Chapter 12 The Hong Kong Stock Market Closes

After more than four years of gestation, the Hong Kong stock market is about to enter the climax stage.

Since 1968, the Hang Seng Index has risen from 66.02 points to 406.32 points at the end of 1971, an increase of about 6.5 times in four years.

According to Andrew's memory of his previous life, by March 9, 1973, the Hong Kong Hang Seng Index will reach the highest point of 1774.96, and the craziest stage of this market will come. It's worth witnessing.

After returning home in London from school, Andrew plans to rest at home for a while before heading to Hong Kong, where he plans to spend most of the year.

After dinner, the family chatted, and Andrew informed his parents of his plans to take a year off from school next year and rush to Hong Kong to deal with investments. The parents agreed when they understood.

In the Western world, parents generally do not interfere too much with the normal self-selection of young people who have reached adulthood. For example, Andrew chose to take a year off from school.

This time, the Hong Kong stock market is the most crazy rally, and Andrew intends to bring family funds to make a profit. told his father Allen that his analysis and prediction of the Hong Kong stock market is a very good short-term opportunity to make money, and family funds can participate with confidence.

For Andrew's investment proposal, his father Allen fully trusts it and says that the family will fully participate this time. After all, over the years, Andrew's performance in all aspects has been quite good.

After a two-week break at home, Andrew will travel to Hong Kong, where his father, Allen, has raised £1.2 million to participate in the Hong Kong stock market.

On July 16, 1972, Andrew and his father Allen arrived in Hong Kong. After resting and adjusting the time difference, the two went to HSBC to visit Shen Bi in the morning. In the afternoon, Andrew and his father Allen came to their own brokerage company. After arranging and signing the entrustment contract for the family's funds, his father Alan said goodbye to the family hotel affairs.

Under the guidance of Mr. Henry, Andrew came to the office on the third floor to fully understand the situation of the Hong Kong stock market and the holding of his own funds.

Today's Hang Seng Index is 520 points, Andrew's earliest investment in the first half of 68 brokerage companies self-operated funds of 300,000 pounds, about 5.2 million Hong Kong dollars of stocks, the current stock market value is about 35 million Hong Kong dollars, the second half of 69 years invested 9.6 million pounds, about 135 million Hong Kong dollars of stocks, the current stock market value is about 400 million Hong Kong dollars, a total of 430 million market value of holdings.

A stock with a market value of 430 million is not a small amount, and when to sell it safely is the key. According to the memories of previous lives, the Hong Kong stock market still has seven or eight months to rise, and it should be ready now.

First of all, discuss with Mr. Henry to gradually sell the stocks with small circulation and weak rise, and choose to buy new shares with the selling funds, and take the opportunity to quickly enter and exit the new shares to ensure the liquidity and safety of funds. Then focus on buying stocks in the memories of previous lives, such as Wharf, Hongkong Land, Milk, HSBC, Cheung Kong Antenna and other company stocks.

After arranging the matter of holding shares, Andrew was temporarily idle, and he wandered around Hong Kong without any purpose. In 1972, there weren't really many places to see in Hong Kong. After a few days of wandering, Andrew lost his interest, nor did he encounter sexual encounters or anything, but a variety of local snacks satisfied Andrew's appetite.

Andrew, who wanted to return to the stock market, took root on the stock exchange, soaking in the exchange hall every trading day, and operating the stocks in his account. The originally scattered holdings were gradually concentrated in the four stocks of Hongkong Land, Milk, HSBC and Wharf.

From the beginning of August to the beginning of October, in two months, Andrew's stock concentration plan was completed, and now he only holds four stocks of Hongkong Land, Milk, HSBC, and Wharf and 30 million new stock funds.

The days quickly came to October 24th. The milk company, which has risen to 123.28 yuan, rose by more than 11% on the 25th, closing at 137.61 yuan.

Is the classic incident of drinking milk in the memory of the previous life finally about to begin?

Andrew was excited, in his previous life, he only had a general understanding of the climax of this famous merger and acquisition, and where would he understand the intermediate process in detail.

He hurriedly checked Hongkong Land's share price, and closed at 95.41 yuan on the 25th, also hitting a new high.

On October 26, the stock price of Dairy Farm Company corrected slightly.

On Friday, October 27, the Dairy Farm stock price rebounded to $135.17.

The stock market is closed on Saturdays and Sundays.

On Monday, October 30, the stock price of the dairy company fluctuated slightly between 136 and 137, and ten minutes before the market closed, several large orders suddenly came in to sweep the market, and the stock price rose sharply, and finally closed at 140.03 yuan.

On the morning of November 1, 1972, when the largest takeover war occurred since the opening of Hong Kong, the British-funded Land issued an announcement that Hongkong Land exchanged two shares with a face value of $5 in cash for a share with a face value of $7 and a half in the hands of milk shareholders, which became the focus of the market for a while.

The closing price of Dairy Farm yesterday was 140, while Hongkong Land's share price was 95, and the two Hongkong Land shares were worth 190, and if Dairy Farm shareholders executed the share exchange, they could get a par premium of HK$50.

Throughout the day on November 1, the dairy company did not respond, and the stock price rose slightly, closing at 199.03 yuan, close to the 200 yuan mark. At this time, no one doubts whether it can break through 200 yuan, and everyone is discussing whether the milk stock price can break through 300 yuan. The Hang Seng Index soared 43.67 points to 623.67 points, setting a new record for the day's trading volume of HK$443 million.

On November 3, the dairy farm company issued an announcement calling on shareholders to make a prudent decision and wait for the next step of the board of directors' notice. The stock price of milk exceeded 200 yuan and closed at 201 yuan.

