The next day at the Galaxy Securities headquarters in Beijing.
"Mr. Li, there’s a large short-selling operation in one account that needs your review."
"Three billion?" The well-dressed Mr. Li glanced at the docunt, his expression unchanged.
After all, he was experienced; to him, this sum of money wasn’t particularly imnse.
However, the client had left almost no margin and had shorted a large volu of the sa stock, which was quite intriguing.
But when he saw the specific stock the funds were being used to operate on, he paused for a mont, then a hint of a smile curved at the corner of his mouth.
"Chang Chun Biological? Heh, interesting."
The stock price of Chang Chun Biological had recently been hitting record highs and was now the high-priced stock second only to Kweichow Moutai in the A-shares market.
Galaxy’s investnt departnt had conducted special research and was bullish on the short to dium term trend of this stock; they had even discussed and passed a decision to increase their position not long ago.
"Mr. Li, this amount is not small. Do you think we should sell so of our shares to hedge against the risk?" his secretary asked.
"No need, we’ve just reviewed this stock recently. Put it into our proprietary trading account, and have the investnt departnt pay close attention to it," Mr. Li closed the folder without a care.
The so-called proprietary trading account is the securities firm’s own investnt pool.
In fact, since the securities firm has control over clients’ investnt information, they effectively have transparent market intelligence.
So unscrupulous firms even resort to contrarian trading strategies to consu the smaller investors eventually leading them into forced liquidation.
In a sense, securities firms play the role of both "middleman" and "referee."
Those who say that financing with securities loans ends at the rcy of the broker are right for this reason.
Following Mr. Li’s line of reasoning, although he was not so unscrupulous as to imdiately execute a contrarian trade to make a killing, he clearly did not believe this trade would be profitable for the client, so he decided against hedging and took on the risk in-house.
"Understood, Mr. Li!"
The secretary nodded and left the room. Mr. Li soon put the matter behind him and continued with his own work.
...
"Knock, knock!"
"Chairman Gao!"
Seeing Jiang Wenmin knocking at the door, Gao Yuan closed the stock trading interface on her desk.
"What’s the matter?"
"Chairman Gao, as per your instructions, the batch of expired drugs has been disposed of.
However, repurchasing the materials has drained all the funds on our books, and the finance departnt is like ants on a hot pan, frantically anxious.
With the liquid funds we currently have, maintaining company operations is a question, let alone whether we can pay next month’s salaries. What do you think about this..."
Jiang Wenmin’s face showed a hesitance and worry, but inwardly, he felt a sense of schadenfreude.
You’re so proud, you won’t stoop to corruption, but what now?
You’ve swallowed the dumb loss from the damaged goods and now the company’s funds are completely drained.
Can’t borrow from the bank, and can’t find funding; if this news gets out, a run on the goods is bound to occur, and without a solution, the company will surely go bankrupt!
You may have so ability, but what of it? An arm can’t win against a thigh!
Battling others is a toss-up? Going against the Xu Group, isn’t that just foolishness!
"I’ve already resolved the funding issue, no need for you to worry."
"How could I not worry! But I... What? You’ve resolved it?!"
Jiang Wenmin was taken aback for a mont, his eyes widening in the next instant.
"Hmm! It’s resolved. The money will be in our account soon. Tell the finance departnt to proceed with expenses as usual," Gao Yuan glanced at him.
"Chairman Gao, we need at least a billion to get out of our predicant. You’ve resolved it just like that?" Jiang Wenmin asked cautiously.
"What else? Should I be out of options, knocking on Chairman Lu’s door, begging for a loan, maybe offering so personal sacrifices, and then after being manipulated and deceived, end up disgraced?" Gao Yuan looked at him with a mockingly playful gaze.
"Uh... Chairman Gao, you jest," Jiang Wenmin nervously wiped the sweat from his forehead.
So she had anticipated the script he had in mind.
"Then, Chairman Gao, did you... did you sell the stake?" Jiang Wenmin ventured to ask.
Other than that, he couldn’t imagine how Gao Yuan, with no connections in Su City, could secure nearly a billion in funds so quickly to escape this crisis.
This was no small sum; even if she pledged the stock as collateral to a bank, the funds wouldn’t be available this fast.
"Hmm! Correct," Gao Yuan acknowledged with a nod.
Indeed!
Jiang Wenmin felt relieved.
Although he had always known that was Gao Yuan’s only way out, the fact that she found a buyer in such short ti still surprised him.
Typically, an equity transaction of this scale would require a professional team to conduct asset evaluations, then haggle over the price, negotiate back and forth several tis, and finally settle on a schedule for the funds to arrive...
Considering the ti required for the whole process, it wouldn’t be much different from obtaining a bank loan.
If the buyer was in no hurry, spending a year or two wouldn’t be odd.
But from Gao Yuan’s confident deanor, it seed as if the money would arrive tomorrow, which was almost inconceivable!
Hadn’t Xu Jingsong said that Gao Yuan ca from a humble background and had no powerful or wealthy family to call upon?
How could this situation be explained?
Unless... the new shareholder was a fool who paid on the spot?
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