Winner Takes It All, Resurrection 2009

Chapter 699: Destroying the Weeds and Rooting Out

3 "Mr. Xu, this is bad. A huge amount of money from the short side suddenly entered the market, pouring in tens of thousands of tons of short orders every minute. We don't have time to buy in.

Now the price has been driven down by 3%, and the short sellers seem to have an endless supply of bullets, which they cannot handle at all. What should we do? "

"Mr. Xu, the China Securities Regulatory Commission suddenly announced that it would increase the margin for raw metal materials such as copper, iron ore, and steel, and agricultural products such as soybean meal.

Now the short side has entered the market in full force, and the most important thing is that the long side has also become unstable. It seems that the main force of the big funds has jumped back, and we can't stop it at all!"

Faced with the panicked reports from his subordinates.

Xu Xiang was not panicked at all.

"Don't panic, contact Zhong Xin immediately to add more capital. This is the opponent's last struggle. As long as we can suppress it successfully, victory will definitely belong to us."

He calmly allocated funds and started to buy a large number of short orders. However, something seemed to go wrong during the execution. The American capital, Zhongxin Capital, which had originally agreed to advance and retreat together with him, made trouble.

Failure to keep up in time resulted in the Jiangsu and Zhejiang hot money, led by Zhe Xi, being unable to cope with the huge amount of short orders. They often took up 1000 lots and then another lots appeared.

The opponent’s funds are almost endless, and it is impossible to buy everything.

"What the hell? They are just one step away from a perfect harvest. Will they fail at the critical moment?"

Xu Xiang felt vaguely uneasy, but before he could call to ask what was going on, an unusually conspicuous number from Jinhai called his cell phone directly.

His pupils suddenly contracted violently and he suppressed his fear and answered the call tremblingly.

There was only a short sentence on the other end of the phone, "I can't protect myself anymore, please leave quickly."

He would never forget this voice even in his dreams, because that person had stayed in Ningbo for many years. Since moving north to Tianjin and Haikou, many enterprises from Jiangsu and Zhejiang followed him to North China to make a living.

But now, the tree is about to collapse and only the fur is left. The other party has done the best by calling him to tell him to leave quickly.

"It's over."

Xu Xiang hung up the phone in despair. Before he could react, worse news came.

"Boss Xu, this is bad. Yongan was under surprise investigation. Their boss only had time to send the last message before he was arrested and taken away on the spot.

The rest of the people are in chaos. The most important thing is that we opened a long account there, and now we can’t add margin. You have to think of a way quickly, otherwise we will all be forced to close. "

Facing his subordinates' anxious reports, Xu Xiang reacted completely and shouted, "Don't worry about those accounts. Sell them quickly while the market hasn't reacted yet. Sell as much as you can."

The subordinate was confused, "Ah? That price."

This was the moment when the most brutal decisive battle broke out between the bulls and bears. Hundreds of millions of funds were poured in every second. As the main bull, Zhexi Capital held positions of more than one million lots.

Thousands of accounts were controlled through secret channels for decentralized operations, involving funds of more than tens of billions. It was suddenly difficult to unify the operations. The worst thing was that Yongan was sealed up, and a large number of fund operation channels were blocked.

It will trigger a systemic collapse and cause a chain reaction with disastrous consequences. It is estimated that there will be losses of tens of billions of RMB not only in copper futures, but also in other precious metals, commodities and agricultural products.

Accounts that are stuck and unable to close their positions will suffer losses of hundreds of millions every minute and every second.

The feeling of watching the account balance plummet without being able to close the position and stop the loss is torture every second. Even the traders are so anxious that they pull their hair and pound their chests.

Even the calmest people understood that the situation had completely collapsed and was beyond redemption. Some impatient people even smashed the custom keyboards that they usually regarded as treasures.

There is no point in keeping it if you don't sell it, because the Yongan channel has been completely taken over by the China Securities Regulatory Commission. For the accounts that cannot prove their owners, they are all restricted from continuing to trade and forced to close their positions at the current price.

There is nothing wrong with this and it does not violate any laws, because the CSRC has already issued a notice to increase margin requirements, and these accounts are already in a high-risk forced liquidation state according to the new rules.

