“What’s wrong?”
Seeing Yu Xiangdong’s frantic expression, Hu Yuanyuan’s heart sank.
“President Hu, someone’s aggressively shorting our stocks. It’s intense, and we’re barely holding on,” Yu Xiangdong replied quickly.
Hu Yuanyuan’s face darkened. She had just been wondering who was targeting the company, and now they’d struck again.
“Which stock are they shorting?” she asked gravely.
“Yongdu Technology,” Yu Xiangdong answered.
“Yongdu Technology?”
Hu Yuanyuan’s expression shifted again. The company held only four or five stocks, with Yongdu Technology being a major portion. As a high-tech stock, it generated significant annual profits. Since Hu Yuanyuan took over, the investment department had steadily bought Yongdu shares, now holding 50 million, or 10% of its circulating shares.
Half of the company’s annual profits came from Yongdu. If it faltered, the impact would be devastating.
While the smart chip was in production, it would take at least a month to hit the market, requiring substantial capital. The company’s funds were already tight. If the financial market failed too, the cash flow could collapse.
Hu Yuanyuan opened her computer, pulling up Yongdu Technology’s chart.
The chart deepened her frown.
Yongdu closed at 23 yuan yesterday. Today, it gapped up to 23.8 at the open but was smashed down to 22.5 within a minute, with a downward trend.
Having played the stock market since university, earning the nickname “Stock Goddess,” Hu Yuanyuan had a keen sense for the market. She saw Yongdu’s resistance was weak under the heavy selling. Without capital to absorb the sales, breaking below 22 would trigger retail investors to panic-sell, causing massive losses.
“How much capital do we have?” she asked gravely.
“50 million,” Yu Xiangdong replied.
“Are the other stocks moving?” Hu Yuanyuan asked. Fifty million was a drop in the bucket in the securities market, and this attack was clearly well-prepared.
“No movement yet,” Yu Xiangdong said.
“Thirty minutes until the morning close. Can 50 million hold?” she asked.
“It’s tough, but there’s a chance,” Yu Xiangdong said after a moment.
“Good. Notify the investment department to pull the stock price up immediately,” Hu Yuanyuan ordered.
“Yes.”
After Yu Xiangdong left, Hu Yuanyuan called Xu Qing at the Technical Supervision Bureau, instructing her to go to the bank for a loan.
Hanging up, she summoned HR manager Huangfu Wei.
“Huangfu Wei, go to the securities firm and apply for financing,” Hu Yuanyuan directed.
“Understood.”
With arrangements made, Hu Yuanyuan stared at Yongdu’s chart.
Under Yu Xiangdong’s defense, the stock rose from 22.5 to 22.8, but every cent gained was met with heavy sell orders. At this rate, they wouldn’t last until the morning close, let alone ten minutes.
Hu Yuanyuan rushed to the investment department. Except for one trader monitoring other stocks, everyone, led by Yu Xiangdong, was fully focused on defending Yongdu.
Glancing at the chart, she said, “Yu Xiangdong, I order you to sell one million Yongdu shares immediately.”
“What, President Hu?” Yu Xiangdong was confused. He’d been told to defend, but now she wanted to sell?
“That’s an order. Execute it now,” Hu Yuanyuan said coldly.
“Yes.”
The chart showed one million Yongdu shares dumped, crashing the price from 22.8 to 22.1. Retail investors followed, pushing it below 22 to 21.9.
“How much cash do we have?” Hu Yuanyuan asked.
“38 million,” Yu Xiangdong replied.
“Buy Yongdu now. Put all the funds in,” Hu Yuanyuan said decisively.
“Yes.”
The 38 million swept in, lifting Yongdu from 21.9 to 22.3.
Seeing the surge, retail investors bought in, driving the price up sharply.
Hu Yuanyuan checked the time. Five minutes to close. With a resolute look, she said, “Dump five million Yongdu shares now.”
“What, President Hu? Five million will crash it to the limit down,” Yu Xiangdong’s face paled.
