Chapter 433 The Short Selling Plan!



Some people might think that Chen Dong is making a mountain out of a molehill.

No! Quite the opposite.

He did this not only to vent his anger on his elder sister and Zhou Huimin, but also to send a warning to others.

The car accident appeared to be an accident.

But what kind of chemical reaction will occur if Chen Dong does not take action and allows Ouyang Ming's plan to take the blame to succeed?

Those who know the truth will think, "Chen Dong is no good, he's just a paper tiger, he can't even protect the people around him."

Believe it or not, once such remarks get out, those who already have leverage over Chen Dong in their conflicts will start to focus their efforts on this.

It's likely that by then it won't be someone close to Chen Dong who gets into trouble, but Chen Dong himself.

High-level players have their own way of playing.

It's rare to hear of wealthy people hiring someone to commit murder when conflicts arise.

Because once the rules are broken, everyone feels insecure.

Imagine, if billionaire A can't compete with billionaire B, he spends a sum of money to have billionaire B killed, and then he acquires billionaire B's company. If all billionaires did this, wouldn't the whole society be in chaos?

Therefore, although Chen Dong's retaliatory approach might give the impression of arrogance, it is undeniably the most effective way to fight back.

If anyone wants to do anything malicious to him or those around him, they should first consider whether they will face Chen Dong's furious retaliation if they fail to kill him.

However, Chen Dong wasn't foolish enough to try and kill the other party with real money. Using such a reckless method would not only fail to deter them, but would also be seen as idiotic.

The correct approach is to both destroy the other party and take over their company.

The infamous Muddy Waters and Citron Research, who became notorious in later generations, were among the best examples of this.

These two companies are also globally renowned short-selling firms. They target companies with problems and, through research and on-site investigations, uncover the true nature of these problematic companies, revealing issues in their operations, such as whether they have shell companies, false contracts, invoices, and especially financial problems.

Afterwards, this information was compiled and distributed in the form of research reports. They then collaborated with hedge funds to short the company's stock, thereby profiting from the transaction.

In the later stages, as the two companies became increasingly well-known in the industry, regardless of whether the listed companies actually had problems, once these two companies spread short-selling rumors, it would inevitably cause huge market fluctuations.

Listed companies targeted by Muddy Waters and Citron Research may see their stock prices halved or even face bankruptcy.

In fact, when collaborating with hedge funds, they don't even have to pay out of their own pockets; many hedge funds are eager to work with them.

What Chen Dong needed to do was to emulate the two companies and create negative news about Ouyang Group's financial fraud and the sale of substandard products.

certainly!

The smart thing to do is to both suppress and profit from it.

This requires shorting the other party's stock.

In short, by using leverage, they first borrowed a large number of shares of Ouyang Group from a brokerage firm, and then, in conjunction with negative news in the media, they sold off a portion of their shares.

Remember, only a part.

This brings us to the psychological game.

Anyone who has traded stocks knows that if you own a stock and negative news suddenly emerges about it, a truly knowledgeable investor will sell it at that moment to prevent any unforeseen circumstances.

In real life, the vast majority of stock market investors cannot understand the news.

What are the positive, neutral, and negative factors?

These messages were nothing to them.

It was nowhere near as shocking as a stock price crash.

What Chen Dong needs to do is first dump a large number of shares, and then, in conjunction with media reports, solidify the negative news about Ouyang Group, causing the stock price to fall.

At this time, when the stock price falls, investors will rush to sell their shares, further driving down the price.

This is what we often call panic selling.

Once panic selling occurs, the stock price is not far from collapsing.

As stock prices continued to fall, even those who had initially intended to remain inactive were forced to sell at a loss, because if they didn't, their shares might become worthless.

This is the most crucial moment.

Chen Dong threw out his last chips all at once.

But doing this still won't make you money.

Finally, you buy back the stocks that have fallen to rock-bottom prices; only then can you complete a short-selling operation.

It sounds simple, but it's incredibly difficult to actually do.

We need to consider not only human nature, but also the reaction of the Ouyang family. They're not stupid; of course they'll retaliate.

On the third day of the plan, Xiang Huaqiang began to take action.

8 a.m.

It was the morning rush hour in Hong Kong.

On buses and subways, almost every office worker has a newspaper in hand.

In dessert shops and breakfast stalls, people enjoy morning tea and snacks while reading the news in the newspaper.

Some people might wonder, do so many people read newspapers?

Yes, there really is!

Hong Kong is a magical place.

Because of the wealth gap, people living here are very prone to gambling.

You can often see mahjong and horse racing in Hong Kong movies.

In reality, the Hang Seng Stock Exchange is the place that everyone pays attention to.

The vegetable vendors, the sweepers, the white-collar ladies, and even the gangsters who frequent the streets will all buy a copy of the day's newspaper.

Horse racing news and financial daily newspapers are almost ubiquitous.

Newspapers are one of the important ways for people to learn about finance and economics.

At the same time, everyone who saw the newspaper stared wide-eyed.

Ouyang Family Jewelry sells counterfeit Rolex watches...

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