January 3, 1994, the second day of the Taikoo Sniper War
Hong Kong Stock Exchange
The British Swire Group, which has just woken up from a dream, announced a high-profile announcement of mobilizing 3.5 billion Hong Kong dollars for a counter-takeover. Competition in the capital market has become fierce. Since the two stocks of Cathay Pacific Airways and HAECO have been settled, the main battlefield for the competition between the two parties is Swire Holdings.
After the market opens at 9:30
On the basis of yesterday's 63% surge, Swire shares once again broke through all the way. The stock price started from 66 Hong Kong dollars like a wild horse, supported by the surging buying orders, and soon exceeded 100 Hong Kong dollars and 120 Hong Kong dollars.
HK$150…
As of the close of trading at noon, Swire shares reached 168.96 Hong Kong dollars per share, soaring 256%. Market trading was booming, with a half-day turnover rate of 55% and a turnover of 15.2 billion Hong Kong dollars.
After the market opens in the afternoon
Swire Holdings still maintains a strong and volatile upward trend, stubbornly hitting new highs despite large sales orders, reaching a high of HK$188 per share. Compared with the average price before the acquisition of HK$41.58, it soared 452.14%, and the market fell into a carnival.
among.
The long and short sides were locked in a fierce game, with large sell orders constantly being placed, often worth millions of shares, but they soon disappeared amid the frenzied buying.
14:35 pm
The latest news came from Cathay Pacific's board of directors. Mr. Yu Chengde, the new vice president of Pacific Holdings, was elected as chairman of Cathay Pacific by the board of directors. The original airline's Swire Group was eliminated and most of the professional managers were retained.
Mr. Richard Yu, Chairman of Cathay Pacific Airways, said;
We will actively introduce foreign capital and make every effort to build a globally competitive Cathay Pacific, increase the number of fleets, add routes, enhance services, and strengthen team building. It is expected that the company will not pay dividends within five years and will use all profits
All are used to consolidate the foundation of the enterprise.
The news quickly spread to the fiery Stock Exchange. Market observers were unanimously bearish, and many long-term investors were even more disappointed.
What the hell?
Actively introduce foreign capital?
That is to say, there is a plan to introduce foreign investors to inject capital and dilute the original shares, which is definitely a big negative.
The next news is even worse. If you invest in Cathay Pacific, you will not receive dividends for at least five years. You can subconsciously understand that the time may be longer. This is no less than an earthquake for long-term investors.
Invest in the stock market, short-term profit margins, long-term investment to get dividends, only fools invest when they have nothing to lose.
Is Cathay Pacific shares a golden doll?
Sure enough, after the detailed news was confirmed, because Cathay Pacific suspended trading for one day, the stock prices of related companies plummeted. This was investors voting with their feet.
As the merger and acquisition news settled, the new chairman was unanimously pessimistic by the market, and HAECO's stock price was like taking laxatives.
Everyone in the market is looking forward to the board meeting of Airport Engineering Engineering that will be held the next day, and they are even more afraid that Mr. Yu Chengde will take over this listed company. That would be terrible.
In just half an hour, HAECO lost more than half of its market value, falling back to its previous share price. The downward trend still could not be stopped, resulting in a tragic situation of short-selling and short-selling.
Half fire, half sea water.
Affected by this news, Swire Holdings was continuously suppressed by large short orders at a high of HK$181 per share, and the stock price continued to fall amid the heavy selling.
A large number of market investors and the main buyer Swire Group had no time to withdraw their buying orders, and a huge transaction of HK$4.4 billion was completed in just three minutes, setting a record for the highest trading volume of Hong Kong stocks per unit of time.
Pacific Holdings began to smash the market...
Seeing this scene, speculators feel like a bucket of cold water has been poured down their heads, and their hearts feel chilled.
If you are smart, you will immediately go long and short, and borrow the stock backhand to place a sell order.
The continuous flow of buy orders for Swire Holdings was quickly overwhelmed by the surging sell orders. The stock price plummeted to 160 Hong Kong dollars, 140 Hong Kong dollars, and 120 Hong Kong dollars. The long and short parties were locked in a fierce battle at 100 Hong Kong dollars, and finally closed at 97.22 Hong Kong dollars per share.
The daily turnover rate is as high as 177%, and the transaction volume reaches more than HK$50 billion.
Stocks on the Hong Kong Stock Exchange can be bought and sold multiple times a day. Important market participants continue to buy and sell according to strategic plans, pushing the stock price forward in the established direction, and the trading volume rises sharply.
In just one day, the HK$3.5 billion raised by Swire Group and the HK$1.1 billion raised again in the afternoon were all consumed.
After a full day of intense gaming, the equity held by Swire Group soared from 34% to 39.42%. The good news is that it has once again surpassed its opponents to become the largest shareholder, consuming a total of 4.45 billion Hong Kong dollars. The bad news is that the capital ammunition has been exhausted.