“That’s the plan. Execute it,” Hu Yuanyuan said firmly.
“Yes,” Yu Xiangdong took a deep breath. On his first day leading the department, losing over 100 million was frustrating, but he had to follow orders.
As expected, with little buying support, the five million shares sent Yongdu to the limit down.
“Hang a ten-million-share sell order at the limit down to lock it,” Hu Yuanyuan said.
“Yes.”
Hu Yuanyuan watched the chart. Under the traders’ actions, Yongdu’s ten million shares sealed the limit down. Some retail investors followed, but aside from their order, sell orders were scarce, and selling pressure dwindled.
Checking her watch at 11:29, Hu Yuanyuan said, “Withdraw the ten-million-share sell order now. Mobilize all funds, buy aggressively, and pull the price up.”
“Yes,” Yu Xiangdong, realizing her strategy, didn’t hesitate. He led the traders personally.
The earlier five-million-share dump had freed up over 100 million in cash. With minimal sell orders left, withdrawing the ten-million-share order and injecting over 100 million sent Yongdu’s price rocketing.
20.7… 21… 21.5… 22… 23.5…
By the noon close, Yongdu hit 24 yuan, up 4.6% from yesterday.
Hu Yuanyuan exhaled. They’d won for now, but she knew the afternoon was the real test.
“How much capital left?” she asked.
“Only 20 million,” Yu Xiangdong said, admiring her retreat-to-advance tactic. Yongdu’s defense was temporarily successful.
Back in her office, Hu Yuanyuan felt drained. The morning had been perilous. Without her timing trick, they wouldn’t have saved Yongdu.
With only 20 million left, if Xu Qing and Huangfu Wei couldn’t secure funds from the bank or securities firm, the afternoon could be disastrous.
“President Hu,” Xu Qing and Huangfu Wei entered.
Seeing their faces, Hu Yuanyuan’s heart sank.
“President Hu, the bank rejected the loan.”
“President Hu, the securities firm denied financing.”
Hu Yuanyuan’s face darkened, “Why? Did they say anything?”
“No,” Xu Qing and Huangfu Wei exchanged glances. Xu Qing said, “At the bank, I didn’t even see a key manager, just a clerk.”
“Same here. The securities firm not only denied financing but also demanded we raise our margin ratio. If it falls below 25%, they’ll force a liquidation,” Huangfu Wei said worriedly.
As an investment firm, Xiangfeng had significant leverage, with a 1:3 margin ratio compared to others’ 1:10. Hu Yuanyuan was cautious, but the smart chip’s development required heavy funding, forcing her to increase leverage.
Of the company’s billions in financial assets, 1 billion was financed, a 33% ratio. A single limit-down could trigger a forced liquidation, a fatal blow.
With funds, they could defend the stock, but the company had none. Hu Yuanyuan had a few tens of millions personally, but it was a drop in the bucket.
“Go back and try contacting the bank and securities firm again. See if you can get any funds,” Hu Yuanyuan said wearily.
“Yes.”
After they left, Hu Yuanyuan sank into thought. The company was at a life-or-death moment. A forced liquidation would cause massive losses, potentially breaking the cash flow and triggering a chain reaction.
This was the weakness of financial investment firms without real industry backing. They could face ruin at any time.
The key was money. Enough funds could mitigate losses, but the bank and securities firm offered none, and the company’s account was dry. Her personal funds weren’t enough.
The company owned fixed assets, like Tianfu Tower. Mortgaging it could secure a loan, but that would take days, and the stocks might be liquidated by then.
The company was her life’s work. She couldn’t let it fail. Saving it required billions, maybe tens of billions, and that was just the start. If the opponent was well-prepared, even that might not suffice.
Such funds were beyond individuals or most companies.
Who could save the company? Hu Yuanyuan mentally sifted through names but found no one.
Then, her thoughts turned to Li Feng. He’d worked miracles recently. Maybe he could solve the crisis.
With that, she dialed Li Feng’s number.
