Chapter 563: 548 HSBC gets slapped directly!

Soon,

The conference room door pushed open.

"Sorry... kept Mr. Guan waiting for a long time!"

"Mr. Ainuoer, gou yang gou yang."

Director Director Director Guan Zu Zu enthusiastically shook hands with the dog... uh, Ainuoer.

After some pleasantries,

The transaction negotiation "regarding the 5% shares of Dragonair held by HSBC" officially began.

Ainuoer sat at one end of the long table, facing Director Director Director Guan Zu Zu, with a trace of imperceptible arrogance at the corner of his mouth.

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

Director Director Director Guan Zu Zu tapped the table: "Mr. Ainuoer should be clear that 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% shares you hold."

He deliberately emphasized the tone of the three words "Chinese people."

Ainuoer's Chief Operating Officer, Shi Meilun, raised the corner of her mouth slightly after hearing Director Director Director Guan Zu Zu's words.

She crossed her arms in front of her chest: "What if we don't trade?"

Director Director Director Guan Zu Zu: "Since you accepted the invitation to this meeting, it means you were prepared to sell."

Ainuoer chuckled: "There is another possibility, which is wanting to see you all being self-righteous and finally having no way out and being angry."

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

Ainuoer: "It depends on your sincerity."

"Currently, our HSBC's valuation of Dragonair is 7 billion HKD; for 5%, that's 350 million..."

"However, if you really want to take it back, then naturally you have to increase the price."

"700 million HKD!"

"Pay the money, and take it away!"

Director Director Director Guan Zu Zu: "Hehe... Good calculation, doubling the price..."

Ainuoer leaned back in his chair: "You don't have to buy it. Dragonair is currently in the hands of your Five Star Group, and I am still very optimistic about it; it will definitely appreciate in the future."

Director Director Director Guan Zu Zu looked at this Ainuoer with a smile,

Internally,

This bastard is definitely intentionally trying to disgust people.

Just stuck on those 5% of shares, making Dragonair impure.

Director Director Director Guan Zu Zu increasingly agreed with Gao Gang's idea: punch him twice in the face and beat him into a pig-head face.

Currently,

Dragonair is actually in a dilemma; according to the law, HSBC's 5% shares cannot be forcibly acquired.

If it were after the handover, Director Director Director Guan Zu Zu could forcibly acquire them through judicial means.

But now it is the British Hong Kong government, and this path doesn't work.

There are also plans like poison pill plans, sunset clauses, bankruptcy liquidation, stock dilution, etc., none of which are suitable for the current Dragonair shares.

"Since you don't want to talk, then let's not talk..."

Director Director Director Guan Zu Zu stood up with a smile,

"However, after I go back, I will convene a board meeting to kick your HSBC out of the board..."

"And I will also kick all your HSBC people out of Dragonair..."

Ainuoer shrugged: "It doesn't matter, we don't need any management rights; we at HSBC just need to wait for dividends."

Director Director Director Guan Zu Zu sneered.

Dividends?

Dream on!

I will ensure that through financial means, I legally convert all profits into operating funds.

You won't get a single cent.

"Leaving~~~"

Director Director Director Guan Zu Zu stretched and walked out of the conference room.

Everyone followed Director Director Director Guan Zu Zu and left.

……

Downstairs,

Director Director Director Guan Zu Zu got into the black Chevrolet and instructed Wu Lianqian, who followed him into the car and sat beside him:

"Go back and investigate..."

"Which bank can be acquired, but don't leak the news yet; contact them with another identity..."

Ah Xing, who was driving: "Brother Zu, Five Star wants to open a bank?"

Director Director Director Guan Zu Zu: "Yeah, HSBC is too big; it's very difficult to shake it no matter what we do, the only other way is for us to also start a bank."

Although HSBC also bears the important functions of Hong Kong dollar banknote issuance (about 70%) and foreign exchange currency settlement in Hong Kong, financial functions (cash storage, loans) are still a very important part of HSBC, and also the part with the largest profit.

Wu Lianqian: "The only other way? So there is another way?"

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

This method is to privately print Hong Kong dollars and line one's own pockets.

In the black material provided by the financial secretary Peng Lizhi, every year HSBC, the Monetary Authority, the Financial Secretary, and the Governor all participate in splitting the money.

But thinking about it, the British Hong Kong government now wishes for Hong Kong to be as chaotic as possible; printing more banknotes and swallowing them themselves is a matter of course.

However, this evidence is useless.

At most, it would catch a few people from HSBC, and it wouldn't be any loss to the capital behind HSBC.

At most, the stock price would fall a little, and the reputation would be damaged a little.

