Some media outlets conducted investigations and interviewed many people, including Citibank employees, but unfortunately, they couldn't extract any useful information from Citibank.
The only thing to say is: Mr. Xing's finances are very healthy. He can access a limit of three billion US dollars at any time.
It would have been better if they hadn't mentioned it. Once it was mentioned, the retail investors who were waiting on the sidelines all went to the employees of Hainan Holdings to ask about the stocks that Xing Baohua hadn't disclosed.
Inquiries are being made and the price is being inflated to HK$10,000 per message.
The stocks targeted by the takeover bids were all publicly known and easy to trace. Subsequently, retail investors managed to artificially inflate the price slightly.
Xing Baohua can no longer buy at the bottom.
What's even more amazing is that he made a profit on all his huge bills.
Although the high-priced orders are still losing money, they have raised the average, so we still made a 30% profit.
Thirty percent of more than three hundred million is terrifying enough; they earned one hundred million US dollars in a short period of time.
Who wouldn't be envious of that!
Even without economic experts saying so, everyone just follows suit and buys.
Employees of Hainan Holdings have become highly sought after. Whenever they go out, they are surrounded by people offering cigarettes, money, and asking for information.
Some employees have also had numerous romantic encounters and scandalous stories. A piece of news that can buy a good night's sleep—anyone would be delighted.
Who would have thought that an insider company message would bring so many benefits?
It's a complete mess anyway.
Yu Shenghai asked Xing Baohua if they should tell the employees to tone it down and keep their mouths shut.
Xing Baohua didn't mind; he wasn't a professional in finance, he just wanted to make some money. This was fine too, it was a benefit for his employees, and it would make hiring easier in the future.
According to the regulations of formal financial companies, some employees are required to sign confidentiality agreements.
In particular, traders must not release any information or allow themselves or their families to follow the trades.
Xing Baohua always considered himself a retail investor.
Little did he know that his ignorance led him to become the apparent mastermind.
Every move he makes, every word he utters, can affect the fluctuations of the stocks he invests in.
Don't be fooled by the fact that he seems to have made a profit; he actually doesn't get a single penny.
If the stock rises by several tens of points today, he makes a profit. If it falls by several tens of points the day after tomorrow, he loses money. As long as he doesn't sell and there's no actual transaction, nobody knows how much he'll earn or lose.
The listed companies that Xing Baohua had invested in were also unwilling to give up, especially the companies that had raised their stakes. They held a shareholders' meeting, which Yu Shenghai attended as a representative.
This is a shareholders' meeting held for Hainan Holdings.
There are essentially two points: the controlling shareholder, along with several other shareholders, bought back the shares held by Xing Baohua at a premium.
If Xing Baohua feels that the premium recovery price is not appropriate, then the controlling shareholder and other shareholders can continue to increase their investment to dilute the shares held by the shareholders present in proportion.
If you have the funds, then continue to maintain your shareholding ratio. If you don't want to invest, your shares will be diluted.
Xing Baohua currently has a little over 5%. If they follow their rules and Xing Baohua doesn't follow suit, his stake will be diluted to a little over 3% or even a little over 2%.
This involves the mobilization of hundreds of millions of yuan.
Don't be fooled by Citi's claim that Xing Baohua has over 3 billion in backing. It might be possible to target one listed company, but if it's a dozen or so, 3 billion US dollars wouldn't be enough.
Why would a listed company that has been targeted by a hostile takeover bid claim it's a hostile takeover?
It's about using the rules of the game to make more money from the holding company.
If it's bought back at a premium, then it's still a profit. Institutions love this approach; it not only makes money but also allows them to quickly recoup their funds.
If a hostile takeover occurs, the controlling shareholder will be in a very difficult position and will need to raise funds to deal with it. Without money to buy back shares, they can only watch helplessly.
In fact, share buybacks are a way to prevent hostile takeover bidders or institutions from maliciously driving down prices. It's like a pump and dump, followed by short selling. Companies with cash reserves can weather the storm, but those without cash are likely on the verge of bankruptcy.
Listed companies raise funds for company development, and a lot of the money is invested in expansion and research and development. A small amount of working capital is used to stabilize the stock price.
If real risks arise, the only recourse is to borrow from banks or other companies for working capital. Not only will this involve paying high interest rates, but there's also the risk of individuals or institutions making a takeover bid, taking the opportunity to invest heavily and dilute the shares held by numerous shareholders in order to achieve controlling interest.
To prevent hostile takeover bids from seizing control, controlling shareholders have no choice but to spend money to avoid trouble. Buybacks at a premium are the best solution.
Once share dilution occurs, it comes down to whose financial strength is greater. It also serves as a test to see if the other party is willing to profit alongside them or to seize controlling stake.
Xing Baohua received the news from Yu Shenghai, found an analyst to explain the rules of the game to him, and finally informed Yu Shenghai that he would no longer invest in or retain shares in the companies that had raised their stakes.
Let it be diluted! Anyway, once it reaches its peak, he'll sell it off and still make a profit.
Why would you want to control someone else's shares? It's too much of a hassle.
Xing Baohua's signal finally put the seven or eight companies that had been targeted for hostile takeovers at ease. They were now willing to follow along and make money.
Haina Company is in the newspapers again. Nobody understands what they're up to.
Various economic experts began to analyze the situation, appearing on television and in newspapers. They cited examples of nonsense and even used past cases for analysis and comparison.
Although Xing Baohua's methods are difficult to understand, there are still many examples like him in reality.
Shareholders' shares are diluted, which benefits the majority shareholders. For minority shareholders, the number of shares decreases, but the value remains unchanged.
Stockholders are happy because they can buy more shares when they are in circulation, indicating a clear upward trend.
Even a temporary drop doesn't matter; I'd be happier to buy at a lower price.
Xing Baohua just wants to maintain the value of his shares; the number of shares doesn't matter, since he doesn't really want to get involved.
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