In fact, the US stock market experienced significant fluctuations a week ago, but many investors believed it was just a short-term correction and would not affect the overall trend of the US stock market.
On Monday, October 19th, the weather was clear and the tranquil American sky displayed a refreshing azure blue, mirroring the bright and cheerful mood of stock market investors. However, from the moment the stock exchange opened for business at 9:30 a.m., people's spirits plummeted, and the sky above seemed to transform from a pleasant azure blue into a terrifying and unsettling black.
As soon as the US stock market opened, a terrifying scene reminiscent of half a century reappeared: the stock market plummeted like an avalanche, immediately triggering panic across the United States. Market rumors further fueled the panic selling.
As the stock market continued its plunge, a large number of hedging positions further shorted index contracts in the stock index futures market, which in turn fueled the continued decline in stock indices. The market entered a vicious cycle.
This quickly led to a complete collapse of the US stock market!
On that day, global stock markets plummeted, led by a sharp drop in the Dow Jones Industrial Average in New York, triggering panic in financial markets!
This incredible "Black Monday" has happened!
In just three hours, the Dow Jones Industrial Average fell 508.32 points, a drop of 22.62%. This meant that shareholders' stocks lost more than 20% of their value in a single day, with a total of $500 billion vanishing into thin air—equivalent to one-eighth of the US's annual GDP. The panic quickly spread beyond the US. On October 19th, stock markets in London, Tokyo, Hong Kong, Paris, Frankfurt, Toronto, Sydney, Wellington, and other cities also plummeted.
The panic intensified in the following week. On October 20, Tokyo Stock Exchange stocks fell by 14.9%, setting a new record for the largest drop in Tokyo's stock market history. On October 26, Hong Kong's Hang Seng Index plummeted 1,126 points, a drop of 33.5%, setting a new record for the largest drop in Hong Kong's stock market history and wiping out all gains since November 1986. In response, stock markets in Tokyo, Sydney, Bangkok, Singapore, and Manila also fell sharply. The news of the Asian stock market collapse then spread back to Europe and the United States, causing their stock markets to decline as well.
Statistics show that in the eight days from October 19th to 26th, the stock market crash resulted in losses of up to $2 trillion, 5.92 times the total direct and indirect losses of $338 billion during World War II. Merrill Lynch economist Vachter thus described the stock market crash of October 19th and 26th as an "out-of-control massacre."
During this period, banks went bankrupt, factories closed, and companies laid off large numbers of employees, and the tragedy of the stock market crash of the past was repeated!
Governments around the world stepped in to rescue the market, and major companies bought back shares to restore market confidence.
At this point, people discovered that Wujiang Group had sold off its shares and cashed out a large amount of money before the stock market crash, and had also borrowed a huge amount of money from major banks.
this……
Could it be that Wujiang Group has already predicted the coming global stock market crash?
Wujiang Group only raised funds and did not take the opportunity to short the stock market for profit, so the shareholders did not resent Wujiang Group, but instead admired it.
At this time, Li Ka-shing also escaped the stock market crash. Just a month earlier, Cheung Kong Holdings, Hutchison Whampoa, Hong Kong Electric, United Overseas, Chinese Estates Holdings and others announced IPOs to raise funds, raising a total of HK$10.3 billion and drawing a large amount of funds from the market.
He was also praised for his foresight.
However, compared to Zhao Ye, they are nothing but a small fry.
A Hong Kong financial newspaper has compiled detailed information on Wujiang Group's recent fundraising activities from announcements released by listed banks in Hong Kong, Japan, and the United States.
The newspaper caused a huge sensation throughout Hong Kong as soon as it was published!
"According to our investigation, Galaxy Financial Company, a subsidiary of Wujiang Group, sold off all of its shares in dozens of companies before 'Black Monday,' cashing out HK$12 billion!"
"In addition, Wujiang Group has reached loan agreements with several banks, including HSBC, Hang Seng Bank, and Standard Chartered Bank, lending a total of HK$8 billion!"
"We borrowed one trillion yen from financial institutions such as the Bank of Tokyo, Japan Post Bank, Daiwa Bank, and Sumitomo Mitsui Financial Group, which is approximately $7.1 billion!"
"In addition, it borrowed a total of $4.2 billion from American banks such as Citibank and Morgan Stanley..."
"Currently, Wujiang Group holds an extremely large amount of cash flow!"
"If Wujiang Group is willing to step in and rescue the market, the sluggish situation of the Hong Kong stock market will immediately improve!"
The impact of the newspaper's publication was enormous.
Numerous Hong Kong stock market investors gathered outside the Hong Kong branch of Wujiang Group to petition for the group to intervene and save the market.
Hong Kong's richest man, Li Ka-shing, had previously announced a market rescue plan; however, his limited resources were still insufficient to stem the downward trend in the Hong Kong stock market.
It's called a market rescue, but it's actually a bottom-fishing operation.
Of course, Zhao Ye will do the same things as Li Jiacheng.
The market rescue was just a side effect; the real purpose was to buy at the bottom, and as they bought, the Hong Kong stock market rose.
Zhou Anping walked out of the company gate and approached the petitioning shareholders. He looked around and, with great enthusiasm, said loudly, "Hello everyone, I am the General Manager of Wujiang Group's Hong Kong branch. I understand your feelings right now. But please rest assured, Wujiang Group will not allow the Hong Kong economy and stock market to continue to decline. The group is currently holding a meeting to discuss how to rescue the market. Please go back and wait patiently!"
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