Short Selling Henglong (3)

"The other side added at least another 11 million shares in short positions today."

At two in the afternoon, the atmosphere in the Small Meeting Room of Henglong Group was grave.

Zhao Jianguo sat at the head of the table, trading data spread out before him.

Lin Wanqing stood before the projection screen, her face pale.

"From yesterday to today, cumulative abnormal sell orders have reached 26 million shares, accounting for 6.5% of total share capital."

Lin Wanqing's voice trembled slightly. "The notional principal is approximately 278 million. And judging from the trading pattern, the other side has used at least three financial institutions as channels."

"What about our capital consumption?" Zhao Jianguo asked calmly, but those who knew him understood that beneath that calm lay a volcano on the verge of eruption.

"We've deployed a cumulative 130 million in Market Defense Funds and taken up approximately 13 Million Shares."

Deputy Director Chen Qiming from finance took over. "There's currently around 70 million remaining in the accounts. If the other side keeps up this level of selling pressure..."

"Funding isn't the problem." Zhao Jianguo cut him off. "I'll move another 100 million over. The problem is—"

He paused, his gaze sweeping across the three people present. "Who exactly is the other side? What do they want?"

The meeting room fell silent.

After hesitating for a moment, Liu Mingyu spoke up. "Chairman Zhao, I had people check all brokerage research reports from the past three months. Only Three Companies, all small brokerages with limited influence, were bearish on Henglong or downgraded its rating. And short selling on this scale definitely isn't based on public information..."

"You mean they have something on us?" Zhao Jianguo's gaze sharpened abruptly.

"I can't be certain. But... the timing is too perfect."

Liu Mingyu forced himself to continue. "The Q3 Report was just released, and the debt figures don't look good. Rumors of tighter bank credit started circulating last week. And also..."

"Enough." Zhao Jianguo raised a hand to stop him.

He closed his eyes and took a Deep Breath.

Every clue pointed in the same direction: someone knew about his recent financial pressure, knew he wanted to consolidate the shareholding, knew the company's true debt situation...

And that person was using this information to carry out a precise strike against him in the market.

"Continue defending the market."

Zhao Jianguo opened his eyes and made his decision. "No matter who the other side is, no matter what they want, Henglong's stock price cannot collapse. Once it does, the banks will Withdraw Loan, Suppliers will demand payment, bonds will default... We can't bear the chain reaction."

"But, Chairman Zhao," Lin Wanqing could not help but speak up.

"If the other side continues Short Selling, the funds we need to prepare may exceed 300 million. It could even reach 500 million..."

"Then prepare 500 million!" Zhao Jianguo slammed his palm onto the table. "I, Zhao Jianguo, built everything I have from nothing. What storms haven't I weathered? They think they can crush me with short selling? Wishful thinking!"

"I have a suggestion!" Liu Mingyu suddenly said.

"Go on!"

"Why not redeem the pledged shares? That would be equivalent to cutting off the root of the short selling!"

The meeting room became utterly silent.

Everyone knew that Zhao Jianguo had pledged half his shares, and part of the fierce short selling today was using the very shares he had pledged.

But lifting the pledge would require more than a billion Hong Kong Dollars in one go, and Zhao Jianguo would have to come up with the money himself.

The difficulty was self-evident.

Outside the window, dense fog completely Devoured the city skyline.

On Friday, Zhao Chen had been watching the market all day without making any major moves, selling only 500,000 shares.

He wanted to see how capable the other short sellers were without his involvement.

The result disappointed him.

There were still nearly Twenty Days until his father was taken away. He had more than enough time to complete his position-building.

Just after one in the afternoon, he received a message from Zhang Qingxue:

"The Xi Family's counterparties have all been confirmed. All remaining quotas can be deployed today:

Morgan Stanley: 8 million shares, Credit Suisse: 8 million shares, Limestone: 13 Million Shares, Goldman Sachs: 8 million shares.

A total of 37 million shares—enough to complete the plan.

But Zhao Chen, I must remind you once again: 58 Million Shares in Short Positions account for 14% of the Circulating Supply. If the stock price rises unexpectedly in any way, you will face catastrophic losses."

Zhao Chen replied, "I know. But today, I'm only watching the market. I won't make any moves."

"??"

Before Zhao Chen could reply, the call came in.

The moment he answered, Zhang Qingxue's urgent voice came through. "Why stop suddenly? We just gained the upper hand."

Zhao Chen walked to the window and looked at the faint River View beyond the dense fog, his voice steady.

"Aunt Zhang, do you know how fishing works? When you hook a big fish, you can't keep hauling hard. When it struggles violently, you have to loosen the line at the right time—let it tire itself out, and keep the rod from snapping."

He paused before continuing.

"Yesterday and the day before, we already drove the hook in deep. My father's side must be raising money at full force to defend the market. If I don't move today, there are three purposes."

"First, let them guess. The less they can figure out, the greater their internal friction."

"Second, see how much Selling Pressure the market itself has without us taking the lead. That will tell us how much Smart Money, besides us, is quietly pulling out."

"Third," Zhao Chen's voice was as calm as a scalpel, "and most importantly—make their Market Defense Funds strike empty air. Two or three hundred million sitting there costs them money every day. Yet they don't dare rashly push up the share price. They'll only grow more and more anxious. And anxiety leads to mistakes."

There was silence on the other end for several seconds, followed by Zhang Qingxue's sigh of realization and approval. "I understand... You're using time to drain their funds and patience. So when do we reel in the line again?"