Break out of the courtyard

Chapter 840 Cashing Out Funds from Various Countries

Mr. Rong from CITIC, along with Zhang Heping, Chairman He, and others, arrived at a tea restaurant downstairs from the Peace Hotel in Hong Kong Island. As soon as they sat down, he asked directly, "Mr. Zhang, what do you think of Japan's investment of 500 trillion yen to bail out the market?"

The reason they rushed over so urgently is, frankly, to ask about this matter.

Although Zhang Heping said on the phone that he was still bearish on Japanese stocks, the news that Stepmother Investment Company withdrew 10 trillion yen cast a shadow on his words.

According to common sense, if Zhang Heping believed that Japanese stocks would continue to fall sharply, he should continue to use his financial advantage to short Japanese stocks!

Zhang Heping ordered a cup of black tea from the waiter next to him, then looked at Elder Rong and said, "A 500 trillion yen bailout is impossible just to think about!"

"If the Japanese were really that foolish as to issue an extra 500 trillion yen, Japan would lose its monetary sovereignty, the yen would be withdrawn from international settlement currencies, and become worthless."

"Therefore, to avoid this possibility, foreign investors should be rushing to sell yen and Japanese assets, but European and American funds bought Japanese stocks against the trend yesterday afternoon, which is illogical!"

"On the contrary, if the 500 trillion yen is fake, or if the total amount is real but the way and frequency of its investment in the Japanese stock market are different from what we think."

"So we need to be careful about what the Japanese and European and American capital are planning."

“I see!” Chairman Guo agreed, “The Japanese called in Euromag Capital, and their primary purpose was definitely to deal with us short-selling funds.”

"However, they did not expect that we would hold cash and wait and see yesterday, and in the afternoon we even turned into bulls and joined them in pushing up the Japanese stock market."

Zhang Heping looked at Chairman Guo, who was all smiles, guessing that he had bought a lot of Japanese stocks yesterday afternoon, and then reminded him: "If 500 trillion yen is not what we expect, what will be the first reaction of many people?"

After a moment of silence, Chairman He and Ship King Bao answered simultaneously:

"Cheated!"

"You've been scammed!"

Zhang Heping nodded and continued, "If we continue to short Japanese stocks, the Japanese people will unite against us, ignore the problems in the Ministry of Finance's 500 trillion yen bailout plan, and then turn their anger towards us."

"So, I first had my stepmother withdraw a sum of money from the investment, giving the outside world the impression that I was not going to continue shorting Japanese stocks, and then I waited to see how the Japanese would handle the situation."

Chairman He placed the green tea brought by the waiter in front of him and said, "If we don't confront the funds of Japan, Europe, and the United States head-on, they will lose their target."

"Based on the downgrade assessments of Japanese companies by various institutions, European and American funds may go long on Japanese stocks in the short term, but it certainly cannot last, because even they are not optimistic about the current management capabilities of Japanese companies."

"Otherwise, they wouldn't have joined us in shorting Japanese stocks!"

"Uncle!" Tang Qiang, the third nephew, called out. He then rushed to Zhang Heping's side, slightly out of breath, and said, "The Japanese stock market has started to fall again. Do you think it will rebound this afternoon like it did yesterday afternoon?"

Zhang Heping frowned, turned on his phone screen, glanced at the Japanese stock trading data on the Heping Financial software, and then said to Chairman He, Chairman Guo, and others:
“European and American magnesium funds are all operating independently. If the Japanese company does not continue to promise benefits, many European and American magnesium institutions will consider reducing their holdings and observing the situation.”

~
Japan Island, Tokyo Stock Exchange.

The short, thin minister of the Ministry of Cultural Exchange stood before the floor-to-ceiling windows of the VIP room on the third floor, looking down at the people below who didn't know how to use computers or mobile phones to trade stocks, and casually asked:

"Does Dalang think the Japanese stock market will rebound this afternoon?"

Taro Aso, who had been transferred to the Ministry of Foreign Affairs as Vice Minister, also stood by the window, looking down at the retail investors below. "It's hard to say, unless the Ministry of Finance can really come up with money to bail out the market."

"Before the Japanese stock market stabilizes, or before those people in the Ministry of Finance resign, the cabinet meeting will not approve them using money to bail out the market!" The short, thin old man sneered. "I will not let them redeem themselves through meritorious service!"

"If that's the case, those foreign investors will likely engage in pump-and-dump operations this afternoon," Vice Minister Aso said seriously. "After all, they're not stupid; why would they be foolish enough to bail out the Japanese stock market?"

The short, thin old man from the Cultural Exchange Department nodded and said, "If you can understand this, I won't test you anymore."

"Remember, after you become the Vice Minister of Foreign Affairs, you must find a way to become the head of a department, even if it's just a small one."

"Hey!" Vice Minister Aso hurriedly bowed to express his gratitude for the other party's guidance.

