Neither brokerage firms nor traditional investment companies disclose their operating methods, and Chen Dong was already mentally prepared for this.
"Buying heavyweight stocks is simply about maximizing profits in the stock market by optimizing the asset structure of the shares," Chen Dong said.
“The sell-off of heavyweight stocks can easily trigger a herding effect. At this time, international speculators and international financial giants, including third-party short-selling forces, as well as Hong Kong investment banks, the Hong Kong Monetary Authority, and the Financial Secretary, will all give feedback based on the market’s reaction.”
Following the Southeast Asian crisis, Hong Kong government agencies have become more cautious when dealing with the Soros Group.
After learning their lesson, retail investors are now more rational in their trading.
Lin Zhiyuan analyzed, "If the market is bullish, they will naturally buy more."
"But when faced with a falling stock market index and a sluggish stock market, even the most experienced analysts can make wrong judgments."
This is what Chen Dong is most worried about. Once the herd effect takes hold, Soros' hedge fund can achieve great results with minimal effort.
The tens of millions of shares of heavyweight stocks prepared by Tiger Global Management are bait to lure speculators and short-selling institutions from these countries to take action.
"The sell-off of heavyweight stocks will inevitably lead to a stock market decline. At this time, establishing a short position is a sure way to make money," Chen Dong said.
"Therefore, once someone in the stock market systematically and massively sells off heavyweight stocks, international speculative capital will immediately rush into the short market and establish sufficient positions in a short period of time."
With cold sweat dripping down his face, Ma Guoliang said worriedly, "Under these circumstances, if the Hong Kong Monetary Authority wants to support the Hong Kong stock market, it will inevitably have to take the opposite approach to Tiger Fund."
"Increase the weighting of corresponding stocks, and adjust the portfolio according to the actions of the counterparties."
At this point, Lin Zhiyuan sneered, "That's precisely the difficulty. Nobody will disclose their investment portfolio unless they hate money."
Although there are huge differences between the various sectors of the stock market, they actually influence each other, and the rise and fall of the Hong Kong dollar directly affects the prices of other futures.
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