After the rescue of the Hong Kong Umbrella Holdings Company, the Hong Kong stock market was completely stabilized. As the capital that had been shorted before needed to buy back the stocks, it led to a large increase in the stock market in the later period.
Just wanting to repurchase stocks from the stock market is extremely difficult in the current Hong Kong stock market. Anyone who trades in stocks knows that if short-selling institutions want to return the stocks, they must repurchase them from the stock market, otherwise they will default.
Therefore, most people hold stocks in their hands and refuse to sell them no matter how much the stock price rises on the stock market. As a result, the stock market is priceless and there is not much trading volume at all.
This has made the previous short-selling institutions anxious. They are watching the price of the entire Hong Kong stock market continue to rise. Although the current increase is only about 65% before the plunge, the trend is very clear.
If no measures are taken, the stock market is likely to directly reach the level before the stock market crash. If people who have stocks in their hands want to cover the market at this time, they will really have no choice but to wait for death.
The problem is, they found through analysis that even if they acquire all the stocks of small and medium-sized investors in the market, they may not be able to repay the number of shares they borrowed before, and they will still face the risk of default.
In fact, Hong Kong Umbrella Holdings has long known that this situation would occur, so it waited for these short-selling institutions to jump in, and reached a tacit agreement with the current large investment institutions not to release its stocks.
Although Hong Kong Umbrella Holdings had little influence in Hong Kong's financial sector before, after all, they had few listed companies and no serious securities investment business.
So at that time, everyone's view of Hong Kong umbrella holding companies was still based on the real industry, and they still didn't pay much attention to their financial capabilities.
This is why when international short-selling institutions targeted the Hong Kong stock market, they did not take the Hong Kong umbrella holding company into account at all, nor did they consider this biggest variable.
But now, through the operations of Hong Kong Umbrella Holdings, international hot money has fully realized that the risk of shorting a small stock market is even higher than that of a large stock market.
Because not only can you manipulate the stock market with your capital advantage, but other powerful institutions can also manipulate the stock market with their abundant capital. This is reciprocal.
Compared with going long, the risk of shorting is much higher, because if you go long, there is at least a ceiling for losses, and the stock value cannot drop below 0 yuan.
But when it comes to short selling, it's different. The stock price can theoretically be infinitely high, which means the scale of losses for short-selling institutions is also infinite. This is the fundamental difference between the two.
Therefore, it is much safer to go long in small stock markets than to go short. As it is now, circulating stocks are basically concentrated in the hands of a few large institutions, and short-selling institutions simply cannot repurchase enough shares from the stock market.
As for those listed companies, the stock prices are currently hovering at low levels, and it is impossible for their stocks to be circulated on the market. After all, this will not help increase the stock prices of their companies.
More importantly, through this incident, these companies have clearly understood who is the economic king of Hong Kong. Don't let the Hong Kong Umbrella Holdings misunderstand them just for their own petty profits.
Therefore, no matter whether it is small and medium-sized investors, several rescue agencies and listed companies, they have not taken any action. They are just waiting quietly, waiting for the previous short-selling institutions to have to increase the stock price in order to buy back the stock.
After nearly a month of continuous repurchases, the shares repurchased by short-selling institutions are far from enough to borrow the shares, causing them to face tremendous pressure.
At this time, Hong Kong's stock price has slowly returned to 3,900 points, which is not much different from the time of the stock market crash. According to the trend, breaking through the 4,000 point mark is basically a certainty.
In the previous life, the Hong Kong stock market had to wait until after 1990 to return to the position of 3,900 points. The intervening time was about 3 years, which was quite a long time. Now, it has returned to its original position in less than a month. .
At this point, no matter what the price of the stocks borrowed by short-selling institutions is, basically all of them are in a state of loss. It is just a question of how much the loss is.
However, for institutions that borrowed very early, they are not currently losing much. Therefore, in the current market, several institutions that own a large number of stocks have no intention of releasing stocks to the market.
Silence is the best statement. Of course, other small and medium-sized institutions will not release their stocks. As for listed companies, they can only quietly watch the final result of the battle between the long and short parties. Try not to have other ideas or have any thoughts. .
At this time, except for blue chip stocks, the growth of other stocks has basically reached its peak, but blue chip stocks, as the anchor of the Hong Kong stock market, still have a lot of room for growth.
