RPAGF Chapter 7 Paparazzi Licking Milk
Chapter 7 Paparazzi Licking Milk
Since the opening of Hong Kong as a port, a system of separate governance for Chinese and foreigners has been adopted.
Central, the heart of Hong Kong Island, has always been a predominantly Western territory, and it was a source of pride for Chinese people to be able to rent an office there.
Until the 20s, Li Peicai and Feng Pingshan purchased the land at HK$50 per square foot and built the first Chinese-invested building in Central, which greatly boosted morale.
This building, which was rented entirely to Chinese tenants because foreigners disdained to work in the same building as Chinese, was thus known as the "Chinese Building".
Whether it was the Hong Kong Stockbrokers Association (later renamed the "Hong Kong Stock Exchange") established in 1914, or the Hong Kong Joint Stock Chamber of Commerce established in 1921,
The two were merged in 1947 to form the Hong Kong Stock Exchange Limited, and ordinary Chinese were not allowed to enter either.
Of course, "elderly Chinese" are an exception.
On December 7, 1969, the Far East Stock Exchange opened in the Chinese Building, allowing ordinary Chinese to buy and sell stocks, which once again greatly enhanced the status of Chinese people.
Neither the gold and silver exchanges nor the Kowloon Stock Exchange, which were established later, possessed this profound sense of pride.
Among them, the "Kowloon Club," which has only one-tenth of the trading volume of the other three, is jokingly referred to as the "0.1 Exchange" because it is the weakest.
When Chen Guanjiang took the Star Ferry from Kowloon Island to the Chinatown Building in Central and stepped into the Far East Exchange lobby, his so-called sense of pride vanished.
Good heavens!!
On the left, monks buy electricity; on the right, nuns buy gas. Everywhere you look, there are throngs of people, all making a racket.
自1969年恒生指数创立以来一路飙升，年成交量从60.56亿港币激增至429.08亿港币，指数更是从211.91点上升至如今629.77点。
The surge in trading volume and continuous positive news have caused the Hang Seng Index to soar to abnormal levels.
Hong Kong people have a strong gambling spirit and a strong business culture, which has laid a solid foundation for the current stock market prosperity and future transformation into an international financial metropolis.
HK$58.5 per share!!
Chen Guanjiang's eyes were fixed on the Milk Company's offer on the blackboard. He then used the pre-arranged trading seat at Wharf Holdings to acquire the shares at HK$60 each.
For a time, the price quotes on the Huoduoli trading platform attracted a large number of investors to stop and watch, while also casting curious glances at Chen Guanjiang.
I've seen plenty of people from all walks of life investing in stocks, but this is the first time I've ever seen a teenager holding a puppy.
With its irregularly shaped black and white fur, it's obvious that this is a mixed breed dog. Yet, this mongrel is given milk, and not only that, it has to drink the more expensive skim milk.
Moreover, opening a seat on the exchange requires verification of at least HK$30 in capital, and the company responsible for the acquisition is the well-known Wharf Holdings. Everyone whispered among themselves, trying to find out which young master it was.
Although Wharf Holdings was only established last year and has not yet achieved any notable results, its status as a wholly-owned subsidiary of HSBC is enough to demonstrate its strong capabilities and background.
Its main businesses include securities underwriting, corporate consulting, corporate management, mergers and acquisitions, financial investment and medium- and long-term loans. It was born with a silver spoon in its mouth.
Before long, some people began selling their stock certificates, but they did not receive the funds on the spot; they simply registered the transaction.
Chen Guanjiang placed Hunlun on his seat, looking at the "Instructions for Buying Stocks" in his hand, studying stock trading while analyzing the current securities trading mechanism.
The current trading mechanisms are completely different from those of later generations!
Nasdaq launched electronic securitization last year, but Hong Kong has not yet introduced this mechanism and still uses "paper stock certificates" for trading.
After the transaction is completed, the seller delivers the "paper shares" to the brokerage firm, which then sells the "paper shares" on the exchange and delivers cash to the seller or deposits it into the seller's designated bank account two days later.
The buyer trades with the exchange and brokerage firm, then reports the stock delivery to the China Securities Regulatory Commission (CSRC) to complete the registration process. The paper stock certificate can only be obtained two days after the transaction is completed.
Of course, if it does not involve board seats and dividend distribution, it is not impossible to postpone or simply not register with the SFC. This is what stockholders and brokerage firms that trade frequently in the short term would do.
The fastest outcome is receiving paper shares or funds in two days. Some brokerages can even delay it up to five days, during which anything can happen.
Moreover, the Hang Seng Index adopts a T+0 trading system.
It allows for same-day buying and selling, with no limit on the number of transactions per day, providing brokerage firms and exchanges with ample room for maneuver regardless of whether they hold actual "paper shares".
Moreover, the current Hang Seng Index only has a margin trading (going long) mechanism and no short selling (going short) mechanism.
Short selling is not impossible.
The requirement to "borrow" paper shares in advance and repay them within a specified period, followed by the purchase of equal shares to "repay" them upon maturity, essentially constitutes a "betting" between the two parties and contains numerous transaction loopholes.
Not long after, Chen Guanjiang acquired 3000 shares, and HK$18.64 was transferred from his account, of which HK$18 was the price of the shares and HK$6400 was various taxes and fees.
其中包括：经纪行2.5%佣金、0.6%股票印花税、0.02%交易所结算费、0.02%赔偿征费、0.05%证监会交易费。
Unfortunately, there are too many middlemen profiting from the price difference in paper stock trading. Exchanges need to rent floor space, brokerage firms also take a cut, and transfers require changes to shareholder information...
High commissions, slow efficiency, and numerous loopholes meant that you could lose 3.19% on stocks without doing anything, which is unimaginable in the electronic securitization market of later generations.
If you don't want to waste money, you can also find the "shareholders" to conduct a private transaction. In this way, you only need to pay 0.69% of various taxes and fees, but this is not something that ordinary stock investors can do.
The principal of HK$90 was leveraged three times.
Even if the funds are increased to HK$270 million, at most only 4.5 shares can be acquired, which is just a drop in the ocean for Dairy Farm, a company with a total share capital of 1000 million shares.
Like Xiangjiang Securities, Xiangjiang Bank also lacks electronic systems and has insufficient regulatory capacity for leveraged financing.
Applying for double is relatively easy, triple is a bit difficult (without strong connections within the bank), don't even think about five times, and ten times requires the bank's general manager's personal approval.
Twenty times leverage only exists in the era of electronic finance. Even today, there is no 100 times leverage in gold or futures, let alone 500 times leverage in the cryptocurrency market.
Therefore, no matter how much good talk was put in, HSBC only approved a three-fold leverage, and that was only on the premise that the source of funds was clear and all the stock certificates for the acquisition were pledged to HSBC.
As for reserving HK$10 for the newspaper to be acquired? According to Huoduoli, it was complete nonsense. Only the newspaper's equipment had any value, and it was valued at a second-hand price.
After observing the acquisition progress for a while, Chen Guanjiang got up and left. He figured it was best to leave the professional work to the professionals; the key was to expand the Hyena Daily's business as quickly as possible…