As expected, during the morning auction session, a flood of Hutchison Whampoa shares were sold, with very few buyers. The stock opened at HK$4.21.
Yesterday's close had been HK$4.73. Opening at HK$4.21 meant an immediate drop of about 11%.
This was only because trades were still manually recorded in that era. In the internet age, with computers and phones, under such negative news and panic, the opening drop would have been far worse.
With many shareholders still queued to sell, once formal trading began, the price plunged further.
Within three minutes of the open, Hutchison's price fell below HK$4. Trading volume was thin — few buyers, a near "volume‑less" decline.
But once below HK$4, trading picked up. Some funds began buying — Lin BaoCheng's, HSBC's, Lin's partnership with Iwasaki FengLong, and bold bargain hunters.
Still, selling outweighed buying, so the price kept falling, though less sharply.
In the options market, longs had vanished. Puts flooded in, mostly from institutions and retail, not Li JiaCheng's group.
Iwasaki had his traders absorb the puts, planning later to issue higher‑strike calls to lure counterparties.
By 10:30 a.m., Hutchison hit HK$3 — a 36.58% drop. In just two days, the stock had halved.
But at HK$3, it stopped falling. Lin and others kept buying. Many investors refused to sell at such lows. Even the Qi family and Bob held off, hoping for a rebound before unloading.
With multiple forces aligned, the stock rebounded.
Yet this was a rebound after a crash, under heavy negative news. The rise was slow. Many shareholders sold into the bounce, adding pressure.
Fortunately, Lin and allies weren't trying to push the price up — they were accumulating. Slow buying suited them.
By HK$3.5, the rebound was over 15%. Selling increased again, but Lin's side absorbed it, gradually lifting the price.
At 11 a.m., Hutchison held a press conference. Lin and Wei Li attended.
The company declared operations normal, denounced outside reports as false, and announced a HK$100 million share buyback.
Lin also revealed he held 49.9% of Hutchison shares, pledged not to reduce his stake, and urged investors to trust him and the company's future.
Then came Q&A.
Asked if the gold futures investment had lost money, Lin replied it was confidential, no comment for now. But for shareholders' sake, the company would release first‑quarter results early, next week.
Expressing confidence while refusing to deny losses looked evasive — a cover‑up. Lin couldn't reveal the truth, nor falsely admit losses. So he stalled with "no comment" and promised reports later.
Other questions he answered where possible, or brushed off.
Even before the press conference ended, word reached the exchange.
Most saw Lin's answers as indirect admission — bad news confirmed. Yet the buyback and his pledge not to sell were positives.
With two positives against one negative, plus Lin's buying, the stock rebounded faster, breaking HK$4 and climbing.
Li JiaCheng's group had shorted with real money. They couldn't allow the price to rise.
At HK$4.2, Bob dumped shares. But Lin's side absorbed them all, preventing a drop.
At HK$4.5, the Qi family sold heavily. They hadn't shorted, but with bad news, they wanted to exit at high prices.
They held large amounts. Combined with profit‑takers, selling surged. Few investors held on.
Lin's side kept buying, but selling was stronger. The price fell again — not a cliff‑drop, but steady.
By the end of the morning session, Hutchison closed at HK$4.08. Not bad — only HK$0.13 below the open, a 13.74% morning loss.
At noon, news of the press conference spread. Reports highlighted Hutchison's recent plunge and Lin's heavy losses. Holding half the company, his fortune had shrunk by billions.
Readers buzzed. Many speculated the young tycoon who rose last year might lose everything this year, returning to ordinary life.
A legend born, a legend fallen — the public relished it.
Lin had become a billionaire at a young age. Admiration was mixed with envy. When he prospered, few spoke ill. Now, with trouble, critics emerged.
But Lin didn't care. Whatever Hong Kong citizens thought never reached him.