"Chairman, the day before I returned to China, people from Goldman Sachs Group came to talk to me about packaging their US$13.5 billion in assets into securities." Qi Wei, who was sitting on a single sofa, looked at
Lu Ming added:
"According to John Breen, they plan to conduct a reverse takeover of this capital security. They have identified a financial shell company listed on the New York Stock Exchange and plan to use it to go public through a reverse merger, and they plan to sell the shell company's shares
The trading code was changed to TCG, which is the abbreviation of Tiansheng Capital."
Backdoor operations also exist in the U.S. stock market, which is considered a basic operation in the global capital market. U.S. stock listings and IPOs are very fast, and backdoor operations are even faster.
After such a showy operation by Goldman Sachs, it may take two to three months to complete the backdoor operation.
In this way, the risk can be transferred to the capital market. US stock investors, even an ordinary retail investor, can indirectly become an LP of Tiansheng Capital by buying TCG shares and enjoy the investment income of Tiansheng Capital.
"These maggots also like to play word games. It seems that Goldman Sachs wants this so-called TCG to become the shadow listed company of Tiansheng Capital in the US stock market." Lu Ming said with a half-smile.
Tiansheng Capital has already backdoored Big A, and of course it will not be listed in the United States, so the trading code TCG does not matter.
To put it more down-to-earth, Goldman Sachs wants to list a counterfeit of Tiansheng Capital, but it cannot be said to be a complete fake, because there are real assets under TCG's name that Lu Ming is managing.
"If they do this, is John Breen asking you to share the investment profits and losses of US$13.5 billion with them?" Lu Ming asked rhetorically.
Since the packaged capital securities are brought to TCG for backdoor listing, financial statement information must be released according to the normal procedures of listed companies, and the core assets are managed by Tiansheng Capital. If financial information is not provided, TCG’s actual financial statements will be
There's no way to make it.
Qi Wei nodded and said, "That's right."
Lu Ming said in a deep voice: "This is not a big problem. Specific investment information cannot be shared, but the asset gains and losses of this investment can be shared with them a final figure every quarter. Haha, TCG, right? We have to do it secretly too
Make a market and do some market value management of the company."
After hearing this, Qi Wei couldn't help but be stunned for a moment, "Chairman, do you mean that part of the money we gave to the people of Magnesium will be used to allocate TCG's stock assets?"
In the past, Goldman Sachs was shorting itself, but now Tiansheng is buying itself?
this……
Lu Ming smiled and said: "I made the profits, and TCG's stock will definitely rise sharply. In that case, why can't I buy TCG's stock?"
Qi Wei was speechless for a moment and had no words to refute.
This is a pure financial game of cutting leeks. It is equivalent to a sum of money going around in a closed loop in a financial system. In essence, it does not create value for society, but it can attract some leeks to buy TCG stocks and then cut them.
, and then TCG's stock price can actually rise sharply, which is outrageous and extremely magical.
The general logic of this saucy operation is: the capital institution of the Chinese people pays the asset management institution of the Chinese people, and the Chinese people then package it into securities and throw it into the stock market for trading, and then the Chinese asset management institutions take the money from the Chinese people.
The money given to me went to the capital market of Magnesium People to buy the securities offered by Magnesia People... forming a closed loop!
The philosopher said: No matter how strong a Hercules is, he cannot lift himself!
But the financier only smiled slightly after hearing this.
This TCG led by Goldman Sachs Group, Lu Ming will definitely participate in a wave of speculation.
In the office, Lu Ming chatted with Qi Wei for a while, then got up and went to his desk, took out a document from a drawer and handed it to Qi Wei: "Now that you have money, you can lay out part of it first, shorting the S&P 500."
Now you can place short orders. In addition, we will short the six companies listed in the data."
Lu Ming returned to his seat and sat down, and added: "The first step for this fund is to go short first!"
