Chapter 365
With current technology, it's impossible to determine where the main players are.
Anyway, only a few international speculative funds are suspicious, after all, they have a large amount of capital.
After Xing Baohua reduced trading volume, thus decreasing the number of shares circulating in the market, speculative funds that wanted to acquire more shares could only resort to technical manipulation to induce retail investors to sell.
After several such transactions, those who remain are now large, financially strong clients.
There are probably very few retail investors left.
A large number of buy orders and sell orders were observed in the stocks of Huahong Telecom and Huahong Bank.
This phenomenon is rare; at least it's the first time Hong Kong has encountered it.
This results in a situation where stocks have a price in the market, but the trading volume is extremely low.
It's very much like a situation where there's a price but no market for it.
This was the first time the stock exchange had encountered such a situation, and they held an emergency meeting to discuss whether to allow Huahong's two listed companies to increase their trading volume.
After all, transactions can only occur through market circulation.
Do you all need to be careful? Are you just letting everyone watch?
However, fearing they might fall into a trap set by international speculative capital, they argued endlessly and decided to reach a consensus before talking to Xing Baohua.
Xing Baohua continued with his toothpaste plan, and international speculative capital continued to drive up prices. Cancel it, set a high price. Cancel it, set a high price.
It's just attracting that tiny amount of retail investor who stubbornly refuses to let go.
Look, it's gotten to this point.
Xing Baohua will not increase the volume of his products until the time is right.
The young shareholders were anxious; this was all money!
They also asked Xing Baohua what to do.
Xing Baohua told them to first consult their economic advisors about whether it was a good idea to increase trading volume at this time.
They all know that large trading volumes can cause a sharp drop. But not with Huahong's two companies; when they sell in large volumes, there will be a brief dip followed by a sharp rebound.
A large number of retail investors will come in and take orders.
Whether it's Xing Baohua or those speculative investors, they've found someone to take over their losses.
Xing Baohua and his company suffered no losses, since he needed to make money anyway.
The amount he and his shareholders invested was money they had raised.
The Hong Kong Stock Exchange has sent representatives to communicate with the board of directors of Huahong Group.
To avoid making an example or setting a bad precedent, Huahong is required to restrain its behavior and avoid retaliatory volume increases.
This phenomenon is unprecedented and has already attracted attention in the global financial community; it's almost becoming a textbook example.
Various studies and reports.
This standoff in terms of funding is baffling.
Where have you ever seen such a strange phenomenon?
If either side fails to hold on, it will be disastrous.
The Hang Seng Index allows for two-way trading.
Not only can you buy long, you can also buy short.
Many financial experts analyze that speculative funds are forcing Xing Baohua to increase trading volume, and the stock price has already reached a high level.
Once Xing Baohua increases trading volume, speculative funds will absorb the shares. A large number of shares will be in the hands of financial speculative funds.
Unless Huahong continues to increase its capital and expand its shareholding to counter the surge in speculative capital.
A surge in speculative capital will attract retail investors.
Retail investors, who ended up being the ones left holding the bag, all bought in at high prices.
Once speculative funds have sold off their shares and made a profit, they can even turn around and short sell.
This will leave retail investors holding the bag at high prices.
Harvesting leeks from both sides.
This is what the Hong Kong Stock Exchange wanted from the board of directors of Huahong Group: to insist on not harming Hong Kong shareholders for huge profits.
If the amount of funds is small, then it's fine.
But the amount of money involved was too large, and it ripped off retail investors so badly that they couldn't keep playing the game for years.
This will also lead to a downturn in Hong Kong's economy.
Capitalists are only interested in money; who cares about the lives of retail investors or the impact on the market?
As long as money is in my pocket, I'm not afraid of any raging storm.
The Stock Exchange was unaware of Huahong's trading volume plan. Logically, it should have increased the trading volume appropriately, as this was a once-in-a-lifetime opportunity to make some money.
However, Xing Baohua chose to release information piecemeal, leading the Hong Kong Stock Exchange to believe that he was preparing a major move.
It's abnormal that you can't buy stocks.
Selling a small amount of stock is abnormal.
The Hong Kong Stock Exchange is also facing a headache.
Of course, Xing Baohua assured the people at the Hong Kong Stock Exchange that he would gradually increase the trading volume at the appropriate time. If it was all absorbed by speculative capital, he would also increase capital and expand shares as quickly as possible.
However, we must also consider the shareholders' situation and whether they have the funds to keep up.
This kind of capital increase and share expansion is a tactic specifically targeting small and medium-sized shareholders.
The company has already increased its capital in the short term; if it increases it again, the shareholders will be furious.
It is not conducive to unity.
Fortunately, the shareholders Xing Baohua found were all quite capable. They might not be wealthy individually, but their families were all very powerful.
Although it will disrupt some share allocation values, the overall impact will be minimal.
Xing Baohua had discussed it with them, and in any case, this period of time would just be spent holding meetings.
Financial experts from the shareholder families came to help, providing analysis and advice.
All the guests are big names.
Everyone knows that Xing Baohua has a large amount of capital, and those shareholders also began to raise funds to invest.
They were afraid that Xing Baohua would raise capital again in the short term, and they were worried that they would not be able to keep up and their shareholding ratio would drop.
They're not stupid; Xing Baohua is so capable and earns so much money!
They don't have to do any work or have any headaches; they just pay money. In Hong Kong, they are a symbol of wealth.
If we can't keep up this time, it won't just be a disgrace to them, but a disgrace to the whole family.
The so-called "Four Great Families," the shipping magnates, and so on.
They're the kind of people who are famous just by mentioning their names; who wouldn't be envious?
Given that the currency isn't the US dollar, raising billions of H coins is still relatively easy.
Xing Baohua had no idea that his influence would be so terrifying.
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