Three minutes after the announcement was issued, Snowball exploded.
User "From 5 to 20": "Holy shit, shit, shit! Zhao Chen has been released from the pledge!"
User "Patience Pays Off": "All 230 million shares were redeemed? Where did he get so much money?"
User "Value Discoverer": "This is not the point! The point is - no reduction or pledge within three years!"
User "Old Leek Root": "What can Short Sellers do to return the coupon?"
User "Chase Rises Kill Dips for Life": "Short Sellers is finished. Completely finished."
User "Valuation Hunter": "Wait, let me do the math. Zhao Chen holds 360 million shares, Su Wantang has 28 million shares, Shen Zhiyi has 28 million shares, and Zhao Chen sold 10 million shares of the company.
Including the 15 million shares owned by senior executives, the total adds up to 441 million shares, and the total share capital is 560 million shares. The circulating shares are less than 120 million shares."
User "Pig Cycle Hunter": "78.75% of the shares will not be circulated for three years?"
User "Patience Pays Off":
"Not only are they not circulated, they are not reduced or pledged. In other words, these stocks will never appear in the securities lending pool again."
User "Value Discoverer": "How can I repay the coupons borrowed by Short Sellers when they expire?"
User "Old Leek Root": "Either buy it at a high price or die."
User "Chase Rises Kill Dips for Life": "Fuck, that's a killer!"
User "From 5 to 20": "Zhao Chen's trick is too cruel. I'm convinced, completely convinced."
On the other side, Shen Jue's cell phone rang.
She glanced at the caller ID - it was the bald fund manager.
But she didn't answer.
Because she was staring at the three announcements on the screen, she was stunned.
It took a full ten seconds for her to come back to her senses.
Then she laughed.
Smiling freely.
"Zhao Chen, your surprise... is too big."
After the call automatically hung up, she picked up the phone and dialed the number Zhao Chen first.
It rang twice and connected.
"Zhao Chen." There was irrepressible excitement in her voice, "Is this the surprise you prepared?"
Zhao Chen's voice came from the other end of the phone, very calm:
"Yes."
Shen Jue said:
"Do you know how much it will cost to release the pledge? Lu Shen is just determined that you can't afford so much money to release the pledge, that's why you dare to Short Selling."
Zhao Chen said nothing.
Shen Jue said to himself:
"Lu Shen is finished. Completely finished. The 80 million shares of Short Position in his hand are now the knife hanging over his head.
For every one dollar increase, he will be cut off an additional 80 million yuan."
She paused:
"Moreover, he can't close his position now even if he wants to. Buying all the Circulating Supply on the market is indeed enough to repay the coupon, but--"
She laughed:
"Will the bulls give him a chance?"
Zhao Chen said:
"No."
Shen Jue said:
"Yes. We won't."
She looked at the stock price on the screen and saw that it had risen to 16.5:
"I'm thinking now whether I should also start the process of releasing the pledge and stab him again."
Zhao Chen was silent for a second.
Then he said:
"You can do it. But it's not necessary."
Shen Jue was stunned for a moment:
"Why?"
Zhao Chen said:
"The process of releasing the pledge cannot be completed in a day or two.
The bonds have been lent out. In order not to breach the contract, the securities firm can only urge Short Sellers to close the position as soon as possible.
Whether you do it or not, the result will be the same."
He paused:
"Besides, I have too many pledged shares.
Almost all of the ones I bought from Father Zhao Jianguo are still in storage.
Even if all my current funds are used to release the pledge, it will not be enough.
I also need time here. About next month, all the funds will be in place.
The announcement now is to send a signal to the market that there are fewer and fewer Circulating Supplys of Henglong."
Shen Jue thoughtfully:
"So this knife of yours is a blunt knife to cut flesh?"
Zhao Chen said:
"Yes. Let it hurt slowly. The longer it hurts, the deeper it will be remembered."
Shen Jue laughed:
"Okay, I'll listen to you. I won't get involved."
She paused:
"Zhao Chen, your game was so beautiful."
