"Mr. Ma, the market value of Dafang Real Estate is too high; it's very difficult to move against it!" Wu Chengtai said with a troubled expression.
"Mr. Wu, you should understand better how to operate in this situation, since you were the one who created Tianwu Securities. To suppress the stock price of Dafang Real Estate, you can short sell it and borrow a batch of stocks. This would save part of the funds, and you could also make additional profits from short selling!" Ma Chengkun seemed to have anticipated that Wu Chengtai would say this and immediately responded.
Hearing Ma Chengkun's words, Wu Chengtai paused. Ma Chengkun had indeed come prepared, even thinking of how to operate.
Indeed, Ma Chengkun, who was not engaged in finance, could think of such a strategy, and Wu Chengtai, a veteran of the stock market for over a decade, certainly knew how to maximize benefits!
To suppress a stock's price, one needs to hold a sufficient amount of stocks to sell and drive the price down, which requires substantial funds to purchase stocks as ammunition. But aside from buying them directly, one can also short sell by borrowing stocks from other institutions.
However, if stocks are borrowed from other institutions, those institutions become natural opponents. After all, if the stock price drops, the institutions betting against it will suffer losses. To protect their interests, these institutions might be compelled to enter the market and counter Tianwu Securities, increasing the risk of the operation! After all, the forces of the bulls are formidable!
Unless the quantity of borrowed stocks is not large and they see Tianwu Securities' determination to suppress Dafang Real Estate, it might not be worth their risk to enter. How to balance this precisely requires careful consideration!
Ultimately, this approach might offend other institutions, so the primary focus should be on retail investors or smaller institutions.
This is a typical case of preying on the weak!
"Mr. Ma, while short selling might yield greater profits, it also comes with higher risks. To ensure the success of the operation, we still need a large amount of capital," Wu Chengtai said again. Ma Chengkun wanted to avoid contributing funds, but it was clear that he would need to provide some capital to share the risk. Binding Ma Chengkun to the plan would also secure his commitment and increase the chances of success.
At this moment, Wu Chengtai was indeed tempted by Dafang Real Estate.
"Moreover, if our attempt to suppress Dafang Real Estate's stock price is exposed by Jiuding Daily, it could lead to uncontrollable situations. After all, that summer Yu is touted as a stock market god by the newspaper, and he has several million in funds. He could pose a threat to us," Wu Chengtai added. His lips curled slightly in disdain when he mentioned Jiuding Daily's praise of Xia Yu, as if he regarded the title with contempt.
Wu Chengtai had the confidence to look down on Xia Yu. After all, he was the founder of Tianwu Securities, and in his eyes, Xia Yu was just a lucky junior.
"Mr. Wu, how much capital does Xia Yu really have? Even if he made a million in just over ten days and Jiuding Daily received a million in advertising fees, that's only two million. Even if he dares to use five times leverage, that's only ten million. As long as he dares to come in, with your ability, Mr. Wu, wouldn't it be easy to force him to go bankrupt?" Ma Chengkun said with a cold smile.
"Haha!" Wu Chengtai laughed heartily and did not deny it. This was actually his own inner thought.
Underestimating Xia Yu was not due to overconfidence but because it was a reality. In the financial market, capital was king. No matter how capable a person was, without sufficient capital, they would still be trampled upon. This was a matter of hard power.
However, Wu Chengtai did not know that Xia Yu had at least seven million in usable funds and had access to ten times leverage from HSBC Securities, allowing him to leverage seventy million in funds.
The difference between seventy million and ten million was immense!
Sometimes, subjective analysis can be very misleading. Ma Chengkun thought that Xia Yu could only earn a million in ten days, but he underestimated Xia Yu. Moreover, can one trust the news from a third-rate newspaper?
"Alright, Mr. Ma, give me a straightforward answer. If this plan succeeds, it will benefit both of us. To ensure the success rate, the more funds, the better. You must at least provide ten million," Wu Chengtai's expression changed as he said seriously.
Ma Chengkun was about to refuse but quickly swallowed his words.
His eyes brightened as he thought of something.
There was still a chance for the plan to succeed, especially when Tianwu Securities took it seriously, making the success rate even higher. The potential for profit was considerable, and Ma Chengkun was not a fool to miss out on that.
However, he was reluctant to invest because his father, not he himself, controlled the Ma family's finances. He couldn't use too much family money, and with the declining state of Dongfang Daily, he needed funds for operations, so he couldn't provide much money.
But then he thought of something. Since he had never done such a thing before and always used other channels, his mind hadn't turned in that direction. Now, he suddenly realized that it was indeed feasible. The Hong Kong government had been tight on money laundering recently, with many channels reduced, leaving a lot of dirty money that couldn't be cleaned. This was a perfect opportunity to take advantage of.
Ma Chengkun smiled at Wu Chengtai and said, "Mr. Wu, I can indeed provide some funds, but I need your help."
Seeing Ma Chengkun's smile and hearing his words, Wu Chengtai's face turned cold as he immediately understood Ma Chengkun's intention. He said coldly, "You want me to help you launder money?"
"Mr. Wu, we're in the same boat now. Helping me is helping you, and I won't let you do it for free. I'll give you a thirty percent handling fee!" Ma Chengkun said with a smile. A thirty percent handling fee was the normal level. Ma's family would also incur such losses through other channels, and it was quite troublesome. Now, giving it to Wu Chengtai was like adding a safer channel.
Wu Chengtai did not respond immediately but pondered the pros and cons.
He knew that since Ma Chengkun made this request, he would need to help launder the money to get Ma Chengkun's financial support. As he said, helping Ma Chengkun was helping himself. Moreover, with a thirty percent handling fee, helping him launder ten million would result in three million in fees, which was quite profitable. However, laundering money did carry risks! He also worried that if this happened once, it might happen again and could be detrimental to the Wu family!
Thinking of Dafang Real Estate, if this plan could succeed, it would not only implement the family strategy but also make a profit of ten to twenty million, helping Tianwu Securities to soar. This opportunity was too rare!
"Mr. Wu, with the Wu family's wealth, laundering ten million is feasible."
Seeing Wu Chengtai deep in thought, Ma Chengkun said again and then did not disturb him further, instead sitting on a stool with a smile, drinking tea. Based on his understanding of Wu Chengtai, he believed that Wu Chengtai would agree.
After much consideration, Wu Chengtai finally made up his mind. He stared at Ma Chengkun and said firmly, "Forty percent, and I will only help you launder ten million, no second chance!"
"No problem!" Ma Chengkun said with a smile.
"Remember what you said!" Wu Chengtai regained his composure and said calmly.
"I will never go back on my word!" Ma Chengkun said without hesitation.
"By the way, Mr. Wu, this needs to be done quickly," Ma Chengkun reminded again.
"I'll check Dafang Real Estate's information when I get back today. If everything is in order, I plan to start next Monday!" Wu Chengtai squinted and said. Knowing that Ma Chengkun wanted to act quickly, he estimated the time required and set a date.
"Good, I'll wait for your good news!" Ma Chengkun said with satisfaction.