lcionline Chapter 18: [9 Dragons] Stock Price Soars
Chapter 18: [9 Dragons] Stock Price Soars
HSBC headquarters at 3 PM.
In the top-floor office of HSBC tycoon Sir Michael Sandberg.
Outside the floor-to-ceiling windows, the surface of Victoria Harbour ripples with light, and the skyscrapers of Central are bathed in sunlight, their surfaces gleaming with a golden sheen, standing tall like guardians clad in golden armor.
"Knock knock knock!!!"
There was a knock on the door.
"Come in, please."
"Hi! Mr. Sim Bi, hello."
"Oh! Bao, it's you." Shen Bi, seeing that the visitor was Bao Yugang, stepped forward to greet him. "What brings you here?"
Sir Michael Sandberg had a deep understanding of Chinese culture, which is why he could speak fluent Mandarin and Chinese.
Bao Yugang walked in quietly, a faint smile on his face, and said, "Master Shen Bi, I hope my sudden visit hasn't disturbed your work?"
"No! Bao, how could you have such a thought?" Shen Bi said, personally pulling out a sofa for Bao Yugang to sit down. "I'd be more than happy to have you here. After all, with you here, I'm sure I can close another deal, right?"
"Hahaha!!!"
The two looked at each other and laughed heartily.
After the joke, Pao Yuk-kong's expression turned serious: "Master Sir Mark Shum, I have indeed come here today on business." As he spoke, he took out the morning's "Hong Kong Economic Journal" and spread it out: "I plan to acquire Wharf Holdings."
Bao Yugang spoke with a strong and unwavering tone, pointing to the Wharf Holdings report in the newspaper.
Seeing his expression, Shen Bi knew that Bao Yugang was serious, just like when he borrowed a huge sum of money from him when the shipping market was very uncertain. He had the same resolute expression back then.
No matter how he tried to persuade him, Bao Yugang remained unmoved. Instead, he was the one who was convinced and granted a huge loan. He remembered this incident vividly.
Having known each other for so many years, he understood Bao Yugang's character very well. He knew that once Bao Yugang had made up his mind, no amount of persuasion would work, so he could only seriously consider the matter.
A minute passed...
There was no movement for two minutes.
Shen Bi's eyes remained closed, his back against the sofa, his right hand still tapping the armrest.
Bao Yugang remained silent, slowly savoring the delicious coffee that was initially bitter but later became sweet.
Shen Bi understood his personality very well, and Bao Yugang knew his personality inside and out as well.
He understood that Sir Michael Sandberg disliked being interrupted when making major decisions, and he wouldn't accept any advice during that time. He needed to have a decision or solution in mind before he would consider others' suggestions to improve any flaws in his decision.
A full five minutes later...
"Bao! You're really that confident about that side?" Sir Michael Sandberg pointed north. "You know I can't afford to lose; it's crucial for HSBC's future."
Bao Yugang nodded without hesitation: "Mr. Shen Bi, I have absolute confidence in him." He paused for a moment, then added: "No, I should say I have complete confidence in him; he will keep his word."
Shen Bi's brows twitched slightly upon hearing this.
He knew Bao Yugang all too well. This "shipping magnate" was always cautious and never easily staked his fortune on others. Yet at this moment, the light in his eyes revealed such unwavering conviction.
After receiving Bao Yugang's reply, Shen Bi did not hesitate any longer: "OK, then go ahead and do it. Leave the rest to me." He then went to his desk, took out a document from a drawer, and handed it to Bao: "This is Li Ka-shing's asset report. He cannot acquire Wharf Holdings."
Bao Yugang's eyes lit up immediately: "If that's the case, is there a way to take over his shares?"
"Leave this to me."
In a short period of time, the two devised a grand plan in a simple conversation, which could even be a decision worth billions of Hong Kong dollars.
Meanwhile, on the exchange side...
Following the announcement of Newbikin's press conference at noon, Wharf Holdings shares have become extremely sought-after, with a shortage in the market. Many investors have even asked their brokers to place buy orders at high prices.
The market opens at 1:30 PM.
The score is currently around 15:30.
In just two hours, the price of Wharf Holdings rose again and again, with the latest price at HK$28.67 per share, a surge that was astonishing.
The opening price was over HK$21 in the morning, the closing price at noon was over HK$24, and now the price is HK$28.67. In less than a day, the price has risen by more than HK$7, an increase of 33%.
With such a surge in prices, investors flocked to the market.
Whenever "Wharf Holdings" shares appear on the market, no matter how many there are, as long as the price is not ridiculously high, they will be traded away very quickly.
The brokers at the exchange were overwhelmed with calls from buyers, with many big investors placing buy orders for anything below HK$30, just to grab even a single lot of stock.
Meanwhile, on Li Ka-shing's side...
"Boss, a big buyer has offered HK$30 to buy. Should we release the stock?"
"No rush, I'll contact you if you need me to release you."
"You just need to report the latest situation to me at any time," Li Ka-shing replied calmly.
"Okay, boss."
As he responded, he seemed to remember something and said, "Wait, I have something else to tell you." He tapped the table lightly with one hand, "Go and arrange for someone to secretly add fuel to the fire, and tell them that I will fight to the end."
"In addition, arrange for some small newspapers to keep watch at Hang Seng and Standard Chartered banks for an hour each."
"Okay, boss."
From the moment Newbikini held his press conference at noon, he knew he couldn't take over Wharf Holdings and began preparing to exit.
Faced with the behemoth that is Jardine Matheson, he is indeed no match for them, nor does he have enough leverage.
But who exactly is Li Ka-shing?
Although he doesn't have the chance to take over Wharf Holdings, he still has the advantage in the current situation.
He does indeed hold over 15 million shares of Wharf Holdings, representing more than 18% of the company's equity. Having purchased them at an average price of HK$1500 per share, even if he were to exit, he would still make a substantial profit.
He plans to take advantage of the fact that everyone now knows the value of Wharf Holdings' assets, and push the market value of Wharf Holdings close to the value of its assets before selling it.
In this way, he can make a lot of money from each share.
If you can sell all your shares successfully at the highest market price, you will make a large sum of money.
He didn't lose after all.
This is Li Ka-shing's current thinking.
After hanging up the phone, Li Ka-shing tidied up the documents on his desk and slowly left the office.
Around 16:20.
Headquarters of Hang Seng Bank in Hong Kong.
Li Ka-shing's car was parked openly at the entrance, and he walked into the bank without any attempt to conceal it.
As he got out of the car, he noticed reporters taking pictures of him nearby, but he pretended not to notice.
His purpose in doing this was to get reporters to continue creating hype for him. What he did at the bank, the reporters would fill in the blanks themselves, and once the reports were published, he wouldn't need to ask any questions; he could simply sit back and reap the benefits.
After half an hour.
He left Hang Seng Bank, then went to Standard Chartered Bank, and didn't return home until around 6 p.m.
The reporter followed him the entire time.
Meanwhile, on the stock market...
The market closed above 30 at 4:30.
It rose by HK$9 that day, a gain of 42%.
At the close of trading, almost all the shareholders who held Wharf Holdings shares left the exchange with smiles on their faces.
On that day, each share rose by HK$9. Even if you held 1,000 shares of Wharf Holdings, you could still make HK$9000 if you traded them, which would be a considerable profit.
Not to mention those who own even more Wharf Holdings shares.
They can earn thousands or even tens of thousands of dollars in a single day.
Keep in mind this was in 1978.
At that time in inland rural areas, a household with 1,000 yuan was already considered wealthy, and the term "household with 10,000 yuan" had not yet been coined.
It's hard for anyone to suppress their excitement at earning so much money in a single day.