Who Is the Hunter

Tuesday, March 11.

Among the financial news on Wall Street, another piece of bad news emerged: Credit Suisse Group, a major partner of Bear Stearns, requested that its traders refrain from engaging in any transactions involving Bear Stearns.

In fact, this was a maliciously distorted piece of news.

The origin of this rumor was actually several hedge funds approaching the brokerage division of Credit Suisse, requesting that the firm accept their trading contracts with Bear Stearns.

Subsequently, Credit Suisse sent an email to its stock and securities traders, requiring that all transactions involving Bear Stearns, as well as other unconventional business, must be approved by a credit risk manager.

When this directive reached traders at other firms, it was completely twisted, causing significant negative repercussions for Bear Stearns.

The reaction in the stock market was an immediate plunge.

Huang Xiuyuan's 84 million USD from yesterday, shorted with double leverage, naturally yielded a massive profit.

With Bear Stearns' stock price plummeting another 13% at today's close, he gained approximately 21 million, further increasing his total capital to 105 million.

However, at the close of trading today, he stopped shorting and held back to observe; even though he had reduced his profile by using dozens of accounts, the bloodhounds on Wall Street had incredibly keen noses.

New York.

Goldman Sachs headquarters.

In the president's office, an elderly man with a round face and a receding hairline was meticulously reviewing documents.

A knock came at the door.

"Come in."

A middle-aged white man walked in: "President Lloyd, the plan is very successful, though a few small fish have managed to slip in."

The elderly man did not look up, asking indifferently: "How many?"

"About 800 million to 1 billion, half of which is overseas capital. The accounts are relatively scattered; there should be a few groups of small speculative funds."

The elderly man paused his fountain pen: "Is that so?"

"Should we adjust the arrangements for tomorrow?" the middle-aged white man asked cautiously.

"Is it confirmed?"

"It is confirmed. Schwartz will make a clarifying statement on CNBC tomorrow."

The elderly man narrowed his eyes: "Then there is no need to intervene. Wait until the afternoon to release another piece of news. You handle the rest."

"OK."

While the sun was setting in New York, it was broad daylight on the other side of the ocean in Shanmei.

Due to staying up late to trade, Huang Xiuyuan rested for the morning and only went to the headquarters office in the afternoon. Passing by one of the factory buildings, he specifically checked the progress of the laboratory.

The infrastructure of the original factory was relatively sound, and the progress of the laboratory construction was much faster than expected; the project might not even take seventy-five days.

After checking the laboratory progress, he went to the second-floor office of the second factory building. Lin Baijie shared the same office with him, though his desk was on the inner side.

Seeing Huang Xiuyuan walk in, Lin Baijie hurriedly stood up to report on recent developments: "Mr. Huang, Fuguo has ordered 10 gas generator sets from Shengdong. This is a copy of the contract faxed over this morning."

Taking the document and flipping through it, the total purchase price was 8.5 million for ten 500kW gas generator sets, plus a set of spare parts and maintenance tools, with Shengdong promising a three-year warranty.

"No problem, proceed according to this contract."

"Mr. Huang, the company's funds are running a bit low," Lin Baijie reminded him again.

"How much liquid capital is left?"

Lin Baijie took out a financial statement: "Excluding the money for those previous contracts, plus the 36 million for the land purchase a few days ago, 6.8 million for transport vehicles, the first phase of the Guizhuling Industrial Park factory building currently under bidding will likely require about 30 million, the waste treatment equipment needs about 10 million, plus the 8.5 million for the gas generator sets just now."

Speaking to this point, Lin Baijie was becoming anxious. These projects alone consumed 90 million, and the current liquid capital of Suiren Company had dropped to just over 8 million.

Huang Xiuyuan was quite calm: "If there are still over 8 million, then there is no problem. I will inject capital into the company before the end of the month. You can go ahead and do it."

Although the chairman was full of confidence, Lin Baijie could not sleep soundly until he actually saw the funds.

"Right, there is one more thing."

"Mr. Huang, what is it?" Lin Baijie took out his pen and notebook.

Huang Xiuyuan instructed directly: "Although our company is not yet large, we can start arranging for subsidiaries. Separate the waste collection business and establish a subsidiary; we can also establish a subsidiary for gas sales."

"No problem, I will complete the registration before the end of the month."

The two discussed other businesses, and he then went to the software laboratory to discuss the company's official website and the industrial software platform currently under development with Lu Xuedong.

Several programmers and engineers involved in the improvements raised some issues with him, and by the time he finished, it was past seven in the evening.

Huang Weichang drove him home.

After showering and eating, it was nearly morning in the United States.

Affected by the rumors, Bear Stearns' stock price suffered a heavy blow. The company's executives believed they had to issue another announcement to clarify the situation regarding Credit Suisse Group.

March 12, Eastern Time 9:42.

The CNBC business channel aired Schwartz's remarks. He stated: "Perhaps because Bear Stearns is a major participant in the mortgage business, some people have speculated that the company has problems. But these speculations are all untrue..."

Following this, the program began to broadcast positive news about Bear Stearns, such as the company's sufficient cash reserves and good profitability in the first quarter.

Huang Xiuyuan, who was watching the live news broadcast, narrowed his eyes; this situation was different from what he remembered.

If he recalled correctly, Schwartz's speech was supposed to be interrupted by a breaking news segment right when he touched upon the company's sufficient cash reserves and strong first-quarter earnings.

Interestingly, the content CNBC interrupted with was the scandal of New York Governor Eliot resigning due to soliciting a prostitute.

Yet, the "interruption accident" did not happen this time, which showed that the waters here were indeed very deep.

He looked at the stock market data on his other laptop; Bear Stearns had initially plummeted by about 6.3% at the opening, but once this news came out, long positions surged crazily, and it actually turned green (in the US stock market, green means up and red means down) in just about five minutes.

Huang Xiuyuan moved very quickly, using his own cash to rapidly open long positions.

Over the next hour or so, the stock price of Bear Stearns soared, and despite the desperate suppression by the bears, they were unable to turn the tide.

The stock price of Bear Stearns went from -6.3% at the opening to a surge of +10.2% by around 10:55 AM.

This madness did not end there; by around 12:37 PM, the stock price of Bear Stearns actually returned to its annual high of 71.24, a staggering 28.3% increase, comparable to a roller coaster.

At this moment, Huang Xiuyuan quickly sold off all his long positions; although he had only invested a little over 60 million due to the rush, he made a profit of 17.34 million.

The reason he chose to sell was mainly because he knew the broader environment of the subprime mortgage crisis and that Bear Stearns would inevitably blow up sooner or later.

Moreover, those guys on Wall Street were definitely planning to clear the field, because after the Bear Stearns stock price hit 70, sell orders for long positions were increasing, while buy orders for short positions were also steadily rising.

That roller coaster ride at the opening had likely wiped out quite a few highly leveraged bears.

If some news were to suddenly break next, causing another plunge, those hot money speculators would definitely be slaughtered to the last.

Thank you all for your support, and thanks to book friends "Hao Gei Ren Dao Le" and "Danchun De Fugui" for the tips (ω｀)