Komansky's trip to Kuala Lumpur achieved two important results. The first is to lay a good political environment for Merrill Lynch to continue to expand the Malaysian market, and the second is to define the benefits distribution of the Ganing incident with UMNO.

Yumin Finance Company itself is a legal financial licensed institution in Hong Kong. It can quickly sell the pledged equity held in hand before the Jianing Group explodes in full swing to recover its losses as much as possible without lending the stock to Merrill Lynch Bank to make money.

However, in order to clear the corruption scandal brought to UMNO by the Ganing incident and eliminate the political adverse effects as much as possible, Mahathir could only choose to sacrifice some economic interests to reach a compromise with Merrill Lynch Bank.

Otherwise, Merrill Lynch would expose the close relationship between Chen Songqing and Ma Guo officials to foreign media in advance, and be bullied by indigenous banks in the international financial market, which would put UMNO in a very passive situation.

So Mahathir chose to use the cost of losing hundreds of millions of dollars in exchange for UMNO to be able to handle the internal scandal involving Jianing's illegal loans.

After Malaysia basically handled the relevant hands and feet, Komansky instructed Zhou Yang and Merrill Lynch in Hong Kong to let go and take action against the Jianing Group.

After Merrill Lynch Hong Kong launched the Wand Roller Products of Jianing Real Estate yesterday, it was not only Merrill Lynch Hong Kong Asset Management Department led by Zhou Yang, which was already the short seller. Companies such as HSBC, Barclays, and Yifu later joined the army to hunt down the stock prices of Jianing Real Estate.

Because Zhou Yang prepared sufficient ammunition in advance, he naturally did not need to engage in a higher risky bare short selling. However, according to news from Merrill Lynch, companies such as Barclays Bank and Yifu, which do not have many Jianing Real Estate stocks, have actually conducted a large number of bare short selling transactions.

However, whether it is a company that has Jianing stocks in HSBC, or a company like Barclays, which is a bare-selling short selling company, yesterday's floating profits are far from comparable to Zhou Yang's Merrill Lynch's Hong Kong Asset Management Department.

After all, when Zhou Yang sold a large amount of short selling, Chen Songqing was still resisting fiercely. Therefore, the average short selling price of Jianing Real Estate stocks he sold could reach about HK$9.5.

However, as HSBC and other institutions also joined the battlefield, Chen Songqing, the biggest bull, immediately decisively gave up his resistance when he saw that the stock price of Jianing Real Estate fell from above 9 yuan to only 7 yuan in a few minutes.

The average short-selling price of HSBC and other institutions is only about 7.1 yuan. After hedging with Merrill Lynch’s round-robin products, the gross profit per share is only about HK$0.5. They can only say that they have drunk a little bone soup, rather than eating meat like Merrill Lynch.

But whether you drink soup or eat meat, you will eat it, and it is two different concepts.

There is a word that says that the law does not blame the public. If the Hong Kong Securities Regulatory Commission has objections to Merrill Lynch's short-selling of Ganing stocks, then other British brokerages that later joined HSBC, Barclays, Yifu, etc. will definitely not escape the relationship.

Therefore, when facing Huo Liyi, the securities regulatory specialist, Komansky not only did not feel panic at all, but also agreed with Chen Songqing's viewpoint. Standing on the moral high ground, Yiming righteously accused Barclays Bank and Yifu and other British institutions of naked short selling, which increased the trading risks in the Hong Kong stock market.

As for Chen Songqing's other target - the wreck products related to Jianing Real Estate, Komansky even came up with a detailed product risk control report.

Merrill Lynch did not unilaterally sell only the purchase of the buyer, but also launched a put turbine to the market. Some investors who purchased the puter yesterday have already obtained generous profit returns based on their precise judgment of the market.

Therefore, the wreck product launched by Merrill Lynch this time is not simply to suppress the stock price of Jianing Real Estate. It is a low-threshold stock derivative launched by Merrill Lynch Bank's financial data analysts through precise mathematical model calculations and combined with the local characteristics of the Hong Kong market.

Both parties that truly participate in the stock round of siege are actually long investors who are bullish and short investors who are bearish. As the issuer of the stock round of siege, Merrill Lynch is more of an intermediary role that hedges the overall market risks.

