Rebirth of the Financial Crisis Sweeping the World

Chapter 228 228 Credit loan 1.5 billion, and another 40 million shares!

At 4:10 pm, Wang Guanxi received a call from Feng Shaokun, asking him to play billiards and relax.

So Wang Guanxi came to the Snooker Club.

Feng Shaokun and Zhou Tianjing are both here.

In afternoon trading today, the Hang Seng Index fell 3%, from 19,900 to 19,300, making Wang Guanxi another big profit.

Feng Shaokun congratulated: "Guan Xi, you won big this time. The Hang Seng Index finally plummeted again during the afternoon trading."

Wang Guanxi’s No. 1 Fund opened an account at Yongheng Securities Company for trading this time because of the introduction of new tax law implementation regulations.

[10% dividend income tax is generally levied on H shares]

This caused the Hang Seng Index to plummet 600 points in the afternoon, and Wang Guanxi's account net worth was nearly HK$4 billion.

Moreover, Wang Guanxi’s black-shirted hedge fund also shorted New World Development Group and Sino Land Group. The stocks of these two listed real estate giants also fell a lot.

Wang Guanxi shorted New World Development Group, and Sino Land Group's money was lent to Wang Guanxi by Wing Hang Bank. He was a little worried before, but now he is not worried.

Zhou Tianjing also said: "Guan Xi, you are really powerful. You have been holding a short position on the Hang Seng Index. This time you made another 600 million Hong Kong dollars, right?"

Several of the stocks he holds have been falling recently, and today they fell particularly hard. He has lost 40% on his books, and it's hard to describe how he feels.

He planned to liquidate his stocks and go to the mainland to open an entertainment company.

The location has also been chosen. It is in Guangzhou. It will be opened in partnership with friends in Guangzhou. When the time comes, Wang Guanxi will also become a shareholder so that he can cooperate with GBE Entertainment Group.

Wang Guanxi smiled and said: "It's okay, so-so. I've made a lot of money recently."

Currently, Blackshirt Insurance Company is shorting American International Group, Blackshirt Hedge Fund is shorting the stocks of companies under the Huang Group, Zheng Group, and Hong Alliance, while Fund No. 1 under the Wang Family Foundation is shorting the Hang Seng Index.

Now that there are more and more floating profits on the account, Wang Guanxi feels very comfortable inside.

Zhou Tianjing said: "I plan to open an entertainment company in Guangzhou with my friends. How about you investing in it? We can cooperate and develop the market."

Wang Guanxi smiled and said: "No problem, I will let GBE Film and Television Company invest in your company when the time comes."

The three of them played billiards, drank orange juice, and chatted.

At this time six more people came.

"Oh shit!"

"Huhu,

I didn’t expect the Hang Seng Index to drop so many points in the afternoon.”

"Well, luckily we closed our long positions on the Hang Seng Index in the morning session, otherwise we would have been doomed this time."

"Yes, yes, it scared me to death."

"Damn it, if we continue to hold long orders on the Hang Seng Index, we will be liquidated again in the afternoon!"

"We are so lucky. We closed our position early before the Hang Seng Index plummeted!"

These six people are Lu Jianting, Guan Zhenyi, Lin Jiyang, Chen Peiquan, Cai Manji, and Zhang Renliang!

The six-member Koala International Investment Bank previously used 100 times leverage to go long on the Hang Seng Index.

100,000 lots, the opening position is 20,000.

This morning, when the Hang Seng Index reached the 20070 position, they then closed their positions. The average closing position was around 20020, and they made a profit of 20 million Hong Kong dollars!

The position closing was very timely. If they had not closed the position in the morning session, they would have been waiting for the liquidation in the afternoon session!

The six people now feel like they have narrowly escaped death.

Moreover, when the market was about to close, they once again bought the bottom of the Hang Seng Index. Considering the risk, they only bought 50,000 lots of the bottom this time.

not much.

The position of bargain hunting happened to be at the lowest point of today's afternoon trading, 19280. After they finished bargain hunting, the Hang Seng Index rose, but in the afternoon session, the Hang Seng Index finally closed at 19300.

The average opening position of their 50,000 Hang Seng Index long orders is exactly 19,300, and a one-point fluctuation is HK$2.5 million. There is currently no floating loss or floating profit.

