Chapter 711 – Some laughs, other cries Part 1 of 2
Norio Ohga could not understand why Sony’s shares would dive so suddenly. There were no problems with the company’s operations, and PlayStation was selling very well. The reviews of PlayStation were excellent, and the sales of their discs, Walkman, CD players, etc. were also doing well. The artistes under their record labels did not have any negative news, and their concerts were sold out.
The share prices should continue to rise. Even if there were some fluctuations, it should not plunge this way. The US market was bullish, and there was no reason why the shares will drop by almost 5% within minutes after trading starts!
Norio Ohga looked at the transactions. There were multiple transactions of massive amount selling that was causing their share prices to drop.
Who is dumping our shares? Those speculators? Was there someone targeting Sony?
Norio Ohga could not care less. He immediately calls the person-in-charge in the US.
“President, a large volume of shares are dumped by overseas investors. It’s not only our company. Toshiba, Sharp, Pioneer, and many other electronics companies, which was listed in the US stock exchange, were also affected. Everyone’s shares were dropping like crazy. It had even affected the US Technology Index!”
“Overseas investors? Do you know where they are from?”
“I am still investigating. But I can confirm that it should be from Asia.”
Asia? Who is it? Which company is doing this? The whole electronic companies’ shares are affected, and even the stock market Index is affected? This should not be speculators dumping their shares. This should be planned some time ago!
But why are these people dumping all at once? They should be selling the shares batches by batches. They will also suffer losses if they dumped all their shares at once. Why are they not afraid of suffering losses?
Norio Ohga still had not hung up his handphone when his home phone rang. His wife immediately passed the phone to him. Norio Ohga said spoke a few words on the phone and then hang up.
“I am going back to the company and will not be back tonight.”
……
Toshiba’s President was sleeping when he was woken up by someone. He was pissed. It was late at night, and he still needed to work the next day.
“President, our company’s shares plunged suddenly!”
“What did you say? What happened? How much did it drop?” Toshiba’s President immediately wakes up. How come his company’s share prices suddenly dropped? The electronics industry was doing well. This should not be happening.
“It had dropped by 8%. No, it’s 10% now!” Their share prices dropped by 10% during the call.
“Why is this happening? Is there any negative news about our company?”
“No. Everything is normal at our company, and there is no negative news about us in the US. I am not sure about Europe side, I had called out headquarters, and nothing happened.”
“That means someone is manipulating our share prices?” He was furious and shocked at the same time. Toshiba was a big Multi National Company, and it’s worth more than a billion USD. If anyone wants to manipulate their share prices, the funds needed will not be a small amount. No one should have the financial power to do this unless it was a group!
He immediately got out of bed and called for a directors’ meeting. They must think of a solution before Tokyo Stock Exchange starts trading in the morning. They cannot afford their shares in Japan to plunge!
If their share prices dropped like last year again, then it might be his last day as the company’s President. He also owns quite a number of the company’s shares. He will also suffer massive losses!
This night was not quiet for many Japanese MNCs.
Everyone does not know what happened to their company. Why were people dumping their company’s shares? The share prices of these companies were dropping like crazy. They noticed they were not the only company that was affected. Many Japanese electronic companies’ share prices were also falling. The average drop for the companies was about 10%.
The whole electronics industry shares were falling, and even the stock index fell because of their shares. The US market was supposed to be bullish, and share prices had been rising recently. How come the market crashed today?
At this moment, many people start to buy in the shares of these companies at low prices, and the shares begin to rise slightly. Among these people, some were companies.
If someone was targeting one electronic company, it might be possible. But who was so powerful to target so many companies at once?
Everyone was trying to find out and started to contact each other. They must stabilize their share prices first. The Prime Minister of Japan also heard about what happened. If the stock market crash again, then Japan’s economy would suffer again. He will also suffer another blow.
The next day, all the Japan Electronic companies, including the government, start to announce all sorts of good news, hoping to stabilize their stock market. But after last night, many investors do not believe them. When trading starts in Tokyo, their share prices start to drop.
Some Hong Kong tycoons who had bought those Electronic companies’ shares were celebrating with champagne. Some of them had made a killing, and some made lesser. But overall, everyone made money.
This operation to make a killing in the US stock market was a success. Only some regretted. If they knew this would happen, they would have invested more. The returns were so much higher than their business. No wonder Fu Rongqi focuses on the financial market. The financial market was profitable!
The tycoons were waiting for tonight to sell off their chemical companies’ shares. They had planned for another celebration tomorrow. Just nice, it will be Fu Rongqi’s birthday in a few days. This year, everyone will be celebrating his birthday with him. He was the reason why all of them were able to make a killing.
But Fu Rongqi was not in a good mood. These people do not know about the financial market. How can they dump their shares like this? If they listened to him and sell off their shares bit by bit, everyone would earn more. But these people did not listen to him. If it wasn’t for someone buying in those shares at low prices, all of them might not be able to dump their shares!
When the Tokyo stock market close, Norio Ohga and the rest were looking pale. They were unable to stabilize their share prices, and there was panic selling, which caused their shares to drop further.
“Norio Ohga, you better explain to us why are our shares dropping like this?” The director who had praised Norio Ohga yesterday questioned him.
“Someone is targeting us and the whole Japanese electronics industry, especially the companies that were affected by that incident in China. We had investigated and those people who dumped our shares, are from Hong Kong!” Norio Ohga raised his voice.
Those people did not try to conceal their identities. They had worked together to buy their shares and push up the share prices before exiting the market together. This caused their stocks to plunge. Those people were treating their companies like ATMs.
“Hong Kong? Why are they targeting us? Are there any electronic companies in Hong Kong? There are also no Japanese companies that caused trouble in Hong Kong. Why are they doing this?”
Norio Ohga looked at that director. Are you an idiot? You don’t know the root cause of the problem?
“It is because of profits. They predicted our share prices will rise and all of them bought our shares in large volume and cause our share prices to rise sharply. Now, they felt it had reached the price they wanted and start to dump our shares. Does everyone still remember when our share prices plunged last year? We did not do much, and our share prices recovered. That was the time when these people bought in our shares.”
“This is very critical. How come you did not notice back then? You even tell us to increase our stakes? Now our shares plunge again. How are you going to answer to us?”
Norio Ohga was also furious. These directors will claim it was everyone’s efforts when they make money. But when they suffered losses, it would be his fault. I give up on this damn position! I do not want to hold on to this Acting President position anymore!
“I have nothing to say. If all of you thinks that there is someone more suitable than me to be the Acting President, tell me. I will step down!”