Chapter 1402 - 1396: Slapping Their Own Face
"Why are they so wealthy? Over the years, through high property prices, it's essentially concentrated decades of societal wealth into their hands. However, such a method seems too direct, shouldn't we stop tolerating them this time?"
Lin Chuan thought for a moment, nodded, and said, "You and Sister Liang can handle the specifics. There shouldn't be any other changes now."
In the past few days, through their proactive market intervention, they had accumulated quite a few chips. Now, when they strike the market again, Lin Chuan can act first, dropping the stock price sharply to trap their funds.
If they continue to crash the market according to the original plan, their financial losses will be huge. Ultimately, the amount will likely exceed what Lin Chuan and his team lost in the stock market.
Of course, such a tactic can only be used now; if previous rumors aren't resolved, this action might induce a capital panic, and they could ruin themselves.
The operation went smoothly. If the real estate group doesn't want to lose its funds, it has to support the market again, waiting to push up the stock prices to a suitable level to short again. Regardless of whether they can succeed, time has already been delayed.
So, this reflects the gap in investment experience between the two sides; with one seemingly simple action, they can firmly grasp the initiative!
However, the subsequent development of the stock market was entirely different from their estimate!
The shares were quickly supported and did not collapse, yet instead of stabilizing, they surged again at an astonishing speed.
Online "informers" soon claimed they had found those who made the previous videos, including some "citizens" answering questions within.
Of course, as some later pointed out, these people were paid to make those videos, and the situations depicted were entirely fictional, meant to collaborate with specific individuals to depress stock prices related to Sichuan University Group companies!
This news not only aroused extreme anger but also further strengthened their confidence in Sichuan University Group.
"I told you, Sichuan University Group is a company that does great things; its future achievements are boundless. I warned you not to trust those videos." Countless people began flaunting to those around them like "Prophets."
Accompanying this boasting were investors who showed their support for Sichuan University Group through actual actions.
The shares of Xinhuan and Sichuan University skyrocketed.
"Isn't this a slap in the face for them?" Even Tang Yumeng couldn't figure out what they were playing at.
Weren't they trying to smear the company? Now, as they've clarified things, what was the point of the significant effort spent creating such rumors? Although their countermeasures through strong tactics have made an impact, some effects remain.
Now, they certainly can't expect anyone to believe such tactics again.
"No, this is indeed an extremely clever approach." Lin Chuan initially didn't realize it, but after carefully observing the changes in trading volume, he understood their intentions: "Now that our chips were withdrawn when we shorted before, they precisely took advantage of raising the stock using general investors' funds to earn profits. I assume once they earn enough, they will sell without hesitation, essentially amassing additional funds."
Tang Yumeng and others also understood that this tactic was not unfamiliar, as Lin Chuan often used it to narrow the strength gap when fighting against Nomura Xin during financial disadvantages. It's unexpected that now they were tricked by others.
The more significant issue is that they don't have enough power to intervene now; rashly entering again might alert the opponent, leading them to prematurely sell their stock, trapping them at high levels—then they would truly be passive.
"It doesn't matter; we still hold the initiative, and even letting them win for a while isn't a big problem." Lin Chuan smiled, comforting the others.
However, Lin Chuan's optimism was premature.
The opponent seemed to have switched their entire team of operators, completely changing their tactics and style.
Initially, they guessed correctly; when the stock prices rose to satisfactory levels, they immediately began selling, cashing in the profits. But afterward, they didn't let the market change the stock prices.
Their selling was extremely skillful and patient, with no sign of worry about being trapped. Selling some today and some tomorrow, the amounts just enough to suppress all forces trying to support the market, almost crushing all bullish forces within a week, causing them to perceive the stock as dead shares. Afterward, the stock prices plummeted.
Such a performance surprised even Lin Chuan.
He hadn't anticipated them to suppress the stock prices to this extent despite the rumors being debunked!
"Now, we need to pay more attention to the bond market situation and, if necessary, repurchase more bonds in advance." Lin Chuan's expression was much graver when he returned to Liang Ruoyu's office.
"The bond market?"
"Yes, although we've repurchased most of the bonds, they can't control our company's debt through this method. However, if the stock market plummets and the bond market presents issues, it would outwardly reflect our company as extremely passive."
"But most of our funds are currently invested in the real estate market to support Hongfeng Group, so company funds aren't plentiful right now."
"That's not a big issue; as long as we act decisively, we should be able to recover a substantial portion of the bonds before they succeed, as the bond circulation is relatively small."
Liang Ruoyu and Tang Yumeng cautiously monitored the bonds of the four companies.
The opponent's flexibility nearly matched Lin Chuan's. The following day, the bonds of Sichuan University Group and other companies came under heavy pressure, but fortunately, they were prepared, immediately investing the freed-up funds, preventing more severe consequences.
Lin Chuan certainly wasn't the kind to take a hit without fighting back.
After long discussions with Tianfu Energy and other allies, several newly released joint press conferences announced that they would increase efforts to develop new conceptual green residential projects.
The press introduced many avant-garde designs, with the chief designer from Hongfeng personally crafting the stylish exterior. Although these homes might not suit ordinary people, they instantaneously attracted the young affluent.
These individuals, after earning money, would likely indulge in buying a good car paired with a villa, signifying their status and serving as venues for necessary social gatherings.
Regarding cars, they might compete based on the brand and model displayed; price holds little significance. If a reputable brand with a fashionable appearance, owning such a car sure earns them prestige. However, concerning villas, there's little to elaborate. Even opting for the best only means larger spaces; no visible distinction otherwise.
Yet, the newly launched villas by Tianfu Energy precisely match their needs and tastes.
Younger generations certainly endorse modern ideas and environmentally-friendly concepts; starting with such green villas effectively triggers their sense of social responsibility.
Additionally, such avant-garde ideas highlight their individuality. Imagine discussing villas among peers, others unable to identify significant differences with their own. In contrast, one's villa unequivocally becomes the focal point.
Plus, they've heard of Tianfu Energy's reputation—the leading global designers creating unique villa models.
Importing multiple aspects draws considerable attention to their designs.
Their success here signified that Ma Chenggong and other traditional real estate businesses' villa lines lost all competitiveness.
Despite their previous financial robustness, the villas represented their most profitable "product." Now, this juicy piece of business looked set to be wholly taken over, causing not just distress but real, substantial threats!
Villa purchases boast the lowest default rate; many prefer outright purchases with cash, avoiding installment payments. This contrasted the tight funds they've faced, making it a matter of survival.
Lin Chuan's decisive punch proved more powerful than the stock market turmoil they stirred in retaliation.
Yet, even amidst such direct blows, Old Yue could suppress dissatisfaction with his prestige, continuing to support Xiao Su's actions.
Xiao Su indeed did not disappoint them.
Three days later, a piece of news surfaced, enough to incite nationwide tremors.
In light of the escalating domestic drug prices, especially those expensive high-quality imported medications, authorities considered not only removing all drug tariffs but also granting subsidies, genuinely reducing the medication cost burden for domestic patients!
While appearing excellent, this policy inevitably forces domestic drugs to lower their prices in response.
The harshest impact would be felt by Xinhuan Pharmaceutical!
Initially, Xinhuan Pharmaceutical adopted a strategy aligning with international pharmaceuticals for their new anti-cancer drug. While relatively cheaper, such measures eliminated the price gap with similar foreign drugs.