novelbin The announcement of Chapter 80 caused an uproar.
The announcement of Chapter 80 caused an uproar.
One week later, DeepBlue Technology.
In the morning, in Lin Chuan's office, he looked at Jiang Miaolan, who was there, and said, "Let's settle the 6.2 million yuan for the land acquisition first."
Jiang Miaolan nodded: "Understood."
Just then, a knock sounded on the door.
"Come in."
The two looked toward the door at the sound, and Shen Yuxin pushed the door open and came in.
"Senior brother, you were looking for me? Sister Lan."
When no one else is around, she likes to call Lin Chuan "Senior Brother," but when there are other people around, she calls him "President Lin."
Lin Chuan saw that the person who came in was Shen Yuxin, and immediately looked away and took out a document from the folder on his desk.
Lin Chuan handed it to Shen Yuxin, looked at her, and instructed, "This is the tender document for the new headquarters project. Take it and publish it."
Shen Yuxin took the materials and nodded: "Okay."
……
Around 11 o'clock in the morning.
DeepBlue Technology released two major announcements, one published on the company's official website and the other pushed through a financial news platform.
The title of the first announcement is: "Announcement from DeepBlue Technology Regarding the Investment and Construction of a New Headquarters".
To meet the company's long-term development strategy needs and enhance its brand image and overall competitiveness, DeepBlue Technology plans to invest RMB 80 billion to build a new company headquarters in the Chengdong New District of Xin'an City.
The new headquarters will integrate functions such as office, R&D, production, exhibition, conference, and employee living facilities.
The project funds come from the company's own funds and equity financing.
This proposal has been reviewed and approved by the company's board of directors.
---
The title of the second announcement is: "Public Tender Announcement for the Construction Project of DeepBlue Technology's New Headquarters"
DeepBlue Technology is now publicly tendering for the construction project of its new headquarters.
The scope of the tender includes: full-process design services such as architectural design, structural design, landscape design, and interior design; as well as general contracting for construction projects such as civil engineering, installation engineering, and decoration and renovation engineering.
The total investment for the project is estimated at 80 billion yuan, of which the construction and installation costs are approximately 55 billion yuan.
Bidders should possess the relevant qualifications and experience. The deadline for submitting bids is September 30, 2012.
---
Less than ten minutes after the announcement was released, major financial news platforms pushed out breaking news.
At approximately 11:12 AM, DeepBlue Technology's stock price suddenly plummeted, with a large-scale exodus of funds.
Large sell orders were being dumped one after another.
第一笔1.2万手大单砸在17.80元价位，第二笔2.3万手砸在17.70元价位，第三笔超过3万手砸在了17.50元价位……
The buy orders at the top of the price list were like paper, being broken down layer by layer.
17.42, 17.21, 16.90, 16.53...
The stock price plummeted at an almost vertical angle.
Finally, at 11:15, DeepBlue Technology's stock price touched 15.69 yuan, a drop of -9.98%, hitting the daily limit down. The sell orders quickly piled up from tens of thousands of lots to hundreds of thousands of lots.
The stock forum of DeepBlue Technology has exploded.
[Are all the people dumping shares idiots? It was about to break 18.26 and hit a new high, then suddenly it plummeted to the daily limit down?]
[Run! A major negative event is coming!]
[What bad news? What the heck?]
[See the announcement for details; DeepBlue Technology is going to invest 80 billion yuan to build a new headquarters.]
[What?! Is this insane? Tencent's headquarters budget is only 20 billion yuan, what are they doing?]
[This is outrageous! They're spending 80 billion yuan to build a new headquarters in the far eastern suburbs of Xin'an City. I looked it up online, and the whole area is just wasteland; there isn't even a decent road.]
[This is very abnormal, absolutely abnormal; a normal person wouldn't do this.]
[Yes, I strongly suspect there's some kind of illicit transfer of benefits involved, and I recommend a thorough investigation.]
[Damn it, I bought in today expecting a new high and the third wave of the main upward trend, and now I'm stuck at the top.]
……
The investors were stunned, especially those who bought in today.
Because the A-share market operates on a T+1 settlement mechanism, you cannot sell what you buy today; you must wait until the next trading day to sell.
When stock prices plummet, all you can do is stare helplessly.
Just five minutes ago, DeepBlue Technology's stock price showed a healthy intraday trend, with an increase of 2.7 percentage points, and the stock price had surged to 17.90 yuan.
