Resurrection Empire

Chapter 748 283: Spending a Hundred Billion on Air【5000 Words】

The truly top-tier tactics can turn an enemy's reliance into a fatal flaw.

In the negotiations, Wang Dingyuan brought out the backing behind him, trying to force Ren Zhong to recognize reality and make concessions.

However, Wang Dingyuan underestimated Ren Zhong.

As a seasoned stock market expert, how could Ren Zhong possibly miss out on the stock market, a financial tool adept at both offense and defense?

He can not only use the stock market to launch an attack on Chongyi Wang Family, but he also knows how to effectively use the stock market as an excellent intelligence tool.

Ren Zhong had already researched the shareholding structure of Tianyuan Military Industry.

He was just as clear as Wang Dingyuan about the matter Wang Dingyuan mentioned.

The most recent disclosure from half a month ago showed that in the shareholding structure of Tianyuan Military Industry, the exact shareholding of Chongyi Wang Family was 75.64%.

The "big figures" Wang Jinsou mentioned were approximately Eight Major Institutions or eight forces with a total shareholding of 21.11%.

The remaining scattered shares were divided among more than a hundred thousand individual retail investors.

The holdings of those Eight Major Institutions seemed insignificant, mere drops in the ocean, totaling less than 200 billion.

But this doesn't mean the Eight Major Institutions are poor; Tianyuan Military Industry was merely one of the thousands of enterprises they held shares in.

Additionally, Ren Zhong also discovered that about one-third of the Wang Family's 75.64% share was pledged.

It seems that over the years, the Wang Family had burned massive resources into undisclosed laboratories, leading to insufficient cash flow, forcing them to pledge shares to Alson Bank for low-interest loans, to continue supporting the secret labs and sustain family operations, while also expanding into other industrial fields.

Not everyone can turn the stock market into a money-printing machine like Ren Zhong.

The asset structure of these long-standing enterprises is far more complex than that of Ren's Group.

Though Chongyi Wang Family appears large and prosperous, their cash flow might not be as abundant as Ren Zhong's.

The condition of the 21.11% shares held by the Eight Major Institutions was even more exaggerated, with a pledge ratio of more than ninety percent.

The stock market is inherently a financial game of money making more money.

For those professional financial institutions serving big figures, leaving money in a fixed position without generating more profit is practically a crime.

Given the stability of Source Star's social structure and the existence of such a financial behemoth as Alson Bank, the Eight Major Institutions, expert manipulators of the market, can ensure winning odds and thus have to convert dormant money into active funds, continually making money to achieve more excess profits.

What Ren Zhong has set his sights on is the pledged shares of the Wang Family and the Eight Major Institutions.

Where there is a pledge, there is always the risk of forced liquidation.

Pledged shares are equally subject to price fluctuations.

According to pledge contracts, banks usually have stock price requirements for pledged shares, stipulating that it cannot fall below a certain threshold.

This threshold is referred to as the pledge margin call line.

Once a company's stock price continues to fall, exceeding the pledge margin call line, the bank will immediately initiate forced liquidation as per the contract, swiftly selling the pledged equity to cash out, achieving timely account recovery, and avoiding losses.

Simultaneously, forced liquidation often results in another wave of sharp declines.

Neither Wang Dingyuan nor those Eight Major Institutions would want to bear the consequences of a stock price crash.

On the surface, even if Tianyuan Military Industry's stock price goes to zero, it wouldn't significantly affect the company's operations, but these Eight Major Institutions, originally Wang Dingyuan's allies, would certainly band together to coerce Wang Dingyuan into saving the market.

At that time, Wang Dingyuan's allies would become Ren Zhong's "accomplices."

Attacking the stock price of Tianyuan Military Industry indeed shakes the foundation of Chongyi Wang Family.

...

As Ren Zhong's video was released, a new hotspot swiftly caught on.

While ordinary viewers may just watch for entertainment, the retail investors with a keen sense of smell and extremely emotional tendencies immediately detected the scent of blood in the air and began to vote with their feet.

Although the total shareholding proportion of retail investors was only 3.25%, seemingly insignificant.

But in some sense, the stock price is set by these retail investors with small holdings, numerous numbers, and frequent turnover rates.

In just three to four hours, the market price of Tianyuan Military Industry plummeted sharply, crashing by 7.8%, causing significant injury.

There were more exits than entries, offsetting supply and demand off track.

The turnover rate of the 3.25% shares held by all retail investors reached 80%.

Some of these shares even changed hands multiple times within a mere three hours.