"What exactly does the Baoneng Group want to do by buying so many shares?"
As discussions among the broader investor community about the stock 'Kewan Real Estate' grew increasingly fervent in the market, Xu Qiao couldn't help but ask in the 'Modu Ultra-Short Gang' main speculative fund group, where Su Yi was a member.
"Has it been confirmed that the funds from 'Huayin Securities Shenzhen Branch' are indeed from the Baoneng Group?"
"It's pretty much confirmed,"
Old Zhang said.
"The Baoneng Group had previously acquired a significant stake in 'Kewan Real Estate', and now they continue to buy in large scale. Preliminary estimates suggest that the number of 'Kewan Real Estate' ordinary shares held by the Baoneng Group is likely already over 7%."
"The entire current management of 'Kewan Real Estate' Group, the actual controlling party, holds less than 15% of 'Kewan Real Estate' shares, right?"
Old Wu pondered for a moment and said,
"Given the Baoneng Group's continuous increase in holdings... could it be that they intend to launch a battle for control over 'Kewan Real Estate' Group?"
"It's not impossible!"
Brother Chen pondered for a while and said.
"If the Baoneng Group truly takes this step, it would also be a bitter fruit sown by the current management of 'Kewan Real Estate' themselves,"
Xu Qiao said.
"If not for the 'Kewan Real Estate' management continuously reducing their shareholdings over the years, deliberately suppressing the company's secondary market valuation, leading to a long-term sluggish stock price and dispersed equity, it wouldn't have attracted the Baoneng Group as a raider."
"Isn't the actual controlling party of 'Kewan Real Estate' the 'Huarui Group'?"
Old Zhang asked confusedly.
Old Wu replied,
"Theoretically, the actual controlling party is 'Huarui Group', but 'Huarui Group' does not participate in the internal operation and management of 'Kewan Real Estate' Group. Therefore, if the number of ordinary shares held by the Baoneng Group can exceed that of the current actual controlling party of 'Kewan Real Estate' management, it would be able to seize actual control of this hundred-billion-yuan real estate group."
"If it really develops this way..."
Xu Qiao chuckled,
"then there will truly be a good show to watch."
"Through preliminary prediction, the number of shares currently held by the Baoneng Group should not be far from the actual controlling party of 'Kewan Real Estate' Group's management,"
Brother Chen said.
"It has come to this point, I feel the Baoneng Group will definitely take a gamble."
"I have this feeling too,"
Old Wu said.
"Otherwise, there's no reason for the Baoneng Group to continue scrambling for shares on such a large scale, regardless of cost."
"With such a dispersed equity structure, back when the Baoneng Group, in response to the national call to rescue the market, made a large-scale stake acquisition in 'Kewan Real Estate', if you ask me... the management of 'Kewan Real Estate' Group should have been alarmed, unfortunately..."
Xu Qiao said,
"these guys ended up doing nothing."
"Isn't this just perfect?"
Old Zhang chuckled.
"Only with large speculative funds entering the market can the 'Kewan Real Estate' stock price rise!"
Old Wu thought for a moment and asked,
"If the Baoneng Group intends to target 'Kewan Real Estate', how many shares would they likely need to buy in the secondary market?"
"According to current market speculation, at least 5% or more, right?"
Brother Chen guessed.
"If at least 5%, based on the current market capitalization of 'Kewan Real Estate' stock..."
Xu Qiao said,
"does that mean the Baoneng Group will likely continue to buy approximately 10 billion yuan worth of shares in the secondary market?"
"It might be far more than 10 billion yuan,"
Brother Chen said.
"No matter how much, as long as the Baoneng Group keeps buying," Old Zhang said. "By following the trend and speculating on 'Kewan Real Estate' stock, there's a high probability of making money."
"If we also consider the expectation of a real estate industry recovery, it feels like doubling is possible,"
Xu Qiao said.
Brother Chen thought for a moment and responded,
"Let's take it one step at a time. Currently, everyone is just speculating. It's also possible that the Baoneng Group's funds intervened purely as an investment, simply recognizing the fundamental shift in the real estate industry and aiming to earn market profits through 'Kewan Real Estate' stock, right?"
"Feels unlikely,"
Old Wu said.
"If it were purely an investment strategy, the Baoneng Group wouldn't need to put all its funds into 'Kewan Real Estate' stock, would it? We all know that in investment, one must diversify risks and holdings.
With such a large amount of capital invested by the Baoneng Group, they couldn't possibly be unaware of this point. Therefore... comprehensively speaking, the Baoneng Group is definitely aiming to target 'Kewan Real Estate'."
