Rebirth of the Financial Crisis Sweeping the World

  Chapter 41 41 Bear Stearns Crisis makes both happy

  Go home at 7pm and had dinner.

  Wang Guanxi opened the stock chart of Caijing Toys.

  Today is Monday, and the stock market closed early.

   Its stock price fell from 0.70 to 0.65 Hong Kong dollars per share, and its market value shrank from 840 million Hong Kong dollars to 780 million Hong Kong dollars.

  "Be sure to wait for it to fall below HK$0.60 per share and buy the bottom"

   "It's not the time yet!"

  He must wait until the stock price of Caijing Toys drops below 0.60 yuan, and then enters the market to buy the bottom. If it does not fall below 0.60 yuan, he will not enter the market.

  Be sure to hold back, not rush.

   Then he looked at the world current affairs news again, and the subprime mortgage crisis was intensifying.

  On March 13, the content of Goldman Sachs’ internal emails came out, and investors and hedge funds withdrew their investments from Bear Stearns as if flash floods broke out. At this time, Bear Stearns CEO Alan Schwartz hurried back to the New York headquarters and accepted an interview with CNBC, insisting that there is no pressure on liquidity, not to mention the liquidity crisis.

  On March 14, Schwartz returned to New York to convene a high-level meeting and had to face the problem of loss of liquidity. Schwarz contacted **** CEO Jamie Dimon that night in despair.

  On March 15, Bear Stearns was run wildly.

   On March 16, Bear Stearns’ stock price has fallen to $2.84 per share.

On March 17, Morgan Bank announced that it would acquire Bear Stearns at a price of US$2 per share and a total price of US$236 million in cabbage. This purchase price was 1% of the market value of US$24 billion in the past. The shareholders of the Stearns Company unanimously opposed it and were unable to agree, seeing Bear Stearns going bankrupt.

   "Oh, Bear Stearns is over"

  Founded in 1923, Bear Stearns is the fifth largest investment bank on Wall Street. It is a leading financial services company in the world. It provides high-quality services for governments, enterprises, institutions and individuals. It has set a continuous profit record for 83 years!

Bear Stearns invested too much in the mortgage debt and derivatives market. As an underwriter in the U.S. bond market and an issuer of derivatives, when the subprime mortgage crisis broke out, U.S. real estate was severely impacted, and Bear Stearns was severely affected. Clients withdrew their funds one after another. Just the day before yesterday, hedge funds withdrew $17 billion in cash, which plunged Bear Stearns into a liquidity crisis. The stock price fell into a dog, and bonds defaulted. Many clients around the world also lost heavily.

  Wang Guanxi recalled various events in the subprime mortgage crisis and major events in the future, planning the blueprint for wealth in his mind.

In the future, he will use Hong Kong as a springboard to establish his own invisible consortium around the world. One day, he will become the top power figure behind the scenes of the world, just like Rockefeller, the Morgan family, Bill Gates, Warren Buffett, and Forbes list. On the super rich, they are all the characters on the stage before, and the real big boss behind the world is the real awesome.

  On September 14, the financial crisis swept the world. He would short the Hang Seng Index and dig out his first pot of gold, at least several billion.

  "There is still half a year. Come on and make money. Find a way to raise funds. It's better to have more than 100 million Hong Kong dollars."

  Wang Guanxi entered his dreamland with anticipation.

   Unlike Wang Guanxi, Hong Kong, Wing Hang Securities Co., Ltd. is still brightly lit, and they are trading US stocks.

Because of Bear Stearns, Wing Hang Securities Co. has suffered huge losses recently. Mortgage bonds defaulted, Bear Stearns’ stocks plummeted, and Wing Hang Securities’ investment in the United States suffered a miserable loss. Bear Stearns was involved. As a result, the company’s investment cannot be recovered, and the company’s cash flow is also in trouble. In addition, many customers have to redeem their investment products due to the subprime mortgage crisis. Their company has also fallen into a temporary liquidity crisis because of many investments. They are long-term investments, which are difficult to recover in a short time.

In the securities department, Feng Shaokun was full of sadness. This time, he was responsible for the investment in the United States, protecting Bear Stearns's series of mortgage bond investments. This time he was finished, and Wing Hang Securities fell into a crisis. He scolded him and asked him to quickly sell Bear Stearns' stock, but he didn't plan to sell Bear Stearns' stock. After so much loss, would it make sense to sell it? We can only bet that Bear Stearns was rescued.

  "Manager, a few large customers requested to redeem the product, our securities company's cash flow is not enough to pay"

   "Should we sell some assets?" asked an investment director named Liu Yongfeng.

  Feng Shaokun fell into entanglement and contradiction.

  Thinking about him and said: "Sell the stocks of Hong Kong listed companies we hold."

   Liu Yongfeng asked: "Manager, also throw away Caijing toys?"

  Feng Shaokun took a look at Caijing Toys’ stock, “Don’t sell it for now, keep it.”

   Then he continued to order: "All the stocks of other companies are thrown away."

  "Selling will begin tomorrow, first make up the company's cash flow."

  Liu Yongfeng nodded: "Yes, the manager"

  ··

  On March 18th, the Hong Kong stock market opened on Tuesday.

  The Hang Seng Index plummeted by 300 points.

  Today, Asian stock markets also fell collectively.

   Caijing Player Company’s stock also plummeted from 0.70 yuan per share to 0.60 yuan per share.

  Wang Guanxi is very happy to see that Caijing Toys’ share price has finally fallen below 0.6 yuan per share.

  "The market will open tomorrow, you can try to buy the bottom!"

  He clearly remembers that its stock price will rise above 1.5 yuan per share before the end of this month!

   Then he returned home happily and continued to make up for his homework with Shu Jinghan.

  ··

  As for Yongheng Securities Company, Feng Shaokun looked at the stock price of Caijing Toys Company, which fell by 14% today. He looked a little gloomy and regretted not selling the stock today.

   Liu Yongfeng asked carefully: “Manager, Caijing Toys’ stock has fallen by 14% today, do we still hold it?”

  Feng Shaokun thought for a while: "Sell out a branch."

   "Ok, manager"

  The next day, March 19, Wednesday.

  Wing Hang Securities Company began to sell the shares of Caijing Toys Company, which caused the stock price of Caijing Toys to fall all the way.

   quickly fell to 0.50 yuan per share, the stock price fell 16%.

  In just 20 minutes, the stock price has fallen so much that it cannot withstand the sell-off.

  As for the Sao Paulo School, Wang Guanxi watched this scene, he was happy in his heart, and immediately began to buy the stock of Caijing Toys.

  500,000 shares!

  500,000 shares!

  ····

  Buy 8 million shares in the morning and 2 million shares in the afternoon, taking over many stocks sold by Wing Hang Securities.

  Today, the stock price of Caijing Toys first fell to 0.40 yuan per share, but was pulled up by Wang Guanxi and rose to 0.60 yuan per share.

  He bought a total of 10 million shares, with an average position of 0.50 yuan per share, worth 5 million Hong Kong dollars.

  Because Wang Guanxi is a client of Yongheng Securities Company, Feng Shaokun also knew that Wang Guanxi had bought the stock of Caijing Toys, and Wang Guanxi was a high-ranking picker, which made him very happy, so he called Wang Guanxi specifically.

  Wang Guanxi learned that Feng Shaokun had sold so many stocks at the bottom, and let him buy so many stocks at the bottom. Feng Shaokun was a **** assist, and Wang Guanxi was also very happy.

  (End of this chapter)