Rebirth of the Age of Wealth

Chapter 378: Adding positions (one more update)

Li Weidong looked at the flashing numbers on the computer screen. This number was real money. He felt good, very good, very satisfied, and nodded frequently.

This is the charm of futures and the temptation of leverage. Even if the market fluctuates slightly, you can get huge returns. This market is always a battle between greed and human nature.

"Chairman, the market has closed. Here are all your order orders today. Take a look at it. If there is no problem, you need to sign it. We will file it and save it!"

Xu Yandeng walked in and told Li Weidong that he temporarily acted as Li Weidong's liquidator and was responsible for reviewing all orders after the closing of the day to check for errors.

This is a daily essential homework for fund management companies. All original records must be kept, and the daily rise and fall of all stock positions must be clearly recorded.

These records are the original vouchers, which can be well-documented and subject to institutional constraints during audits. This is why Li Weidong is assured that Xu Yandeng manages the company's billions of assets.

People are unreliable, only systems can!

Li Weidong took a few glances and then signed his name. He had done this process many times and was no stranger to it.

"How much money does the company have now?" After signing, Li Weidong suddenly asked.

"As of today, our total assets converted into Hong Kong dollars are approximately 2.74 billion. The specific data needs to be calculated and summarized before we can know it!"

Li Weidong frowned after hearing this. He still had too little money, or there was too little available money.

"About 20% of these funds are invested in the futures market, about 50% in the stock market, almost 20% in bonds, and about 10% in cash!"

Li Weidong thought about it for a while and realized that this allocation is relatively radical. Stocks and futures can account for 70%. General fund management companies will not have such a large proportion of futures.

Of course, this is also related to the small scale of the company. After all, Oriental Fund Management Company is only Li Weidong's private company and does not undertake the fund management requirements of external clients.

Li Weidong is selfish at this point. The management fees of private equity funds in the market are not low now, but they are not suitable for people with bugs like Li Weidong.

He has the golden finger of rebirth, and he will definitely be able to follow the trend of the times and make money without any problem.

"Only less than 300 million in cash?" Li Weidong was a little dissatisfied with the amount of cash, which was also too little.

"Our allocation takes into account the need for cash at any time. 20% of the bonds can be redeemed at any time, and some stocks with smaller positions can be sold. In fact, the cash we can withdraw in the short term is almost 1 billion!"

Xu Yanden felt helpless. When he had the most funds in his hands, he originally had five to six billion, but after several blood draws by Li Weidong, he still had so much left, which was pretty good.

For several companies recently established by Li Weidong, almost half of the funds used were provided by Dongfang Company, and the investment of Peking Capital in the United States also needs his support.

To a certain extent, Oriental Fund has become Li Weidong's cash machine, and Xu Yanden is deeply touched by this.

The predecessor of Oriental Fund was a business department of Peking Capital, which was an ATM for Li Weidong to withdraw money from the financial market.

Li Weidong has made a lot of investments in the past few years, and all he has spent in Europe and the United States is US dollars. In total, Li Weidong has spent almost all the money he earned in the Japanese foreign exchange market last year.

With only going out but not coming in, there will naturally be fewer and fewer, and the stock market in Hong Kong has been in decline in the past six months. Overall, it is good for Eastern Fund to be in a break-even state.

Investment is for profit, but profit takes a certain amount of time. So far, almost none of the companies under Li Weidong's name can provide considerable profits.

Xu Yanden thought of this, and Li Weidong naturally understood it, so he suddenly felt short of money again, but fortunately, in the short term, he had no financial needs.

Domestically, several companies under his name have self-production capabilities, and there is no problem in expanding production and development.

The initial development funds for the newly invested automobile factories and banks are already sufficient, and Li Weidong will not worry about future investment funds.

Several companies invested abroad have also improved. Skoda and Nokia have begun to make substantial profits. Maybe he will be able to see the money back at this year's shareholders' meeting.

Several companies invested by Peking Capital in the United States will probably be listed this year. There will be no problems in the internal circulation. From now on, they will only be Li Weidong's money-making machine and there is no need to continue investing.

Thinking of this, Li Weidong felt relieved again, nodded, stood up and took two steps, thinking to himself.

He invested a total of HK$200 million in the Nikkei Index contract. The margin system greatly magnified his risks, but the returns were also quite gratifying.

Li Weidong's current position is 200 million Hong Kong dollars. For every one percentage point drop in the Nikkei index, Li Weidong can earn almost 50 million Hong Kong dollars. A slight fluctuation can be hundreds of thousands or millions.