Just as the short, thin old man turned around, preparing to leave...

Taro Aso stood up and followed closely behind, asking in a low voice, "What is your opinion on the stepmother's investment company withdrawing its investment?"

The short, thin old man stood with his hands behind his back and smiled faintly, "Since that Zhang Sang knew that Tibet Province was going to join forces with Omega Capital to deal with him, it is not surprising that he made a strategic retreat."

"Judging from today's Japanese stock market performance, Euromag Capital, having lost its shared objective, can no longer maintain the same united front it had yesterday!"

After offering a few words of flattery and seeing the minister out, Aso Taro went to the machine room on the second floor.

"How is it?" As soon as Aso Taro entered the door, he looked at his wife, Aso Yuriko.

"Foreign investors are scrambling to sell, while domestic retail investors and companies are constantly buying. If the stock market rebounds this afternoon, it may trigger a frenzy of buying from domestic retail investors and companies!"

~
The East Coast Stock Exchange in Hong Kong closes at 10:30 a.m.

Zhang Heping chatted with Chairman He, Chairman Guo, and others for a while longer. When he saw them starting to discuss where to have lunch, he got up to say goodbye and prepared to go to his stepmother's investment company to sit for a while and see how the Japanese stock market would open in the afternoon.

Unexpectedly, Tang Qiang shamelessly insisted on going along, which led Chairman He, Chairman Guo, and others to also agree to go.

Zhang Heping realized that his fund managers had been learning about hedging risks recently and didn't have large funds to manage, so he simply brought Tang Qiang and Chairman He along.

At 11:30 a.m. on Hong Kong Island, which is 12:30 p.m. Eastern Time, the afternoon stock market opens.

Zhang Heping was checking the Japanese stock market on his computer in his office, while Tang Qiang, Chairman He, and others were observing the fund managers' operations outside.

Normally, they wouldn't even be able to get through the gate.

I've come all this way, so I'm determined to learn something from this or at least find out something useful.

Unfortunately, whenever they tried to ask something, the fund managers would point to a sign on the wall:
Keep it a secret! Keep it a secret! Keep it a secret!

No part of the company's internal affairs may be disclosed to outsiders!

Only those who can keep secrets deserve the bonus and be superior to others!

In the end, Chairman He, Mr. Rong from CITIC, and others who couldn't understand computer operations simply went to look at the slogans and company rules on the wall.

Only Tang Qiang stood between the two rows of workstations, glancing at the monitors of the fund managers on the left and then at the computer monitors on the right.

Judging from his furrowed brow, he seemed to have figured something out.

Lunch was delivered by the company's internal canteen.

Because the Japanese stock market opens in the afternoon, while the Hong Kong stock market is open from 11:30 am to 2 pm, these fund managers cannot leave their workstations during the day.

Therefore, the internal canteen gained an additional food delivery worker. It was only when Chairman He and Chairman Guo were called into the general manager's office for a meal that they heard snippets about stocks from Zhang Heping's public answers to fund managers' questions.

Just like now, Zhang Heping was eating a steamed bun when he opened an email from a fund manager.

Then, he turned on the thin microphone on the table and, through the speakers throughout the stepmother's investment company, addressed his fund managers:

A colleague asked, "My Japanese stocks are still falling. If I sell them, can I make more money through stock index futures?"

"Such a simple question reflects a human weakness: the gambler's mentality!"

"I believe many people have thought about similar questions, whether they want to make more money by doing this."

"Everyone needs to understand that stock hedging is a strategy to reduce investment risk by establishing opposite positions."

"The purpose of establishing this strategy is to achieve stable returns by transferring risk, rather than eliminating risk."

"The word 'stability' is crucial!"

During the brief moment Zhang Heping stopped to drink his porridge, Chairman He and the others noticed that the fund managers outside were all taking notes on paper.

Then, Zhang Heping said, "The stock market is full of all kinds of human nature. If you want to make a profit, just remember one sentence: When others are crazy, I am fearful; when others are fearful, I am crazy."

"Remember this, and you'll basically avoid making a big mistake in the stock market!"

"However, the probability of losing money is still very high!"

"So here's the question: if you go solo, partner up to run a fund company, or lead a team at another financial company in the future, do you want to win more and lose less with uncertain returns, or do you want stable, annual growth in returns?"

……

Instead of directly answering the question in the email, Zhang Heping explained the significance of stock hedging from another angle.

After all, once he's done with this wave of Japanese stock market activity, he'll be busy with experiments and building equipment, leaving him little time to monitor fund managers' account operations.

Therefore, he needs these fund managers to generate stable returns for him and his clients.

"A colleague asked if the weak rebound in Japanese stocks this afternoon meant that European and American funds were not in a hurry to cash out?"

"Group leader, after the market closes, lead your group members to relearn the technical indicators on the Heping Financial software. With such a high turnover rate, how can you not be worried?"

