February 28th is Saturday, and it is a rest day. The stock market is not open.
However, today was the day that 90% of the empty orders on the market were to be delivered. According to the agreement, Soros and the other short-sellers had to return the shares they borrowed from the securities companies to the securities companies before 23: 59 PM.
For all the bears, this was undoubtedly the end of the world. Their stocks had long been thrown out like bombs to suppress the stock market. Now, if they wanted to repay their debts, they could only buy them back from the stock market. However, the price of their stocks was about 100% higher than the price of their stocks at the beginning.
Even if they have the money, they might not be able to buy the shares. After all, when the stock market is rising, many investors will hold onto their shares and hope the market will recover. It is hard to get them to sell their shares.
Soros and his short-sellers had been buying up shares these few days, but their returns are minimal. In the end, they only got back about 30% of their shares, and there is still a gap of 70%.
In other words, they do not have the shares to return to the securities companies.
Based on the securities companies' regulations, the securities companies will use the short-sellers' assets as collateral for the uncompensated shares and settle the debts based on the stock price on the day of the settlement.
For example, Soros had used 10 billion USD to borrow 100 million shares, and each share is priced at 100 USD.
But now, the shares had risen to 200 USD, and Soros is unable to return the 100 million shares. Then, the securities companies would convert the 10 billion USD that Soros had mortgaged into 50 million shares at the price of 200 USD per share to repay the debt.
But this is not the end. Soros still owes the securities companies another 10 billion USD. If the interest rate is included, it will be 10.5 billion USD.
Every day Soros delays the repayment of his debts, he will have to pay a penalty for breaching the contract, and the interest will compound. Every day, he will have to pay more than 10 million USD of interest.
If Soros does not repay his debts within a certain period, the securities companies have the right to apply to liquidate all of Soros' Quantum Fund's assets to make up for their losses.
That means if Soros does not repay his debts, the entire Quantum Fund will be finished. That's why Soros must settle his debts before February 28th, even if he has to sell everything he has.
Of course, it's impossible to liquidate Quantum Fund.
Soros had borrowed a total of 30 billion USD worth of stocks. He had been desperately buying stocks these days and had already recovered about 10 billion USD worth of stocks. These stocks could all be returned to the securities company, so there was still about 20 billion USD worth of stocks that couldn't be returned. The current price of these stocks had already risen to nearly 40 billion USD. In other words, Soros still had to return another 40 billion USD to the securities company.
However, at the same time, Soros still had about 15 billion USD in cash, and he had 30 billion USD in collateral with the securities company. Therefore, Soros only needed to give 11.2 billion USD of the 15 billion USD in cash (including the interest of the 1.2 billion USD) to the securities company. Together with the 30 billion USD in collateral, the securities company's accounts would be cleared.
But this time, Soros would lose a total of 26.8 billion USD out of the 30 billion USD he had taken out. In the end, he would only be left with 3.2 billion USD. It could be said that he had lost so much that he was dumbfounded.
What's worse is the international hot money investors. They entered the market later than Soros and withdrew later than him. That means their losses are much higher than Soros.
As a result, most of the international hot money investors had to sell more of their assets to pay off their debts even if they lost all of their invested capital. It was said that many of the people in charge of the international hot money investors jumped off buildings.
He might as well just die and end everything.
But Soros had died once, and it's meaningless to die again. He can only think of ways to reduce his losses.
It was said that on the night of the 27th, Soros had been lying in bed alone for the entire day. However, on the second day, Soros had mysteriously disappeared from the ward. No one knew where this big shot had gone.
Only the lady at the front desk of Fusang Daqian knew that at about 9 o 'clock in the morning, when the entire company had just started work, an old man wearing a thick trench coat and sunglasses with a head full of white hair appeared at the front desk of the company.
"Hello, old mister. How can I help you?" The receptionist asked curiously.
This was the first time the receptionist had seen such an old man in the company. Because Fusang Daqian's business usually doesn't involve old people.
"I want to see your chairman, Jia Yapeng!" The old man said straightforwardly.
"Hello, Mr. Jia is the chairman of our Daqian Group, but …"
"I know he's not here. He's in Hong Kong right now, but I've already bought a plane ticket for an hour later. He'll arrive in Hong Kong in four hours. I hope you can tell him that I'll invite him for tea at Longhua Road, Repulse Bay, Hong Kong. He must come! "The old man said straightforwardly.
"Old mister, you might not understand. It's impossible for me …" The receptionist was a little dumbfounded. She's been a receptionist for so long, but she's never seen someone who likes to arrange things for others so much!
"Tell him that the person who's treating him to a meal is his defeated opponent, Soros!" The old man sighed. Then, he took off his sunglasses and revealed his appearance, revealing his somewhat haggard and pale face.
"Who is Soros?" In the end, the receptionist asked stupidly. Soros, who was already very weak, almost died from anger.
— — —
"Why is this old man looking for us? He wants to directly use force to take revenge! " Zhu Qiushui, who received the news, was shocked. Then, she said to Jia Yapeng, "Hubby, it's better if you don't go. Or let someone else go for you!"
"Impossible. People in our position won't use this kind of method. Otherwise, there'll be endless trouble!" Boss Jia smiled, "Besides, Repulse Bay is my territory. The villa he mentioned is actually next door. I'll get someone to go in first and control the entire villa!"
"Aren't you breaking into a residential area?" Zhu Qiushui was stunned.
"Yeah, so the guy who broke in will obediently pay the bail. It's not expensive. It's only a few hundred thousand Hong Kong dollars!" Boss Jia said with a smile.
"Okay …" Zhu Qiushui could only helplessly shake her head when she heard Boss Jia's words that were obviously illegal. However, the issue of safety couldn't be neglected. For safety, it was worth doing anything overboard.
"Then, do you know why Soros is looking for us?" Zhu Qiushui asked curiously.
"I guessed a little!" Boss Jia shrugged. "Don't worry. It's a good thing this time. I can't wait for him to come!"
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