Chapter 487: Making History
Chapter 487: Making History
Monday, October 26th.
After being closed for four days, the Hong Kong stock market opened at 10 am and immediately took a downward turn. Similar to America, after a significant drop on the 19th, the government implemented a series of measures, and on the 20th, after a brief dip, the market started to climb. By the end of that trading day, the stock index had surged by 102 points, and on the 21st, it rose a further 186 points from the previous day. However, the Hong Kong stock market experienced a steep decline, plummeting by 1,120 points to 2,241 points by the afternoon close—a staggering 33.33% drop, the largest single-day decline in the history of the Hong Kong stock market.
After the stock market closed, Nie Zhan called a meeting with several leaders from the investment department. Before the stock market crash, the stock price of Wansheng Real Estate was HK$18 per share, but now it had dropped to HK$13 per share, a decline of over 27.7%. Among the many stocks, this drop was still considered relatively mild.
They had also repaid 23% of their debt before the crash and then raised more funds through a rights issue. Investors still had confidence in Wansheng Real Estate.
Nie Zhan's main focus for this meeting was land hoarding, and his target was 3 billion. He wanted to seize the opportunity while others were still reeling from the stock market disaster and hadn't had time to react.
When the manager of the investment department, Xiong, heard that he wanted to hoard 3 billion worth of land, he said, "Boss, we only have a little over 1.2 billion in our account. We can only afford to spend up to 1 billion on land hoarding, but what about the remaining 2 billion..."
Nie Zhan said, "Wansheng Real Estate will contribute 1 billion for land hoarding, and Xin Xin Real Estate will contribute 2 billion. Later, the two companies will work together to develop the property."
Xiong naturally knew about Xin Xin Real Estate—it was the future boss's wife's company. However, Xin Xin Real Estate was a private company that hadn't gone public, which meant that the future boss's wife would be contributing 2 billion for land hoarding. This was 2 billion, not 200 million, and at that moment, he wondered if he was hallucinating.
The deputy manager was more impatient and asked, "Boss, is it confirmed that Xin Xin Real Estate will contribute 2 billion for land hoarding?"
Nie Zhan didn't get angry; instead, he smiled and said, "Before the stock market crash, Miss Lu predicted that there would be a significant fluctuation in the stock market, and she made a huge profit this time."
Jiaxin must have a substantial amount of money to hoard land on such a large scale. The upper echelons of Hong Kong were well-informed, and Jiaxin's actions would surely attract attention, even if he didn't say anything about it now.
Manager Xiong and the two deputy managers' eyes widened, and then they looked intently at Nie Zhan.
Nie Zhan understood their unspoken question and shook his head. "This is actually a huge gamble, with only a 1% chance of success. Naturally, I wouldn't take such a risk."
The three of them looked a little disappointed, but they soon cheered up again. Manager Xiong said, "Boss, we can grab all the plots of land we've been eyeing."
With the stock market in its current state, the real estate market had also been affected. The desirable plots of land they had been considering would surely see a drop in price. As for how much of a discount they could get, it would depend on market feedback.
Nie Zhan instructed them to keep this information confidential: "Our company's financial situation is known to the outside world, and they won't compete with us."
The three of them immediately assured him that they would keep this matter under wraps.
As they were leaving, one of the deputy managers, surnamed Zhang, whispered, "What do you guys think? How much do you think Miss Lu made this time?"
Manager Xiong said, "For land hoarding of 2 billion, even with the highest leverage, the principal for short-selling would still be over 400 million. Based on Miss Lu's net worth, this should be her limit."
He meant that Lu Jiaxin had probably made a profit of up to 2 billion at most.
The other deputy manager praised, "Miss Lu is bold, and our company benefits from her actions."
Although Xin Xin Real Estate was hoarding the land, given Miss Lu's relationship with their boss, they would only collaborate with their company to develop the property and wouldn't let outsiders profit from it.
