Chapter 677 The outbreak of the stock market crash

Time quickly came to November, and Hong Kong's economy still seemed normal. The Hang Seng Index was still rising, but the rate of increase seemed to be slower than what too many optimistic people had predicted before.

On the 7th, Fang Xianming came to report: "Mr. Yang, some of the stocks we hold have been sold. According to our early purchase amount, the total value of the cashed-out real estate stocks has netted more than 1 million yuan."

"Not bad, but these are just small amounts of money." Yang Wendong smiled and said, "What about Hutchison Whampoa? I think its market value has exceeded 70 billion Hong Kong dollars now, right?"

The stocks of some real estate companies will naturally be cashed out at the peak of the stock market. Some stocks that will not be well-known in the future will basically be fully cashed out. For stocks like Cheung Kong Holdings and Hop Hup Industries, the core goal is to hold them for a long time, so a certain amount of cash will be cashed out and then bought back after the stock price drops in the future.

Hutchison Whampoa is the most successful target of Changxing Financial's investment in the Hong Kong financial market in recent years. The early HK$2000 million plus the subsequent capital increase of less than million has now earned it a market value of more than ten billion. However, it is indeed not easy to cash out with so many stocks.

Fang Xianming said: "Hutchison Whampoa has cashed out almost 9 points of stocks. We have cashed out 5.6 million Hong Kong dollars, and there are 8 points of stocks left. Now we are selling them every day. It is estimated that it will take half a month to a month to finish them."

"Such a fast speed, has no impact on Hutchison's stock?" Yang Wendong asked back.

When the Hang Seng Index was around 1400, Yang Wendong arranged for Fang Xianming to start cashing out Hutchison Whampoa shares, but the subsequent increase in the Hang Seng Index was too fast, and too much capital entered the market in this last crazy period.

Fang Xianming smiled and said, "It's not a big problem. The market itself is very hot right now, too much money has flowed into the stock market, and Hutchison Whampoa is a stock that investors are very optimistic about, so many people are buying it.

In addition, Qi Dezun was also starting to build up his personal reputation, tying himself to Hutchison Whampoa. At the same time, he was desperately pushing up Hutchison Whampoa's stock price and exaggerating Hutchison Whampoa's future earnings, just so that he could borrow more funds after the stock price soared;

In addition, Changxing Media also fully cooperated with him, and TVB also interviewed him many times. While Qi Dezun paid to praise himself, he also allowed us to successfully cash out gradually without causing too much suspicion. "

"Okay, it looks like we can cash out about 1 billion Hong Kong dollars." Yang Wendong smiled and said, "Finance is really a money-making business."

Over the years, several core subsidiaries of Changxing Group have earned more than HK$1 billion, but this is also the result of the hard work of tens of thousands of people, the strategic vision of Yang Wendong, a time traveler, and his special inventions.
But with a slight combination of finance and real estate, this result can be achieved, which is simply terrifying.

However, this is naturally the result of the Prophet's Golden Finger and the massive support from Changxing Group. Otherwise, it would not be easy to choose a suitable one among thousands of stocks.

Fang Xianming smiled and said, "It was also Yang Sheng who had a good vision and chose Qi Dezun. The return now is so high that even on Wall Street, it would be one of the top investments."

"This investment return is indeed very high, but compared to Hutchison itself, it is nothing." Yang Wendong smiled and asked, "How much debt does Hutchison have now?"

Fang Xianming replied: "According to Hutchison's current financial reports, Hutchison's total debt has exceeded HK$30 billion over the years, and many of these debts are also mortgaged with stocks;

If the Hang Seng Index falls, or the value of the real estate market falls, Hutchison will inevitably face the problem of insufficient collateral, which will be the best opportunity for us to acquire Hutchison."

Qi Dezun is indeed very capable, but no matter how capable a person is, once he chooses the wrong direction, he will only lose more miserably;

They blindly believe that Hong Kong's economy will get better and better in the future, and then in order to become Hong Kong's top tycoon, they blindly borrow money to expand themselves. This is naturally no problem when the market is getting stronger, but once there is a problem in the market, it will be a thunderbolt.

As the head of a financial group under Yang Wendong, he naturally knew that his boss supported Hutchison not only for economic returns, but also to use Qi Dezun's British identity to allow him to acquire various British groups that were inconvenient for Chinese capital to target, and then swallow them all up when the time was right.

Yang Wendong nodded and said, "Yes, as long as the timing is right, the Hang Seng Index has been rising slowly in the past two weeks. I estimate that in addition to us, there are other capitals in the market that are withdrawing;
You should also cash out as soon as possible and obtain sufficient funds so that we can cope with Hutchison’s huge debts in the future.”

Of course, when the market collapses, it is a golden time to acquire some companies, but since you have acquired them, you naturally need to deal with the debt problems of these companies;
He is naturally confident about the future of the real estate market, but other shareholders are not necessarily so. These people are basically short-sighted. In the past, when Qi Dezun held a shareholders' meeting, excited shareholders even demanded that Hutchison Whampoa go bankrupt and liquidate.
Therefore, only by having sufficient funds in hand can he stabilize a large number of shareholders and allow him to take over Hutchison Whampoa safely, or even fully privatize it. All of these require money. If the cash out is not enough, he will have to use his other funds.

