Two days later, Su Wantang, Chen Xi and Zhang Qingxue Three Women came to New York again.
It was Sunday afternoon when the transoceanic flight landed at Kennedy Airport. The sky at Manhattan was still bright, and a thin layer of gold floated on the Hudson River.
The three of us were not jet-lagged. We dropped off our luggage at the hotel and went straight into Suite at Zhao Chen.
The latest position data of Tesla and Nvidia are spread out on the coffee table of Living Room.
On Bloomberg Terminal, there is scrolling the Bulls and Bears game with the stock price of Tesla near 185 US Dollar. There are several cups of cold coffee on the corner of the table.
Short Sellers has already said that he will break through the bottom line of Era Vanguard in one fell swoop recently.
Muddy Waters and Citron's Short Position are still increasing their positions. Although Morgan Stanley's extreme target price research report of 10 US Dollar was scolded by Elon Musk, the market sentiment has not completely calmed down.
The stock price of Tesla is still on thin ice below 200 US Dollar. Any new addition of Short Position may be the straw that breaks the camel's back.
Zhao Chen sat on the sofa and took over a draft of the financing agreement from Zhang Qingxue. The terms in it were so harsh that they were almost an alliance under the city.
Su Wantang sat next to him, Chen Xi and Zhang Qingxue sat across from each other. None of the three people's faces showed the exhaustion of jet lag--
It's not because I'm not tired, it's because the things at hand are so big that the jet lag is not worth it.
Zhang Qingxue went straight to the topic without any pleasantries.
She and Chen Xi spent a long time looking for pledge channels in China. Almost all domestic banks and securities firms have Wall Street behind them.
Any equity pledge may be controlled by Short Sellers in advance. If you want to circumvent Wall Street, you can only find an institution that is not related to Wall Street.
"We searched for more than half a month and finally found a Family Office of Hong Kong,
Behind it is the old money of Southeast Asia, who started out in bulk trading and has no direct connection with Wall Street.
Its subsidiary Offshore Trust has Licensed in Singapore and Hong Kong, and can undertake the equity pledge of Hong Kong Stocks Listed Company.
And there is a large enough capital volume that the pledge scale of 24 billion Hong Kong Dollar can be absorbed."
Zhang Qingxue opened the document, and the clauses page was densely marked with red lines.
"The price is very high. The annualized interest rate is 10%. Zhao Zong All 360 million shares of Henglong Group that you personally hold must be put into it.
The shareholdings of Wantang and Zhiyi must also be added as guarantee - a total of 56 million shares for the two individuals.
The core condition required by the other party is that any actions by Henglong Capital to reduce positions during the pledge period must obtain their written consent, and Add Position's actions also need to be submitted for approval.
The pledge period is one year, and there will be no forced liquidation within one year."
Chen Xi took over the words - the reason why the other party dared to spend such a huge amount of money at this juncture,
The annual interest rate of 10% is certainly a piece of fat, and the 56 million shares guaranteed by Su Wantang and Shen Zhiyi are not a small amount either.
But more importantly, the position on Henglong Capital's account is really valuable.
Five A-shares, with a total market value of more than 10 billion people, RMB, is all clearly listed under the name of Henglong Capital, without any pledge or any freeze mark.
The other party saw this position list at Due Diligence, and his attitude began to loosen.
Moreover, their legal team added a very specific clause to Pledge Conditions. Any reduction in Henglong Capital's position during the pledge period must obtain their written consent.
Similarly, any Add Position behavior must be submitted for approval. It is impossible for them to lend money if they cannot obtain the power.
Zhao Chen placed the agreement on the coffee table and lightly pressed his finger on the cover.
24 billion Hong Kong Dollar, which is approximately 3 billion US Dollar at the current exchange rate, with an annualized rate of 10%--
This interest level is considered usurious in any market. All Henglong stocks of Su Wantang and Shen Zhiyi must be pledged as guarantee.
