Siheyuan, Shazhu: I have both parents in this life

Chapter 251 Stock Market Turmoil: The Whale's Acquisition of Wharf Holdings
Time slipped quietly into February 1973.

Hong Kong's winters are rarely bitterly cold, but the bleakness brought about by the economic downturn is becoming increasingly apparent.

After a brief adjustment at the end of 1972, the stock market surged wildly again in early 73, with the Hang Seng Index constantly breaking historical highs and the entire market immersed in an irrational frenzy.

However, in He Yuzhu's eyes, beneath this false prosperity, a deadly undercurrent had already formed, waiting only for the crucial crack to appear.

Tseung Kwan O, a secret oil depot.

The massive white, domed oil storage tanks, reflecting the dazzling sunlight, lined up along the newly opened coastline, creating an imposing sight.

The oil pipeline, like a resilient steel vein, extends from the newly built deep-water terminal all the way to the tank farm.

The air was filled with a strong, slightly sulfurous smell of crude oil.

Standing on the high platform of the newly built central control room, Xian Xingyao excitedly reported to He Yuzhu: "Boss, the first phase of the project, including 10 crude oil storage tanks with a capacity of 50,000 cubic meters each and 5 refined oil storage tanks with a capacity of 30,000 cubic meters each, has all completed pressure testing and pipeline commissioning! The terminal is now operating smoothly, with oil tankers berthing and unloading every day! As per your instructions, crude oil reserves are given priority, and the proportion of refined oil is controlled at around 30%. The current storage capacity has reached 60%!"

He Yuzhu looked down at the bustling dock area through the huge glass window, where a 10,000-ton oil tanker from the Middle East was pumping black crude oil onto the shore using its sturdy oil boom.

He nodded slightly: "Safety is of paramount importance. Fire prevention, static electricity prevention, leak prevention, and vandalism prevention—every step must be foolproof. As storage capacity increases, the risk factor also increases accordingly."

"Don't worry!" Xian Xingyao assured him, "Shi Bin has arranged for an elite company to be stationed here permanently, patrolling and guarding 24 hours a day, equipped with advanced equipment. The factory's technical backbone also takes turns on duty to monitor the system. The oil tanks are larger than civilian standards, with sufficient safety redundancy. We have also established a joint early warning mechanism with the fire department."

“Very good, this is just the beginning. Xingyao, the planning for the second phase of the project should be launched immediately, with the goal of doubling the total storage capacity. At the same time, we should study the design scheme for the small tanker transshipment terminal and shore-based refueling facilities. In the future, we will move from ‘storing oil’ to ‘selling oil’.”

Xian Xingyao's spirits lifted: "Understood. The second phase drawings are already being optimized. I will submit the plans for the small wharf and shore-based refueling within a week."

Kwai Chung Wharf, Yellow River Industrial Office.

He Yuxin rubbed his tired eyes and pushed a report in front of A Lang: "Brother Lang, last month's data is out. The losses have increased by nearly 20% compared to the previous month. Jardine Matheson's offer is simply suicidal; it can't even cover the basic costs of hoisting and storage! Right now, apart from the ships from Mr. Huo and Mr. He's side, plus our own bulk carrier fleet, we're barely maintaining minimum operations. Jardine Matheson has almost snatched up all our old customers."

Ah Lang took the report and glanced at it, his expression calm as ever: "The boss expected this. Kuiyong's appearance here is just a 'feint attack,' they have to keep going even if it means losing money. The more Yihe throws at them, the tighter their cash flow will become. You did the right thing, stabilized the situation, kept the accounts clear, and kept the employees calm and focused. Remember, right now it's a test of resilience, to see who can hold out the longest."

He Yuxin nodded, his young face displaying a composure beyond his years: "I understand, Brother Lang. It's just that seeing the accounts bleeding money every day is really hard to bear."

Ah Lang chuckled: "Block it? You'll understand when the table is overturned that every penny spent today makes Jardine Matheson bleed even more! Stay calm. How's it going with Lao Gu?"

Mentioning this, He Yuxin's eyes lit up: "Director Gu's side is going all out! The 'samples' have been thoroughly disassembled, and combined with the boss's core information, the progress is far beyond expectations! The newly modified 'Yellow River Warrior' chassis has seen huge improvements in strength, suspension, and wading performance. The weapon base and armor are fully prepared, and the first batch of prototypes has rolled off the production line and is undergoing extreme testing! The verification parts for the armored vehicle chassis are also being assembled, and the smelting formula for high-strength armor steel is becoming stable! There's still a way to go before mass production, but the technical path has been completely cleared!"

