Rebirth of the Capital Legend

Chapter 248: $3500 million short position in British pounds!

A follow-up trading plan has been formulated.

For the next week, Su Yi continued to let the company's traders use multiple associated accounts opened by the company at FXCM International to continue short selling standard pound exchange rate contracts until the investment reached US$3500 million and the market value of the open contracts reached US$35 billion.

"Boss Su, we have now completed the first phase of our position building target that we set earlier." After the traders completed the operation, trading team manager Qu Zecai reported to Su Yi, "After completing the first phase of the position building target, our institution's current short position in the British pound has reached 3500 million US dollars. In addition, since the British pound exchange rate has risen a lot in the past week, our current position has lost millions of US dollars."

"Yeah." Su Yi nodded slightly, looking at the pound exchange rate on the computer screen, which had reached around 1.476, and said, "In the initial stage of building a position, you don't have to worry too much about the cost of intervention, nor do you have to worry about short-term losses."

"What should we do next?" Qu Zecai paused and continued to ask.

Until now, he still didn't know what Su Yi's overall plan was, let alone why Su Yi was so determined to focus on the exchange rate of the pound.

You know, they are using such a huge amount of money to gamble on the exchange rate of the pound.

It is extremely dangerous.

He was really afraid that Su Yi would make a wrong judgment and fail in the exchange rate of the pound.

"Next..." Su Yi thought for a moment and said with a smile, "Now that the bait has been put down, we have to wait patiently for the fish to bite the hook. Our organization has established such a large short position on the same market maker trading platform in such a short period of time. Someone will definitely notice us. Let's wait for the relevant news to gradually ferment."

As he spoke, Su Yi asked his secretary Lin Xiaoxiao to call over Wang Huaijin, the general manager of the branch.

"Mr. Su..." Wang Huaijin walked into Su Yi's office.

Su Yi glanced at him and said, "Boss Wang, next...it depends on your expertise."

"My specialty?" Wang Huaijin looked confused and didn't quite understand what Su Yi meant.

Su Yi smiled and said, "Manager Qu just told me that our Huayi Chengyuan No. 1 Fund product has now established a short position of 3500 million US dollars on the FXCM International trading platform. I now need you to spread this news through the so-called gossip channel to the major foreign exchange market investment institutions in the Hong Kong City financial community, and even the entire Hong Kong City financial community."

"Mr. Su, you..." Qu Zecai was completely shocked when he heard Su Yi's words.

After Wang Huaijin reacted, his face was full of shock.

"What's wrong?" Su Yi looked at the two of them with a smile.

"Who would voluntarily expose their positions and holdings data to other institutions?" Qu Zecai said, "Once we expose detailed holdings data, I'm afraid it will be very easy for someone to accurately target us!"

"It's okay. Since we are here to fish, we are not afraid of big fish taking the bait, and naturally we are not afraid of being sniped." Su Yi said, "Spread the news, the more fish that take the bait, the better!"

Wang Huaijin saw that Su Yi was confident and said, "Okay, I'll do it right away."

After saying that, Wang Huaijin left the office.

"During this period of time when the news is spreading, let's stop increasing our positions." Su Yi said, "Let's see how many fish will bite the hook after the news spreads."

"Okay." Qu Zecai responded, but he was still a little nervous.

With a leverage of 100 times, the foreign exchange market is more than ten times more dangerous than the stock market.

Although the funds invested in the foreign exchange trading market have nothing to do with him, facing such a high leverage and excessive fluctuations in the pound exchange rate, his nerves will always be tense and it is difficult for him to relax.

After giving the two instructions...

Su Yi leisurely took a copy of Graham's book "Value Investment" from his desk and started flipping through it. He was not worried at all about the frequency of fluctuations and the increasingly large amplitude of the pound exchange rate trend, nor did he care about the millions of dollars in losses of the "Hua Yi Cheng Yuan No. 1" fund product.

And at this moment, he was waiting.

Before Wang Huaijin had anyone reveal the internal holdings data of his own institution, Su Yi's short position of 1 million US dollars opened within the 'FXCM International' trading platform using the 'Hua Yi Cheng Yuan No. 3500' fund product had already attracted the attention of a number of internal senior executives of 'FXCM International'.

At the same time, its huge short position data has also been leaked.

"What is the background of this 'Hua Yi Capital' organization? The 12 related accounts opened on our company's trading platform have a total short position of sterling of up to 3500 million US dollars."

During the internal meeting of FXCM International, Hubert, who was in the risk control department, couldn't help but ask.

