But after confirming that these things were true, Liu Xiaobao immediately sold those stocks and exchanged them for real money.
Only after the real money was in his account did Liu Xiaobao begin to investigate the reason for the soaring stock price.
After some investigation, Liu Xiaobao finally came to a conclusion.
It turns out that all of this was caused by a single sentence from the head of Morgan Stanley International Funds in Hong Kong.
Morgan Stanley International Fund is a well-known international capital firm. The Hong Kong stock market wasn't originally open for 24-hour trading. It was precisely because of a positive review from Morgan Stanley International Fund that not only did it drive the Hang Seng Index to rise steadily, but it also ushered in a new 24-hour trading rule for the Hong Kong stock market, and caused it to enter a 'bull market'.
The recent surge in stock price was due to an announcement by the head of Morgan Stanley International Funds in Hong Kong that they would be bringing in more funds to invest in Hong Kong.
Once this major positive news was announced, almost all stocks listed on the Hong Kong Stock Exchange saw significant increases.
It's simply a matter of whether the price increases more or less.
It just so happens that the ten high-quality stocks that Liu Xiaobao bought fall into the category of those that have "risen the most".
After understanding the reason, Liu Xiaobao, whose net worth had skyrocketed, was not blinded by his newfound wealth.
He quickly realized that Morgan Stanley International's actions were likely more than just raising Hong Kong's stock price.
After all, although the Hong Kong stock price has increased, Morgan Stanley International Fund has not yet gained any substantial benefits. How could such a large fund do good deeds for no reason and not profit?
Those large financial groups aren't exactly saints; Liu Xiaobao's financial knowledge and intuition told him that Morgan Stanley International Fund must have some other reason for doing this.
Thinking about this, Liu Xiaobao was not overjoyed at making money; instead, he became even calmer.
Liu Xiaobao didn't even have time for dinner. After sending Su Jie to another room next door (2.9), he locked himself in room 666 and began to try hard to remember.
Since Hong Kong only returned to China in 1997, the Hong Kong stock market information mentioned in Liu Xiaobao's textbooks mostly refers to the period after 1997. As for the stock market situation before Hong Kong's return, it is only mentioned briefly and not in detail.
But Liu Xiaobao was certain that he had seen Morgan Stanley International Fund in finance books before, but he just couldn't remember it at the moment.
Therefore, after guessing that Morgan Stanley International Fund might be planning something big, Liu Xiaobao had to recall it as soon as possible.
Liu Xiaobao was thinking that if possible, he wanted to take advantage of Morgan Stanley International Fund to shorten his path to becoming a financial tycoon.
Chapter 77 Bao Zong Becomes Famous in the Hong Kong Music Scene (Please Subscribe)
People are strange sometimes; even when they have a clear memory of something, they find it vague and unclear when they try to recall it.
Liu Xiaobao is in this situation right now.
He was certain that he had once seen a passage in a finance or economics book that mentioned a connection between Morgan Stanley International Funds and the Hong Kong stock market, but he just couldn't remember it now.
But as the saying goes, nothing is impossible for a willing heart!
After a night of reflection, Liu Xiaobao finally remembered the matter concerning Morgan Stanley International Fund and the Hong Kong stock market.
In 1993, logically speaking, the political situation should have been very unfavorable for the Hong Kong stock market due to the deadlock in Sino-British negotiations.
However, the emergence of Morgan Stanley International Fund did not cause a severe decline in the Hong Kong stock market; instead, it propelled it into a bull market.
This even led to the introduction of 24-hour trading on the Hong Kong stock market, and the Hang Seng Index surged from 5,400 points at the beginning of the year to over 6,000 points.
Subsequently, Morgan Stanley International Funds publicly announced its investment in Hong Kong stocks, attracting more international funds to flock to the Hong Kong stock market. Coupled with the media's hype, this caused the stock market and the overall market index in Hong Kong to rise wildly.
By January 3, 1994, the Hong Kong stock market index had reached an all-time high of 12,000 points.
But all of this is illusory; the stock price has been artificially inflated.
The Hong Kong stock market index held at its historical high for only one day. On January 4, 1994, the market suddenly reversed course and continued to decline, with a drop of nearly 40% in just one day.
This caused extremely heavy losses to local Hong Kong stock market investors, making it a major stock market crash!
This sudden change, due to the guidance and operation of Morgan Stanley International Funds, was dubbed the 'Morgan Shake-up' by the financial world!
After recalling the text he had read, Liu Xiaobao immediately understood why Morgan Stanley International Fund had suddenly released such a message.
Morgan Stanley International Funds is starting to set things up!
They hype up the stock market, then enter to make money, and once they've made enough, they withdraw their investment and leave.
In fact, the way this scheme was set up is the same as Liu Xiaobao's "spreading everywhere" approach. The only difference is that Liu Xiaobao's scheme was smaller, while Morgan Stanley International's scheme was larger.
After understanding Morgan Stanley International Fund's purpose, Liu Xiaobao became extremely excited.
Now that he knows Morgan Stanley International's intentions, he can hitch a ride on their coattails and make money alongside them.
Although Liu Xiaobao was well aware that most of the money in the Hong Kong stock market came from local Hong Kong capital.
But the stock market is the capital market, and whoever has more capital can play it better. Even if Liu Xiaobao knows Morgan Stanley International Fund's intentions, he is powerless to stop them.
Because Liu Xiaobao currently lacks the resources to compete with Morgan Stanley International Fund.
