Rebirth of the Capital Legend

Chapter 274: Public display of power at the offline financial summit!

Along with Su Yi's orders.

From within the institutions of Huayi Capital, Huayin International and Aberdeen Asset Management, tens of millions of dollars of funds were instantly poured into the British pound exchange rate in the form of concentrated new short orders.

At the same time, there was a rapid covering of intraday profit-taking and timely counterattack by other major short-selling funds.

Almost instantly.

The pound sterling exchange rate took a sharp turn downward from around 1.5385 points and fell back to around 1.5350 points.

"Fuck, the 1.5400 level just won't go up."

Faced with the pound sterling exchange rate turning downward again and the phenomenon that the main short sellers in the market were frantically increasing their positions, many retail investors who followed the trend and went long could not help but start complaining.

"Why is it so difficult to break through the 1.5400 level? Isn't there good news?"

"It seems that the short-selling force in the market is much stronger than everyone expected before!"

"It is not that the short-selling force in the market is strong, but that the intraday profit-taking in the market is large-scale, which suppresses the market trend of the pound exchange rate."

"The intraday profit-taking, doesn't it still mean that people are not confident in continuing to go long at this position?"

"The main reason is the referendum result on June 6 next week. There is considerable uncertainty, which cannot boost everyone's confidence in concentrated long positions."

"Confidence is one thing, but on the other hand, the continued increase in short positions by major short-selling institutions in the market also has a huge impact."

“If you ask me, you don’t need to look that far ahead, and you don’t need to analyze so much. Just do a short-term intraday trade in the range of 1.5300 to 1.5400. The market fluctuation of 100 points is enough to make money.”

"It seems that the trend of the pound sterling exchange rate fluctuating between 1.5300 and 1.5400 has been generally recognized by the majority of investors and speculators in the market."

"This is not a question of whether you agree or not, it's mainly about the trend developing in this way."

"There is no doubt that the pound exchange rate is not expected to move in a one-way direction before the referendum result is known next week on June 6."

"In fact, there is no need to wait for the referendum result. If the good news this weekend exceeds expectations, that is, the negotiations between the French and German politicians and the British government officials go smoothly, then... I estimate that the referendum result on June 6 will most likely be to continue to stay in the EU system."

"Not necessarily? Can the referendum result be manipulated?"

"It's not manipulation, it's guidance. If this negotiation is successful and France and Germany make more concessions to the UK's national interests, then the national government and the people will have no reason to strongly demand leaving the EU!"

"From a logical and probabilistic point of view, the referendum result is definitely more likely to be in favor of continuing to stay in the EU, right?"

"That's the theory, but we can't rule out accidents!"

"If something unexpected happens, the pound exchange rate will probably collapse."

"Not only the pound exchange rate, but also the spot trend of gold will probably experience extremely drastic fluctuations."

"If the referendum results in leaving the EU, it should be considered a 'black swan', right?"

"That would definitely be a 'black swan', but the probability of this happening should be very small. At the moment... it seems unlikely that the UK will actually leave the EU."

"Although the probability is small, we still have to guard against it."

"The short position in the pound exchange rate market has become stronger in recent days. Is this probably also a concern?"

"I have read the recent bearish reports from institutions such as Aberdeen Asset Management, Bank of New York Mellon, and Citigroup. I feel that even without the Brexit referendum crisis, it would be difficult for the pound exchange rate to remain stable at this level for a long time."

"The former empire has indeed fallen on its twilight years."

"Well, let's just follow the market. Sell short when it approaches 1.5400 and go long when it approaches 1.5300. And try not to hold overnight orders."

Amidst heated discussions among many retail investors and investor groups.

As trading time progresses.

The exchange rate of the British pound is still declining.

Especially when the market trading time entered the US trading session, after the main short-selling institutions such as 'BOY Mellon', 'Blackstone Group' and 'Citibank' comprehensively analyzed the impact of market news and continued to increase their short positions, the pound exchange rate gradually fell back to around 1.5300 points.

Finally, when the US trading hours end, the market enters the weekend closing time.

After violent intraday fluctuations, the pound exchange rate closed at 1.5321, barely holding the bullish psychological defense line of 1.5300.

