After divorce, I can hear the voice of the future

Chapter 723 Monday Opening

"The market is about to open."

The 16th typhoon of the year has passed, but the gloom still hangs over the hearts of every investor in Hong Kong stocks.

Over the weekend, the media reported on the rampage caused by Bebinca, but apart from a clarification statement from the Hong Kong Monetary Authority, no other news was released.

The lack of news is the biggest negative news, indicating that the Hang Seng Index is very likely to fall to the price level it was at before Tianxing Quant settled in Hong Kong.

Previously at 23800 points, now at 24808 points, even excluding the chain reaction of Lu Liang's short selling, there is still a drop of at least 1000 points.

Meanwhile, Lu Liang finished his morning exercise and arrived at the 82nd floor of Phase 2 of the Plaza Building before 9:00 a.m.

"Can you hear me?"

Lu Liang took the office headset from Li Junwei and tested the communication tool as he walked.

"Received." "Received." "Received."

The voices of Sun Yutao, Liang Wenhui, and Wen Chao came through the headset one after another.

When a lion hunts a rabbit, it must exert its full strength; moreover, HSBC is not a rabbit to be slaughtered.

Their actions must be swift; once their intentions are discovered, HSBC will inevitably take countermeasures.

If the war drags on, Lu Liang may be able to afford it, but it could easily backfire and allow others to reap the benefits.

"Using Beijing time as the standard, first verify the information, then each person should report their available funds and position information."

Lu Liang arrived at the office, instructed Li Junwei to stand inside the door and Xu Jiawei to stand outside, and refused any disturbance from anyone.

Sun Yutao paused for a moment, then spoke first: "President Lu, Tianxing Private Equity has $138 billion in available funds and $2.3 million in position funds."

Last Friday was the best time to cash out, but the undisguised way they sold off their shares made it clear to many southbound funds that they intended to sell, thus triggering a wave of imitation.

They cashed out over two billion US dollars in the morning, but in the afternoon, the amount cashed out was less than one-fifth of what they had in the morning, so they still have $2.3 million in underlying funds.

"Tianxing Quant has $28 billion in available funds and $158 billion in position funds." Liang Wenhui followed closely behind, and although he was in the office next to Lu Liang's, they still communicated via electronic communication.

Tianxing Quant's initial capital is $200 billion, with $30 billion as a reserve fund that can never be used unless there is a life-or-death crisis.

Last Friday, a total of US$170 billion was invested in shorting Hong Kong stocks. So far, if the position is successfully liquidated, a profit of US$16 billion will be made.

Finally, Wen Chao spoke, saying, "Xingheng Investment has $81 billion in available funds, but zero in its portfolio."

Tokyo-based Star Investment, with total assets exceeding $160 billion, has amassed approximately 162 million Bitcoins, worth over $78 billion. It has also recently been acquiring Fuji TV and is seeking a suitable commercial investment bank for acquisition.

Therefore, the total available funds are the least among the three.

As Wen Chao finished speaking, apart from Lu Liang, the other two, including Wen Chao himself, were all unsettled.

The three companies, including their pre-invested positions, theoretically have a combined total of US$407 billion that they can mobilize in the Hong Kong stock market.

400 billion US dollars is equivalent to 2808 billion RMB, or 3174 billion Hong Kong dollars.

If they remember correctly, last year's Forbes rich list showed that the Jack Ma family, ranked third, had a total net worth of only $404 billion, while even the first-ranked, Xu Jiayin, known as the richest man in the country, only had $443 billion.

Forbes calculates the value of its equity holdings. If they sell their shares in Ali Penguin or Hengtai, the equity value will decrease accordingly, potentially by as much as half.

In contrast, Lu Liang was able to mobilize $407 billion in liquidity without suffering any major setbacks.

Once this news gets out, industry leaders both at home and abroad will probably be losing sleep.

For ordinary people, there is no difference between having tens of millions and hundreds of billions of dollars; it's just a larger number.

Like a newborn calf that is not afraid of a tiger.

But the bigwigs all know very well how powerful such a huge sum of money is in one person's hands—it's absolutely no less than the button on a nuclear weapon.

Moreover, Tianxing Phase IV private equity has been settled for several months, and many investors are eagerly awaiting news of the establishment of Tianxing Phase V private equity.

If Lu Liang loosens his grip, raising another one or two hundred billion US dollars would be no problem at all.

By then, with a sum of five or six hundred billion US dollars, it could stir up a storm in any market.

Such a huge sum of money, if it were directed at a single company, would be as easy as crushing an ant if the company didn't have a financial consortium of equal size behind it.

"Xingheng's funds should remain inactive for now. Yutao, you should work with Wenhui to help the quantitative fund close out its short positions."

Lu Liang sipped the medicinal soup from his thermos, turned his chair to face the window, and looked down at Hong Kong from 400 meters above the ground.