Over the next few days, the market awaited the next announcement from Dairy Farm, and Dairy Farm's share price climbed slightly, and the stock market continued to rise slowly.

On the morning of November 8, the dairy farm company issued a second announcement, unequivocally rejecting Hongkong Land's acquisition plan and calling on shareholders not to accept Hongkong Land's acquisition offer.

At noon on the same day, Hongkong Land held a press conference, at which the two major finance companies, Jardine Fleud and Wolvery, announced the specific acquisition matters, urging the shareholders of the dairy farm company to exchange shares and transfer their shares as soon as possible, and the acquirers must register at the Pedder Street Central Registry before November 29.

On November 9, the stock price of milk closed at 218 yuan.

November 10th, the day when the stock price of milk was the highest in his previous memory, Andrew had instructed Mr. Henry yesterday to arrange today's trading staff and wait for his instructions.

As soon as the market opened, the stock price of milk continued to rise, and soon broke through the 250 yuan mark, "255!" yuan, when it reached "260" yuan. Andrew's shipping order arrived, and several traders continued to sell orders in accordance with yesterday's instructions to continue to ship in (5 to 100,000 shares) small (1 to 20,000 shares), but the huge buy order easily ate Andrew's sell order, and the stock price continued to rise, and soon exceeded 265 yuan.

"Increase the number of shipping orders, all pending orders!" Seeing the rising momentum of the milk stock price, Andrew issued another order.

As Andrew's sell orders increased, the upward momentum of the milk stock price slowed down, and an hour later, Andrew's milk holdings were half shipped, and the milk stock price also rose by 270 yuan. Ten minutes before the market closed in the morning, when Andrew's milk holdings were sold for the last time, the milk stock price had risen to $280.

When he received the news that all the milk stocks were sold by the traders inside, Andrew, who was sitting in the air-conditioned room, suddenly relaxed. Wiping a handful of fine sweat from his forehead, he stood up and exhaled a long breath of excitement. I couldn't help but clench my hands and wave my fists, and I couldn't help but sigh in my heart: the process of stock gambling is still very exciting, and the feeling of success is memorable!

Looking up and seeing that the rising momentum of milk's stock price continued, Andrew didn't care much about this, and he successfully withdrew. Today's stock operation is complete, and I will wait for the statistics of the amount of milk stocks sold.

Before the market opened in the afternoon, Andrew's milk stock selling statistics came out, selling 1 million milk stocks in the morning, with an average selling price of 267 yuan, and a total selling price of 267 million. The average purchase price is 53 yuan, 5 times the income.

After the market opened in the afternoon, the funds from the sale of milk stocks bought 32 blue-chip stocks as planned, which was to prepare for the smooth shipment next year.

At the end of November, Hongkong Land announced that it had successfully acquired the dairy company, holding more than 80% of the shares, and the company would be privatized and the stock seats would be cancelled. Affected by the news of the successful acquisition, Hongkong Land's share price rose to 134 yuan.

On December 5, Hong Kong Antenna was listed on the Kowloon Stock Exchange, and on the day of listing, Andrew bought 1.5 million shares at an average price of 7 yuan at a price below 10 yuan. It is planned to sell after two weeks of holding.

As Christmas approached, his mother, Ruth, called and asked Andrew to return to London as soon as possible for Christmas and New Year. After Andrew agreed, he discussed with Mr. Henry the timing of his shareholding shipment.

In principle, by March next year, Andrew and his family will sell all their holdings. If the shares are in circulation in March, then the shares will be sold before the ex-rights date.

On 15 December, Andrew returned to London to reunite with his family, and after a warm and happy Christmas and New Year, he flew to Hong Kong again on 18 January 1973, this time the final stage of the Hong Kong investment was approaching.

In 1973, the Vietnam War ceasefire, the Hong Kong government announced the construction of a subway, companies paid dividends and dividends, and Western financial turmoil continued, the Hong Kong stock market became even more frenzied, like gold everywhere. At the beginning of 1973, when the market was doing well, many people wishfully believed that 1973 was the "Year of the Ox" according to the Chinese zodiac, and that the "Year of the Ox" literally coincided with the "bull market", which was a good sign.

The Hang Seng Index seems to reflect the prophecy of a "bull market", rising from 843 points to 1,400 points in the first 35 trading days of the year, an increase of 60%.

Under the influence of the concept of "as long as stocks, no banknotes", many citizens rushed to buy stocks, and the trading volume continued to expand, and in the first month of 73 years, the turnover reached 9.45 billion yuan, which was 60% of the annual trading volume of 71. By the second month, the stock market frenzy was still in place, and the volume remained strong for the first month.

In late February, Andrew's plan to ship his holdings began to come into effect, and as his holdings were gradually sold, the funds began to flow back into the bank's margin account. Andrew first settled the £6 million principal plus interest rate borrowed from his previous HSBC financing account.

The next repatriation funds are all in their own pockets.

By the close of trading on March 1, Andrew's shareholding shipment plan was successfully completed. The next morning, the results of the selling statistics came out.

Allen's share account statement: Allen's £120 family capital invested in July last year yielded 3.6 times, net of various rates, a net gain of £4 million.

Andrew's share account statement: 69 years of HSBC financing 9.6 million pounds of capital investment, income 8 times, net income of 9.6 million pounds of financing borrowings and various rates, 54 million pounds of net income.

Brokerage company's proprietary stock account statement: 68 years invested 300,000 pounds, 20 times the income, net income of 5.5 million pounds after deducting various rates.

After reading the stock account statement, Andrew was pleased to realize that his personal net worth had reached 60 million pounds, and he was a small rich man in London. The primary stage of accumulation of wealth has been reached.

PS: Dear book friends, please collect, ask for recommendations!