The British consortium was very fast this time. The day after Nubigen and others finished their discussions, they contacted Shen Bi and Powell Wilson to discuss going long in the Xiangjiang stock market.
Shen Bi and Powell Wilson have long known that everyone trading in Xiangjiang is shorting the Xiangjiang stock market, and they are basically shorting these listed companies. Moreover, the top executives of both their banks are very optimistic about the recent development of Xiangjiang. Coupled with the long positions of these major groups, the Hong Kong stock market will only be more favorable.
After Nubigian described their proposal, Shen Bi and Powell Wilson both agreed with Nubigian's opinion and said that the investment departments of HSBC and Standard Chartered would also follow up. This time, the Lee Group would make a big mistake.
This time, these companies have quite strong funds. In addition to Jardine Matheson and Swire, both of which are 2 billion Hong Kong dollars, Wheelock has raised 1.5 billion Hong Kong dollars this time. HSBC and Standard Chartered Investment Department have both prepared 1 billion Hong Kong dollars to enter. , most of them are customers' funds, and they don't have too much money in their own banks.
On June 8th (Monday), it was also the first day of the week that the market opened, and the futures trading market was very busy.
Since the Li Group made a large number of short orders here last week, it still had a slight impact on the stock market in Xiangjiang. The rapid rise of the entire stock market was suppressed. Although the overall stock market is still rising, it is still rising compared to the past few weeks. That said, it has been quite slow.
As the third largest financial center today, Xiangjiang has too many financial institutions settled here, especially large financial investment institutions from many Asian countries that have set up branches here.
Li Guangyu, Yuan Tianfan and others all underestimated the financial market in Xiangjiang. When Li Guangyu was short on the Xiangjiang stock market, countless financial investment companies and bank investment departments were quite optimistic about the Xiangjiang stock market in the short term.
Even though the Lee Group placed huge short orders on listed companies of several major foreign banks, they were still picked up by many investment companies. Last week, the Lee Group completed nearly HK$5 billion in orders.
On the morning of the 8th, as soon as the trading market opened, Li Guangyu came to the Tianyu Investment and Securities Department, waiting for today's new changes in the situation.
Sun Jianping reported to Li Guangyu: Li Sheng, due to our large amount of short selling last week, it is not easy to deal with the listed companies of several major foreign banks.
Li Guangyu asked: Oh, what is the reason for this?
Sun Jianping replied: Li Sheng, when we short the stocks of these listed companies, we borrow them from major securities firms. Nowadays, there are fewer and fewer stocks that can be borrowed, and the three major groups of Jardine, Wheelock and Swire The stock market value of listed companies fell slightly last week due to our short selling. I wonder if any investment companies will come to take orders this week.
Today's Hong Kong stock market is not as convenient as it was in later generations. In this era, Hong Kong could not short-sell these companies on futures. Li Guangyu and the others could only choose to short-sell directly on the stock market, and the method was to borrow shares from securities firms and return them. Set the October low to return the shares, and then sell the borrowed shares at the current price.
Securities firms and exchanges act as middlemen. Before the end of the trading time, these shares and funds are locked. If any party has insufficient margin, it needs to make up the funds, otherwise the exchange will forcefully close the position.
Last week, the huge amount of money from the Li Group came in and almost wiped out all the shares held by securities dealers. It is not likely to be easy to handle from now on.
While Li Guangyu was still thinking about how to arrange the next step, an employee came over to report: Li Sheng, Yuan Sheng, Guo Sheng, there are suddenly many long orders from several major British-funded consortium listed companies in the market. Should we take them all?
Li Guangyu asked: Did the personnel at the exchange report which institutions issued these orders?
The employee replied: Li Sheng, these long orders were mainly issued by the investment departments of HSBC and Standard Chartered. The amount is quite astonishing. Now the stock market of these groups has begun to rise because of this.
Li Guangyu was very happy after hearing this. He knew that this was a British-funded consortium. Otherwise, how could there be so many stocks? Several major groups must have taken out the stocks and wanted to have a big fight with him in the stock market.