"It seems to be a Hong Kong investment company with average qualifications." The company's account manager, Sarina, responded, "These accounts were opened in our company only half a month ago."

"A short position of 3500 million US dollars in British pounds, this is the largest position among the orders submitted on our company's platform, right?" Isaac, the company's president of market business, frowned and said, "It's really a gamble. The trading departments should keep a close eye on this order. Don't let the situation of a large number of accounts being liquidated like the 'Swiss Franc Black Swan' incident happen again."

"Okay, President." The trading department manager Xibeier responded.

"However, the margin this institution has placed on our trading platform is still quite sufficient," said Account Manager Salina. "This institutional client has injected a huge amount of funds totaling $1 million into our platform."

"It's just that it's sufficient for now," said Hubert, the manager of the risk control department. "With such a huge short position and the pound exchange rate at a historical level, once the news of its holdings leaks, all the foreign exchange financial trading institutions around the world will inevitably enter the market to force a short squeeze. By then... it's hard to say."

"Our company strictly prohibits the leakage of customer information. Who dares to violate this rule?" said Sibel, the trading department manager, righteously.

"Who knows?" Hubert spread his hands.

"It's possible that this information didn't leak out from our company's internal channels." Salina said, "In the global foreign exchange market, it's very difficult to hide the huge amount of centrally reported position information. Investment institutions that are good at collecting global information will have specialists to count the changes in long and short positions in various exchanges. As long as we report the orders to the exchanges, this position information cannot be hidden. Who knows... In just a short while, many external institutions have noticed this huge amount of position changes."

And as Salina said...

An internal meeting of FXCM International is underway.

In the global foreign exchange market, well-known major institutions such as Vanguard Capital, Pacific Capital, Mitsui Yoshitomo Investment Co., Ltd., Barclays Foreign Exchange Trading Center, Huifeng Global Asset Management, Aberdeen Asset Hedge Fund, Hashimoto Investment... and other fund managers in charge of foreign exchange trading have indeed noticed the sudden surge in short positions in the pound exchange rate trading.

"Have you checked it out? Why is there a sudden surge in short positions in the pound?"

At Pacific Capital's London headquarters, Yabuk, manager of the hedge fund business department, asked Horace, director of the market information department.

Horace responded: "It seems that an investment institution from Hong Kong City has concentrated on building up a short position of more than 3500 million US dollars in the pound through 'FXCM International' in a short period of time."

"An investment institution in Gangcheng?" Yabuk frowned, feeling a little surprised.

He originally thought it was the people from Wall Street, but he didn't expect... it was actually Hongcheng Capital, known as the Pearl of the Orient, on the other side of the ocean.

"Which organization is it specifically?" Jacob continued to ask.

Holles replied: "According to the feedback, it seems to be an investment institution called Huayi Capital."

"A Chinese-owned institution?" Yabuk said.

Hollus nodded and replied, "It seems so."

"Hehe..." Hearing that it was a Chinese-funded institution, Horace couldn't help laughing, "It seems that Chinese-funded institutions have not learned enough lessons from past experiences. A $3500 million short position in sterling... It looks like this will be another hunting feast." "I think so too." Horace said with a smile.

As major global foreign exchange trading institutions pay attention to...

Hong Kong financial sector.

Thanks to Wang Huaijin's deliberate creation.

As time went by, in just two or three days, the news that Huayi Capital had made a huge bet on shorting the British pound exchange rate and held a short position of 3500 million US dollars in British pounds quickly fermented in the entire Hong Kong financial community. And as the news spread quickly, this news also spread to the mainland financial community.

"Fuck, is it that awesome? A short position of 3500 million US dollars in British pounds in one go?"

Upon hearing the news, Dennis, a core trader at the hedge fund trading department of Aberdeen Asset Management in Hong Kong who had met Su Yi, was almost stunned.

He never expected that Su Yi had just entered the foreign exchange trading market.

Such a big move has attracted so much attention from the market.

In fact, when he heard that Su Yi had established such a huge short position, he once suspected that Su Yi did not understand the foreign exchange trading market at all and was very likely to be treating the foreign exchange market as the stock market.

After all, it's extremely high leverage.

The holding size of 3500 million US dollars will be hit by benchmark sniping.

The funds that can be lost in an instant will exceed 10 times of the principal, which means that the risk of holding a position is extremely high.

Of course, if the other party just tried a small amount and was able to hold a position of 3500 million US dollars, then the potential size of the investment funds would be even more shocking to him.

And when he was shocked.

