Rebirth of the Capital Legend

Chapter 245 The best hunter always appears in the form of prey!

"What a coincidence indeed." Fang Wanqing gently held Su Yi's hand and said with a smile, "Why are you in Hong Kong City?"

Su Yi replied, "That's a long story. Oh, by the way, have you eaten? I promised to treat you to a meal last time in Shanghai, but I was delayed by family and work matters and never found the time. We just happened to meet today. If... Miss Fang happens to be free, why don't I treat you."

"Okay." Fang Wanqing agreed readily, "I was originally here to eat, and since Mr. Su has said this, I naturally cannot but give you face. Oh... By the way, this is my colleague Dennis."

As she spoke, Fang Wanqing briefly introduced the identities of the colleagues around her.

"Hello!" Su Yi shifted his gaze to the young foreign man next to Fang Wanqing and greeted him with a smile.

Then, he invited the two to sit in the private room of the restaurant prepared by Wang Huaijin.

"It seems that Mr. Su is planning to do something big in Hong Kong City." After Su Yi briefly introduced everyone in the company, Fang Wanqing smiled and said, "Are you planning to set up a branch in Hong Kong City?"

Su Yi said: "The preparations for the branch office have been completed."

"Mr. Su, are you also planning to develop asset management business in Hong Kong?" Fang Wanqing continued to ask.

Su Yi nodded slightly and asked, "Is there anything wrong?"

Fang Wanqing said: "There's nothing wrong with that, but I think it's not as easy to develop asset management business in Hong Kong as it is in the mainland. Moreover, investment business in the Hong Kong stock market should be more difficult to do given the difference in liquidity with the A-share market, right?"

"I don't plan to invest in the Hong Kong stock market." Su Yi said with a smile.

As far as the market stock investment business is concerned, in Su Yi's mind, the Hong Kong stock market is a fringe market with extremely scarce liquidity, and there are not many stocks that are truly worth investing in.

He won't waste his energy on the junk market.

"So are you planning to... make offshore investments?" Fang Wanqing reacted and said.

Su Yi nodded slightly and said, "I do plan to start an offshore investment business and test the depth of the international foreign exchange financial market."

"Oh, you are planning to develop the foreign exchange investment business?" Fang Wanqing was a little surprised.

"Yes." Su Yi nodded.

"Mr. Su, have you ever worked in the foreign exchange trading market?" At this time, Dennis, who had been sitting next to Fang Wanqing and had been silent, suddenly asked.

Su Yi shook his head slightly and said, "I have come across it before, but I haven't studied it in depth."

"Mr. Su is very courageous." Dennis said with a smile, "As far as I know, the risks in the foreign exchange market should be much greater than those in the stock market. In addition, since foreign exchange transactions generally have leveraged properties, they are subject to more information interference, and the difficulty of trading is also more difficult than that of stocks."

"Oh, really?" Su Yi did not comment and asked, "Mr. Dennis knows about this?"

Hearing Su Yi's question, Fang Wanqing smiled and replied on behalf of her colleague: "Dennis is a hedge fund trader in our company's global financial investment business department. His main trading direction is also the foreign exchange market."

"That's really unexpected..." Su Yi was a little surprised. He looked at Dennis carefully and said, "Then I have to ask Mr. Dennis more about the technology of foreign exchange financial market transactions and related risk prevention."

A core trader of hedge funds in the global financial investment business department of Aberdeen Asset Management Group.

Su Yi didn't dare to underestimate him.

After all, he knew how strict the conditions for recruiting traders were and how high the requirements for personal ability were in the market trading department of a global asset management giant like Aberdeen Asset Management. Even though the other party did not have a "rearview mirror" like him and knew the general development direction of the global financial market, it was definitely worth having a detailed chat about technical exchanges and risk control.

"Mr. Su, you are too polite to ask for advice." Dennis said, "Miss Fang and I are classmates. She told me before that Mr. Su is very good at stock trading and is a stock god in the Eastern country. He has achieved a hundred times return in half a year. I actually have many questions about this, and I also want to communicate more with Mr. Su about stock investment."

"Sure." Su Yi said with a smile, "I just didn't expect Mr. Dennis's Chinese to be so good."

"Thank you for the compliment, Mr. Su. I have been interested in Chinese culture since I was a child. I also studied in China for a few years, so my Chinese is pretty good." Dennis said, "Ms. Fang spoke very highly of Mr. Su. She said you are a genius trader in the financial market..."

Su Yi said: "My success was only temporary. It has not been verified over time and cannot be counted. By the way... In Mr. Dennis's opinion, are there any big investment or speculation opportunities in the current foreign exchange financial market?"

"I think there are opportunities like this every moment," Dennis said, "but opportunities are common, but it's not easy to seize them."

As they talked, the two began to chat about the many opportunities in the international foreign exchange trading market, as well as trading issues, and they also had many ideas about the future changes in trading models.