The lack of positive news over the weekend is the biggest negative factor. As soon as the Hong Kong stock market opens, there will definitely be a flash crash.

Tianxing Quant must seize this opportunity presented by the flash crash to liquidate the $158 billion in short positions it holds.

$158 billion is HK$1232.4 billion. Even using quantitative trading, it took them three hours on Friday. To capitalize on the flash crash and close out positions, they needed additional funds to suppress the market and prevent a rebound.

Although shorting Hong Kong stocks is just a means, not the ultimate goal, Lu Liang doesn't want to let a sure thing slip away.

After the mission was assigned, Lu Liang and Wen Chao both chose to remain silent, and only the voices of Sun Yutao and Liang Wenhui could be heard talking in their earpieces.

“Mr. Liang, the amount of funds in quantitative trading is too large. It’s best not to participate in the first 15 minutes of pre-market trading. The private equity firm still has some funds in its positions. We’ll sell half of our positions first to induce panic in the market, and then you can quickly buy back the funds when the trading board opens.”

Sun Yutao had a clear mind and quickly made a simple battle plan.

Not long ago, he and Liang Wenhui fought side by side and had a period of camaraderie. He knew that Liang Wenhui was a technically skilled person, but he was not particularly familiar with the process of how to mislead the market and mislead investors.

Therefore, he took the initiative to shoulder the responsibility and personally guided Liang Wenhui on when was the best time to use quantitative repurchase.

Lu Liang smiled with satisfaction. Only after the two finished their discussion did he ask, "Wen Chao, do you have any better ideas?"

"No, Mr. Sun's plan is very reasonable, but how to implement it will depend on the situation after the opening," Wen Chao said.

Lu Liang hummed in agreement: "Let's wait for the opening."

Like A-shares, Hong Kong stocks also have pre-market trading, but Hong Kong stocks have longer trading hours and longer pre-market trading sessions.

Pre-market trading can begin at 9:00 AM, and the rules are the same: you can only enter buy or sell orders, and you cannot cancel orders.

The reason Sun Yutao said to wait 15 minutes to act was because the trading volume in the first 15 minutes is too small, making it easy for someone to steal the profits at the last minute.

Moreover, guiding market sentiment requires a gradual approach.

Even if there's no good news over the weekend, it's still bad news. But the stock market is a casino, and stock investors are gamblers. Gamblers never give up until they've hit rock bottom.

After all, they had suffered huge losses on Friday. Even though their accounts showed a profit, they were still unwilling to give up what they had already gained.

Sun Yutao is creating a false impression that even without positive news over the weekend, the market on Monday might not be so bad.

First, give them a glimmer of hope, then just before the market opens, turn it into despair.

So when the market opens, they will panic and sell off their shares without thinking twice.

In this way, the quantitative fund can close its positions as quickly and cheaply as possible, securing its profits, and Lu Liang can then proceed with the next step of his plan.

At 9:00 AM, the Hong Kong stock market began its 30-minute pre-market trading session.

Although all three major indices fell, the expected stock market crash did not seem to have occurred.

"Has Lu Liang, this loser, run out of bargaining chips?"

"Damn it, I was on tenterhooks for two days, and this is all I get? This is all I get? This is all I get?"

"I knew it! You have to think outside the box. If everyone thinks it's Black Monday, then it's very likely that things will turn out the other way around."

"Buy more, buy more! There will definitely be a rebound today."

"Charge! Charge! Charge!"

Before 9:15 a.m., the Hong Kong stock market was booming, with millions of investors cheering.

Just when they thought that the so-called biggest stock market crash since 97 was just a lot of noise and no substance, but lacked staying power.

From the moment the minute hand jumped to 15, southbound capital flowed out at an accelerated pace, as if some great terror was about to descend.

If you don't sell now, you won't be able to sell when the trading session starts.

Panic has spread again, with all investors fearing a repeat of Friday's events.

A large amount of capital flowed out, causing the Hang Seng Index to suddenly gap down. In the blink of an eye, the index fell from 24800 points to 24100 points, a drop of 700 points.

Only before the market opened,

The 24000-point mark is about to be breached.

For a moment, countless people felt as if dark clouds were gathering overhead, as if the aftershocks of a typhoon had not yet dissipated.

Liao Defa is a taxi driver in Hong Kong. One second he was humming a tune and waiting to accept a fare, ready to start his daily goal of earning three thousand.

However, the next second, he glanced at the stock market and, disregarding the traffic ticket he would receive if he parked on the side of the road, submitted a sell order at the fastest speed he had ever done.

The market trend in today's pre-market trading reminded him of that unpleasant Friday.

I made over 100,000 yuan in the morning session, and even ordered two roast geese for lunch. But when I checked the closing bell in the afternoon, I found that not only had I lost over 100,000 yuan in profit, but I had also lost over 100,000 yuan.

He didn't want to repeat the pain of that day...

(End of this chapter)