Chapter 810 - 331: A Pure Financial Game

Chapter 810: Chapter 331: A Pure Financial Game

Li Yang knew very well about the GameStop incident from his previous life; the ultimate outcome was Wall Street pulling the plug, major brokers forbidding retail trading, and even forcibly selling off retail investors’ stocks.

This crashed GameStop’s stock price from nearly five hundred US Dollars to ninety-something US Dollars.

Theoretically, with buying restricted and continuous selling, the stock price should have hit zero.

But... Wall Street didn’t dare go that far, as doing so would completely nail them to the pillar of shame.

In US Stocks, there are 20% of international funds, valued at tens of trillions of US Dollars; if Wall Street oversteps shamelessly, they’d face a massive withdrawal of international funds.

From the GameStop affair, those who profited the most weren’t the retail investors; in fact, many of them lost money.

Those who made the most money were the institutions that entered the market to go long once the sentiment surged.

Even within Wall Street, they aren’t a monolith, let alone across the entire Western financial institutions.

Even when GameStop was restricted from buying, it was only the retail investors who couldn’t trade; the big players could continue trading.

Essentially, the West isn’t all that powerful; if they were as strong as twenty years ago, there wouldn’t have been any need for excuses when sanctioning Huawei.

The only advantage the West has now is a thick enough foundation; relying on their heritage, they can sustain for several years.

If they had enough confidence, ensuring no evidence of wrongdoing against you, and you wouldn’t dare do anything to them, they wouldn’t have withdrawn in 2016.

They didn’t even dare fully eliminate retail investors in the GameStop incident; otherwise, with their skills, they could easily push GameStop’s stock price close to zero, bankrupting tens of thousands of retail investors.

After US Stocks opened, Jiang Banxia continued buying, first pulling up five points, then stopped moving.

No high-position chips were available to be thrown out; almost all of Boeing’s chips are estimated to be in both parties’ hands.

About two hours later, Boeing’s stock price slowly rose to 680 US Dollars, so it essentially only increased by 12 points.

But during the session, Boeing directly issued an announcement stating that due to abnormal fluctuations in stock price, trading is suspended today.

Li Yang smiled and said, "See, told you so? It’s suspended... may even end up with an indefinite suspension!"

An indefinite suspension is the best solution; it can lock all funds completely, and after a few months, once trading resumes, retail investors inside will definitely sell off their chips first.

After all, retail investors don’t have much margin for error; dragging on for a few months would cause many problems.

"It’s okay, borrow some of the previous chips..."

"What chips?"

"The ones we bought earlier..."

Jiang Banxia pulled out Chen Peipei’s portfolio data, totaling a whopping 120 billion US Dollars in holdings.

"What are you going to do?"

"Sell it!"

"Hmm hmm hmm? Someone’s going to fight you for this!"

"Sell it first; I’ll help her buy it back later."

With that, Jiang Banxia directly hit the liquidation button.

Without any rules, just selling unconditionally downward!

Over a thousand billion US Dollars in chips was mostly concentrated in large caps, for example, Apple had forty billion US Dollars in holdings alone.

NVIDIA’s holdings reached sixty billion US Dollars.

Dropping such an amount suddenly greatly impacts the market index!

Watching this made Li Yang heartbroken.

This move would lose at least 10 billion US Dollars, equivalent to an unwarrantedly lost eight points.

Apple was directly dropped underwater by ten points, and NVIDIA by sixteen points, with stock prices being pierced instantaneously.

Though follow-up funds quickly patched up, pulling up three to four points in a short time, it would take at least more than half an hour to repair this sentiment.

Without enough incremental funds in the market, it wouldn’t be fixed within a day.

On regular days, Jiang Banxia trades tens of billions to hundreds of billions, always having counterparties, and targets individual stocks, so it hardly affects the index.

billion US Dollars in chips, rapidly crashing the S&P index down by three points.

Received 110 billion US Dollars, similar to Li Yang’s expectation, originally valued at 120 billion US Dollars.

Among this money, 35 billion US Dollars wasn’t Li Yang’s funds; it was borrowed from the Huobi Platform.

Originally borrowing 50 billion, with 15 billion used to buy gold; that batch of gold hasn’t arrived yet.

Li Yang’s phone rang almost immediately.

He silently went to the restroom and answered.

Chen Peipei shouted, "What exactly is Jiang Banxia trying to do? Recently, it’s been crazy misappropriating platform funds, fine, but why liquidate my hard-earned positions? Even if you need to liquidate, does it have to be like this? How substantial is the loss?"

Though a thousand billion US Dollars sounds a lot, but in the entire US Stocks, it’s extremely dispersed; wanting to withdraw in a single day would at most lose two to three points.

Jiang Banxia immediately lost eight points.

This is under reasonably good market receptivity; if it were during days of circuit breakers, with insufficient lower-end reception, the loss could reach ten to twenty points.

"Don’t be mad, don’t be mad, she probably urgently needs the holdings in your hands to help, she’ll buy it back slowly in a few days, I’ll account for this loss."

Li Yang could only comfort Chen Peipei because in this matter... he was clearly in the wrong.

Equivalent to negating Chen Peipei’s hard work over the last half month.

"The money counts as yours, but what about the price I’ve paid staying up exhaustively all this time?"