11 a. m. Henglong Building 28th floor
Chen Xi stared at the number 6.75 on the screen and let out a sigh of relief.
"It stopped." She said, "It happened to be stuck near the closing price of Friday."
Zhang Qingxue pushed up his glasses:
"6.72.6.75, three cents higher."
"Precise control." Chen Xi said, "This Shen Jue is really a ruthless person."
Zhao Chen said nothing.
He looked at the line across 6.75, thoughtfully.
Su Wantang asked softly, "Why didn't she take action today?"
Zhao Chen shook his head:
"No need."
He paused:
"She just needs to let the market know - she has locked up her chips. The market will do the rest."
Chen Xi took a breath:
"So today's rise was caused by retail investors?"
"Not entirely." Zhao Chen said, "Retail investors don't have this tacit understanding. It should be that some institutions understand and follow."
He pointed at the screen:
"Look at the position of 6.75, Trading Volume suddenly shrank. What does it mean?"
Chen Xi thought for a while:
"Explanation... at this price, no one wants to sell anymore?"
"Yes." Zhao Chen said, "Because everyone knows that this price is the closing price of Friday. At this position, Bulls and Bears is temporarily balanced. If it goes higher, new power is needed."
Zhang Qingxue asked, "As for the short side, there is no closing of the position today?"
"No." Chen Xi called up the data, "Today the amount of short-term buyers and closing positions is almost negligible. They are still carrying it."
Zhao Chen nodded.
"They are waiting," he said, "For follow-up funds from the donors, or for a reversal in market sentiment."
He paused:
"But they can't wait any longer."
Chen Xi's eyes lit up:
"You mean..."
Zhao Chen has no first answer.
He looked out the window and his eyes fell on the same tall building in the distance.
"After the market closes today, the brokerage firm will send a notice." He said,
"Henglong's securities lending balance has bottomed out. Starting tomorrow, you won't be able to borrow money through formal channels."
He turned around and looked at Chen Xi:
"At that time, those short sellers will have only one way to go."
Chen Xi's heartbeat skipped a beat:
"Buy to close the position."
"Yes." Zhao Chen said, "And when there is no counterparty, the position is closed by buying."
He paused:
"The price at that time was not decided by us."
The office was quiet for a few seconds.
Zhang Qingxue asked softly, "Then Shen Jue... when will she close the net?"
Zhao Chen shook his head.
"I don't know." He said, "It depends on how big her heart is."
He glanced at the clock on the wall.
Ten past eleven.
There is still a while until the close.
"That's it for today." He stood up, "You guys keep an eye on me while I go get something to eat."
Su Wantang followed:
"I'll accompany you."
The two walked out of the office.
Chen Xi and Zhang Qingxue looked at each other and both smiled.
On the screen, the line is still horizontal at 6.75.
Motionless.
While I was eating, Zhao Chen's mobile phone beeped.
He put down his chopsticks and picked up his cell phone.
There is an unread message on the screen, sent by Chen Xi:
"Someone from the brokerage just called me and asked if we have any plans to continue to increase our holdings."
He looked at the message and pondered for a few seconds.
Then he dialed Zhang Qingxue.
"Aunt Zhang, come to my office in ten minutes."
Ten minutes later, Zhang Qingxue pushed the door open and came in.
"Chairman Zhao."
Zhao Chen motioned her to sit down:
"When I signed Share Transfer Agreement before, I signed a supplementary pledge agreement with the brokerage--
You can use 200 million cash to supplement the pledge, or you can use the Share Pledge in your hand. Do you remember?"
Zhang Qingxue nodded. "Remember."
Zhao Chen said, "Contact that brokerage and tell them that I want to transfer the 200 million Hong Kong Dollar to formally complete the supplementary pledge.
Those 100 million shares are at my free disposal from today on."
Zhang Qingxue was stunned for a moment:
"Now? The stock price is going up. We can actually not be in a hurry..."
"It's not for pledge." Zhao Chen interrupted her, "It's for publicity."
