Even if it breaks the initial price, it only traps half of the funds held by speculative investors.
Of course, when the price falls below the initial offering price, it's not just speculative investors who suffer losses, but also many investors like Xing Baohua.
In the short term, it's a loss, but in the long term, as long as Huahong's two companies are profitable, the number of shareholders won't be much less.
It only slightly reduced the value of the shares held by shareholders; as long as they don't sell, the value can recover.
Now is not the time to dwell on the loss of a single city.
We need to drive away the speculative investors and make them feel bad.
The Quantum Fund is still accumulating shares little by little, just like Xing Baohua used to release them in a piecemeal fashion.
This tactic is something his finance team can't understand.
In the afternoon, near the close of trading, it dropped another 10%, bringing it close to its initial offering price of 11%.
Huahong Bank was issued for 13 H coins, while Huahong Telecom was issued for 9.8 H coins.
It's estimated that it will drop to the issue price tomorrow.
Now it's a battle between two forces, and retail investors are too scared to buy recklessly.
Those financial experts who were nowhere to be seen at crucial moments have finally spoken out.
"The two stocks of Huahong Group have been collectively suppressed by international financial groups, mainly for bottom-fishing. They are now close to the issue price, and they want to buy them at a low price."
"For a listed company, a drop below its issue price is a slap in the face. If Huahong Group cares about its reputation, it should have supported the price at the issue price and raised it to restore the confidence of investors."
"Remember that the support level is always near the issue price."
"Xing Baohua has over 20 billion US dollars; he'll protect the stock..."
The experts' comments seemed to give the market confidence, as they all believed that Xing Baohua cared about his reputation and, with so much money in his hands, wouldn't let anyone embarrass him.
However, the experts' words seemed to be the opposite of what they meant.
"Boss, Huahong Bank is nearing its issue price of 13.91 yuan, and Huahong Telecom is at 10.35 yuan!"
The stock market situation changed again just as the sales representative finished speaking.
As soon as the price was quoted, both companies raised it by a few cents.
It's obvious that some fearless retail investors are entering the market again.
It's probably because they listened to the experts and bought stocks close to their issue price as a bottom-fishing strategy.
Unfortunately, compared to the sheer volume of funds involved, it was like a leaf in a storm.
"Press the break point," Xing Baohua ordered.
In less than an hour, with the deliberate release of stock, the price nearly broke the initial offering price.
"13.43, 10.13"
"13.21, 9.98"
"Huahong Bank, below issue price, 12.96. Huahong Telecom, 9.90."
The first stock's price drop caused many retail investors who bought at the bottom to curse Xing Baohua, saying he had no shame.
Indeed, compared to billions of dollars, what does face matter?
So what if it breaks the issue price? Didn't you see that it trapped a bunch of international speculative funds?
What's with all the cursing?
Xing Baohua was doing a good deed; he simply didn't want speculative investors to sell their shares to retail investors so they could profit and exit the market.
The stocks held by Xing Baohua and the shareholders are like commodities; if they're valuable, they're valuable. Even rotten cabbage can drop to a penny or two.
A decrease in net worth is nothing; it's all superficial.
"Huahong Bank 12.88, Huahong Telecom 9.79. Telecom shares are below issue price."
After hearing the quote, Xing Baohua instructed the data to be organized and analyzed further that evening.
Let's see how much money speculators are prepared to buy at the bottom.
If anyone dares to buy at the bottom, Xing Baohua will continue to release more stock.
Now, Xing Baohua is listening to the analysis from his company's financial experts.
It's very likely that speculative investors have banded together and are using a mix of real and deceptive tactics to mislead them.
They gave some false signals, making it seem like they wanted to buy, to trick Xing Baohua into continuing to release more stock and lowering the price.
Xing Baohua didn't understand at the time. He asked the financial team, "The lower the price, the deeper the speculative funds will be trapped, right?"
Actually, there's a term involved here called "averaging down".
When prices are low, they buy in stages, gradually. Don't be fooled by the small amounts; when the time is right, they will make large purchases to create the illusion of bottom-fishing.
Xing Baohua continued to increase production volume and lower prices.
Of course, these are all techniques used below the breakout point.
When prices are low, speculative funds or retail investors tend to buy in larger quantities.
This is the only way to lower the average price to a level where it's easy to make a profit.
Unless Xing Baohua goes all out and refuses to let prices rise, he won't allow them to go up.
it's out of the question.
The only possibility is that both companies' performance has been severely negative, pushing them to the brink of delisting and causing investors to lose confidence.
There's no need to wait until then; with the company's performance clearly improving, the shareholders won't allow Xing Baohua to operate in that way.
Shareholders also need to make money.
Therefore, after the price breaks the initial offering price, we still need to see how much speculative capital buys in.
As for retail investors, they can be ignored.
On a weekend afternoon, Huahong Bank's price was 12.45, and Huahong Telecom's price was 9.63.
Berkshire Hathaway, a financial group that has been closely monitoring Warren Buffett, has suddenly made a move.
The clerk loudly announced to Xing Baohua: "Two thousand lots of buy orders, and another ten thousand added..."
Xing Baohua, who was dozing off, thought about going home and letting Master Zhou try the splits.
I have long legs at home too, but I've never tried doing the splits.
Still worried about Sect Leader Zhou? What if he messes up?
I was woken up by the quoting agent's shout.
I suddenly turned my head and heard a slight cracking sound in my neck. It wasn't broken, but it felt a bit like a stiff neck.
He covered his neck with his right hand, tilted his head, and glared angrily at the price quote clerk.
The quoting agent was so frightened that he didn't dare to say a word.
"My neck! Um, you're paying for the medical bills!"
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