Those massive short orders that suddenly emerged, except for a part of the chips placed by the State Administration of Reserves and Qingyun Group, the rest were caused by the hedging and closing of long positions that were forced to be closed.

All the bulls were stunned in an instant.

Even as strong as Zhongxin and American capital are, they cannot close all of their huge long positions in just a few minutes. They can only be forced to enter the market and snatch short positions from Qingyun Group.

As a result, an even more severe "long-killing and long-trampling" effect emerged. The market counterparties were limited, but the positions that needed to be hedged and closed to survive were almost unlimited. Fortunately, domestic futures have a guarantee mechanism.

After three consecutive daily limit increases or decreases (10% each time; if the leverage exceeds 10x, all principal will be lost in one daily limit increase or decrease), the exchange will automatically hedge and settle all long and short orders.

This is to protect the interests of small and medium-sized investors and avoid maximizing losses. However, foreign trading platforms are not so gentle. Once a stampede occurs, it is very easy to lose all the invested funds on the same day.

What happened in Phoenix was not as simple as 27 tons of copper being transported out. The deeper meaning behind it made all financial institutions shudder.

What is smart manufacturing?
Bringing key raw materials under unified and standardized management means that the room for speculation in the futures market will narrow, which will be a long-term negative for large institutions.

Fortunately, Zhexi doesn't have to worry about the future, because it can't even get through the present.

Xu Xiang, who had completely figured out the key to the matter, no longer hesitated and shouted loudly: "Don't worry about the domestic long orders, sell as much as you can, and give priority to dealing with the long orders of US dollars in Chicago and New York exchanges."

After arranging the final battle royale, he immediately called his wife, who was the company's financial director, into the office, locked the door and made sure no one outside could hear him, then he said without hesitation: "The game is over.

Mr. Huang can no longer bear it. If he dies, our line will be finished. You can’t stay in China anymore. Go home immediately, get the passports from the safe and wait for me at the airport. "

The CFO burst into tears. "Has it come to this?"

In the last second, people were still talking about Phoenix City's move to cut off the source of funds, and they were about to win a great victory and reap tens of billions of RMB in profits. In the next second, heaven turned into hell and they lost everything.

No matter how strong your mental strength is, you can't turn around. The fact that you didn't collapse on the spot shows that you have strong mental strength.

Xu Xiang didn't have time to explain to her, "As for the specific route, I will call my friend right now and arrange for us to take a special channel.

As long as we can get out smoothly, with the money from the U.S. stock market and the overseas assets we have prepared in advance, we can live a good life in anonymity for the rest of our lives.

Stop having random thoughts, and don't call to inform other people. You must keep it secret and hurry up, otherwise you won't be able to leave. Contact us after you get out. Go quickly."

After arranging his escape route, Xu Xiang took out his phone and quickly called a few friends. They all had some resources that could save his life at a critical moment.

The devil can't be left behind. Even if Qingyun lets him go, those investors who invested money in Zhexi Capital will not let him go in the face of losing all their money.

Not to mention being involved in a bigger vortex, where people are eaten without leaving any bones. Once you go in, don't expect to get out easily in this life.

Fortunately, the news was still circulating in the upper circles and did not spread downward. Those friends asked about the investment returns with a smile when they learned that he was going to the United States to handle the huge overseas income.

No doubt about it.

"It will take at least two hours from now until we get on the plane. We can't just sit there and watch the market collapse, or these people will know the news soon."

Xu Xiang's brain worked quickly and he made the choice that was most beneficial to himself. He rushed out of the office, pretending to be confident of victory.

After calming down the chaotic trading team and company management, he said loudly: "Stop selling in the domestic market and buy everything. This is a trick. I just contacted the higher-ups.

The short side has completely failed, and a big reversal will soon come.”

Everyone looked at each other in bewilderment when they heard this, but the market's reaction would not be false, so why would they take the risk and enter the market and go long at this time?
Unfortunately, the boss has spoken and they have no choice but to do as he says.

