Chapter 319: Appetizer
Meanwhile, Wang Qi followed closely behind Xia Yu, walking past rows of operators. Each employee had their head held high, fully focused on their tasks as if they had been injected with adrenaline. Xia Yu nodded approvingly.
Over the past ten days, Team 8 had begun executing Xia Yu's plan, with two teams secretly accumulating shares with the same target.
As the saying goes, the business world is like a battlefield, and stock market competition is a war without gunpowder. Naturally, Xia Yu had to strategize and position his forces to ensure final victory.
In the ongoing sniper and acquisition battle, the four target companies—Yihe Air Cargo Station, Yihe Insurance Advisory Group, Yihe Machinery Group, and Kowloon Warehouse—were divided into two true and two false targets.
Xia Yu's strategy was simple: he employed the sixth stratagem of the Thirty-Six Stratagems—"Feign the east and strike the west"—and the eighth stratagem—"Hide a sword in a smile"!
Though it seemed simple to Xia Yu, it was quite challenging for Yihe. Adding Xia Yu's meticulous planning into the mix, things became even more complicated.
Yihe Air Cargo Station, being the smallest of the four targets, naturally became the first to be targeted.
To date, by combining shares acquired in the stock market and from scattered shareholders, Xia Yu's accounts collectively held 18.5% of Yihe Air Cargo Station's shares.
At this level, the number of shares circulating in the stock market was minimal. The remaining shares were either held by Yihe Air Cargo Station's shareholders or by retail investors and institutions firmly believing in the stock's rise.
Therefore, continuing to acquire shares was becoming increasingly difficult!
However, an 18.5% stake, even if exposed, was not a significant threat compared to Yihe Pacific's 35.85% controlling stake. It wouldn't achieve the desired effect of Xia Yu's plan.
What to do at this point?
The only option was to play hardball!
If retail investors and institutions were unwilling to sell, Xia Yu needed to undermine their confidence and force them to sell!
In the stock market, intelligent and resolute individuals are rare. Most investors follow trends—buying when prices rise and selling when prices fall. Few have the courage to buy at a dip.
Although buying at a dip seems simple, in practice, it's quite difficult. The knowledge involved can take a lifetime to master, and even the most basic problem—how to determine if a stock price has hit a bottom—is challenging for most.
Moreover, many institutions and retail investors use financial leverage to maximize profits, which also amplifies risks. If judgments are wrong and stock prices continue to fall, the situation can become dire. Large declines, coupled with significant leverage, can lead to complete loss of capital!
Thus, only a few people have the courage and confidence to stick with their stocks during a downturn. The majority panic and sell to cut losses when prices plummet!
The future is bright, but most people fall before the dawn!
Xia Yu calculated precisely for this large group!
The combined effort of the *Jiu Ding Daily* and the Jiu Ding Securities Research Institute was the first step in creating public panic. The second step was to validate and amplify that panic as quickly as possible.
The most suitable entity to achieve this wasn't the newly established Galaxy Fund but the well-established Jiu Ding Securities Company! With its impressive track record and Xia Yu's reputation as a stock market genius, influencing the stock price of Yihe Air Cargo Station was a piece of cake!
The first to launch the attack was indeed Jiu Ding Securities Company, specifically Wang Qi's managed Evergreen No.1 Fund!
Evergreen No.1 Fund openly aimed to suppress the stock price, letting others know that it was Jiu Ding Securities Company behind it. Due to Jiu Ding Securities Company's reputation and strength, other institutions would not dare to counteract without a thorough investigation. They might even follow suit and short the stock, aiding Xia Yu's plan!
Xia Yu's goal was to buy more shares. Simply suppressing the stock price would contradict his plan.
So, what to do?
At this point, the Galaxy Fund emerged, acting like a hidden crocodile under the water, quietly absorbing low-priced shares.
The Galaxy Fund and Evergreen No.1 Fund were Xia Yu's right and left hands. Manipulating them did not result in any loss.
When other institutions or retail investors, influenced and selling at lower prices, helped suppress the stock price, the Galaxy Fund could buy those shares at an even lower cost. This discrepancy created a profit!
The lower the buying price, the higher the potential profit when the stock price rises again during the subsequent competition!
If other institutions and retail investors chose to wait, refraining from selling stocks and even buying more, what then?
Xia Yu was prepared and staged a show for others to see! Evergreen No.1 Fund would create market turmoil, while Galaxy Fund would struggle to resist, but buy back shares before other institutions could.
If the situation became more complex, a second contingency plan would be activated: Galaxy Fund's first team would sell off and create market turmoil, while the second team would secretly absorb shares.
If other institutions attempted to go long, Xia Yu would let them experience the true meaning of market crashes. Both Galaxy Fund and Evergreen No.1 Fund would suppress the stock price simultaneously, intimidating competitors into withdrawing!
Subsequently, Xia Yu would continue buying during the trough!
With these plans, Xia Yu could control the stock price fluctuations and the extent of suppression. The power to suppress the stock price depended on the resistance.
Of course, this was for institutions and retail investors looking to exploit the market. If Yihe Air Cargo Station itself was the buyer, it would be a different story.
Because if Yihe Air Cargo Station bought shares, they would never sell. If Xia Yu suppressed the stock price and Yihe Air Cargo Station acquired them at a lower price, it would inadvertently help them. Xia Yu wouldn't make such a foolish move.
To avoid this, speed was essential! Act quickly to suppress the stock price as much as possible before Yihe Air Cargo Station gathers funds and enters the market, and acquire as many shares as possible.
Once this step is completed, it would be time for the final stage—raising prices to grab shares before Yihe Air Cargo Station, and then launch an acquisition battle at the right moment.
Xia Yu's plan was meticulously detailed, with specific steps for each stage and contingency plans for potential emergencies.
If unforeseen situations arose beyond the plan, Xia Yu would handle them personally!
During this period, he would spend most of his time here until the war was won!
"Yihe, the appetizer is ready. Let's get started!"
Xia Yu's lips curled into a cold smile as he thought to himself.