He looked at Zhang Qingxue with calm eyes:
"When you contact the brokerage, let Liu Mingyu spread the news--
Zhao Chen used 200 million of its own funds to supplement the pledge and redeem 100 million shares."
Zhang Qingxue's eyes lit up.
She understands.
This is not trading stocks.
This is expected in operation.
What is most lacking in the market right now?
It's a coupon.
These are the coupons that people like Short Selling can use to destroy the market.
And where do the coupons come from?
It can only come from stocks pledged outside.
Zhao Chen Those 100 million shares, which were previously frozen in the hands of securities firms, can theoretically be loaned out Short Selling.
But now, he wants redemption.
From today on, these 100 million shares will no longer appear in the securities lending pool.
Once this news gets out--
Zhang Qingxue Quick deduction:
"There are already very few bonds circulating in the market, so if we take away the 100 million shares...
Those Short Selling people, even if they want to continue smashing, they have nothing to smash."
"Yes." Zhao Chen said, "And regardless of whether we can negotiate with the brokerage or not, the news must be released first."
He paused:
"I want everyone to know that Henglong coupons will become less and less."
Zhang Qingxue nodded and stood up:
"I'll do it right away."
At 2:15 in the afternoon, a certain investment group.
A message suddenly exploded:
"Just received the message:
Zhao Chen used 200 million of its own funds to supplement the pledge and redeem the 100 million shares of Henglong that had been frozen by the brokerage.
This batch of stocks will be withdrawn from the securities lending pool from today and can no longer be borrowed."
The group was quiet for three seconds.
Then it exploded.
"What the hell??? 100 million shares???"
"What does this mean? There are 100 million fewer shares on the market?"
"I couldn't borrow coupons in the first place, but now they are completely gone..."
"Those Short Selling ones are really dead."
"No, is this news accurate?"
"What came out from within the brokerage firm is pretty much the same."
The news is like having wings, flying from one group to another, from WeChat to Snowball, and from Snowball to all major Financial Media.
Before the market closed at three o'clock, someone had already posted on Stock Bar:
<Breaking news: Zhao Chen redeemed 100 million pledged shares, Henglong's securities lending pool is about to bottom out>
The comment section was filled with joy:
"Zhao Chen is trying to drive Short Selling to death!"
"You deserve it! Who asked them to smash the plate!"
"When the market opens tomorrow, will it be the first to pull up?"
"To be conservative, Hong Kong Stocks does not have a daily limit. It is estimated that Short Sellers will be the first to liquidate the position!"
"I cut my flesh in 5.8, and now I want to die..."
At 2:30 in the afternoon, a certain securities firm Trading Room.
The fund manager stared at the message on the phone screen, his face turned pale.
"One hundred million shares..." he murmured, "He redeemed those 100 million shares..."
The trader whispered, "Boss, this means..."
"It means that even if we want to continue smashing, it will be difficult to borrow coupons."
The fund manager's voice sounded like it was squeezed out of his teeth, "It will be very difficult and the cost will be very high if we want to borrow bonds now."
He closed his eyes.
Zhao Chen This move is too cruel.
It's not the first to hit the market, it's not pump-and-dump.
It's a lack of food.
Cut off all their food.
The cell phone rang.
It's a text message:
"I just asked the brokerage, Zhao Chen is indeed handling supplementary pledge.
100 million shares, delivery will be completed before tonight. From now on, these shares will not be loaned to outsiders."
The fund manager looked at that line of words and said nothing for a long time.
He suddenly remembered the scene when the Cayman Islands account took away their 25 million shares in the last ten seconds before the market closed yesterday.
At that time, he thought it was just a coincidence.
Now he understands.
That's no coincidence.
That's a game of chess.
Zhao Chen is below, that Cayman Islands account is below, and even the retail investors who rushed in to grab funds today are also below.
Only they are the chess pieces on Chessboard.
"Boss," the trader whispered, "What should we do?"
The fund manager opened his eyes.
He looked at the number 6.78 on the screen and smiled bitterly:
"Waiting to die."