Chapter 1141 The knife is in hand, follow me, kill the bear

   "As of today's close, all of our $10 billion has been put into the market, and it's up to you."

  Xia Jingxing's private plane has been declared to the air traffic control department, and it will take off for the United States tonight.

   Before leaving, he invited Huang Shengguo to the office of Vision Capital, ready to chat with him.

  Huang Shengguo sat on the sofa and glanced at Xia Jingxing who was lying casually across from him from time to time. He didn't know whether to say that the other party had a big heart or that the other party was too good at acting.

   At least he didn't feel too much nervousness in Xia Jingxing.

   After thinking about it, Huang Shengguo still told his hidden worries: "Mr. Xia, we made some mistakes in our judgment this time, and seriously underestimated Li Huangtai's determination to increase his equity holdings.

  From 10 billion Hong Kong dollars to 50 billion, and then to the newly announced 100 billion today!

   This Hong Kong Island Lai Family is more powerful than our Korean Lai Family! Pockets are bottomless! "

  Xia Jingxing sat up straight and raised his hand to greet Huang Shengguo for tea.

   He also took a sip of tea from the cup himself, and then slowly said: "As of now, as an old Chinese saying goes, we have already "ridden a tiger to get down"."

   Huang Shengguo gave a wry smile, which is a very appropriate word to describe.

   He has investigated the Li family, and naturally knows that this top Asian chaebol has hundreds of billions of cash reserves, but it is not good to do so much money. If you have to use it to increase equity holdings, it is too late for others to cash out.

   If I knew that Li Huangtai's counterattack was so tough, I wouldn't touch this tiger's butt.

   But he thought about it carefully, and felt that the whole thing revealed a strangeness, which was not like Li Huangtai's handwriting.

  Because this old man has always been stubborn, he loves cash as much as his life, so there must be a big conspiracy to "spend" cash like this!

   Thinking of this, he asked aloud: "Mr. Xia, do you think it is normal for Li Huangtai to increase his shareholding by 100 billion? I don't feel quite right."

  Xia Jingxing actually feels the same way. Such a large-scale increase in holdings either wants to bury the shorts, or has other deep meanings.

   If Li Yikai was in charge of the house, Xia Jingxing believed that this guy would be able to do such a prodigal thing that he would not hesitate to spend hundreds of billions of money in order to attack his opponent.

   But now that Li Huangtai is in charge, he has to think a lot.

  Li Huangtai consumes precious cash, just trying to get rid of the short positions and make some floating profit?

   should not be so simple.

  Increase~Increase~

  Xia Jingxing muttered silently in his heart, and suddenly an epiphany occurred, or a dusty memory was awakened.

   He knew what the old man was doing!

   "Lai Kee Whampoa is an associate company of Yellow River Industrial, the latter holds 49.9% of the former, and about 55% of its profits last year came from the former.

   The business of Lai Kee Whampoa is very chaotic, like a hodgepodge of real estate, ports, retail, telecommunications...all businesses are all jammed inside.

   When the large-scale construction of 3G networks on Hong Kong Island and overseas countries a few years ago, Lai Kee Huangpu's net profit, stock price, and market value have suffered a lot!

  The market once looked down on Li Kee Huangpu because of the huge investment and loss of 3G, which in turn affected the Yellow River Industry. "

  Xia Jingxing looked at Huang Shengguo with a smile, "Do you understand now?"

   After such a little change, Huang Shenggui immediately understood and said in surprise: "Asset restructuring, splitting and merging, re-listing, and releasing the undervalued market value?"

  Xia Jingxing snapped his fingers, "Bingo! This old thing treats us as a whetstone, it's really a good calculus!"

After    guessed Li Huangtai's true intentions, Xia Jingxing not only did not worry, but was even more relieved.

   If Li Huangtai was not so "cooperative", how could a 100 billion short opponent be so easy to build.

   As we all know, short selling is to borrow stocks from investment banks and brokerages to sell, but if no one buys the stock, the stock price will fall slowly.

   If a stock does not have a large volume, large-scale shorting cannot be carried out.

   And if you short-sell at a low price, the short-selling behavior will be very dangerous, or even suffer huge losses.

  Because after the short sale is over, the stock needs to be bought and returned to the brokerage, and the profit from the short sale is the difference between the sale and the purchase.

   If the short sale of HK$50 is successful, and the stock price rebounds to HK$100 later, the difference is negative, which means that the short sale failed, and the position was closed with tears and money.

   Vision Capital sold hard, Li Huangtai bought hard, and the short-sold stocks were traded at a high price.

   Of course, this "high position" is completely different in the eyes of the two parties.

  Li Huangtai thinks that the stock price is lower than the net assets per share, which is quite cost-effective. I will charge as much as you sell.

   In Xia Jingxing's view, the operation of the Li family's listed company will be greatly affected after the financial crisis. It is almost certain that the price-to-book ratio will fall below 1, which means that the market value is lower than the net assets.

   Of course, the listed companies of the Li family are relatively high-quality, and their debt ratio is not higher than that of mainland real estate companies. The price-to-book ratio will soon return to normal levels.

