Chapter 375 Speculative Funds Selling Orders
Xing Baohua did not meet with any of the managers of the speculative funds.
Speculative investors also saw that Xing Baohua was determined and began to sell off their accumulated stocks.
A massive number of sell orders appeared below.
Upon seeing this, Huahong Group immediately stopped shipping. If the shares remained unsold and no one bought them, they would likely drop to a few cents in a few days; after all, Hong Kong stocks don't have daily price limits.
Huahong Group's finance department quickly prepared funds and even cancelled previous orders.
Without Xing Baohua giving any orders, all accounts were opened and people started buying up stocks to drive up prices and prevent them from plummeting.
This is to create a support level, quickly forming a clear support position.
Anyone who can read technical charts will generally agree that the support level has held firm this time.
Investment banks and financial funds from all sides began to buy in.
A resounding victory.
Speculative funds are dumping shares at low prices, with the price still below the initial offering price by 7.2%.
Anyone could have guessed that Huahong Group might want to push its stock price above the issue price, so that 7.2% would be the profit.
This is like a gang beating, mercilessly attacking a drowning dog.
The more stock speculative capital releases, the more private capital will absorb.
You simply cannot imagine the power of private wealth. It starts with major investment banks, then funds and other institutions, and finally, retail investors who are late to the party.
There are times when things fall and times when they rise, but the rise is not a sharp, sudden jump.
A slow consolidation is needed, which is the sloping oscillation technique caused by a large amount of trading.
First, let non-governmental organizations gather information on foodies to stabilize the technical decline.
Xing Baohua's financial department just watched and didn't rush to buy anything.
They've become the bystanders, watching the drama unfold.
Every time the price increases by 3%-5%, Xing Baohua continues to release more stock.
After the capital increase and share expansion, they have a large number of shares. They can't just hold onto them and expect them to multiply!
They successfully attracted private capital, and they gradually released goods, but not too much.
Otherwise, it could easily lead to a downward trend. This stage is the easiest time to do short-term trading.
In technical charts, if you draw two parallel lines diagonally, this is called an upward parallel line.
Based on the resistance level above and the support level below, determine short-term buy and sell decisions.
This technique is suitable for T+0 trading, quick in and quick out, and completing a trade with a profit of three to five points. Following this rhythm, one can make more than a hundred round trips a day.
Suitable for institutions such as private equity firms and investment bank custodian funds.
Managing clients' investment accounts and processing orders quickly can increase commissions for both the company and individuals.
Traders also prefer this type of trading because it's stable and profitable.
Those who can make these judgments are all very experienced people who understand various patterns.
Of course, most of them are inaccurate. If the bookmakers could make it clear to you, how would they make money?
Therefore, a horizontal consolidation phase usually appears after a sharp drop or a huge rise. This is for those who are only half-baked and think they know everything.
The reason for shipping 3%-5% of the goods is to prevent them from finding a pattern.
When the price rose to 3%, Huahong sold 5% of its shares.
When it rises to 5%, it might sell off or drop to 3%, then pull it down slightly before selling off another 5%.
It makes it impossible for you to find any pattern, and the amplitude of the price increase is controlled within the parallel oscillation line.
Leave professional matters to professionals.
In this sudden battle of speculative capital, Hong Kong local companies were able to withstand the pressure and even defeat their opponents.
A textbook example of warfare!
Many financial media outlets wanted to interview the head of the finance department of Huahong Group, and even the big boss, Xing Baohua, wanted to interview him.
The phone lines for interview requests were constantly busy.
When Xing Baohua returned to the company, all the employees cheered and celebrated. When Xing Baohua walked into the hall, those silly shareholders led the applause and even prepared cakes and champagne.
We're just waiting for Xing Baohua to come in so we can celebrate together.
The shareholders were overjoyed! With continuous shipments, they turned waste paper into cash.
Their diminished value will gradually increase over time.
Xing Baohua said a few words briefly, and then went to the office with the shareholders.
Speaking to employees is formal, but speaking to shareholders is a bit more casual.
The eldest son of the Li family proposed to hold a grand celebration, inviting people from all walks of life and the media to show off this major victory to the world.
Xing Baohua quickly stopped them. The speculative investors hadn't completely retreated yet, and if they were provoked, they might get a severe blow.
Everyone has moments when they want to save face.
What about those wealthy Westerners? The two giants' companies need even more impressive results to attract clients' funds.
This high-profile announcement has also impacted several of their large private equity firms.
They're in a hurry, so they have to save face!
Therefore, Xing Baohua kept quiet and did not conduct any interviews or reports.
Those idiot shareholders, think about it, they should just put the money in their pockets first.
Huahong Group really treats its employees well.
The details of the bonus and reward will be announced in advance.
It is very effective in motivating and inspiring employees.
At this point, there is no need to overstimulate the stock market; only slow and steady growth can bring it back to a healthy state.
As the saying goes, illness comes like a landslide, but recovery is like pulling silk from a cocoon.
In short, slow growth is the right thing to do, it's a pity!
Everyone hopes their stocks will rise, but Xing Baohua knows that this rise won't last long.
His only goal now is to convert all his and his shareholders' shares into cash to weather the global financial crisis.
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