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

"By the way, contact major banks and brokerages; I want to short HSBC... see if they are willing to lend..."

Here it must be explained,

Short selling, the first step is to borrow the stocks in advance.

And where are the stocks?

Brokerages, banks.

On the brokerage side, they hold HSBC stocks entrusted by clients (such as institutional investors, retail investors' positions), and they may also hold proprietary stock inventory themselves. Brokerages can lend these stocks to short sellers.

And banks? As large financial institutions, they naturally may also hold HSBC stocks (such as through wealth management, trust plans, etc.), and if clients use HSBC stocks for pledged loans, or if there is an agreement, the bank can temporarily dispose of these stocks and use them to lend to short sellers.

Wu Lianqian nodded: "Okay, I'll arrange it immediately when I go back!"

……

One hour later,

All major and minor banks and brokerages in Hong Kong, totaling more than 100, all received the offer from Five Star Group.

"???"

"Five Star Group wants to short HSBC Bank?"

In the previous three or four short-selling operations by Director Director Director Guan Zu Zu, these banks all lent out stocks.

The first time they lent, it was very quick.

The second time they lent, it wasn't so quick.

The third and fourth times, it became less and less quick.

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

So...

Why should I lend to Director Director Director Guan Zu Zu?

Why don't I operate it myself?

So, the last two times, the stocks Director Director Director Guan Zu Zu borrowed decreased significantly, and these banks and brokerages began to follow Director Director Director Guan Zu Zu's operations themselves.

And this time...

Director Director Director Guan Zu Zu wants to start shorting again?

Wait...

It's HSBC?

Director Director Director Guan Zu Zu wants to deal with HSBC?

Is this Director Director Director Guan Zu Zu crazy?

That's HSBC!

Many banks and brokerages began to become suspicious.

On one hand, Director Director Director Guan Zu Zu's past record—invincible!

On the other hand, HSBC—invincible!

So, they didn't know whether HSBC would win or Director Director Director Guan Zu Zu would win.

They hesitated.

However, they didn't dare to place bets themselves, but they could lend to Director Director Director Guan Zu Zu; they just needed to earn the interest themselves.

……

……

And this news soon reached the ears of HSBC.

"What?"

"Director Director Director Guan Zu Zu wants to short our HSBC?"

HSBC CEO Ainuoer's crystal wine glass fell to the ground with a "pop" and shattered, whiskey flowing all over the floor.

This glass of wine was still being drunk to celebrate having just dampened Director Director Director Guan Zu Zu's prestige.

Ainuoer's face carried a bit of disbelief and anger.

And—vigilance.

Director Director Director Guan Zu Zu's short selling, every time he could win!

So this time, it naturally couldn't be bluffing!

The secretary said with a solemn expression: "From the perspective of the short-selling mechanism, if Director Director Director Guan Zu Zu really wants to implement it, he will definitely try to borrow a large amount of stocks from banks and brokerages. We need to immediately contact the main securities lending institutions and apply pressure when necessary to prevent stocks from flowing into Director Director Director Guan Zu Zu's hands."

And Chief Operating Officer Shi Meilun said with a worried expression: "What I'm worried about is not just the direct loss caused by the stock price drop."

"Director Director Director Guan Zu Zu has considerable influence among the media and the public; if he successfully launches a short sale, public opinion will inevitably be unfavorable to us, and customer trust will also be shaken."

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

Ainuoer nodded after hearing this.

That's right, this Director Director Director Guan Zu Zu's folk reputation is too high; although HSBC is powerful, it still needs to be cautious.

Ainuoer said to the secretary in a deep voice: "You notify immediately, the financial department, immediately sort out the liquidity funds in our hands, evaluate how much can be invested to protect the market... the public relations department, contact all media, and TVB, to make a statement, highlighting our financial stability and future planning."

"Also, I want to personally meet with the senior management of the Hong Kong Stock Exchange to see if we can win some policy support to restrict this malicious short selling."

"Yes!"

The secretary left quickly to notify the various departments.

……

……

……

That night,

Central, a private club.

Inside a luxurious private room.

HSBC big boss Ainuoer was dressed in a crisp black suit, his posture upright, and he arrived here early.

Not long after, the CEO of the Hong Kong Stock Exchange also arrived.

"Welcome, CEO Colin!"

Ainuoer had an enthusiastic smile and walked quickly to shake hands with him.

Both sides were old friends.

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

Iron friendship!

After some enthusiastic pleasantries, the two took their seats.

They chatted about some family matters,

Ainuoer finally straightened his face and spoke: "CEO, I invited you here this time because HSBC has encountered a little trouble..."