Of course, the information brought to the Hong Kong Securities and Exchange Commission did not provide specific sales data of Merrill Lynch’s release of the wreck yesterday.

In fact, Merrill Lynch sold more than HK$65 million in subscription rounds yesterday, while put less than HK$5 million. Moreover, the price of put put rounds is generally expensive. In addition to a few examples that are ready to be promoted, put rounds that can be bought without limit can only have real exercise value when the stock price of Jianing Real Estate falls below HK$3.

In fact, both Komansky and Zhou Yang knew very well that the next outcome of the Jianing Group would be bankruptcy liquidation, and the stock value would eventually be zero. If it weren't for coping with the question from the Securities Regulatory Commission, Merrill Lynch would not be willing to launch a put-in round.

Fortunately, most investors do not believe that the stock price of Jianing Real Estate will fall below HK$3. When they want to buy a put-in round in a few days, Merrill Lynch has already continued to raise the selling price and will also use the means of limiting issuance to ensure that the final loss of the put-in round will not exceed the plan.

Compared with Jianing Real Estate, which has already known the results in advance, Merrill Lynch’s upcoming second round of stock rounds, the stock rounds of Land Company, will truly test the risk control capabilities of Merrill Lynch’s product design team.

Faced with Merrill Lynch's perfect response, Huo Liyi and the Securities Regulatory Commission did not find any obvious loopholes. If it were other unknown small brokerage firms, Huo Liyi would definitely suppress it first.

But Merrill Lynch is a financial giant from Wall Street. If Huo Liyi does it incorrectly, it may even endanger Hong Kong's free market position.

Therefore, after urgent consultation with others from the Securities Regulatory Commission, Huo Liyi did not impose any punishment on Merrill Lynch Bank, but simply issued a temporary market ban, prohibiting brokers from continuing to provide investors with bare short-selling stocks to investors in the short term.

After hearing the news released by the Securities Regulatory Commission, Chen Songqing couldn't help but breathe a sigh of relief. He thought that his complaint to Merrill Lynch had had an effect.

But Chen Songqing was obviously too happy. At around 9 o'clock that night, he received the second bad news from Oakland, California, USA.

Jianing Real Estate previously bought a 6,000-square-meter piece of land near Chinatown in Auckland and is preparing to invest more than $100 million to build a large six-story business office building.

As a result, Jianing Real Estate applied for a loan from the local Crocker National Bank in California, but the other party just refused on the grounds that the project was too risky.

For Chen Songqing and Jianing Real Estate, this is definitely a sudden miserable situation. After the lack of bank financing, the Auckland project named Trans-Pacific Center by Chen Songqing is likely to be unfinished, and Jianing Real Estate's early investment will also be wasted.

Affected by this negative news, Jianing Real Estate's stock plummeted again after a day of suspension, and its stock price quickly fell from 7 yuan to only 6.5 yuan left.

This is more than 14 yuan before Zhou Yang started selling unprecedentedly, and has cut nearly 55%. Fortunately, as the stock price of Jianing Real Estate fell below 6.6 yuan, the arbitrage space between it and the Jianing Wound Round launched by Merrill Lynch has completely disappeared, so HSBC and other institutions that hold Jianing Real Estate stocks have not continued to short the stocks of Jianing Real Estate on a large scale.

After all, if the stock price of Jianing Real Estate collapses, the stocks pledged by HSBC and other institutions will become waste paper, resulting in huge losses.

Although the short-selling power has been greatly reduced, Chen Songqing's trouble has just begun. The discount rate of using Jianing Real Estate stock to apply for pledge loans from banks is basically around 50% to 60%.

If calculated based on the previous peak of HK$14 per share, the shares pledged by Jianing in the bank are actually insolvent.

Fortunately, the average price of Jianing Real Estate's stock pledge is only about HK$10. As long as the stock price of Jianing Real Estate does not fall below the 6 yuan mark, Chen Songqing will not have to worry about his stock being forced to be sold by the bank for the time being.

However, Jianing Real Estate suffered a heavy blow and the risk in the eyes of banks is already very high. It is already very difficult to raise funds again. As long as the bank does not withdraw loans in advance, it is already very humane.
Chapter completed!