This is by no means an evenly matched battle between bulls and bears.
On October 19, the capital market on Wall Street in the United States began to thunder and plummet.
For the capital markets around the world, it has become a one-sided massacre of shorts versus longs.
Blood flowed for thousands of miles, and it was tragic.
Regardless of the truth of this matter, it was not as what many investment banks argued afterwards.
It is said that they were caught off guard, and it was entirely caused by program trading - when the computer program saw the stock price falling, it added the selling of stocks according to the mechanism that had been set in the program long ago, forming a vicious circle, causing the stock price to fall faster, and the falling stock price caused the program to
Sell stocks in larger quantities.
But at least what is certain is that this reason is valid to a certain extent, and it should be at least one of the more important reasons.
You must know that these days, people who are keen on the reform of electronic offices have not yet fully understood the shortcomings of the newly emerged electronic systems. They have a clear understanding that no exchanges or securities companies have emergency measures and risk prevention measures.
of original.
The world's top financial institutions, whether they are banks, securities firms, or fund companies, never thought that one day, there would be such a concentrated selling and short selling order.
That's why they were caught off guard.
Otherwise, there would never have been such an epic plunge that caught people completely off guard.
In fact, any so-called "professional" financial institution in it is as confused, panicked and at a loss as retail investors at this time. The only thing they can think of is to sell! Sell! Sell!
This caused all stocks to fall without stopping, like an out-of-control train that derailed, completely refreshing the understanding of investors around the world.
At the close of the day, the U.S. market suffered the largest decline, with stocks of almost all major companies in the U.S. market plunging by about 30%.
The Dow Jones Industrial Average dropped by 508.32 points, plummeting from 2246.72 points to 1738.470 points, a drop of 22.6%.
It was twice as high as October 28, 1929, which triggered the worldwide Great Depression, setting a record for one-day declines.
This day is equivalent to the annual GDP of France, and the face value of US$503 billion, one-eighth of the annual GDP of the United States, was wiped out in one day.
And this huge panic is spreading around the world like a plague.
As a result, the stock markets in London, Frankfurt, Paris, Tokyo, Sydney, Hong Kong City, Singapore and other places were all spared and began to plummet under the influence.
At the close of the day, in Europe, the London Financial Times Index fell by 183.70 points, a decrease of 10.1%;
The Credit Suisse Bank Index fell 11.3%. The Netherlands fell 7.8%; Belgium fell 10.5%.
Frankfurt, Stockholm, Milan, Amsterdam and other stock markets also fell by around 10% to varying degrees.
In Asia, the Hong Kong Hang Seng Index fell 421 points, or 11.3%, on the 19th, also setting a record for a one-day drop;
Singapore's "Straits Times" Index fell 169 points on the 19th, a decrease of 12.4%;
The Australian All Ordinary Share Price Index fell 80 points, or 3.7%; the ftse30 index fell 183.7 points, or 10.1%; the ftse100 index fell 249.6 points, falling to 2053.3 points, and investor losses reached 50 billion pounds.
Stock markets in Brazil and Mexico fell by more than 20%...
When it comes to the stock market that has fallen the least, Japan ranks first, with the Nikkei index falling only 2.35% that day, followed by the Federal Republic of Germany, which fell by 3.7%, and France, which fell in third place, fell by 6.1%.
The reason for this is not because these markets are so strong, nor because they have their own operating rules and are less affected by the U.S. market.
In fact, the key lies in the time difference issue, as well as the response level and judgment speed of local investment banks.
So another day passed, and it was long overdue that these markets really plummeted.
Whether it is Tokyo, the Federal Republic of Germany, or France, almost all continued to make up for the decline on October 20, each reaching a 10% range.
Therefore, for Ning Weimin, he accurately predicted the stock market crash and was fully prepared.
His camp naturally became the luckiest winner.
If nothing else, just say that after he received the exact news from Shen Cun on the 19th, he quickly used his credit line to short all the funds equivalent to US$1.2 billion before the market went completely crazy.
With just this move, they made huge profits, almost crazy.