"Great!" A glint flashed in A Lang's eyes. "The agents of several major clients in the Middle East have already secretly contacted Lao Gu. They've seen the photos of the prototype and the preliminary parameters, and they're very interested! As soon as the test report is released, the first batch of orders can be finalized! 'Trading cars for oil'—that's the real start!"

The secret financial warfare room next to the He family villa.

Heavy curtains blocked out the outside light, while rows of terminals and large projectors, which were still considered "advanced equipment" at the time, emitted a faint blue light, and the air was filled with the smell of strong coffee mixed with paper ink.

Xiaoman stood in front of a huge Hong Kong stock market chart, which was densely marked with the candlestick charts of core British-owned companies such as Jardine Matheson, Jardine Land, Wharf Holdings, Swire, and Wheelock.

She quickly typed on the keyboard to retrieve the latest transaction data and shareholder holdings reports.

Behind him, a highly skilled financial analysis team is operating efficiently.

Bai Yifeng walked in silently and placed a sealed document next to Xiaoman: "Madam, the last batch of start-up funds reserved by the boss, totaling HKD 4.2 million, has been completely laundered and collected through multiple secure channels. The jewelry disposal is nearing completion, with HKD 6000 million recovered. The remaining fine pieces will be sold through legitimate auction houses. Our 'magazine' is fully loaded."

Xiaoman pulled out the statement and scanned it, confirming that everything was correct. A slight smile appeared on her lips: "Thank you for your hard work. This money will become the sharp blade that pierces the heart of Jardine Matheson."

She pointed to the projection screen, where Jardine Matheson's rocket-like stock chart, detached from fundamentals, was clearly visible: "Look! The price-to-earnings ratio has exceeded 80, and the price-to-book ratio is approaching 10! It's purely a bubble created by market frenzy and Jardine Matheson's self-promotion! And look at Wharf Holdings, as its core port asset, its stock price is also severely overvalued. Ironically, this gold mine is currently bleeding profusely due to a crazy price war!"

She used a laser pointer to mark key resistance areas and areas of high trading volume: "Chen Sheng's intelligence keeps confirming that Jardine Matheson has pledged all of its core properties and equity to support the cash-burning war in Kwai Chung and the false prosperity of the stock market! The leverage is high and the cash flow is on the verge of depletion! They are maintaining this illusion that could collapse at any time by incurring debt!"

Xiaoman's voice was clear and powerful: "Our goal is clear: we are just waiting for the 'east wind' to arrive! Once market panic spreads and liquidity dries up, that will be the time for us to launch! We will use our ammunition reserves to establish a large-scale short position in the futures market! At the same time, in the spot market, we will pinpoint key positions and apply precise and continuous pressure on core targets such as Jardine Matheson and Wharf Holdings! We will destroy market confidence, trigger their margin call levels, and destroy their financing capabilities! We will let this giant exhaust its last drop of blood in the chaos!"

She surveyed the team members in the operations room: "This is a silent yet extremely brutal war! We have the right timing (the stock market crash is imminent), the right location (ample ammunition), and the right people (accurate intelligence and a highly capable team)! The boss has already laid out his plans; this is the decisive battleground! Everyone, be fully alert, refine every contingency plan, and closely monitor every subtle pulse of the market!"

Inside the financial operations room, keyboards clattered, papers flew, and only the projector hummed softly.

A tremendous force, capable of overturning Hong Kong's financial landscape, is quietly waiting for its opportunity, ready to intervene and cause utter chaos.

Some in the Hong Kong stock market still hope for new highs, but those with a keen understanding can already smell the almost suffocating, oppressive atmosphere before an impending storm...

Early March 1973, Hong Kong.

After the Hang Seng Index climbed to a false peak of 1774.96 points at the beginning of the year, it showed signs of decline, but the fervor has not subsided, and speculators are still indulging in the delusion of "stock prices rising forever".

However, some in the market are already predicting its demise.

Friday, September 3st.

A bombshell announcement shattered everyone's illusions of a booming stock market!
"Breaking news! A large number of fake shares have been discovered in Hopewell Holdings!"

"Suspected large-scale fraud has prompted the China Securities Regulatory Commission to launch an emergency investigation!"

Hopson Development Holdings is one of the real estate giants controlled by Hu Zhong, a "legendary figure in the stock market," and a star stock among the "Five Tigers."

Counterfeit tickets have surfaced, shattering the foundation of trust in the market! Investors are gripped by panic and doubt!

