Office of Mushui Research Company, Austin Road, Tsim Sha Tsui, Kowloon, Hong Kong Island.

This is a company registered in China, but its office is located on Hong Kong Island. It has been established for just over half a year and only rents two small rooms as offices.

The employees of Mushui often come in and out with thick documents. Outsiders only know that they are engaged in financial business, but they have no idea what their main business is.

In fact, his business is short selling!

A few months ago, Mixed Water Company made big news.

They issued six consecutive reports on D listed company, saying that the other party was suspected of serious fraud and counterfeiting, suspected of fund misappropriation, exaggerated revenue and asset valuation, gross profit margin, etc., and gave a strong sell rating to D company's stock.

, the target price was lower than 1 magnesium yuan, and the stock price at that time was 9 magnesium dollars.

The report caused a huge response in the market, and Company D’s stock price plummeted 13% on the following trading day!

Company d continued to clarify and defend, but it was difficult to dispel market doubts. In less than a month, the share price of company d plummeted to 1.5 mg yuan, a drop of more than 80%, and the market value lost 200 million yuan!

In the process, a lot of money is made in troubled waters.

They lent 1 million shares of Company D to Merrill Lynch one month in advance and sold them on the market to receive 9 million dollars in cash.

Then publish negative information about company d to suppress the stock price. When the stock price drops to 1.5 magnesium yuan, it will spend another 1.5 million magnesium dollars to buy back 1 million shares and return them to Merrill Lynch.

Subtract 1.5 million magnesium dollars from 9 million magnesium dollars, and then pay part of the handling fee to Merrill Lynch, and the rest is profit!

This was Hun Shui's first move. He made a lot of money by shorting Company D.

After Company D's victory in the first battle, Hun Shui now set his sights on the second target.

Carl, we have all the information you asked for. The secretary walked into the office and placed a thick stack of information on the desk of Carl Thompson, the boss of Hunshui.

Thompson had just turned thirty-five and was in the prime of life, but his hair was already balding, all thanks to his years of mental work.

Taking the top piece of information, Thompson looked at it twice and smiled: Sure enough, Greenfield Culture established a shell company, forged fake contracts, inflated income, issued fake invoices, and the major shareholder misappropriated public funds. The evidence is all conclusive!

The secretary said in surprise: Can we take action?

Thompson nodded and said: You can start writing the report. But before that, let's say hello to Yang and let him get ready.

Okay. The secretary turned and left.

Thompson patted the information in front of him, proud of his keen sense of smell.

A few months ago, he accidentally saw an article in Barron's, which mentioned that Greenfield Culture had changed three auditors and four chief financial officers in the past year, and had adjusted its previous financial statements twice.

number.

The astute Thompson realized that there must be something wrong inside.

After several months of secret investigation, all kinds of evidence have been put in front of us. It is certain that the problem of Greenfield Culture is bigger than Company D!

What makes Thompson even more happy is that the stock price of Greenfield Culture is at a high of more than 30 yuan. If it can be suppressed to below 1 yuan, the profits will be extremely generous.

So, let's get started.

On the other side, Li Rui also started.

He found Greenfield Culture on the magnesium stock website.

The current stock price of Greenfield Culture is 32.71 yuan, with a market value of more than 700 million yuan. The Zhou family and his son hold 19.7% of the shares, and they barely have a net worth of less than one billion yuan.

However, these good days are coming to an end soon.

Going from a net worth of one billion to a debt of one billion is just a matter of a few drops.

Although Li Rui didn't make much money in his previous life, he had quite a wealth of financial management knowledge, was quite familiar with various financial methods, and was no stranger to short selling.

There are two ways to go short.

The first is borrowing, borrowing a certain number of stocks from various securities companies and selling them at the current market price. After the stock price falls, the stocks are bought back at the price after the fall and returned to the securities company. The profits obtained in this way,

It is the difference between selling and buying prices.

The second is to purchase a short option. The buyer pays a premium to purchase the right to sell at a specified price before a certain date. When it expires, he can choose to perform or not perform the rights conferred by the contract. This method has lower risks. If you choose not to perform,

, the maximum loss is the premium paid.

Originally, Li Rui should have adopted the second method, but if he short-sold a large number of options, he might have alerted the enemy.

What's more, the Wall Street riots in the previous life where retail investors forced short positions would have to wait for another ten years, so Li Rui decided to borrow directly.

At 9 pm domestic time and 9 am China time, the stock market officially opens.

How many steps does it take to short a stock?

The answer is, one step.

Li Rui originally opened a margin account that could be used for margin trading. After selecting Greenfield Culture on the website, he directly clicked on short selling.

The program automatically helped Li Rui borrow 400,000 shares of stock from a brokerage and sold them immediately after borrowing them.

400,000 shares were sold for a total of 12,000,000 mg.

This is just the beginning. Li Rui still needs to wait until the agreed repayment date of December 5, purchase 400,000 shares from the market, and return them to the securities firm to complete the entire transaction.

If all goes well, on December 5th, Li Rui will only need to spend 400,000 yuan to buy back the same stock.

The profits are astonishingly terrifying!

After doing all this, Li Rui was satisfied, and then he was waiting for Hun Shui to work for him.

Come on!

In Yanzhou, a building is still brightly lit late at night. In a huge room, dozens of screens flash K-line charts of stock markets from around the world.

A group of traders are nervously monitoring the stock markets of various countries and issuing buy and sell orders one by one.

It was strange that a certain trader suddenly frowned. After hesitating for a while, he got up and walked to the office next door.

In the office, a handsome and elegant middle-aged man, about forty years old, was reading a book.

It is an autobiography published by Zhou Changhua, the chairman of Luye Culture. It is actually an internal publication that he boasts and prints at his own expense. I don’t know how he got it.

Mr. Yang, there is a situation. The trader knocked on the door and came in.

What? the man asked.

The trader said: The stock price of Greenfield Culture fluctuated just now. Someone sold 400,000 shares, driving the stock price to 30.22 yuan.

The man's eyes narrowed: With such a large sum of money, did some organization get the news?

The trader shook his head: Judging from the operating methods, is it a coincidence that it doesn’t look like an institution?

The man said coldly: Continue to stare at Luye Culture, be gentler in your short-selling methods, and kill it silently, do you understand? Ask a broker you know to help check and see who is shipping the goods. As long as it is not

The organization just lets him be.

Got it! The traders were ordered to leave.
Chapter completed!