The shareholding held by Pacific Holdings Group dropped from 37.7% to 33.1%. The bad news is that it has lost its position as the largest shareholder. The good news is that it has not reached the 5% share change requirement of the Stock Exchange, which requires a placard to be announced.
Everyone is blindfolded and can only rely on guesswork to take advantage of the situation.
January 4, 1994, the third day of the Taikoo Sniper War
After the opening of the Hong Kong Stock Exchange, the fierce game became intense. Dozens of shell companies controlled by Pacific Holdings successively issued huge sales orders to suppress the stock price.
Swire Group continued to invest heavily in maintaining its stock price through stock pledges and borrowed emergency funds to gain leverage.
The long and short sides are still competing fiercely around the 100 Hong Kong dollar mark. Swire Group's shareholding is rising steadily, and the situation is very unfavorable for Pacific Holdings.
9:40 am.
The Port Machinery Engineering Board of Directors got up early, ended the meeting at 9.40 am, and issued a board announcement.
and announced the board resolution.
The latest news shows that Mr. Yu Chengde, the new vice president of Pacific Holdings, was elected as the chairman of Port Machinery Engineering by the board of directors. The former Swire Group of Airlines was eliminated and most of the professional managers were retained.
Mr. Richard Yu, Chairman of Cathay Pacific Airways, said;
We will actively introduce foreign capital, devote all our efforts to building a globally competitive port machinery project, increase corporate equipment investment, expand mainland branches, enhance services, and strengthen team building. It is expected that the company will not pay dividends within five years.
Use all profits to consolidate the foundation of the company.
The news quickly spread to the fiery Stock Exchange, and the worst fears may have come true. Market observers were completely shocked, and many long-term investors were even more disappointed.
Here we go again...what the hell?
This news can be said to be heart-breaking. Yesterday, the tragic incident of the HAECO project being carried out was still fresh in my mind. Today, this trick happened again, and market investors were as frightened as a bird.
Now, whenever traders on the Stock Exchange hear these five words from Mr. Yu Chengde, their scalps will go numb.
Mr. Yu Chengde, Vice President of Pacific Holdings, has successively taken control of two listed companies, Cathay Pacific Airways and HAECO. The methods adopted are similar and the business philosophy is also the same.
The announcements of the two listed companies are almost word for word if the names are changed.
Let’s take a look back at the Swire shares that are currently trading hotly.
Thinking of Pacific Holdings' current fight for Swire shares, once the dust settles, if Mr. Yu Chengde still takes over, the serious consequences can be imagined with your buttocks. The stock price will definitely plummet, and it will feel like going from heaven to hell in minutes.
Investors were shocked and placed sell orders almost without hesitation. Under the squeeze of the massive sell orders... the price of Swire shares, which was still struggling, immediately collapsed.
In just 15 minutes, the price plummeted from 96 Hong Kong dollars per share to 77 Hong Kong dollars per share. Just after it stabilized slightly, it was overwhelmed by the surging selling orders.
Near the close of trading, Swire shares plummeted to HK$54 per share. It was like riding a roller coaster in the past two days, and it was basically brought back to its original shape.
Fifteen minutes before the market closed, it finally found strong support in the bottom area.
Large-scale buying orders entered the market to sweep goods, and the turnover rate in 15 minutes was as high as 17.22%, which pushed the stock price to stabilize slightly. The turnover rate throughout the day was as high as 131%, with a transaction volume of HK$26.7 billion.
Why was the turnover rate on the previous day 177%, with a transaction volume of over HK$50 billion, and the turnover rate on the next day as high as 131%, with a transaction volume of only HK$18.6 billion?
Because this is a dynamic data, the current market value of Swire Holdings is less than one-third of the previous day's highest position, which shows the brutality of the game in the stock market.
Half sea water, half fire.
Hong Kong Swire Group Headquarters
Starting at 9:40 a.m., the atmosphere here was as cold as falling into an ice cave. The 2.6 billion Hong Kong dollars borrowed overnight were put in without even a splash.
A closer look shows that the Swire Group has invested a huge amount of HK$7.2 billion, and as of 10 a.m., the shareholding cost was as high as HK$131 per share.
This is not over yet. In order to save the Swire Group’s core pillar Swire shares, Chairman John Sy, who is far away in London, like a jealous gambler, took fatal measures;
Get financing from securities firms to go long.
This is a cup of highly poisonous antidote and a straw to grab before drowning.
The market is ruthless, and it still relies on huge amounts of capital to speak. When the stock price drops all the way, the direct consequence is that the more you buy, the greater the loss will be, until you lose all your money in the end.
The data came out after the market closed. According to the closing price of 54 Hong Kong dollars per share, the British Swire Group lost 6.6 billion Hong Kong dollars in one day. Many of its big customers' trading seats were liquidated and lost all their money. The shareholding ratio increased from 39.42% to 43.62%.
