Break out of the courtyard
Chapter 836 The Japanese Stock Market is Doomed
Friday, December 1, 1991.
Japan Island, Tokyo Stock Exchange.
"Peace Group and Peace Motors have issued an announcement!"
"Peace Group will temporarily suspend its plan to repurchase Peace Motors shares! Peace Motors will add two new models: multi-purpose vehicles and sports cars."
"Sell it! Even the Peace Group doesn't have a positive outlook on Peace Motors anymore, so what are we still holding onto Peace Motors stock for?"
"What's the point of Peace Auto adding two more models if they don't come up with a new sales plan now? Have their management gone mad?"
"In just two days, Peace Motors' stock price has plummeted by 33%! If you don't sell now, you'll miss your chance!"
……
Aso Taro listened to the discussion around him, but his eyes were fixed on the Nikkei index on the big screen downstairs: 27089!
In just over four months, the Nikkei index has rebounded by 36.9%, and Japanese stock market investors have regained confidence that the Nikkei index will break through 40,000 points!
Amidst the frenzied atmosphere of stock trading, Taro Aso frowned deeply.
"Honey, the account data from my stepmother's investment company is out!" Aso Yuriko whispered, taking her husband's right arm.
"They have sold all their shares in Toyota, Honda, and Nissan, and currently have 13.8 trillion yen in cash on hand."
"In addition, they hold 21% of the shares of Peace Motors, which, together with the shares held by Peace Group, brings their total to 48%."
"Impressive tactics!" Aso Taro looked at the various stock prices displayed on the large screen below and said indifferently, "In just four months, they turned 9 trillion yen into 15 trillion yen. The speed at which the printing press prints money can't keep up with the speed at which they make money."
Yuriko Aso added, "I also received news that Peace Motors is applying to the mainland for a change of export to domestic sales."
Taro Aso doesn't care about the fate of Heian Motors; all he wants now is for the Japanese stock market to plummet, to prove that his earlier skepticism about the Ministry of Finance was correct.
"Has the data for those foreign accounts come out yet?" Taro Aso asked in a deep voice.
“There’s a lot of data, and we’re still organizing it,” Mrs. Aso replied softly. “However, based on the data that has already been organized, the outflow of foreign capital is 2.7 times the inflow.”
The fact that outflows of funds exceeded inflows indicates that foreign capital is fleeing the Japanese stock market, which reassured Taro Aso and made him feel that his future was bright.
As for how much damage the sharp drop in Japanese stocks would cause, that was not within Asano Taro's consideration, because it was caused by the dereliction of duty by the Ministry of Finance!
Suddenly, a burst of screams and curses came from downstairs!
"Peace Motors' stock price has hit the daily limit down again!"
"Baka! That's not how you sell stocks! You should dump them at the circuit breaker point and suspend trading. How are people supposed to sell Peace Motors stock then?!"
"Who knows which big organization placed those 300 million lots? I'm going to bring gasoline cans and go fight them to the death!"
……
Hong Kong Island, Stepmother Investment Company.
"Didn't that just drive the price down?" Zhang Heping looked at the 20% drop in Heping Auto's stock, patted the fund manager who had just been manipulating the computer to sell off Heping Auto shares, and laughed, "How many shares did you just sell off?"
The young man who was patted on the shoulder exclaimed excitedly, "Less than 2000 moves!"
"Since the Japanese have also issued a joint statement restricting our trams, don't blame us for retaliating!" Zhang Heping looked at the fund managers around him and said coldly:
"Everyone, your chance to make big money has arrived!"
Whether you can achieve financial freedom and become a billionaire depends on what you do this month!
"Do you have confidence?"
"Yes!" Zhang Heping shouted, and the surrounding fund managers responded in unison, their shouts shaking the floorboards!
The reason these fund managers were so excited was that in June 1987, Lou Shang Heping Investment Company distributed management bonuses of 28.92 billion US dollars to its 300 fund managers.
This sum, when distributed among each fund manager, amounts to over HK$7400 million!
Such a high bonus caused a great sensation at the time.
At the same time, it has also become the ultimate goal for the fund managers of Stepmother Investment Company!
"Alright, there are only two tasks left!" Zhang Heping said slowly after everyone had calmed down: "First, write an assessment report to lower the ratings of all the listed companies in Japan!"
"Secondly, select the Japanese stocks, stock index futures, and options you intend to short, and send them to me via email for approval in your groups."
After Zhang Heping finished explaining the work at his stepmother's investment company, he went upstairs to take a look around Heping Investment Company before going to his mistress Chen Shuting's office to wait for her to finish get off work so they could go back to Victoria Peak together.
Although the joint statement issued by the US and other allied countries did not name any specific car company, everyone knew that it was aimed at PeaceCars.
Therefore, the distributors of Peace Motors have been contacting us recently.
Polite distributors will ask Heping Motors and Heping Group if they have any solutions, while impolite distributors will directly demand a refund of their deposit.
