Some people say that there are more banks in Hong Kong than rice shops, but in fact there are also as many securities companies.

Before 1969, stocks were still the upper class for ordinary Hong Kong people. The only stock exchange in Hong Kong, the Hong Kong Association, was completely controlled by British capital. Except for a few top Chinese companies, most Chinese businessmen were excluded from the stock market financing gate.

It was not until 1969 that Li Fuzhao and several other Chinese businessmen established the Far East Association, which broke the British's monopoly on the Hong Kong securities market.

Later, Chinese capital opened the Kowloon Association and the Gold and Silver Association before the Hong Kong and British governments legislated the ban, thus forming a pattern of coexistence in Hong Kong's current four stock exchanges.

This has greatly lowered the threshold for listing and financing for Hong Kong companies, and has spawned the first wave of stock market frenzy sweeping across Hong Kong. The stock trading craze across Hong Kong has also caused securities companies to spring up like mushrooms after a rain.

A Far East Securities Brokerage License that originally cost only HK$80,000, was hyped up to HK$1 million in just two or three years later.

You should know that there are four stock exchanges in Hong Kong. Although the strength of the Kowloon Society and the Gold and Silver Society is much weaker than that of the Hong Kong Society and the Far East Society.

However, if a securities brokerage company wants to cover all stock transactions in Hong Kong, it will cost more than 3 million yuan alone. But this still cannot stop the rapid expansion of the number of Hong Kong securities brokerage companies.

By the time the Hong Kong stock market collapsed in 1973, there were nearly 100 securities brokerage companies in Hong Kong. There were more than 1,000 stock brokers with membership, a 16-fold increase from four years ago.

With the stock market plunging in 1973, Hong Kong people began to talk about stocks and a large number of securities companies died. But investors are like amnesia patients. As long as they take a little longer, they will not remember the fact that they were once harvested as leeks.

Since last year, the Hong Kong stock market has entered a new round of bull market cycle, and more and more people are talking about stocks on the streets. According to the latest survey by Xinbao, there are more than 10 new securities companies opened in Hong Kong in the first half of this year. The securities brokerage licenses and the secret transfer prices of the Hong Kong Association and the Far East Association have both exceeded HK$1 million.

There are too many securities brokerage companies in Hong Kong, which naturally leads to fierce competition. In order to develop new customers, many brokers go to the door of the vegetable market early in the morning to send flyers and give small gifts, which is exactly the same as setting up stalls in China to promote credit cards decades later.

Zhou Yang rented a house and applied for a bank card, and immediately began to enter the Hong Kong stock market. Instead of choosing the most famous Sun Hung Kai Securities and Hodolly Securities, he opened a margin account in a securities company named Changhong.

Margin is a unique name in Hong Kong. This word is directly transliterated based on the English word "Margin". The Chinese professional term is called margin trading, which is the so-called financing and stock trading.

Changhong Securities' office address is in the north corner, but the reason why Zhou Yang chose it is not because it is closer to where he lives.

It is because the conditions given by Changhong Securities are much better than Sun Hung Kai and Swedolli, two largest securities companies in Hong Kong.

After Zhou Yang left 10,000 yuan as daily expenses, only 40,000 yuan was left in the stock market. For large companies like Sun Hung Kai Securities, this is just an ordinary customer, so naturally he can't get too many preferential measures.

For companies like Changhong that are not very large, Zhou Yang should pay more attention to Zhou Yang. Changhong agreed to give him up to five times the leverage, which means that Zhou Yang only needs to deposit 20% of the margin to leverage 5 times the amount of funds to trade stocks.

Moreover, Changhong Securities' regulations on replenishment are relatively loose. After the margin loss is 50%, investors have a grace period for raising funds for three days. Only if the loss exceeds 75% will they be forced to close the position.

Of course, while Changhong Securities is bearing higher risks, the interest rate for matching funds will naturally be slightly more expensive. But as long as the stocks you buy rise, paying a little more capital cost is nothing.

5 times leverage stock trading is actually very risky! When you make money, you make money every day, but when you lose money, you will lose a lot! The most famous example in recent times is Bill Huang, the "gambler" on Wall Street.

After leaving Tiger Fund, this general under Julian Robertson set up his own business to enter the US stock market to fight.

It took him nine years to turn 200 million US dollars into 5 billion, and three months to turn 5 billion into 15 billion, but it only took him three days to turn the position.

In addition to his own loss of money, the large-scale forced closing of positions also caused many Chinese stocks listed in the US that Bill Huang had held heavily in heavy positions, and the stock prices were instantly curbed.

Many brokers responsible for holding positions for him also suffered heavy losses. In addition to Goldman Sachs and Morgan Stanley's successful scramble, Credit Suisse and Nomura, who were one step slower to close their positions, became the worst suckers. The former lost 4.7 billion US dollars, while the latter had not released specific data yet, but it started at least 2 billion US dollars.

After learning that Bill Huang had completely lost his position, the entire Wall Street was once worried about whether it would trigger a systemic financial crisis in the entire US stock market.

Domestic netizens also made up a joke at the first time: A Korean borrowed money from RB people and lost all in the United States.

Therefore, five times leverage is really not something that ordinary people can afford. But Zhou Yang is a man with a "BUG". He believes that the stock he chose will never fall by more than 15% in the next six months, causing him to be forced to close his position by a securities company.

Only rising but not falling, are there such amazing stocks?

There must be, such as the Meihan Enterprise in 1980.

Meihan Enterprise is a listed company under Baoguang Group. Baoguang is one of the most famous watch manufacturers and agents in Hong Kong. On the one hand, it produces watches and sells them overseas. On the other hand, it also represents the sales of watches such as RB Seiko, Swiss Titanes, and American Boluhua in Hong Kong.

The Huang family, which runs the Baoguang Group, also set a precedent for Asian gold and dollar football. Huang Chuanbao, the eldest son of the second generation of the Huang family, successively established the Seiko Team and the Baoluhua Team.

By attracting foreign players, these two teams have been a strong team in the Hong Kong Group A Football League throughout the 1970s, bringing a lot of brand exposure to the Huang family's watch business in the Hong Kong market.

Of course, the red stock price of Meihan Company has nothing to do with the Huang family. In fact, as early as the end of last year, Huang Chuanbao had decided to sell all the 52% equity of Meihan Company, a listed company he owned to Chen Songqing, the boss of Jianing Group, at a high price.

How high is the price? At that time, the market price of Meihan stock was only HK$3.5, but Chen Songqing was willing to take over from Huang Chuanbao at a price of 6 yuan per share.

There are cases of high-premium acquisitions, but they usually occur in companies with severely undervalued market value or with high-quality core assets.

Meihan cannot be said to be a shell company. Its profit in 1979 was more than 36 million Hong Kong dollars. Before being acquired by Chen Songqing, the total market value was 500 million Hong Kong dollars.

But in the Hong Kong stock market in the 1970s and 1980s, it was normal for major shareholders to find someone to take charge of the stock price, and no one cared about manipulating the stock price.

Meihan is one of the typical examples. The stock price can be stable at HK$3.5, which is the result of careful maintenance of the major shareholder.
Chapter completed!