Reinventing the Millennium

Chapter 995 brings you a sentence (4k)

The late night of April 4 was exceptionally cold.

The news from Yike Company is like pouring a basin of cold water on the head of the short-selling agency in winter, or pouring scalding boiling water down the throat in the scorching heat.

Yes, it's more like boiling water, no matter what the seasons are, you have to cry out in pain!
how could you do this?

President Fang!
Twitter is still discussing the changes brought about by Yike’s shareholding, but all short-selling institutions, financial practitioners, and people with relevant knowledge or a little understanding of the meaning know what happened!
Together with the locked-up shareholdings of shareholder institutions due to the reduction of holdings, Yike Department can control 89.3%, and only 10.7% is left in the market. Position size accounted for 15.6%.

10.7-15.6=-4.9%.

Negative 4.9%!

This means that, in an ideal situation, short sellers would sweep away all the outstanding shares in the market, leaving 4.9% of the shares unaccounted for!
All stocks are 100% in total, now it is 104.9%!
Where did this 4.9% liquidation come from?

And why can this happen.

Because the U.S. financial market can be short-sold naked, there are various financial derivatives.

Under normal circumstances, if you look at the development of Yike, you want to short it. Investors borrow stocks from institutions and sell them, and then buy them back when the stock price falls to a low level. It is still returned to the institution, which is short selling by securities lending.

Naked short selling means not borrowing stocks, directly selling stocks that you don’t have in the market, and then buying stocks from the market for delivery within the agreed time limit.

This can lead to excess stocks out of thin air.

Financial derivatives are somewhat similar. There are not only products based on securities lending and naked short selling, but also complex trading profit-making tools such as A borrowing B, B borrowing C, and C borrowing D. They can also bring "extra" stocks .

This is the case with Yike now.

The consequence of this situation is that...

There are not enough tradable shares in the market, so the short-selling institutions quickly buy enough stocks to close their positions. As for the institutions that cannot buy stocks later, who cares about their life and death?
There are 15 people in total, and you can live by running out of this door, but there are only 10 people, and the door will be closed after running.

This is the situation that short-selling institutions are now facing each other, squeezing and stamping on each other, and have to push the stock price to rise rapidly when supply exceeds demand, that is, a short squeeze.

It is almost conceivable, no, there is no need to imagine, this time there will inevitably be a margin call, liquidation, liquidation, bankruptcy, jumping off a building... and the only one who can end this situation is Fang Zhuo, the head of Yike!
Mr. Fang, where are you?
Mr. Fang, where did you fly to?

Mr. Fang, you took my soul away!

Mr. Fang, you lost your rich, I picked it up for you, come and get it!
Mr. Fang, hurry back, the exchange has sent money!
Patent wars don't matter anymore! The ITC ruling doesn't matter anymore!

As long as the Nasdaq opens on Monday, panic will inevitably occur, the stock price will inevitably be pushed up, and all kinds of positions will inevitably be liquidated!
"How could this be, how could this be..." Andrew, a Wall Street bounty hunter, sat in front of the computer and was stunned for 10 minutes. As soon as a thought arose in his mind, he was entangled by another thought. In the end, he became more and more entangled and couldn't think of anything. I don't know, just muttering to myself.

The mobile phone on the table vibrated "buzzing", and the landline at home rang "ringing".

It took Andrew a while to regain his senses, he stood up unsteadily, reached for the phone, but before he could get it, his legs gave way and he fell back down.

He can almost confirm that he is doomed this time.

Before he knew it, another half hour passed in a daze. Andrew forcibly pulled himself together, drank the cold coffee on the table and slapped himself again, then picked up his mobile phone and called back the fund partner who was frantically calling.

"What should I do? What should I do?" Even though Yike's press conference has passed for a while, the partner's voice is still trembling, and even the accusations and reprimands are weak, "Yike has a short squeeze, and we have fallen into a trap!"

Andrew was a little distracted, yes, he broke into a trap.

It took him a while to make a sound, and then he realized that his voice was hoarse: "We want to sue Fang Zhuo! He is manipulating the market! We are looking for someone, we are looking for someone, we are going to threaten him! We, we..."

Fang Zhuo has already flown away!
There are only two days between now and the opening of Nasdaq. How can there be threats across the Pacific Ocean in these two days?Who to threaten?Looking for Nokia?Looking for the SEC?Looking for ITC?

Who can threaten a premeditated shameless, despicable, vicious and vicious global rich man in two days?
And who can make such a person give up the profits that are at least billions of dollars that are about to be handed over?

Andrew couldn't speak, and suddenly laughed to himself.

"Andrew, Andrew, Andrew." The partner on the phone suddenly called the Wall Street bounty hunter loudly, and said, "There are still two days, or, or, you also fly to Huaxia now, to find Fang Zhuo, Go find Mr. Fang!"