Monday, April 3th.

The panic that had been building up among investors for several days erupted like a flash flood!
At the opening of the market, sell orders poured in like a flood, but those willing to take over were nowhere to be found.

The Hang Seng Index plummeted like a kite with its string cut!

The secret financial operations room of Yellow River Industry.

The air seemed to freeze, the sounds of keyboards and telephones mingling like a rapid war drumbeat. On the giant screen, the menacing downward "death line" reflected on every solemn yet excited face.

"Madam! The Hang Seng Index has plummeted by 5%!" The analyst's voice trembled slightly with tension and excitement.

Xiaoman stood on the command platform, her gaze like that of a hawk fixed on the intraday charts of Jardine Land and Wharf Holdings. Although both companies were plummeting along with the broader market, their declines were not yet out of control.

"The 'East Wind' has risen! 'Operation Dragon Slayer'—launched! Targets: Jardine Land and Wharf Holdings! Proceed with the planned steps...launch the attack!" Xiaoman's voice was as cold as a blade.

"Roger that!"

"implement!"

Instructions are transformed into precise operations in an instant!
Spot Market Battleground:

*First wave: Probing penetration. Multiple dispersed, well-disguised accounts begin to sell target stocks in small, continuous increments at prices slightly below market value. Like a fine awl probing a crack in a dam.

Panic intensifies, losses deepen! Selling pressure surges on two major British-owned stocks, instantly amplifying market panic! More panic selling and stop-loss orders emerge, causing Jardine Land and Wharf Holdings to rapidly widen the gap with the broader market in terms of declines.

*Second Wave: Targeted Explosion! Seeing the market move in line with expectations, Xiaoman ordered: "Increase the position! Lower the target price in one fell swoop, and let large orders break through the key support level! I want to see it collapse!"

Several heavy sell orders, far exceeding the market's immediate absorption capacity, struck Jardine Land and Wharf Holdings' key support price zones like precise armor-piercing bullets!
The weak buy orders on the order book evaporated instantly! The support level crumbled! A steep guillotine-like candlestick pattern was left on the candlestick chart!

"Jardine Land breaks the psychological barrier of HK$20!" "Wharf Holdings falls below HK$15!" The reports were filled with excitement.

*Third Wave: Avalanche! The collapse of support triggers a larger-scale panic sell-off and programmed stop-loss orders. The stock price is completely out of control, plummeting! Trading volume surges, with sell orders piling up like mountains and buy orders scarce, creating a terrifying "death volume."

Futures Battlefield:

Almost simultaneously, the powerful torrent of funds from the Yellow River had already built a massive 'short fortress' on Hang Seng Index futures and Jardine Matheson's stock futures.

The Hang Seng Index plummeted! Jardine Matheson Group stocks collapsed! The value of these short positions has snowballed!

"Short positions in the Hang Seng Index have seen a surge in profits!"

"Yard Estate futures are trading at a premium of over 30%!"

"Wharf Holdings futures premium exceeds 40%!" (*Note: Short selling profits are equivalent to premiums.*)

"Instruction: Partially close positions to lock in profits! Immediately inject a significant proportion of the profits into the spot account to replenish ammunition for a market crash! Establish positive feedback!" Xiaoman gave the order expressionlessly.

The massive profits harvested in the futures market were efficiently transformed into a hammer blow in the spot market, in a vicious cycle! This multi-pronged attack has pinned the Jardine Matheson Group firmly into a deep abyss of price collapse!
The top floor of Jardine Matheson headquarters.

Henry Keswick, furious, roared into the phone, “Hold on! Use all available reserves! Keep it up! Contact HSBC immediately! Standard Chartered! At any cost! I need the funds! Now!”

“Mr. Keswick…we…most of our cash is tied up in that hole in Kwai Chung…HSBC…says that the market risk is too great and they can’t cash it out immediately…further assessment is needed…” The CFO’s voice was full of despair.

"Assessment? Are we just waiting to die?! Tell them! Jardine Matheson's collapse is a disaster for everyone! And! Find out immediately who's behind this short selling! At all costs!" Keswick slammed down the phone receiver. Every cent the price of the company's core assets plummeted meant a sharp increase in pledge risk, and the possibility of a death knell ringing at any moment!
"He Fei...it must be him!" Keswick's eyes were bloodshot as he finally understood the depth of his opponent's meticulously planned and far-reaching deadly counterattack. This had far surpassed business competition; it was a complete financial hunt! And he himself seemed to be a trapped beast.

