Rebirth of the Financial Crisis Sweeping the World

Chapter 269 269 [8 billion short selling! 】

The next day, Thursday, September 25th, morning.

Wang Guanxi and others gathered at the headquarters of Blackshirt Investment Bank.

Yesterday afternoon, the Hang Seng Index closed at 19,000, down 250 points from yesterday.

Wang Guanxi’s Fund No. 1 holds 60,000 short positions on the Hang Seng Index. The position is 19950. The current floating profit is 950 points, with a total floating profit of HK$2.85 billion. The net account value is as high as HK$9.35 billion.

not bad.

The stock prices of listed companies under the Hong Alliance, Huang Group, and Zheng Group rose slightly, and the black shirt hedge funds still had a profit of more than HK$8.5 billion on their books.

Last night, the U.S. stock market did not fluctuate much and rose slightly!

American International Group AIG's stock price rose $4, from $40.00 to $43.00 per share, and Blackshirt Insurance had a floating profit of $1.725 billion.

The share price of Washington Mutual rose by US$0.2, from US$1.60 per share to US$1.80 per share, and Blackshirt Investment Bank had a floating profit of US$144 million.

It's all very stable at the moment, with no big changes happening, just waiting for the stock market to continue to collapse.

The global focus is now on the US$700 billion rescue plan of the White House. This US$700 billion proposal is being debated in Congress.

[122 U.S. economists wrote to Congress opposing U.S. Treasury Secretary Paulson’s $700 billion rescue plan]

There are three reasons.

First, its fairness. This plan uses taxpayer money to subsidize investors.

Investors need to be able to withstand losses in order to create profits despite risks.

Not every business collapse affects system risk. The government should ensure a well-functioning financial industry and be able to lend to some reputable borrowers. Without a rescue plan, the choices of many investors and institutions have proven to be very unwise.

Second, its ambiguity. Neither the new agency's mission nor its oversight is clear.

If a taxpayer purchases some non-cash assets or opaque assets from a problem seller, the time, occasion, and method of the purchase should be made very clear beforehand, and carefully monitored in the future.

Third, its long-term effects. If the plan is enacted, its impact will affect an entire generation of Americans. For all the difficulties the United States faces now, America's dynamic and innovative personal capital markets have brought the country unparalleled prosperity.

Essentially, to abort short-term crashes,

And weakening these markets is very short-sighted.

Huang Shaokai couldn't help but ask: "Damn it, can this US$700 billion rescue plan be passed?"

Recently, this matter has been mentioned in the news every day. He is not sure whether the US$700 billion can be released. He is confused.

Zhang Dexi said: "It is possible to pass by holding on to the existing situation."

Now Bernanke of the Federal Reserve and US Treasury Secretary Paulson are pushing for this US$700 billion rescue plan in order to avoid a larger financial crisis. Just like when you are sick, you must get timely treatment. He thinks it will pass With this $700 billion rescue plan, after all, everyone needs to eat.

Wu Zhankun also said: "I also think it will pass. If the financial crisis breaks out and is not suppressed in time, then a broad financial crisis will break out, and by then the global financial system will not know what it will be like."

He shared the same view as Zhang Dexi and felt that it would definitely be passed, and very soon, because if it didn't happen quickly, the financial crisis would really hit the whole world.

Bai Weiqiang also said: "Yes, if we don't come out, the financial crisis will continue to intensify."

Wang Juehao sighed: "The Bank of East Asia in Hong Kong suffered a run yesterday. This is really a terrible thing."

Wu Zhanhai also said: “I don’t know when the US$700 billion will be available.”

Lu Jianyan also said: "It should be soon."

Ryan Smith also said: "Once such a huge amount of money is injected into the financial market, it will be huge good news, and the stock market will definitely skyrocket."

Counting 700 billion US dollars, that is 5.4 trillion Hong Kong dollars and 4.75 trillion yuan. This will be a huge amount of money. Once injected into the financial market, the stock market will skyrocket, but how many days it will skyrocket is unknown.

Guan Zhenyi also said: "All kinds of news are flying all over the sky now, and many media are saying that a US$700 billion rescue plan will be passed soon."

Lin Jiyang also said: "Now the whole world is waiting for the US$700 billion bailout bill to be passed."

Wang Guanxi smiled and said: "This US$700 billion rescue plan may always be blocked, so just watch it quietly."

