Government rescue funds.
Bank interest rate cuts.
Financial tycoons’ capital support.
With these three positive factors, Hong Kong stocks would surely stop falling and rebound.
Indeed, most people were more optimistic than CR Investment’s staff, who dared not guarantee Xia Ziyu that stocks would rise, only suggesting timely loss-cutting.
October 26th.
Another Monday. Last Monday’s dark clouds looming over Hong Kong seemed to have largely dispersed, and today’s exchange would certainly draw attention.
Financial reporters from newspapers and television stations camped outside the exchange for first-hand information.
Hong Kong stocks’ movements affected the entire territory’s economy and livelihood – naturally, reporters would come.
When Xia Xiaolan arrived, she found not only Xia Ziyu and Lu Yunshi but surprisingly He Zhitong as well.
He Zhitong personally coming to the exchange?
Reporters might have found it strange too – wealthy ladies didn’t personally trade stocks, their assets were professionally managed.
Some reporters jokingly asked if Mrs. Tang was trading with her private funds. He Zhitong answered vaguely:
“I’m accompanying a friend. All of Hong Kong is watching whether stocks rise or fall – I don’t want to be disconnected from society.”
Friend?
Was it Lu Family Media’s Lu Yunshi, or the Du family’s Fifth Concubine?
They also surrounded Lu Yunshi asking for her thoughts, after all, Lu Family Media had fallen 2.6 dollars in one day last Monday.
Seeing Xia Xiaolan approach, Lu Yunshi gave a cold smile:
“Why not ask Qihang’s President Xia? President Xia profited handsomely from short-selling. If President Xia shows mercy today, Lu Family Media will surely rise.”
Just then Xia Xiaolan stepped out of her car.
Two reporters immediately surrounded her, asking if she had maliciously shorted Lu Family Media.
Xia Xiaolan smiled, “Miss Lu overthinks. I made judgments based on market performance. Hong Kong is a free economic port – surely I shouldn’t be criticized for earning a little money?”
Of course not.
Not only did no one criticize Xia Xiaolan, but they also admired her.
Such was Hong Kong’s straightforward atmosphere – those capable of making money earned respect!
“President Xia, we heard you made tens of millions in one day last week – is that true?”
“President Xia, what was your judgment based on? Do you have thoughts on today’s Hong Kong market performance?”
When they continued asking, Xia Xiaolan refused to elaborate, squeezing into the VIP room as trading began.
Since reporters couldn’t enter anyway, Xia Xiaolan finally found peace.
Yu Li wiped her sweat, whispering: “Hong Kong people are really strange.”
Then she felt happy for Xia Xiaolan, hoping stocks would fall sharply again today – who would dare spread rumors about President Xia after this?
In another VIP room sat Xia Ziyu, He Zhitong, and Lu Yunshi.
Xia Ziyu finally learned that He Zhitong was the “big player” who had made large purchases.
“Does Mrs. Tang feel optimistic about Hong Kong stocks today?”
Xia Ziyu tried probing for information, but He Zhitong just smiled and changed the subject.
Xia Ziyu secretly sneered – if this He woman wasn’t also bullish, she would truly wish her heavy losses.
Just because she married Tang Yuanyue, what was so great about that? Such an arrogant face, looking down on her as Fifth Concubine – she shouldn’t have followed into the VIP room!
All three harbored their thoughts.
Yet each hoped Hong Kong stocks would stop falling and rebound today.
Xia Ziyu already had thoughts of cutting losses. With He Zhitong’s arrogance, she couldn’t be bothered to communicate with her, just waiting for Lu Family Media to rise slightly, limiting losses to 8 million before closing positions.
10:00 AM.
The exchange opened.
Completely beyond Xia Ziyu’s expectations.
The Hong Kong government’s rescue measures had absolutely no effect!
Within just 15 minutes of opening, the Hang Seng Index fell 650 points!
In 15 minutes, the decline exceeded the entire 19th… the four-day closure was terrible – investment companies and funds’ accumulated sell orders from several days exploded today.
Within 15 minutes, the Hang Seng Index fell so much that all three women turned pale.
Close positions?
There was no chance to close positions and cut losses.
For investors who went long, closing positions meant selling previously bought stocks – now the entire market was selling, with no buyers!
Within 15 minutes, Lu Family Media dropped from the opening price of 19.7 to 17.5.
Another 2.2 dollar drop per share.
What did this mean?
CR Investment’s 12 million shares had already lost 38 million!
Xia Ziyu’s assistant spoke trembling: “Director Xia, should we close positions now?”
Xia Ziyu’s stomach tightened repeatedly, her heart also trembling – this was 38 million, not 3,800 dollars.
“Close now and CR Investment disappears tomorrow – how can I close? Continue adding margin deposits!”
“But the company account’s funds…”
Money was running out – without closing positions themselves, they would face forced liquidation.
Cutting losses now would leave just a few million in the company account.
Red veins filled Xia Ziyu’s eyes: “Go borrow from the group. If Du Zhaohui dares refuse, I’ll personally go on television to tell how he abused his stepmother and unborn brother. I’ll speak at the group’s shareholders’ meeting, cry at Mr. Du’s bedside – let’s see if Du Zhaohui can lose this face! Also, call Mr. Du’s lawyer, and ask if I can advance some funds from Mr. Du’s account!”
The stock market – this was the stock market!
In mere minutes, losses had nearly exceeded Xia Ziyu’s limits.
Xia Ziyu only had tens of millions total, yet dared buy 12 million shares of Lu Family Media. Calculated at the stock’s peak price, which was over 200 million in market value – using leverage operations.
Tens of millions leveraging over 200 million in stocks – this leverage ratio wasn’t particularly high.
Her misfortune was the stock falling too fast. She held through the 19th without closing, and today couldn’t close even if she wanted.
Either continue adding margin to the account waiting for Lu Family Media to stop falling and rise, or watch it continue falling until forced liquidation.
Nearly 40 million in losses – Xia Ziyu couldn’t afford it!
If Du Chengrong died it would be different – she could inherit 200 million.
If Du Chengrong woke up to find she’d destroyed CR Investment, he would never trust her investment abilities again!
The assistant hurriedly left to contact Du Zhaohui.
Xia Ziyu stared with bloodshot eyes at Lu Yunshi:
“Miss Lu, if your Lu family doesn’t deploy funds to support the price, will you bend and welcome Xia Xiaolan as Lu Family Media’s new shareholder? If she closes her short positions now and buys in at the bottom…”
Lu Yunshi’s mind buzzed.
Xia Ziyu lost nearly 40 million – she and He Zhitong had only bought 2 million fewer shares than CR Investment, just 5-6 million less in losses.
Xia Ziyu lost 38 million, they lost around 33 million – not much difference.
Most of it was He Zhitong’s money – Lu Yunshi’s small investment was negligible.
Lu Yunshi didn’t know how to face her friend. He Zhitong turned pale, surprisingly supporting Xia Ziyu’s suggestion:
“Abby, contact Uncle Lu. I’ll… I’ll call Yuanyue too. We need help.”
The Lu family couldn’t directly buy back shares – Hong Kong’s government still restricted listed companies from repurchasing their stock. But the Lu family could deploy funds, could “lend” money to others, like lending to the Du family’s Fifth Concubine, lending to her!
He Zhitong contacting Tang Yuanyue meant admitting her failure.
This deeply embarrassed her.
But without contacting Tang Yuanyue, with insufficient margin in the account, she would face forced liquidation, instantly losing over 30 million – what could she do?
After all, her private funds only totaled 40 million!