"How is it? Can you tell whether the force buying up Wharf's shares only started today, or if they began accumulating earlier than us?"
After hearing that another mysterious party was also secretly acquiring shares of Wharf Holdings, Li Jiacheng immediately instructed his traders to investigate. He needed to know when the other side started buying — only then could he judge how many chips they already held and decide what to do next.
"After analyzing the trading data," one of his subordinates reported, "we found that over the past two months, whenever Wharf's stock price went above HK$13, it would drop within a day or two. Then, once it fell to around HK$12.5, it would be pulled up again and start rising slowly."
"So if there really was a major force buying Wharf shares early on, it must have begun within the past two months," he continued. "However, this is only speculation. It could just be a coincidence — a normal market pattern. After all, Wharf has long been out of favor. When the price rises to a certain point, it's only natural that retail investors would cash out their profits."
"I don't believe in coincidences."
Li Jiacheng's face darkened. Inside, a mix of frustration and unease churned in his chest. If someone really had started buying Wharf a month or two before him, then they must already hold far more shares than he had accumulated in just two days.
"Mr. Li," another subordinate offered cautiously, "even if someone began buying earlier, it doesn't necessarily mean they're trying to acquire the company. Maybe they just realized Wharf's market value was undervalued and wanted to push up the price to make a profit."
"That would be the best-case scenario," Li nodded slightly. Although this meant his own acquisition costs would rise, the potential profits from controlling Wharf far outweighed such concerns.
"How can we confirm their true intention — whether they aim to take over Wharf or simply profit from speculation?" he asked.
"Tomorrow," the trader replied, "we increase our buying pressure and drive up the stock price sharply. If their goal is to acquire Wharf, they'll want to suppress the price — they'll sell to resist the surge. But if they're only after profit, they'll join in and push the price up alongside us."
He hesitated. "However, this approach will inevitably send the price soaring. Institutional funds and retail investors will jump in. Once that happens, it'll be nearly impossible to keep our operation secret. Jardine Matheson might notice the abnormal trading activity and start monitoring the stock."
"The price mustn't go too high," Li said after a moment of thought. He still wanted to acquire Wharf. If the price inflated too much, even if it later fell back, it would remain far above the current level — unfavorable for his long-term plan.
"Tomorrow we'll buy aggressively," he decided. "Once the price exceeds HK$17, stop buying and observe. If it climbs beyond HK$20, dump everything — sell all our shares and crush the price. Retail investors always follow the wind. Once profits are on the table, they'll rush to sell, causing a chain reaction. The stock will inevitably drop."
"Today Wharf closed at HK$13.1. A jump to HK$20 would mean over 50% profit. When that much gain appears, any downturn will bring a sharp correction. Though personally, I doubt it'll reach that high — unless the other side deliberately pushes it up."
"We'll see tomorrow. The market will tell us what kind of player we're dealing with."
For now, this was their plan. But in truth, everything hinged on how Wharf's stock would move when the market opened.
Deep down, Li Jiacheng prayed that this mysterious third party was only in it for profit. If they were truly aiming for a takeover, his dream of seizing Wharf might shatter entirely. The opponent likely already controlled a significant portion of shares, while he would soon have to dump some of his own just to suppress prices.
Yet he had no other choice. He couldn't keep buying endlessly into a rising market — the cost would become unbearable. With the funds currently at his disposal, such an approach would be suicidal. Worse, he might end up trapped at inflated prices.
But if he executed his plan and deliberately drove prices down, even if the rival was indeed aiming to acquire Wharf, he wouldn't lose. His shares had been bought cheaply — selling them high to trigger a selloff would actually yield profit. In that case, he would at least walk away with gains, not losses.
At that time, Hong Kong had four separate stock exchanges: the Far East Exchange, the Gold & Silver Exchange, the Kowloon Exchange, and the original Hong Kong Stock Exchange.
The "Four Exchanges Merger" wouldn't happen until 1986 — it was still years away.
Still, the exchanges were interconnected by data. Even if a company was listed on the Far East Exchange, investors could trade its shares on the others, though the process involved an extra step and a slightly higher transaction fee. It was cumbersome and wasteful, so most retail traders stuck to the exchange they belonged to — unless they spotted an exceptional opportunity.
The Hong Kong Stock Exchange, being the oldest, remained the largest and most dominant of the four. Most listed companies traded there, and the daily activity was unmatched.
As dawn broke, traders — from institutions to small investors — crowded into the trading floor, scanning the morning's news and company announcements.
The 1977 Hong Kong stock market had been turbulent. The Hang Seng Index opened the year around 447 points, briefly climbed to 450, then slid downward. Only by mid-March had it begun a technical rebound. Later, when HSBC announced an interest rate cut, the index broke 450 again, setting a new high for the year.
But in the latter half of the year, with little positive news, the index fluctuated narrowly between 410 and 440 points.
Now it was November. And as the saying went — "Stocks always rise by year's end." The Hang Seng Index had indeed been climbing lately, with trading volumes swelling. Investors sensed opportunity. The exchanges bustled with life again.
Under such an atmosphere, it was impossible for Wharf's sudden price movements to go unnoticed.