At the same time.
Inside the offshore company.
"Boss, we borrowed a total of 5 million shares from the brokerage firm, which accounts for 4.99% of the total stock."
"Currently, excluding major shareholders and pledged shares, the shares that are actually in circulation account for 33% of the total shares."
Wangcai compiled the intelligence he had gathered and reported it to Chen Dong.
Chen Dong nodded upon hearing this, pointed to the intraday chart on the screen, and sneered, "Retail investors are much more anxious than we are."
Wangcai suddenly felt a little embarrassed.
They are indeed shorting the stock.
How do you make money shorting? You borrow shares and sell them at the peak of the stock price. Not everyone can handle such a large quantity, so the stock price will inevitably plummet.
When that time comes, use small orders to buy back the stocks that were sold.
The final step is to return these stocks to the brokerage firm. The profit is the difference between the buying and selling prices, minus the brokerage firm's commission.
But now—
Before Chen Dong even issued the order to sell, the Ouyang Group's stock price plummeted by 30% based solely on newspaper reports. It was truly ironic.
In other words, as long as Chen Dong holds 5 million shares of Ouyang Group stock, whether the stock price rises or falls has no direct impact on him.
Since Chen Dong only borrowed 5 million shares of Ouyang Group's stock as collateral from the brokerage firm, he only needed to return the original number of shares.
When the Hang Seng Stock Exchange opened in the morning, the share price of Au Yeung Group was HK$10.21 per share, while the share price at this time was only HK$7.8, a drop of -30%.
However, all of this is driven by the individual behavior of retail investors; the real major players have not yet entered the market.
"Let's release 1 million shares first to test the waters."
"Yes, boss!"
At Chen Dong's command, the Ouyang Group's stock price, which had been hovering at 7.8 yuan, instantly collapsed.
In the blink of an eye, the price dropped by 60 cents, and the share price reached HK$7.2.
"Boss, the buying power is insufficient."
Wangcai's fingers kept issuing commands; the recent drop was an active sell order placed at a set price.
With 1 million shares available for buying, there are still nearly 600,000 sell orders hovering around the HK$7.20 price level.
The buy orders disappeared instantly; at a price of HK$7.19, there were only a few buy orders for more than 3 shares.
"Accumulating shares".
Chen Dong, watching the market closely, issued a new order: "Use small orders to accumulate shares and keep the stock price around HK$7.2."
"receive."
Wangcai responded and quickly gave orders to the other traders.
If you think that a major player is manipulating a stock, and that it's just a matter of one account operating, then you're being hasty.
At least twenty accounts would be created, and some even control hundreds of accounts simultaneously in order to repeatedly suppress the stock price.
As new orders were issued one after another.
The top 600,000 sell orders were gradually reduced by smaller orders, and eventually, a buying frenzy even broke out.
This scene occurred.
Experienced stock market investors know that the stock market is not a game played by one person alone. Major players, institutions, funds, retail investors, and the national team are the people who make up the stock market.
Inside the stock exchange.
Retail investors who just placed orders to sell all their Ouyang Group shares are now kicking themselves.
My mood is like a rollercoaster.
One second he was feeling the pain of losing 30% of his funds; anyone would feel the pain.
But a second later, the short sellers dumped a huge order, instantly pulling the stock price down to 7.2 yuan. The man was overjoyed.
You made the right choice!
If he still holds onto these stocks, he will only lose more money.
But before he could even enjoy his happiness for three seconds, it was as if fate was playing a cruel joke on him.
Small orders kept appearing at the HK$7.2 level.
It started with just over 30,000 shares, but then...
70,000 shares.
100,000 shares.
It only took about ten seconds.
At HK$7.19, there were buy orders for more than 300,000 shares.
Although the sell order at 7.2 yuan has not yet been triggered, everyone knows from this scene that the market has become bullish.
"Quickly, quickly, place an order for me to buy 30,000 shares at HK$7.2."
The trader skillfully operated the computer, and after a few seconds, he looked up at the investors and said, "30,000 shares have all been bought."
"Thank you, thank you."
The shareholders' faces lit up with joy.
A few minutes earlier, he sold all of Ouyang Group's shares at a price of 7.8 yuan.
At this point, he bought back all the shares at a price of HK$7.20.
That's a difference of 60 cents, plus or minus 6%, which all adds up to money.
With just this one transaction, when the stock price returns to HK$7.8, his losses will decrease from the initial 30% to 24%.
This is the most common form of T+0 trading in the stock market.
Of course, the rules of the Hang Seng market are relatively more lenient, and it operates on a T+0 model, which means that stocks bought on the same day can be sold on the same day, and vice versa, stocks sold on the same day can be bought on the same day, without having to wait until the next day to conduct the operation.
The trader offered his well wishes, saying, "Sir, you have a good eye. Judging from the situation, the market has already digested the negative news about the Ouyang Group, and it's only a matter of time before the stock price rebounds."
The man smiled and nodded upon hearing this, but inwardly he felt a pang of regret.
If you have enough capital, you would have simply bought back the shares you sold, using the method of adding to your position to average down your cost.
If the stock price returns to above 8 yuan, not only will there be no loss, but there will also be a profit.
11 a.m.
After the shareholders' meeting, Ouyang Ming returned to his office.
On the computer screen in front of him was the stock price of the Ouyang Group.
HK$7.25.
HK$7.26.
HKD 7.28.
It cannot be compared to yesterday's closing price of HK$10.21 for Ouyang Group.
As of now, Ouyang Group's stock has fallen by 36%.
The only good news is that the market has stabilized and the stock price is rebounding.
Ouyang Ming believes that the stock price will likely return to above 8 yuan before the market closes in the afternoon.
But he was furious!
You mean, what did he do to deserve this?
The company was exposed to negative news for no apparent reason, causing its stock price to plummet.
It would probably take at least a month to get it back above 10 yuan.
Thinking of this, a ruthless glint appeared in Ouyang Ming's eyes. He called his bodyguard, A Biao, into his office and gave him instructions.
"Go find out which bastard reported this, find him and bring him back to me. I'm going to skin him alive."
"Yes, boss, I'll go right away."
Be careful.
Ah Biao nodded, "Don't worry, boss, I only found unfamiliar faces."
Ouyang Ming waved his hand, and A Biao turned and left.
If he finds out which bastard did this, I'll skin him alive.
......
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