Zhang Heping's voice rang out again, drawing frequent glances from Chairman He, Chairman Guo, and others sitting on the sofa at Zhang Heping behind his desk.

In the outer office, after Zhang Heping called out Group 3, the other groups started jokingly discussing the current daily stock trading volume, as well as the data on capital inflows and outflows, wanting to give Group 3 a lesson.

Fortunately, Zhang Heping did not name who raised the question, which prevented the distracted fund manager from being criticized by his team members.

It is precisely because of Zhang Heping's unnamed approach that so many fund managers like to send emails to his email address.

Doing this not only allows you to get your name in front of the big boss, but also helps you get a more accurate answer.

Of course, Zhang Heping doesn't reply to every email. He simply ignores questions that are too simple, meaningless, or repeated, pretending he didn't see them.

After Chairman He and Chairman Guo finished lunch, they took a stroll around the large office area outside, then returned to the general manager's office for a cup of tea. Before they knew it, it was 14 PM, the day the stock market closed.

"Alright, all groups have done a good job today. Let's continue with small-scale practice. Don't worry about the ups and downs of the Japanese stock market in the near future." After saying this into the microphone, Zhang Heping logged out of his account on the computer.

"Let's go, everyone!" Zhang Heping stood up and greeted Chairman He and the others.

Mr. Rong from CITIC stood up, quickly walked a few steps to Zhang Heping's side, and asked, "Mr. Zhang, the Japanese stock market is mixed today. Does this mean that the Japanese stock market has returned to normal?"

“How is that possible?” Zhang Heping said as he walked out, “The operational problems of Japanese companies have not been resolved, the crisis of confidence in Japanese banks has not been eliminated, there are still falling housing and land prices, and the 500 trillion yen bailout funds that the Ministry of Finance has arbitrarily announced have not been delivered.”

"The key question is, after the European and American funds that rushed to rescue the market withdrew from Japanese stocks, did you think about the consequences?"

What CITIC Ronglao wants to say is that those European and American funds may not necessarily withdraw, and may even become shareholders of Japanese companies.

However, when he thought about the recent unemployment rate, loan defaults, and bankruptcy suicides in Japan, his rationality told him that those European and American funds would not take on such a mess that would cost them money and bring them no benefit.

"Tang Qiang, delete the videos you recorded on your phone!"

As soon as Zhang Heping finished speaking, all the fund managers around Tang Qiang stood up at once, and then all stared at Tang Qiang with ill intent.

The reason these people reacted so strongly was that Tang Qiang's actions triggered the confidentiality mechanism within the stepmother investment company.

If Tang Qiang leaves the stepmother investment company like this, the fund managers whose computer monitors were recorded by Tang Qiang may not receive their year-end management bonuses of hundreds of millions of Hong Kong dollars due to the leak!

When Zhang Heping reached the main gate, he frowned and looked at the four bodyguards standing there, and said in a cold voice, "Call your captain over here!"

Upon seeing this, the two bodyguards who came with Zhang Heping secretly sighed that these four bodyguards were unlucky. Such a big security blunder had probably led to their demotion to security guards!

The bodyguard captain on duty today rushed out of the stairwell in less than a minute after hearing the call on the walkie-talkie.

"I need to see your investigation report and proposed solutions in my email within 10 minutes!" Zhang Heping said this abruptly before leading Chairman He and the others into the elevator.

As soon as the big boss left, the head of the bodyguards' face darkened. He looked at the four bodyguards standing at the door, who looked bewildered, and asked in a cold voice, "What's going on?"

Immediately afterwards, the bodyguard captain picked up a walkie-talkie and, while walking towards the stepmother's investment company, said to the personnel on duty in the monitoring room:
"Get me the videos of the boss before and after visiting the stepmother's investment company, fast forward and see where the problem lies."

"Captain, we don't know what happened either. As soon as the boss came out, he told us to call you over," a young man replied, his mind filled with confusion.

"Captain Qin, no need to ask anymore!" The head of the stepmother investment company pointed to Tang Qiang, who was being supervised by a group of fund managers as he deleted videos and photos from his phone, and said:
"The boss brought outsiders into the company this afternoon, but the bodyguards on duty at the door didn't search them."

"Furthermore, when Mr. Tang was making phone calls on his cell phone in his office and secretly taking pictures of the computer screen, neither the bodyguards nor we stopped him."

"Sigh... I'll have to write one of these reports too!"

Snapped! Snapped……

The bodyguard captain slapped his forehead in exasperation, lamenting that his men were useless in a critical moment.

However, the thought of only having 10 minutes to write the report made the bodyguard captain, surnamed Qin, irritable again.

"Are you four idiots?" Captain Qin turned to the four bodyguards standing dumbfounded at the door and said angrily, "The boss brought people over, and you didn't voluntarily search outsiders. Did you expect the boss to remind you to search them?"

……

(End of this chapter)