Even if Liu Xiaobao were to report this matter to the Hong Kong government, let alone whether they would believe him, even if they did, the Hong Kong government is probably no match for the combined efforts of numerous international funds. In the end, government intervention might result in even greater losses.
So rather than watching Morgan Stanley International Funds rake in all the money, Liu Xiaobao might as well join in and get a share of the pie.
In this way, at least a portion of Hong Kong's capital can remain in Liu Xiaobao's hands, which can be considered as keeping this portion of capital in the mainland.
As for the Hong Kong stock market investors who are about to suffer, Liu Xiaobao has no pity for them whatsoever, nor does he feel any guilt whatsoever.
After all, everyone should know that the stock market is a capital market with huge risks.
If Hong Kong stock market investors want to make money in the stock market, they should also consider the risks. If they don't dream of getting rich in the stock market, they don't have to bear this risk.
Therefore, to put it bluntly, all of this is the result of the stock market investors' own actions.
Strictly speaking, this may not be all bad for them. Only after suffering a major setback in the stock market will they be able to approach stock trading with more maturity and caution in the future.
Liu Xiaobao understood this point, which is why he had no psychological burden.
But now was not the time for Liu Xiaobao to ponder these things. After figuring out what would happen next, he immediately checked his trading account.
This sudden surge in Hong Kong stock prices earned Liu Xiaobao over 130 million, and with his initial investment of 100 million, he now has a total of 235.8 million in his trading account.
Looking at the amount, Liu Xiaobao couldn't help but smile and mutter to himself.
"With this capital, even if we can't eat meat this time, we can at least have a sip of soup."
This time, Liu Xiaobao didn't touch the small change in his account. Now that he had a goal, the more principal he had, the more he could earn back.
So Liu Xiaobao didn't touch a single penny inside; he left it all in the account as principal.
Having figured out how much capital he had, Liu Xiaobao didn't think too much about it. He hadn't slept all night and now needed a good night's sleep so he could wake up in top mental condition and then study Morgan Stanley International Fund's investment strategy.
Liu Xiaobao slept for the entire day, and when he woke up it was already eight o'clock in the evening.
However, he did not feel uncomfortable from the reversed day and night; on the contrary, he had more energy than usual.
Because Liu Xiaobao now has a big goal, which is incredibly exciting for him, a finance student.
What Liu Xiaobao didn't know was that today, he became famous in the Hong Kong music scene.
The reason is precisely because of the three songs he gave to Vivian Chow.
Originally, Liu Xiaobao simply wanted to dedicate those three songs to Zhou Huimin, and he had mentioned to Zhou Huimin that she could be credited as both composer and lyricist.
However, Zhou Huimin did not want to take credit for others' work, so she did not do as Liu Xiaobao said, but instead filled in the name of "Boss Bao" for the composer and lyricist of those three songs.
Now, with the release of Vivian Chow's new album, these three songs she sang have become popular.
Once a song becomes popular, people naturally start paying attention to the composer and lyricist.
So today, thanks to an article by an entertainment reporter, the entire Hong Kong music scene has started asking who this talented "Boss Bao" is.
It was only thanks to Zhou Huimin's consideration that Liu Xiaobao was not in the entertainment industry that she intentionally kept his identity a secret, so as not to affect his daily life. That's why she only filled in the two words "Boss Bao".
If Vivian Chow had filled in the name "Liu Xiaobao," people might have been able to find the Peninsula Hotel directly and come there to find him, Liu Xiaobao.
However, Liu Xiaobao was completely unaware of this matter. After eating something, he focused on studying the stocks in the entire Hong Kong stock market.
Chapter 78 Earning 1.8 Billion (Please Subscribe)
Liu Xiaobao's efforts were not in vain.
With the support of his professional financial knowledge, Liu Xiaobao observed for a day and two nights and actually found an unusual stock in the vast Hong Kong stock market.
To be precise, in the current market where almost all stocks are rising, Liu Xiaobao has identified a total of twelve stocks with particularly strong upward momentum.
It's not that these twelve stocks rose particularly sharply, but rather that their rise was unusually slow.
These twelve stocks are inherently rising stocks, but in the current market where almost all stocks are soaring, these twelve stocks are rising very slowly.
Among these twelve stocks, one has a particularly strange price fluctuation.
This stock would rise by one dollar and then fall by six or seven cents, then rise by one dollar again and fall by six or seven cents again, repeating this cycle over and over. However, the stock price would eventually be higher than the original price, and overall it was still on an upward trend.
If you're not careful, you might not notice anything unusual about this stock in a market where the whole market is rising, since it's also rising, just a little slower.
But after a day and two nights of careful observation, Liu Xiaobao discovered this particular stock.
Upon discovering this stock, Liu Xiaobao was overjoyed and excitedly began to mutter to himself.
"What a brilliant tactic! Buy low, sell high, then buy low and sell high again – it's a relentless drain on resources! Only a massive amount of capital backing someone up would dare to do this. The other eleven stocks are just for show, a cover. Only this one is Morgan Stanley International's real target right now."
After seeing through Morgan Stanley International Fund's intentions, Liu Xiaobao, who hadn't slept for a day and two nights, not only felt no sleepiness, but was actually full of energy.
After eating something and taking a cold shower, Liu Xiaobao sat down in front of the computer, feeling refreshed.
Then, when the stock he had picked dropped another six cents, he invested all his money without the slightest hesitation.
At that time, the stock price was 27.83 yuan, and Liu Xiaobao bought a total of 8.47 million shares with 235.8 million yuan.
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