called ASML. It is quite powerful. I heard that it is short of money now. , but we want to invest money, but they don’t want it either.”

Tao Ruohong asked: "Huh? You don't even need to invest money. That's such a shame."

Fang Zhuo put down the information with some sadness. It was really a pity. He couldn't really force himself to set it on fire.

The Qingzi taxied slowly and stopped steadily.

It was 4:30 in the afternoon in Shanghai. The weather was very good and the temperature was suitable.

Fang Zhuo and his group got off the plane and walked to the parking lot chatting and laughing.

However, as soon as I walked a while and started to see people in the airport, a swarm of people suddenly stung me like a swarm of bees!

"Mr. Fang, Mr. Fang, did you intentionally do the short squeeze on Yike?"

"Mr. Fang, did you design the short squeeze on Yike stock?"

"Mr. Fang, tell me a few words. What do you think of the current situation?"

Reporters asked questions all over the place.

As this group of people confirmed their target, more and more people came over, with cameras, flashlights, microphones, and mobile phones all in sight.

Tao Ruohong was shocked, what is going on? what happened? What are the specifications for such a dense crowd of reporters?

"Mr. Fang, Bridgewater Associates asked me to bring you a message." Suddenly, a reporter wearing a foreign media brand shouted loudly in the crowd without asking questions or taking photos.

Fang Zhuo looked over and motioned for everyone to be quiet.

Flights take time, but information travels quickly.

Everyone now understands the situation faced by short-selling institutions, and is shocked to find that Yi Ke has obtained the weapon to fight back.

The foreign media reporter said loudly: "Bridgewater Fund asked me to sincerely express to you that Bridgewater Fund is willing to make every effort to promote the patent settlement between Nokia and Yike. Now they are on the way to Shanghai."

Fang Zhuo put his hands in his pockets, looked at the reporter, and smiled slightly: "Is that all?"

"You can talk about anything." The reporter was given detailed instructions, "As long as you are willing to talk."

Fang Zhuo nodded: "Very good, let them bring the money."

This time, we only talked about money and nothing else.

Tomorrow is the weekend, so I got up early and worked overtime to code~