Rebirth without Regrets

Chapter 148 Let Soros work for him

As the helmsman of Quantum Fund, while Soros continues to make profits in the international financial market, he will naturally understand all aspects of the situation. Only by knowing the enemy and the enemy can you be invincible in every battle. Under such circumstances, Feiyuan Investment is very

It soon came into his sight.

As an internationally renowned investment guru, Soros has never looked down upon Easterners. He always believed that Easterners did not understand economics at all. However, the rise of Feiyuan Investment in the past two years has surprised him. Feiyuan Investment has grown from an unknown company.

In just a few years since its establishment, the capital of this small investment company has grown from a few million US dollars to a snowball-like speed. It can be seen in every international financial change, and it will take away a large amount of funds.

It is as if they know the entire market changes in advance, and can control the rhythm and trend appropriately every time, thus obtaining a large amount of extremely generous and astonishing profits.

The rise of Feiyuan has become a miracle in the international financial market. The growth rate is unprecedented in the world. I dare not say it is unprecedented, but it is at least unprecedented. Many companies have even regarded him as a weather vane.

In other words, as long as Feiyuan Investment is heavily involved, it will lead to a trend of following suit. Under such circumstances, although the returns of Quantum Fund are also considerable, compared with Feiyuan, it has completely lost its luster.

In order to understand Feiyuan Investment as much as possible, Soros spent great efforts to investigate the company and found that although Feiyuan Investment is headquartered in Hong Kong, its registered place is the British Virgin Islands. This has two purposes.

The first is to hide the company’s background from others and not want others to know too much about the company’s background; the second is to reasonably avoid taxes, because when registering a company in the Virgin Islands, it only charges management fees and does not charge any taxes, so it can save a lot of taxes.

Soros once carefully studied every investment made by Feiyuan, but the more he looked at it, the more he was shocked. Every intervention and exit was timed just right, and every time he seemed to get several times or even dozens of investments.

Soros once confidently believed that his talent and ability in financial operations were second to none in the world, but compared with every near-perfect operation of Feiyuan Investment, he seemed to be on par with Fireflies and Haoyue.

, I’m really a little embarrassed to say it.

The anomalies in the Japanese stock market have long attracted the attention of Soros. Although the entire Japanese island is indulged in unprecedented prosperity and madness. People even firmly believe that the Yamato myth that stock prices only rise but never fall, and land prices only rise but never fall, will never be broken, even if

On December 29, 1989, the Nikkei Stock Average reached an all-time high of 38915.87 points and then fell sharply. However, on January 3, 1990, when the "Nihon Keizai Shimbun" made stock market predictions for 20 famous entrepreneurs, everyone agreed.

He was optimistic that the stock price in 1990 would continue to rise to 42,000-48,000 points, but Soros believed that if God wants to destroy people, he must first make them crazy. The Japanese economy has fallen into extreme madness, so death is not far away.

Already.

To this end, he mobilized more than 20 billion US dollars to enter the Japanese market, and used the last crazy moment to make more than 30 billion from Japan, earning 150% in just six months. This has created a miracle in the international financial market.

But to his dismay, Feiyuan Company only invested a few billion in capital, but its income had exceeded his own Quantum Fund. Moreover, they did not stop there, but instead bought all the funds into stocks that fell.

Stock index futures.

Soros believes that he is relatively crazy when it comes to capital operations. When he makes high-risk, big-money decisions, he relies on his superhuman courage and steel-like will. He can remain calm, as if he is staying out of the incident. Maybe.

One of the biggest secrets to his ability to continuously create myths in the world's financial world is his superhuman psychological quality. But this Feiyuan Investment is obviously more bold and crazy than himself.

Although Soros has long known that the person in charge of Feiyuan Investment is a Chinese named Zhu Jianjun, and many people in the industry call him a "gold finger", but he obviously does not believe that this young man in his twenties can create

Such brilliance comes. In his opinion, there must be a powerful think tank team behind Feiyuan Investment, and there may even be a shadow of the country. Otherwise, it would be impossible for Zhu Jianjun, who was previously unknown, to take over Feiyuan Investment.