Yellow River Industry Operations Room.

On the screen, Jardine Matheson Holdings plunged 25%, and Wharf Holdings plummeted 28% and is still bleeding money. The Hang Seng Index's single-day drop was staggering.

"Madam, Jardine Matheson Land has triggered the pledge warning lines of several banks, and the banking sector is holding an emergency meeting," the intelligence officer reported urgently.

Xiaoman's lips curled into a cold smile, her gaze never leaving the projection for a moment.

She picked up the encrypted line: "Brother Zhu, the 'Dragon Slayer Sword' has already drawn blood, and Jardine Matheson is now severely weakened. The banks can't hold back any longer and are about to enter the fray. Should we... add fuel to the fire, or wait for it to spread?"

He Yuzhu's calm voice came through: "Take it easy, let the prey bleed a little longer. The bank is more eager to stop the bleeding than we are. Inform Ah Lang and Lao Gu that their stage is ready to begin. We will direct and we will also be the ones to bring this whole show to a close."

At the heart of the financial crisis, Jardine Matheson, a century-old behemoth, was caught in the intricate web of its adversaries and the raging waves of the market, its groans growing ever more piercing and shrill. Meanwhile, the composed hunter watched with narrowed eyes as his prey grew utterly exhausted.

As we entered mid-to-late March, panic, doubt, and loss of confidence spread rapidly throughout the Hong Kong market like a plague.

After the initial panic selling, investors' brief respite was quickly replaced by a deeper despair. As the investigation into the fake stock scandal deepened, more and more problematic companies surfaced, and market confidence collapsed.

Friday, March 16: Weekly closing.

恒生指数相比3月9日，短短一周腰斩超过35%。怡和置地相比高点暴跌超55%，九龙仓接近60%。

Jardine Matheson headquarters, top floor office.

The knock was cautious: "Mr. Keswick... Mr. Stevens from HSBC Credit Department... on the third line, urgent... regarding margin calls..."

Henry Keswick turned his head sharply, his ashen face revealing a barely concealed fear.

He grabbed the microphone: "Stevens! This is Keswick!"

“Mr. Keswick,” the HSBC credit chief’s voice was icy, “I must inform you that, given the market volatility and sharp decline over the past two weeks, especially the continued plunge in the share prices of Jardine Land and Wharf Holdings, the value of the assets pledged to our bank has shrunk significantly, far exceeding our risk mitigation bottom line.”

Keswick's heart sank into a cold abyss, and he nearly dropped the microphone in his hand.

"According to Clause 7.3 of the loan agreement and related supplementary terms," ​​Stevens stated officially, "your company must provide us with supplementary margin payments equivalent to no less than 50% of the current market value of the pledged collateral by next Wednesday (i.e., four full trading days later), or provide equivalent, unburdened, and readily disposable high-quality assets as additional collateral. The total amount must reach HK$345 million." (*Note: The amount may be lower than previously estimated due to the continued decline in share price.*)

One week! Nearly 350 million!
Keswick felt dizzy: "Stevens! Market panic is irrational! This is a temporary liquidity crisis! Jardine Matheson has a century of business reputation and a large amount of prime land and property..."

“Mr. Keswick,” Stevens said firmly, “this is a prudent decision made by the HSBC board of directors based on the substantial and ongoing risks that have materialized. One week is the final deadline. If your company fails to fulfill its supplementary obligations in full and on time, to ensure the safety of our credit, we will have no choice but to initiate enforcement proceedings against the pledged collateral in accordance with the contract. This is purely a business operation; your understanding and cooperation are appreciated.” He then hung up abruptly.

"Bang—crash!" Keswick could no longer contain himself and slammed the precious blue-and-white porcelain pen holder on his desk against the wall!

One week! 350 million! Jardine Matheson's money has already been poured into the bottomless abyss of Kwai Chung Wharf, with the sole aim of quickly strangling Yellow River Industries!

The meager temporary liquidity in the group's accounts is like a grain of sand thrown into the ocean compared to these numbers!

Banks have tightened credit amid their own crises; shareholders are panicking and trying to protect themselves; selling assets is a long-term solution but not an immediate one; even industry giants are struggling to survive!

"He Fei...!" He gritted his teeth, a strong, metallic taste rising in his throat.

What "weakness and concession"? The "price war" at Kwai Chung Pier is nothing more than a meticulously designed financial trap!

With this seemingly insignificant business loss, he drained all of Jardine Matheson's cash flow.