Along with the rapid refresh of messages within the group and the update of numerous related news in the market.
On the trading boards of both markets, 'Kewan Real Estate' stock price continued to rise with surging volume, especially as more and more people began to perceive the Baoneng Group's motive for entering.
Other major funds gathering to follow the trend and go long on 'Kewan Real Estate' stock also grew in number.
Finally, at 2:17 PM.
'Kewan Real Estate', a core leading stock in the real estate sector, once again hit its daily price limit with a surging trading volume approaching 8 billion yuan.
The stock price again refreshed its intraday high and continued to create a new historical high.
And after 'Kewan Real Estate' stock hit its daily price limit.
The entire real estate sector, with weighted core stocks such as 'Poly Real Estate', 'China Merchants Shekou', 'Gemdale Group', and 'China Fortune Land Development', was once again comprehensively driven upwards.
At the same time, related sectors of the real estate industry chain, such as 'Construction Decoration', 'Building Materials', 'Steel', and 'Cement', along with their core concept stocks, were also fully propelled, showing a continuous rebound trend.
Finally, when 3 PM arrived and both markets officially closed.
The Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index all rose across the board, with the Shanghai Composite Index soaring by 1.43%, further approaching 3600 points.
And besides real estate, which continued its strong rebound, along with its entire 'Great Infrastructure' main theme sector.
Related sectors of the 'New Energy Industry Chain', their core concept stocks, and a host of previously popular "monster stocks" all showed extremely strong profit-making effects on the trading board.
Facing such a closing situation in both markets...
Most of the numerous investor groups in the market were quite excited.
Of course, amidst this excited mood, everyone's attention on 'Kewan Real Estate' stock also grew higher and higher, and discussions grew increasingly fervent.
Subsequently, amidst this fervent discussion.
At 5 PM, the Dragon and Tiger list for both markets was refreshed again.
'Kewan Real Estate' was still on the list, and the 'Huayin Securities Shenzhen Branch' trading seat, which had made massive purchases on the board yesterday, also bought more than 500 million yuan worth of shares again, showing a trend of continued mindless accumulation at high levels and a frantic scramble for shares, further revealing its motive for large-scale buying of 'Kewan Real Estate' stock.
"Holy crap, another buying volume exceeding 500 million yuan."
After seeing the refreshed Dragon and Tiger list data for both markets, many people in the market exclaimed in surprise.
Among them, Zhou Yue, the trading team leader of the product trading department of 'Noah Real Estate Mixed Select Fund' at Modu Noah Capital Company, stared intently at the 'Huayin Securities Shenzhen Branch's' purchase amount of over 500 million yuan on the Dragon and Tiger list, and was even more visibly stunned.
"This is truly insane."
Hearing Zhou Yue's exclamation, fund manager Yu Zeming also couldn't help but exclaim,
"This fund from the Baoneng Group is going to forcefully ignite a shareholder war!"
"I have this feeling too,"
Zhou Yue said.
"The Baoneng Group's frantic buying pattern, its motive... can be said to be clearly revealed."
"It seems... the immortals are about to fight,"
Yu Zeming said.
"What should we do?"
Zhou Yue asked.
"Should we continue to increase our holdings and go long?"
Yu Zeming smiled and said,
"Then we definitely should continue to increase our holdings and go long. If we don't catch such a ride, wouldn't it be a waste of opportunity?"
"However, generally speaking, the shares currently held by the Baoneng Group are still quite far from challenging the management of 'Kewan Real Estate' Group, right?"
Zhou Yue said.
"Now that their motive is exposed, speculative funds in the market are bound to surge. In such a situation... if the Baoneng Group wants to acquire too many more shares, it probably won't be that easy. I feel our speculation might not necessarily come true."
"Who knows how many shares the Baoneng Group currently holds?"
Yu Zeming said.
"Everyone is just guessing right now. And I think if the Baoneng Group didn't have this motive and held significantly fewer shares... they wouldn't frantically buy up shares on the market in this manner."
Zhou Yue pondered for a moment and said,
"Your meaning... is that the shares held by the Baoneng Group are likely already close enough to challenge the current management of 'Kewan Real Estate' Group?"
Yu Zeming nodded and said,
"I believe so. Otherwise, this fund from the Baoneng Group would have no reason to expose its motive in advance."
"It seems... it truly is possible,"
Zhou Yue said after carefully thinking it over.
"In fact, even if the Baoneng Group didn't have the idea of targeting the control of 'Kewan Real Estate' Group,"
Yu Zeming said,
"purely analyzing from fundamentals, with the current gradual improvement in the real estate industry's fundamentals and the increasingly strong expectation of a real estate market boom, the significantly undervalued 'Kewan Real Estate' is also worth investing in."
