"Feng Yu, you are amazing. The US had come up with a ban on short selling!" Fu Guangzheng was shocked by Feng Yu's analysis. No wonder Feng Yu is known as the world's top investor.
"That's right. We had withdrawn in time and did not suffer any losses. Our funds are not tied up, and we can continue to dump USD. It's all thanks to your reminder." Professor Liang laughed.
Fu Rongqi was shocked. Although he felt Feng Yu's analysis was right, he did not expect the US to use this method. This will affect the US stock market significantly.
How much pressure should that Cox be under? Also, how many people's profits will be affected by this? Cox is not worried … after all, the two Fannie and Freddie "committed suicide" not long ago.
Feng Yu took a deep puff of his cigar and said casually. "I had said this is the most effective method. Although this will affect the US stock market's image, the US cannot afford another crash. Didn't you all notice that many US investment firms are also shorting the US stock market? "
When speculators in their own countries start to short the US stock market, how can the US stock market hold up? Many people choose to short other companies' shares to make profits and cover their own losses.
Anyway, it is the other companies that will suffer losses. Many tycoons' shares might be falling, but it is not as bad.
Their shares might fall, but it will not affect the company's operations much. The company's liquidity will not decrease when the shares fall. Only the market value will fall.
But the profits from shorting those financial shares are real USD. This portion of profit was much more than their losses.
Furthermore, the tycoons are confident that their company's shares will rise again. They can even buy at a lower price and make more profits in the future. After all, many shares had fallen below their real value, and it will surely recover in the future.
But the recovery time is uncertain, and many people are hesitant.
The US financial market is plunging, especially the financial shares. It also caused the financial shares in other important markets to fall, and the entire stock market fell.
For example, London, Tokyo, Hong Kong, etc. were severely affected. Although it is not as bad as the US, it still caused panic.
At this time, many Hong Kong's upper echelons were communicating with the Chief Executive. The Chief Executive wants these tycoons to take out a sum of money to stabilize the stock market.
Hong Kong is one of the most important financial markets in Asia and one of the four largest financial markets in the world. The scale of Hong Kong's capital is massive.
Finance is one of Hong Kong's pillar industries.
However, these upper-class people did not plan to support the city. In their opinion, this was the responsibility of the government. If the government could not handle it, they could still ask for help from the mainland.
China's financial market does not have such a big impact as short selling is not allowed there. Furthermore, China is so rich. Why should they pay for it?
Why didn't the Li Family, the Fu Family, and the Zheng Family participate? You think we are easy to bully?
If you really can't do it, you can learn from the United States and impose a ban on air sales. These tycoons had received a warning from Feng Yu, the Li Family, Fu Family, Zheng Family, etc. Normally, it is fine to short the market, but this is related to the stability of Hong Kong's stock market. No one is allowed to manipulate the market!
If anyone dares to make use of this opportunity, then don't blame them for working together to bankrupt your family's business!
Many of these tycoons cannot afford to offend the Li Family and the Fu Family, let alone Feng Yu. Many people were saying that Feng Yu is not only the World's Richest Man. He might also be China's spokesperson. These tycoons do not dare to offend him.
Furthermore, it is fine if they are not allowed to short sell. This will save their company's shares from falling.
The Hong Kong government also issued an order to prohibit naked short selling and to investigate the manipulation of the stock market. They will also increase the penalties.
They also implemented a reporting system. That means the price at which you short the stock must be higher than the latest transaction price. This way, short selling will not cause the share prices to fall. This system had been abolished in many countries.
At the same time, many countries and regions around the world had implemented similar measures. The US market, which claimed to be free, was being regulated. Why should other countries care?
Some countries were even stricter. The US only banned short selling of financial shares temporarily. They banned short selling of all shares and did not even announce the time limit.
That means no one knows when this ban will be lifted. Some people even guessed that some countries will not ban short selling temporarily. They might be like Hua Xia, Saudi Arabia, etc., and declare short selling illegal!
Many speculators had lost a lot of money during this period. They were either banned from short-selling, or they were unable to suppress the stock price at all, and they ended up losing money by short-selling.
The US speculators had suffered the most losses. This ban was too sudden and did not give them any time to react.
The 10 days of temporary ban had caused many of their contracts to take up a lot of funds. Not only they could not make any profits, but the share prices had also risen. These speculators could only watch their losses.
The higher the leverage, the higher the losses. Many speculators were forced to close out their positions and lose all their money.
If the speculators were to invest conservatively, they will suffer lesser losses. For example, Soros, who was good at hedging, had also suffered losses.
But no matter what, he had still suffered losses. Soros had wanted to make up for his losses in the Japanese market. But he also suffered losses in the US.
Soros was angered by an irresponsible reporter who claimed that he was the one leading the short selling in the US market, and Quantum Fund was the leader.
But many people believed this. This was because Soros had always given the impression that he was good at using leverage to short sell.
This time, Soros had indeed participated in the short selling of the US market, and he could not explain himself.
Soros felt wronged. He had participated in the short selling, but his funds were not enough. There were many investors participating in the short selling in the market, and many of them were even crazier than him. How can they claim that he was the one leading the short selling?
Soros also wanted to lead the short selling, but how many people are willing to entrust their funds to him and invest in him?
Thus, another scapegoat was placed on Soros' head, causing his reputation to become even worse!
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