   However, in the middle of the time window, it is enough for Vision Capital to buy and close the position when the stock price is low.

  The entire financial duel is not complicated, it is formed based on the different views of the two sides on the future market trend.

  Xia Jingxing knew that a financial crisis was about to break out, but Huang Shengguo didn't know, or he didn't know when it would come.

   He said with a tangled expression: "If you say that, didn't our short selling also help the Li family?"

   Xia Jingxing was not good at being a prophet, so he could only pinch his nose and admit: "Almost! Jiang is still old and spicy, this old thing is still somewhat level."

   Huang Shengguo's facial features were crumpled into a ball, quite a sense of sight that Xiao Yueyue was bullied.

   "If this stalemate continues, the lack of a force capable of breaking the balance will not be good for us!

  There is no pressure on the Li family to increase their stake, but we need to return the stock when we go short.

If    keeps dragging on like this, sooner or later we will have to close our positions, and once we buy stocks, we will be finished.

The   100 billion capital will be wiped out, it is very possible!

  Because once you fall into a short-squeezing market and the market winds change, all kinds of funds will come to join in the fun, and the stock price at that time has not been fired to the sky! How to close a position? "

  Xia Jingxing was still very calm and did not have any negative emotions because of Huang Shengguo's words.

   Huang Shengguo was actually right, once the situation reversed, he entered the market short squeeze.

   That is really the knife in hand, follow me, kill the bear!

   Any cat or dog will come over and beat the drowning dog! The passion of retail investors will also be completely ignited.

  In the case of a tough battle, retail investors may not be able to bear it, but once they fight against the wind, they are the best at it, and they can burst into unrivaled combat effectiveness.

   There is an upper limit on the profit of short selling, which will not exceed 100%, but there is no upper limit on the loss;

   Going long is just the opposite, the principal loss will not exceed 100%, but the profit has no upper limit.

   Of course, whether it is long or short, as long as leverage is added, it will be infinitely more joyful or painful.

   Considering the market capacity and safety, Vision Capital did not choose to increase leverage this time.

  If there is an extreme situation, there is still help.

  If the leverage is added, the stock price will be liquidated by the brokerage as soon as the stock price rebounds, and it may also face a claim lawsuit for overrunning the position.

   Generally speaking, if a brokerage firm liquidates the small amount of funds of retail investors, the risk control will be done well, and there will be no losses on its own.

   But if you encounter an unlucky big customer, then the risk control of the brokerage is really special, and because the liquidation is too big, the stock price fluctuates violently, and the margin is not enough to cover the loss, then the brokerage will bear the loss for the customer.

  What Xia Jingxing didn't know was that this handsome boy who sat in front of him in his previous life would try all the ways to die in his mind one by one many years later, and he would also cheat many investment bank teammates.

   is also the most chicken thief of Goldman Sachs. It is very neat to betray his teammates, otherwise he will not be able to please.

   Huang Shengguo thought for a while with a bitter face before he said, "Mr. Xia, we are on the same boat now, do you have any good way to break the deadlock?"

Xia Jingxing smiled, but he kept complaining in his heart: I have a hammer method. When I meet someone like the Li family with thick blood strips, they can't kill them with a single knife. They can waste all kinds of money with you. What else can I do? Wait... wait for the auspicious time to come.

   When the rolling general trend came over, the Li family was just a stronger ant, unable and unable to resist a financial tsunami that affected the world.

   "Well, don't rush to use the remaining 6 billion US dollars of funds on your side, and wait until the market opens next week to see how the market changes.

  I will go to the United States to see if I can find some good helpers! "

  Xia Jingxing looked at Huang Shengguo's devastated look, he seemed to be under a lot of psychological pressure, so he had to find a reason to prevaricate the other party, lest the other party could not bear the pressure and do something wrong.

  If Huang Shengguo wanted to run and jump into the sea, the LP of Tiger Asia Fund was replaced by a new fund manager, and he would close the position and stop the loss as soon as he came up, then it would be a fool.

  Although this possibility is very small, the key points should not be neglected.

  Since everyone is a teammate, he still needs to pay more attention to the mental health of his teammates.

Hearing that Xia Jingxing was going to the United States to find help, Huang Shengguo's expression suddenly became a lot of excitement, and he quickly asked: "Can I find Soros? He should be able to shock the situation and scare these investors, maybe the situation will be reversed at once. already."

Xia Jingxing pursed his lips. If the notorious Soros was brought in, then Li Huangtai would not give Lao Tzu a dung pot that would "respect foreigners, disrupt the financial environment of Hong Kong Island, and destroy the system of such and such", then the price would be high. went.

   It is better not to do this unless it is a last resort.

Even if Xia Jingxing had a bad impression of the rich people on Hong Kong Island and was never afraid to use all kinds of tactics on these people, he still had to consider the bad impact caused by the introduction of Soros to Hong Kong. , known as contemporary Wu Sangui?

   But he still pretended to promise: "Then let me try it! My best friend Paulson has been fighting with Soros recently. We are all friends, so we should give this face."

   "Okay, then I'll wait for your good news!"

   Huang Shengguo rubbed his hands excitedly, as if he had rekindled hope for life again.

   (end of this chapter)