Hong Kong Movies: You Hongxingzi, what the hell is the charity king?

Chapter 549 Chapter 548 HSBC was slapped in the face!

Chapter 549 "548" HSBC was slapped in the face!

quickly,

The door to the conference room opened.

"Sorry... I kept you waiting, Mr. Guan!"

"Mr. Enol, keep the dog."

Guan Zu enthusiastically shook hands with the dog... er, Ainol.

After some pleasantries,
Negotiations on the transaction regarding HSBC's 5% stake in Dragonair officially began.

Ainol sat at one end of the long table, facing Guan Zu, with a hint of arrogance on the corner of his mouth.

"Mr. Guan, you should know that Dragonair is Cathay Pacific's 'little brother'. As shareholders, we naturally don't want to give up this part of the shares."

Guan Zu knocked on the table and said, "Mr. Ainol should know that the Five Star Group has already said in front of all Hong Kong citizens that we Chinese should have our own airline, so I am determined to get the 5% stake in your hands."

He deliberately emphasized the word "Chinese".

The Chief Operating Officer, Mary S. A., who was standing next to Ainol, raised the corners of her mouth slightly after hearing what Guan Zu said.

Folding his arms over his chest, he said, "What if we don't trade?"

Guan Zu: "Since you have agreed to this meeting, it means you are ready to sell it."

Ainol chuckled: "There is another possibility, that is to see you guys being so self-righteous and angry when you are helpless in the end."

Guan Zu's eyes narrowed: "It seems that you don't want to talk at all."

Ainol: "It depends on your sincerity."

"At present, HSBC's valuation of Dragonair is 70 billion Hong Kong dollars. If it is 5%, it will be 3.5 million..."

"But if you really want to take it back, you'll have to pay more."

"7 million Hong Kong dollars!"

"Give me the money and I'll take it!"

Guan Zu: "Haha... good calculation, double the amount..."

Ainol leaned back in his chair and said, "You don't have to buy it. Now that Dragonair is in the hands of your Five Star Group, I am still very optimistic about it. It will definitely appreciate in value in the future."

Guan Zu looked at the Ainol in front of him with a smile.
heart
This guy is definitely trying to disgust people on purpose.

It is that 5% of shares that makes Dragonair impure.

Guan Zu increasingly agreed with Gao Gang's idea: he punched him twice in the face, turning his face into a pig's head.

Currently,

Hong Kong Dragon Airlines is actually in a dilemma. According to the law, it cannot forcibly acquire HSBC's 5% stake.

If Guan Zu returns, he can acquire the company through legal means.

But now it is the British Hong Kong government, so this approach will not work.

Plans such as poison pills, sunset clauses, bankruptcy liquidation, and stock dilution are not suitable for Hong Kong Dragon shares now.

"If you don't want to talk about it, then let's not talk about it..."

Guan Zu stood up with a smile.

"However, after I return, I will convene a board meeting and kick you, HSBC, out of the board..."

"We will also kick all of you HSBC people out of Dragonair..."

Ainol shrugged: "It doesn't matter. We don't need any management rights. We at HSBC just need to wait for dividends."

Guan Zu sneered.

Dividends?

Think beautiful!
I will ensure that all profits are converted into operating funds through financial means and legally.

You won't get a penny.

"Let's go~~~"

Guan Zu stretched and walked out of the meeting room.

Everyone followed Guan Zu and left.

……

downstairs,

Guan Zu got into the black Chevrolet and instructed Wu Lianqian who got in and sat next to him:

"Go back and investigate..."

"Which bank can make the acquisition? But don't let the news leak out yet. Contact them with other identities..."

Ah Xing, who was driving, said: "Brother Zu, are we at Five Stars going to open a bank?"

Guan Zu: "Yes, HSBC is too big. It is difficult to shake it no matter what we do. The only way is for us to set up a bank as well."

Although HSBC still undertakes the important functions of printing Hong Kong dollars (about 7%) and foreign exchange settlement in Hong Kong Island, the financial function (cash storage, loans) is still a very important part of HSBC and also the largest profit part.

Wu Lianqian: "The only two ways? So there is one more way?"

Guan Zu: "Yes, but it's useless to take it out now..."

The method is to privately print Hong Kong dollars and enrich themselves.

According to the dirty laundry provided by Financial Secretary Peter Pang, HSBC, the HKMA, the Financial Secretary and the Governor of Hong Kong all participated in sharing the money every year.

But think about it, the British Hong Kong government now hopes that Hong Kong Island will be as chaotic as possible, so it is only natural for them to print more money to consume themselves.