Although today's index did not drop much, it should be because the market has not yet become diligent. Of course, some people may not want the stock to fluctuate too much.

These people either bought call options or are the real authorities.

However, it is still unknown how long this situation will last. There are no statistics on the current disaster, or even public reports.

Maybe after the best rescue time has passed, the government will make a summary report, and by then the public will probably be enthusiastic.

"You first prepare one billion, buy put options on the Nikkei Index, and then gradually sell some stocks that are easy to sell, and use them as reserve funds to be ready for margin calls at any time!"

Li Weidong wanted to make a big bet and turn his bicycle into a motorcycle.

He has only spent money recently but not made any money, which makes him a little tight on funds now. If he really wants to do some big business, he may have to find a way to raise funds.

In this case, it is better to seize this opportunity and get some money from "friendly neighboring countries". The financing money needs to be repaid, but this kind of money is simply a capitalless transaction.

Moreover, even this part of the income obtained from the Japanese financial market does not entirely belong to Japan, and a considerable part of it belongs to international speculators like Li Weidong.

The famous Bahrain incident in financial history happened at this time. Some people lost money and others made money. Bahrain Bank could lose hundreds of millions of pounds, why couldn't Li Weidong make a little money?

However, it was impossible for Li Weidong to mention this kind of thing to Xu Yandeng, otherwise it would cause big problems. Of course, Li Weidong didn't know it yet, and Xu Yandeng was already suspicious of him.

Xu Yanden thought about it and was shocked. He knew that Li Weidong had made another big move. The investment of one billion was definitely a big sum for him.

Although he managed 40 to 50 billion in funds at most, except for Li Weidong's special requirements, he never invested more than 1 or 2 billion in any single item.

He has been engaged in finance for more than ten years now, so he naturally knows that eggs cannot be put in one basket. If the pot goes wrong, there will be nothing. He cannot bear this responsibility.

But now that the boss has asked for it, he must do it according to the boss's instructions. Although stocks are not cash, they are actually liquid assets and can be cashed out at any time in the short term.

"I'll do it now. There's still some time before Hong Kong Island closes. We can still sell some bonds. We will definitely be able to raise money early tomorrow morning!"

"I will discuss the transaction with Morgan, and I also need him to provide a guarantee. They are members of the world's major futures markets and stock exchanges, so trading is very convenient!"

Orient Fund Company is not a real investment bank. It is lucky to be a member of the Hong Kong Stock Exchange. It is impossible to become famous around the world.

Therefore, if Oriental Fund wants to trade the targets of other securities markets, it must do so through some large investment banks. Xu Yandeng comes from Morgan and is naturally willing to cooperate with them.

Li Weidong nodded and said he understood.

Li Weidong doesn't care who he cooperates with, as long as the commission is appropriate. No matter how small a mosquito is, it's still meat. If you can save a little, it's fine.

Xu Yanden walked out of Li Weidong's office, leaving Li Weidong sitting in the office drinking tea.

When Li Weidong first started speculating 200 million yuan, he was still unsure about the time of the earthquake and its impact.

Now that it has become a fact, we cannot let it go. In fact, Li Weidong did not know how much impact the earthquake would have on the Nikkei Index.

But he knew that Barings Bank collapsed as a result. Barings Bank bought a large number of call options on the Nikkei Index, causing huge losses. Since it lost money when it rose, it would certainly make money when it fell.

Thinking about it, this period was really a tragedy in the world's financial history. There was the collapse of Barings Bank before 327, and the two incidents happened at the same time.

In his previous life, Li Weidong was just a mediocre person who could only sit on the bench in the workshop and brag and chat with his colleagues.

He will not touch 327, but he will definitely touch the Nikkei Index, not because 327 does not make money, but because the Nikkei Index is safer and safer.

Between the world's second largest financial market and an immature small market, there is no doubt which one is safer.

Xu Yandeng raised funds very quickly. The volatility of some bonds and large-cap stocks was very low, and there were many buying and selling orders. He could sell at any time if he wanted to.

Hong Kong Island, a financial free port, makes it easy to exchange currencies. The Hong Kong dollar and the US dollar have maintained a certain exchange rate for a long time. Although it is a Hong Kong dollar, it is actually the same as the US dollar.

Before it was time to get off work, he came over to report to Li Weidong on the progress of raising funds.

It's not that he wants to be so fast, but that he must be so fast. Li Weidong's several shots have proved to be completely correct. Xu Yanden eagerly hopes to witness this miracle again.

