Reborn in America, I'm serious about making money.
Chapter 174 Win-Win? I Win Twice?
On Monday, Zhang San dragged his tired body into the trading room, next to a radiant Zhou Huimin. Their strange appearances were actually secretly despised by the veteran traders.
You've got the money to play with high-end stuff, but your body can't handle it, right?
This is what most people think, but the truth is that yesterday, Zhou Huimin started playing freely, and then Zhang San got hooked and played even more happily than Zhou Yunu. Moreover, as the boss, he could play for as long as he wanted, and no one dared to say anything about losing money. That's how tough he was.
He's very tired, which leads to misunderstandings; but he doesn't care. So what? He's so tired, you can't have it either. You're all so envious.
I came here today, naturally to check the market situation early.
Through so many years of experience, he has a general understanding of the trend of the US dollar: first, the island nation's bubble burst, those speculative funds ruthlessly attacked the drowning dog, and then closed their positions, cashed out, and left.
These restless funds quickly found an outlet, investing in Asian countries that are somewhat similar to island nations before the rise of the internet.
Now is the time for them to reap the rewards, and naturally they are preparing to harvest the most profits and then leave.
They not only gained extremely high profits, but also other tangible and intangible assets.
Ultimately, these funds began to flow back to North America and were used in internet speculation, which fueled the North American internet bubble.
Following the onset of the Asian financial crisis, Hong Kong was plunged into tension and uncertainty. Financial markets were turbulent, the stock market plummeted, exchange rates fluctuated wildly, businesses faced bankruptcy, and large numbers of workers lost their jobs. An atmosphere of anxiety and unease permeated the streets, with people hurrying about, their faces haggard.
Citizens tightened their belts and cut back on spending. Shops and restaurants were deserted, business was sluggish. The once bustling commercial districts became quiet, and the former prosperity seemed to have vanished overnight. However, the people of Hong Kong demonstrated remarkable resilience and solidarity.
A large portion of Zhang San's funds has already entered Wall Street in New York, joining the ranks of those speculating on the Internet.
"This is smarter capital than those speculative funds, hehe..."
In Hong Kong, he dared to act recklessly, but in North America, he didn't dare. Not for any other reason than that he only dared to go long, not short. Moreover, he started selling those stocks in 2000, not for any other reason than that he was afraid of being caught red-handed.
Looking at the Hong Kong stock market being shorted, and thinking about the stories of the founder of Liangzai Fund that have been circulating everywhere in Hong Kong recently.
This is clearly spreading fear and panic.
With billions of dollars in capital, the Liangzai Fund could not possibly shake the financial system of the Far East; under such circumstances, how would the Liangzai Fund operate?
Of course, the goal is to get retail investors to believe those rumors, and many people actually believe those rumors.
A person who can take on an entire country single-handedly naturally inspires awe. What they don't realize is that one person cannot possibly take on an entire country alone. If it weren't for the speculative capital that later realized the high probability of short selling, they would never have swarmed in and, under the onslaught of a pack of wolves, had brought down the old empire.
This is the lever principle and the avalanche effect. Westerners should believe in Archimedes' saying: "Give me a lever long enough and a fulcrum on which to place it, and I shall move the world."
This statement is incredibly boastful, and it has naturally led to the creation of many financial instruments, all of which are derived from this statement.
Liangzai Foundation also did something else: it stirred up people's emotions. Under the influence of Liangzai Foundation's brilliant track record and the encouragement of a group of people, everyone panicked when they heard that the wolf was coming.
These people, consciously or unconsciously, became followers, joining these big short sellers in shorting their own assets.
Zhang San could tell from the conversations in the tea restaurant how easily retail investors blindly follow the crowd; even he himself would sell his stocks when he knew someone was shorting the market.
This is unavoidable. If it were Zhang San himself, wouldn't he do something? Like make a fortune during a crisis?
How did these Hong Kong business tycoons rise to power? Didn't they seize opportunities during crises, buying high and selling low, to achieve their success?
Li Ka-shing is a prime example of this kind of person. Looking at his history of making his fortune, every time he rose to prominence, he found opportunities in crises.
During the 1967 riots, he made large-scale acquisitions of real estate properties; after the 1973 stock market crash, Li Ka-shing, who never took out loans, took out large-scale loans and listed companies in Canada and London to raise funds to acquire land and listed companies; during the 1987 stock market crash, he launched a full-scale attack.
So, being able to foresee future trends, coupled with boldness... Boss Li only makes moves when he's confident, so he's naturally quite skilled; otherwise, he wouldn't be called Superman.
Since he can see opportunities in crises, Zhang San is no less capable than him; he knows even more. Since history is irreversible, we must forge ahead.
"Pass the order to increase short selling pressure."
Actually, there's another thing that's been happening recently. Those short sellers have already approached Golden Globe Bank with a simple goal: to borrow Hong Kong dollars as leverage to short the Hong Kong dollar.
This is normal. Not only Golden Globe Bank, but also HSBC and Hang Seng Bank in the HSBC group, as well as other banks, have all been visited by these people who borrow Hong Kong dollars from them.
This is unavoidable; banks need to make money, so they naturally cannot escape these kinds of businesses.
A bank's profits come from sources including but not limited to loans to businesses and individuals, interbank lending, private banking, and retail banking.
Since someone is borrowing money, Golden Globe Bank will definitely lend it. However, Golden Globe Bank doesn't have much Hong Kong dollars; it has a lot of US dollars. The main reason for this is that Zhang San has exchanged a large amount of Hong Kong dollars for US dollars, just waiting for these short sellers to come and short the market, and then exchange it back for Hong Kong dollars. Anyway, for the next twenty years or so, the exchange rate of Hong Kong dollars to US dollars will still be around 7.8.
Golden Globe Bank's operations not only earned them interest, but also allowed them to profit by going long when the Hong Kong dollar was shorted and the price reached a certain level. Why not do it?
Compared to other banks, Golden Globe Bank's sudden increase of 10% in interbank lending rates was met with disdain from other banks. However, it was their right to do so, and even so, people still borrowed, and borrowed a lot.
"What's this called? Profit maximization? Or a win-win situation? I've won twice again?"
Zhang San sat there in a daze, staring at the wine glass in his hand, which he was swirling. The wine inside was a little red; it looked pretty, but it resembled blood…
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