"Yes, Mr. Yang." Fang Xianming agreed.

Soon it was the end of November, the Hang Seng Index gradually rose at a slower pace, but it was still rising, and then successfully passed 11 points;
Yang Wendong also learned that Fang Xianming had successfully cashed out, and he was relieved. After all, history had changed, and even he was not completely sure.

Now, all we have to do is wait for the stock market crash to come.

At a desk in the Hong Kong Stock Exchange, many people are queuing up to exchange something. "I really lost a lot of money. When I exchanged my Dairy Farm shares for Hong Kong Land shares, the value of Hong Kong Land shares was 18 yuan. Now the value of Hong Kong Land shares is only 7 yuan. I lost more than half of it." A stockholder was talking to others, gritting his teeth.

"Yeah, me too. I should have sold it to Sir Zhou Xinian earlier." Someone else also complained;

This resonated with many people around him;

When Hong Kong Land was drinking milk, countless milk shareholders went to exchange shares with Hong Kong Land because they were optimistic about the future of Hong Kong Land. As a result, Hong Kong Land's shares were cut in half in half a year, even though the Hang Seng Index continued to rise.

Little do they know that the high share price of Hong Kong Land was deliberately created by Hong Kong Land Group. However, everything was legal and a transaction that was consensual. Now they can only accept the loss.

The Hutchison Whampoa shares that were exchanged at the beginning could not be obtained immediately, and one had to wait for half a year. Now that the time has come, naturally more people have come to exchange Hutchison Whampoa shares.

"Damn it, I will cash out the shares immediately after I get them, and then buy Hutchison Whampoa shares." Another person said: "Looking at the current situation, Hutchison Whampoa may surpass Hong Kong Land and become the largest listed company in Hong Kong."

"It feels like there is such a trend." Another person said: "Qi Dezun acquired Hong Kong Electric at such a small price, and all shareholders benefited from it;
The previous operation of Hong Kong Land offended all shareholders. I think now that they can cash out, a lot of people will sell, and the stock price will inevitably fall more sharply in the future. It may be safer to switch to Hutchison Whampoa shares."

"Um"

Time soon came to December, and the Hang Seng Index entered a very slow growth period. The market value growth of stocks of many listed companies began to decline. The stocks of Swire Properties and Jardine Matheson Holdings even fell a bit. Only Hutchison Whampoa's stock was still rising, although the increase was not as high as before.

Inside the Hong Kong Land Development, a group of employees are nervously checking stocks and exchange coupons. A large number of shareholders are now coming to exchange the stock exchange coupons that Hong Kong Land Development issued half a year ago, which naturally increases their work pressure. These stocks and exchange coupons must be the same in amount and quantity, otherwise something big will happen.

"Huh?" After a young female employee touched a voucher, she suddenly felt something was wrong. She picked up the paper in her hand and looked at it carefully for a while. Then she nudged the person next to her with her elbow and said, "Sister Zhang, look at this voucher. Why do I feel it is different from the others?"

"Different, what does that mean?" Sister Zhang was stunned for a moment, then took the paper and looked at it carefully.

The young woman said, "I'm not sure. I used to work in a bank and I was a ticket inspector. Although the material of this exchange voucher is different from money, I still have a sense of different papers. This one seems to be different from the other exchange vouchers."

"Something seems to be wrong." Sister Zhang also felt something was wrong and said, "I'll send it over to check the codes. These codes all have corresponding numbers."

Henry Keswick had just finished his rest at the headquarters of Hong Kong Land when he saw an assistant hurriedly walk in and said, "Mr. Keswick, this is bad. A lot of Hong Kong Land's stock exchange certificates have been found to be fake."

"Fake?" Henry Keswick stood up quickly and asked, "How many were found?"

The assistant replied: "It's not certain yet. The financial department has found more than a dozen of them. The exchange also found one this morning. The police have been called to arrest the person."

"Who told you to call the police?" Henry Keswick was almost angry to death. Wouldn't calling the police cause panic?

Originally it could have been suppressed, but now it must have been known to the whole of Hong Kong;

As he speculated, when the police showed up, everyone at the Hong Kong Stock Exchange knew that the Hong Kong Land stock exchange certificates were fake. However, the spread of news would also be distorted, and soon the rumor spread that the Hong Kong Land stock was fake; even the stocks of many companies were fake.

As soon as the news came out, panic spread and everyone wanted to sell their stocks quickly.

Ordinary people don’t know whether the stocks they hold are also fake, but this is not important, because even if the stocks they hold are real, if too many people sell them, it will inevitably cause the stock price to plummet. Naturally, no matter whether they are real or fake, they have to sell them first.
Too many people panic-sold, which naturally caused a major change in market direction, and the Hang Seng Index immediately fell below 1900 points;
Financial journalists and financial commentators immediately seized the opportunity to publish or comment on this matter. By the next day, almost all stockholders in Hong Kong knew about this matter and knew that countless people were selling their stocks.
As the saying goes, the first to cash out wins, so a more panic selling began. The four major exchanges were unable to answer the phone in time, and the crowds blocked the road outside the door.

The Hang Seng Index fell rapidly and a stock market crash broke out.

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(End of this chapter)

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