Rebirth of the Financial Crisis Sweeping the World

Back home, Wang Guanxi leaned against the head of the bed, lost in thought.

With the acquisition of a modeling company today, Wang Guanxi's plan for the future has gradually begun.

Now he is short of money.

There are still 3 months, on September 14th, the subprime mortgage crisis in the United States will detonate the financial crisis sweeping the world. By then, I should be able to make a lot of money by shorting 10,000 lots of the Hang Seng Index.

In normal times, if you short 1 lot of the Hang Seng Index, banks, futures companies, and securities companies all provide 10 times leverage, and investors need a margin of 100,000 Hong Kong dollars.

To short 10,000 lots, a margin of HK$1 billion is required.

Wang Guanxi does not have a deposit of 1 billion Hong Kong dollars, so he needs to apply for 100 times leverage.

He consulted Feng Shaokun, as long as the account funds are below 200 million Hong Kong dollars, he can apply for 100 times leverage with Wing Hang Bank to short the Hang Seng Index!

In the case of 100 times leverage, only a margin of HK$10,000 is required for one lot, and only a margin of HK$100 million is required for 10,000 lots.

More than 200 million Hong Kong dollars, just provide 10 times leverage.

After all, the higher the capital and the higher the leverage, the higher the risk, and banks are also worried about being implicated by investors who have suffered huge losses.

"Hurry up and make money"

"Let the capital reach 200 million Hong Kong dollars first"

"Part of the funds of more than 200 million Hong Kong dollars can be used to invest in high-tech companies, or can be injected into the global Jiyuan Group!"

Now he has shorted BYD Electronics Group, with a floating loss of 35 million Hong Kong dollars in his stock account, and his net worth is only 135 million Hong Kong dollars.

There is still a little distance from 200 million Hong Kong dollars.

The Wang Venture Capital Foundation, on the other hand, has invested in many high-tech companies.

Solomon Technology Company, 20% of the shares, locked in a return of at least HK$1 billion.

Energy Saving Electronics, 25% of the shares, locked in a return of at least HK$800 million.

Xiansixing Electronics, 30% of the shares, locked in a return of 1 billion Hong Kong dollars.

Changhong Semiconductor Company, 20% of the law enforcement, locked in a return of 700 million Hong Kong dollars when it went public. If it is by 2020, it will be at least 5 billion Hong Kong dollars in return.

Jingke Energy, with a 35% stake, locked in a return of $400 million.

RDA Electronics, with a 50% stake, locked in a return of $120 million.

But this is a long-term investment, which lasts for several years. If you want to securitize assets, you have to wait for the company to go public.

Then he opened the stock chart of BYD Electronics Group.

This week, its stock price has plummeted for two consecutive days, from 14.00 to 6.50. It seems that it has almost fallen. If it falls again tomorrow, the stock price of BYD Electronics Group will definitely rise.

Why should it go up?

Because the Fidelity Investment Group of the United States must increase its holdings of stocks at a low level.

However, HSBC International Trust Co., Ltd. will reduce or temporarily stop cashing out because of the low stock price of BYD Electronics.

So Wang Guanxi has to close his position tomorrow no matter what.

Thinking of this, he was a little excited.

After all, he was also plucking hairs on Fidelity Investment Group and HSBC International Trust Company at the same time.

The following day, June 11, Wednesday.

The stock market opens.

HSBC International Trust, Jiang Quangang ordered: "Continue to sell today!"

He knows that the American Fidelity Investment Group is waiting for an opportunity to buy the shares of BYD Electronics Group, so he will continue to cash out. Once the American Fidelity Investment Group increases its holdings, he will stop cashing out and let the American Fidelity Group raise the stock price. They cash out again.

··

As for the Hong Kong branch of Fidelity Investment Group, Si Xiuliang ordered: "We will enter the market when the short positions in the market are exhausted."

Looking at the trend chart of BYD Electronics Group, he said: "When the stock price falls to 5.00,

Let’s start accumulating.”

"Yes, President." Several traders in charge of operating BYD Electronics Group stood ready.

The two major institutions have ulterior motives, and Wang Guanxi, a big retail investor, is also keeping a close eye on the stocks, for fear of missing the best opportunity to close positions.

20 minutes later, the stock price fell to 6.00 under the sell-off of HSBC International Trust.

After receiving support for a short time, the stock price fell below the 6.00 position, which immediately caused a large number of mainland retail investors to stop their losses.

"MD, this old man was still making a profit last week, but he lost money this week. If he knew that he should have retreated last Friday, he is greedy!"

··

You must know that these retail investors all bought at the 10.00 position, and now they have lost so much, many of them chose to cut their meat.

However, these retail investors have a small amount of funds, and they sold their stocks, which caused the stock price to drop to 5.80.

At the moment of Wing Lung Securities Company, Wu Zhanhai's face is gloomy. He holds 4 million shares in his account. The average price of opening positions is at 12.00, and he loses 6.2 yuan per share. Now he has a floating loss of 24.8 million Hong Kong dollars.

He hated it in his heart. When he saw the US Fidelity Investment Group saying that it would increase its holdings of BYD Electronics, he wanted to come in and get a share of the pie. He never thought that this would be a big pit.

HSBC Trust, the major shareholder of BYD Electronics Group, is selling shares!

"MD, I just won't close my position!"

Wang Guanxi shorted BYD Electronics Group last week. At that time, the stock price rushed to 14.00, and his account had a floating loss of 40 million. Wang Guanxi can resist it, why can't the funds?

Just to carry it on!

He will not cut flesh easily.

Wang Guanxi was debating whether to close his position. If it was too late and the American Fidelity Investment Group started to buy bottoms, the stock price would definitely rise sharply, and his account would lose a lot of profits.

But after thinking for a while, Wang Guanxi intends to close the position at 5.50!

Time passed, and the stock price finally fell to 5.50. Wang Guanxi started to close his position without saying a word.

1 million shares!

1 million shares!

1 million shares!

···

Because Wang Guanxi is a short position, when the short position is closed, it means buying the same number of stocks in the market.

Soon the stock price rushed to the 6.40 position, and Wang Guanxi immediately suspended closing positions.

He also just lost 5 million shares.

As for HSBC International Trust, Jiang Quangang felt that this was an opportunity to continue cashing out, so he ordered: "Continue to close the position!"

"Yes, President" The traders continued to sell stocks.

Soon the stock price fell again to the 5.50 position.

Wang Guanxi closed his positions frantically again.

Still the same!

1 million shares!

1 million shares!

···

The stock price was once again pulled to the 6.40 position by Wang Guanxi.

It's finally over.

His average closing price was at 5.95, and he earned HK$4.05 per share. With 10 million shares, he made a total of HK$40.5 million.

"I closed the position early this time, probably because I dared to close the position before Fidelity Investment Group increased its holdings!"

Indeed, at the moment Fidelity Investments, Si Xiuliang frowned, the share price of BYD Electronics Group fell to 5.50 twice, and then turned around and rose. Maybe other bulls increased their holdings, or shorts closed their positions.

"President, should we increase our holdings now?" the assistant asked.

"No hurry, we must wait for the stock price to fall to 5.00 before increasing our holdings." Si Xiuliang thought for a while and said, "HSBC International Trust Company will still sell stocks, we just wait."

"Yes, President"