After the afternoon market opened, Hutchison Whampoa's stock continued to rise.
By the close, Hutchison ended at HK$18.6, with a market capitalization of HK$7.44 billion.
At its peak, the price had broken HK$20, reaching HK$20.18 before pulling back slightly. The correction wasn't severe.
Such adjustments were normal. Last Friday Hutchison had closed at HK$3.02. Today it closed at HK$18.6 — a 515.9% increase. With such gains, profit‑taking was inevitable. The fact that the pullback wasn't sharp was already remarkable.
The next day, Tuesday, Hutchison surged again, closing at HK$23.57 — up 26.72%.
By Wednesday morning, the stock broke HK$25, and market capitalization officially surpassed HK$10 billion.
Lin BaoCheng held 49.9% of Hutchison — equivalent to HK$5 billion in wealth. But this was paper wealth. He wouldn't sell, and even if he did, unloading such a massive stake would crash the price. Realizing HK$5 billion was impossible.
At noon, Lin met Iwasaki FengLong at the Peninsula Hotel.
Iwasaki congratulated him: "Lin, congratulations! Hutchison broke HK$25, market cap HK$10 billion. Your fortune has soared."
"This is only paper wealth," Lin shook his head, not taking it too seriously.
"Even so, your wealth has grown," Iwasaki smiled.
"That's true," Lin admitted, then asked: "Iwasaki, tell me about the settlement price you negotiated with Niu BiJian."
Two days earlier, Niu had tried to negotiate, but no agreement was reached. Over the past two days, talks continued. Lin and Iwasaki had set a price range, leaving details to Iwasaki. He had just informed Lin that a deal was struck.
Iwasaki's expression turned serious but pleased: "Altogether 36.65 million shares. Settlement price HK$910 million — equivalent to HK$24.83 per share. That alone gives us HK$690 million profit."
"This result exceeded my expectations," Lin said with joy. He hadn't imagined Hutchison's stock would rise so high, yielding huge profits in both options and equities. Though half went to Iwasaki, he had no choice — without funds, he needed a partner.
Iwasaki continued: "For the remaining shorts, I'll sell above HK$25 strike. If not, we'll hold until settlement day."
"Handle it as you see fit," Lin nodded. The remaining HK$140 million shorts had cost only HK$4.2 per share. Even selling at HK$25 would yield HK$830–840 million, about HK$700 million profit.
Together, the options market alone would give them HK$1.4 billion profit — at least USD 150 million each.
Lin added: "As for stock, when will you start selling? I've already instructed gradual sales of part of Hutchison's buyback shares."
The HK$100 million buyback had secured 27 million shares. Lin planned to keep 10 million for management incentives, and sell the rest once the price broke HK$20, to recover funds.
The 10 million shares would be distributed gradually, based on performance, lasting years.
Similarly, the HK$100 million pooled from Galaxy Games and other companies had bought 27.8 million shares. Lin also ordered gradual sales above HK$20, since those funds were needed for other industries.
Iwasaki said: "We hold 55 million shares. Not small. I expect Hutchison will break HK$30 soon. I plan to sell then. What do you think?"
Lin worried: "I fear at HK$30 upward momentum may stall. With so many shares, selling could drag the price down."
Iwasaki replied: "Once all option longs are settled, even after taxes, we'll recover USD 200 million. So stocks are essentially cost‑free. If necessary, we can hold longer."
He asked: "Lin, will you truly not sell your stake? And do you think Hutchison's earnings can support HK$20 per share this year?"
"I won't sell a single share in the next two years. That's not a bluff," Lin affirmed. "As for earnings, I can't promise too much, but I guarantee Hutchison's performance can support HK$50 per share within two years — maybe higher."
He wasn't exaggerating. By early 1980, with gold futures long positions, Hutchison's profits would exceed HK$5 billion. Combined with property recovery and rising real estate prices, HK$20 billion market cap was achievable.
"I believe you," Iwasaki said, surprised by Lin's confidence but reassured. "We'll sell above HK$30. If it falls, as long as it stays above HK$25, we'll sell. If lower, we'll hold."
"As long as you don't mind slower cash recovery," Lin agreed. Either way, they would profit massively.
That afternoon, the options market saw HK$455 million worth of settlements. This was the half agreed between Niu and Iwasaki. The rest would be settled next week, giving Niu's group time to raise funds.
Iwasaki didn't object. Even if they reneged, they'd still owe shares at settlement.
Niu's group wouldn't renege unless Hutchison collapsed below HK$20. Otherwise, repaying in shares was pointless — they'd have to buy heavily, driving the price higher, raising costs.
In fact, they were already buying, even after returning borrowed shares. They were now speculating long, hoping to recoup some losses.