Zhao Chen said:
"It's not over yet."
Shen Jue asked:
"Do you have other means that you haven't used yet? Is it to increase holdings or to buy back?"
Zhao Chen said:
"The three of us have too many shares and cannot increase our holdings any more. Repurchases are possible, but my focus now is not on repurchases or increase of holdings."
Shen Jue became even more curious. "Is there anything else that can boost market confidence more than repurchasing and increasing holdings?
I have been in the industry for so many years, so I have rich experience. After thinking about it, I didn't expect it."
"Haha... don't guess. I'll discuss it with you after I make a preliminary decision."
"Okay! But I think these three announcements are enough to kill Short Sellers."
The phone hangs up.
Shen Jue leaned on the sofa and looked out the window.
The sun is very good.
She recalled her annoyance when she sold 30 million shares to Short Sellers during the Short Squeeze war last year.
Now, those worries are all gone.
She picked up the cold coffee and took a sip.
Thinking that Zhao Chen had a backup plan, she smiled.
Zhao Chen, you are really...
After the market opened, Chen Xi stared at the screen, his voice trembling:
"Zhao Zong, 17.8!"
Zhao Chen stood in front of the window and did not look back.
Su Wantang walked to him and gently held his hand:
"It's about to reach the cost line of Lu Shen, and he doesn't even have a chance to close the position."
Zhao Chen looked out the window.
He remembered the first time he walked into this building last December.
At that time, he had nothing.
Now, he stood here, watching his opponent being forced into a desperate situation little by little.
"Don't be careless," he said.
Su Wantang looked at him:
"Does he still have the means to fight back?"
Zhao Chen said:
"I don't see him having any chance of winning, but the capital market is changing rapidly, and we can't take it lightly until the last minute."
He looked at the tallest building in the distance:
"The 80 million shares in his hand are his life. He will fight until the last moment."
Su Wantang leaned on his shoulder:
"Then we'll wait."
Zhao Chen nodded.
Chen Xi was still shouting something excitedly from behind.
But he couldn't listen to it anymore.
He just looked out the window.
Lu Shen, aren't you going to destroy Short Selling?
Now, let me see if there are any brokers who dare to lend you bonds. What are you going to throw at them?
Lu Shen did not go to Blackstone's vice president's office during this period, and stayed in his own Trading Room in Jiahe every day.
He looked at K-line Chart, which was like an arrow piercing the clouds, motionless.
The pieces of the coffee cup were still on the ground, and the brown liquid had dried.
Zhou Huai stood behind him, not daring to express his anger.
On the screen, the stock price of Henglong is still rising.
17.9.
18.0.
18.1.
With every jump, the profit of 8 million was wiped out, and he would soon touch his profit and loss line.
Zhou Huai finally couldn't help it and whispered:
"Mr. Lu, should we..."
Lu Shen turned around suddenly:
"Do you want anything?"
Zhou Huai lowered his head:
"Do you want to close your position?"
Lu Shen stared at him for five seconds.
Then he laughed.
That smile was cold and bitter, like frost on the edge of a knife:
"Close the position? What should I use to close it?"
He pointed at the screen:
"Buying Pressure in the market now are all long positions. I close my position to give them money.
The lower I am, the more the stock price goes up. The more the stock price goes up, the more I lose."
He paused:
"Tell me, how to level it?"
Zhou Huai dare not speak.
Lu Shen turned around and looked out the window.
After a long time, he spoke:
"Go and check, does Zhao Chen really have the money to redeem it? Where did he get the funds? Is it legal?"
Zhou Huai was stunned for a moment:
"You mean..."
Lu Shen said:
"How old is he? How long has it been since he took over Henglong? How much money will it cost to redeem it?"
He paused:
"I don't believe he can spend so much money, and the market won't believe it either. We need to remind the market of these questions."
Zhou Huai nodded:
"I'll do it right away."
He turned and left.
Lu Shen is the only person left in the office.
He looked at the city outside the window, his fist clenched in his hand, trembling slightly.
Zhao Chen, do you think you won?
It's not over yet.