Huang Haifei thought for a while: "Mr. Wang, your funds have exceeded 1 million, and I can apply for you up to 6 times the allocation."

Their Yongheng Securities Company is just a small securities company. There are regulations for allocation of funds. They dare not allocate too much to customers. Wang Guanxi's funds have exceeded 1 million yuan. If there is still allocation of funds, he needs to apply to his superiors. He does not have this power.

"Six times?" Wang Guanxi tapped the table gently. He wanted to fund 10 million, but it seemed that it would not work.

"6 times, just 6 times, give me an account of 6 million right away."

Huang Haifei hurriedly said, "Mr. Wang, wait a moment, I'll talk to the manager."

This time, he allocated 6 million yuan, and the interest rate was also very high. He also received a lot of commission. He said that he had to help Wang Guanxi apply for anything.

"Well, go and go back quickly." Wang Guanxi continued to drink tea.

A few minutes later, Huang Haifei returned.

"Mr. Wang, the manager wants to meet you, you can talk to him in person."

"That's good!"

Then Huang Haifei took Wang Guanxi to an office, where a man with a black suit, long face, had a stroke, was about 24 years old and was full of energy. When he saw Wang Guanxi, he quickly got up, walked over enthusiastically, and reached out and said, "Mr. Wang, you are here, my name is Feng Shaokun, the manager of Yongheng Securities Company."

The Yongheng Bank behind Yongheng Securities Company belongs to the Feng family. I think this Feng Shaokun is the younger generation of the Feng family.

"Hello, Manager Feng" Wang Guanxi shook hands with him.

"Come on, please sit down"

So Wang Guanxi sat down.

"Xiaofei, go to tea"

"Yes, manager" Huang Haifei hurriedly left.

While drinking tea and chatting, Feng Shaokun inquired about Wang Guanxi's family status, but Wang Guanxi did not mention it at all.

He asked curiously: "Mr. Wang, are you really planning to invest 6 million yuan in stock trading?"

Wang Guanxi is only 16 years old and is just a middle school student. I don’t know if his parents know it?

You should know that when trading stocks, it is easy to lose money. It is normal to be trapped. At that time, this 16-year-old child has suffered huge losses and cannot think about it, it will be bad. If his parents come to him, it will be a big deal.

When the news comes to the news, their Yongheng Securities Company will have a bad reputation.

"Well, yes, I have a problem with the capital of 6 million to make a stock?" Wang Guanxi took a sip of tea, and then Feng Shaokun poured him tea again.

"Mr. Wang, this is indeed no problem."

"However, you have to write a statement. It doesn't matter if your losses are not related to our company. Everything is decided by yourself. We have never instigated you to allocate funds to trade stocks. Can you do this?"

Something happened in Hong Kong. A little rich second-generation played stock trading and was still allocated capital, but it suffered a huge loss. At this time, it was also in the news that it was said that the securities company instigated the children to allocate capital and stock trading.

"This is absolutely fine." Wang Guanxi gently put down the teacup: "Come on the paper with that."

"OK."

Then Feng Shaokun brought paper and pen, and then Wang Guanxi wrote a statement stating that his losses were all his own responsibility and that allocation was his own decision and that it had nothing to do with Yongheng Securities Company.

After Feng Shaokun read the statement, he really had no problem, so he brought the capital allocation contract and asked Wang Guanxi to sign it.

After signing the contract, Wang Guanxi paid a risk deposit of HK$1 million, paid HK$60,000 in lump sum, and obtained a Hong Kong dollar account of Yongheng Securities.

"Mr. Wang, happy cooperation"

“Happy cooperation!”

Then Wang Guanxi said: "Manager Feng, I plan to short a stock. Does your securities company provide margin trading?"

The so-called "short selling" is actually when you expect a certain stock to fall in the future, you sell the stocks you hold at the current price, and wait until the market falls before buying to get the difference profit. Simply put, it is to borrow the goods first and then buy and return it.

Hong Kong stocks can be shorted, and those who short Hong Kong stocks are generally institutions rather than individual investors. After all, individual investors are a vulnerable group in the stock market. If individual investors participate in short selling, the risk is quite large and it is easy to suffer losses. Even for market makers, the risk of the short selling mechanism is also very large.

When it comes to shorting Hong Kong stocks, small and medium-sized investors are very cautious and basically will not participate in short selling.

To short-sell Hong Kong stocks, you must sell them in margin trading, that is, investors have the securities firms who open an account that can be loaned and short-selled. Even if a certain stock is allowed to be short-selled on the Hong Kong Stock Exchange, if the securities firms you open an account have no securities to lend, it will be futile to short-sell.

Short selling in Hong Kong stocks has requirements on the amount of funds. The minimum margin required in the account is 500,000 yuan.

Then, you can go to the market through brokers to lend you goods and short them. After making a profit, you can buy back the stocks.

The handling fee is high, borrowing requires interest, and not all stocks can be shorted.

There are also many stocks you can't borrow in the market.

Feng Shaokun asked quickly: "Mr. Wang, is it going to short which stock?"

Wang Guanxi said: "Tianye Liquidation Company"

Previously, his financial news captured a mainland listed company in Hong Kong called Tianye Shuidi Company.

It is a company mainly engaged in the manufacturing and sales of irrigation systems and equipment.

Now its share price has risen from 3 yuan per share to 4 Hong Kong dollars per share, with a total share capital of 500 million shares and a market value of 2 billion Hong Kong dollars.

The company will soon suffer a heavy blow due to large-scale engineering accidents, and its stock price will plummetly, and its market value will fall to HK$200 million in the future!

So Wang Guanxi wants to short its stock.

However, if you short his stock, you cannot short it naked. You need to borrow stocks from other securities firms, sell them first, and then buy them.

Feng Shaokun was stunned, "Tianye Liquidation Company?"

Wang Guanxi nodded: "Yes, can you Yongheng Securities Company borrow its margin trading?"

Feng Shaokun: "Yes, there is no problem with this, but the handling fee and interest rate are quite high. Are you sure you want to start a Sky Industry Release Company?"

Securities and financial institutions usually hold many stocks of listed companies and then lend them to short sellers to charge handling fees and interest. However, if the stock price really plummets, securities companies will lose money. Short selling is equivalent to betting with securities companies. Their Yongheng Securities Company does not have the stocks of Tianye Shuai Company, but they can help Wang Guanxi borrow them in the market and charge intermediary fees.

Wang Guanxi nodded: "Consolate"

Feng Shaokun: "Okay, no problem. I'll call Yonglong Securities Company now. Where can they have the stock of Tianye Shuishing Company? I can lend you short!"

"Thank you then."

The next day, March 11, Tuesday morning.

Wang Guanxi, who had just been dismissed, shorted 1.5 million shares of Tianye Liquidation Company at a position of 4 yuan per share, and sold a total of 6 million shares.
Chapter completed!