Chapter 44: Something's Wrong with the Market
"We have to make every dollar on our balance sheet count. If Hongkong Land loses Wharf Holdings, the blow to the entire group will be immeasurable.
"However, Hongkong Land doesn't need to worry too much. Jardine Matheson will fully support Hongkong Land. The Wharf Holdings shares currently held by Jardine Securities will be transferred to Hongkong Land at the most appropriate time to increase our stake.
"If necessary, Hongkong Land can even consider selling premium properties such as Golden Gateway Building to quickly raise additional cash."
Henry Keswick looked at Hugh Barton as he spoke decisively.
Within Hongkong Land, Keswick's authority was unquestioned. Even Barton, the company's General Manager, understood that at critical moments he needed to follow Keswick's strategic direction.
"Taipan, I completely understand and agree with your decision. Wharf Holdings importance to Hongkong Land goes without saying. I'll personally oversee the entire situation and make sure Pao Yue-kong doesn't get his way so easily," Barton replied solemnly, fully aware of the enormous responsibility resting on his shoulders.
"Very good, Mr. Barton. I'll remain here this afternoon and personally monitor the market. We won't just defend—we'll counterattack. Let's see what tricks Mr. Pao has up his sleeve."
A shadow flashed across Keswick's eyes, though it was overshadowed by the composure of a man preparing for a major battle of capital.
Against most rivals, Keswick and Barton would have remained relatively relaxed. After all, the combined strength of Jardine Matheson and Hongkong Land had few equals in Hong Kong's business world.
This time, however, they were facing none other than the world-renowned Shipping King, whose wealth, influence, and international reputation were in a league of their own.
More troublesome still was his close relationship with Hongkong and Shanghai Banking Corporation (HSBC). As a financial giant, HSBC's support for Pao Yue-kong was unwavering and immensely powerful.
That meant they would not merely be competing against Pao himself, but also against the formidable financial backing standing behind him.
Both Keswick and Barton understood that there could be no room for arrogance or complacency in this contest.
They had to proceed cautiously, plan meticulously, and prepare for every possible twist and challenge.
Only then could Jardine Matheson and Hongkong Land maximize their chances of victory in this fierce struggle for corporate control.
Besides the Pao family and the Jardine camp, another force reacted just as dramatically.
It was Hong Kong's vast army of retail investors.
After Pao Yue-kong publicly announced last time that he had no intention of increasing his holdings in Wharf Holdings, many retail investors mistakenly believed the market had turned against the stock.
Panicking, they rushed to dump the Wharf Holdings shares they had bought at higher prices, causing the stock to plunge sharply from its previous highs.
It was yet another vivid demonstration of the stock market's ruthless herd mentality.
Retail investors—often mockingly referred to as "leeks," forever waiting to be harvested—tended to chase hot stocks after prices had already climbed, hoping to profit from the market's momentum.
However, after Wharf Holdings share price remained quiet for some time before beginning to rebound steadily, only a handful of sharp-eyed investors sensed that the tide might be turning.
Most remained haunted by their previous losses, fearing they would once again become victims of the market, and therefore hesitated to reenter.
But this morning, Wharf Holdings trading volume suddenly exploded, sending the stock price soaring.
That surge completely ignited retail investors' enthusiasm.
Unable to suppress their excitement any longer, they eagerly prepared to flood into the market, hoping to be among the first to profit from what appeared to be a once-in-a-lifetime opportunity.
It was yet another perfect illustration of how greed and fear constantly wrestled within human nature.
Meanwhile, numerous market operators and professional speculators who specialized in buying low and selling high also turned their attention toward Wharf Holdings.
These investors controlled enormous pools of capital.
They were flexible, disciplined, and far less influenced by public sentiment than ordinary investors. In some cases, they could even influence the movement of individual stocks through their own trading activity.
Unlike retail investors, they did not react to Wharf Holdings sudden surge in trading volume with confusion.
Instead, their experience immediately told them that something much bigger might be happening beneath the surface.
Perhaps another corporate takeover battle was about to erupt.
Such speculation was hardly baseless.
It stemmed from careful analysis of market trends, company fundamentals, and the flow of institutional capital.
To these seasoned operators, Wharf Holdings sudden abnormal activity represented an extraordinary opportunity.
They quickly began adjusting their positions and preparing to capitalize on the impending feast of capital, hoping to reap enormous profits.
At this moment, however, Lin Haoran remained completely unaware of the enormous stir his team had caused.
To him, the morning's trading had merely been a tentative probe—a light test of the waters.
His team hadn't even begun their full-scale offensive to drive Wharf Holdings share price upward.
Yet their limited actions had already sent shockwaves through the entire market, attracting the attention of every major player.
Had Lin Haoran known this, he would have been delighted.
After all, this was exactly the situation he had hoped to create.
In his eyes, the market's intense reaction not only validated the effectiveness of their strategy but also paved the way for everything that would follow.
He understood that in this invisible war, every move mattered.
The growing attention from so many different forces had bought him precious time and space to prepare an even grander strategy.
At exactly one o'clock in the afternoon, as the stock market reopened after the lunch break, Su Zhixue's team sprang into action like arrows released from their bows.
Having received clear authorization from his boss, the first step of their plan was simple:
Sweep up every available Wharf Holdings share priced below HK$30.
Based on the order book before the lunch break, there were estimated to be more than 60,000 shares offered below that price.
Based on past experience, Su Zhixue believed that moving decisively would catch competitors off guard, allowing the team to absorb a large number of bargain-priced shares.
However, the outcome caught everyone completely by surprise.
Despite giving it everything they had, the team managed to purchase only 26,000 shares—less than half of what they had expected.
Even more astonishing, as they executed their orders, the stock price surged rapidly, smashing through the HK$30 mark and racing straight to HK$31 per share.
Frowning deeply at the unexpected market behavior, Su Zhixue turned toward Lin Haoran.
"Mr. Lin... something's wrong with this market.
"The trading volume is far beyond anything we anticipated. The market's reaction is much stronger than we expected.
"We haven't even begun our full-scale offensive, yet the stock price is already surging on its own."
"Immediately," Lin Haoran ordered without hesitation, "buy every sell order priced below HK$35. Absorb them all!"
(End of Chapter)
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