God of Rebirth Trader

1998, August 17.

After encountering stubborn resistance in the foreign exchange market, international speculators turned to the stock market to continue their attacks, continuing to establish short positions in stock index futures and selling large quantities of blue chip stocks.

Amid the panic, the Hang Seng Index plunged to close at 6,660.41 points, a five-year low.

From the peak of the Hang Seng Index on August 7, 1997, to August 17, 1998, in just one year, the Hang Seng Index had fallen by around 10 points.

The drop was as high as 60%, which can be described as a heavy loss.

....

"Awei, two more private equity fund managers jumped off the building just now." The third uncle had just come back from outside and said still with lingering fear.

In the past, he had heard people say that people who speculate in stocks or finance would jump off buildings. He thought it was a joke, but now that he had finally seen it with his own eyes, he was inevitably a little sad.

"It is true that many private equity funds have liquidated their positions recently and suffered serious losses," Li Xi'er also said.

Nowadays, people go to the rooftop almost every three or five times in Central.

The sound of the ambulance will linger in my ears from time to time.

Many people don't understand why financial practitioners jumped off the building when the stock market plummeted.

Fund companies are divided into public offerings and private placements.

The manager of a public fund earns management fees. Whether the fund falls or rises, it has nothing to do with him.

However, if the performance is too poor, it will affect the overall fund size, thereby indirectly affecting the fund company's income.

Publicly offered fund managers are similar to people who work in state-owned enterprises. They receive high salaries every month. Although they may be laid off due to poor performance, they will never jump off the building.

If the fund performance is not good, for them, it will just mean that there is no year-end bonus.

So you will often see some fund managers who manage terrible funds and lose so much money, but they are not fired.

Private equity is completely different. When designing product structures, many small private equity firms often have to pay out of their own pockets to subscribe for inferior shares in order to gain the trust of customers, using this as a safety cushion to protect the safety of priority shares (customers).

It's a bit like a mortgage.

To give the most common example, if a private equity fund manager wants to issue a private equity product with a scale of 100 million, he will first have to spend 20 million himself to use the remaining 80 million client funds as bulletproof vests.

If the market fluctuates and you lose 20%, the private equity fund will bear the loss of 20 million, and the remaining 80 million is the client's money, which they can redeem at any time, which is equivalent to a forced liquidation of your position.

If all the client's funds are withdrawn, the only one who loses is you, and you don't even have a chance to make a comeback.

For many small private equity funds, if you don't do this, no one will invest in your fund.

It has to be said that this is also a helpless move.

This 20 million is likely to be the lifetime savings and achievements of the private equity fund manager, or even pieced together by relatives and friends.

Once there is a loss or liquidation, many people will not be able to bear such a blow and choose to go to the rooftop to start a new life.

"In this industry, some people make money while others lose money. If you don't have a strong psychological quality, you will leave the industry sooner or later." Chen Weidong leaned on his chair and said calmly.

He has seen this situation countless times in later generations, and he will no longer be touched by it now.

Chen Jie took a sip of coffee and said: "In recent days, the Hang Seng Index has been like riding a slide. It has dropped to 6660.41 points. There are also many investors from the outside world begging us to save the market. What do you think, Wei?"

Infinite Corporation had repeatedly rescued the market at the beginning of the year, keeping the Hang Seng Index above 8,000 points. Only then did the subsequent rebound come, giving many people a chance to breathe.

But now, the Hang Seng Index has dropped to more than 6,000 points, but Infinite Company seems to have disappeared, unmoved at all.

Many investors once speculated that the boss of Infinity had emptied his family fortune by doing charity, and that he no longer had any energy left to carry out "charity"?

Therefore, many reporters and paparazzi hang around the downstairs of Infinity Company every day, hoping to capture some valuable news.

Instead of taking pictures all day long of a certain rich man, the son of a rich man, going shopping with a certain female star, buying luxury goods, going to high-end hotels, and only coming out at eight in the morning... this kind of street stall news.

Now that the economy is in recession, people in Hong Kong have paid much less attention to these gossipy news in the entertainment industry.

If you shoot these news, the magazine won't be able to sell a few copies.

Everyone is working hard to live, who has time to care about this?

Considering that Infinity Company has indeed been silent for too long, it may be almost forgotten by the Quantum Fund.

Chen Weidong felt that it was time to give them some eye drops.

Don't let Soros get too arrogant.

....

That afternoon.

The general manager of Infinity Company, a well-known philanthropist, a financial tycoon, and the strongest investment genius in history - Chen Jie.

At the Hong Kong Stock Exchange, in full view of everyone, an extremely crazy thing was done!

In front of hundreds of reporters, he opened a stock index futures account and spent more than HK$2 billion on the spot to purchase 100,000 Hang Seng Index futures contracts - going long!

Moreover, he stood at the door of the Stock Exchange, printed out the futures contract, and held it high for all reporters to take photos.

In front of countless flashlights.

He declared in a high-profile manner: "The stock market has completely bottomed out. 6,500 points will be the lowest point in the Hong Kong stock market in the next 30 years. You will never even encounter this kind of opportunity again!"

"If you don't buy the bottom right now, you will definitely regret it for the rest of your life!"

"A few years later, when you face a poor family and your children ask you why your family is so poor, you will definitely think of what I said today and cry bitterly... Do you regret that you did..."

Chen Jie's words immediately caused an uproar.

Countless people were already going crazy. They pushed forward desperately, shouting at the top of their lungs, wanting to personally ask Chen Jie if he had any inside information and if Infinite was preparing to bail out the market again...

Even the experienced Xiangjiang reporter was overwhelmed by the crowd, so much so that the staff of the Stock Exchange had to rush out to maintain order at the scene to prevent a stampede.

Chen Jie stood at the entrance of the Stock Exchange and accepted an interview with the reporters on site under the spotlight.

He was high-spirited and pointed at a beautiful reporter.

It turned out to be from Phoenix TV. She said excitedly: "Mr. Chen Jie, we want to know where you got the confidence to think that the stock market has reached the bottom now?"

"I am optimistic about the future development of Hong Kong's economy and believe that the stock market has returned to its value now. It is absolutely safe to buy the bottom at this point!" Chen Jie said in a serious tone.

"Mr. Chen, are you provoking Soros and other Western capital giants with this move?" A reporter from Oriental Newspaper finally squeezed to the front and asked hurriedly.

"I advise Soros and others to leave the Hong Kong stock market as soon as possible, otherwise they will be beaten to pieces, including some speculators in Central. It's not too late to stop now!"

"Mr. Chen, can you speak more clearly?..."

Facing the siege of many reporters, Chen Jie also gained some experience and skipped the questions if he didn't want to answer.

After all, there were so many people, and he really couldn't handle them.

One of the male reporters was very enthusiastic and kept shouting his name. Chen Jie immediately clicked on him to ask questions.

"Mr. Chen, you are my idol! How to evaluate? Western public opinion jokingly said that Hong Kong has become an "ATM" for international investors. Once they are short of money to spend, they only need to press a few buttons on this ATM.

Spit out the money."

Chen Jie felt secretly happy. He didn't expect that he had fans. He grinned and said:

"Haha, I think Soros and the others may be short-sighted and mistake the slot machine for a cash machine."