Xia Ziyu’s assistant quickly returned:
“Director Xia, the eldest young master says the group’s stock price is also falling. He won’t lend—”
In fact, Du Zhaohui’s actual words were much harsher. He said even if Xia Ziyu were to cry in front of all Hong Kong citizens, he wouldn’t lend her money. He cursed her for bringing this on herself, jumping into the stock market without knowing how to trade stocks, and losing the Du family tens of millions. Even though Du Chengrong had left her two hundred million, he would file a lawsuit to recover that money!
At any other time, Lu Yunshi would have certainly mocked Xia Ziyu, but now she couldn’t even bring herself to laugh.
Finally, it was Lu Yunshi who contacted the Lu family.
Xia Ziyu proposed to borrow money:
“Mr. Lu, I’ve been forced into a margin call. Lu Family News’ stock price will continue to fall, which isn’t good for anyone. Why doesn’t the Lu family lend me money? If I avoid the margin call, it will help stop the Lu family’s stock from falling… Collateral? Of course, I have collateral.”
Xia Ziyu pledged everything to the Lu family as collateral – the properties Du Chengrong had given her, along with the jewelry and cars he had gifted her – in exchange for a thirty million Hong Kong dollar loan.
The Lu family’s money arrived within an hour, partly due to the rumors about Du Chengrong’s will. Du Chengrong was about to wake up, and the Fifth Concubine was pregnant – there was no fear about repayment.
If Du Chengrong died, the Fifth Concubine would get two hundred million in family assets, so thirty million was nothing!
Even if she couldn’t repay, there was still all that collateral.
The Lu family was certainly shrewd.
He Zhitong called Tang Yuanyue, who was already overwhelmed, in the middle of a company meeting.
All Hong Kong-listed companies’ stocks were falling. As CEO of Yuhua Group, Tang Yuanyue couldn’t leave at this time.
When he heard that He Zhitong was trapped in the stock market, Tang Yuanyue only said two words:
“Cut losses!”
Cut losses?
In the time they’d wasted, Lu Family News had fallen another 0.2 dollars.
“No, I won’t close my position. Tang Yuanyue, we’re husband and wife. I’ve lost over thirty million – it reflects poorly on you too. If you won’t help me, I’ll have to ask my family for help…”
Over the phone, Tang Yuanyue’s voice seemed to freeze. Perhaps after two minutes, he finally relented:
“I can give you twenty million. Zhitong, it’s almost midday market close. I don’t believe the Hong Kong market will rebound in this situation. Lu’s family shows no signs of supporting their stock price – it might fall further this afternoon. I’m giving you this twenty million not to support your decision, but hoping you’ll remember this lesson!”
There were two ways to be a wealthy family’s wife.
One was to be the husband’s capable assistant, helping with daily life, family finances, and even part of the husband’s business.
The other was to receive a monthly allowance with no say in family financial matters.
Tang Yuanyue had always hoped his wife would be the former, but He Zhitong was the latter.
The scariest thing wasn’t that He Zhitong lacked ability, but that she lacked ability yet aspired to be the former type. She secretly entered the stock market – when Xia Xiaolan shorted Lu Family News, He Zhitong insisted on going long. This wasn’t rational investment behavior; it was spite.
He Zhitong was right – they were husband and wife, one entity. The money He Zhitong lost was her private savings. Tang Yuanyue couldn’t stop He Zhitong, so he gave the twenty million prepared for He Zhitong to lose it all. He just wanted to spend twenty million Hong Kong dollars to buy future peace – hoping that after this huge loss, He Zhitong would be content being a wealthy family’s wife and stop making such foolish, emotional investments!
Both Xia Ziyu and He Zhitong managed to secure funds.
After adding margin deposits, neither faced forced liquidation for now.
The midday market close arrived.
They got a chance to breathe.
Who could have imagined that in just one morning, Lu Family News stock would fall another 2.4 dollars?
By midday close, Lu Family News was at 17.3 dollars per share!