The company has grown to its current size and strength.

With these speculations in mind, and comparing the situation between Quantum Fund and Feiyuan Investment, Soros couldn't help but have the idea of ​​​​cooperating with Feiyuan. In his view, being able to join forces with such a company and form an alliance would

Then aren’t we the ones who have the final say on the financial order of this world?

Although Quantum Fund is not as famous as later generations, it is still very strong in the international financial market. Soros himself considers himself a figure. But to his chagrin, Feiyuan Investment obviously does not take it too seriously.

, he was rejected the first time he came to visit, and even Zhu Jianjun didn’t see him.

But the more this happened, the more solidified his judgment was. If he didn't have a strong background and full confidence in his own strength, how could he refuse such a good thing?

Therefore, Soros is not discouraged, nor does he expect that one or two contacts will achieve his goal.

With his persistence, he finally met Zhu Jianjun, who was nominally in charge, several times. However, the other person was not enthusiastic about cooperation. Instead, he proposed a plan to invest in the Quantum Fund. Soros was greatly surprised.

Quantum Fund evolved from Double Eagle Fund. It is the hard work of Soros and Rogers. It is like a child, brought up by themselves, full of emotions. They never thought that one day they would give this child to others.

.But the conditions proposed by Zhu Jianjun are very attractive: an investment of US$10 billion is required, and only 51% of the equity of the fund is required. The name of the fund and the management personnel will not change. Feiyuan Company only requires that when formulating the investment direction, it must have

Absolute dominance.

Regardless of the robbery of Japan this time, Quantum Fund invested more than 20 billion and gained more than 30 billion, but the vast majority of it was financed to help investors make money, and the fund only charged management fees.

In addition to fees and remuneration, the real total asset value of the fund itself was only US$6 billion in 1997. Therefore, with Feiyuan Investment, it can be said that even if Soros does nothing now, when the US$10 billion injected is in place, Quantum will

Not only will the fund's strength be greatly enhanced, Soros's personal assets will also increase several times from the original basis.

As for the issue of investment dominance, Soros actually doesn't particularly care about it, because Feiyuan Investment's investment vision and techniques over the years have far exceeded his own. In this case, why do we have to fight for this right? As long as Feiyuan Investment's decision-making can

Let the fund achieve more success and gains, so why should you refuse?

After repeated deliberation, and watching Feiyuan Investment make another huge profit from the stock index futures purchased in Japan, and poaching a total of hundreds of billions of dollars in Japan, Soros finally agreed to Zhu Jianjun's proposal in the first half of 1991.

Opinion, the two parties secretly signed an agreement, and without the knowledge of the world, the Quantum Fund had quietly changed hands.

After signing the agreement, Soros proposed the next investment plan, which was to attack the British currency.

In 1990, the United Kingdom joined the European Exchange Rate System, a new monetary system created by Western European countries. Soros believed that the United Kingdom had made a decisive mistake. If it seizes this golden opportunity, it will surely make extraordinary profits.

However, as soon as he put forward this point of view, Zhu Jianjun had already put the entire sniper plan on his desk, which shocked him. The point of view coincided with his own, and he had conducted a thorough analysis of the international situation.

It is a bold and reasonable prediction, and it is very detailed in many operational links. Even if a person who does not understand finance gets this plan, he can easily implement it step by step. It is better than what he wants.

You need to think more comprehensively, thoughtfully and meticulously. If the situation predicted in the plan comes true, according to incomplete statistics, the profit from this investment will far exceed the 200% that I initially expected, and may even reach 1000% -

―3000%.

Seeing this plan, Soros was very moved. No wonder Feiyuan Company is extremely agile in every investment move and is good at seizing investment opportunities. Once the time is right, it reacts quickly and hits the target with one hit. With such a smart operation plan, so what?

