When Jianing Real Estate announced the sale of Kinmen Building for a sky-high price of HK$1.68 billion last year, its share price soared to a high of HK$15.4. Although there were ups and downs, it never fell below the 10 yuan mark.

As the Hang Seng Index broke through the historic mark of 1,800 points, the stock price of Jianing Real Estate also rose all the way back to a high of 14.1 yuan.

It was not until Zhou Yang and Merrill Lynch, behind him, began to sing about the short-selling of many real estate stocks on a large scale that the stock price of Jianing Real Estate began to fall rapidly.

However, even if Chen Songqing spends a lot of cash and takes over the market secretly, he must strive to ensure that the stock price of Jianing Real Estate remains above 10 yuan to avoid damaging the market's confidence in it.

Naoki Nakagawa had previously criticized Jardine's Land Company and directly fought with Jardine's chairman of the board of directors of Jardine, giving the market the illusion that other Chinese-owned real estate companies were just affected.

But Land Company is not Zhou Yang's main target, it is just a target to confuse Chen Songqing. Some people may say that Zhou Yang has not even built his short positions, so he has been short in public opinion in advance, which is suspected of alerting the enemy.

The actual situation is not the case, because no matter whether Zhou Yang triggered public opinion or not, Chen Songqing would immediately discover Merrill Lynch's short selling behavior.

After all, the stock prices of several listed companies in Jianing were manipulated by Chen Songqing, and it is impossible for him to not be noticed by the large-scale intervention of foreign capital.

If Zhou Yang was bullish as before, Chen Songqing would have tolerated it. But if you maliciously short, he would definitely be forced to fight back.

Therefore, Zhou Yang simply openly shorted the market, stirring up a large number of followers to enter the market, which made it difficult for Chen Songqing to judge for a while that the shorted stocks by Merrill Lynch Bank accounted for almost all the selling orders.

But he didn't need to have a headache for too long, because Merrill Lynch's second wave of offense had arrived.

Just as Chen Songqing and Zhong Zhengwen met at the Miramar Hotel, Merrill Lynch announced its first financial product for ordinary investors, Jianing Real Estate warrants after entering the Hong Kong market.

The so-called warrant refers to investors who can buy or sell the corresponding stocks to the warrant issuer within the exercise period at the price agreed in advance. Of course, it has another transliteration name in Hong Kong - "Warrant".

Hong Kong in later generations was the world's largest warrant trading market, and the transaction volume of wand and bull and bear warrants can reach one-fifth of the annual transaction volume of Hong Kong stocks.

However, in the early 1980s, although WoWin as a stock derivative had already appeared in the capital market in Hong Kong, it has not been widely recognized by investors.

Issuing a stolen round is usually just an auxiliary financing method for listed companies, in addition to issuing new shares. Therefore, the market mainly focuses on bullish subscription a stolen round, and bearish put a stolen round is rare.

After all, listed companies only want to sell stocks to investors to raise funds, and they cannot in turn spend a lot of money to absorb stocks.

However, in later Hong Kong, the issuer of WoWheel was actually mainly brokerage firms. WoWheel could even be traded publicly in the Hong Kong stock market like stocks.

Since Zhou Yang joined Merrill Lynch, he has worked hard for the company's development.

He previously helped Merrill Lynch successfully open up the market for enterprise-level customers through US dollar bonds. This time he was planning to use the depot round as a breakthrough point to sink Merrill Lynch's business into ordinary investors.

Well, Zhou Yang is not really a loyal dog of Merrill Lynch. He just wants to seize Chen Songqing's financial fraud, false transactions and other handles, and make a big profit by shorting the stock price of the Jianing Group.

But if he wants to successfully achieve his goals, his ability to predict the future is not enough based on that little bit of ability. He needs to mobilize a large amount of resources from Merrill Lynch to serve him.

But Merrill Lynch cannot just revolve around Zhou Yang's small asset management department. He wanted to convince Komansky to provide more support to himself and must bring greater benefits to the company. Therefore, Zhou Yang took the opportunity to propose a waning round in Hong Kong.

After all, Merrill Lynch, who has just entered the Hong Kong capital market, wants to compete with powerful tigers such as Huddolli and Yifu, the best way is to innovate business.

The previous dollar bonds are the best example. Local bonds have weak overseas issuance capabilities, unlike Merrill Lynch who can easily mobilize global resources. Therefore, Merrill Lynch helps Deep Sea Urban Construction Company issue dollar bonds, which can attract the attention of the Hong Kong corporate community.

When it comes to playing financial derivatives, if Wall Street investment banks consider themselves second, no other brokerage firm in the world dares to recognize first. Turbo is a typical stock derivative and is undoubtedly very suitable for Merrill Lynch, an international investment bank that comes from Wall Street.

The rules of the wreck round are a bit similar to options. Although the risks are greater, the investment threshold is also lower, which is very suitable for Hong Kong's market with a strong speculative atmosphere. This is also an important reason why derivatives such as wreck round, bull and bear certificates can become popular in Hong Kong in the future.

In the past, when listed companies in Hong Kong issued subscription rounds, they usually only had one exercise price. However, Merrill Lynch issued many innovations this time, providing investors with a series of products, including both subscription warrants and put warrants.

Moreover, both warrants have multiple exercise prices to choose from, but also have different exercise periods. However, depending on the exercise price and exercise period, the prices of the treasury rounds also vary greatly.

For example, if an investor purchases a first-hand (100 shares) of Jianing Real Estate at the current market price, it costs at least HK$1,000. However, one month after the launch of Merrill Lynch Bank, the first-hand price was only 10 yuan.

In other words, the price of each round is only 0.1 yuan. As long as the stock of Jianing Real Estate remains above HK$8.1 in one month, investors can make a profit.

As long as every HKD 0.1 high of the stock price of Jianing Real Estate, investors can earn 10 more Hong Kong dollars, which means 100% more profit.

Compared to buying Jianing's stocks directly and buying the waning wheel products launched by Merrill Lynch Bank, the investment threshold is only 1% of the former, leaving at least $2 downside.

In addition to the exercise price of 8 yuan, Merrill Lynch also launched a subscription round of 7 yuan, 6 yuan and 5 yuan. The price of the round of 5 yuan exercise price is HKD 1.

In other words, Merrill Lynch’s most pessimistic prediction is that the stock price of Jianing Real Estate will fall below the 6 yuan mark within one month, otherwise its stolen product will suffer losses.

The stock price was cut by 40% within one month?

The Hong Kong stock market is in an uproar over Merrill Lynch’s newly launched round of wrecking. Everyone does not believe that as a tycoon in the international investment banking industry, it will be so unfounded and bearish on the stock price of Jianing Real Estate.

Of course, there are also a large number of speculators who don’t believe in evil, betting that Jianing’s stock price will not plummet so much in the future, so they began to crazily buy Merrill Lynch’s newly launched wreck products.
Chapter completed!