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Chapter 1032 shorting

"It should be a matter of time. These rumors on the domestic Internet have not had any major impact in the United States at present," said Lao Chen, who was angry.

"Is it because we have not caused enough impact? Or is it still take time for such news to cause impact in the United States?" Mr. Wang asked.

He is still very insightful about the issues he cares about.

This matter is so lively in China at present, and it is still one-sided. Although I don’t know if Director Yang will have any backup plan, it is obviously a bit difficult to form public opinion that is more influential than now and is more unfavorable to Feng Yiping.

Therefore, it is best that the US market needs time to digest this problem, and it is best that tomorrow, after digesting the news, things can develop in the direction everyone expects.

Otherwise, the result of such a big fight this time will be greatly reduced.

Old Chen, who knows Mr. Wang's temper, will not say all the good words, "They hope it's because of time,"

In other words, it is not ruled out that the intensity of public opinion this time is not enough.

Mr. Wang glanced at Old Chen coldly. Is the final effect going to be greatly reduced if a plan that looks very perfect?

No, he will never allow it.

"Check Director Yang to me," he said to Lao Chen.

His phone number was naturally quickly answered there, and Director Yang was quite helpful to Mr. Wang's thoughtful reception to him yesterday, "Hello Mr. Wang, is there any good news?"

He directly took charge of the American part and did not interfere.

"Director Yang," Mr. Wang shouted, not the tone of yesterday.

Director Yang immediately felt the chill from Mr. Wang’s first sentence.

The chill comes from two aspects. First of all, this person really changed his face and became very fast. Yesterday, he not only sat around the fire with a kiss and ate hot pot, but he also praised himself and his plan in his words, but listen to his current tone.

Is it very unsuccessful? It shouldn't be!

"Your plan is not good. In the United States, there was no reaction at all yesterday," said Mr. Wang.

Director Yang heard this a little harshly. Didn’t he take any praise for his plan yesterday? Why did he change suddenly now?

From this point of view, Mr. Wang is indeed a bit like his father. Both of them are the kind of people who don’t care about the process and just care about the results. They mainly judge right or wrong based on their interests.

"Don't be excited, just talk about it," said Director Yang.

From the opening to the closing yesterday, the listed companies under Feng Yiping did not change much from their transaction results to their final prices.

"The traders in the United States feel that this level of news will not be as smooth as we expected, and will also have an adverse impact on Feng Yiping in the United States," said Mr. Wang.

"How was the situation yesterday?" Director Yang asked.

"The decline was almost a few percent, and it was almost calm," said Mr. Wang.

"Will it be due to time?" Director Yang said, "In the United States, it may not have received the news so soon."

"What if tomorrow will be the same?" Mr. Wang asked mercilessly.

"I'll do it first," said Director Yang, "you can imagine a solution, too."

"I still have the original opinion. Sharing this news and plans with some institutions is actually the most cost-effective," he said.

But Mr. Wang has always been uninterested in such suggestions. He thinks, why should we share such a good opportunity with others?

In addition, taking the initiative to disclose similar news to the public, does it seem like I am a little incompetent?

"I think about it," he said.

Fortunately, from the results, no matter what, I still made some money, so I felt dissatisfied and annoyed. This is because the amount of money made is too big compared to what I had originally expected.

What Mr. Wang is discussing with Director Yang now is one of the reasons why he was so polite to Director Yang yesterday.

Because Director Yang’s plan did not aim at smearing Feng Yiping as the ultimate goal, smearing Feng Yiping and affecting Feng Yiping’s Jiasheng, and they would make profits from it. This is the ultimate goal.

Yes, it's just shorting.

In terms of how to make capital make more profits faster and thus gain more capital, the United States does have much more ways than us. It is the most important one of them.

The easiest thing about shorting is that if you determine that a stock has a downward trend in the short term or longer period of time, then you can borrow the stock from the broker at the current high stock price and sell it, and wait until the stock price drops and buy the same amount of stocks and return it to the broker to the broker, thereby earning the difference.

For example, there is a stock that currently has a price of $10 per share, and you believe it will fall next. Then, you can borrow a certain amount of stocks from a securities clearing company - in the United States, the largest is Merrill Lynch, borrow a certain amount of stocks, such as 100 shares, and then sell them to cash out.

If you sell it at an average price of $10, then you have 1,000 yuan on your hands.

If the stock price will fall as you expect, and it will fall to only $8 per share, and you buy 100 shares and return it to Merrill Lynch to make a flat account, then in this process, you will make a profit of $200.

Of course, this is not net profit, so you naturally have to pay Merrill Lynch loan fees, interest, liquidation fees, etc.

If you sign a contract with a brokerage firm for a long period, or you are particularly lucky that the stock falls to a minimum of only $5 per share before the contract expires, then your profit will be $500...

Overall, this is still a relatively healthy investment mechanism, unlike the products designed by the guys on Wall Street that almost killed themselves.

To put it simply, short selling is relatively conducive to the stable operation of the stock market.

Because our A-shares cannot short, it is actually equivalent to keeping going long. Securities companies, listed companies, and regulators all hope that the stock price will get higher and higher and the stock index will get higher and higher.

Because we cannot short, the way for everyone to make profits is to cash out at a high price. However, if cash out at a certain price forms a scale or causes a major impact, it may cause a plunge in the stock price...

Of course, we do not allow short selling at the moment, so it should be said that there are indeed big and correct concerns.

First of all, the risk of short selling is very high, and it can be said that there is no upper limit.

If it is still the $10 stock, your biggest profit is that its stock price drops to $0,1,000.

But your losses are relatively unlimited, because its stock price may rise to $20, $200, or more, then you may lose $1,000, $19,000, or more..., without capping.

Secondly, our stock market is relatively opaque and irregular, which makes it easy to cause all kinds of irregular and malicious short selling.

Even the relatively standardized and transparent US stock market is prone to such behavior. For example, when investors are optimistic about Tesla, if you buy a Tesla car and make it catch fire on the street, it will inevitably have an impact on its stock price.

Of course, in places like the United States, such a simple and crude short selling method is seeking death, but like Director Yang designed by affecting the fluctuations in the stock prices of Feng Yiping's listed companies by smearing Feng Yiping, it is a reasonable short selling method.

It is difficult for regulators to obtain evidence of his violations.

Mr. Wang saw the overwhelming public opinion on the Internet before, and he was criticized by Feng Yiping. He felt that the stocks of the listed companies that Feng Yiping acquired in the United States, Coin Star and Netflix, the stocks of the two domestic companies listed in the United States, Jiasheng Automobile Network and Yijia Express Hotel, at least on the first day, would have a drop of more than 5%.

This time, the amount they shorted was US$20 million, which means that US$1 million was recorded on the first day, which can be said to be quite good.

But unfortunately, as of yesterday's closing, the stock prices of those two stocks did fall slightly, but they were only 1.13% and 1.25%. This is really disappointing. Maybe it will rise again immediately after opening the market today.

"Is there any way?" Mr. Wang asked Lao Chen anxiously.

He didn't really want to make much money with this, but mainly wanted to defeat Feng Yiping once.

"The United States also suggests that it can join forces with other institutions," Lao Chen whispered.
Chapter completed!
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