If it weren't for the continuous loss of large customer seats, Swire Group might have won the day today.
at the same time,
The shareholding ratio of Pacific Holdings increased significantly from 33.1% to 41.5%, of which 16.1% was traded in the last 15 minutes. The market was hit too hard in the past, resulting in almost falling short.
According to the regulations of the Stock Exchange, any increase or decrease exceeding 5% must be announced by shareholders.
Pacific Holdings issued a shareholding increase announcement at the last minute, announcing to the market the shocking news of an increase to 41.5%, and proposed convening the Swire Pacific Board of Directors on January 6, which means that it is not far away from fully controlling the controlling stake.
This announcement of increase in holdings completely extinguished the luck mentality of market participants.
January 5, 1994, the fourth day of the Taikoo Sniper War
Opening in the morning
The share price of Swire Holdings fell sharply, and soon fell to HK$47 per share. Whenever there was an influx of buying orders, there was a huge amount of selling orders. The final battle was fierce, and the stock price dropped to HK$35.5 per share near the morning's closing price.
It was miserable.
The main positions of the British Swire Group were exposed one after another, and they were no longer able to mobilize funds to make up for it. Pacific Holdings was extremely aggressive in smashing the market, smashing the stock price below the lifeline of 30 Hong Kong dollars a share several times, and then it was slowly supported by buying orders.
After the market opens in the afternoon
The price of Swire shares fluctuated violently at low levels, reaching as low as HK$22.6 per share and closing at HK$23.2 per share.
One minute before the market closed, Pacific Holdings issued another announcement to increase its holdings at the last minute, announcing to the market that it had increased its absolute controlling stake to 51.77%, and suspended trading for one day to hold a board meeting the next day.
This campaign ended victoriously. During the four consecutive days of fierce capital battle, after statistics, the speculation book profit was HK$5.32 billion, which shocked most of the scattered chips in the market. The average cost of holding shares reached HK$89.9 per share, and the total market value loss was HK$6.52 billion.
Get a complete victory.
At this point, Swire Pacific's largest shareholder has fallen to Pacific Holdings, with only 6.73% of the scattered chips in the market, which is no longer enough to affect the two giants' struggle for hegemony.
January 6, 1994, the fifth day of the Taikoo Sniper War
The Swire Pacific board of directors convened as scheduled, and the scene that market participants were most worried about finally happened. Mr. Yu Chengde, who can be said to be the biggest short seller on the Hong Kong Stock Exchange, took up the post of chairman of Swire Holdings amidst warm applause, which made people feel chilled from head to toe.
Sure enough, the subsequent board announcement was no different from the first two, and the market's reaction to it was...
Fuck! Down.
After the market opened on January 6, the price of Swire shares instantly broke through HK$20 per share, and continued to fall throughout the day. It was only at the end of the trading day that there was weak buying support, and the closing price was fixed at HK$17.53 per share.
In the following two weeks, the price of Swire shares fell into a slump, hovering in the range of 15 to 17 Hong Kong dollars per share, showing a very sluggish performance.
The Taigu sniper war came to an end, and soon after the boss Wang Yaocheng became famous, Mr. Yu Chengde, who was well-known in the financial circles of East Asia and Southeast Asia, was jointly elected by the Hong Kong financial circles as the "Supreme God of Failure" and also became famous in one battle.
For Wang Yaocheng, the huge loss in market value doesn't matter to him, since he is so rich anyway.
The Swire Group is in trouble. The stock price is always hovering at a low level. For the Swire Group, which is long in financing, it is like dancing on the edge of a knife. If it is not careful, its fragrance will be wiped out.
They can only bite the bullet and sell stocks at low prices to cover their positions to prevent all positions from exploding. This is simply vomiting blood to survive!
Pacific Holdings smiled and took over chips at a low level. Nowadays, Swire stocks are as notorious as shit, and together with the stocks of three listed companies in the Swire family, they are languishing. If you are not a bold speculator, you really don't dare to touch them.
On average, the Swire Group's long financing cost from securities firms is as high as 122 Hong Kong dollars per share, but it has to make up the investment in the range of 15 to 17 Hong Kong dollars per share, resulting in a loss of more than 100 Hong Kong dollars per share.
From time to time, the stock price would fall below 14 Hong Kong dollars per share. Each time, the Swire Group was frightened and had to sell shares to cover its position.
The shareholding ratio of Pacific Holdings slowly increased from 51.77% to 53.06%, consolidating the position of Swire Pacific's controlling shareholder.
Days like this are very painful. If the price fails to recover, for the Swire Group, which maintains a heavy long position, it will always stand on the edge of the cliff and be shaken by the strong wind.
Depending on whether the opponent is happy or not, Swire Group can be put to death at any time.
The most correct thing to do is to accept the loss and be out.