The next day, Saturday, July 12th.

Wang Guanxi was having fried noodles at noon.

The latest current affairs news is here.

Bloomberg Information: Aig Group has suffered huge losses!

American International Group (aegal     aig).

aig is a world-renowned insurance group company and the largest insurance group in the world, a diversified investment group, with assets of 1105.3 billion US dollars!

Assets exceed 1 trillion US dollars, what does this mean?

HK$7.75 trillion!

How terrifying.

Like Fidelity Investment Group (fmr     llc), which has $2 trillion assets, it is also a giant!

aig Group owns two very famous insurance companies, Meiya Insurance and AIA Insurance!

The history of aig group can be traced back to 1919, when Dutch-American Shide established an insurance agency in Luzhou, China, Meiya Insurance, to provide customers with fire insurance, water insurance and other protections.

Two years later, Shide established AIA Life Insurance Company, becoming the first foreign company to provide life insurance products and services to Chinese people. This is the person who created the Chinese insurance industry.

In just a few years, Shide expanded his career to many regions in China and Southeast Asia.

However, due to the outbreak of the war, Shi De moved the company's headquarters from Lu City to the United States, and then withdrew his insurance business in the mainland, and reopened his insurance business in Lu City in 1992.

Aig is now a giant enterprise, and its subsidiary, AIA and AIA are the two most profitable giant insurance companies.

Mainland customers are familiar with them. Many employees of state-owned and private enterprises have bought insurance from this insurance company.

However, this year is the year of disaster for Aig Group, and the entire subprime mortgage crisis almost destroyed it. The financial tsunami that broke out in September 2008 left Aig deep in the quagmire. In the fourth quarter of 2008, it lost $61.7 billion!

Received bailouts, but in order to repay the US government's $180 billion debt, it sold a large amount of assets, and AIA will also be sold in the future. This AIA will have a market value of HK$1 trillion!

It is July now, and there have been reports of bad news for Aig Group.

Of the $38 billion project that the USD 38 billion is reduced, $20 billion comes from credit default swap contracts. $18 billion comes from mortgage loans and asset-secured securities, including subprime mortgages.

"Aig Group eventually survived by selling huge assets to pay off its debts, while another super investment bank, Lehman Brothers, went bankrupt, with a total debt of US$613 billion, becoming the trigger point of the financial tsunami."

"The financial tsunami is not far away!"

Wang Guanxi then turned on the computer and checked the public balance sheet of the listed company Aig.

The quarterly statement in June 2008 showed that there were US$1049.8 billion, but it should be noted that many of these assets are subprime mortgage claims or bad debts of subprime mortgage derivatives, so the numbers are just numbers. You have to wait until the financial tsunami comes out before you know how much losses are!

Wang Guanxi plans to short the shares of Aig, but his own funds will short the Hang Seng Index, so he has to use the funds from Catal Auto Insurance to short the shares.

However, the funds for Catalan Auto Insurance are limited, so it cannot mobilize much funds.

Although Catalan Auto Insurance has a assets of 550 million, the insurance company has regulations that it cannot use all its funds!

The use of funds of insurance companies is limited to the following forms:

1 Bank deposit;

2   Buy and sell bonds, stocks, securities investment fund shares and other securities;

3    Invest in real estate;

4     Other forms of use of funds stipulated by the government.

Let me give you a simple Liezi, a mainland insurance company, stipulates that the funds for investing in stocks and securities are limited to less than 30%.

Hong Kong is a little different.

The provisions need to be prepared, which means that the value of an insurance company's assets must exceed a specified amount of its liabilities. For general insurance business, the provisions are the insurance company's premium income or higher amounts in the liabilities in the previous fiscal year. The part of the amount within HK$200 million is calculated at one fifth of its payment, while the part below HK$200 million is calculated at another tenth of its payment. The minimum amount of the provisions is HK$10 million.

To put it more specifically, Catalan Auto Insurance has a debt of HK$500 million to insurance customers, so Catalan Auto Insurance requires a minimum payment reserve of HK$50 million to compensate for insurance accidents that occur at any time.

