Extraordinary Genius - Chapter 266 – Selling the stocks
The exams were over. Li Na and the rest returned to the district. However, Feng Yu had something to do. It was time for him to sell off some of his stocks.
Not only the Shanghai Stock Exchange opened earlier than it should be, but Shenzhen stock exchange was also set up earlier too. But Shenzhen Stock Exchange was not open yet. It should open next year.
After the treasury bonds exchange was set up, there were many investment companies in China. All of these companies were state-owned, and currently, China does not permit private investment companies.
After the setup of the two stock exchanges and the opening of investment companies, there was an increased number of investors. Especially, now the prices of Treasury bonds had not many changes, those that traded in Treasury bonds, choose to invest in the stock market. This caused the stock prices of all the shares to rise.
But after the new year, some investors would sell off their shares after collecting the dividends. Lunar New Year was a major festival in China and people needed to spend a lot.
Tai Hua Trading’s staffs had also asked Feng Yu when they can sell their stocks.
Today, Feng Yu came to Tai Hua Trading to have a meeting. He wanted to let his staff make the decision. He had helped his team to pick the better-performing stocks. The prices of these stocks will rise further in May.
If they sell their shares now, they will get back returns of about one-fold of their capital. But compared to more than ten folds a few months later, the returns now was pathetic.
“Everyone, I had asked all of you here is to talk about our shares. Everybody had owned the shares for a few months now, and the current price is more than double our buying price. I know that many of you want to cash out these shares. But I want to tell you that in May, it will be the golden period of the shares. It will be a bull market, and the prices of your shares will rise sharply. Now is not the ideal time to sell your shares. But all of you will decide for yourselves.”
After Feng Yu finished, Wu Zhigang and the rest looked at each other. To sell or not to sell?
Now many people were talking about the risk of investing in the stock market. The shares could rise or fall. If the share prices fall, they will lose money.
Wu Zhigang was the sharper one among the rest, and he asked loudly: “Manager Feng, will you sell?”
What? Manager Feng wants to sell? Didn’t he say that the shares can rise at least 3 to 5 times of the initial buying price? Why was he willing to sell now?
Feng Yu saw them talking among themselves, and he continued: “Do you all want to sell too?”
Wu Zhigang replied: “I will listen to you. If you ask me to sell, I will sell. If you ask me to hold on to the shares, I will hold on to them!”
The rest of the staff also said the same thing. They will listen to Feng Yu.
Feng Yu laughed: “I will only sell some of the shares. I need some cash now. Have all of you noticed that the shares you had bought are all the companies that were announced in the papers and these companies were all listed now? After Shenzhen Stock exchange opens, these stocks will rise further. This will happen in a few months’ time. I will not sell the shares of these companies. But I will sell off the shares of other companies and use the money to buy more shares of those favorite companies.”
“Manager Feng, we trust you. We will not sell these shares until you tell us to.” Wu Zhigang said.
“Everything will be fine if all of you trust me. We will earn money together. Now, I will announce the task for the upcoming week. All of us will go out and sell the shares!”
If the stock exchange had not opened, it would not be easy to sell shares. They must hand over the shares to the investment counter in the bank for the bank to sell the shares on their behalf. But now, they can sell the shares straight to the banks and collect the payments on the spot.
Two men carrying a large haversack stood in front of ICBC bank’s Investment counter. Bang. The haversack was placed on the counter.
“How can I help the both of you today? Are the both of you looking for stocks or Treasury Bonds?”
“We are not buying. We are here to sell our stocks.”
The bank employee rolled his eyes. What’s the use of carrying such a big bag? How many shares can you own? These two men must be cashing out their stocks to buy a train ticket.
“Ok. How many stocks are you selling?”
“There are 300,000 shares here. Can you calculate the market value for me now?”
“How much are you selling? 300,000?”
The employee was asked loudly in shocked. The other customers had him and turned towards his direction. 300,000 shares? Who were these people?
The employee looked at the share certificates, and all the shares belong to one company. He checked the current price of the shares and noticed that the prices had doubled. This meant that these 300,000 shares are now worth over 600,000 RMB?
“Dear sirs, I’m sorry our bank does not have enough cash. Can you come back tomorrow?” the employee’s attitude changed.
“It’s fine. Deposit everything into this account.”
After both men left, many people went to the counter.
“Eh, what shares did he sell just now?”
“That’s right. How much money did he sell the shares for?”
“Who are those two men? What do they do?”
At the same time, many people were selling a large number of shares at the investment counters of the banks all over Bing City. The people who sold the shares went to the bank in pairs, and they all used a large haversack to carry the stocks. They were all carrying the same type of shares and the same denominations. But the banks did not notice that all the money from the selling of the shares were deposited into the same account.
The banks thought that this was a onetime incident. But the next day, people were going to the banks to sell a large number of shares. Although it was not the same person, they noticed the account number was familiar.
It was the same for the next 5 days. Feng Yu had sold about 20 million shares and got approximately 40 million RMB.
Tai Hua Trading’s selling of such a large number of shares had caused panics in Bing City. Everyone who owned shares rushed to the banks to sell them. They were afraid that the share prices would fall!
Even those who had wanted to hold on to their shares panicked. They also went to the bank to sell.
Of course, there were a few smarter ones. They knew that the Shenzhen Stock Exchange will open soon and the share prices will increase further. The shares they had wanted to buy in the past was now available, and it was slightly cheaper. This was their opportunity.
Feng Yu’s actions had stimulated Bing City’s stock market, and there were more than a million shares trading every day. The prices of the shares were changing every day too.
The second week, Feng Yu was still selling his stocks. Anyway, other than the companies on his list, Feng Yu had no intention to keep the shares of other companies.
These shares were not as profitable as Feng Y’s investment in gold and oil futures. He wanted to raise a large sum of fund fast. The war is going to start soon!