Chapter 428 Thunderous Strike, Who Is the Man Behind the Curtain?
As the stock market opened, Jardines Matheson Group's acquisition operation quietly commenced.
The moment the market opened, Jardines Matheson's trading team sprang into action. Using advanced trading strategies and abundant funds, they began aggressively absorbing shares of Hong Kong Telephone Company.
Thanks to thorough preparations, their reaction was swift. Before many investors even realized what was happening, they had already swept up all the sell orders listed at the market's opening.
Recently, Hong Kong's stock market had shown a strong preference for real estate stocks. Many property companies' share prices were soaring, with several Chinese-owned real estate firms even climbing into the top thirty by market capitalization. Companies like Cheung Kong Holdings and Ka Nin Group had even broken into the top ten.
Meanwhile, although Hong Kong Telephone Company's share price had seen steady growth, few investors or market operators were paying close attention to it.
At its peak, Hong Kong Telephone Company had been ranked around the tenth largest listed company in Hong Kong. Now, however, it had slipped out of the top thirty, reflecting its lackluster performance during the recent bull market.
Thus, when Jardines Matheson's team entered the market, they moved almost unnoticed.
Within less than five minutes of trading, they had absorbed nearly all the shares listed below HK$30 per share.
Nearly fifteen million shares were scooped up by Jardines Matheson.
Even Ma Shimin, who was overseeing operations from headquarters, hadn't anticipated such an easy success.
It was truly a thunderous strike!
The quantity absorbed was enough to match the current holdings of Hong Kong Telephone Company's largest shareholder.
What was even more surprising was that they managed to absorb even more shares than had been tallied before the market opened.
This was because some investors, after the market opened, had placed additional sell orders.
In fact, many of these nearly fifteen million shares came from investors who had listed sell orders casually, never expecting them to be executed so quickly.
After all, with the market price hovering around HK$26 per share, many had set asking prices at HK$28, HK$29, or even HK$30, believing it would take months to reach those prices.
Jardines Matheson's sudden and aggressive action completely caught the market off guard.
Almost no one reacted in time.
In an instant, all eyes were on Hong Kong Telephone Company—a company that had almost been forgotten in recent times.
At the same time, the company's management and shareholders quickly took notice and began urgently discussing the situation.
No one knew who was behind this sudden accumulation of so many shares.
The management was especially nervous and called an emergency high-level meeting.
They knew that if the buyer acquired enough shares to become the controlling shareholder, there would be major changes to the company's strategy and management.
But realistically, their meeting would accomplish little.
After all, they were merely professional managers—employees without the authority to influence the company's shareholder structure.
Meanwhile, the broader stock market speculated that a takeover battle was imminent.
Many shareholders congratulated themselves for not selling earlier, believing they would now profit handsomely.
They were convinced that a genuine acquisition would inevitably drive up the stock price.
Even if they couldn't feast on the main course, they could at least enjoy the soup.
However, to everyone's surprise, after the initial sweep of sell orders, the market for Hong Kong Telephone Company suddenly went quiet.
While new sell orders appeared—mostly priced above HK$30, and some even as high as HK$40 or HK$50—no one was buying.
Investors who listed high sell prices were hoping to strike it rich, but the expected buying frenzy never came.
Instead, after the initial surge, the trading volume plummeted.
By 10:30 AM, Jardines Matheson had ceased buying altogether.
Only a few speculators, betting on a rising trend, purchased around three million shares between HK$30 and HK$35.
These late buyers soon regretted their decision.
Watching anxiously, they realized the stock price wasn't skyrocketing as expected.
It wasn't even reaching HK$35.
Instead, after brief fluctuations, the stock price stabilized—and then began to fall.
By 11:00 AM, Hong Kong Telephone Company's share price had dropped back below HK$30, the latest trade executed at HK$29.8.
And the downward trend showed no signs of stopping.
Those who had bought three million shares in a rush were now filled with regret.
They had hoped to profit quickly by chasing the surge, but reality hit them hard.
Market chatter grew louder, and speculation abounded as to why the mysterious buyer had stopped after the initial sweep.
Some veteran investors suggested this might be a deliberate tactic—to create a psychological squeeze on those trying to ride the momentum.
They were right to an extent, but it didn't help them.
Because Hong Kong Telephone Company's share price wasn't going up—it was going down.
This mounting psychological pressure was unbearable for many investors.
Most of those who had bought were not long-term holders; they were short-term speculators aiming for quick profits in the bull market.
But short-term traders often had weak nerves.
Seeing trading volume slow down dramatically, sometimes with minutes between trades, they panicked even more.
The company's management and shareholders were equally anxious, desperate to figure out who was orchestrating this behind the scenes.
But no matter how urgent their concerns were, they could do nothing about it.
Until Jardines Matheson revealed itself, no one knew who was behind the scenes.
As Hong Kong Telephone Company's stock continued to slide and trading activity ground to a halt, the market's anxiety grew palpable.
Those who had chased the rising price gathered in corners of the four major securities exchanges, whispering nervously among themselves.
"What the hell is going on? What are they trying to do?" one angry investor shouted, slamming his hand on the table, his face flushed with frustration.
"Yeah, what's their game? Are they abandoning the acquisition?" another chimed in, his voice filled with fear and uncertainty.
"Abandoning the acquisition? Unlikely," said a seasoned investor, shaking his head to calm the others. "Whoever bought nearly fifteen million shares is probably aiming to take control of the company. They wouldn't give up so easily."
"But if that's true, why are they so silent? The stock keeps falling. How are we supposed to cope?" cried a middle-aged investor, desperation written all over his face.
They had bought Hong Kong Telephone Company's shares hoping for a breakout rally—but reality had betrayed their expectations.
"I think they're waiting for something," a younger trader suggested, "maybe testing the market's reaction."
"Testing? But why Hong Kong Telephone Company?" a female investor asked skeptically. "It's stable, sure, but not particularly exciting."
Indeed, while Hong Kong Telephone Company's revenue and profits were steady, they couldn't match the explosive growth of the real estate sector, where companies were doubling their profits annually.
Most investors weren't in the stock market just for dividends.
They dreamed of big returns through buying low and selling high.
Yet reality often dashed those dreams.
Most ended up as "chives"—reaped again and again by the market's sharp scythes, no matter how fiercely they tried to grow back.
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