Excluding some of our less successful attempts in the stock market during the Republic of China period, counting from the official opening of the Shanghai Stock Exchange in mid-December 1990, the domestic securities market has only been around for 10 years.
In Europe and the United States, they have been playing the stock market for more than two centuries, and whether it is good or bad experience, we are still far behind.
At this time, those who study abroad either stay in the developed countries to contribute, or they hang out in places like Hong Kong and Singapore, where the stock market is fully integrated with the international market, just like Mr Zhang from UBS Warburg.
Because our Shanghai and Shenzhen stock markets are stock markets with Chinese characteristics, and they are not fully open to foreign investment, they are not quite used to it.
From this point of view, there are really not many people in China who truly understand the international stock market. Therefore, most people do not really understand things like short selling and malicious short selling.
It is possible that many heads of the securities departments of listed companies of central enterprises do not have the experience of Feng Yiping.
Around 2008, when everyone was speculating in stocks, he at least picked up a few books from the piles of books about stocks in the bookstore and studied them to find a reason for entering the stock market for himself, and also to find an excuse for the losses he might incur in the future.
He read those books quite seriously, and while teaching himself to read, he also read a lot of classic case studies.
Among them was this perfect, successful, classic sniping war on Mobile, which he read several times. Every time he read it, he hated it and cursed it in every way, hating the numbness of the central enterprises and the recklessness of those investment banks. So in terms of this matter and the specific process, Feng Yiping may not know as much as those traders, but in the end, he knows even more than those traders.
Short selling and malicious short selling have actually been going on all along. Those international investment banks even went so far as to short sell A-shares, and now it is not easy to short sell a stock listed in a market like Hong Kong, which is fully integrated with the international market.
In addition, central enterprises have always acted with self-possession and stability first, so this time they were played by overseas investment banks.
Later, there were also many successful counterattacks in China. For example, before Feng Yiping was reborn, Evergrande, a well-known domestic real estate enterprise in the same city, was targeted by the American short-selling agency Citron and was sniped at once.
Similar to the way they shorted Mobile this time, Citron also first released a lot of misinformation, such as insolvency and suspected fraud, to mislead investors, causing Evergrande's share price to plummet 19.6% that day.
However, Evergrande responded quickly and issued a clarification announcement just one and a half hours later, refuting each point. Three hours later, the company's chairman of the board of directors held a conference call with securities analysts, and with the support of many investment banks, they successfully won a defensive battle.
However, these things are not for Feng Yiping, an ordinary person, to worry about. Not to mention the huge losses suffered by Mobile, the key is that they were slapped in the face internationally, which puts the domestic authorities in an embarrassing position. At this moment, I guess they are gritting their teeth, learning their lesson, and figuring out how to train the relevant talent.
However, at the beginning, the students will definitely not be able to catch up with the teacher, so most people should think that this matter has come to an end. I guess not many people can see that the next step that the traders are most looking forward to is coming as scheduled.
This is also what Feng Yiping is looking forward to!
On Wednesday the 29th, Feng Yiping flew to Singapore at noon. This time, he is here to do something big.
It really is a big deal. He will use the more than 100 million US dollars of funds raised to trade Hang Seng Index futures.
Since it is the Hang Seng Index, why not trade it in Hong Kong?
There are many reasons, such as the fact that Hong Kong has restrictions on the number of Hang Seng Index futures contracts held by each institution, which does not meet Feng Yiping's vision of doing big business.
Singapore, on the other hand, is Asia's largest OTC market, where companies will take contracts worth hundreds of millions of US dollars.
More importantly, there is no doubt that this will be a bumper harvest. If Feng Yiping operates in Hong Kong, I'm afraid he will be given a title similar to 'the stock god'.
Whether in Hong Kong or in China, such a title is a source of trouble. Feng Yiping just wants to quietly ride the bandwagon to make a quick buck, and he has no interest in becoming famous.
As for this time, how far can Feng Yiping go? The margin for Hang Seng Index futures is less than 10%, to be more precise, the leverage ratio is 16. Later, he watched a sketch that said that in mahjong, one hundred million can become ten billion, and this time, he can make one hundred million become sixteen billion!
Please note that the unit is US dollars!
The Four Seasons Hotel is located next to the Orchard Road shopping district in the Lion City. This is the centre of the central district, and it is only a 5-minute walk to the financial district. In the luxurious suite on the 20th floor of the top floor, Feng Yiping, who is following local customs, is wearing a flowered shirt with local characteristics, lying on the large sofa in the observation deck, and staring at the computer screen.
With the Minister of Information Industry personally speaking, mobile stocks have slowly rebounded over the past two days. However, because the rebound has not been significant, and the Hang Seng Index is closely related to the US stock market, some people even say that the Hang Seng Index first reacts to changes in the US market, and then to changes in the local market. It just so happens that today, the US stock market has fallen slightly, so the Hang Seng Index has not risen much.
