Chapter 1165 Mini Bonds

   "The peak market value of Huanghe Industrial and Lai Kee Huangpu is more than HK$300 billion, and the market value of the two companies together is as high as HK$700 billion.

   Now the market value of the two stocks has dropped to only about 100 billion Hong Kong dollars.

   But their net worth is high, almost double their current market cap.

   Let’s go to the wool of Li’s house, there’s not much to say about the wool, and it’s even sticky! "

   Seeing that Xia Jingxing seemed to be a little over the top, and even wanted to trouble the Li family, Huang Shengguo calmly dissuaded him.

   After shorting the Li family's listed company, the two could be considered to have established a revolutionary friendship.

   Huang Shengguo didn't want to see Xia Jingxing doing useless work, and he might even suffer some losses. As an ally, he would like to remind him amicably.

   "Dailun, don't forget, the Li family still has 20 billion Hong Kong dollars of bullets that have not been fired. When the market panic dissipates a little, they should shoot these bullets.

  You ran to go short at this time, and just hit the muzzle of someone else's gun.

   The fundamentals of companies such as Yellow River Industrial and Lai Kee Huangpu are sitting there, and they cannot fall. "

  Xia Jingxing smiled, "I'm just joking, this time we just let the Li family consume a lot of personal cash, and several of their listed companies still have ample cash in their accounts, and their businesses are operating well.

   Maybe the Li family will start the stock repurchase work, using a large amount of cash in the company's account to repurchase and cancel some of the outstanding shares, increase the shareholding ratio, and boost the stock price. "

   Huang Shengguo nodded, "That's right, if the old guy is bold enough, he'll just spend another HK$100 billion to privatize all three listed companies.

  Re-listing after merger and reorganization, maybe all the losses can be recovered. "

  Xia Jingxing smiled and said, "He probably doesn't have that much cash reserves anymore."

   "That's true, but you can borrow it! Isn't HSBC the royal bank of their family? Take the lead in getting some syndicated loans, or bring in several powerful investment institutions to complete the privatization and reorganization together."

  Xia Jingxing shook his head lightly, "Now the landlord's family has no surplus food, which financial institution will pay for this money."

   Huang Shengguo sneered: "This is a good thing, otherwise the old guy will privatize three listed companies, and the cash in those companies' accounts can cover all the loans and earn nearly half of the company's shares for nothing."

  Xia Jingxing did not speak, thinking carefully in his heart.

  The Li family is indeed fat enough, and they put a bucket full of blood this time without shaking the foundation of their business empire.

   How many times to put it?

   No matter how fat the pig is, it should be put down!

  Huang Shengguo sat for a while, then said goodbye and left.

  Before leaving, he had a serious talk with Xia Jingxing, and let Xia Jingxing do something good in the future, he must remember to call him... He can help him.

   Huang Shengguo is positioned very well. He knows that his Tiger Asia Fund is too small to eat the most fertile parts of the prey. As long as he can follow Vision Capital and drink some soup, he will feel very satisfied.

   Xia Jingxing naturally agreed, and as for the future... it depends on the situation.

   Anyway, he has no shortage of younger brothers who are running errands.

   Not long after Huang Shengguo left, the president of the HKMA, Yi Gang, also came to visit.

  His office is on the 88th floor, the topmost floor of this building. It is very convenient to get to the 49th floor. It takes two minutes to reach the elevator.

   Xia Jingxing personally greeted Yi Gang at the door of the company, which made the latter quite happy.

   He followed Xia Jingxing into the office with a smile all the way.

   As soon as he entered the room, he immediately praised the decoration and feng shui of Xia Jingxing's office, which made Xia Jingxing quite amused.

   "Mr. Ren, we are friends. There is no need to be so polite among friends. If you need any help, you can directly ask me, and I will definitely help if I can!"

   Ren Yi just seemed to be waiting for Xia Jingxing's words.

   He gently put down the coffee in his hand, sighed deeply, with a bitter smile on his face, trying to make an indescribable appearance.

   After performing for a while, he sighed again: "Alas, we, the Monetary Authority, have encountered a huge problem this time! It's not that we are forced to do nothing, and I don't want to trouble Xia Sheng!"

   The smile on Xia Jingxing's face was still undiminished, silently watching Yi Gangbiao's acting skills.

   It may be that it is really too laborious to perform alone, or that there is no positive feedback from the audience, and Yigang quickly stopped his set and talked about the topic.

   "Xia Sheng, Lehman's bankruptcy has had a very big impact on the financial market on Hong Kong Island."

   "This impact not only caused the Hang Seng Index and Hong Kong stocks to plummet, but also affected the business operations of Hong Kong Island banks and securities companies."

   "Banks on Hong Kong Island distribute 'mini-bonds' issued by Lehman Brothers!"

   "Mini bond?" Xia Jingxing pretended to be puzzled.

  Zheng Yigang smiled bitterly: "Yes, you are a well-known figure in the financial world, you should know that Lehman Brothers is selling CDO bonds to global investors, right?

   However, the regular transactions of CDO bonds are often in units of tens of millions or hundreds of millions of dollars, and they are over-the-counter transactions, which belong to the business between institutions, and ordinary investors cannot participate at all and have no access.

   But after the banks on Hong Kong Island bought some CDO bonds, they re-cut these bonds into small pieces, so they became mini-bonds.

   The entire Hong Kong Island market purchased a total of HK$15.6 billion in financial derivatives related to Lehman, of which HK$12.57 billion was cut into mini bonds.

   These mini-bonds were then sold to more than 30,000 investors by 17 banks including Bank of China Hong Kong Island, Bank of Communications and 3 securities companies, almost all of which were purchased by local Hong Kong Islanders.

  Because the minimum investment threshold is HK$40,000, there are many buyers such as taxi drivers, retirees, etc. "

  Xia Jingxing's mouth twitched, such a high-risk product was sold to an ordinary investor, his conscience is very bad!

  Zhigang continued while observing Xia Jingxing's expression: "Now that Lehman Brothers has collapsed, the value of these mini-bonds has been greatly depreciated and the losses have been huge.

   Investors are very dissatisfied. A street art performance with a scale of 500 people broke out a few days ago, calling on our regulators to intervene. "

  Xia Jingxing said with a smile: "Investment is risky. Hong Kong Island is a financially developed city. Citizens should be aware of this, right?"

  Zheng Yigang shook his head, "Judging from the complaints received by the HKMA, many people were misled by bond sales agencies.

  The sales book of a mini-bond is 54 pages long, not to mention ordinary investors, the elderly, and even ordinary financial practitioners can’t understand it.

  Many people listened to the words of the bank’s sales staff and thought it was a product with guaranteed principal and interest, and used all their deposits and pensions to buy mini-bonds. "

   Xia Jingxing raised his brows, "Then this is a serious breach of the bank's responsibility? They should be held responsible."

  Zheng Yi just waved his hand, "Listen to me first, the HKMA and the Securities Regulatory Commission have already filed a case to investigate the banks and securities companies involved, and will check to see if the sales staff of these institutions misled investors."

  Xia Jingxing smiled, "Isn't this good, the problem is found out, who should be in charge."

   Just smash it, smash it, and smirk: "No matter how the situation is finally found out, this matter must be a bunch of confused accounts.

   Banks and securities firms are really just distributors and these bonds are designed and issued by Lehman Asia. "

  Xia Jingxing and Yi Gang looked at each other, and suddenly realized that this was what they meant!

   (end of this chapter)