Maybe it was unsuccessful? When he asked to meet the person who made the investment plan, he declined politely to Zhu Jianjun. Although Soros was a little disappointed, he could understand that reputation is sometimes not a good thing for an investor, and

It would only bring disaster, and he believed that such an almost perfect plan, which required a lot of careful investigation and research and analysis, would never be formulated by one person.

But even so, Soros is very glad that he accepted the ownership of Feiyuan Company. Otherwise, with such a powerful competitor, even if he mobilized huge sums of money, he would only be able to drink some soup at most, and all the meat would be invested by Feiyuan.

It was snatched away. But now, I can enjoy this feast easily.

In fact, he didn't know that Leng Binghan had just improved Soros' own operations in his previous life based on the actual situation, making the sniper attack more powerful and effective.

The British pound has been the world's main currency for 200 years. When the gold standard was originally adopted and linked to gold, the British pound occupied an extremely important position in the world's financial markets. Only the First World War and the stock market crash in 1929 forced the British to

The government abandoned the gold standard and adopted a floating system, and the pound's status in the world market continued to decline. As an important institution to ensure market stability, the Bank of England is a powerful pillar of the British financial system, with extremely rich market experience and strong strength

.No one has ever dared to confront this country’s financial system.

Because the European exchange rate system will make the currencies of Western European countries no longer pegged to gold or the U.S. dollar, but to each other; each currency is only allowed to float within a certain exchange rate range. Once it exceeds the prescribed exchange rate floating range, each member country will

The central bank of a country has the responsibility to intervene in the market by buying and selling its own currency to stabilize the country's currency exchange rate within the prescribed range; within the prescribed exchange rate floating range, the currency of a member country can float relative to the currencies of other member countries.

With the German mark as the core. Long before the UK joined the European exchange rate system, the exchange rate between the pound and the German mark had stabilized at an exchange rate of 1 pound to 2.95 marks. However, the British economy was in recession at the time, and it was necessary to maintain such a high exchange rate as a condition.

Joining the European exchange rate system is extremely expensive for the UK. On the one hand, it will make the UK dependent on Germany and unable to act boldly to solve its own economic problems, such as raising or lowering interest rates when to protect its own economy.

To promote the depreciation of the national currency in order to benefit; on the other hand, it is also questionable whether the Bank of England has enough ability to maintain its high exchange rate.

Especially on February 7, 1992, 12 EU member states signed the Maastricht Treaty. This treaty made some European currencies such as the pound and the Italian lira obviously overvalued, and the central banks of these countries

Banks will face huge pressure to cut interest rates or depreciate. Can they maintain coordination on economic policies with Germany, which has a strong economy? Once the markets in these countries are turbulent and they are unable to resist, Germany, as a core country, will sacrifice its own country.

interests to help these countries?

Market insight determines everything, and wrong insight can lead to self-destruction. Soros’s genius lies in foreseeing future development trends faster than others. He had foreseen this as early as the signing of the Maastricht Treaty.

The European exchange rate system will be difficult to maintain coordination due to the economic strength of each country and their respective national interests. Once some of the "chains" that constitute the European exchange rate system become loose, speculators like him will take advantage of these loosenings.

The "chain" of the trend will attack, and other trend followers will follow the trend, making the exchange rate more volatile. In the end, the reliance on the trend chasing mechanism is much greater than the market's capacity to accept them, until the entire mechanism is destroyed.

Sure enough, less than a year after the signing of the Maastricht Treaty, some European countries found it difficult to coordinate their economic policies. When the British economy was in a long-term recession and was facing many difficulties, the British could not

The only feasible way to stimulate the country's economic development is to lower interest rates despite maintaining a policy of high interest rates. But if Germany's interest rates are not lowered and the UK unilaterally lowers interest rates, it will weaken the pound and force the UK to withdraw from the European exchange rate system. Although the UK

Prime Minister John Major has repeatedly stated that Britain will adhere to its policy of maintaining the value of the pound under the European exchange rate system, but Soros and other speculators have been increasing the size of their positions in the past few months.

