"I want to buy 300 shares of Hutchison Whampoa!" "I'll take 600 shares, at HK$0.5 above market price!" "I want 1,000 shares!"
Inside the exchange, countless investors lined up to buy Hutchison Whampoa stock.
Meanwhile, in the mid‑tier and VIP trading rooms — reserved for those with larger capital — many were also queuing. Each order was no less than HK$100,000.
Normally, these rooms were quiet, since few qualified to trade there. But after Hutchison revealed the truth of its investment, everyone wanted in, so even here queues formed.
HK$7! HK$8! HK$9! HK$10!
In less than ten minutes, Hutchison's price broke HK$10. Many couldn't buy at all. The stock soared with almost no volume.
At that point, hardly anyone was selling. Sell orders were rare, while buyers crowded in. So despite the rising price, few trades actually executed — the lack of volume made the climb even faster.
If trades were computerized, the price might have doubled in a single minute.
Retail investors weren't foolish. Knowing Hutchison had profited HK$500 million, they refused to sell, certain the stock would soar.
Only after Hutchison broke HK$12, with market cap nearing HK$5 billion, did sell orders increase. But the rally didn't stop.
"Up! Keep going!" "Charge! Push it higher!"
Shareholders holding Hutchison stock were ecstatic, watching the price refresh upward.
"I'm rich! This time I've struck gold!"
Chen BaoCai trembled with excitement. Though he had sold HK$40,000 worth of shares earlier that morning — missing some gains — he had lowered his cost on the remaining HK$80,000 stake to about HK$3.
With the current trend, breaking HK$15 was only a matter of time. His HK$80,000 would quintuple to HK$400,000 — more than his entire net worth.
But while some rejoiced, shorts despaired.
Those who shorted below HK$5, especially with 5x leverage, were wiped out. Even 3x leverage accounts were liquidated.
Brokerages suffered too. When short sellers went bankrupt, brokers still had to buy back shares to return to the market. If the short seller had money, fine. If not, the broker bore the loss, chasing debts afterward.
At noon, the morning session ended. Hutchison closed at HK$14.25, with market cap HK$5.7 billion.
In the VIP trading room
A trader reported to Feng JinXi: "Sir, this morning we bought 4.2 million shares between HK$3–6, average cost HK$4.8, spending just over HK$20 million. Later, as the price surged, we barely bought any between HK$6–10. Only after sell orders appeared did we get 600,000 shares at HK$13.2, costing nearly HK$8 million."
"So in total, HK$28 million spent, but only 4.8 million shares acquired."
Feng's face darkened. Beyond their HK$220 million options short, they had also borrowed HK$40 million worth of shares at HK$3 to smash the price — over 13 million shares. Now, after spending half their funds, they had only a third of that quantity.
Worse, prices kept rising. Covering those 13 million shares would cost far more. And the HK$220 million options short loomed.
Niu BiJian said gravely: "This time, we've lost big."
"Damn it!" Bob cursed, slamming his fist. His losses were greatest. He had once held 5% of Hutchison, sold cheaply, and now faced massive short losses.
Even Li JiaCheng's face was grim. His losses were smallest, but still painful.
Feng told Niu: "Mr. Niu, please contact Iwasaki FengLong again. Try to negotiate a settlement price for the options. That's the key."
If not, they would have to buy the required shares for delivery. The HK$220 million short at HK$6 strike meant 36.6 million shares. At current prices, over HK$500 million.
And Iwasaki wasn't foolish. He wouldn't settle cheaply.
Fortunately, the burden was shared among four. Otherwise, they'd be contemplating escape — or worse.
"I'll try again," Niu nodded. "But I doubt he'll accept below HK$20 strike."
Among them, Niu's position was safest. The losses were Jardine's, not his personal fortune. He might lose his chairmanship and face lawsuits, but financially he was less exposed.
By the weekend, they had already discovered their counterparty: Iwasaki FengLong, of Japan's Iwasaki family, tied to Mitsubishi Bank. They had tried negotiating, but he refused — not even naming a price.