For several days in a row, Li Weidong left early to go to work in the company every day.

Look for the position to be saturated, the reserved funds to be ready, and to be ready to add margin at any time.

In the past few days, although the Nikkei Index has fallen every day, the fluctuations have not been too big. However, these fluctuations have been amplified by leverage, and Li Weidong's book surplus has been spectacular.

Li Weidong has been thinking about it these days. More than one billion funds have been invested. If other situations arise in the meantime, the amount of margin call will give him a headache.

The key is that Li Weidong didn't know anything about the trend of the Nikkei Index after the earthquake. He knew that it was just the earthquake and the final bankruptcy of the Bahrain Investment Bank.

Theoretically, as long as BNP Paribas does not declare bankruptcy, it means there will still be room for the Nikkei Index to fall.

The earthquake has been well known to everyone. After two days of fermentation, and as more and more bodies were found as the rescue team entered, the market's reaction to the earthquake became more and more accurate.

The daily average index experienced a decent decline on Thursday, but it was only more than one percentage point.

On Friday morning, Li Weidong sat in front of the computer and waited for the Japanese stock market to open. He thought to himself that it was lucky that he was a Japanese stock market. If it were another country, the time difference would be too big and he would become a night owl.

There was no disturbance at the opening. Although it still fell, the decline was not significant, so Li Weidong didn't have much interest.

After watching the trend of the market with Xu Yandeng for a while, he said, "I guess that's it for today. Just keep an eye on it yourself. If you have any questions, call me!"

After speaking, Li Weidong pulled out his cock and left, returning to his office. Zhang Dongshuo quickly made a pot of tea.

He didn't know why Li Weidong came to the company frequently this week. Li Weidong didn't tell him anything to do.

But based on his observation and analysis in the past two days, Oriental Fund will definitely carry out some big operations.

What does Eastern Fund do?

Zhang Dongshuo knew very well that based on the time when Li Weidong came to the company, he knew that it must be related to Japan's financial market.

So during this period, he would also intentionally or unintentionally collect some news about Japan. As long as it was published in the newspaper, he would take it and give it to Li Weidong.

Although the boss didn't say anything, you could see the appreciation in his eyes, and Zhang Dongshuo worked even harder.

Of course, he didn't know some useful information. Li Weidong already knew it in advance. If he read the news in the newspaper and speculated in stocks, he would lose his pants.

The market closed at noon, and it wasn't time for lunch yet for Li Weidong, so he sat in the office and continued drinking tea and playing games.

But Xu Yanden came up.

"Chairman, look at this news!" Xu Yanden took out a piece of paper and handed it to Li Weidong with excitement.

Li Weidong took a look and saw that this was the earthquake news announced by the Japanese government at noon every day. This news was from today.

Li Weidong didn't pay attention at first, after all, it happened every day, but when he saw the number of casualties and estimated losses, he was shocked. This number was more than double yesterday's number.

What kind of reaction can be foreseen in the financial markets this afternoon?

"Let's go and eat!" Li Weidong didn't care about his minesweeper game, he was about to succeed.

He has to go to eat quickly, and after eating, he has to focus on the market.

At 11:00 Hong Kong Island time, the Japanese stock market started trading in the afternoon. The stock reaction to the news was relatively sensitive, and it plummeted after the opening.

Even if there was a slight rebound, it was quickly suppressed, and almost all stocks in the market fell except for stocks in the infrastructure and pharmaceutical sectors.

An earthquake can come at any time, killing so many people at once, and risk aversion is rising. Driven by this sentiment, stocks are falling regardless of whether they are related to the earthquake or not.

The Nikkei Index's decline has reached 5%, and this week's decline has reached about 7%.

In fact, this kind of decline is nothing new for the Japanese stock market. Usually, due to some selling, the market index will fall by more than 10% in a week.

But after this earthquake, such a big drop happened, which makes it very special.

"Can it continue to fall?" Li Weidong looked at the green market, exhaled a puff of smoke, turned to look at Xu Yanden and asked.

Xu Yanden was stunned for a moment. He didn't know whether Li Weidong's question to him meant a test or a real consultation.

If the test and teaching are better, it will be better if you are right. If you are wrong, there will not be much loss. At most, the leader will criticize you a few times.

If it is a consultation, it means that his answer will have some impact on Li Weidong. If there are problems with the operation and losses are caused, he will be responsible.

I took a day off yesterday, so I will finish one chapter today, and then another chapter tonight!

(End of chapter)