However, despite the positive news, the pound sterling exchange rate failed to maintain a sustained upward trend.

It was not able to truly recapture the 1.5400 level.

However, in terms of the overall number of open long and short positions in the market, there is no doubt that the open long positions in the market still account for the majority, and the number of net long positions in the market is still as high as 80 lots.

This was thanks to the sharp decline in the pound exchange rate during the U.S. trading session and the company's traders' continued short selling above 1.5370.

The main hedge fund 'Hua Yi Cheng Yuan No. 1' managed by Su Yi.

Although the short positions held increased, the amount of losses on the positions was much lower than in the previous few days, and the losses on the entire fund's holdings were reduced to less than US$2 million.

"Boss Su, the news is out."

On Saturday, June 6, around 18 p.m., just as Su Yi was thinking about the follow-up transaction plan, Wang Huaijin called and hurriedly reported with a smile: "According to the news from the UK, after the discussion, the two sides did not reach a satisfactory result. The British Prime Minister made it clear that since the referendum process has been initiated, it cannot be stopped and will not be interfered with by anyone or any organization. Regardless of the result, the government of each state and city will ensure that the counting results are fair, open, and equitable, and fully respect and guarantee the voting rights of all British citizens."

"That's a nice way of saying it." Su Yi said with a smile after listening to Wang Huaijin's report, "Now that the matter has developed to this point, the British government's politicians will naturally not go against public opinion and think about stopping this matter. Besides... for these people, the result of Brexit or not will not have much impact on them. There are even many politicians who want to take this opportunity to speculate and rise to power."

"Yeah." Wang Huaijin nodded and said, "Generally speaking, this is good news for us." Su Yi responded, "It's a good news, but based on this news alone, it's unlikely to curb the longs' short squeeze and force the many long funds in the market to cover their positions before June 6 next week."

After Su Yi finished speaking, he thought for a moment and said, "Keep paying attention to the news in the market. If nothing unexpected happens... there should be a lot of important news released."

"Okay." Wang Huaijin responded, and suddenly remembered something, and said, "Mr. Su, there will be a financial summit forum led by the Hong Kong government tomorrow, and our organization has been invited. What do you think...should I accompany you there, or..."

Su Yi thought about it and felt that now was the time to take advantage of the opportunity to publicly display his sword.

So he pondered for a moment and said, "You can go with me tomorrow."

"Okay." Wang Huaijin continued to respond and hung up the phone.

Then, when it came to 6 o'clock in the morning on June 19, Sunday, Wang Huaijin drove a car and waited at the door of the Peninsula Hotel where Su Yi was staying.

After that, the two set off together.

At 10 am, we arrived at the venue of the financial summit.

After signing in at the venue, Su Yi greeted Zhang Yanshun, Kong Fansheng, Meng Shengfei, Frederick, Fang Wanqing, etc. who had also arrived.

Many reporters from financial media have already crowded in front of him.

"Mr. Su, there are recent rumors in the industry that the 'Hua Yi Cheng Yuan No. 1' fund product you manage has suffered huge losses on the British pound exchange rate. Is this true?"

A financial media reporter who squeezed in front of Su Yi asked.

Su Yi glanced at the reporter in front of him and responded with a smile: "Our agency just announced the corresponding holdings data a few days ago. Whether it is true or false, I think I don't need to answer this question."

"Such a huge loss reminds me of the past when Chinese investors were forced to short their positions in crude oil futures and LME copper futures by international capital and eventually had to make up for the huge losses." The reporter continued to ask, "Will Mr. Su make up for the positions held by the fund products in the near future?"

"We may cover our positions in the near future," Su Yi responded, "but... this is premised on beating the long positions in the market."

"Mr. Su still thinks that there is a huge risk of depreciation of the British pound exchange rate in the near future," the reporter asked.

Su Yi spread his hands and smiled, "There is no doubt about it. The exchange rate trend of a currency is the best reflection of a country's economy. I don't think the British economy will be able to explode with strong growth potential in the future, given its structural imbalance and hollowing out of the manufacturing industry. Instead of being optimistic about the economy of this former empire that is on the decline, it is better to be optimistic about the economic development of South Vietnam, which is adjacent to us."