Preparing for a sniper attack on the pound.

As time went by, the British government's economic policy of maintaining high interest rates came under increasing pressure. It requested the German Bundesbank to lower interest rates, but the German Bundesbank was worried that cutting interest rates would lead to domestic inflation and may trigger an economic collapse.

Rejected the UK's request to cut interest rates. The British economy is declining day by day, and the British government needs to devalue the pound to stimulate exports. However, the British government is restricted by the European exchange rate system and must try to maintain the exchange rate of the pound to the mark at around 1:2.95. The British government's high

The interest rate policy has been questioned by many financial experts, and domestic business leaders have strongly called for lower interest rates.

The exchange rate of the pound against the mark continued to fall, from 2.95 to 2.85, and then from 2.85 to 2.7964. In order to prevent speculators, the British government made the exchange rate of the pound to the mark lower than that in the European exchange rate system.

The prescribed lower limit was 2.7780, and the Bank of England was ordered to purchase 3.3 billion pounds to intervene in the market. However, the government's intervention did not generate good expectations, which made Soros more convinced of his previous judgment, and he decided to attack when the crisis emerged.

In September 1992, speculators began to attack the weak currencies in the European exchange rate system, including the British pound, the Italian lira, etc. Soros and some mutual funds and multinational companies that had long-term arbitrage operations sold weak European currencies in the market, causing

The central banks of these countries had to spend huge sums of money to support the value of their respective currencies.

The British government plans to borrow trillions of pounds from international banking organizations to prevent the pound from continuing to depreciate, but this is a drop in the bucket. Soros alone spent 10 billion U.S. dollars in this battle with the British government. Soros was in this world.

In a massive gamble, he sold US$7 billion of British pounds and purchased US$6 billion of strong currency, the mark. At the same time, Soros considered that the depreciation (appreciation) of a country's currency usually leads to the rise (fall) of the country's stock market.

, bought another US$500 million worth of British stocks, and sold a huge amount of German stocks. If Soros was the only one to compete with the United Kingdom, the British government might still have a glimmer of hope, but the participation of many speculators around the world has made both sides of this contest

The disparity in power doomed the British government to failure.

After placing the bet, Soros began to wait. In mid-September 1992, the crisis finally broke out. Rumors that the Italian lira was about to depreciate were circulating in the market, and lira selling poured out. On September 13, the Italian lira depreciated by 7%.

It is still within the floating range defined by the European Exchange Rate System, but the situation looks very pessimistic. This gives Soros every reason to believe that some members of the European Exchange Rate System will eventually not allow the European Exchange Rate System to determine the value of their own currencies.

These countries will exit the European exchange rate system.

On September 15, 1992, Soros decided to short the pound in large quantities. The pound-to-mark ratio fell all the way to 2.80. Although there was news that the Bank of England purchased 3 billion pounds, it still failed to stop the pound's decline. By the evening

At the close of the market, the exchange rate of the pound against the mark had almost fallen to the lower limit stipulated by the European exchange rate system. The pound was on the verge of exiting the European exchange rate system.

The British Chancellor of the Exchequer took various measures to deal with this crisis. First, he once again asked Germany to lower interest rates, but Germany once again refused; helplessly, he asked the Prime Minister to raise the country's interest rates by 2% to 12%, hoping to pass high interest rates.

To attract the return of currency. In one day, the Bank of England raised interest rates twice, with interest rates as high as 15%, but still had little effect. The exchange rate of the pound still failed to stand at the lowest limit of 2.778. In this battle to defend the pound

In the action, the British government used foreign exchange reserves worth US$26.9 billion, but ultimately suffered a disastrous defeat and was forced to withdraw from the European exchange rate system. The British called September 15, 1992, the day of withdrawal from the European exchange rate system, "black

Wednesday". Subsequently, Italy and Spain also announced their withdrawal from the European exchange rate system. The Italian lira and the Spanish tower began to depreciate significantly.