Qi Wei took the file and opened it to look at the list of the six short-selling companies selected by Lu Ming. The reasons for the short-selling, the funds invested in the short-selling, and the target price were all clearly arranged.
General Electric GE: Current market value is US$220.7 billion, expected to drop -78%;
Coca-Cola Fansa Bottling: Current market value is US$189 billion, expected to fall by -61%;
Tesla: Current market value is US$60.8 billion, expected to drop -59%;
Regeneron Pharmaceuticals: Current market value is US$53.8 billion, expected to drop -44%;
Mexican BBQ: The current market value is US$10 billion and the expected decline is -30%;
Dekang Medical: The current market value is US$5.8 billion, with an expected decline of -37%.
Qi Wei looked at the six companies to be shorted, closed the materials and said: "I understand, I will make arrangements right away!"
Now that Tiansheng Capital has interests with several top securities firms and investment banking institutions such as Goldman Sachs Group on Wall Street, it will be much smoother to execute short selling operations. At least more securities firms will be willing to lend stocks to Tiansheng Capital for short selling.
Qi Wei returned to China and stayed for three days, and then set off for Magnesium Country again. In addition to the initial research work, he also dealt with six short-selling companies after arriving in Magnesium Country this time.
I also found several major securities companies and investment banks such as Goldman Sachs Group to short sell securities. The first step of short selling is to borrow stocks from securities companies, then sell them to the market, and pay the interest negotiated by the securities companies.
As for how to make money from short selling, you can also borrow stocks to sell them. Take General Electric's GE stock as an example. This time Tiansheng Capital borrowed approximately 390 million shares from major securities firms with a market value of US$10 billion.
Sell in the secondary market.
When GE's stock price plummeted to the expected $5.50, it only needed $2.145 billion to buy 390 million shares from the secondary market and then return the shares to the brokerage.
In the end, Tiansheng Capital's profit from this, excluding transaction costs, is 10 billion - 2.145 billion = 7.855 billion, which is a short-selling profit of US$7.855 billion.
After the securities lending is successful and the stock is sold quickly, the next focus is to sell short, that is, to publish a short-selling report to the market to indicate the reasons for short-selling. For example, the company has such and such problems, the stock price has deviated from the actual value, and the market needs
Revaluation.
In fact, the purpose of publishing a short-selling report is to "find a sense of recognition" in the market. Once other investors in the market recognize the views of the short-selling report, they will also follow suit and the stock price will fall rapidly. Tiansheng Capital can earn as much as
Just bigger.
After the stock price of the shorted company fell to a position that Lu Ming considered reasonable, Tiansheng Capital bought back the stock at a low price and returned it to the institution, thus completing a round of short-selling arbitrage.
However, short selling is quite dangerous. Selling something that does not belong to you is actually a very dangerous thing.
If you sell what you don't have, you must buy it back, otherwise you will go to jail.
Theoretically, the rise in stock prices is unlimited. One US dollar can rise to 10,000 US dollars or even higher. There is no upper limit, so theoretically the profits are unlimited.
The decline is limited, and the maximum decline is 100%, so the profit for short selling is limited and will never exceed 100% profit.
The most terrible thing is that the loss of short selling is unlimited. After short selling for 1 dollar, if the stock price does not fall but rises to 10,000 US dollars, the short-selling institution will have to pay the short-selling stock back to the brokerage institution. At this time, it will have to pay 10,000 US dollars.
If you buy back the stock you originally sold for $1, the more the stock price rises, the greater the loss, and you have to pay interest every day.
Therefore, it is quite dangerous to go short and you cannot fight an unprepared battle.
After Tiansheng Capital quickly completed the short-selling of these six companies through securities lending, as time entered August, Lu Ming decisively approved the public release of a long-prepared material.
That is, Tiansheng Capital published a short-selling report.
On that day, it caused a huge sensation in the financial circles at home and abroad. It suddenly became a big news and attracted various media reports.