Among them, when Su Yi mentioned "quantitative trading".

Dennis's eyes lit up obviously, and he thought that this would most likely be the most powerful auxiliary tool for trading in the future.

As the two chatted more and more deeply.

Su Yi discovered that Dennis in front of him was truly a talented person.

So, when the dinner was over, Su Yi couldn't help but say: "Mr. Dennis has a thorough understanding of the international foreign exchange financial market, and his insights into trading are also unique. I wonder what Mr. Dennis's future plans are? If there is an opportunity in the future... I hope we can work together and create a better future together."

Dennis had never expected that Su Yi would suddenly invite him to cooperate. He smiled and replied, "I appreciate Mr. Su's kindness, but for now, I am quite happy with this job. Maybe in the future, when I have other ideas, we may have the opportunity to cooperate."

"Okay then." Su Yi nodded slightly without saying much.

"Su Yi, will you stay in Hong Kong City for a while, or go back to Shanghai every two days?" Fang Wanqing suddenly asked before leaving.

Su Yi replied: "I guess it will take a while."

"Okay." Fang Wanqing said happily, "Then when I'm free, I'll invite you for coffee. I have a few projects in the primary market, and when the time comes... I'd like you to give me some reference and advice."

After saying that, Fang Wanqing waved to Su Yi without waiting for his response, then took a taxi and left.

Afterwards, Su Yi stayed at the Peninsula Hotel under the arrangement of Wang Huaijun.

Afterwards, when Qu Zecai and other members of the company's trading team arrived, Su Yi convened all employees of the branch and held an internal meeting.

The establishment of a proprietary fund account for foreign exchange investment and the opening of related trading accounts have been determined.

Make all preparations before opening a position.

After the proprietary fund account was established, Su Yi named the company's proprietary fund product, which invested in the foreign exchange trading market, the 'Hua Yi Cheng Yuan No. 1' fund product.

The manager of this fund product is jointly managed by him and Qu Zecai.

After everything is ready.

On Wednesday, May 5, Su Yi began to direct the trading team to build positions.

Moreover, in order to prevent the extremely small probability of accidents, when setting up his trading account, he selected more than a dozen world-renowned market makers at once, and dispersed 50 billion Chinese yuan, almost 7 million US dollars, into the major accounts of these dozen market makers to avoid being tracked by anyone.

"Mr. Su, in which direction should we build our position?" Qu Zecai asked.

Su Yi stared at the exchange rate fluctuations of major currencies around the world at this time and said, "At this stage, we have only one goal, which is to continue to short the pound and short the exchange rate of the pound."

"Short the pound?" Qu Zecai asked in surprise, "But at this stage, the exchange rate of the pound is already low."

According to his analysis, the global economic recovery has been hindered. In order to boost economic recovery, the Federal Reserve has repeatedly slowed down its pace of interest rate hikes, and there is a clear trend of delaying the exit from its loose monetary policy.

Under this situation, it is impossible for the US dollar to remain strong. On the other hand, the British pound.

Even though the economic situation in the UK is not very good, the Bank of England is still very determined to maintain a stable exchange rate. What's more, the exchange rate of the pound is now at a historical low. Qu Zecai thinks Su Yi must be crazy to short the pound at a historical low.

Now the exchange rate of the pound has reached 1.47 after two consecutive years of decline.

This position is basically equivalent to the exchange rate level during the 08 financial crisis.

The Federal Reserve is likely to continue its loose monetary policy, while the Bank of England is firmly supporting the exchange rate and continuously selling foreign currency to maintain the exchange rate.

They are shorting the British pound exchange rate, which basically means they are taking on the world's major asset management giants and hedge funds.

Even the counterparty of the Bank of England.

In Qu Zecai's opinion, it is unlikely that this would have much chance of success.

Seeing Qu Zecai's doubts, Su Yi smiled and said, "Britain has long lost its former glory, and its internal crisis is more serious than everyone sees on the surface. Although the Federal Reserve has been dovish recently, it is not impossible to raise interest rates when the QE plan is reduced marginally and inflation continues. The strength of the US dollar has not yet reached its limit, and it is difficult to reach its limit. Although the exchange rate of the pound has fallen to a historical low, in terms of economic fundamentals, its current exchange rate does not truly reflect the expected deterioration of its national economy, so... overall, we have a chance."

"Well... okay." Qu Zecai didn't quite agree with Su Yi's logic.

But since Su Yi had made up his mind, he had no choice but to wait until Su Yi suffered a setback and then change his current investment ideas.

"What about the idea of ​​building a position?" Qu Zecai paused and asked, "What strategy should we follow to build a position?"

Su Yi's eyes flashed with a sharpness, and he said: "Let's first concentrate on a market maker's account to establish a short position. The so-called best hunter always appears first in the form of prey. We must first make a bait to lure these giant crocodiles that dominate the foreign exchange financial market to take the bait."

