Chapter 44: Something is Wrong with This Stock Market

“We must maximize the utility of every single cent on our books. If Hongkong Land loses Wharf Holdings, it will be an immeasurable blow to the entire Group.

However, Hongkong Land need not worry excessively. Jardine Matheson will provide full support; the Wharf shares held by Jardine Securities will be transferred to Hongkong Land at the most appropriate time to increase our shareholding ratio.

If necessary, Hongkong Land could even consider selling off premium properties, such as Jardine House, to rapidly raise more cash flow,” Swettenham said decisively, looking at Pau Fu-tat.

Within Hongkong Land, Swettenham’s authority was unshakeable. Even as General Manager, Pau Fu-tat understood that in critical moments, he had to follow Swettenham's strategic guidance.

“Sir, I fully understand and agree with your decision. The importance of Wharf to Hongkong Land goes without saying. I will personally supervise the development of the situation to ensure we do not let Mr. Bao Yugang succeed so easily,” Pau Fu-tat said solemnly, knowing the weight of the responsibility he carried.

“Very good, Mr. Pau. I will remain here this afternoon to personally monitor market dynamics. We must not only defend but also counterattack, to see exactly what tricks this Mr. Bao intends to play.” A shadow flashed in Swettenham's eyes, but it was outweighed by the composure of one facing an imminent capital confrontation.

Facing other competitors, Swettenham and Pau might have maintained a certain level of calm, as few in the Hong Kong business community could rival the combined strength of Jardine Matheson and Hongkong Land.

However, they were now facing the world's number one shipping tycoon, whose strength and influence were extraordinary.

More troublesome still was the tycoon's close relationship with Huifeng Bank. As a giant in the financial world, Huifeng Bank's support for the tycoon was undoubtedly steadfast and powerful.

This meant that in the upcoming competition, they would not only be battling the tycoon himself but also facing the formidable financial backing behind him.

Therefore, both Swettenham and Pau Fu-tat knew that this competition allowed for no pride or arrogance.

They had to act with caution and plan meticulously to deal with the various challenges and variables that might arise.

Only in this way could they secure the greatest interests and chances of victory for Jardine Matheson and Hongkong Land in this fierce battle of capital.

Beyond the Bao family and the Jardine interest, there was another force that could not be ignored, and its reaction was equally intense. This force was the massive group of retail investors in the Hong Kong region—ordinary shareholders.

Ever since Mr. Bao Yugang's last public statement that he had no intention of increasing his holdings in Wharf, many retail investors, acting on this information, mistakenly believed the market trend had shifted. They rushed to dump the Wharf shares they had purchased at high prices, causing the stock to plummet rapidly from its peak.

This scene once again proved the cruelty of the "herd effect" in the stock market.

Retail investors, often metaphorically referred to as "leeks," tend to chase market hot spots and high prices, hoping to grab a piece of the pie at the crest of the wave.

However, when Wharf's stock price began to show signs of a rebound and continued to climb after a period of stagnation, only a few keen retail investors noticed the potential turning point. Most, fearing the "leek-cutting" trap based on past experience, hesitated to act.

Yet, this morning, the trading volume of Wharf shares suddenly surged, and the stock price soared accordingly. This momentum completely ignited the passion of the retail investors.

Faced with this sudden opportunity, they could no longer suppress their inner impulses. They prepared to flood the market, eager to taste the first delicious morsel of this feast—the so-called "eating the first soup."

This scene was undoubtedly a vivid portrayal of the interplay between human greed and fear.

Furthermore, many market manipulators who seek profits through "buy low, sell high" strategies also turned their eyes toward Wharf.

These manipulators hold massive amounts of capital, act flexibly, and are not easily swayed by market sentiment; sometimes, they can even influence the movement of an individual stock through their own strength.

Faced with the sudden explosion in trading volume of Wharf shares, these experienced manipulators were naturally not as bewildered as ordinary retail investors.

They keenly sensed that deeper market dynamics might be hidden behind this, such as an intense takeover battle about to unfold.

Such speculation was not baseless, but rather based on in-depth analysis of market trends, company fundamentals, and capital movements.

Therefore, for these manipulators, this abnormal movement in Wharf shares was undoubtedly a once-in-a-lifetime opportunity.

They also began to prepare actively, adjusting their positions and getting ready to exert their influence in this upcoming capital feast to reap substantial profits.

At this moment, Lin Haoran felt no ripples in his heart, for he had not realized that their operations in the stock market this morning—which were merely a "test of strength" without a full-scale push to drive up Wharf's price—had already caused such massive ripples in society, attracting the close attention and reactions of numerous forces.

If Lin Haoran knew all this, he would certainly be delighted, because this was exactly the situation he anticipated.

In his view, the market's enthusiastic response not only validated the effectiveness of their strategy but also paved the way for subsequent actions.

He knew that in this war without smoke, every step was crucial, and the reactions of various forces at this moment undoubtedly bought them more time and space to lay out an even grander chessboard.

At exactly 1:00 PM, just as the stock market ended its lunch break, Su Zhixue's team dove into intense operations like an arrow released from a bow.

He had received explicit authorization from his boss. The first step of the plan was to comprehensively sweep away all stocks on the market priced below 30 HKD.

According to the market orders at the close of the morning session, the total volume of stocks within this price range was estimated to exceed 60,000 shares.

Based on past experience, Su Zhixue's decisive actions often caught competitors off guard, providing an opportunity to absorb a large amount of these low-priced chips.

However, unexpectedly, despite the team's best efforts, they only successfully traded 26,000 shares, falling far short of the expected target.

Even more surprising to Su Zhixue was that as they operated, the stock price climbed rapidly, directly breaking through the 30 HKD mark and soaring to 31 HKD.

Facing this sudden market change, Su Zhixue frowned deeply. He realized, "Mr. Lin, something is wrong with this market. The trading volume is beyond our imagination, and the market's reaction is much more intense than we predicted. We haven't even started to go all out, yet the market has begun to rise significantly on its own."

"Immediately! Right now, target all orders within 35 HKD and absorb them all!" Lin Haoran commanded swiftly.

(End of Chapter)