But as another aspect of the competition with the British government, Soros was the biggest winner in the attack on the pound. He was called by The Economist magazine as "the man who defeated the Bank of England." In the end, Soros was

In the two weeks since Black Wednesday, Soros has made nearly $1 billion from short trades in sterling, with long trades in British, French and German interest rate futures and short trades in the Italian lira bringing his total profits to as high as $2 billion.

U.S. dollars, of which Soros' personal income accounted for 1/3. In this year, Soros's fund increased by 67.5%. He also ranked among the Wall Street income of "Financial World" magazine with a net profit of 650 million U.S. dollars.

Top of the ranking list.

Now, with Leng Binghan's improved sniper plan and the strong backing of Feiyuan Investment, he has used the leverage principle to control hundreds of billions of dollars in funds this time. He has dominated the international financial market for so long,

This is the first time that Soros has controlled such a huge amount of funds to create a miracle of an individual defeating a country. For this, his heart is full of excitement, fighting spirit and an unprecedented glory.

And just when Soros was secretly making arrangements according to Leng Binghan's plan, Zhu Jianjun, who was preparing for a wedding in Hong Kong, was assigned to the Soviet Union by the "evil" Leng Binghan. The task given to him was also very simple, which was to use Feiyuan

The investment was used as a guarantee to smoothen various relationships, make large-scale loans from major banks in the Soviet Union, and use these loans to purchase Soviet oil fields in Siberia and other facilities.

The disintegration of the Soviet Union is imminent, and Leng Binghan will not miss such an opportunity to greatly benefit the Soviet Union's national wealth. Moreover, corruption is currently rampant among the privileged classes in the Soviet Union. As long as there are enough benefits, there is nothing they dare not do. Therefore, under Zhu Jianjun's

Under the silver bullet offensive, it was easy to obtain a ten-year loan of 70 billion rubles from major Soviet banks, equivalent to more than 80 billion U.S. dollars. However, the purchase of oil fields was more difficult. Compared with the current Soviet Union, which is still state-owned, Romanashkin

Oil fields, such as Samatrol Oil Field and Tyumen Oil Field, are not for sale.

But Leng Binghan doesn't mind. The oil fields he can buy are better, and if he can't buy them, forget it. His main purpose is to get a loan.

On August 19, 1991, the conservatives in the Soviet Communist Party launched an unsuccessful coup and placed Soviet President Gorbachev under house arrest while he was on vacation on the Black Sea. They attempted to take back the powers delegated to the union republics and at the same time terminate the

Successful economic reforms. However, due to the joint opposition of the people, the army and most members of the Soviet Communist Party, the coup failed after only three days. Although Gorbachev resumed his post after the coup, the Central Committee of the Union was no longer able to control it.

In the process of quelling the coup, the separatist forces in the union republics were greatly strengthened. Russian President Yeltsin ordered the declaration of the Communist Party of the Soviet Union as an illegal organization and restricted its activities in Russia.

The disintegration of the Soviet Union had a huge impact on the economies of the former republics. Taking Russia as an example, in 1985, the official exchange rate of the Soviet Union was approximately 0.87 rubles per US dollar. However, as of July 1, 1992, after the disintegration, the official exchange rate

It has become 125.26 rubles for 1 U.S. dollar, and the exchange rate on May 31, 1993 has reached 1,012 rubles for 1 U.S. dollar. The ruble revaluation carried out by the Russian government still cannot stop the wave of exchange rate depreciation. By January 1, 2000, 1

The US dollar can be exchanged for 28.5 rubles, which is 28,500 old rubles.

According to this calculation, Feiyuan Company borrowed more than 80 billion U.S. dollars in the first half of 1991, and when it was due to be repaid in 2001, it only needed to repay more than 3 million U.S. dollars with interest. Is there anything in the world that is more profitable than this?

Buying and selling? For such a generous donation from the Soviet Union, Leng Binghan could only accept it unceremoniously.