"Okay." Qu Zecai still didn't fully understand Su Yi's trading plan, and asked again, "How much money should we use to build a position initially?"

Su Yi said: "One twentieth of the position, 3500 million US dollars is enough to attract a lot of people's attention."

"When opening a position, do we still use standard contracts?" Qu Zecai continued to ask.

Su Yi nodded slightly and said, "Yes, we will conduct short selling operations according to the standard contracts set by the market maker."

"But the standard contract... has a leverage of 100 times," Qu Zecai said, "Even if we invest $3500 million in the first phase, the risk is not small."

For example, the standard contract has a leverage of 100 times.

Investing 3500 million dollars is equivalent to holding a contract value of 35 billion dollars.

The market value of this contract is that if the pound exchange rate fluctuates upward by 10% to above 1.60, they will lose more than 3.5 million US dollars.

Su Yi smiled and said, "As bait, it must be more obvious and high-profile. Let's build a position according to this strategy first. We will study the subsequent related operations and strategy arrangements after the first stage of building a position is completed."

Although Su Yi already had a complete plan for the entire short-selling operation at this time.

But now is not the time to reveal your cards.

"Okay, Mr. Su." Qu Zecai was sweating profusely after hearing Su Yi's radical actions.

But he knew that Su Yi was definitely not the kind of person who would gamble easily without considering the risks, so after a brief silence, he began to issue relevant trading instructions to the traders.

After the order was issued...

In the major related accounts opened by Su Yi using the name of 'Hua Yi Capital' from 'FXCM International', a world-renowned market maker.

Hundreds of thousands, millions of dollars.

It began to flow into the global foreign exchange market and quickly became a standard contract for shorting the British pound.

"Hey, Su Yi..."

As traders were constantly shorting the pound in the foreign exchange market according to Su Yi's strategy, Fang Wanqing called him and said, "There is an investment exchange party in the industry tonight. Can you go with me?"

"Investment exchange party?" Su Yi was stunned.

Fang Wanqing said: "It is a private exchange circle in the industry. Generally speaking, if the organizer of this kind of exchange meeting is strong, major investment companies and institutions in Hong Kong will give face. Of course, there are also many people from outside the circle who join in the fun to make connections, friends, etc.

This time, it seems that "Huifeng Bank" is the organizer and there should be many celebrities from Hong Kong.

And well-known people in Hong Kong’s financial circle also came to join in the fun.

You just arrived in Hong Kong not long ago, I think... there is no harm in going to see it, what do you think?"

Seeing Fang Wanqing had said so much, Su Yi smiled and responded, "Since Miss Fang has invited me, I will respectfully obey your order."

"Okay, I'll get off work soon. Wait for me and I'll go home to change my clothes." Fang Wanqing said and hung up the phone.

After that, wait until around 5pm.

Fang Wanqing called him again and arranged a meeting place.

Su Yi followed the address Fang Wanqing gave him and arrived at the location, only to see Fang Wanqing already waiting there.

In May, the sun is shining.

A gentle halo enveloped Fang Wanqing, who was wearing a white evening dress, and for a moment, Su Yi was dazzled.

"Let's go." Fang Wanqing gave Su Yi a smile.

"It's rare to see you dressed like this." Su Yi said, "It feels completely different from your usual temperament."

In their previous many meetings, Fang Wanqing gave Su Yi the impression of being a capable, smart, straightforward and pretty girl, but now, he felt Fang Wanqing's gentleness, as well as the grace and elegance of a lady from a noble family.

"I seldom wear this kind of long skirt." Fang Wanqing said, "It's mainly because I don't think it's very convenient. If my aunt hadn't insisted, I wouldn't bother to do it."

"Your aunt?" Su Yi was stunned for a moment, and asked in confusion, "Isn't your aunt Mr. Lin's wife? How come... did she also follow you to Hong Kong City?"

Fang Wanqing smiled and said, "She's not my real aunt, she lives in the next room, but she's also very close to our family. She married to Hong Kong City a long time ago. I came here for a long business trip to Hong Kong City, and my second uncle was afraid that I would feel lonely or inconvenient, so he let me live directly in my aunt's house."

"Oh, so that's it!" Su Yi reacted, but didn't ask any more questions.

The two walked and talked for a few minutes, and then arrived at the entrance of the hotel where the investment exchange party hosted by Huifeng Bank was held.

Fang Wanqing simply greeted the person who greeted her at the door.

Then, he took Su Yi to the party venue of the hotel.

After entering the venue, Su Yi looked around and saw that it was decorated quite elaborately. Many people had already arrived, including young people, middle-aged people, Chinese, foreign friends, beautiful women, and handsome men. It seemed that this party was quite grand.

(End of this chapter)