April 13.
It was MaoLi Haruko's birthday, but for most people it was just another ordinary day.
For Hong Kong investors holding Hutchison Whampoa shares, however, it was a day of torment and pain.
Without warning, Hutchison's stock began falling immediately after the morning open. Heavy sell orders flooded the market, while buying power was too weak to support it. Not a single meaningful rebound appeared.
By yesterday's close, Hutchison had already dropped to HK$6.15 per share, with market capitalization under HK$2.5 billion.
This morning, when the price hit around HK$6, large amounts of bottom‑fishing capital entered, hoping for a rebound. But none came. Those buyers were trapped, becoming bag‑holders, as the price kept sliding.
Some of the earlier bargain hunters became helpers to the shorts, cutting losses and selling. Hong Kong's T+0 system allowed unlimited daily trades — buy and sell repeatedly.
Some investors cut losses, while others, too pained by the fall, held on, hoping for a rebound.
By the end of the morning session, Hutchison's price had fallen to HK$5.45, a drop of 11.38% in one morning, wiping out HK$280 million in market value. Total capitalization was now under HK$2.2 billion.
Such a sharp fall in one morning — nearly HK$300 million lost — made Hutchison impossible to ignore. Many couldn't understand why it had fallen so much.
Since Lin BaoCheng took control, Hutchison's stock had been declining steadily. Usually it fell one or two points a day, sometimes three. Not too serious — investors could chalk it up to market skepticism about Lin.
But today's drop of over 10% meant that since Lin's takeover, Hutchison's shares had fallen more than 20%. For such a large company, that was a massive decline.
In the afternoon, more bargain hunters entered. The price dipped slightly, then rebounded. Finally, a rally appeared.
HK$5.6… HK$5.7… climbing steadily, seemingly ready to break back to HK$6.
"I knew there'd be a rebound! See, I was right!" Chen BaoCai said proudly to his friend.
His friend gave him a thumbs‑up: "You're sharp as always, Bao‑ge!"
At noon, noticing Hutchison's plunge, Chen BaoCai judged it would rebound soon and decided to buy in.
A few months earlier, he had profited from Wharf stock. After the new year, with strong annual reports, the Hang Seng Index rose and most stocks climbed, earning him more.
Now his capital had grown to HK$120,000 — more than double from months before. Among retail investors, that was considered substantial.
In this era, most Hong Kong investors had only a few thousand HKD. Average monthly wages were just HK$500.
Someone asked: "Bao‑ge, it's rebounded over six points. Should we sell?"
"I only bought one‑third of my position. Unless it climbs back near yesterday's close, I won't sell. I'll hold longer, aiming for a bigger rebound. As for you, it depends on your positions and judgment," Chen replied honestly. He avoided giving firm advice — right answers earned thanks, wrong ones earned blame.
When the price hit HK$5.8, resistance appeared. Each 0.01 rise required multiple refreshes. Selling pressure was evident.
Though still rising, the momentum was gone.
Chen, having learned more recently, said: "This is a key level. If it breaks through, more gains ahead. If not, it'll correct."
Some investors cashed out. Others followed Chen, holding for a longer rebound.
After the afternoon open, the Qi family and Bob paused selling — dumping too hard had driven the price too low, hurting themselves. They still held plenty of shares.
But once the rebound passed HK$5.8, they resumed selling gradually, slowing the rise.
At HK$5.85, Bob's group increased sell orders, accelerating supply. The price quickly shifted to consolidation and decline. They couldn't allow it to rise further. A 10% rebound from the day's low would trigger heavy profit‑taking, which they refused to permit.
So, when Bob's group dumped heavily, the price collapsed again. Neither bargain hunters nor replenishing funds could absorb the supply. In less than ten minutes, the rebound was erased, and the price kept falling.
"How can this be? This is Hutchison — one of the old four trading houses! Falling this much is absurd!" Chen BaoCai exclaimed, baffled. Hutchison's performance last year had been strong. Only the controlling shareholder had changed. Even if investors doubted Lin BaoCheng, the stock shouldn't fall this much.
Chen began to suspect Hutchison faced some unknown, hidden disaster. Otherwise, how could a HK$20‑plus billion company fall so far?
As time passed, Hutchison failed to hold HK$5. Chen gritted his teeth and added HK$40,000 to his position, lowering his average cost to HK$5.23.
But the price didn't rebound. By the close, Hutchison ended at HK$4.73 — a 23.09% plunge in one day. Trading volume exceeded HK$500 million.
Clearly, with yesterday's market cap over HK$2.4 billion, today's massive turnover meant not only heavy selling but also significant buying. Otherwise, with such volume, a mere 23% drop would be mild — a full halving would have been normal.