Then Wang Guanxi asked: "Has the 8 billion Hong Kong dollars in Fund No. 2 been converted into US dollars?"

Wang Guanxi made huge profits by buying the Hang Seng Index at the bottom, so he withdrew HK$8.75 billion and spent HK$750 million. He also established an umbrella foundation and set up an umbrella security company. Now he still has HK$8 billion in spare funds. Wang Guanxi doesn’t want to sit idle in the account of Fund No. 2. He wants to use it to make money and short-sell American banks.

"BOSS, it has been converted into US dollars, totaling 1.032 billion US dollars." Li Guangyu asked: "Should we short Citibank or Wells Fargo first tonight?"

Wang Guanxi asked, "Now that the shares of Citibank and Wells Fargo have been agreed upon?"

Before, we asked them to borrow stocks from Wells Fargo, Citibank, Bank of America, and even Hang Seng Bank and HSBC!

Wang Guanxi not only plans to short U.S. banks, but also shorts major banks in Hong Kong. Hang Seng Bank and HSBC Hong Kong are both banks under the HSBC Group, and they also have the opportunity to make big money.

Of course, you can also directly short HSBC Bank of the United States, but Wang Guanxi still plans to short HSBC Hong Kong Bank, and the transaction volume will be larger.

At this time, Wu Hongsheng said: "Yes, BOSS, it has been agreed. The Industrial Trust and Investment Bank of India plans to lend us shares of Wells Fargo Bank, and the Indian Private Pension Plan plans to lend us shares of Citibank. The monthly interest is 1.5 %”

"Very good." Wang Guanxi nodded, and then opened the stock price charts of Wells Fargo and Citibank.

Wells Fargo's stock price closed at $37.55 per share on the last trading day, and is still on the rise.

“The stock price of Wells Fargo is still quite strong and there is room for growth, so there is no rush to short it!”

Citibank's stock price closed at $220.00 per share last trading day.

Citigroup is usually the abbreviation of Citigroup. In 1955, Citibank of New York merged with First Bank of New York and was renamed First Citibank of New York. In 1962, it was changed to First Citibank. In 1967, it was changed to First Citibank. Citicorp.

Headquartered in New York. In 1998, it merged with Travelers Group to form Citigroup, becoming the world's largest financial services company.

Citigroup is the first financial group in the United States to integrate commercial banking, investment banking, insurance, mutual funds, securities trading and many other financial services businesses.

In 2008, its total assets exceeded US$2 trillion, which amounts to HK$15.5 trillion in assets, which is very scary.

Citibank's stock price had just risen for a few days, and now it was a good time to go short, so Wang Guanxi said: "Let's short Citibank Group tonight and borrow shares from an Indian private pension fund."

Blackshirt Insurance Company and Indian private pension funds have also been friends for a long time. Everyone is very familiar with Fannie Mae and American International Group.

It is not an exaggeration to say that we are old friends. This Indian private pension can give me a lot of money.

"Yes, BOSS" The horses quickly went to execute it.

The Hong Kong office of this Indian private pension fund is located in the Industrial Trust and Investment Bank of India Hong Kong Building.

Soon Wu Zhankun took his lawyer to the Hong Kong office of India Private Pension.

Wu Zhankun signed an equity agreement with Nehru. Currently, the equity of Black Shirt Insurance Company is still mortgaged with the Indian Private Pension Company because of the last short selling of AIG Group. Nehru smiled and said: "Mr. Wu, we have a happy cooperation. I hope you will black shirt Shirt Insurance Company can win big on Citibank Group!"

"Don't worry, we will strictly abide by the confidentiality agreement and will not disclose your plan to short Citibank to any financial institution."

Wu Zhankun looked at Nehru's hypocritical appearance and cursed him in his heart, but with a slight smile on his face, he said: "Mr. Nehru, I believe in your integrity."

The two looked at each other and smiled, saying nothing.

Wu Zhankun knew that Nehru would definitely reveal the news that Blackshirt Insurance Company was shorting Citibank Group to other financial institutions, such as Industrial Trust and Investment Bank of India, Tata Group, or other international financial institutions in India.

And Nehru also knew that Wu Zhankun knew that he would reveal the news that Blackshirt Insurance Company was shorting Citibank Group.

But neither of them said anything and pretended not to know.