More importantly, in order to suppress the Hong Kong stock market, short-selling blue-chip stocks was the most effective, so most of the stocks borrowed by short-selling institutions were these blue-chip stocks.
As market rescue institutions, they hold the largest number of blue-chip stocks. If short-selling institutions want to close their positions smoothly, they must purchase blue-chip stocks from these institutions. Otherwise, they will not be able to buy back through the stock market at all.
Like other stocks, when the stock market exceeded 4,000 points, some small and medium-sized investors gradually began to sell. Although the trading volume was still not very large, the sign was already obvious.
At this time, Hong Kong Umbrella Holdings still has not released any stocks to the outside world, whether it is blue chip stocks or ordinary stocks. Anyway, it is in hand, and it does not care about such a small amount of money.
According to the experience of previous lives, the Hong Kong stock market has been rising since then. However, there were some twists and turns in 1997. However, by 1999, the Hang Seng Index was still judged to have reached more than 16,600 points, which is more than four times the current level.
Although many mainland companies may not choose to go public now, and the Hong Kong stock market may not be as ferocious as it was in previous lives, there is still a lot of room for growth, and it is a good investment to hold in your hands.
More importantly, Hong Kong Umbrella Holdings originally had plans to acquire some blue-chip companies. Previously, it only raised funds on a small scale without making any big fanfare to avoid triggering market sentiment and at the same time to avoid alerting others.
This stock market crash can be said to have helped the Hong Kong Umbrella Holdings Company a lot. Taking advantage of this opportunity, I actually completed this task inexplicably. It is really a bit surprising.
From this perspective, it is even more impossible for Hong Kong Umbrella Holdings to sell the blue-chip stocks in its hands. While other investors look at the trends of Hong Kong Umbrella Holdings and find that there is no movement, naturally they will not take action.
This makes short-selling institutions anxious. If they don't buy back now, future losses will be unpredictable. But there are not enough stocks in the market, so there is only one way, and that is to buy from large institutions.
They know that it is impossible for a large enterprise like Hong Kong Umbrella Holdings to obtain their shares by relying on small profits, so the first thing they look for is the Hong Kong government and Chinese-funded institutions, such as Bank of China.
When they came to the door, they did not dare to make the decision without authorization. After all, the Hong Kong Umbrella Holdings Company was the one that contributed the most to the stability of the Hong Kong stock market this time. If we stopped them now, the relationship would suddenly be in trouble.
So after they received the request from the short-selling agency, they called Lin Hexia directly to see what she thought about it so that they could unify their opinions and gain maximum benefits.
Lin Hexia knew that it would be difficult to prevent these institutions from releasing stocks. After all, there was no reason not to make money if there was money to be made. Stopping it by yourself would only hurt them and the relationship would become bad.
Try to do as little as possible to block other people's financial paths, unless there is a serious conflict between other people's financial paths and your own. In the final analysis, this world is all about a struggle for interests.
It's just that some people fight for everyone's interests, while some people fight only for their own private interests. The highest state is to be able to take care of everyone's interests and realize one's own private interests.
Lin Hexia has been with Zhao Yi for so many years, and she still understands some things very well. If Zhao Yi tried his best to fight for it, it would not be the current achievement, but he just doesn't want to do it.
So faced with the current situation, Lin Hexia chose to exchange stocks, replacing the blue chip stocks that she didn't need much with the blue chip stocks that major capital parties needed, and even gave them some more stocks as a thank you to them.
In this way, Hong Kong Umbrella Holdings replaced all blue-chip stocks in the Hong Kong stock market such as Towngas, Hong Kong Electric, Hutchison Whampoa, and Cathay Pacific Airways, and gave other stocks in its hands to several capital parties.
In addition, they had started to contact the major shareholders of these companies before and secretly purchased a large number of shares from them. Together, the two items have essentially met the requirements for controlling these companies.
Originally, without this stock market crash, Hong Kong Umbrella Holdings would have quietly purchased stocks from the stock market to meet the requirements for absolute control. Now this stock market crash has helped them a lot.
And those capital parties that obtained stock replacement did not suffer any loss. Anyway, they now have the initiative. They united and prepared to jointly quote those short-selling institutions.
They are not good at it. The price they quoted directly doubled the current stock market price. Although there were many rounds of negotiations later, the price was still 80% higher than the current stock price.
Several capital parties that rescued the market this time have obtained considerable profits from this rescue operation. Not only have they made up for their previous losses, they have also gained a lot.