Only his absolute confidants vaguely sensed that something was wrong, but when they wanted to ask Xu Xiang, they were rudely interrupted. He would quickly make a call with his mobile phone, and often convince the head of a financial institution to continue to go long in just a few words.

Seeing this, although everyone was still vaguely uneasy, they finally felt relieved. In fact, Xu Xiang was just acting. The situation was urgent, so who would dare to continue to buy? He was just taking advantage of the information gap to deceive his subordinates.

However, when he returned to the office and made a few phone calls, he was really advising his colleagues to go long together to save themselves. After all, if a stampede occurred, everyone would die.

"Old Xu, it's not that we don't want to help, but there's simply no fun left. President Chang just called us personally and asked us to do everything possible to recover the losses..."

During the call, the head of a familiar financial institution said bluntly, "It's not the right time to go long at this point. Let's take advantage of it. We are already on the chopping block. We can only do our best and hope for the best."

Giving up resistance completely would be tantamount to suicide.

But no one is willing to take on the responsibility at the height of the storm.

As a rule, all bulls can only gather together after the market closes to discuss countermeasures, and at the same time use off-market tactics to force the bears to find a way out, otherwise both sides will be destroyed.

Unfortunately, this time, everyone knows that it will probably be difficult to resolve the situation peacefully, because the short-selling opponents are the State Administration of Reserves, the proprietary departments of the five major banks, as well as the Qingyun Group and its allied groups.

The Zhongxin Group, which originally held a strong position in the domestic financial market, and the hot money from Jiangsu and Zhejiang have become the targets of hunting. The offensive and defensive situations have changed, and how it will end has become a concern for everyone.

But everyone knows that Zhongxin and Jiangsu and Zhejiang Capital are likely to suffer an unprecedented setback this time.

This is exactly the perfect result that Li Zehua wanted to see. The battle for industrial raw materials futures is just a tentative battle between the two sides. The next crude oil and natural gas market will be the official decisive battle.

If the Zhongxin Group can be driven out in advance, Dongda Capital, without any worries, will go all out and will inevitably give a great shock to Wall Street and launch a counterattack in many fields.

Taking advantage of the favorable opportunity of the final internal battle between Europe and the United States, the University of Tokyo has sufficient time to complete its own strategic adjustments!

Unfortunately, Xu Xiang could not see all of this. No matter how he lobbied, no one was willing to enter the market at this time. Everyone wanted to wait and see, and make moves based on the actual situation after the situation became clear.

No matter how urgent it is, you can't throw money into the water!

During this period, investors kept calling in. In this era of mobile Internet, any disturbance in the financial market can spread like wildfire in a moment.

It is understandable that everyone is concerned about the safety of the capital they have invested in Zhexi.

But Xu Xiang had no time to think about these issues. He could hardly protect himself. Looking at the annoying phone calls, he simply rejected them all and just kept asking about getting his passport.

The spouse on the other end of the phone didn't notice anything unusual.

But she didn't think about it. Nowadays even a cunning rabbit has three burrows, let alone a financial giant who manages a private equity fund worth tens of billions of dollars. Faced with the ever-changing financial market, a true master must anticipate defeat before victory and always consider the safety of retreat first.

So when Xu Xiang took out the cash he had prepared, a full set of identity passports (in other people's names), and a brand new, unopened smartphone from under the tiles in his office, it proved that he had been preparing for this day.

Asking the spouse to go home to get something and leave through special channels is just a sleight of hand to attract the attention of outsiders and buy the necessary time for escape.

"Don't blame me. The more people there are, the bigger the target will be. Besides, two hours is enough time for them to set up a trap for me to find."

He looked at the luxurious office he had spent a lot of money to decorate, and then looked through the huge French window at the crowd of people on the ground who were as small as ants, and muttered to himself: "What a pity, alas."

He only had time to utter a sigh before picking up his bag and going out without hesitation. When asked by his confidants, he always said that he was going to a meeting at the Shanghai Gold Exchange to discuss a solution.

No one dared to stop him. After deciding to continue to go long, they could only watch him go downstairs...

Similar scenes also took place in Shanghai, Jiangsu and Zhejiang, Shenzhen and various places in Hong Kong. The heads of financial institutions who had been trading and going long on raw material futures now sensed the dangerous atmosphere in the air.

