Chapter 375: All hit the bull's eye
Several people began to quietly borrow securities to establish short positions (short selling).
This is because Hong Kong stocks are special compared to US stocks. The law prohibits anyone from selling shares that they do not hold, which means that it is not possible to directly short sell individual stocks like US stocks.
However, for Hong Kong stocks, you can borrow stocks from securities companies and sell them, and then wait for the stock price to fall. After the market falls, you can buy the same number of stocks and return them to the securities company.
The price difference of the stock's decline is the short-selling profit.
Under Li Yong's operation, most of the Lin family's stocks were held by securities firms.
Most of these securities firms were secretly arranged by Gu Feihan and others.
In just a few days, almost all the stocks held by brokerage firms, except those held by retail investors, were bought up and sold out by a few people.
This is a murderous act.
The daily trading volume of Hong Kong stocks is several billion. Several people built short positions in batches targeting Lin, and the daily volume is controlled within tens of millions, which is not very noticeable in the entire market.
After dealing with Lin’s stocks, I still had a lot of spare money.
Everyone was a decisive person, and they quickly found a few companies that looked good, invested a little bit in them, and continued to short sell.
It seemed that there was still a lot left after the investment, and several people targeted the Hang Seng Index futures contracts.
Su Xiaoli had previously learned a lot about "futures" techniques from Oscar and Lu Sinian.
It was a rare occasion that several big guys were there to practice with her, so she took the opportunity to practice.
Afterwards, the three men contacted three overseas short-selling giants and released three short-selling reports on Lin’s two companies.
This is also what Mr. Gu taught me at that time.
In the business world, you need to understand conspiracies, but you must be even better at playing the open card.
Overt strategy is something that requires extremely high levels of business acumen and foresight from a person.
For the opponent, open conspiracy is like a cannon placed at the doorstep, which is almost impossible to solve.
In the detailed short-selling report, the loopholes in the financial statements of Lin’s two listed companies were used as a breakthrough point, and abnormal related transactions, the "stains" and social circles of the company's management, and the serious mismatch between the main business and its name were used as the target.
It was pointed out that the company exaggerated its sales and business scale, lacked transparency in its operating conditions, and frequently changed its auditing agencies...
...The announced sales volume did not match the data from independent institutions; the amount of purchases from major suppliers was fabricated; the announced tax amount also did not match the actual data; the profits of the two companies were suspected of being exaggerated by 99%, etc.
These reports have different focuses.
But the direction is very clear. In short, the valuations of Lin's two companies far exceed the industry level, are seriously inflated, and may even involve illegal activities.
The short-selling report was naturally written under the guidance of Su Xiaoli.
Whether in Chinese or English, the facts are presented with data, the expression is accurate and the source of information is reliable.
Each point is clear and easy to understand.
We must ensure that everyone who buys Lin’s stocks can understand it clearly.
It is unprecedented that three independent overseas institutions released short-selling reports at the same time.
When such a heavyweight bomb was released into the market, people who saw it in the newspaper were stunned.
This is not a short-selling report, it is simply three thick criminal records! For a time, bad news about Lin's company began to ferment in the market.
But within three days, in an environment where the stock market was booming and bullish, the share prices of Lin's two companies actually fell by more than 5 yuan.
These reports and the drop in stock prices added further pressure on Lin Manrong's already tense nerves.
Li Yong is extremely busy. His "good friends" within the brokerage firm who used to treat him like a real brother are now either on business trips or at home to accompany their mothers for medical treatment. They all avoid him.
There was no other way, Li Yong could only ask Lin Manrong for money.
The explanation had naturally been thought of long ago. "Someone is definitely shorting Lin's shares maliciously. The price has to go up, no matter what. We have to raise the price to protect the market."
Lin Manrong was not sure whether what he said was true or not, but she couldn't just watch the money that was blown away by the wind.
There is nothing I can do no matter how reluctant I am.
She gritted her teeth and made up her mind to give more than half of the working capital of both the light and dark sides to Li Yong.
She asked someone to investigate the source of these short-selling reports, but the Lin family's connections were not that deep, and no trace could be found no matter what.
Su Xiaoli and his companions had already placed some inexplicable clues to distract attention.
Li Yong looked at the new money in his account... and fell into deep thought.
He had read all those short-selling reports, and absolutely! — Not a single one of them was wrong.
Just like rows of strong bows being fully drawn, the arrows whistled and all hit the bull's eye! Li Yong felt something was wrong. Many of the contents involved the top secrets of the Lin family. How could these three institutions know so much about them? ! At that moment, he smelled danger.
Of course, he had to stabilize the situation first. With his skill in this field, he naturally took out some money to protect the market and give gifts.
He himself began to privately sell off Lin's shares in small amounts on several occasions, intending to escape the top accurately.
How could he let go of the chance to suck blood?
When it comes to being sophisticated and selfish, Li Yong is much more experienced and wise than Lin Manrong.
Fortunately, the overall environment is bullish now, and there are many more people who are optimistic than those who are bearish.
Before Li Yong had spent all the money, Lin's stock price had already been pushed up again.
Rebound after a slight decline and turned positive!
How can a bull market fall?!
In such a booming market, retail investors with spare money like to harbor fantasies.
Li Yong is a capable person. He hired a group of well-dressed "social elites" to act as cheerleaders.
Various research reports that were bullish on Lin began to fly all over the place.
In order to fool the public into taking over without thinking, he this time lowered his posture and did not rely entirely on the "social elites".
Li Yong spread the word in the market: "Hurry up and enter the market to pick up bargains. After the sharp drop, there will be a big reversal. You can make money within a day or two."
Hong Kong Island is world-renowned as a city of opportunities.
Individual investors who love stock trading are all gambling, betting that in the next minute they will be able to become wealthy and famous.
Under such hype, a large number of retail investors followed suit.
Many who were undecided took advantage of the slight drop and bought heavily into Lin’s shares.
No one wants to miss this big market trend.
The general public is even more eager for quick success and is full of excitement. They only care about whether they can win small profits or big profits, double or triple their money.
With a multi-pronged approach, Lin’s stock price hit a new high. One stock is about to break 30 yuan, while another has already broken through the 40 yuan mark.
This wave of rise attracted the attention of the entire market. Retail investors realized it later and began to blindly sing praises of Lin’s stocks, which attracted many followers.
Lin Manrong's mood was like a roller coaster, but her trust in Li Yong increased a little more.
The five-member team quietly watched the trading volume data and K-line fluctuations, admiring the final carnival of Lin's stock performance.
Stubborn?
A dead pig is not afraid of boiling water?
I believe the stock market will add fuel to the fire and bring revenge to the Lin family, and the “good days” are yet to come.
Don’t worry, the same recipe, just a stronger fire, the heat and taste are absolutely guaranteed.
Continue read on readnovelmtl.com
