Chapter 429 Stock Price Plummets
In truth, Hong Kong Telephone Company was already an outstanding and high-quality listed enterprise, but investors often loved to make comparisons. Compared to those real estate companies, the performance of Hong Kong Telephone Company seemed relatively plain. This was one of the reasons why, despite steady gains over the past two years, its stock price hadn't skyrocketed.
"Who can say?" the veteran investor shook his head again, a hint of helplessness in his tone. "We don't even know who's behind this. They've operated so secretly that we have no idea about their background. Who knows, maybe they have some long-term plan."
"But the stock price keeps falling! What should we do? We can't just sit here and wait, can we? I should have used my money to buy shares of Cheung Kong Holdings instead. That stock rose 8% yesterday," the middle-aged investor said anxiously.
"I think we should wait and see, observe their next move. If they really intend to acquire, the stock price will recover sooner or later," the young investor suggested.
"But what if they give up the acquisition? We'd suffer huge losses," the female investor said worriedly.
"That… no one can say for sure. The stock market is risky; investing must be done cautiously," the veteran investor sighed, full of resignation.
At that moment, the entire market was enveloped in a heavy atmosphere. Investors murmured quietly among themselves, but none had a clear answer. They all waited for the next move from the mystery buyer, hoping to find a glimmer of hope.
Yet the mystery party remained completely silent, as if they had vanished.
In his office at Kang Lok Building, Ma Shimin had a thorough grasp of the stock market's situation and even the general discussions among investors. After all, Jardines Matheson had planted many informants in the market.
Today's trading operation was carried out by traders from Global Investment Company's Hong Kong team, under the direction of Deputy General Manager Dai Shi.
Initially, even Ma Shimin, like many other investors, thought that after Jardines Matheson's thunderous acquisition of Hong Kong Telephone Company stock, the share price would inevitably surge.
After all, in the past, Jardines Matheson had also excelled at such aggressive moves—buying in large quantities and then publicly announcing it, pushing the stock price even higher.
But the operation today by Global Investment Company was completely different.
Although they had raised the price, it was only from about HK$26 to HK$30 per share—not a dramatic leap.
This restraint inevitably caused investors to doubt whether the mystery buyer truly intended to acquire Hong Kong Telephone Company.
"President Dai, your trading techniques are truly eye-opening. It's like you have the market in the palm of your hand, and you're manipulating investors' psychology perfectly!" Ma Shimin marveled.
"Mr. Ma, over the past two years, Global Investment Company has frequently engaged in acquisitions, and naturally, we've accumulated plenty of experience. Actually, this strategy is not some great secret—those who know the game can more or less guess it," Dai Shi replied with a smile. "As the saying goes, there's always someone better out there, and everyone has their field of expertise. You are accomplished in business management; being less familiar with stock market operations is perfectly normal."
Being able to guess was one thing—having the courage to act was another.
Most big market players would hesitate to act, fearing they might be stepping into a trap laid by the real manipulator.
If the mystery buyer had planned a "chop-off" strategy—where they buy high, drive the price up, and then suddenly dump it—then any large player caught up would be left holding worthless high-priced stock.
Thus, even those with deep pockets dared not act recklessly in such a turbulent market.
"So, President Dai, what's the next step? How long do you think it will take to complete the target of acquiring 34.9% of the shares, while keeping our average cost under control?" Ma Shimin asked curiously.
"One day will suffice. We can complete the mission today!" Dai Shi said with a hearty laugh.
"One day? How is that possible?" Ma Shimin was skeptical.
Previously, they had agreed that Dai Shi's team should absorb shares without letting the average price exceed HK$28 per share.
Yet the 14 million shares acquired that morning already averaged close to HK$28 per share.
Currently, the price was still hovering near HK$30.
Ma Shimin simply couldn't imagine how they could complete the mission today without pushing the average cost too high.
Hearing the disbelief in Ma Shimin's voice, Dai Shi's smile grew even wider.
"Mr. Ma, don't forget that capital operations and market control are Global Investment Company's specialties. Although our morning operation indeed raised our cost, it was all part of the plan."
He paused and continued, "Next, we'll take advantage of the market's volatility and investor psychology. Through complex techniques—such as dispersed buying, concentrated selling to create selling pressure, and low-price buybacks—we'll drive the price down while steadily increasing our holdings.
This way, we'll collect more shares at a lower cost without triggering a major market reaction.
Also, by sowing panic among hesitant investors, we'll encourage more to dump their shares, further lowering the price."
Listening to Dai Shi's explanation, Ma Shimin's eyes lit up.
"So that's it! President Dai, your strategies are truly impressive. This way, we might not only complete the 34.9% target today but also keep our average acquisition cost below HK$28 per share?"
"Exactly," Dai Shi nodded confidently. "Of course, it still requires tight coordination from our team and favorable market conditions. But if we execute properly, the goal is well within reach.
Judging from the investors' reactions so far—after just over an hour—they are already panicking, which makes our task even easier.
Mr. Ma, just wait and see. By this afternoon, we'll witness the results!"
"Good, I'll be waiting for your good news, President Dai. Once the mission is complete, I will personally ensure you receive full credit before the boss!" Ma Shimin laughed heartily.
As time passed, the tense atmosphere in the stock market only intensified.
Investors who had placed high sell orders grew increasingly uneasy, afraid that their stocks would remain unsold and eventually have to be dumped at lower prices.
Some investors who had previously intended to hold firm began wavering.
They realized that if they didn't sell now, they might end up stuck.
Investors couldn't unite; instead, a domino effect emerged.
When one started selling, it triggered others to follow, just like falling dominoes.
"Look! Someone's selling again!"
"The price is still falling! If this keeps up, I'll lose everything!"
"I can't wait anymore—I have to sell too!"
Panic spread rapidly across the market.
Investors rushed to place sell orders at increasingly lower prices, trying to minimize their losses.
But this collective selling only worsened the downward spiral.
HK$29 per share.
HK$28.5 per share.
HK$27 per share.
…
By noon's closing bell, the price had fallen below HK$27 per share.
However, Global Investment Company remained unshaken, sitting calmly amid the chaos.
They knew this was all part of the plan—the falling price would only make it cheaper for them to gather even more shares.
At midday, sunlight streamed into the office of Global Investment Company's general manager.
The phone on the desk rang. It was Ma Shimin calling.
"President Dai, based on the current trend, Hong Kong Telephone Company's price may fall even further this afternoon. More and more people are selling. Should we wait a bit longer? Maybe the price could drop to HK$20 per share," Ma Shimin asked cautiously.
Dai Shi chuckled lightly. "Mr. Ma, while the idea of buying at an even lower price is tempting, timing is everything.
If we wait too long, sharp-eyed speculators will swoop in.
They might have hesitated at HK$30, but once it drops to HK$20, they'll jump at the chance to snatch up the stock.
Therefore, we'll resume covert absorption this afternoon.
However, we won't let the price fall too low.
Keeping it around HK$25 per share would be ideal—low enough to maximize our interests, but high enough to discourage opportunistic buyers."
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