It only needs to rise another 2 percentage points to break through and reach a new high from the high of 18.26 yuan.
But at this critical juncture, an announcement was released.
Clearly, the capital market interpreted this as a sudden and major negative event.
The company spent a staggering 80 billion yuan to build its new headquarters, a feat even the three internet giants BAT (Baidu, Alibaba, Tencent) couldn't match. Moreover, the location of the site was puzzling, and the investors seemed rather suspicious.
The funds chose to flee directly, and even several fund institutions that held shares before the backdoor listing could not hold on and chose to sell one-third of their positions.
A stock investor posted a candlestick chart on the DeepBlue Technology stock forum.
[A double top (M-shaped pattern) has formed.]
[The previous high was 18.26. Today, it failed to surpass that high and plummeted, hitting the daily limit down. It's a classic M-top pattern. Run for your money!]
[It's already hit the daily limit down; the doors are welded shut, no one's getting out.]
[Open the gate, let me out!]
[I heavily invested in DeepBlue Technology, and today I lost over 8 yuan in just one day. What happened?]
[Give me my money back, I'm not playing anymore (panda head.jpg)]
……
In the following two trading days, DeepBlue Technology's stock price continued to decline.
The next day, the market opened sharply lower by 5.23% and quickly fell to its daily limit down.
On the third day, it still opened sharply lower and hit the daily limit down.
The only consolation for investors is that it didn't hit the daily limit down, so they can sell the next day if they want to. However, cutting losses of more than ten percent is still extremely painful.
After three consecutive days of limit-down trading, DeepBlue Technology's stock price plummeted from a historical high of 18.26 yuan to 12.71 yuan.
Early investors saw their paper profits shrink significantly, while those who bought in at the peak are now stuck at the top.
A prominent financial commentator sharply criticized DeepBlue Technology, recommending a sell.
The reason is that DeepBlue Technology's decision to invest 80 billion yuan in its headquarters is incomprehensible, and the location selection is even more illogical.
The words imply that there's something wrong here.
However, some people remain optimistic about DeepBlue Technology. A private equity fund manager posted on Xueqiu (a Chinese investment platform):
DeepBlue Technology is not an ordinary listed company; they possess disruptive, monopolistic technology and have promising future prospects. While spending 80 billion yuan to build their headquarters may seem aggressive, in the long run, as the company's revenue and profits climb, it is not unacceptable.
This private equity fund manager is optimistic about DeepBlue Technology.
However, it also indicated that the company's stock price would face pressure in the short term, and advised investors to wait for signs of stabilization before taking small positions.
However, such optimistic voices were too few and were quickly drowned out by panic selling.
……
The following day, DeepBlue Technology.
In the chairman's office, Lin Chuan was sitting at his desk, leaning back in his chair and reviewing a preliminary engineering design plan for the new headquarters.
Just then, there was a knock on the door.
"Come in."
Shen Yuxin opened the door and walked in. She saw Lin Chuan at his desk and went over to him.
"Senior, seven investment institutions, including Jinsheng Capital, called urgently. They all expressed their opposition to using the funds raised to build a new headquarters. Even if a new headquarters is to be built, it should not exceed 15 billion yuan."
Shen Yuxin continued, "Furthermore, the board secretary, Zhang Weizhao, reported that some shareholders in the secondary market have called to inquire about the company's recent stock price hitting the daily limit down for three consecutive days, resulting in a market value loss of nearly 30 billion yuan. Has the company issued any response?"
Lin Chuan didn't look up, staring at the proposal materials in his hand.
He said calmly, "What's there to respond to? What needs to be disclosed has already been disclosed according to procedures, and it's all very clear in the announcement."
Lin Chuan moved the proposal materials aside and turned to look at Shen Yuxin.
Tell Zhang Weizhao to ignore it and not respond. If he's optimistic, hold on; if he's pessimistic, sell.
After pondering for a moment, Lin Chuan added, "Call back to the seven investment institutions and tell them my exact words. Say that since they've decided to invest in DeepBlue Technology, they have complete trust in them. If they hesitate..."
At this point, Lin Chuan looked at Shen Yuxin again.
"I can give them three more days to consider, give them one last chance to choose. If they want to withdraw their investment and jump ship, I will immediately return all the money and take back the shares."
"If you don't give me a reply within three days, I'll assume we're going by the terms of the agreement. From now on, I won't listen to them if they try to leave. As long as I haven't breached the agreement, they should all shut up."
Shen Yuxin nodded: "Okay."
……