What's even more stringent is that Henglong Capital's investment operations are subject to Pledgee's restrictions, which is equivalent to putting a rope around your neck and handing the other end to others.
But he had no other choice.
Both Nvidia and Tesla need money. Era Vanguard has used up all the bullets. SpaceX's pledge will not work.
If Tesla falls further, it will slide from the pledge warning line to the cliff edge of Liquidation Threshold.
He needs the money, even if the price is breaking his original promise to shareholders.
He leaned on the sofa and put the "no pledge, no reduction" that he had written in black and white in the announcement on the same table as this cold contract.
The announcement of Henglong was posted on Hong Kong Stock Exchange HKEXnews and can be seen by everyone.
Now he personally pledged more than 300 million shares to an offshore institution, and also took advantage of the entire net worth of Su Wantang and Shen Zhiyi.
The requirements for pledge announcements in Hong Kong Stock Exchange's Listed Company rules are clear.
Once the market knows that Chairman has pledged all the shares he holds, the stock price will not react by falling a few points, but directly Too Big to Fail.
The investors will not forgive him, and the supervision will not let him go. Those people in Shen Jue and Board of Directors who trust him and support him--
Including the Independent Director Xu Yong, Sun Zhengping, Song Zhongping group of people - they will be passively dragged by him into the aftershocks of the collapse of trust.
But he has come this far.
If Era Vanguard is liquidated on Tesla's Pledged Shares, 16.6 million shares of Tesla will be sold intensively on Secondary Market,
The stock price of Tesla will instantly collapse below 150, and the Ten-Billion-US-Dollar position of Era Vanguard on Nvidia will also be eaten by Wall Street due to the break of Capital Chain.
By that time, the stock price of Henglong will not be preserved, and the investors' money will also be wiped out.
He used the price of breaking his promise to plug another bigger hole.
"24 billion Hong Kong Dollar, about three billion US Dollar.
If Tesla continues to be smashed, there will be no problem in completely releasing the pledge of Tesla with this money."
He closed the agreement and his eyes fell on Su Wantang's face,
"I haven't thought about how to explain the announcement. But this money right now is life-saving money."
Su Wantang didn't question.
There was worry in her eyes - those eyes that had always been gentle and determined in various situations now contained a very thin layer of reluctance.
He is not afraid that his share of the stock will be pledged, but that the burden he has carried for so long will finally be backlashed by the public one day.
But she held back and didn't say anything. She just gently pressed his hand on the side of the coffee table.
He looked at Chen Xi: "Chen Xi, when is the fastest time for 24 billion Hong Kong Dollar to be credited?"
Chen Xi closed the last document and raised his head.
"Zhao Zong, all the procedures have been completed.
Hong Kong Stock Exchange's pledge registration, cross-border capital channel, and Pledgee's legal review—all completed.
The funds will arrive in your account as soon as one or two days."
Zhao Chen leaned on the back of the sofa and stopped with his fingers on the edge of the tea cup.
A day or two.
The stock price of Tesla has completely fallen below the 200 US Dollar integer mark, and the trading price in pre-market trading has touched 188 US Dollar.
There are less than 10 US Dollar left from 178 US Dollar Liquidation Threshold.
A total of four demand letters from securities firms have been sent in the past three days--
The wording of each letter was harsher than the last one, from the previous Inquiry Letter to the formal Margin Call Notice. The tone was no longer as polite as usual, leaving only a cold deadline.
This matter is no longer a secret in Wall Street, Muddy Waters and Short Position of Citron are still adding more money.
"A day or two."
He repeated these three words, his voice was not high, but everyone in the room could hear the coldness in his tone that was suppressed to the extreme.
"Short Sellers will you give us a day or two?"
No one answered.
Su Wantang sat next to him and gently pressed his fingers on the back of his hand.
Outside the window, the sunlight on the Hudson River was suddenly blocked by a cloud, and the light in the room dimmed for a moment.