Deputy Manager Zhang lowered his voice and said, "Previously, Secretary Wang said that Miss Lu has a talent for helping her husband's career. Many people in the company didn't believe it and thought it was nonsense. Now, who wouldn't believe it?"
"When Boss first took over the company, everything was business as usual without a splash. Many people in the company thought he was all show and no substance. Who would have thought that after he started dating Miss Lu, he would recruit high-salaried senior executives and implement drastic reforms, causing the company's market value to double in just three years?"
Manager Xiong fell silent. He belonged to the category of skeptics, but now it was hard not to believe.
As Lu Jiaxin walked out of the school gate, she saw Su Heyuan, his face lit up with a smile as bright as a blooming trumpet flower. She found it too garish and turned her head away.
Having learned his lesson from the last time, Su Heyuan also refrained from discussing stocks in public. It wasn't until they returned to the apartment and entered the study that he eagerly blurted out, "Jiaxin, the Hang Seng Index fell by 33.33% today, and last Monday's drop was 11%. In these two days, it has fallen by nearly 45%. Jiaxin, we've made a fortune!"
With his capital of 400 million, a ten-fold leverage, and today's calculations, he had profited 180 million (excluding fees and taxes). As the market closed, he couldn't help but shout excitedly in the office, overwhelmed with excitement.
Lu Jiaxin smiled and asked, "I'll sell as soon as the market opens tomorrow. You should do the same!"
According to her memory, the Hang Seng Index would drop below 2000 during this stock market disaster, indicating that there would be a further decline the next day. However, they had already made a substantial profit, and there was no need to gamble for the lowest point.
Su Heyuan nodded eagerly, his face beaming, "Good, good! I'll instruct the stockbroker to close the position as soon as the market opens tomorrow. Jiaxin, thank you! Without you, I wouldn't have made so much money, and I might have lost all 40 million."
"Jiaxin, whatever you want, as long as I can buy it, it's yours."
Lu Jiaxin didn't hesitate this time, "Go to the mainland and get me some antique calligraphy and paintings. A budget of 2 million yuan should be enough."
"2 million is too little. It should be at least 5 million."
Lu Jiaxin didn't refuse and smiled, "You said that the more you earn, the more you'll donate. How much are you planning to donate for medical equipment?"
Su Heyuan didn't regret his decision, as the majority of his earnings remained his, "10 million Hong Kong dollars. What do you think?"
"That's fine, but we need to act quickly, or I won't be able to explain this to Gu Wenfeng," Lu Jiaxin said.
Gu Wenfeng had been coerced by Lu Jiaxin to stay in the hospital for a month. The day after his discharge, he returned to Si Jiucheng. He promised Lu Jiaxin that he would help select some retired soldiers for her and would come back to train them once his injuries had healed.
Gu Wenfeng had originally intended never to return to Si Jiucheng. He believed that, as a disabled man, he had no face to stay on and receive a high salary while being unable to work. However, Lu Jiaxin had threatened to withhold the donation of medical equipment if he didn't agree to her terms. He had no choice but to comply.
Su Heyuan smiled and agreed, then looked at Lu Jiaxin intently and said, "Jiaxin, next time, no matter what you're investing in, you have to tell me!"
He regretted not investing more this time. He should have put in the additional 35 million he used for stock purchases, as that would have earned him over 300 million. Ah, hindsight is always 20/20! He had underestimated Jiaxin's financial luck once again.
Lu Jiaxin found his eagerness amusing, "When have I ever left you out? I told you about foreign exchange last time, and this time about short-selling the stock index futures."
Su Heyuan smiled sheepishly, "Yes, yes, yes. It's all thanks to you, Jiaxin, that I'm living such a good life now. Otherwise, I wouldn't have this kind of wealth."
With his entire net worth amounting to just over 200 million, he had now earned over 200 million from stocks and short-selling. No wonder Hong Kong was famous for its financial and real estate sectors; they truly were lucrative industries!
Baobao's father had to work overtime again and wouldn't be coming home, which made him irritable at the thought of having to supervise homework.
(End of Chapter)
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