Feng Yiping eagerly awaits the arrival of December 1st.
On the evening of 30 November, the news from the US stock market was not optimistic for most people: the Nasdaq index had fallen by more than 100 points. But for Feng Yiping, it was great news, because it meant that no one would expect the unusual changes in the Hang Seng Index the next day.
On 1 December, Singapore was in the middle of the rainy season, but today was a rare sunny day. The temperature was a minimum of 24 degrees, which was a little muggy.
Feng Yiping got up early in the morning, ate a few pieces of bread absentmindedly, and then kept walking around the observation deck, looking at the computer screen for a while, and then at the city skyline again.
From the opening of the market at 9:45, the share price of M-Mobile rose significantly, and by 12:30 noon, it had risen by nearly four percentage points!
The sharp rise in the share price of M-Mobile drove the Hang Seng Index up by nearly 200 points!
Feng Yiping was so happy that he kept screaming. On a whim, while still on the ground, he somersaulted twice, which was not very successful.
At this time, there were also many people, just like him, celebrating.
These were the traders who had sniped the shares of Mobile, and this was the second and final stage of the plan, which was also the most profitable.
Short selling the shares of Mobile was just the first step, and waiting for the share price of Mobile to rise, driving the Hang Seng Index up, and thus making a profit by going long on the Hang Seng Index, was the second step, and also the ultimate goal of their plan.
Why would a rise in M-Mobile's share price drive up the Hang Seng Index? Because after the second placing in October, M-Mobile's total number of shares in circulation and total market value accounted for a quarter of the Hang Seng Index. In short, manipulating M-Mobile's shares would indirectly manipulate the Hang Seng Index.
After the market opened at 2:30 pm, as expected, the share price of M-Mobile continued to rise steadily, and so did the Hang Seng Index. At this time, Feng Yiping's hands were red from clapping. At the close of trading at 4:00 pm, M-Mobile's share price had risen sharply by 7% today, while the Hang Seng Index had also risen abnormally by 400 points!
Hearing the news that all futures contracts had been delivered, Feng Yiping casually dropped his phone, let out a strange cry of 'Wow!' and rolled around on the bed.
He was just so happy!
He had already calculated this many times in recent days, and when the prediction became reality, he couldn't help but do it again.
The Hang Seng Index is currently below 20,000 points, at HK$1.50, and the value of a single contract is less than HK$1 million, with a deposit of less than HK$60,000. The point gain of all his contracts is around 400 points, which means a profit of around HK$20,000 for a single contract, or more than a third of the profit, which means that the total profit today is a little more than a third of the $1.6 billion. After deducting various fees, he has made a tidy sum of $500 million!
Oh, just a small addition: the unit is US dollars!
This is not an investment, it's more like picking up money!
And those traders who have been working hard for at least most of the year, unlike Feng Yiping, don't know exactly how much the Hang Seng Index will rise today. It is estimated that their combined profits are not as much as Feng Yiping's alone.
However, although this US$500 million seems like a lot, it is still insignificant when compared to the HSI's daily trading volume of hundreds of billions of Hong Kong dollars. In the big market of Singapore, it will only cause a ripple at most. Moreover, he has carefully selected more than ten companies to trade with, with an average of tens of millions for each.
So there won't be any problems!
Feng Yiping once again felt that he was walking on air. There was a difference of just one zero between 60 million US dollars and 600 million US dollars, but it was like night and day.
That said, if you don't consider the invisible wealthy families, according to the mainland rich list disclosed by Forbes last year, the assets he now owns should rank among the top three, and he is in second place.
That said, if you don't consider other factors, such as private jets, you can buy one now for fun.
From tomorrow, when he goes to UBS to do business, he can speak louder.
...
Feng Yiping, who was so happy that he could not find the right words to express it, did not feel embarrassed at all as he got down on the floor and looked around for the mobile phone he had just thrown away. He looked for a while before he reacted, really happy and confused. He laughed at himself, dialled his mobile phone with the landline and finally found it under the sofa.
Then, starting with his parents, he called everyone one by one. Of course, he couldn't talk about what happened today, but that didn't stop him from enthusiastically chatting with everyone for ten minutes about everything under the sun. As for the international roaming fees that usually make him feel bad, they were all behind him at this time.
As the saying goes, 'the father knows the son best.' After hanging up the phone, Feng Zhanchang asked, 'Yiping, have you accomplished something great again?'
After sharing his indescribable happiness with everyone, Feng Yiping, who was only considered middle class at best, felt a blankness in his mind. He was extremely excited, but also extremely tired. He had also been extremely satisfied. For a moment, he wondered if he could stop here and not work so hard anymore.
Then he thought of his long-cherished dream. The money was huge for him personally, but it was still far from enough for what he wanted to do.
'Keep working hard, Feng Yiping,' he said to himself, clenching his fists.