Hearing this, Xiang Feng said with some shame, "This was the decision of Teacher Delimu and Cyber; they are partners in the company."
"Furthermore, the other partners at Asia Travel Capital have also set their sights on the international hedge funds behind Soros."
Xiang Feng said somewhat defiantly, "As long as Soros can help our Asia Travel Capital get out of its predicament, we don't care whether he goes long or short on us."
Chen Dong asked curiously, "What difficulties is Asia Travel Capital facing right now?"
"Have you forgotten that Asia Travel Capital is an investment company in Southeast Asia?" Xiang Feng sneered.
"Soros caused a stir in Southeast Asia, and our Asia Travel Company's assets shrank by one-third."
"Later, the Soros Group extended an olive branch to us, saying that as long as we cooperated with international hedge funds to speculate on gold in Southeast Asia, they would definitely help Asian investment banks weather the crisis."
"With its capital rooted in Southeast Asia, Asia Travel cannot remain unaffected by the financial crisis."
When Soros attacked the Southeast Asian currency markets, the governments of Southeast Asian countries were struggling to survive, and many factories and banks went bankrupt.
Although Asian investment banks escaped a disaster, their previous investment style has always focused on investing in industrial enterprises.
Therefore, once Southeast Asian currencies depreciate, the assets of industrial enterprises shrink instantly, and as investors, their losses have far exceeded what they can bear.
If it weren't for the Asian investment bank's long-standing presence and the assets it had acquired in Southeast Asia, they would have gone bankrupt just like those other investment institutions.
After Xiang Feng explained Asia Travel Capital's situation, Chen Dong stated his position:
"I don't know what role Asia Travel Capital will play in our future battles against Soros' international hedge fund, but as a former partner..."
Chen Dong sighed and said, "I want to remind you that Hong Kong is a special administrative region of China, and our stance is to firmly stand on the side of Hong Kong."
Xiang Feng looked at him and couldn't help but become wary. "Did you call me here today to persuade us to stop?"
No, that's not true.
"I want to remind you of something, for the sake of our past close partnership."
Chen Dong became serious and spoke in a calm tone, "Chinese enterprises and overseas Chinese-funded institutions are currently joining forces to fight against Soros. If you don't withdraw from the Hong Kong market now, you may lose everything."
"Furthermore, as far as I know, Asia Travel Capital had already sold off all of its marginal stocks yesterday."
As for the heavyweight stocks, because they had an agreement with Soros, in order not to affect the overall market, the Asian travel company could only sell marginal stocks.
Only insiders know about this.
Just as Xiang Feng was beginning to have doubts, Chen Dong continued, "If you continue to short sell, what benefits will Soros offer you?"
Xiang Feng hesitated for a moment, then said directly to Chen Dong, "The Asian tour is facing a severe shortage of working capital. Soros promised us that after completing the attack on Hong Kong stocks, he would provide us with a large amount of cash flow."
"Is this the condition that Delimu is after?" Chen Dong asked incredulously.
It's ridiculous that the largest investment firm in Southeast Asia could be attracted by Soros's cash flow.
“The assets of Asian investment banks have shrunk drastically. Now we have assets but no cash flow. If the situation continues to deteriorate, we may not even be able to support the normal operation of the company,” Xiang Feng said with concern.
Chen Dong frowned and asked him, "Why don't you borrow short-term working capital from the mainland and issue new shares to all shareholders?"
"Issuing new shares?" Xiang Feng was stunned for a moment. "You mean, raising funds for a rights issue?"
Chen Dong nodded. "This operation can change the shareholder structure within Asia Travel Capital to some extent, while increasing stock and capital liquidity."
Issuing new shares means diluting the shareholding of all shareholders. Shareholders with capital can maintain their original shareholding ratio by purchasing new shares.
Shareholders without surplus capital will have their shareholdings diluted.
“Professor Delimu did consider this decision before, but it was rejected by Cyber,” Xiang Feng explained.
Hearing this, Chen Dong was even more puzzled. Although Cyber was a partner at Asia Travel Capital, he hadn't been there for very long.
"He raised a counterargument. Do the other partners in the company agree with his point of view?"
Xiang Feng explained helplessly, "Cyber has a good relationship with Yellow River Capital. He worked with Soros for a period of time and can be considered Soros's half-disciple."
"Furthermore, Cyber is exceptionally capable, and international speculative investors trust him greatly. Cyber has a tremendous appeal to international speculative investors."
The partners at Asia Travel must have recognized his abilities and his strong influence in international financing, which is why they made an exception and made him a partner.
Chen Dong coldly analyzed the current situation for him: "Soros's international hedge fund is now focusing all its efforts on dealing with Hong Kong stocks and attacking the Hong Kong dollar market."
"Asia Travel Capital is just a front man for Soros's hedge fund. Do you think Soros would help a front man through a crisis?"
Xiang Feng shook his head directly.
He never believed in Soros, but Derim insisted that he follow Soros's lead, so he had no choice but to comply.
“Judging from the current situation of Soros’s market manipulation,” Chen Dong looked at Xiang Feng and carefully analyzed for him, “their attack on the Hong Kong dollar market will continue for at least another month and a half.”
"But right now, in order to cooperate with Soles's actions, Asia Travel Capital cannot sell its short-selling orders and can only sell some marginal heavyweight stocks to supplement its cash flow."
"In less than half a month, Asia Travel Capital will be unable to hold on."
Xiang Feng hung his head dejectedly. "The senior management of the Asian tour is also particularly worried about this, but Soros's focus is currently on the Hong Kong market, and they don't have the energy to help Asian investment banks and capital."
At this point, Chen Dong slightly curled the corners of his mouth and asked, "What if Asia Travel Capital sells all its short positions now?"
Xiang Feng waved his hand, "According to our agreement with Soros, Asia Travel Capital must fully cooperate with the business operations of Soros' hedge fund."
"In other words, we cannot arbitrarily move this short position without Soros's instructions."
Stock market manipulation has always been a gray area, unless there is a clear contractual agreement between them...
In other words, it would be illegal for Soros to restrict Asian investment banks from manipulating the stock market through contracts.
......
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