At this point, you should quickly close out your high-priced buy orders.
The top loses money, the bottom makes money.
If there is still room for maneuver, consider shorting.
This creates a locked order state.
However, Xing Baohua has not yet discovered that speculative investors are playing the "lock-in" game.
Locking in a position means locking in profits or losses.
Where there is a locked order, there is an unlocking order.
There are many ways to unwind a losing position. For example, once speculative investors make a profit, they will sell high-priced orders and incorporate the losses into low-priced orders.
That's how you solve it.
However, there is a prerequisite: the direction of the rise or fall must be consistent.
Retail investors don't have that ability; they can only rely on technical analysis to resolve their positions.
However, speculative funds and market manipulators can control the direction.
Just like now, they're leading Xing Baohua by the nose. This guy has no choice but to watch helplessly.
"How do we break this deadlock?" Xing Baohua was also worried and kept asking the experts in the Ministry of Finance.
There is, however, a way to break this deadlock.
Unless one of the speculative investors' companies acquires shares that reach the 5% threshold for disclosure.
One can use legitimate rules to engage in shady tactics.
Once the sign is raised, OK! A trading halt is requested, and nobody can play anymore.
The newly added shareholders might propose that Huahong Group acquire the company at a premium. If the acquisition fails, the other party can only remain a minority shareholder.
So, could Xing Baohua target the new shareholders by increasing their capital and expanding their shareholding? Should the new shareholders follow suit or not?
If they don't follow suit, the new shareholder's stake will be diluted to below 5%.
After the share expansion, Xing Baohua and his shareholders had a large number of shares in their hands.
The company's assets have grown even larger, and the valuations of the two listed companies have skyrocketed.
Therefore, stock prices in the stock market will continue to fall according to the dilution ratio.
Prices have decreased, but the market size has increased.
It is more damaging to speculative investment teams.
To raise the average price further, even more funds would be needed, like a bottomless pit.
To deal with a professional gang of thugs, you have to use professional thug methods.
Unfortunately, they saw through this too. They haven't allowed any company to reach the 5% shareholding threshold for disclosure.
They're really sticking together like that, so united!
Unable to break the deadlock, Xing Baohua calculated the timeline and, no matter how he tried, he couldn't hold back these speculative investors.
They couldn't wait for the stock market crash to happen.
The more food the other party consumes, the more wealth Xing Baohua and his shareholders will accumulate.
It's right to draw funds from the stock market. But it's wrong to associate with speculative capital.
There are hundreds of thousands of shares; Xing Baohua is just releasing them now. If others decide to quit, he'll release his shares too.
With Xing Baohua's sell orders at the bottom, the stock price will continue to plummet.
Who pays the bill?
If no one buys in the short term, a sharp drop will occur. If the speculative funds withdraw and Xing Baohua's group doesn't repurchase shares to push the stock price up, they're relying on retail investors.
It's estimated that it will take several years for the price to rise back to its original level, and it might even crash near the initial offering price.
At that time, Xing Baohua and the shareholders' net worth had shrunk completely.
Who would be willing to throw away the money they've earned to buy back those stocks?
Anyway, not many shareholders are willing.
What you fear most is what happens.
"Boss! 30,000 sell orders. Price range: 12.37, 9.13."
"Average price!" Xing Baohua asked quickly.
First, check the other party's average price. If you can't bring it down to the average price level, the other party might be about to cut their losses and leave the market.
From a face-saving perspective, Xing Baohua won, forcing the other party to cut their losses and run away in disgrace.
However, from their own perspective, it was a Pyrrhic victory, after all, they invested a large amount of stock and drove the price down to below the issue price.
Prices aren't going up, and I still have a lot of stock. How can I sell it?
"Average price 13.27, 9.94."
"Check the transaction volume to see how much stock has been taken away," Xing Baohua instructed.
Xing Baohua believes that the other party continues to dump high-priced buy orders.
With such a large volume, who would be willing to take over?
When the news came in, the trading volume was very small, and there were no buyers willing to take over.
Even after the market closed, the sell orders were still pending.
What the hell are they doing?
Xing Baohua was completely overwhelmed by the other party's constant changes.
After the market closed, Xing Baohua instructed the finance department to work overtime to find a solution.
Whoever can come up with a good solution to break this deadlock will receive a personal reward of ten million H coins.
Xing Baohua had no choice but to resort to the tactic of rewarding the bold with generous incentives. No, he meant geniuses.
Everyone was busy, but the boss, Xing Baohua, went back to rest.
Relax and have a glass of red wine with Master Zhou at home.
Around 9 p.m., Xing Baohua, who had just finished showering, came out of the bathroom wrapped in a bath towel.
Then the pager went off.
I picked it up and saw a note that read, "Hey fellow villager, I'm Zhang Feng, a classmate from Sichuan at the University of Hong Kong! If you're not too busy, could you give me a call?"
The next part is a phone number.
Xing Baohua didn't return the call immediately, but instead replied on the pager: "What's wrong!"
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