Then he detailed the matter of Director Director Director Guan Zu Zu finding major and minor banks to borrow HSBC stocks to short sell.

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

Ainuoer put down his wine 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 has intricate connections with countless enterprises and investors. Director Director Director Guan Zu Zu doing this is clearly destroying the stable order of the Hong Kong financial market..."

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

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

The CEO of the Hong Kong Stock Exchange had a serious expression: "Mr. Ainuoer, but every decision of the Hong Kong Stock Exchange must be based on rigorous rules and procedures to ensure market fairness."

"As for prohibiting short selling, as a regulatory agency, before taking action, the Hong Kong Stock Exchange must have solid evidence... I hope HSBC can provide sufficient evidence."

If there is not enough evidence and they prohibit it directly,

The Hong Kong Stock Exchange is illegal.

Director Director Director Guan Zu Zu can directly conduct judicial impeachment.

Not to mention, Director Director Director Guan Zu Zu is now a legislative councilor, and it is very easy to make trouble at the Legislative Council meeting and create some ordinances to restrain the Hong Kong Stock Exchange.

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

Ainuoer didn't achieve his goal and could only take a step back: "Then can I implore the Hong Kong Stock Exchange to help increase the margin ratio for HSBC stocks."

What does margin ratio mean?

Explanation: Short selling 1 million stocks, 100% margin requires depositing 1 million, 150% requires depositing 1.5 million.

Doing this will lead to reduced capital usage efficiency (if the stock price falls by the same margin, profit decreases by 33%), increased opportunity cost (50% more capital frozen, reducing returns), and a lower loss line (losses hit bottom faster)...

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

The CEO of the Hong Kong Stock Exchange was full of righteousness: "Operations like arbitrarily adjusting the margin ratio are by no means a small matter..."

"But!"

"HSBC is too important for the stability of the Hong Kong financial market; if we sit idly by in the face of such blatant malicious behavior because of rule restrictions, and let the market really become chaotic, I'm afraid the Hong Kong Stock Exchange won't be able to stay out of it..."

"I'll hold a meeting when I go back..."

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

Resonant!

Stern and righteous!

After speaking, the two looked at each other and laughed loudly.

Soon, HSBC's Ainuoer presented a gift to the CEO; HSBC does things naturally very generously, and the CEO returned satisfied.

2 hours later,

Ainuoer sent the CEO of the Hong Kong Stock Exchange out of the club, the corner of his mouth slightly curled up.

Director Director Director Guan Zu Zu, oh Director Director Director Guan Zu Zu, I am quite curious, what do you have to short me.

……

In the next few days,

Major and minor banks one after another lent the HSBC stocks they could lend to Five Star Group.

They didn't dare to operate like this themselves; after all, HSBC's strength is not ordinary.

If they mobilized funds from all over the world to push up HSBC's stock price, and the short selling exploded, they would definitely suffer a bloody loss!

……

Director Director Director Guan Zu Zu's side also felt there was a bit of risk, so this time he directly united with Tycoon Zheng, Boss Lin, and Boss He from Macau, pooled 2 billion HKD, and borrowed another 2 billion with low leverage, acting as the banker together.

Within one day, he frantically signed contracts and ate up all the borrowed HSBC stocks.

The next day,

The Hong Kong Stock Exchange began to disclose this short-selling behavior of Five Star Group (according to regulations, if it exceeds 0.5%, it will be disclosed).

This day was Thursday.

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

"What?"

"Director Director Director Guan Zu Zu wants to short HSBC?"

"Is he crazy?"

"I don't know if he's crazy, but I know HSBC's stock price is going to fall."

"Damn, hurry up and withdraw!"

"Brothers, HSBC is going to lose its mother!"

"Wind is tight, run!"

Director Director Director Guan Zu Zu's short-selling reputation was won through battle after battle.

Mr. Li and Swire both lost to Director Director Director Guan Zu Zu and are still half-dead to this day.

Can HSBC escape?

Thus,

On this Thursday, one could clearly see HSBC's curve sliding rapidly.

It fell 5.2% in the morning,

And fell 4.5% in the afternoon.

Some firm leeks cried loudly.

"It's too scary, run quickly!"

"Damn it, not believing in the black hole power of Mr. Guan is this ending."

"Ran, ran, can't afford to provoke, can't afford to provoke!"

"HSBC coffin reserved!"

……

HSBC building side,

Big boss Ainuoer, looking at that falling curve...

Subway old man looking at phone. jpg

"???"

No, it's just a news announcement.

Why are you running?

You have to believe in the strength of our HSBC, hey!

(End of chapter) ===== CHAPTER 564 =====