Woes!Through the concept of stocks short Hong Kong stocks, and then short the Hang Seng index, Wall Street’s interlocking scheme

2022-08-06 0 By

As mentioned in the previous article, Wall Street Capital will start trading short stocks in February 2021, but that’s just the beginning.After all, there are only so many stocks in China, and their impact on Chinese companies is limited.But through the concept of stocks to further short Hong Kong stock listed companies, to short hang Seng index or even Hong Kong Dollar, this is the real intention of Wall Street capital.Some may call it sensational, but it is happening.Ever since Soros failed to short the Hang Seng index in 1998, Wall Street capital represented by Soros has never given up shorting the Hang Seng Index.Soros went on to make 200,000 short bets in 2019, but also lost that year.But since then they have not abandoned the goal of shorting the Hang Seng index.This time by shorting the United States stocks in the concept of stocks and thus implicated in the Hong Kong stock listed companies, so short the Hang Seng index, now see the effect is very obvious.Let’s compare the performance of the hang Seng index’s familiar components alibaba, JD.com, NetEase, Baidu and Bilibili in the U.S. stock market.As of February 2021, Alibaba has fallen from $319 to $120, JD.com from $108 to $71, NetEase from $133 to $100, Baidu from $354 to $154, and Bilibili from $157 to $32.Meanwhile in Hong Kong, Alibaba fell from HK $309 to HK $120, JD.com from HK $422 to HK $284, NetEase from HK $206 to HK $157, Baidu from HK $256 to HK $152 and Bilibili from HK $1,052 to HK $254.Due to the internationalization of Hong Kong stocks, the impact of American stocks is particularly large.The Chinese concept stocks, which fell sharply in the US stock market, are difficult to stay immune after the return to Hong Kong stock market and often choose to follow the trend of the US stock market.These return to the concept of shares in their own share price was brought down, while affecting the trend of the entire Hong Kong stocks.It follows a string of gains, and Tencent’s price-to-earnings ratio is clearly below its previous valuation.At the same time affected by this, Hong Kong stocks in the technology of Meituan, Kuaishou, Millet also fell.Finally, look at the Hang Seng Index, which has actually been rising in recent years.However, it began to fall from 31,183 in February 2021.Have found, the time is in fact and in the concept of stocks began to fall the same time.Since then, the Hang Seng index has fallen all the way to 23, 000.In the context of global monetary easing, the world’s major stock markets are actually rising in 2021, but Hong Kong stocks with a high degree of internationalization are in the opposite direction of the international overall trend.Among them, Chinese stocks, Hong Kong technology stocks and the Hang Seng index will follow the same trend after 2021.So after shorting us stocks, the next step is Hong Kong stocks and the Hang Seng index.The chain of events soon drove the Hang Seng down, maximizing returns by shorting the index.Wall Street can then turn around and buy these high-quality assets at bargain prices, and then earn excess returns.Financial giants such as Morgan Stanley and Goldman Sachs are doing just that, and have been seen buying shares in these firms.It was happening right in front of my eyes, and I could only watch it happen.