Even on the 19th, due to the lagging computer system, the French stock market trading system quickly became clogged due to busyness and overload.
There were more and more short selling orders issued after Ning Weimin, and finally there were so many that it was almost impossible to sell them.
Even if they want to make a few less profits, they can't stop their profits in time.
The buy transaction order issued by Ning Weimin that day was not executed at all. It was not until the stock market opened the next day that it continued to plummet. Ning Weimin did not know that his account was still filled with short orders for securities lending, and profits were still flying in the air.
Keep on expanding.
In this way, it was on the afternoon of October 20 that Ning Weimin liquidated his securities lending quota, including the shares of LVMH and Dior that Pierre Cardin had previously sold through securities lending.
Even though they were actually a little impatient and went against the trend and bought at a price much higher than the closing price that day, they still reaped a profit of US$487.55 million.
This means that at this time, not only are they no longer at risk of being emptied out, but their own funds that completely belong to them amount to US$1.66 billion. Now, coupled with the credit line given to them by CLSA, they can manipulate
At this time, the capital has reached 2.4 billion US dollars.
Correspondingly, LVMH's total market value has fallen by 36.7% from its high point three days ago. A company worth US$6.5 billion is now worth US$4.1 billion.
This is still LVMH, which has relatively scarce chips, and the selling pressure is relatively small.
Dior clothing, which had much richer chips than him, was even worse, with its market value falling by a full 52%, and its total market value falling from US$1.4 billion to US$700 million.
If the 35% of banned shares held by Bernard Arnault are removed, the company's circulating market value is less than US$500 million.
So under this situation, Ning Weimin's attempt to get anything he needed was like searching for something in a bag.
On October 21, despite the stock market crash sweeping the world, local governments were shocked and quickly took measures to rescue the market.
Hong Kong City immediately announced the closure of the stock market for four days, the United States announced a suspension of computer trading and shortened trading hours, West Germany announced a cut in the securities repurchase rate, and the Group of Seven met to discuss how to provide liquidity to the financial system.
Stimulated by these positive news, the French stock market also began a retaliatory rebound on this day.
But Ning Weimin only needed an order to ask the stockbroker who specialized in serving him to sell some LVMH and Dior clothing stocks through securities lending.
It was enough to easily hold these two stocks at a low level, and the prices could not go up no matter what.
In fact, he has become a strong market maker with complete control over the market. He can make these two stocks go to the price he wants at will, and he can buy them at any price he wants.
On the 21st and 22nd, even Ning Weimin himself was surprised by the whole process of successfully collecting money by personally watching the market.
It turned out that even the stocks that Henri Lacamier had promised to lend him could not be used now, so the people on the stock market obediently handed over the chips in their hands.
A few days ago, they were still pretending to be dead and unwilling to sell. As a result, their faith became so vulnerable during the financial turmoil.
And apart from that, there are no funds that dare to seize food from the tiger's mouth, and no one dares to compete with them for chips.
Let their side eat as much as they want.
Anyway, there should be some funds to stir things up, right? Why is it so cold without any movement?
It took him a long time to figure out why these two stocks were like cities occupied by the army, allowing the owners to do whatever they wanted, without even a small group of guerrillas to resist.
In fact, to put it bluntly, it is because all investment banks and big speculators are now in a quagmire and have too much time to take care of themselves.
They can't even make up for their own losses and shortcomings, so how can they still have the energy to destroy other people's good deeds?
Now he finally understands that a catastrophe is a catastrophe, and his power is so awesome.
This stock market crash, arranged by God, is like a thunderstorm plowing the ground, knocking down everything.
Not only was this stock market crash impossible to prevent, it also directly deprived his opponents of any possibility of reinforcements.
Oh my god, even though he knew this would happen, he never expected that such a grand and magnificent scene would happen.
Even he could only look at everything that was happening with shocked and surprised eyes, and even felt a little pity for his opponent.
Because if nothing else happens, by the end of this week, not only will Henri Lacamier receive enough stock support to regain his company, but even the Dior clothing that originally belonged to Bernard Arnault will also have to change hands.
