After divorce, I can hear the voice of the future
Chapter 724 Why court death?
Chapter 724 Why court death?
Pre-market trading is temporarily suspended.
Sun Yutao's anxious voice came through the headset; investors in the Hong Kong stock market seemed to be more vulnerable than he had imagined.
Ten minutes later, a mere $120 million outflow triggered a massive flight of nearly $10 billion.
In the A-share market, retail investors are used to sharp drops and crashes, so their reactions will definitely be slower.
Even with capital outflows, most people still hold onto the belief that they won't give up until they see the Yellow River run dry and the stock price hits its daily limit down.
"President Lu, have I gone too far?" Sun Yutao asked Lu Liang cautiously, his face grim.
With three minutes remaining before orders were submitted and the stock market about to open, the Hang Seng Index also broke through 24000 points in the last second.
Now, he can guarantee that as long as Tianxing Quant's trading frequency is fast enough, it will work.
The $158 billion short position will be liquidated instantly, just like a flash sale.
However, this raises a new question: if no one intervenes to rescue the market, the Hang Seng Index may not even reach 23000 points.
It's a bit like the Qingming Festival, where people originally intended to burn paper money to worship their ancestors, but instead it caused an uncontrollable forest fire.
Sun Yutao was unaware of Lu Liang's future plans and was afraid that a sharp fall would add burden to his subsequent plans.
"It's okay, the more it falls, the better."
Lu Liang's lips curled up into a smile: "Change the plan. When the market opens later, we'll conduct a slow, quantitative sell-off."
Before that, they also had to worry that if the short covering was too aggressive, it would cause a market rebound, thereby increasing the cost of their subsequent investment in HSBC.
Because HSBC's market capitalization is too high, even after Friday's sharp drop, it still has 789 billion, which is more than 100 billion US dollars. To reach the 5% threshold for disclosure, it would need to invest at least 5 billion US dollars.
Moreover, as soon as someone discovers their intentions, the stock price will rise higher and higher, and the shares will become increasingly difficult to acquire.
Therefore, they need to create a market environment of sharp decline and then quietly acquire HSBC shares from the secondary market.
But now it seems they were overthinking it.
Unlike A-shares, Hong Kong stocks operate on a T+0 basis, meaning you can buy and sell on the same day. If you can't go long, you can go short, offering more options.
The fact that 120 million yuan triggered an outflow of nearly 10 billion US dollars is a clear example of retail investors following the trend, while institutional investors and speculative funds remained inactive.
While it's uncertain whether these shrewd individuals will hinder their future plans, from the perspective of short covering, the benefits outweigh the drawbacks for now.
In order to prolong the sharp decline, Lu Liang hoped that Liang Wenhui could extend the time frame when he liquidated his positions.
This not only makes self-proclaimed smart investors believe that selling and shorting in time is the right choice, but it also makes the market even more murky.
On Friday night, at the Li family villa on Victoria Peak, many people had already guessed Lu Liang's plan; his target was none other than HSBC or Standard Chartered.
Although it was a choice between two options, he didn't want people to guess correctly so quickly; he needed to make the situation even more murky.
To prevent anyone from realizing the potential profits and becoming a stumbling block on the path to investing in HSBC.
The Hong Kong stock market opened at 9:30 a.m.
The sell order was executed instantly, and the Hang Seng Index gapped down from 24000 points to 23500 points, then plunged another 500 points.
Compared to last Friday's closing price, the Hang Seng Index has already fallen by more than 1300 points in just one second since the market opened today.
"A new stock market crash is coming."
The hosts of TVB, ATV, and Phoenix TV's three major financial news programs all uttered cries of despair.
Although short selling is an option, very few people can reverse their position and go short after incurring losses from going long.
Most people's only option is to increase their position or add leverage, hoping to wait for a rebound and wipe out all their losses in one fell swoop.
However, just as the sky is about to rain, so too is a mother's desire to remarry.
A minor commotion before the market opened was not enough to prevent Black Monday from arriving.
"The Hong Kong stock market is in such a sorry state. This is the first time I've felt so warm and supportive of our A-shares."
A large number of mainland stock investors flooded the comment section of the Hong Kong stock sector, gloating.
Previously, Hong Kong stocks and A-shares were closely intertwined; generally, when Hong Kong stocks fell, A-shares were also likely to be affected, and vice versa.
But since Tianxing Quant settled in Hong Kong half a month ago, it's like two parallel lines have intersected for the first time.
Moreover, the crossover situation is intensifying. As it has evolved, the Hang Seng Index opened down 5.25%, while the Shanghai Composite Index only opened down 0.32%, and there is even a hint of a trend of opening low and then rising.
However, the gloating A-share investors were rendered speechless by a single sentence from Hong Kong stock investors: "Ten years ago, the Hang Seng Index was at 10800 points, and even now it's at 23500 points, but what about the Shanghai Composite Index?"
"That hurts, my friend. We're from the same root, why are you so eager to fight me?"
Lies don't hurt, but the truth is the sharpest knife. At least Hong Kong stocks have ups and downs, but A-shares seem to only have ups and downs and more and more...
Meanwhile, at the Zheng family's Yiyun Villa.
The disbanded Big D group reunited, but Li Zhekai was absent, and even Da Liu participated via remote video conference.
"Is there only so much capital available for quantitative short selling? Why haven't they closed out their positions yet?"
As the trading volume rapidly climbed, approaching HK$400 billion, everyone present looked puzzled.