The real fatal blow had already been silently lurking in the very field he had once scorned.

"Immediately, gather all core team members, not a single one can be missing!" Keswick shouted almost roaring towards the door.

HSBC's ultimatum triggered a major upheaval within its senior management.

For several days in a row, arguments raged in the Jardine Matheson meeting room, with proposals being put forward only to be immediately rejected.

The self-rescue plan kept encountering harsh realities:

Asset sales: Amid market panic, buyers are scarce, inquiries are dismal, and high-quality assets are severely undervalued, far from being a lifeline.

Shareholder rescue: Instead of any help, panic spread, causing many small and medium-sized shareholders to rush to sell their shares and flee.

Bank lending: Banks have tightened risk control to the limit and are refusing to open the floodgates to high-risk exposures under such market conditions.

Related lending: Swire and Wheelock are also mired in difficulties and unable to help themselves.

A week passes like sand slipping through my fingers, lost in a frantic rush of activity.

March 21, Wednesday—the deadline.

Jardine Matheson was unable to raise the required amount of guarantee.

March 22, Thursday, market opens.

Rumors had already leaked to the market (the possibility of behind-the-scenes manipulation by Xiaoman's team cannot be ruled out). Investors had already anticipated the collapse of Jardine Matheson.

10:15 a.m.

A massive number of sell orders suddenly appeared!

These did not originate from scattered panic selling, but rather from the execution seats of specific large investment banks—specifically, HSBC's forced liquidation!

"Jardine Land - Market Order - 80 shares!"

"Wharf Holdings - Market Order - 60 shares!"

"Yard Estate continues to sell 55 shares!"

The cold, ruthless electronic commands fell heavily like a gavel declaring bankruptcy!

The initial glimmer of buying interest was instantly crushed. Price support was completely abandoned, and both Jardine Land and Wharf Holdings collapsed!

30%, 40%, 50%! (Compared to the previous closing price) A chilling vertical drop line appeared on the intraday chart!

HSBC's actions acted as a fuse, completely igniting a catastrophic chain reaction in the entire Jardine Matheson Group's stocks! Panic reached its peak, with sell-offs like a landslide and a tsunami! The Hang Seng Index plummeted by more than 12% in a single day! The exchange was almost suffocating, filled with utter despair.

The secret operations room of Yellow River Industry.

"Madam! HSBC has initiated forced liquidation!"

"Jardine Land's stock price collapsed instantly, with record-breaking transaction volume!"

"Wharf Holdings has broken through the circuit breaker threshold, which is now at a record low!"

The analyst watching the screen loudly relayed the battle situation.

Xiaoman stared at the two "decapitated" giant crocodiles on the projection screen, and a smile of victory finally appeared on her lips:

"Good! The fatal blow was delivered by HSBC!"

Her voice rose sharply:
"Execute 'Predator Plan'! Target: Wharf Holdings' circulating shares!"

"Spot Trading Team: All personnel on standby! Activate all pre-arranged accounts! Accumulate shares in a dispersed, small-scale, covert, and continuous manner, according to the original plan! Anchor the price at the current 'panic ruins zone'! Move slowly and steadily, without causing any disturbance! Futures Trading Team: Begin closing out short positions in the Jardine Matheson Group in batches, in an orderly and quiet manner. Immediately transfer 65% of the profits to the respective accumulation accounts! Intelligence Team: All monitoring devices online! Closely monitor any large abnormal trading orders and possible shareholding disclosures related to HSBC, Jardine Matheson, and all other brokerage firms!"

Instructions issued!

The massive capital, like a deep-sea monster with its jaws wide open at the bottom of an abyss, began to slowly and steadily devour the chips—Wharf Holdings shares—that had been indiscriminately abandoned due to panic and forced liquidation.

Then, small-scale purchases continued to flow into the market, leaving no trace, like spring rain sneaking in at night.

This dramatic financial turmoil did not end within three days.

It was a protracted battle that lasted for weeks!

With its vast cash reserves and precise intelligence, the Yellow River team patiently, resolutely, and unwaveringly executed its "predation plan" amidst a complex situation intertwined with persistent market panic and HSBC and Jardine Matheson's self-rescue efforts (such as temporarily selling a very small amount of emergency assets and failing to unite with other institutions to stabilize the stock price). Time passed slowly and agonizingly.

When the market showed the first faint signs of stabilization in early April, Xiaoman's team, through extremely complex account layout and trading arrangements, had quietly become one of the most influential shareholders in Wharf Holdings.

(End of this chapter)