The China Securities Regulatory Commission intervened at the first opportunity, and the National Development and Reform Commission and the State Administration of Reserves took unprecedentedly harsh intervention measures. The massive influx of short orders made financial speculators with a keen sense of nose feel the crisis coming suddenly like a storm.

Those who act decisively will immediately make a decision to protect themselves. Among the thirty-six strategies, running away is the best one. As long as they have money, they can live happily anywhere.

Staying means facing the most difficult problems. The amount of loss is not the problem. The key is those investors who lost hundreds of millions or even lost their fortunes.

Will they be let go? This is a question worth pondering!

Even public investment funds and financial institutions are extremely anxious at this time. They are not afraid of being sought for revenge, but the key is such a huge loss.

It is bound to face layers of review and investigation. Some things are worth at most four ounces if not weighed, but thousands of kilograms if weighed. In the financial industry, who doesn't have some messy past? Once the radish is pulled out, the mud will be exposed.

No one can have a good time.

As a result, the middle-level managers, realizing that they might be used as scapegoats and thrown out to appease public anger, also began to think of their own solutions, but they did not have that many resources at hand.

It will take some time to dispose of the fixed assets on hand. Even if you spend money, you won't have a good life.

Fortunately, they still have some time. After all, there are more than one or two financial institutions that have collapsed this time. Instead, there are systemic and large-scale problems. Even if the higher-ups want to investigate, it will take time...

"Mr. Li, congratulations. You have won a great victory and benefited greatly."

Facing the compliment, Li Zehua was neither sad nor happy, and said calmly: "I really hope that this kind of victory over our own people will not happen again next time, after all, it is the overall strength that is wasted.

But you are right in saying that if we all get rich together, and I make money, isn't that the same as you making money together?"

The other party was obviously stunned for a moment, then laughed and said, "That's the truth. Thank you Mr. Li for helping us make a fortune together."

Then, he hinted, "Do you need my help, the one inside?"

As he spoke, his palm made a motion of cutting across the neck. The meaning was obvious. A person who had completely lost his usefulness and intended to kill Li Zehua was gone, no matter how prominent he had been before.

Now you are not worthy to continue living.

Li Zehua didn't hesitate at all and looked at him twice more. "We are legitimate businessmen and we can't do anything illegal. People like this will be punished by God, so why should we get involved?

You go ahead, I have something else to do here, let's drink together next time when we are free."

"Okay, okay. It's my honor to meet a great man like you."

The visitor laughed loudly, but he also knew what kind of person Li Zehua was, so he would not hand over anything to him out of thin air. However, he was reluctant to give up the opportunity to get to know each other face to face, so he pestered, "I'm not busy.

No matter how big the event is, it is not as important as hosting you, Mr. Li. If you don't mind, I will host a reception for you in Phoenix City tonight. How do you think?"

"Having a late night snack in Phoenix?"

Li Zehua felt a chill rising from the back of his neck and subconsciously refused: "No, I have something else to do. I'll leave now."

After saying that, he left the hotel without looking back. As soon as he got in the car, he asked the driver to drive away. He didn't breathe a sigh of relief until he left the city and got on the highway.

This scene made the local boss dumbfounded, not knowing where he said the wrong thing.
"Sir, the lone man on a speedboat, who was trying to leave the coastline and board a ship on the high seas to go to Jiaobenji, has been detained. What do you think we should do with him?"

On the highway, Zhang Tao respectfully handed over the communication tool and briefly repeated what happened.

Li Zehua took the phone and said in a deep voice, "After we pry open his mouth and find out that he is of no use, we can hand him over to the medical team to make use of him."

As the words fell, the life of a financial genius who thought he had fooled everyone and overestimated his own wisdom and strength came to an end.

However, his time was not wasted until the last stage. Perhaps he will continue to "live" in another form, in the body of one or more of his kind. This can be regarded as his final atonement.

As the prices of industrial raw materials generally fall, Yanjing can finally free up its hands to fully deploy smart manufacturing and energy security strategies.
(End of this chapter)