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And all this is because of him. Without his interference, Bernard Arnault would not have lost so miserably.
Now we can only say that there is God's will in the dark.
He is a real nemesis of the other party, and it would only be bad luck for the other party if he encounters him.
Of course, being in the same camp as Ning Weimin and being two insiders who participated in the whole process, Henri Lacamier and Pierre Carton were even more shocked when they were involved.
They never expected that Ning Weimin would actually win this huge gamble.
In Picardon's heart, his omnipotent and omnipotent subordinate is simply a legend.
Whether it's inventions, financial investments, or even movies and music, opening a restaurant can be fun.
Ten days, just ten days. If you only count the trading days, it is only seven days. In the seven trading days in France, this guy actually made more than the total net worth he had accumulated in twenty years.
Even Henry Lacamier, an old man who has been passed down for generations, was surpassed by him.
Because he took over two clothing companies, LVMH and Dior, in one fell swoop.
The most important thing is that he faced everything calmly and calmly.
What kind of psychological quality is this?
What kind of genius is this?
It's really hard to imagine what kind of achievements he would make at his age.
People really can’t stand aging anymore.
It seems that no matter how generous I was to him at the beginning, it was never too much. This was simply the most right thing I did in my life.
Henri Lacamier was also in a state of excitement.
Now he no longer worries about the wolf Bernard Arnault. The wolf with broken teeth is no longer a threat.
However, what Ning Weimin did made him fear from the bottom of his heart, and his ability to strategize made him have to be afraid.
At the age of twenty-five, he was in a desperate fight with the rogue tycoon who had almost gained the upper hand and controlled two listed companies, just like the Dragon Quest, and in the end he won so easily.
Such a person, with such ability, is obviously a more terrifying person than Bernard Arnault.
What should you do if the other party no longer keeps their promise and falls out with you after winning?
It is unrealistic to expect the other party to be a "white guard" who does not ask for anything in return.
The so-called white-clothed guards are just pure allies who want nothing more than to help each other.
After a fierce battle for chips, after deducting the losses incurred by the company, the shares will be returned through various channels, and will not take the opportunity to enter the ally's territory and participate in the ally's future operations.
Even he himself didn't believe that there was such a person in this world, how could he have such hope?
And the white knight comes with a price.
I helped fight off the intruders. As a "country" that received help, why should I show some respect to a princess?
Countries put national interests first, and companies put company interests first. Nothing is free. In this case, even if the other party's original intention is to "justice" for themselves for the sake of Picardin,
But there must still be due rewards.
He is willing to give his white knight a portion of the equity and a say in the company being helped.
Because compared to intruders, white knights are less harmful and more trustworthy. At least they will not tear a good company into pieces, swallow the essence, and sell the rest.
There are so many companies listed through backdoor mergers on the stock market. Most of them are shells. They are basically the relics of victims of hostile takeovers.
But he just doesn’t know whether the other party has a big appetite. What if the other party wants to interfere with his business operations?
If the other party also wants to seek a seat on the board of directors, it will undoubtedly be a potential threat to him, and he cannot bear the sword of the other party to turn around...
In short, he now regrets that he was too dismissive of Ning Weimin at home, and even when they later became allies, he never showed full respect to him.
So even after seeing the victory, Henri Lacamier was not in the mood to enjoy the joy. Instead, he frowned and couldn't help but eagerly asked Ning Weimin about the reward he wanted.
However, the resignation shown by Ning Weimin easily made him feel at ease.
"Mr. Lacamier, I am here to help for Mr. Pierre Cardon. Not only do I respect your creativity and artistic talent, I am also very happy that you can get back what belongs to you. As for me, I only need financial returns.
That's enough. Even if I continue to hold shares, I will not interfere with the company's operations. I just hope that you can run the company well and let me keep a certain amount of equity and share the profits in the future. How about that? Is that okay?"
"No problem. I will always remember your kindness, thank you. From now on, you are my friend. You can come to me for anything about the Paris fashion world..." Henri Lacamie finally
He stretched out his hand in relief, his expression showing the smile of a rejuvenated king.