But next week, the Hang Seng Index will definitely rise, because the [10% general dividend income tax on H shares] should also be exhausted.

This time they just sat back and waited to be paid.

"Shaokun, Guanxi, Brother Tianjing, you are all here."

"Haha, just in time, let's have a good show of our skills."

"Come on, come on, come on, I haven't played snooker for a long time"

"I'm going to have a good fight this time!"

··

Then everyone started playing snooker.

An hour later, Wang Guanxi took a break and turned on the news.

[The U.S. government is considering incorporating Fannie and Freddie bonds into the federal budget]

The White House Budget Office and the Treasury Department said the Bush administration is considering whether to include $5.2 trillion in bonds from Fannie Mae and Freddie Mac into the federal budget.

Although the federal government took over Fannie Mae and Freddie Mac on September 7, it did not resolve the issue of whether the bonds of these two companies should be included in the federal budget, nor did it make it clear whether the government would guarantee these bonds.

U.S. Treasury Secretary Henry Paulson said: "What we should be clear about is, is the government going to guarantee these bonds?"

Once the federal government decides to include Fannie and Freddie's bonds in the budget, it will clearly indicate that the government will provide support for the two companies' combined bond guarantees of US$5.2 trillion.

This is good news. With $5.2 trillion in subordinated bonds guaranteed by the U.S. government, they will not default.

For global stock markets, that's a boon.

However, Wang Guanxi knew that this only guaranteed the 5.2 trillion bonds of Fannie Mae and Freddie Mac. There were also no guarantees for the subordinated bonds of Lehman Brothers, Merrill Lynch Investment Bank, and Washington Mutual Bank.

[Washington Mutual Bank is suspected to be the next Lehman Brothers, and its stock price fell 93% in one year]

Washington Mutual, the largest savings bank in the United States, closed down 98 cents on the New York Stock Exchange at $2.32. It fell as much as 30% that day and fell 44% in the past two trading days.

The intraday low of $2.3 also set a new low for the company since January 1991.

Washington Mutual lost $3.33 billion in the second quarter and expects losses from subprime mortgages and other home loans to total $19 billion by 2011.

Over the past year, the bank's share price has fallen 93%.

On Thursday, Washington Mutual Bank announced that it had reached an agreement with the main regulator, the Office of Thrift Institutional Supervision, to strengthen risk management. The agreement did not require the bank to increase capital.

Earlier, Washington Mutual Bank had raised $7.2 billion in funds from investors including private equity firm TPG.

The US$7.2 billion in financing is destined to be in vain, and Washington Mutual Bank will also go bankrupt in the future.

Of course, Lehman Brothers went bankrupt before Washington Mutual went bankrupt.

Wang Guanxi immediately opened the news about Lehman Brothers. He planned to short Lehman Brothers again. Tonight was Friday and Lehman Brothers would go bankrupt next week. Tonight was a good opportunity to short Lehman Brothers!

[New Jersey pension fund loses $50 million from Lehman stock sale]

Lehman Brothers raised $6 billion through stake sales in June, when the New Jersey State Pension Fund bought 4.2 million shares of the company's common stock for about $118 million.

The fund bought Lehman shares for $28 and sold them at an average price of $19.35. The fund still holds $60 million in Lehman Brothers preferred stock, which pays a dividend yield of 8.75%.

Wang Guanxi knew that the remaining 60 million shares of preferred shares would become worthless paper and pay a dividend of 8.75%.

By then, not only will the dividends be unavailable, but the stocks will also be worthless, and the New Jersey pension fund will lose all its money.

In these months, the New Jersey State Pension Fund has lost $4.4 billion, accounting for approximately 3.1% of its total assets. More than 700,000 current and retired U.S. employees are members of the fund and rely on the pensions issued by the fund after retirement.

[Lehman Brothers has started negotiations with potential buyers]

Lehman Brothers has begun talks with potential buyers about selling the company as its stock price plummeted.

Moody's Investors Service said Lehman Brothers must find a "stronger financial partner" or it will downgrade its credit rating.

Bankers at other firms were reviewing Lehman's books today but declined to name potential buyers.

It is speculated that it may be Murano Securities Co., Ltd. of Nippon Benzene Co., Ltd., as well as several major investment banks in Europe.