However, this evidence is useless.

At most a few people from HSBC will be arrested, and there will be no loss at all to the capital behind HSBC.

The most that would happen is a slight drop in the stock price and a slight loss in reputation.

So Guan Zu was not in a hurry to take it out.

"Oh, right, contact all the major banks and brokerage firms. I want to short HSBC... see if they're willing to lend me money..."

What needs to be explained here is that
When short selling, the first step is to borrow the stocks in advance.

And where are the stocks?
Securities firms and banks.

On the brokerage side, the HSBC stocks held by clients (such as institutional investors and retail investors) may also hold their own proprietary stock inventory. The brokerage can lend these stocks to short sellers.

As large financial institutions, banks may also hold HSBC shares (such as through wealth management and trust plans). If customers use HSBC shares as collateral for loans or have an agreement, the bank can temporarily control these shares and lend them to short sellers.

Wu Lianqian nodded: "Okay, I'll arrange it right away when I get back!"

……

after an hour,

More than 100 banks and securities firms of all sizes in Hong Kong have all received offers from the Five Star Group.

"???"

"Five Star Group is going to short HSBC?"

In Guan Zu’s previous three or four short-selling operations, these banks all lent stocks.

It’s my first time lending something out, and it’s a great pleasure.

The second time I lent it out, it wasn’t as pleasant.

The third and fourth times, it became increasingly unpleasant.

Because they all discovered that as long as Guan Zu targeted a target, the stock would definitely fall.

and so……

Why should I lend it to Guan Zu?

Why don't I do it myself?
Therefore, in the next two times, the number of stocks lent by Guan Zu decreased significantly, and these banks and securities firms began to follow Guan Zu's operations.

And this time...

Is Guan Zu going to start short selling again?

and many more……

Is it HSBC?
Guan Zu wants to deal with HSBC?
Is Guan Zu crazy?
That’s HSBC!

Many banks and securities firms began to become suspicious.

On the one hand, Guan Zu’s past record is - invincible!
On the one hand, HSBC – invincible!
So, they don’t know whether HSBC wins or Guan Zu wins.

They hesitated.

However, they didn't dare to place the bet themselves, but they could lend it to Guan Zu and earn the interest themselves.

……

And this news soon reached the ears of HSBC.

"what?"

"Guan Zu wants to short sell our HSBC?"

The crystal glass in the hand of HSBC CEO Arnold fell to the ground with a "pop" and shattered, and the whiskey spilled all over the floor.

This glass of wine was drunk to celebrate the fact that Guan Zu's prestige had just been severely damaged.

Ainol's face showed a bit of disbelief and anger, and - alertness.

Guan Zu short sells and wins every time!

So this time, it certainly can't be a bluff!

The secretary said solemnly, "From the perspective of the short-selling mechanism, if Guan Zu really wants to implement it, he will definitely try to borrow a large number of stocks from banks and securities firms. We need to contact major securities lending institutions immediately and exert pressure if necessary to prevent the stocks from flowing into Guan Zu's hands."

Chief Operating Officer Laura Cha looked worried: "I am worried about more than just the direct losses from the drop in share prices."

"Guan Zu has considerable influence in the media and among the public. If he succeeds in launching a short-selling campaign, public opinion will inevitably be unfavorable to us and the trust of our customers will be shaken."

"We need to prepare a public relations plan in advance to send positive signals to the market and stabilize people's hearts."

After listening to this, Enol nodded.

That’s right, Guanzu’s reputation among the people is too high. Although HSBC is powerful, it still needs to be cautious.

Ainol said to his secretary in a deep voice, "Notify the financial department immediately. They should sort out the liquidity we have on hand and assess how much we can invest to protect the market... The public relations department should contact the media and TVB to make an explanation, highlighting our financial stability and future plans."

"In addition, I will personally meet with senior executives of the Hong Kong Stock Exchange to see if I can get some policy support to limit this malicious short selling."

"Yes!"

The secretary left quickly to inform the various departments.

……

That night,

A private club in Central.

Inside a luxurious box.

HSBC boss Ainol arrived here early, wearing a neat black suit and standing tall.

After a while, the CEO of Hong Kong Exchanges and Clearing also arrived.

"Welcome, Mr. President Colin!"

Ainol smiled warmly and walked quickly towards him to shake hands.

Both parties are old friends.

You know, HSBC is an important part of the Hong Kong Stock Exchange.

Iron friendship!
After some warm greetings, the two took their seats.

We chatted about some daily matters.

Ainol finally said seriously, "Mr. President, I asked you to come here this time because HSBC encountered a little trouble..."

