Chapter 1019 Cash out and reduce holdings by 300 billion
Chapter 1019 Cash out and reduce holdings by 300 billion
About the subprime mortgage crisis in the United States.
It began to show signs last year, and in October 2007, it had seriously affected major markets such as the United States, the European Union, and Japan.
The storm didn't just come. Su Yehao has had people study related trends since February today.
It wasn’t until early September that I decided to take action and began to try to short many banks and U.S. stock indexes, as well as Lehman Brothers, Fannie Mae, Freddie Mac, Credit Suisse, Morgan Stanley, Citigroup and other giants.
This is not a very good time.
Not long after the position was opened, news came to the market that the United States was coordinating major financial institutions to jointly establish a super fund worth US$100 billion to purchase distressed mortgage-backed securities.
In addition, the Fed also chose to cut the federal funds rate by fifty basis points.
Under the influence of these two good news, the market had a bit of a comeback, causing Su Yehao to lose several steel coins and a loss of US$260 million in just five trading days.
When it comes to the root cause of this crisis, it is nothing more than the group of Americans who bought houses at high prices in the past few years. Under the multiple impacts of falling housing prices, rising interest rates, and reduced incomes, they have chosen to go bankrupt and cut off their mortgage payments, resulting in subprime loans being packaged and resold.
Turned into garbage, affecting the stability of the financial market.
Therefore, he remained silent and focused on reducing his holdings.
After listening to Su Yehao's words, he looked strange and told:
"I don't know if you feel uncomfortable or not. Anyway, I feel very uncomfortable. Every time I see you, my mentality is as if I have been beaten by a crowd. Next time, I will pay for some psychological treatment and then I can chat with you."
By the beginning of October, the Hang Seng Index had soared by more than 8,000 points, and the mainland stock market was also rising with momentum. The Shanghai Composite Index soared from about 4,000 points in June to more than 5,000 points in early October.
Su Yehao has been in the investment industry for a long time and is very familiar with some classic aphorisms in the market. One of them is "Don't catch a flying knife empty-handed."
But Su Yehao's large-scale reduction of holdings and cash out was actually a helping hand.
In this case, even if he says a few more words, he may stage a great escape, let alone a "heavyweight player" like Su Yehao personally appear.
Cheng Yong-man has been managing the Hong Kong Stock Exchange for several years, and he certainly knows that something is not right with the situation, and it is still quite wrong.
Zheng Yongwen said angrily:
"I asked you to help me at the beginning of September. I can't beat a fart with eight sticks. The earth is buried to the top of Tianling, so I want to jump out and cut leeks. Is it because the short warehouse has been built?"
Su Yehao may be stupid and try to pour cold water on people to calm down.
Relying on his youth, he successfully pushed the former head of the board of directors three feet underground, and took a step further from the position of CEO to the position of chairman of the board of directors of the Hong Kong Stock Exchange.
Even if he didn't show up and speak at all.
"The money in the market is not my own money. I'm just an ordinary high-level wage earner. I make money for you bosses all day long. I'm almost bored to death. As the saying goes, the higher you climb, the harder you fall.
Damn, the trends in the mainland market and our Hong Kong Stock Exchange have gone very wrong in recent days."
Su Yehao, like many major shareholders, can just be busy cashing out. It is better to do less than to do more. There is no need to ask for trouble.
"...You know what you are asking, right? With the current situation of the market, how can it withstand your torture? It is not enough to successfully snipe the Nasdaq at the beginning. If you become ruthless, you will even attack your own people?"
It can be said that in the past two or three months, both the mainland and Hong Kong stock markets have been under the pressure of Su Yehao to reduce his holdings.
Having said that.
Now it is barely over five thousand six, and its power has been much reduced.
Su Yehao's Buddhist tone:
"You have seen big scenes. You have an average daily turnover of hundreds of billions of Hong Kong dollars. How can you be so fragile? I really can't complain to anyone now. It feels like I'm in Versailles. I can't live my life.
.”
If the real estate market does not pick up, the income problem is not solved, and mortgage interest rates are not lowered, if you only rely on the financial market to make a fuss, it is like someone who broke his leg. The doctor does not fix the bone, but instead thinks about how to stitch it up and let the outside world
The wound becomes beautiful.
From the end of August to the beginning of October, Su Yehao has been busy reducing his holdings and cashing out. In addition to cashing out himself, 5S Asset Management Company has also been idle. A total of more than 300 billion Hong Kong dollars have been withdrawn from the Asia-Pacific market, and they have only been used by him.
The stock prices of several companies with heavy holdings are at a relatively reasonable position.
"...Don't worry about these small details. The bubble in early September is also very impressive. It is thankless to burst the bubble. I am keeping a low profile now. Including 5S Asset Management, 5S International Financial Investment Bank, KOKO Venture Capital and other institutions,
Didn’t everyone stand up and speak out to remind them, but in the end they were treated as farts by the investors, so what can I, a semi-retired fish, do?”
However, this is a helpless move. The global financial market is increasingly interconnected, and the entire financial system is affected by the entire financial system. The subprime loan mess is indeed not that easy to solve.
Zheng Yongwen finally came through.
Put it in the past.
You know, Su Yehao never lost his investment and never missed the business he was looking for.
The principle is similar to that of the Three Gorges Dam. The amount of power generated is secondary. The most important function is to regulate water flow. Release water in spring and store water in summer to meet the needs of agricultural irrigation and shipping while trying to avoid serious floods.
Not only are Asia-Pacific stocks continuing to surge, but safe-haven funds are also flowing into the Nasdaq market.
The reality is that even if they know that there is a bubble in the stock market, they still can't stop investors from flying into the flames and playing the game of pick-up-the-drum and pass-the-flowers enthusiasm.
All I can say about this is that the hot-headed stock investors are really fierce. The stock prices of some monster stocks have increased tenfold, and some people still continue to advocate them.
in this case.
When Su Yehao met Zheng Yongwen, he told the truth again:
"The current situation is like I say no, no, no, and others are trying their best to stuff money into my arms. They can't persuade me anymore. You can tell me whether it's uncomfortable or not."
In other words, they knew that there were risks, but under the stimulation of huge profits, they always thought that they would be the lucky ones. They even felt that Su Yehao, who was kind and helpful, was blocking their way to make money.
Su Yehao, who clearly didn't say anything but seemed to have said something, saw his net worth further surge in this overheated market environment.
If he hadn't been crazy and cashed out more than 300 billion Hong Kong dollars in just over two months, the Shanghai Composite Index would have already exceeded 6,000 points.
Smart people can easily smell the clues of an impending storm from his operations. Such large-scale movements are as obvious as a blue whale in a pond and cannot be hidden at all.
A large number of international hot money came to invest without any good intentions. Now these troublemakers have made some gains, and there has been a net outflow of foreign capital for several consecutive trading days.
"I feel it too. Brother Yong, you asked me to post updates before to remind investors to avoid risks. Do you still need it now?"
Zheng Yongwen rolled his eyes in anger and said:
So that on October 14th.
In his opinion, the current attempts by many financial institutions in the United States to rescue the market are a bit like trying to catch a flying knife with bare hands.
Due to the need for hedging, many international hot funds have flocked to the Asia-Pacific market this year.
Seeing him run away and leave the market as if fleeing for his life, other investors will inevitably mutter in their hearts that the impact on the stock market is no less than the central bank raising interest rates.
Speeches on the Internet are also selectively posted under the instruction of Su Yehao.
Reducing the exposure of good news and focusing on bad news will naturally create a sense of crisis in people. These have quietly done a huge favor.
Reduce the power of bubbles by one or two orders of magnitude...