At this time, Feng Shaokun, Lu Jianting and others came over.

"Guanxi, what are you looking at?"

Wang Guanxi smiled and said: "The news about Lehman Brothers."

Feng Shaokun: “I don’t know if Lehman Brothers will go bankrupt?”

"No, it's been 159 years, how could it go bankrupt?" Lu Jianting smiled nonchalantly, and then went to pour coffee.

Feng Shaokun asked: "Guan Xi, what do you think of Lehman Brothers?"

Wang Guanxi smiled: "For now, there are almost no potential acquirers of Lehman Brothers, so Moody's move undoubtedly increases the possibility that Lehman Brothers may sell assets at extremely low prices."

"And the market will not give Lehman enough time to proceed with its plans."

Feng Shaokun said: "It is rumored that Goldman Sachs is planning to acquire Lehman Brothers. Goldman Sachs still has a lot of business dealings with Lehman Brothers.

Moreover, Kenichi Watanabe, president of Nomura Holdings, Japan's largest investment bank, also said that Murano Securities intends to acquire part of Lehman Brothers' shares.

To be honest, I’m tempted to buy Lehman Brothers right now.”

Wang Guanxi smiled and said: "Without the support of the Federal Reserve or the Treasury Department, Goldman Sachs Group would not plan to acquire Lehman Brothers, and the Japanese people are not fools."

Feng Shaokun added: "Now there are several large European banks that may try to acquire Lehman Brothers in order to strengthen their business in the US market. Now the largest banks in Europe, HSBC Holdings and Deutsche Bank, seem to be interested in acquiring Lehman Brothers."

Last night, Lehman Brothers' share price fell by $2.73 to $4.52 in composite trading on the New York Stock Exchange, a drop of 38%.

The company's current market value has reached about US$3.2 billion, which is very, very low.

Feng Shaokun really wanted to buy the bottom.

"Recently, many wealthy people in Hong Kong have been buying at the bottom of Lehman Brothers, and that Zeng Chi-wai has also been buying at the bottom."

When Wang Guanxi heard this, he immediately smiled and said: "He will be miserable."

Later, Zeng Zhiwei and his family almost filed for bankruptcy because they lost all their money by buying Lehman Brothers stocks.

Thinking of this, Wang Guanxi said: "Brother Feng, lend me some more money, I will short Lehman Brothers, and I will mortgage Blackshirt Investment Bank to you.

Also, my No. 1 fund currently has a floating profit of HK$3.1 billion, and there will be more floating profit in the future. If you borrow more money, I will short Lehman Brothers."

When Wang Guanxi shorted Sino Real Estate Group, a subsidiary of the Huang Group, he mortgaged all the equity in the No. 1 Fund trading account, loaned HK$2 billion, and gave it to the black shirt hedge fund to short Sino Real Estate Group.

Now the net value of the trading account has reached 3.9 billion Hong Kong dollars. With the addition of Blackshirt Investment Bank, can it be mortgaged to Wing Hang Bank and get some more loans?

Feng Shaokun was stunned and asked, "How much more loan do you want?"

Wang Guanxi said calmly: "Let's get 2 billion Hong Kong dollars, and then I can arrange for someone to borrow Lehman Brothers' stocks."

Feng Shaokun thought for a moment and said, "I can only lend you HK$1.2 billion."

Previously, Wang Guanxi mortgaged all the equity in the No. 1 fund trading account and loaned HK$2 billion to go to Kongxinhe Real Estate Group.

Then he mortgaged all the rights and interests obtained by Blackshirt Insurance Company from shorting American International Group, and loaned 4 billion Hong Kong dollars to short New World Development Group.

Now it has a loan of HK$6 billion.

Moreover, the equity of Wang Guanxi’s No. 1 Fund’s trading account in Yongheng Securities has been mortgaged.

Wang Guanxi said: "How about 1.5 billion Hong Kong dollars?"

Feng Shaokun thought for a while and said: "Okay, I will give you another credit loan of HK$1.5 billion, and you will mortgage all the future rights and interests of Black Shirt Investment Bank and No. 1 Fund to Wing Hang Bank."

"Okay, let's sign the agreement right away"

"Let's go!"

"Let's finish this game first." Feng Shaokun picked up the club and planned to continue playing.