"Does President Su compare the economic potential of South Vietnam with that of Britain and think South Vietnam is more promising?" The reporter continued to ask in order to expand the contradiction and attract attention. "In President Su's eyes, Britain is worse than South Vietnam now?"

Su Yi smiled and said, "I was talking about future economic growth and development potential, not national strength. Please don't misinterpret it, Miss Reporter."

"I heard that the funds used by Mr. Su's 'Hua Yi Cheng Yuan No. 1' fund product to invest in the pound exchange rate market are not all the self-operated funds of Mr. Su's company." The reporter continued to ask, "With such a huge loss, Mr. Su, what can you say to make investors have confidence and continue to believe in your investment decisions?"

Su Yi responded: "In the foreign exchange market, temporary losses on positions are normal. I don't think the current losses are a big problem. As for the many friends who are willing to entrust their funds to me, since they are willing to trust me, I don't need to explain too much. I am a person who... sometimes I like to focus on results. I still say that I welcome friends who are long in the market to force me to blow up my position, or to the point where I have to cover my position to stop loss. Otherwise... I will definitely make money and leave."

"Mr. Su's confidence... is truly beyond the reach of ordinary people."

The reporter laughed awkwardly when he saw Su Yi's confident and somewhat arrogant demeanor and words.

"Boss Su, aren't you being too absolute?" In the meeting, Godfrey, manager of Huifeng Global Asset Management Universal Hedge Fund, frowned and said, "I remember that ever since you announced your entry into the British pound exchange rate market, it seems that you have been losing money and have never made a profit."

Su Yi glanced at Godfrey calmly and said, "As long as you don't close your position, a temporary loss doesn't mean anything. Mr. Godfrey claims to have been involved in foreign exchange trading for twenty years. Doesn't he even know these basic trading rules?"

"I only know that Mr. Su is a complete gambler," Godfrey responded, "and in the financial market, gamblers will eventually be completely eliminated."

"Really?" Su Yi said with a smile, "Then I hope Mr. Godfrey can eliminate me in the pound exchange rate market and blow up my position. I just don't know if Mr. Godfrey still has the courage to continue to increase his long position in the pound exchange rate market when the market opens tomorrow."

"Why are you afraid?" Godfrey laughed. "Mr. Su may be out of touch with the news and not know that the initial voting data has come out. According to the calculation results of the initial voting data, the result of the referendum on June 6 will not be surprising."

"Oh, I see." Su Yi narrowed his eyes and said, "Then I really look forward to June 6rd coming sooner."

As the two exchanged verbal attacks, the scene became more and more lively.

In addition, there are forecasts for the future trend of the pound sterling exchange rate and the results of the Brexit referendum on June 6 next week.

These two topics have also become the core topics of discussion among major global famous and well-known asset management institutions and banking institutions at today's financial summit.

Among them are institutions such as "Huayi Capital" headed by Su Yi, "Huayin International", and "Aberdeen Asset Management".

Everyone feels that there is uncertainty about the referendum outcome and any result is possible.

At the same time, it is also believed that the UK's economic development has lost its vitality, and the pound sterling exchange rate is unlikely to return to its former glory. It is also believed that this will not change regardless of the good or bad results of the referendum.

And institutions such as "Pacific Capital" and "Mitsui Kaito Investment" led by "Huifeng Bank".

Many people believe that the result of next week's referendum will have a positive impact on the trend of the pound exchange rate, and will be influenced by the Bank of England's active monetary policy.

In the future, the exchange rate of the British pound will continue to rise and appreciate.

The two sides have opposing views and neither can convince the other.

And because of the huge position interests of both the bulls and the bears, there was no way for them to coexist peacefully. So after the main session of the financial summit ended, everyone went their separate ways.

Then, after most of the day's emotions brewing and the entire weekend's news fermenting.

When Monday, June 6th, came.

When the global financial markets opened, the British pound exchange rate opened much lower than expected at 1.5260 during the Asian session, causing many investors and speculators who held overnight long positions to suffer considerable losses in an instant.

(End of this chapter)