Shortly after, Sun Hung Kai Properties also released an announcement, strongly supporting Chen's Capital, condemning Lu Feng's market-disrupting behavior, and demanding that the Securities and Futures Commission severely punish such behavior as a warning to others.
The announcement also mentioned the friendship between Sun Hung Kai Properties and Chan Capital. Sun Hung Kai Properties provided significant assistance when Chan Capital was first established, and Chan Capital also supported Sun Hung Kai Properties when it encountered difficulties in recent years.
It's actually just a normal commercial bridge loan.
In the evening, on a stock analysis program on television, a man in a suit and tie, holding a pen, spoke passionately.
"As you can see, the market was generally up today, with the Hang Seng Index rising by one point. Financial sector leaders such as the Stock Exchange, Sun Hung Kai Properties, and Bailihao saw a lot of buying after the market opened."
"As I said a few days ago, there will be a lot of capital inflow during this period, with a large amount of overseas funds buying in. We don't care what the big players or institutions think. As long as we follow my methods and ideas, there will be no problem. We need to have an investment strategy. Now let's look at the afternoon session."
"As soon as the market opened in the afternoon, financial companies encountered a black swan event. Lu Feng, who claims to be the richest man in mainland China, came again and is stirring up trouble. I believe everyone has seen some of the gossip about this, so I won't say more, and I don't pay attention to gossip media."
"When this news broke, it didn't really have much impact on the overall market. What really had an impact was that Lu Feng said Chen's Capital had already incurred losses on its books. This was a big deal, and the stock price immediately plummeted, closing at 46.2 yuan."
"Many people in the industry are in an uproar. Some time ago, when Chen's Capital bought back shares, some people already felt something was wrong. Now that this has happened, many friends have called me to ask if they can buy in and whether there are any problems with their business operations."
"What I want to say is that Chen's Capital's investments are basically stable, and nothing major has happened. This is definitely a good opportunity to buy at the bottom, and it is very likely that the richest man in mainland China is one of their own. We've seen this kind of thing many times before..."
The analyst spoke eloquently, spouting all sorts of professional information, which excited viewers in front of their televisions, who were eager to buy as soon as the stock market opened the next day.
The stock market can be simply understood as a game of musical chairs. It's very simple: before a company goes public, it will be valued. For example, if your company is worth 1,000 yuan, it will be divided into 1,000 shares, and each share will be worth 1 yuan. 500 shares will be set aside as circulating shares.
You spend ten dollars to buy ten servings. The next day, the company makes a major breakthrough in research and development, and the company becomes valuable. People then think it's worth two thousand dollars, so your ten dollars become twenty dollars.
Many people believe that this company will have new research and development in the future and want to buy its stock. You happen to want to sell, you sell, someone else buys, and you make money.
That's the simplest one. Another type is where institutions speculate and exploit retail investors. For example, this company might be worth 1,000 yuan, but a certain financial company thinks it's worth 10,000 yuan. If they buy it, they won't be able to find anyone else to take over.
So he could find several companies, discuss it privately, buy in first, and as the capital pool accumulated, the stock price rose. Then he would sell at a high price, and the second company would enter the market to take over, driving the price even higher. After the second company sold a portion, the third company would enter the market.
Such stocks have deviated from the company's actual value. It's like a bottle of Lao Gan Ma chili sauce that's only worth five yuan. The first person says, "I'll offer six yuan," and then sells it for seven yuan. The second person says, "I bought it for seven yuan, but it's worth ten yuan," and then sells it to a third person for ten yuan.
Stocks are soaring, and ordinary people and small institutions, unaware of the inside story, see that they can make several times their money in just a few days and rush in with their cash.
Or perhaps someone knows about the shady dealings involved and still wants to make a quick buck.
These companies will keep a close eye on the stock. When it gets hyped up and a lot of money has flowed into the stock besides theirs, they will start selling. While selling, they will also shout that it is just a temporary adjustment, a pain in the stock market, and that it will definitely surge tomorrow, urging everyone to buy the dip.
As a result, many people who tried to buy at the bottom ended up in the depths of despair, because there was no bottom.
Chen's Capital's stock plummeted because of Lu Feng's words. Now, Mr. Chen has two choices: one is to ignore it and let the market trade freely, which may lead to a large amount of capital flight and a panic-driven drop in the stock price.
In this way, Lu Feng can buy in large quantities, hold shares at low prices, and control Chen's Capital at a lower cost.
Another option is for Ms. Chen to support the stock price and prevent it from being acquired at a low price. She will use some financial companies to drive up the stock price. She knows that Lu Feng will take control, so the stock value will be raised to a higher level to prevent Lu Feng from buying it at a low price.
At this point, Lu Feng would short Chen's Capital, selling high and low through securities companies, because Lu Feng knew that President Chen's market support wouldn't last long. Once Mr. Feng intervened and severed her network of connections, the funds would be withdrawn, and the stock price would immediately be halved.
The scheme was already set up, so Lu Feng wasn't worried at all. All that was left was to see how President Chen would struggle.
Su Yourong finished cooking, her face still flushed. She looked at the time on the wall; it was already past nine o'clock at night. Then she heard the sound of a car outside.
Su Yourong stood up and walked out. President Chen got out of the car, looking somewhat tired.
"Are you tired? Have you eaten? I've prepared the food." Su Yourong lowered her head and took the slippers, squatting down to prepare to change her shoes.
Mr. Chen sat on the sofa, lifted his foot, and said, "You don't need to do this."
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