"Borrow money first, don't be in a hurry"

Then Wang Guanxi and Feng Shaokun came to Yongheng Building and signed the agreement.

Mortgaged all future interests of Blackshirt Investment Bank and No. 1 Fund Account to Wing Hang Bank, and obtained another loan of HK$1.5 billion.

This 1.5 billion Hong Kong dollars was injected into the proprietary trading department of Blackshirt Investment Bank by Wang Guanxi.

Then Wang Guanxi called Brian Schreiber, the Asia-Pacific head of AIG!

The last time I shorted Lehman Brothers, I borrowed shares from American International Group. I borrowed a total of 100 million shares and made $410 million!

Having tasted the big sweetness, Wang Guanxi planned to continue asking Brian Schreiber to borrow Lehman Brothers stock for shorting this time.

The call was quickly connected, and Brian Schreiber asked: "Mr. Wang, why did you suddenly think of calling me?"

Wang Guanxi said straight to the point: "Mr. Schreiber, I plan to short Lehman Brothers' stock again, so I plan to borrow stocks from AIG Group to do short selling."

Brian Schreiber politely said: "Mr. Wang, Lehman Brothers is currently in acquisition negotiations, and we can no longer lend you shares for short selling.

Because if you short-sell, it may affect the stock price of Lehman Brothers and cause the stock price of Lehman Brothers to fall a lot. Although our AIG Group holds Lehman Brothers stocks for a long time, we cannot lend it to you now."

Lehman Brothers is now negotiating with various potential buyers, who may evaluate Lehman Brothers based on its share price.

If Wang Guanxi shorts Lehman Brothers again, the stock price may fall a lot.

So this time AIG Group does not plan to lend Lehman Brothers shares to Wang Guanxi.

Because after Lehman Brothers was acquired, AIG Group would also sell its shares to Lehman Brothers' buyers.

Wang Guanxi said with some regret: "Mr. Schreiber, that's really a pity. I hope we can continue to cooperate in the future if we have the opportunity."

Brian Schreiber smiled and said: "Okay, Mr. Wang, we will continue to cooperate if we have the opportunity."

After the phone call ended, Wang Guanxi sighed: "AIG Group didn't dare to lend me stocks to short Lehman Brothers."

This Brian Schreiber is really cautious. Wang Guanxi thought that the wealthy AIG Group would not care about this, but unexpectedly, he was a coward.

Then Wang Guanxi came to Yonglong Building and summoned all the guys from the Black Shirt Investment Bank.

Wu Zhanhai, Wu Hongsheng, Li Guangyu, Guan Wenwei, Zhang Xiaoqi, Yu Xugang, Tian Shengchun, Lu Zhengxin, Ye Zhiwei, Zhao Mingxun, Liang Jilin, Tan Jiabao.

"Tonight when the U.S. stock market opens, I plan to ask the proprietary trading department of Blackshirt Investment Bank to mobilize HK$1.5 billion in funds to short Lehman Brothers. Go ahead and borrow stocks!"

"Yes, BOSS" Everyone acted quickly.

Soon it was discovered that Daifuku Securities Company owned shares of Lehman Brothers.

So Blackshirt Investment Bank borrowed shares of Lehman Brothers from Taifook Securities overnight, totaling 41 million shares worth US$193 million, which amounted to more than HK$1.5 billion.

The monthly interest is 2%, which is HK$30 million per month.

Wu Zhanhai said: "Boss, this Dafu Securities Company is so greedy even when it is about to die. It actually wants us 2% monthly interest."

Although he was in Blackshirt Investment Bank, he knew that the Blackshirt Hedge Fund in Blackshirt Insurance Company was shorting Daifuku Securities Company.

During this period of time, the Black Shirt Insurance Company has been fighting with the Hong Family Alliance, the Huang Family Group, and the Zheng Family Group. He is very aware of this. Unfortunately, he has no chance to participate.

Wang Guanxi smiled faintly and said: "The prisoners on death row can have a good meal before they die. Let Dafu Securities be happy. 2% monthly interest is nothing."

This time Dafu Securities will lose all its money, and Lin Yongfu will not be able to laugh anymore.

At this moment, at the headquarters of Dafu Securities Company, Lin Yongfu looked out the window with a sneer.