Unfortunately, the lawyers at Peace Law Firm were no pushovers. When drafting the car purchase contract, they specified the types of force majeure, including policy restrictions from various countries.
So, there's no way to get your deposit back, but you can postpone payment and car delivery for 3 months.
As for whether the Peace Group can successfully communicate with the allied countries about the export of electric and hybrid vehicles three months from now, many distributors are unsure.
Therefore, the wealthy wives of Peace Property gathered at the Zhang family's residence on Victoria Peak at the beginning of the month to inquire about their response strategy.
"One of Bamboo!" After playing a card, Mrs. Guo said to her opponent Tang Xin as if casually, "Xin, this morning the Peace Group announced a plan to postpone the repurchase of Peace Automobile shares. Are you planning to give up the automobile business?"
Zhang Heping had anticipated this problem.
Because several leading Hong Kong businessmen had inquired about the rebound in Japanese stocks before the Lunar New Year, Zhang Heping advised them to buy shares of Heping Motors if they were unsure, and that Heping Group would repurchase them at that time.
So, having memorized her sales pitch beforehand, Tang Xin didn't even think twice before answering the question, casually replying, "How could I possibly give up a company named after my husband!"
Mrs. Rong, who was watching the mahjong game from the side, frowned and said, "But the stock price of Peace Motors has already dropped by more than half!"
Tang Xin thought for a moment and said, "Your companies bought Peace Motors stock on my husband's advice."
"So, how many Peace Motors shares do you have? I'll ask my husband to see if we can buy them back at your purchase price."
The people playing cards and those watching the game looked at each other in silence for a moment.
They were just there to sound out Zhangjiakou; with Tang Xin's words as a safety net, they could go back and report.
In the following rounds of cards, with the help of the other three wives, Tang Xin had a very good run of luck. After all, the Zhang family possessed the Longevity Elixir, a miraculous anti-aging drug!
Afterwards, prominent Hong Kong businessmen such as Ho, Kwok, Bao, and Yung did not mention Peace Motors stock again, intending to wait three months like those car dealers.
In fact, there is some annoyance in China about the ban on exporting electric vehicles and hybrid vehicles to 33 countries.
Because China holds 49% of the shares in both the Shenzhen Peace Automobile Plant and the Shenyang Peace Automobile Branch Plant, the inability to export Peace Automobile means that the mainland will lose billions of US dollars in revenue every year!
As for the rumors of exporting to domestic sales, there are no restrictions on the sale of Peace Motors in China. It's just that some provinces have their own electric vehicle manufacturing plants, which creates regional restrictions.
……
With the end of the Middle East conflict and the withdrawal of troops from the United States and its allies, Wall Street in the United States has also joined the ranks of those bearish on Japanese stocks, issuing downgrade assessment reports on various Japanese listed companies.
In addition, Japan's Ministry of Finance also felt that the recent rebound in Japanese stocks had been too strong and that it was necessary to cool down the Japanese stock market.
As a result, with the combined effects of internal and external forces, the Nikkei index stopped at 27270, and various Japanese stocks began to decline in a row.
During this period, the US government, in conjunction with other countries, issued a regulation on the inspection and management of health products imports and exports, directly targeting products under the Peace Group such as Tiger Whip Wine, Viagra Delay Spray, Tingmei Slimming Tea, and Taitai Oral Liquid.
The restrictions on Peace Motors and these health products have resulted in Peace Group losing more than 5 million US dollars in monthly profits.
However, the Peace Group continues to ignore the provocations from the Americans.
Since the Peace Group's products are only sold in Hong Kong Island, anyone who has the ability to sell the Peace Group's products overseas can go to Ting Mei Trading Company or Peace Plaza to purchase them.
Those distributors are actually quite clever. Several years ago, they learned to repackage tiger penis wine, Viagra delay spray, Tingmei slimming tea, and Taitai oral liquid, and then sell them under their own brands to other countries.
However, after the new regulations on the inspection and management of health products imports and exports were introduced, it became difficult to deceive distributors with fake ingredient lists in countries with strict regulations, which led to a significant decrease in the quantity of products purchased by distributors, resulting in less profit for the Peace Group.
However, this loss was recovered in less than a day after Peace Investment, Stepmother Investment, and Peace Group joined forces to short-sell Japanese car companies.
Since Zhang Heping has already gone so far as to openly short Japanese automakers, he must have other tricks up his sleeve.
On March 15, Heping Automobile issued an announcement stating that it had raised 3 billion yuan through capital increase and share expansion to establish a Heping Automobile branch plant in Wucheng to produce gasoline-powered vehicles!
Meanwhile, Peace Motors also released renderings of two new types of internal combustion engines.
A fuel-efficient engine with a promised fuel consumption of 3.6L-5L per 100km.
Another engine that prioritizes power has a power output of over 600 horsepower.
To ask others whether they believe Peace Motors can produce these two types of engines, just look at the various Nissan car engine data uploaded and published by anonymous netizens on the World Internet Forum, as well as the constantly updated Euromag car engine data. Those in the know will understand whether they have the relevant technical reserves.