Of course, this 50 million Hong Kong dollars is only a theoretical amount. In actual circumstances, Catalan Auto Insurance needs to prepare more compensation reserves to deal with insurance accidents that occur at any time, and the supervision of the China Securities Regulatory Commission.

But just prepare the repayment reserve of HK$200 million, and take the rest to do it!

"Insurance companies have the most cash. Before the global financial tsunami, I have to acquire several more insurance companies, and then there will be more funds to use."

"It would be absolutely great to mobilize 2 billion yuan to short Aig Group's stocks."

"I remember Aig's stock price fell from more than 400 US dollars per share, and fell below 30 US dollars per share, and then the following days continued to fall, falling to below 6 US dollars per share. The market value loss was extremely heavy, and the former financial empire collapsed at any time."

Although Wang Guanxi's cash is only 200 million yuan now, he has already stared at this huge aig, and said that he has to bite two pieces of meat from it.

Aig Group is like a scarred elephant, vulture in the sky, carnivore on the ground, and blood-sucking bugs circling around it. Not far away, there are tigers, wealthy wolves, hunting dogs, and leopards staring at it. Once it fails, everyone will pounce on it and bite it.

Aig's losses were just beginning. When the global financial tsunami came, it was a behemoth with the worst assets shrinking and the worst losses.

In order to save its life, it will crazily sell its securities assets and sell stocks, bonds, houses, various canteen assets and financial assets in a short period of time. It can be imagined how bad the stocks it sells will fall and how panic the market will be!

And it is not just a crazy sell of assets, but there are many such financial institutions around the world.

"AI Insurance, a subsidiary of aig Group, is mainly engaged in Asia. I don't know how many Hong Kong assets it holds. It is unimaginable to sell it when the time comes."

··

At this moment, AIA, a subsidiary of American International Group, has just experienced a temporary high-level meeting.

The meeting discussed selling certain Asian assets to alleviate the financial pressure on parent company Aig.

AIA and Meiya Insurance are both two tiger generals under Aig Group, and the two insurance companies that make the most money.

This time, the parent company gave instructions to collect some capital turnover, about HK$10 billion, of which HK$5 billion will be issued by AIA.

AIA's Chief Financial Officer: john    barrie   harrison

John Barry Harrison, referred to as Harrison.

He came to the office.

Several assistants followed.

I opened the trend charts of each stock and glanced over it at a glance.

Recently, Sinopec, CNOOC and CNPC have all been falling, while AIA holds a lot of stocks but sells them.

Then Harrison ordered: "Selling some Sinopec, CNOOC, CNPC and CCB stocks will start next Monday, and cashing out HK$5 billion in cash."

"Yes, Mr. Harrison"

At this time, the assistant suggested: "Mr. Harrison, the stock of China Resources Beer Group has risen a lot recently. Are we selling its shares so that we may be able to cash out more cash."

"Let me take a look first." Harrison opened the stock of China Resources Beer. Recently, China Resources Beer's stock is very strong and the stock price is at a very high position. He is very happy.

Then he ordered: "Then let's cash out all the shares of China Resources Beer, Sinopec, and China Construction Bank."

"Yes, Mr. Harrison" the assistant nodded respectfully.

Harrison thought about it and notified the financial director of Meiya Insurance Company.

··

The next day, July 13, UA Insurance, Property Director, garth   jones.

Garth Jones.

He had just returned to Hong Kong from Lucheng City when he came to the company and held an extraordinary meeting.

Let their subordinates sell shares of China Resources Gas, ICBC, HSBC, and Standard Chartered Bank, and cash out HK$5 billion to ease the financial pressure of their parent company Aig Group.

It was soon Monday and the stock market opened.

AIA Insurance Company and Meiya Insurance Company have begun cashing out stocks.

Morning plate.

China Resources Beer and China Resources Gas stocks fell sharply, and ICBC, HSBC, Standard Chartered Bank, and Sinopec also fell a lot.

Wang Guanxi is happy.

Today, China Resources Beer's stock fell by 5 yuan, from 25.00 yuan per share to 20.00 yuan per share.
Chapter completed!