Securities firms will also calculate the market value based on the number of shares and the price per share, and then lend money to shareholders who have pledged their shares at a discount.
When the pledge period expires, the shareholders who pledged the shares will use the money and a certain amount of interest to redeem those shares.
What Chen Dong needs to do is short selling securities.
It is the exact opposite of a pledge.
He mortgaged real money to the securities company and then borrowed shares of certain companies from the securities company.
Then, he sold all the borrowed shares on the stock market.
Once the stock market falls, buy back all the borrowed shares at an even lower price.
Finally, all these stocks are returned to the securities company, along with the corresponding interest; this is called securities lending.
To put it bluntly.
Whether it's margin trading or securities lending, accurate judgment of market conditions is essential.
If you go in the wrong direction, you will not only fail to make money, but you will also lose a lot of money.
"Borrowed HK$200 million worth of stocks from these four securities firms respectively."
"Of the remaining HK$200 million, half will be used to buy stock index futures put options, and the other half will be used to buy the appreciation rate of the Japanese yen against the US dollar."
The words had barely left his mouth.
The group looked at each other in bewilderment.
Immediately afterwards, a young man jumped out, stood in front of Chen Dong, and loudly questioned him.
"Mr. Chen Dong, let's put aside whether your arrangement is reasonable or not."
"What makes you think that the stock market in island nations will decline?"
"And what makes you think that the yen will appreciate against the dollar?"
"Are these just your guesses, or are there any data to support them? If there is data to support them, please show it to me."
"Furthermore, if you make a wrong judgment, who will be responsible for the resulting losses?"
The young man spoke at length with great pride, and seeing Chen Dong's astonished expression, he felt that he had reached the pinnacle of his life.
Upon hearing this...
Chen Dong was stunned.
No, it should be said that everyone present was stunned.
Some people shook their heads inwardly, while others watched the spectacle with amusement.
Chen Dong asked with a forced laugh, his anger turning into a mocking one.
"May I have your name?"
"Wu Qian!"
Upon hearing this, the young man practically wore his pride on his face.
He did this intentionally, of course.
He wanted to embarrass Chen Dong in front of everyone.
What a load of crap, God of war! Bah!
However, just a second later, Chen Dong's next words caused his expression to change drastically.
"Sleeping Dragon".
"Boss, I'm here."
"Throw this toothpick away. I don't want to see it here again."
"Okay, boss."
To everyone's astonishment, Wolong took three steps in two, quickly approached Wu Qian, and lifted him up like a chick.
In an instant.
A bloodcurdling scream, like a pig being slaughtered, rang out.
Wu Qian's face was filled with terror as he screamed.
"You, you, you can't do this! I was sent by HSBC! You have no right to treat me like this!"
"So noisy!"
"Wolong, if this idiot dares to say another word, break his legs."
"Yes, sir."
The sound of Wolong gradually faded into the distance.
Inside the room.
Silent as a cicada in winter!
Everyone stared in disbelief at the enraged Chen Dong, unable to utter a single word.
......
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