Neither Xia Ziyu nor He Zhitong had any mood for jokes, let alone lunch plans. They dispersed as soon as they left the trading room. Xia Ziyu had felt waves of tightness in her belly and, worried about the baby, immediately went to the hospital. All three of them avoided Xia Xiaolan because the Hang Seng Index had fallen 845 points that morning, meaning Xia Xiaolan’s short positions had earned another fortune.
How much had Xia Xiaolan earned so far?
Xia Ziyu, He Zhitong, and Lu Yunshi all refused to contemplate this question.
Xia Xiaolan hadn’t left the trading room.
Outside were many crazed investors who had lost everything, along with reporters waiting for insider news. Going out now would purely attract hatred.
During lunch break, she simply stayed in the trading room with her company staff, even having lunch there.
Despite the late October weather, Zhang Bailun was soaked through.
This wasn’t nervous sweat, but excitement.
He hadn’t expected that after the government implemented various market rescue measures, the Hang Seng Index would still fall so terribly on the market open! In just one morning, it fell more than the entire day of the 19th. What would happen in the afternoon? Anyone could guess!
This might seem unsympathetic to the investors losing everything outside, but in the trading market, where was there room for compassion? If others didn’t lose, Qihang would have to lose – better it be others.
Xia Xiaolan made big short positions, and if Qihang employees had personal stock accounts, most followed their boss. That’s why Qihang’s employees were so dejected during the three days when Xia Xiaolan suffered huge losses.
If the boss dared to use hundreds of millions to short, what was there to fear about the small amount in their accounts?
Zhang Bailun was the same, also shorting Lu Family News, though he only shorted 100,000 shares.
Now he wanted to slap himself, preferably until his face swelled.
Why hadn’t he used more leverage?
What was a mere 100,000 shares? If he had shorted 500,000 or even 1,000,000 shares then, he would have made at least several million by now.
Of course, that assumed his account could have held out until the market crash.
Ji Jiangyuan had also shorted 200,000 shares. His capital came from private loans from Xia Xiaolan, plus his two months’ summer wages at Qihang Capital, including the 3,000 yuan Xiong Baiyan had given him before he left school.
Ji Jiangyuan had invested all the money he could gather.
He arrived in Hong Kong on the 15th, and joined the short selling on the 16th, when Xia Xiaolan had her biggest loss. That day, Lu Family News opened at 21.7 dollars. Ji Jiangyuan followed by selling 200,000 shares. On Monday the 19th, when the market crashed, Ji Jiangyuan didn’t close his position. Now with Lu Family News fallen to just 17.3 dollars, down 4.4 dollars per share, if Ji Jiangyuan had chosen to close before the morning market break, he would have made 880,000 Hong Kong dollars on his 200,000 shares!
Only a fool would close positions now.
This was exactly why Zhang Bailun regretted his decision – not only did he lack Director Xia’s courage, but even after choosing to follow her short position, why hadn’t he shorted more?
Even the young Manager Ji had more courage than him.
Zhang Bailun still held some other stocks. Though he had sold them on the 19th when things looked bad, he still suffered significant losses in this stock market crash. The profits from shorting 100,000 shares of Lu Family News barely covered part of his losses.
If only he had shorted more.
Towards Xia Xiaolan, Zhang Bailun naturally felt nothing but sincere admiration:
“Director Xia, the 5 million shares you shorted on the 19th were sold at 22.3 dollars, and now Lu Family News has fallen to just 17.3 dollars. You’ve made 5 dollars per share…”
Zhang Bailun’s heart was racing; he calculated the number but could hardly believe it.
Yu Li’s eyes widened, “Director Xia, just from the 5 million shares you shorted on the 19th, you’ve made 25 million Hong Kong dollars, right?”
This was just from the 5 million shares shorted on the 19th.
Just from the 5 million shares of Lu Family News shorted on the 19th, she had made 25 million!
Yu Li couldn’t calculate all the paper profits in her head; she needed to write it down.
Ji Jiangyuan blurted out a number, and Yu Li was stunned.
“Director Xia… have you made that much?”