Chen Dong and his men observed the situation in the stock market but did not make any rash moves.
Other larger investors and financial institutions did not react much, but some smaller securities firms were very active.
This suggests that even large institutions have some doubts about Li Ka-shing's actions.
While they can mitigate potential losses through hedging with stock futures, their ultimate goal is to generate excess profits.
Only by understanding the true purpose of their opponent can they make the right response and thus gain the greatest benefit.
Wangcai came to Chen Dong's side and said, "Boss, I feel something is wrong. Logically speaking, Li Ka-shing has such a large business and abundant funds, it's impossible for him to only invest such a small amount of money to prop up the market at once."
"Wangcai, you've really put your knowledge of 'The Art of War' into practice!" Chen Dong praised Wangcai.
Then he continued, "Yes, the first time it was 50 million, the second time it was 80 million, and now it's 50 million again. It's like he's trying to make people think he's broke. But how is that possible?"
Wangcai gave a thumbs up, "Boss, you're really perceptive! I think so too."
“Li Ka-shing himself is very wealthy, not to mention he has so many businesses, so many friends, and close business ties with major banks.”
"Even if he wanted to borrow money, it would be easy. And if he really wanted to support the market, he wouldn't just pay tens of millions at a time."
After saying that, he looked puzzled.
Chen Dong also fell into deep thought, "So what is his real purpose?"
He recalled the resume of Li Ka-shing that he had read in his previous life, and tried to deduce the reasons why Li Ka-shing did what he did from the things he knew.
Suddenly, a brilliant idea struck him.
He recalled an important piece of information he had learned in his previous life: in 1996, Li Ka-shing sold off a telecommunications business in the United Kingdom that he had been operating for several years, thus becoming the richest man in Hong Kong.
In the years prior, he had been lying low, and the title of the richest man belonged to the shipping magnate.
His investment actually began in the United Kingdom as early as 1993.
It's unclear whether Li Ka-shing's actions at this time are related to this major investment.
Possibly.
But there could be other reasons.
However, the specific reasons are not important; what is important is to understand the fundamental reasons behind Li Ka-shing's actions.
Perhaps the answer can be found by considering Li Ka-shing's significant investment activities in the context of this situation.
Chen Dong thought that if Li Ka-shing's Orange company was established and performed well, it would inevitably boost his other industries, and the stock price would also rise.
In other words, Li Ka-shing will make a fortune again.
Therefore, it can be inferred that he needs to repurchase a large number of shares.
Doing this has at least two advantages.
On the one hand, it allows him to strengthen his control over his own industries and increase his say in the group's board of directors.
On the other hand, it will also allow him to gain greater economic benefits. For example, by buying at a low price and then selling the stock after it has risen sharply, he can obtain a large sum of money.
However, whether the specific situation is as one might guess remains to be seen and requires further observation.
Chen Dong shared his deductions with Wangcai.
Upon hearing this, he also thought it was very likely.
So the two continued to observe the Li Group's operations, trying to find the trends and patterns within them to corroborate their own deductions.
Chen Dong suddenly said, "If the other party invests a slightly larger but not very large sum of money a few minutes before the market closes, it means that they want to show that they are willing but unable to, so as to absorb more shares!"
At 11:55, Lee's Group's stock had fallen to 6.3.
If no measures are taken, it is very likely to fall to 6.2.
Clearly, Li Ka-shing thought the same way, which is why he placed a buy order for 25 million shares at a price of 6.4.
In other words, they will invest more than 100 million yuan this time.
Many believe that the Lee Group's move is an attempt to boost its stock price before the market closes, thereby stabilizing investor confidence.
As expected, with the Li Group's intervention, the stock price finally settled at 6.2 by the close of trading.
After witnessing Li Ka-shing's performance, Chen Dong was now certain that Li Ka-shing was indeed buying back shares.
Chen Dong and Wang Cai excitedly high-fived.
They have now figured out Li Ka-shing's true purpose.
Wangcai was incredibly excited. "Boss, you're amazing! Li's Group is indeed buying back shares. Everything he did before was a deliberate attempt to appear weak and mislead investors, causing them to sell their shares quickly so he could buy them back at a lower price."
Chen Dong was also very happy. His prediction this time was not easy, but he finally succeeded, which made him feel that he had grown again.
"Not bad, although this last one is a bit bigger than the previous ones, it's still just so-so, totaling only a little over 100 million. It's trying to portray a situation where they have the will but not the power."
Wangcai thought for a moment and asked, "Boss, shall we continue shorting? Let's give Li Ka-shing another boost and make the outside world think they're out of money."
Chen Dong knew that he was asking for instructions on how to proceed. After thinking for a moment, he said, "In order to achieve his goal, he will probably keep this low level until the market closes today."
So, do whatever you want!
"Okay, I understand."
In the stock market, investors are in a strange emotional state.
They felt that the Li Group couldn't possibly be that weak.
However, its measures to support the market were not so resolute.
What exactly happened to the Li Group?
Many people still have hope, but many others feel that something is wrong with the Li family.
Yet I can't believe it.
In this atmosphere, the morning market came to an end.
After Chen Dong and Wang Cai discussed the next steps, they left.
Because he now has complete confidence in Wangcai's abilities.
In Chen Dong's view, the overall situation was already settled, and there was no need for him to stay here any longer.
He had originally planned to meet with Hayashi Benma today to sign a contract.
However, I received a call from Hayashi Honma this morning, saying that he had encountered some trouble in Taiwan and couldn't come over today.
It was estimated that it would take about a week to resolve the issue, therefore their meeting had to be postponed.
This situation left Chen Dong somewhat disappointed.
However, Chen Dong took this opportunity to chat with Lin Benjian, asking him to list the personnel, machines, and equipment needed for the research in advance so that he could start preparing and make some arrangements ahead of time.
Lin Benjian readily agreed and repeatedly expressed his gratitude to Chen Dong.
"I felt your enthusiasm and strong support for our research. It is a great honor to have the support of a big boss like you. I feel that the research ahead will be much better than if I were to do it all on my own."
......
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