The Hong Kong Umbrella Holdings Company ignored these short-selling institutions because it was impossible to sell the stocks in their hands. At the same time, they also hoped to force the short-selling institutions to think of other methods.
Sure enough, after the failure of the Hong Kong Umbrella Holding Company, the only option was to go to corporate shareholders to purchase, hoping to obtain stocks from these shareholders. The price here is naturally quite high, but it is better than losing money. Much more.
In fact, this situation is what Hong Kong Umbrella Holdings hopes to see. Originally, they wanted to remove some of these shareholders from the company, but they do not sell stocks. To achieve this goal, they need to do a lot of work.
Now these people can't stand the temptation of profit, so they sell the stocks in their hands, and then the short-selling institutions return them to the securities institutions. At this time, it will be much easier and cheaper to buy these stocks from the securities institutions. Much.
If other companies want to get these stocks from securities companies, it may not be so easy. Even if they get it, they will probably have to pay a high price. After all, it is the nature of companies to pursue profits, let alone financial companies.
However, Hong Kong Umbrella Holdings has just demonstrated its strength and courage in the Hong Kong stock market. These securities companies will not offend Hong Kong Umbrella Holdings without reason unless necessary.
Therefore, Hong Kong Umbrella Holdings' purchase of stocks from these securities institutions went very smoothly, and the price was 10% higher than the stock market price.
The reason why there are so few is because everyone knows that the current state of the Hong Kong stock market is abnormal and is the result of the Hong Kong Umbrella Holdings just showing off its power.
Therefore, the real level of the Hong Kong stock market is definitely not as good as it is now. Naturally, it is impossible for the lion to open its mouth, which will only harm the Hong Kong Umbrella Holdings Company.
After such operations, the shares of target companies owned by Hong Kong umbrella holding companies generally reach about 70%, which is not much different from full control.
If Zhao Yi hadn't wanted these companies to delist, the stocks held by Hong Kong Umbrella Holdings would have met the delisting requirements, and they could decide whether to delist without permission.
However, the size of the Hong Kong stock market is not large. If all these blue-chip stocks are delisted, there will really not be many good things left in the Hong Kong stock market, and Hong Kong's status as the financial center of East Asia will be seriously affected.
This is one of the main reasons why Zhao Yi did not choose to delist. Of course, more importantly, although these companies are very good in Hong Kong, they are not worth mentioning compared with his own companies.
What he values is not how much revenue these companies can bring him, but the influence of these companies in Hong Kong, so that Hong Kong Umbrella Holdings can secure its position as the largest financial group in Hong Kong this time.
When Hong Kong Umbrella Holdings disclosed to the outside world the news about these companies in which it had absolute control, it naturally caused shock in Hong Kong's financial and business circles.
Even before the presidents of some companies react, they find that their position may not be guaranteed. With so many shares, they can basically make a decision on the board of directors.
Soon afterwards, Hong Kong Umbrella Holdings announced that it would reorganize and sort out these newly controlled companies. Naturally, there was another bloody storm, and there is no need to say more here.
The initiator of this stock market crash was the collapse of the US stock market. Although their overall decline was not as exaggerated as the Hong Kong stock market because of their large size, it was not much better.
Faced with something like the stock market crash, Zhao Yi may be embarrassed to take action on the Hong Kong stock market. After all, if he is discovered, he may fall into passivity. Moreover, his size is not large and he simply cannot withstand his own efforts.
So from the beginning, he set his sights on the international stock markets, and not only Sunflower Investment Company, but also domestic Ping An Insurance and several other securities investment companies were sent out.
To be honest, although domestic securities companies have made progress in recent years, due to the domestic financial environment, it is difficult for them to make great achievements.
On the one hand, it is because the domestic stock market is too small. If you want to play in it, you may directly attract the attention of regulatory agencies. Although it is not illegal, keeping such a close eye on it is not an option.
On the other hand, companies that really need financing will not be in very good operating conditions. On the contrary, those excellent companies are not in a hurry to go public, or have not even thought about going public at all.
For example, the size of its physical enterprise industries occupies an absolutely dominant position in the country, and they are also some of the highest quality assets in the country. However, these enterprises will not be listed on the market.
What's more important is that these companies are so big that, let alone the domestic stock market, even if they are listed on the U.S. stock market, they are at the level of a giant. Even the current U.S. stock market is a bit underwhelming.
