Lin Zhiyuan agreed, saying, "Due to the rise in the Hang Seng Index, international hedge funds have already suffered huge losses on their short-selling orders that were bought at low prices. If they do not continue to suppress the Hang Seng Index, their stock holdings in August will have to be settled at a loss."
Anne sighed. "So, international hedge funds will eventually have to fight us to the death."
After saying that, she looked at Chen Dong with concern, "Although we had prepared enough funds to support the market, if Soros borrows shares from the major shareholders and banks now, it will undoubtedly increase their leverage. In contrast, the amount of funds we have prepared will not be enough."
Chen Dong's face was dark, and his eyes seemed to have fallen into darkness. "In the face of absolute strength, no strategy will be effective."
"With less than a week left, the only strategy they can employ is to sell off their holdings frantically. They sell, and we have no choice but to buy."
Just then, Ma Guoliang's assistant knocked on the office door and entered, saying, "The Financial Regulatory Bureau is calling."
"What they mean is that if our offshore company needs to access the stabilization funds, we can apply to the Monetary Authority for a loan at any time."
“They said that the Chief Executive of the Hong Kong Monetary Authority, Mr. Du, had applied for an emergency channel for us, and if we wanted to borrow money from them, the funds would arrive in just one hour.”
Upon hearing this, Ma Guoliang and Wangcai clenched their fists, while Lin Zhiyuan couldn't hold back any longer and cursed, "These bastards!"
"What a cunning schemer!"
"So, after we've been working so hard to support their market, we now have to give them money, pay a deposit to the Hong Kong Monetary Authority, and be responsible for the interest rate on this loan!"
Anne, who has always been calm and collected, said directly after hearing the Hong Kong Monetary Authority's reply: "This is not just a case of the dog biting Lü Dongbin, it's a case of the dog biting Lü Dongbin and then robbing his house, and even complaining that we don't have money."
Chen Dong did not expect that the Hong Kong Monetary Authority would not only fail to introduce relevant policies to restrict stock market trading, but would also deliver such a heavy blow to them. "The Hong Kong government has too many concerns, and perhaps it really cannot help us on the surface."
Even now, the big boss is still speaking up for them. Ma Guoliang and Wangcai rolled their eyes and stopped talking, lest they utter any vulgar words.
“The interbank lending rate is too high. Borrowing from the Hong Kong Monetary Authority is not a good solution.” Chen Dong gave a wry smile. “It seems we’ve been fooled by the Hong Kong government.”
When the market opened on the 28th, Chen Dong no longer pinned his hopes on the Hong Kong Monetary Authority. Looking at the constantly fluctuating points on the screen, he issued an order to all traders: "Buy!"
First, the index plummeted, then buying interest emerged, and the Hang Seng Index started to jump upwards, from 8677 to 8688 and then to 8700!
Bulls and bears clashed, with international hedge funds selling off aggressively, while Chen Dong and his team snapped up all the large sell orders across the internet.
Numbers are like clarion calls.
In just one morning, the traders' voices were hoarse from shouting and trading.
Chen Dong methodically directed the offshore company, Longteng's securities company, and the brokerage firms and securities companies that cooperated with them to continuously process the sell orders.
The Hang Seng Index was caught in a tug-of-war between bulls and bears, resulting in a jagged, sawtooth pattern, much like a tug-of-war where neither side would give an inch. By the afternoon close, the index had settled at 8800.
Overall, the index rose by nearly 200 points, giving Chen Dong's side a slight edge.
During the midday break, Wangcai began quoting prices: "We have completed a transaction of HK$3 billion in HSBC Holdings, acquiring a total of 3.4% of the shares."
Ma Guoliang then added, "McDonald's Properties acquired HK$4 billion worth of shares, representing a 2.9% stake."
Unlike the cautious short sellers, Chen Dong and his group, as long sellers, were completely uninhibited.
This is because if international hedge funds drive the price down too low, but international speculative capital does not push the index down to the ideal level as they expect, it means that short sellers will have to close their positions at an even lower price, which increases the cost of averaging down.
Therefore, for Soros, every time they offer a low price, it is not random, but rather the result of rigorous calculation.
After a long day, all the traders at the offshore company were numb. Even when it was time to leave work, they sat blankly at their posts.
This is the first time in their professional careers that they have made so many trades in half a day.
After Wangcai and Ma Guoliang finished their report, Chen Dong quickly organized the information they had submitted and then said, "In other words, this morning alone, we spent nearly HK$7 billion just to take over the shares sold by international hedge funds."
Wangcai and Ma Guoliang looked at each other in silence. This was only the situation in the morning; there was still the afternoon opening.
After the previous upheavals, most retail investors in the Hong Kong stock market have long since fled the battlefield. Those still struggling are just the two major players battling it out.
However, the current situation is that while international hedge funds can seek help from financial tycoons, wealthy individuals, and major shareholders both domestically and internationally, their offshore companies currently lack both official protection and external capital injection, relying entirely on their own accumulated funds to stay afloat.
Soon, when the afternoon trading session began, international speculators went into a frenzy.
The number of sell orders they placed was twice that of the morning. Even if all the traders at the offshore company bought blindly without considering the price, each person only had two hands, and even if they could absorb one sell order every three minutes, it would still take time.
The Soros Group has invested an unknown amount of manpower and financial resources, and the Hang Seng Index has fallen out of control.
At the critical moment, Chen Dong ordered: "Put all short positions on the market!"
Although the traders had doubts about Chen Dong's instructions, they dared not object. They were like soldiers on a battlefield, forced to obey their superiors' orders unconditionally.
Wangcai and Ma Guoliang whispered to each other, "We spent too much money today. Does the boss want to sell short orders? Does that mean he's giving up on supporting the market?"
Ma Guoliang shook his head.
At 3 p.m., 20,000 short orders suddenly appeared on the stock market.
Soros was taken aback. "What's going on? What kind of tactic is this?"
"The other side is using short selling orders to raise the white flag and surrender?"
Soros also specifically confirmed with several analysts to confirm that it was not a short-selling order from international speculators.
“It seems they’re deliberately trying to test our limits,” Robertson said nervously. “It’s best not to make any rash moves at this time.”
Soros gritted his teeth and ordered his traders, "Don't move for now."
At 3:05, both the bulls and bears disappeared simultaneously.
This bizarre scene left many people baffled.
......
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