At the same time, within Huifeng Asset Management, the hedge fund trading department of Huanyu.

Godfrey, the fund manager in charge of this hedge fund product, stared at the fluctuations in the pound sterling exchange rate and found it hard to believe that the young man who had made such wild remarks at the party actually dared to invest tens of millions of dollars and plunge into the foreign exchange trading market to make such a big gamble.

"It seems... I really underestimated him." Godfrey's eyes flashed with sharpness.

"But..." He pondered for a moment, paused, and said, "The timing of this entry and the gamble on the currency system really show a lack of vision. He actually shorted the pound exchange rate at a historical low. Does this guy want to be the counterparty of the Bank of England? How ignorant."

"Mr. Godfrey, we should go in and snipe."

While he was thinking, Gerald, a core trader in the trading department, quickly suggested.

Gorever glanced at Gerald and said with a smile, "At this point, it's a good opportunity to go long on the pound exchange rate. Go long. Chinese capital has always been a fat sheep waiting to be slaughtered in the foreign exchange market. I believe that this time... there will be no exception."

After saying that, he asked the traders to quickly establish long positions in the pound.

When Huifeng Asset Management learned the news, it began to enter the market to go long on the British pound exchange rate and gradually established long positions.

All Chinese-owned institutions in Hong Kong except foreign-owned institutions.

After hearing the news that Su Yi's "Hua Yi Capital" invested heavily to short the pound exchange rate, basically no one was optimistic, and the majority of people were still sarcastic.

There are even quite a few Chinese-funded institutions.

It quietly followed foreign institutions to enter the market and go long on the British pound exchange rate, becoming the counterparty of Huayi Capital headed by Su Yi.

Of course, at this time in China...

Many people have witnessed Su Yi's legendary investment performance in the A-share market.

After hearing that Huayi Capital, headed by Su Yi, had shorted the British pound exchange rate and spent a huge amount of money to move into the global foreign exchange financial market.

Most of them expressed support.

However, many people expressed concerns.

After all, in the past financial history, Chinese capital going overseas has indeed had no success and has been completely harvested by overseas capital.

"Oh my god... I was wondering why Brother Su hadn't appeared on the market's top players list in recent months. I didn't expect that he would switch to the global foreign exchange trading market."

News spreads rapidly and information ferments.

Xu Qiao said in shock in the main hot money group of 'Magic City Ultra Short Gang' where Su Yi was.

"Brother Su's courage and bravery are not something that ordinary people can have." Lao Zhang said in the group, "He made a gamble of 3500 million US dollars in one go, which is really amazing."

"The investment risks in the foreign exchange market cannot be compared with those in the stock market, right?" Old Wu said, "I feel that the situation that Brother Su is facing is quite dangerous. I don't know who leaked this information. With such a huge amount of holdings, it is absolutely a taboo to expose the holdings."

Brother Chen pondered for a while and said, "The news fermented so quickly and spread so quickly. Why do I feel that the news was exposed on purpose?"

"Don't say... I feel the same way." said Lao Zhang.

"Anyway, no matter what... I believe in Brother Su." Xu Qiao said, "Isn't it just the foreign exchange financial market? Anyway, there are no opportunities in the stock market right now. With Brother Su leading the charge, I can at least do a little bit. It just so happens that the 'Yingxiu Securities' account I opened a few years ago can still be used."

"Haha, I support both hands, too." Lao Zhang said, "But I don't really understand this thing. How do I open an account?"

While several people in the group were discussing intensely.

The entire Internet, and even the entire domestic financial circle, were discussing this matter for a while.

Even a number of domestic banks, state-owned investment institutions, state-owned enterprises, and central enterprises that have a certain amount of positions in the foreign exchange trading market are also discussing this issue at this moment.

As news spread rapidly, countless people took different actions after discussing it.

In the global foreign exchange market.

The exchange rate fluctuations of the pound sterling, as well as the number of long and short positions, also began to increase further.

Su Yi paid attention to the spread of news about his own institution and the fluctuations in the pound sterling exchange rate. He especially noticed the sharp increase in long and short positions in the pound sterling in the market. He knew that the bait he had put out had attracted many big fish and attracted the attention of many investment institutions.

For a moment, an obvious smile appeared on the corner of his mouth.

"Manager Qu..." Su Yi told Qu Zecai with a smile, "We can proceed with the next trading plan. We will use the associated accounts we have opened on other market maker trading platforms to continue shorting the standard pound contract and shorting the pound exchange rate."

(End of this chapter)