In fact, Zhang Heping did not intend to sell gasoline-powered vehicles to the public when he established the Wucheng Heping Automobile Branch Factory.
The joint ventures between Wucheng Shipbuilding Company and Shaanxi Aircraft Technology Company, in which the Umbrella Security Company will soon hold a 49% stake, are merely Zhang Heping's means of dealing with Elder Hua and Elder Li.
Otherwise, they'll start nagging again, saying we need to be mindful of international influence and our company's reputation!
Yes, Zhang Heping has already allocated the profits from shorting Japanese stocks to the three military industry sectors of automobiles, ships, and aircraft, in order to shut up Hua Lao and Li Lao.
Zhang Heping still remembers hearing from the Vanke boss in his previous life that they had businesses in addition to military industry.
Today, Zhang Heping wants to expand the Heping Group's business to include all industries, including the military industry!
There are still some people in mainland China who oppose the Peace Group's involvement in military equipment production.
However, the resistance lessened considerably after Umbrella Security offered to take only 49% of the shares and provide money and technology.
With the support of hundreds of elderly people at Shenzhen Peace Hospital who were undergoing physical conditioning in preparation for trying the Longevity 100 drug, the initial resistance came quickly and disappeared just as fast.
The remaining problem is when the mainland's military spending will be restored.
Zhang Heping believes that, reminded by the Middle East war, the mainland can no longer devote all its money to economic development. It must instead invest in modern weaponry to resist the coalition forces!
It was the help of the coalition forces that withdrew from the Middle East that made Hua Lao and Li Lao think of the Eight-Nation Alliance and the Korean Peninsula coalition forces on the other side of the 38th parallel. That's why they tacitly approved Zhang Heping's retaliation against the Japanese stock market, treating it as a debt collection!
As Peace Group publicly shorted Japanese automakers, not only did the Tang brothers, Tang Lie and Tang Qiang, excitedly follow suit, but other Hong Kong businessmen and foreign institutions also rushed in, as if they were beating a drowning dog.
In recent years, the price of metal raw materials has increased several times due to Tingmei Trading, as well as the various restrictions imposed by Euromagnesium on Nissan cars.
In addition, the problems of Japanese automakers neglecting their main business, speculating in real estate and stocks, and even buying various assets overseas have been exposed, resulting in Japanese automakers' rating being downgraded to the lowest level!
Even with major Japanese banks lending their full support to Japanese automakers to stabilize their stock prices, it was still no match for the short-selling pressure from various foreign investors with leverage of tens or even hundreds of times!
The key point is that on March 29th, Zhang Heping made a careless move that became the last straw that broke the camel's back, leading to a complete collapse of the Japanese stock market!
Bee on the tail!
A renowned spiritual medium and stock market guru throughout Japan!
An old fortune teller who predicts the rise and fall of Japanese companies' stocks using wooden toads!
On the morning of the last trading day of the month, she gave a live interview and publicly admitted to using fake deposit slips to borrow money from Industrial Bank to speculate on stocks.
At the same time, it was also revealed that several banks had issued loans using fake checks.
As for the trivial matter of financial elites using her predictions to fleece investors, that's no longer important.
Importantly, Nikko Bank is facing an unprecedented crisis of confidence!
Peace Wisdom Technology Co., Ltd. followed suit, sending critical inquiry letters to banks and securities firms in various countries that use their electronic trading system, asking whether they would suspend the electronic trading portal and international settlement business of Japan Island Bank.
1991年3月29号下午1点53分,这是个值得被永远记住的日子。
At this point in time, all stocks on the Japanese stock market have triggered the -20% circuit breaker mechanism and are no longer available for trading!
What does a 20% drop in the Japanese stock market mean?
With 100 million US dollars as principal, leveraged 100 times, you could short any Japanese stock and earn 2 billion US dollars in profit in a single day!
Of course, talking about money is vulgar!
While the Japanese government was relieved that the financial crisis occurred on a Friday, it began lobbying various countries, hoping they would restrain the institutions that were shorting Japanese stocks.
The response from the mainland side is very simple: we have no individuals or institutions shorting Japanese stocks!
Peace Group?
Excuse me, that's a Hong Kong Island company!
When the Japanese government sent people to the Hong Kong government to plead for help, the Governor and Shen Bi were still discussing how much money they had made on Friday, and only sent a female secretary to ask what the Japanese wanted to do.
How can we stop the Peace Group from shorting Japanese stocks?
Sorry, but we at Daying uphold the law and human rights above all else. We have no right to interfere with the actions of any individual or company, especially when it comes to remote stock trading online!
When the Japanese arrived in the United States, the response they received was similar to what the Americans said: they wanted democracy, freedom, fairness, and the rule of law!
However, things took a turn for the better when the Aso couple entered the Fukushima Peace Academy with a brand-new history textbook from Hijima High School… (End of Chapter)
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