Lu Liang's short selling of Hong Kong stocks was merely a means, not an end, and their intentions have been successfully discerned.
They also gathered together again, intending to cause trouble for Lu Liang in order to achieve the effect of seeking peace through war.
They were unsure whether Lu Liang's target was HSBC or Standard Chartered, so they waited for the quantitative trading to close out the positions and for Lu Liang to make a mistake. However, an hour later, the trading volume in Hong Kong stocks reached HK$3800 billion. Given the frequency of quantitative trading, the positions should have been closed out long ago, and Lu Liang should have taken his next step.
However, both HSBC and Standard Chartered saw their share prices fall, and there was nothing unusual about it.
This puzzled them greatly. Had they misjudged Lu Liang's intentions? Was shorting Hong Kong stocks simply a way to make money?
Zheng Jiachun looked thoughtful as he glanced at the screen: "Big Liu, what do you think?"
“Since it’s a choice between two options, let’s bet on both,” Da Liu said, with a magnificent starry sky in the background.
He was in Switzerland, which is six hours ahead of Beijing. When it was 10 a.m. in Hong Kong, it was 3 a.m. there.
"If we bet on both sides in advance, wouldn't that expose our intentions? Won't that offend Lu Liang?" Yang Shoucheng asked with concern.
Ever since I heard from my youngest son that Star Investment plans to acquire an investment bank and will enter the Hong Kong market within six months at the latest.
If you have any ideas but lack funds or resources from mainland China or internationally, you can contact him for help.
Upon learning this news, Yang Shoucheng had already decided to back down, not wanting to be enemies with Lu Liang, and advocated seeking peace through negotiation.
He spent his entire life as a mouthpiece and didn't want his descendants to become mouthpieces between various powers.
Lu Liang's arrival will inevitably change the situation in Hong Kong, and this change will be even more thorough than the one during the handover.
If they can seize the opportunity, the so-called Zheng, Li, Guo, and Yang families might very well be able to take their place.
"We are intervening to save the market, and we are doing so from a perspective of greater good." Zheng Jiachun's attitude was unquestionable, setting the tone.
Since Lu Liang's target is uncertain, let's bet on both sides in advance. First, bet on the side that we won't lose, and then try to gain more.
He glanced around at the crowd and then said, "As is customary, let's vote by raising hands."
"I have no objection." Liu was the first to respond. Anyway, he was abroad and had transferred most of his assets, so he wasn't afraid of offending Lu Liang.
Seeing Liu raise his hand, Zheng Jiachun slowly raised his hand as well, focusing his gaze on Yang Shoucheng. As the saying goes, when there are no heroes, even a nobody can become famous.
If his father, Uncle Tong, were still alive, Yang Shoucheng wouldn't even have had the chance to express his opinion; he would have to do whatever they told him to do.
But now, Yang Shoucheng has become a key figure in their organization, and if he doesn't approve, it will be very difficult to implement.
Seeing that all eyes were on him, Yang Shoucheng said in a deep voice, "Since everyone has no objections, let's proceed with the project."
"The Zheng family invested HK$50 billion."
"The Liu family invested HK$30 billion."
"The Yang family invested HK$15 billion."
"..."
With a growing response, the fund has raised HK$389 billion, equivalent to US$49.8 billion.
"Da Liu, I'm leaving the market operations to you. Are you physically capable of handling it?" Zheng Jiachun asked.
Da Liu smiled and showed the back of his hand: "Don't worry, I'm getting an injection. Besides, it's just buying stocks, so it's not a big problem."
"Jiachun, Da Liu, I'll go prepare the funding channels first," Yang Shoucheng greeted with a smile.
"Let's get the funds ready as soon as possible, before the afternoon session," the two said in unison.
"Ok."
After Yang Shoucheng left, Zheng Jiachun chatted with Da Liu: "How's the environment in Switzerland?"
"The mountains and waters are beautiful, the air is fresh, and looking at the starry sky, I feel like my kidneys have a longer shelf life."
"In my opinion, you should install a zipper on your lower back to save yourself the trouble of having to have surgery every now and then."
"I'd like to, but the doctor disagrees."
"Hahahaha~"
Ordinary people are reluctant to talk about diseases, fearing that they might accidentally touch a nerve with the other person.
But they didn't care too much about it; even if it was kidney failure, it would just mean spending more money and needing another kidney transplant.
As Yang Shoucheng walked out of the main building of Yiyun Villa, while raising funds, he beckoned to his young son who was waiting at the door.
"Qi Sheng, what do you think we should do?"
Yang Shoucheng truthfully recounted all the details of their discussion inside.
Yang Qisheng frowned: "Lu Liang is resistant to gentle persuasion but not to force. Your actions will make him mistakenly believe that you are an enemy force."
Judging from Lu Liang's attitude and words at the party that night, he believed that his arrival in Hong Kong was like the arrival of a king, and he didn't need to pay attention to anyone.
Allowing Lee Chee-kai to organize the gathering in his name was, in his opinion, the least respect he could give to local forces.
Now that the formalities have been completed, anyone who dares to make a move should not blame him for not giving prior warning.
This attitude will definitely make the uncles and elders in the house feel very uncomfortable.
But Lu Liang does indeed have that ability.
Now that they have seen through Lu Liang's plan, they intend to seek peace through war, so that Lu Liang will know that they are not to be trifled with.
However, in Yang Qisheng's view, there was no difference at all; whether one died standing up or kneeling down, one would die in the end.
Why court death when you can live?
(End of this chapter)
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