Therefore, even if these securities investment companies want to invest in the stock market, they actually have no way to start. They can only make small-scale investments and do not devote all their energy to this aspect.
Instead, they focus their energy on cooperating with the reform of state-owned enterprises and providing financial support for state-owned enterprises with real investment value. This is much better than operating the stock market and the returns are much greater.
Therefore, in terms of international investment, his securities companies actually do not have much experience. Their basic business is domestic, and their understanding of foreign capital markets is not comprehensive and objective enough.
Although the presidents of these securities companies are selected from talents with international financial experience, they still lack the necessary qualifications to be independent in the international financial market.
The reason is simple, because although the leaders of these securities companies have international financial experience, they have never led an international financial battle alone. They must have theoretical knowledge, but it is hard to say what their practical abilities are.
Compared with these securities companies, Ping An Insurance Company has some international financial investment experience. After all, the huge funds in their hands must find a place to add value, and China obviously does not have such conditions.
Therefore, they can only conduct securities investment externally. They also have a securities investment department of their own, which is very large, larger than these securities investment companies combined.
It's just that since the last global financial crisis, the development of global stock markets has been generally upward. In such an atmosphere, they can make steady profits without having to worry too much.
This is why he has not been very involved in the investment matters of Ping An Insurance Company in recent years, because in this case, as long as their securities investment department is not stupid, they will basically make sure profits without losing money.
In addition, at the beginning of its establishment, Ping An Insurance Company was not very large. At least in the capital market, it was just a small thing and was not worth his efforts.
But things are different now. In addition to the huge domestic welfare insurance funds, there are also huge foreign critical illness medical insurance funds. The combined scale is quite huge.
Domestic welfare insurance funds are better, and a lot of them are used domestically every year. What is left each year is not very much, but as long as the funds are circulating in their hands, they must use these short-term stays to make some profits.
Moreover, this part of the investment has a fast turnover cycle, so the investment is more difficult. It cannot be directly deposited in the bank to obtain interest, so the role of the securities investment department will be greatly reduced.
In addition to these fast-turning domestic welfare insurance funds, what is relatively safe is the larger scale of foreign critical illness insurance funds. Although the cycle generally only takes about a year, this time period is enough for them to conduct multiple rounds of financial operations.
In addition, there are funds brought in by other miscellaneous insurance businesses. Although they are the smallest in size, they have more flexible autonomy, which is incomparable to the above two major sources of funds.
It's just that although they also invest in securities trading, they are still insurance companies after all. In addition, they have only been established recently and have insufficient background. When investing, they also choose relatively conservative investment plans.
In the financial market, stock investments are relatively safer, such as exchange rates, futures, etc., which are much more risky than stocks. If you increase the leverage, you may lose all your money.
When it comes to investing in the stock market, they basically go long and almost never go short, and they don't invest in index futures. Anyway, they choose not to do risky investments.
Because most of the funds are not their own, once there is a problem with the investment, they will face a lot of trouble. This is still very different from the old insurance companies.
For example, old insurance companies, after years of accumulation, have accumulated a very large amount of funds and assets, let alone customers' funds, and their ability to bear risks is naturally much stronger.
Therefore, international insurance giants will actually participate in investment projects with high risks and high returns, because their capital holdings are much larger than even those of major international investment banks.
However, this gap is only temporary. Other insurance types will naturally grow stronger with the development of our country's economy. As the largest and most standardized insurance company in the country, it will naturally be able to eat the biggest piece of the cake.
For example, in the field of auto insurance, Ping An Insurance Company has the largest market share, accounting for 70% of the entire auto insurance market. The remaining 30% is divided up by other domestic state-owned insurance companies.
In addition to automobile insurance, there is also the largest fixed asset insurance business. Currently, with the urbanization construction of China Housing Corporation and the construction of domestic infrastructure, the scale will become larger and larger.
Not to mention these future things, the global critical illness medical insurance business they launched can bring them at least US$50 billion in gross profits every year. This business alone makes them a lot of money.
Regarding the investment of its own funds, although Ping An Insurance Company will not choose investment products with particularly high risks, it is still more aggressive than investing in stocks alone.
Fortunately, during the previous investment period, the overall international financial situation was improving, and they still made a lot of money. Although it was not as easy as picking up money like Zhao Yi's investment, it was enough to satisfy them. (End of chapter)