Reborn in America, I'm serious about making money.
Chapter 158 The Decline Begins
As the saying goes, "ducks are the first to know when the river warms in spring." These ducks are neither ordinary citizens nor those frenzied property speculators.
Zhang San, who is setting up internet companies in North America, is not too concerned about the billions or tens of billions of dollars in internet companies. It's not that they are unimportant, but rather that it is an inevitable trend. His indifference does not mean they are unimportant, and it is an unavoidable tide. As long as they are not too bad, they will all go public.
Moreover, those Wall Street elites are more concerned with these companies' listing plans. He, on the other hand, is more interested in Hong Kong properties, his multi-billion Hong Kong dollar holdings.
Moreover, he is the duck that can best sense changes in water temperature.
As we move into the second half of the year, data shows that the number of houses sold is declining.
Most ordinary citizens feel that buying a house is becoming increasingly difficult, and prices have risen too sharply. This is not just their opinion, but also the recent transaction prices.
Zhang San felt that under these circumstances, by the end of this year, all these houses would probably be stuck in his hands, and he would have to wait for the next cycle, which would be ten years.
However, another thing gave Zhang San an idea.
By June, Xiangjiang Lianxiang's share price had dropped to HK$0.29 per share. When it was listed, the share price was HK$2.32, which was a terrible drop.
Wing On Securities, the Hong Kong branch of Golden Globe Financial Group, has acquired a 23% stake through various means at a cost of HK$0.41 per share.
Some of these shares were obtained through short selling; currently, on the Hong Kong stock market, some people are secretly negotiating with existing shareholders to buy more shares.
No one knows when these short sellers started shorting the stock, but the number of shares they need accounts for more than 11% of the total shares.
At this time, the shareholders of Hong Kong Lianxiang were eager to sell their shares because Hong Kong Lianxiang and Mainland Lianxiang were not the same thing at all. The two companies had different performances, one generating huge profits and the other losing money year after year. They were naturally incomparable.
Now that someone wants to buy their shares to liquidate their positions, this presents them with an opportunity.
"The current share price is HK$0.29. If you offer HK$0.5, I will sell it to you."
Given the opportunity to raise the price, no one was willing to give it up; everyone was shrewd enough to know better. Perhaps they were truly desperate, or for other reasons, the other party still accepted the price.
From the faces of the short sellers, everyone could see the expressions of those who were cutting their losses. Although they had made some money, this was not the way to spend it.
"We still need 3.72% of the shares, which we can only buy back from the stock market."
These were the words of the short sellers at the time, but these words also spread to the stock market. Originally, short selling is a very secretive business. Under normal circumstances, the lender should keep it confidential, and the short seller would not spread these things around.
But then the news got out that someone was just 3.72% short of liquidating their position, and at that moment, Xiangjiang Lianxiang's stock price rose.
It has risen to HK$0.33, an increase of more than 10%. It can be said that the situation has suddenly changed, and those who hold shares are thinking about selling at a higher price.
Since the price has already risen, it won't be easy to buy now, and short sellers can only negotiate agreements with lenders.
"We don't want to drive up the stock price, which would only benefit retail investors. We are willing to pay a high price to terminate this contract."
Upon hearing that the lender wanted to terminate the contract amicably, the lender naturally agreed, saying, "HK$0.6 per share, no discussion below that price."
"Ah!" After the initial shock, they had no choice but to compromise. Acquiring the shares through the stock market might cause significant stock price fluctuations, allowing the lender to demand exorbitant prices.
Thus, the short sellers completed the agreement and gave back some of their profits from short selling. Although their profits were significantly reduced, it did not change the fact that they were still profitable.
"Sir, the mission is complete."
"These profits are all yours. Go on vacation. Congratulations."
After the other party hung up the phone, the short-selling team became excited. There were four of them in total, and this operation had earned them nearly eight million Hong Kong dollars. If it weren't for the later reversal, they could have made over ten million Hong Kong dollars. Eight million Hong Kong dollars is still a good amount, considering there were only four of them.
The principal was obtained through a loan. After deducting interest, they still had more than seven million Hong Kong dollars. After dividing the money, the four of them went on vacation to a place they had long wanted to visit.
Of course, it's impossible to go alone.
Shortly afterward, Lianxiang from the mainland invested in Lianxiang in Hong Kong, transferring Lianxiang's profitable projects, such as computer production, to Lianxiang in Hong Kong free of charge.
This action truly shocked Zhang San; he never imagined such a thing existed.
It turns out that reality is even more astonishing than fiction. As for how he persuaded the person in actual control, Zhang San didn't know and didn't want to know.
Yongan Securities, Yongan Insurance, and Yongan Fund hold a total of 26.21% of Xiangjiang Lianxiang's shares. Initially, the investment departments of these three companies were puzzled as to why senior management was issuing such an imperative order for them to buy Xiangjiang Lianxiang's shares. They were somewhat suspicious, but after Lianxiang injected high-quality assets into them free of charge, they were still perplexed.
It can only be said that information from higher-ups is not something all of them, these high-level employees, know.
After the injection of high-quality assets, Xiangjiang Lianxiang began its comeback.
The idea came from finding a small company that could be used as a shell company, and then injecting high-quality assets to quickly complete the listing process and increase the value of the stock.
Originally, Zhang San could have gone public directly, but that would have been too slow, and the stock also had other restrictions, so he couldn't cash out immediately.
But things are different now. You can directly use a backdoor listing, issue shares, quickly list these assets, and then cash out and leave next year.
After having this idea, Zhang San found it increasingly feasible.
We can no longer use Lihua Group as a shell company; we need to rest and recuperate before we can sell it next year.
Such shell companies are quite easy to find in Hong Kong. Zhang San set his sights on a small company and naturally waited to first acquire the scattered shares, then find the major shareholder to take over the shares, then start injecting assets, then raise the stock price, and then sell the shares he held, while reducing his holdings and raising funds.
This is much better than selling a house, and stocks can be cashed out quickly, unlike the real estate market where so many people can't possibly come up with the cash for a house all at once.
But stocks don't have this problem; as long as you hype them up, there will be no gullible investors who will fall for it.
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