This time, Blackshirt Investment Bank asked Daifuku Securities to borrow 40 million shares of Lehman Brothers to short Lehman Brothers. This is simply crazy.

The stock price of Lehman Brothers is at a historical low, and this black-shirted investment bank still dares to short-sell, which is simply a desperate act.

"Haha, Blackshirt Insurance Company, Blackshirt Investment Bank, you are dead!"

After thinking about it, he decided to violate the agreement and leaked the information about Blackshirt Investment Bank shorting Lehman Brothers!

Although he is unable to stop the Black Shirt Investment Bank now, the Huang Consortium and the Zheng Consortium can!

Even if he did so, it was revealed privately that Blackshirt Investment Bank's short selling of Lehman Brothers was a serious violation of the agreement, but Blackshirt Investment Bank did not know!

The black-shirted insurance company fought with them and consumed so much money. Everyone wished that the other party was finished. Now is a good opportunity.

"Black shirt insurance company, haha, don't blame me"

"You idiots are dead this time"

This time it is estimated that Wing Hang Bank loaned money to Blackshirt Insurance Company or Blackshirt Investment Bank again.

But, it's just to give money.

We must seize this opportunity to kill Black Shirt Investment Bank!

As long as the Blackshirt Investment Bank is killed, the Blackshirt Insurance Company will not be far behind.

Victory is in sight!

Immediately, Lin Yongfu called Huang Zhiyu of the Huang Group and Zheng Yuanfeng of the Zheng Group, wanting to reveal to the two groups the news that Black Shirt Investment Bank had shorted the shares of Lehman Brothers.

The financial market is like a battlefield. If you don't die, I will die. If you kill people without blood, this time, Blackshirt Investment Bank will die.

Then everyone went to the game’s audio room for the convenience of calling.

Huang Zhiyu asked: "Old Lin, are you sure Blackshirt Investment Bank is shorting Lehman Brothers' stocks?"

Lin Yongfu said: "It's absolutely true, 100%. They borrowed 40 million shares of Lehman Brothers. It is estimated that they will short Lehman Brothers when the U.S. stock market opens tonight!"

Huang Zhiyu said with some surprise: "This Blackshirt Insurance Company and Blackshirt Investment Bank have so much money. They have spent more than 12 billion Hong Kong dollars shorting our listed companies, right? There are still funds to short Lehman Brothers." !”

Zheng Yuanfeng also said: "This black-shirted investment bank is desperate. Now that Lehman Brothers' stock price is at a historical level, it actually dares to short Lehman Brothers!"

Lin Yongfu said: "Mr. Huang, Mr. Zheng, this time you continue to mobilize funds, come to Blackshirt Investment Bank, and blow up Blackshirt Investment Bank.

By then, the total collapse of Blackshirt Insurance Company is not far away. Blackshirt Investment Bank is shorting 40 million shares, which is worth US$193 million, which is HK$1.5 billion. All you have to do is mobilize HK$2 billion in funds."

Huang Zhiyu sighed; "There is not so much spare funds now."

Zheng Yuanfeng also said: "Our Zheng family is the same."

"But we can let our friends the Ayala family stop it. Their banks seem to have bought some shares of Lehman Brothers!"

Now Huang Zhiyu and Zheng Yuanfeng cannot mobilize extra funds to stop the Black Shirt Investment Bank, but they can ask their friends to stop the Black Shirt Investment Bank!

Huang Zhiyu said excitedly: "Ayala Consortium in the Philippines?"

If the Ayala family is mentioned in the Philippines, it will definitely be heard.

This Hispanic family has experienced the colonial period of the Philippines, the Japanese occupation period in World War I and World War II, and then the independence and founding of the country, as well as the Marcos dictatorship period. During this 187-year history, they have always stood firm and survived. stronger.

It has a profound influence on Philippine society, and many people even believe that it can influence the development of the country's political economy. The Ayala Group of Companies owned by the family can be said to be the Philippine version of "Samsung"

Ayala Group owns the Bank of the Philippine Islands, and the financial company of the Bank of the Philippine Islands is increasing its stake in Lehman Brothers!

Zheng Yuanfeng said: "Yes, let the securities company under the Bank of the Philippine Islands act as a black-shirt investment bank!"