Zhou Yue nodded and said,
"That's true. Purely looking at the fundamentals, the valuation of 'Kewan Real Estate' stock is indeed somewhat undervalued."
Just as the two were carefully discussing the Dragon and Tiger list data for both markets and the Baoneng Group's motive for frantically buying shares, and predicting the subsequent trend of 'Kewan Real Estate' stock.
Almost at the same time.
In the Shenzhen market, inside Rongke Investment Company, Yang Chenghao also received a call from a high-ranking leader at the Baoneng Group headquarters, asking him how much capital he had consumed, how many shares he had bought, and how far he was from the plan.
Yang Chenghao replied,
"We are still short of about 6 billion yuan worth of shares from the original plan."
"Okay, speed up,"
Dong Pingzhang, the group chairman's secretary on the other end of the phone, said.
"Now that your company's trading seat is exposed, it won't be as easy to acquire shares on the market later."
"We can make block trades at a premium,"
Yang Chenghao suggested.
"Will anyone sell?"
Dong Pingzhang asked.
Yang Chenghao said,
"I don't know, but this method is worth a try."
"Alright,"
Dong Pingzhang nodded.
"Proceed with your idea. It's still the same principle: as long as someone is willing to sell, don't worry too much about the cost."
"Okay,"
Yang Chenghao responded and then hung up the phone.
Immediately, he then posted an indicative buy order through the 'block trade' channel, using his own company's trading seat.
When his indicative buy order was posted.
Su Yi, who had been closely following the market movements of 'Kewan Real Estate' stock, instantly noticed.
"A 10% premium."
Seeing the indicative price posted by the other party, Su Yi smiled, then looked at his own 'Kewan Real Estate' holdings, which amounted to nearly 2.6 billion yuan, and had no intention of taking profit and selling at this time.
"It seems the Baoneng Group's motive has been completely revealed."
And just as he had mused...
In the evening, facing the market's exceptionally fervent discussion topics regarding 'Kewan Real Estate' stock, and widespread speculation about the 'Huayin Securities Shenzhen Branch' trading seat.
Accompanied by a letter of inquiry from the regulatory authorities, the Baoneng Group finally publicly admitted its motive for large-scale intervention in 'Kewan Real Estate' stock.
Thus, all at once...
The entire domestic capital investment circle, the real estate industry, and even the entire domestic business community were shaken.
First, 'Kewan Real Estate' management publicly stated that 'Kewan Real Estate' Group did not welcome 'barbarians', and believed that the Baoneng Group's large-scale targeting of 'Kewan Real Estate' stock violated market rules and normal business competition principles.
Then, the Baoneng Group publicly responded.
Stating that the funds it used were all compliant and legal.
Moreover, some time ago, the regulatory authorities explicitly encouraged insurance funds to increase their investment in the secondary market and to acquire stakes in high-quality listed companies.
In other words, all of the Baoneng Group's buying activities were in compliance with regulatory requirements.
Even though the current management of 'Kewan Real Estate' Group clearly stated they were unwelcome, they would not abandon their current behavior of continuing to increase their holdings.
As for the shareholding percentage it held, which threatened the current management's shareholding percentage.
The Baoneng Group also publicly stated.
If possible, it would, in accordance with relevant laws and regulations, propose to convene a general meeting of shareholders and change the actual controller of the company.
After the Baoneng Group's public response.
Without a doubt, public opinion in the market instantly exploded.
Many small and medium investors who were dissatisfied with the past practices of 'Kewan Real Estate' Group management generally sided with the Baoneng Group.
Meanwhile, in the business community, various startup founders and large institutional fund groups stated that 'barbarian invasion' indeed violated the principles of fair business competition, and generally sided with 'Kewan Real Estate' management.
But no matter how market opinion swayed.
With the Baoneng Group's large-scale targeted entry, which had already substantially threatened the current management's actual control over 'Kewan Real Estate' Group.
The actual controlling management of 'Kewan Real Estate' Group still started to panic.
Its management hastily submitted an application for a trading suspension to the exchange.
However, the exchange, in view of the company having no major event that could affect its operations, rejected the company management's application.
Consequently, under the guidance of exploding public opinion.
The next day, December 3rd, Thursday, 'Kewan Real Estate', despite the general market adjustment in both markets, continued to open high with surging volume and trend upwards.
The Baoneng Group desperately continued to frantically increase its holdings of 'Kewan Real Estate' shares, buying extensively on the market regardless of cost.
(End of Chapter)