Then he recounted in detail how Guan Zu had approached various banks, large and small, to borrow HSBC shares for short selling.

"HSBC is a blue chip stock in Hong Kong and has a significant weight in the Hang Seng Index constituent stocks. Once the share price plummets, it will not only affect HSBC itself, but will also trigger systemic risks in the Hong Kong stock market..."

Ainol put down his glass, leaned forward, and emphasized his tone.

"Furthermore, HSBC has been rooted in the Hong Kong financial market for many years, with a wide range of business and close ties with countless companies and investors. What Guan Zu did is clearly undermining the stability and order of the Hong Kong financial market..."

"Therefore, I hope that the Hong Kong Stock Exchange can issue an order to prohibit Guan Zu's malicious short selling behavior."

The Hong Kong Stock Exchange has this authority...of course, it is only limited to malicious and illegal short selling.

The CEO of HKEX said with a serious expression: “Mr. Ainoel, every decision of HKEX must be based on strict rules and procedures to ensure market fairness.”

"As for the ban on short selling, the Hong Kong Stock Exchange, as a regulatory body, needs solid evidence before taking action... I hope HSBC can provide sufficient evidence."

If the evidence is insufficient, then ban it directly.

The Hong Kong Stock Exchange is illegal.

Guan Zu can directly conduct judicial impeachment.

Not to mention, Guan Zu is now a legislator and it would be easy for him to cause trouble in the Legislative Council and come up with some regulations to restrict the Hong Kong Stock Exchange.

Therefore, the Hong Kong Stock Exchange dare not act recklessly when facing Guan Zu.

Ainol did not achieve his goal, so he could only take a step back: "Can we ask the Hong Kong Stock Exchange for help to increase the margin ratio for HSBC stocks?"

What does margin ratio mean?

Explanation: To short sell 100 million stocks, a 100% margin requires a deposit of 100 million, and a 150% margin requires a deposit of 150 million.

Doing so will lead to lower efficiency in the use of funds (if the stock price falls by the same amount, profits will decrease by 33%), increased opportunity costs (50% more funds will be frozen, reducing returns), and a lower loss line (losses will bottom out faster)...

This condition is not difficult for the Hong Kong Stock Exchange.

The CEO of the Hong Kong Stock Exchange was full of righteousness: "Arbitrary adjustment of margin ratios is by no means a trivial matter..."

"but!"

"HSBC is too important to the stability of Hong Kong's financial market. If it sits idly by and does nothing about this obviously malicious behavior due to regulatory restrictions, and the market becomes truly chaotic, I'm afraid the Hong Kong Stock Exchange will not be able to stay out of it..."

"I'll have a meeting when I get back..."

"If it really causes turmoil, the Hong Kong Stock Exchange will act quickly in accordance with relevant rules and take necessary measures to maintain market stability."

Really impressive!

Right words and strict words!

After saying that, the two looked at each other and laughed.

Soon, HSBC Ainol presented a gift to the president. HSBC was naturally very generous in doing things, and the president returned satisfied.

2 hours later,

Ainol escorted the CEO of the Hong Kong Stock Exchange out of the club with a slight smile on his face.

Guan Zu, Guan Zu, I am very curious, why did you short sell me?

……

the following few days,

Banks of all sizes have successively lent their available HSBC shares to the Five Star Group.

They themselves don't dare to do so, after all, HSBC is very powerful.

If funds are transferred from around the world to push up HSBC’s share price and short selling goes bankrupt, the company will definitely suffer huge losses!
……

Guan Zu also felt that there was a bit of risk, so he directly joined forces with Zheng Daheng, Boss Lin, and Boss He from Haojing, and raised 20 billion Hong Kong dollars, and raised another 20 billion in low-leverage financing to act as the banker together.

All the borrowed HSBC shares were signed frantically and acquired within one day.

the next day,
The Hong Kong Stock Exchange began to disclose the short-selling behavior of Five Star Group (according to regulations, any short-selling exceeding 0.5% will be disclosed).

This day was Thursday.

When the Hong Kong Stock Exchange disclosed the information, all Hong Kong investors were stunned.

"what?"

"Guan Zu wants to short HSBC?"

"He's crazy?"

“I don’t know if this is crazy or not, but I know that HSBC’s share price is going to fall.”

"Fuck, retreat quickly!"

"Brothers, HSBC is going to die!"

"The wind is so tight!"

Guan Zu's short-selling reputation was earned through one victory after another.

Boss Li and Taigu were both defeated by Guan Zu and are still half dead.

Can HSBC hide?
then,