Wall Street is bad… Goldman Sachs sells 7.5 trillion of Chinese stocks in Baidu Tencent

Wall Street’s movement in the New York Stock Exchange at the end of the first quarter of this year is not very serious. It was reported that Goldman Sachs, a large investment bank (IB), sold a total of $10.5 billion (about 11.88 trillion won) worth of stocks into cash through an over-the-counter transaction in the second half of last week. It was sold by Goldman Sachs according to customer orders and was made in the form of’block trades’. Amid speculation, Wall Street predicts that a hedge fund or family-owned investment paper company, which has been under funding pressure, has placed a sell order. However, a large number of large Chinese technology stocks such as Baidu, Tencent and VIP shops are included in the sale, and the stock price of Chinese companies listed on the New York Stock Exchange such as Alibaba and Netize plunged due to the conflict between the U.S. and China arising over the abuse of minority ethnic groups in Xinjiang in China. It is an atmosphere where’China Risk’ is re-emerging.

On the 27th (local time) Bloomberg said Goldman Sachs sold a total of $10.5 billion worth of stocks in the form of’block trade’ before the opening of the New York Stock Exchange on the 26th. It was reported that they were stocks of Chinese companies, such as’ Baidu and Tencent’ and’China’s largest direct shopping mall’ VIP shop. In addition, through the Goldman Sachs window, a total of $3.9 billion worth of shares were sold, including Aichii, a Chinese online education company, and GSX Techeo, and Viacom CBS, a US media company, and Discovery. In particular, IQi’s’accounting fraud suspicion’ has been exposed by US short-selling investors such as Wolffax Research and Muddy Waters.

Including this day, Goldman Sachs recently sold a total of 35 billion dollars worth of block trades, mainly for large US media and large Chinese technology stocks. Block trade is a transaction between the buyer and the seller who meets and negotiates separately without going through the stock market, and then makes a large sale and purchase.

Bloomberg quoted an anonymous official that most of the unlisted stocks previously managed by Morgan Stanley were sold by Goldman Sachs in the form of block trades on behalf of unknown shareholders. According to market data, it included large transactions worth over $1 billion per sale, which is estimated to have been privately owned stocks owned by small corporations.

In the market, predictions are circulating whether hedge funds or family-owned investment paper companies were forced to dispose of stocks in large numbers due to financial pressure. CNBC believes that Archigos Capital Management, which has generated tremendous leverage, has sold a lot of stocks to raise funds as it faces a margin call. IPO Edge quoted an anonymous official that large investment banks related to Archigos recently sold Viacom CBS and Discovery shares. Goldman Sachs, Morgan Stanley and Archigos have declined to comment on industry speculation and foreign reports.

Archigos is a family office investor founded by Bill Hwang, a former Tiger Asia hedge fund. With a lot of leverage, it has focused mainly on the telecommunications, media, and technology (TMT) fields. Family Office is an investment company in which an individual manages certain family assets. According to local media reports, Bill Hwang is a Korean investor who moved to Las Vegas in the United States following his parents of Korean evangelists as a child.

In the recent global financial market, hedge funds that took a short selling position in the New York Stock Market in late January to early February, which took a short selling position in the battle against short selling, highlighted mainly by’American video game company’ Game Stop and’largest movie theater chain’ AMC, have lost a lot. There has been an expectation that large-cap stocks that were held in order to make up for the wearer will be sold largely. In particular, the market volatility will increase around the 19th of the New York Stock Exchange’Four Witch’ Day (the day when the expiration dates of futures and options of individual stocks and indexes overlap). There is also an analysis that there will be balancing `(selling and selling assets such as stocks to adjust the proportion of the portfolio of assets under management on a quarterly basis). In addition, since the end of last month, as the US 10-year Treasury bond rate surged amid fears of a US economic recovery and an increase in expected inflation, stock price volatility, centered on technology stocks, has increased.

However, the market is paying attention to the variables of conflict between the US and China that further emerged at the end of this month. The US, European and Canadian governments jointly abused China’s Xinjiang Uighur ethnic minority on the 22nd after the Alaska talks on the 18th and 19th, when the first high-level meetings of the US and China were held since the inauguration of the US Joe Biden administration, leaving only “significant differences of opinion”. It started with sanctions on the person concerned. Major global apparel companies, such as Nike in the US, H&M in Sweden, Burberry in the UK, Zara in Spain, Muji in Japan and Uniqlo in Japan, directly or indirectly, a patriotic boycott in China for opposing the forced labor of Xinjiang Uyghur minority ethnic groups led by Chinese President Xi Jinping. Consumer boycott).

‘The largest consumer market’ In China, citizens are mobilized for patriotic boycotts through state-run enterprises and youth groups. While government media such as the World Times News, People’s Daily, CCTV, and other state-run media support Nike and H&M boycotts, the Communist Youth Group, a youth organization of the Chinese Communist Party, pointed and criticized Nike for criticizing the forced labor in Xinjiang by the Chinese authorities through a social network (SNS). They uploaded a shoe-type video of Nike’s sneakers on social media. In China’s largest online shopping malls such as Taobao and Jingdong, H&M products disappeared, and in some cities in Xinjiang, H&M stores posted an apology and closed on the 25th. Victoria, a native of Korean girl group F(X), said, “National interests are important” and declared that “all contracts with H&M have ended”. Tencent announced that it has removed the Burberry costumes worn by characters from its popular game,’Honour of Kings’. In addition, on the 19th that the U.S.-China Alaska talks ended without consensus, the Wall Street Journal (WSJ) reported that the Chinese authorities issued guidelines against state-owned enterprises and soldiers against the use of Tesla electric vehicles on the basis of concerns about information leakage. I prayed.

However, the risk is also increasing for Chinese companies that have entered the US. In January of this year, the New York Stock Exchange (NYSE) delisted three major Chinese telecommunications companies, including China Mobile, and state-run companies such as China Ocean Petroleum Corporation. This is in accordance with Donald Trump’s former government policy, which banned American investment in Chinese companies leading the way in information leakage, technology theft, and human rights infringement. China Mobile is preparing to list on the Shanghai Stock Exchange, saying, “We can never tolerate US action.” However, investment risks for Chinese companies, which are famous for their illegal practices, are still present. The Biden government also maintains a stance of Chinese checks.

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