Li Guangyu asked: What is the term of their contract? Is there any stipulation?
Li Guangyu was worried that if the contract was only for one month, he would lose money if he took the order. In such a short period of time, he would only be giving money to the British consortium.
Li Sheng, I don’t know if they came here intentionally for us. Their contract delivery time is also at the end of October. The staff member replied.
After Li Guangyu thought about it for a while, he said to him: You immediately notify our exchange staff and let me take all their orders. We will take as many as we have until the funds we specified are used up.
Li Guangyu didn't expect that these British-funded consortiums were so courageous that they dared to lend out their shares. He just didn't know how much money these British-funded consortiums had invested themselves.
If it's just Standard Chartered and HSBC, it doesn't matter. They just pay out the money when they lose. If these companies have a huge amount of investment, when the stock market crashes, it will depend on whether they cover their positions in tears or whether they are prepared to give up the company's controlling stake.
What Tianyu Investment needs to do now is to borrow these shares from HSBC and Standard Chartered, transfer them to the long-selling securities departments of HSBC and Standard Chartered at the current price, and then buy them and return them to Standard Chartered and HSBC by the end of October.
The stock is still the same stock, but after going through these procedures, by the end of October, we will see the situation of the stock market. Li Guangyu is not worried anyway. The Hang Seng Index in the stock market is now more than 1,700 points. By the end of October,
There are only more than 800 points left. No listed company on the market can escape this disaster, not even Li Guangyu's own group.
In particular, many of the listed companies owned by British-funded consortiums are constituent stocks of the Hang Seng Index. The Hang Seng Index fell so badly because of these listed companies.
What Li Guangyu hopes most is that Jardine Matheson Group and Swire Group can invest more funds to enter the market this time. They must only lend the shares to HSBC and Standard Chartered Securities Investment Department. If they want to buy Li Guangyu's current list, they will have to pay separately.
Yes, unless they no longer want shares in the company.
Li Guangyu hopes to take advantage of this big profit to snatch back the electric lighting group from last time once these groups are short of funds. The Swire Group has the only airline in Hong Kong currently. Li Guangyu hopes
If Cathay Pacific can be swallowed up, it would be better for such a company to be controlled by the Chinese.
In the HSBC Investment Department, several people from Nubigen are also waiting for the market's reaction. This time they will only do transactions with people from the Li Group. This time they need to buy back the shares immediately after lending them out. Rather than letting the stock flow out of the country.
Newbigian said: Mr. Shen Bi, how many orders do you think the Li Group will take from us this time?
Shen Bi said: It depends on how much leverage the Li Group uses. Last week, their transactions were said to have used five times. In this case, I estimate that the Li Group can do at least 50 billion orders. .
Several people present also lamented the abundance of cash of the Li Group. These groups had to scrape together the cash, and the total amount was not as much as that of the Li Group.
Shen Bi and others were chatting about this action while waiting for the market's reaction. They had tried their best to make the Li Group suffer a huge loss this time.
One of the important ones is that HSBC and Standard Chartered Bank must ensure that the shares of their own groups will not be leaked out. The reason why they are brought out is just to conclude a deal with the Lee Group. Without this thing, the transaction cannot be established.
Only with it can the Lee Group borrow money and sell it to them. HSBC, Standard Chartered Bank and the exchange are the custodians. In the end, HSBC and Standard Chartered will have to return the shares to them.
As for the orders they are taking now, after the contract ends, they will be purchased by the Lee Group and then returned to HSBC and Standard Chartered. The two banks will then return the shares to their respective groups.
This is why futures trading is not possible, and there are no subsequent bull or bear contracts. The operation is quite troublesome. Fortunately, HSBC and Standard Chartered Bank are strong enough. Neither the British-funded consortium nor the Lee Consortium are worried about this. HSBC Both Standard Chartered Bank and Standard Chartered Bank have the ability to guarantee this, and their income can be guaranteed.
: There were errors in the previous article about futures trading. During that period, stocks of listed companies could not be traded. I have made corrections. Please forgive me.