"What am I going to do?" Andrew said dumbly.

The partner suddenly became furious: "I said it a long time ago, I said it a long time ago, you are too high-profile, why did you offend Mr. Fang? Why did you go to the show to question him? You go to the east and apologize to him!"

Andrew said dismally: "It's useless, how could he stop because of this."

"You're not alone! The fastest ticket has been sold out!" The partner calmed down, "Go to Mr. Fang, go to beg him, go cry bitterly, go and find his company, even if it's jumping, Jump off his stairs too!"

Andrew said numbly: "Okay."

"I heard that the top executives of Goldman Sachs are going to Huaxia overnight! You go with them!" The partner said the latest news.

Andrew subconsciously asked: "Goldman Sachs is also going? What are they going to do?"

Isn't Goldman Sachs with Yike?
It seems to be activated thinking.

Andrew realized what happened again in an instant, which was very prosperous!

He took a few breaths, and a glimmer of hope suddenly rose in his heart, and he jumped up from the chair: "Goldman Sachs is also going to Huaxia. They are aware of the seriousness of the problem, and they will definitely have a bargaining chip to threaten Fang Zhuo!"

"No." The partner said with certainty, "Goldman Sachs is also seeking Mr. Fang!"

go ask!

Also to ask!

Team up to ask!

Wherever Mr. Fang flies, fly there immediately now!
As long as Mr. Fang is willing to open his mouth, he can kneel down and beg him!

No, kneel down first and then beg!
Andrew took two deep breaths, and his eyes fell on the computer screen. It was still the previous information. There were not only the Yike press conference, but also the previous fun. Fang Zhuo paid attention to the question: what is the state after bankruptcy?

What's it like after bankruptcy?what kind?what kind?

I thought this was Boss Fang's self-report, but I didn't expect that his sudden concern was directed at himself.

Andrew thought about Mr. Fang's performance these days, and felt his legs and feet go weak, his heart trembled, and his scalp went numb just after taking two steps.

...

The Qingzi arrived safely in China's airspace.

Because of the time difference between the two places, Fang Zhuo and his party who took off from New York in the afternoon will also arrive in Shanghai in the afternoon.

The two reporters from "Huaxia Securities News" who took the opportunity this time were really glad to be able to come back with them, and they interviewed the parties as if they were an exclusive interview.

Reporter Tao Ruohong met Mr. Fang himself for the first time, and found that he was more friendly and talkative than expected.

Yike is now facing a crisis, in the final analysis, it is the situation at the patent level.

Therefore, Tao Ruohong intentionally did not ask about Yike's recent stock price changes, but asked Mr. Fang to talk about his thoughts on the development of the company. Yike has grown from weak to strong and then encountered challenges. His ideas must vary with the stages. It's different.

Sure enough, Mr. Fang talked about the development of Yike and made a lot of reflections.

Whether it is the supply chain, products, or cooperation between all parties, Mr. Fang carefully reviewed it, and admitted with some regret that he failed to do his best in this process.

Tao Ruohong recorded silently, seeing that Mr. Fang did not talk about the recent lessons, he guessed that he might also be distressed or even painful.

Halfway through the voyage, the interview-like conversation ended.

Tao Ruohong noticed that Mr. Fang was reading English books very attentively, and he didn't feel like putting on a show, so he asked about the content.

"It's a book by an American economist named Friedman, who won the Nobel Prize in Economics." Fang Zhuo introduced casually, "He uses rational expectations to explain the causes and different stages of stagflation, um, quite Attractive."

Tao Ruohong was sure that she had never heard of this name.

She doubted that Qi Fang was always putting on a show in front of her.

When Mr. Fang put down the book and began to read the materials instead, Tao Ruohong politely borrowed the book, and after looking through it, he found that there were notes on it.

——Unemployment and inflation, the first stage, negative correlation, one ebb and flow, the second stage, the natural unemployment rate that is difficult to eliminate, and the third stage, deviant policy intervention and market mechanism, the two aggravate each other.

——In the short term, unemployment and prices are inversely proportional, and there is a substitution relationship, but in the long run, this relationship will disappear, and the employment level will no longer be related to inflation. If expansionary policies are to be implemented, the result will only be stagflation.

Tao Ruohong took a rough look and found many notes like this.

She asked curiously: "Boss Fang, you are usually so busy, how do you have time to read?"

"Isn't now the time? I have a lot of free time on the plane. Watch more and learn more." Fang Zhuo smiled and said with emotion, "The world is changing too fast, and it is easy to encounter obstacles if you don't learn much."

Tao Ruohong lifted her spirits and felt Mr. Fang's low mood, but this was what the interview needed.