This time, Blackshirt Insurance Company borrowed 5 million shares of Citibank Group on behalf of Fund No. 2. The price was US$220 per share and the value was US$1.1 billion. The interest rate was 1.5% per month, which is US$16.5 million. In total, HK$127 million.

The No. 1 Fund only held US$1.03 billion, but Nehru of India was also very generous, and the shortfall of US$70 million did not require that asset to be used as collateral.

"Mr. Nehru, I hope we can continue to cooperate."

"Haha, Mr. Wu, I think so too. Let's keep working together."

Although the two shook hands in a friendly manner, they both wanted to strangle each other to death.

After Wu Zhankun left, Nehru hurried to Sandeep Batra's office and laughed: "These Chinese pigs have already signed the agreement, and we are just waiting for them to enter the pig cage."

Sandeep Batra said excitedly: "Damn it, America's $700 billion bailout will definitely come out this time. Take this opportunity to kill them!'

Nehru also nodded and said: "Yes, the US$700 billion in bailout funds will definitely be released, and the Federal Reserve will also cut interest rates by then. This black-shirted insurance company dares to short-change Citibank Group's historical position. It is simply desperate!" "

Time flies by.

At 9:30 p.m., the U.S. stock market opened.

Shares of Citibank Group jumped $5, opening at $225 a share!

Huang Shaokai asked: "BOSS, Citibank's stock price is quite strong. It has jumped by 5 US dollars. Should we wait until the stock price reaches 230 US dollars per share before shorting?"

Zhang Dexi also said: "The stock price of Citibank Group is rising now, and there are many people buying it, so maybe we can short it!"

Wang Guanxi shouted: "Then go short now!"

"Yes, BOSS" Huang Shaokai, Wu Zhanhai and others began to short.

5 million shares is not too much.

10,000 shares at a time!

10,000 shares, that’s also worth $2.2 million.

Citibank Group's stock price began to fall amid public short selling.

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At this moment, Nehru and Sandeep Batra were drinking tea at the Industrial Trust and Investment Bank of India.

Nehru saw Citibank Group's stock price falling so fast and felt a little impatient. He naturally knew that the Chinese were shorting Citibank Group, so he said: "Sandeep Batra, you can buy it. Don't let it go." These Chinese people have started the selling rhythm, and when the time comes, a large number of selling orders will appear, which will not be good."

He didn't expect that the man from the black-shirted insurance company would frantically sell Citibank Group's shares as soon as the stock market opened. The stock price fell really fast. To be honest, he felt a little panicked.

Because when the bankruptcy of Lehman Brothers caused the stock market to plummet and bank stocks to plummet, Indian private pension funds also bought 5 million shares of Citibank at US$136 per share, spending US$680 million.

When the stock price was US$220 per share, it was worth US$1.1 billion, with a floating profit of US$420 million.

But the black-shirted insurance company is smashing the market, causing the floating profit on the books of India's private pension funds to decrease at a visible speed. He is afraid that the black-shirted insurance company will set the pace and Citibank's stock price will fall below 200 US dollars per share. Not good.

Don't ask why!

He was just worried.

Sandeep Batra put down his tea cup and said with a faint smile: "Don't worry, Nehru, this Chinese has already entered the pig cage. No matter how much he jumps in the pig cage, it will be useless. By then, the US White House will provide 700 billion US dollars to rescue the market." , the Federal Reserve cut interest rates and released a large amount of funds. The stock market must have skyrocketed, and it would be strange if the black-shirted insurance companies did not die."

"I am not in a hurry to enter the market now. I just want to make these Chinese people proud, let them short-sell as much as they want, and use up all the bullets in their hands. Then I will enter the market to buy and push up the share price of Citibank Group. You Don’t worry, other investors and retail investors in the market will not be led by black-shirted insurance companies.”

Nehru breathed a sigh of relief and said, "Then I'll wait for you to take action and kill these Chinese people."

"Don't worry, we have lost several times this time, and we won't fall into their tricks like before!" Batra is also a person who can learn lessons. This time, he is not in a hurry at all. He will wait for the Black Shirt Insurance Company to finish their tricks. , he takes action again.

Time passed, and after Blackshirt Insurance sold 5 million shares, Citibank Group's stock price fell to $200 per share. There was support here.

Nehru urged: "Come in and buy."

Sandeep Batra smiled and said; "Don't worry, wait another half an hour and see if they still have stocks to sell!"

"Okay then" Nehru kept an eye on the stock price.

Asking for monthly ticket