Fang Zhuo stopped to look at the materials in his hand, and said thoughtfully: "Not only books, but also some policies are changing rapidly, which need attention and learning, just like the US financial market, the financial crisis that occurred last year was very serious, which made policy There was an immediate change in the Internet, and the US Securities and Exchange Commission SEC banned short selling of stocks of financial institutions such as Goldman Sachs and Merrill Lynch in July, which is a temporary ban.”

“The situation deteriorated, and the temporary ban was extended from July to August, and in September, it issued a short-selling ban, prohibiting short-selling of the 7 stocks it listed.”

"Later, the list was increased to 950."

Tao Ruohong thought about the situation Yi Ke was facing now, and said regretfully: "Yi Ke is not on this list."

Fang Zhuo nodded slightly.

Tao Ruohong couldn't help asking: "Why? Is it possible to fight for it? It's like a safe haven."

Fang Zhuo pondered over and over again, this question...

He can now explain the situation caused by Yi Ke, but it seems a bit gimmick to talk face to face.

Fang Zhuo replied euphemistically: "Yike needs this, and it can grow only after going through the stormy sea."

Tao Ruohong was in awe: "Even if Yi Ke suffered a failure because of this, Mr. Fang, don't you regret it?"

Fang Zhuo said affirmatively, "I don't regret it."

Tao Ruohong stood in awe x2.

Take a look, this is a business leader, even if Yi Ke is facing a crisis, even if Yi Ke is sinking, he still has such a heart!
Tao Ruohong thought of the New York media who drove after him for interviews, and remembered their questions, and asked again: "President Fang, Yi Ke is in such a situation, what do you want to say now?"

Fang Zhuo was a little embarrassed.

Seeing this, Tao Ruohong changed the question: "What do you want to say to those short-selling institutions?"

Fang Zhuo felt that this was a better answer, and said, "I still hope to let them have love, and let the world be full of love."

Tao Ruohong couldn't comment on Mr. Fang's words of "love" like this, it seemed a little naive, and it seemed to be a vision after setbacks.

Qingzi arrived at the sky above Shanghai International Airport.

Tao Ruohong organized the words in her mind, and the draft was vaguely formed, almost a report that didn't need to be polished.

Fang Zhuo estimated that he would not be calm after landing, so he took the time to read the last two pages of the materials in his hand.

"Mr. Fang, is this also an economic theory?" Tao Ruohong still wanted to get as much information as possible.

"Oh, no, this is information about a lithography machine manufacturer in the Netherlands." Fang Zhuo turned the page and said frankly, "This manufacturer is called ASML, and it is very powerful. I heard that it is short of money now. , but we want to invest money, and it doesn’t want to.”

Tao Ruohong asked: "Huh? You don't even need to invest money. That's really a pity."

Fang Zhuo put down the material with some sadness, it was really a pity that he couldn't really force himself to set it on fire.

The Qingzi glides slowly and stops steadily.

At 04:30 in the afternoon in Shencheng, the weather was fine and the temperature was suitable.

Fang Zhuo and his group got off the plane, talked and laughed and walked towards the parking lot.

However, just after walking for a while, when I first saw people in the airport, a dense group of people suddenly stung like a swarm of bees!
"Mr. Fang, Mr. Fang, did you intentionally do Yike's short squeeze?"

"Mr. Fang, did you design a short squeeze on Yike stock?"

"Boss Fang, tell me a few words, what do you think of the current situation?"

Reporters rushed to ask questions.

As the group of people confirmed the target, more and more people rushed over, cameras, flashlights, microphones, mobile phones, all kinds of things.

Tao Ruohong was stunned, what's going on?what happened?What is the specification of such a dense crowd of reporters?
"Mr. Fang, Bridgewater asked me to bring you a sentence." Suddenly, a reporter wearing a foreign media brand shouted loudly in the crowd without asking questions or taking pictures.

Fang Zhuo looked over and motioned for everyone to be quiet.

Flights take time, but information travels quickly.

Everyone is now aware of the situation facing the short sellers, and they are also shocked to find that Yi Ke has obtained the weapon to fight back from the Jedi.

The foreign media reporter said loudly: "Bridgewater asked me to sincerely express to you that Bridgewater is willing to make every effort to facilitate the patent settlement between Nokia and Echo, and now they are on their way to Shanghai."

Fang Zhuo put his hands in his pockets, looked at the reporter, and smiled slightly: "Is that all?"

"You can talk about anything." The reporter was instructed in detail, "As long as you are willing to talk."

Fang Zhuo nodded: "Very well, let them bring the money."

This time, only talk about money and nothing else.

　Tomorrow is the weekend, get up early and work overtime~
　
(End of this chapter)