Reborn as a tycoon in Hong Kong

Before deciding how to operate, Lin Baicheng first calculated his current investment in gold futures.

First of all, around November last year, a US$100 million loan was borrowed from Goldman Sachs using shares of Galaxy Games. It was originally intended to be used to acquire Wharf. Later, due to Li Jiacheng's intervention, the acquisition failed, so the money was used to invest in gold. For futures, using 5 times leverage, the cost of buying at that time was $163 per ounce.

Then came Bailong Commercial Co., Ltd.’s $10 million principal, using 10 times leverage and a cost price of $182 per ounce.

Finally, there are the ones I bought just a few days ago. They are Hutchison Whampoa’s principal of US$150 million, using 5 times leverage with HSBC, and the cost price is US$188/ounce; Lin Baicheng’s own capital of US$100 million was purchased by Standard Chartered The bank used 5 times leverage and the cost price was US$188.5 per ounce; the principal of US$100 million was used by Mitsubishi Bank with 5 times leverage and the cost price was US$189 per ounce.

As of now, all gold futures orders are profitable. When using 5 times leverage, they have made at least a dozen points.

Calculated in terms of financing leverage funds, Lin Baicheng invested a total of US$2.35 billion in long gold futures, which is already a large long position.

Calculating the capital of more than 2 billion U.S. dollars, if the gold price really adjusts, even if it only adjusts by 5%, it will still be 100 million U.S. dollars, which is not a small sum for any country in this era.

Therefore, Lin Baicheng really couldn't remain indifferent.

"First of all, we must make it clear that the long-term trend of gold prices will not change. The highest price in 1980 exceeded US$800 per ounce."

“Therefore, although many institutions this time believe that the price of gold cannot break through the price of 200 US dollars per ounce and will fall back, this is only a possibility and not 100% certain, so I cannot cancel all long futures orders. Not to mention shorting everything. If the price of gold can exceed 200 US dollars per ounce this time, but I short everything, then I will have to lose my life, so this is definitely not advisable."

"However, there is still a possibility of a correction, and this possibility is not small, so I can't do nothing. After all, a 5% correction will cost me more than $100 million."

"The general direction of going long remains unchanged, but I have to prevent the losses caused by the correction of gold prices, so it is obvious what to do."

After some thinking, Lin Baicheng made a decision. However, he decided to wait and see what Yuan Tianfan on the other side of Xiangjiang said. Yuan Tianfan's views were also one of the basis for his reference.

In the last test, the buying cost price of Yuan Tianfan's group was $0.5/ounce lower than that of Anyuan's group. Obviously Yuan Tianfan's group has higher capabilities. Even though it was only 0.5 US dollars per ounce, Yuan Tianfan and others operated US$750 million, saving Lin Baicheng about US$2 million.

It can be seen that a capable talent is indeed very important. Although the salary must be higher, the benefits it can create are also more and it is worth the price.

Nearly an hour after Lin Baicheng contacted Cheng Yufeng, Cheng Yufeng reported the situation to Lin Baicheng. Yuan Tianfan believes that if the price of gold does not touch or exceed US$200 per ounce in the next three trading days, it is very likely that an adjustment will occur. If an adjustment occurs, we need to observe whether it will fall below the last adjustment low of US$180 per ounce. Once it falls below, there will be another wave of decline.

On the contrary, if the price of gold touches or exceeds 200 US dollars per ounce within three trading days, then the possibility of gold price adjustment is unlikely. On the contrary, there is more room to rise, and we should continue to go long.

In general, you should make decisions based on trends and follow the market.

Lin Baicheng had a plan. The futures market was unpredictable, especially at such a critical price level. Short-term changes were extremely fast, so he needed to make arrangements in advance. Otherwise, he would have to wait for the gold price to choose a direction and then he would have to do whatever he wanted. That's too late.

Because the relationship between Xiangjiang and Tokyo was during the day, Lin Baicheng asked Cheng Yufeng to spend money to hire Yuan Tianfan as a consultant for a few days and go to London with Anyuan. Once the rise in gold prices encountered obstacles and there was a trend of adjustment, they would immediately turn from bullish to bullish. Short, also use 5 times leverage to short gold futures. If the gold price breaks through 200 US dollars per ounce, then you will naturally continue to go long. If the gold price first adjusts and then breaks through, you will continue to go long, using 5 times leverage as always.

In Tokyo, Lin Baicheng contacted Haruko Mouri and asked Haruko Mouri to do the same. If there was an adjustment, he would go short, and if there was no adjustment, he would go long. The capital used has always been 10 million US dollars, and the leverage is 10 times. This is true regardless of long or short positions.

As for Lin Baicheng's own US$300 million in funds, Lin Baicheng also has arrangements. Among them, the principal of US$200 million using Standard Chartered and Mitsubishi channels remains unchanged. Regardless of whether there will be adjustments this time, nothing will be done.

The first US$100 million of funds to be used through Goldman Sachs channels will be delivered during the day tomorrow, and the long futures orders will be delivered, and then the funds will be left unmoved without any operations.

Lin Baicheng is generally long-oriented, so he only uses part of his funds to go short, and is ready to go long again at any time. In this way, if the gold price exceeds 200 US dollars per ounce, he will definitely make a lot less money, but the loss will not be too big and he can accept it.

And if the price of gold really adjusts, Lin Baicheng will not lose money. He has 850 million US dollars in operable funds for short selling, and he will also make a small profit. Although the US$1 billion of untouched funds suffered a loss, as long as Lin Baicheng did not sell, he would still be able to make a profit when the price of gold rose in the future. In the short term, it would just be a paper loss.

The next morning, Lin Baicheng took Isabella to Goldman Sachs, found Wade Thomas, and asked him to arrange for the trader to deliver his futures orders, so that the funds could be pocketed first.

Wade Thomas naturally had no objection and arranged for someone to do it.

Lin Baicheng also contacted Phil Smith. He told Phil Smith that he had sold part of the futures orders and left part untouched. As for what Phil Smith wanted to do, it had nothing to do with him.

Although the futures orders are about 600 million U.S. dollars, they are not very large in the entire gold futures market, so it only took less than two hours to complete the delivery. All futures orders were sold, and the average selling price was 195.8 US dollars/ounce, compared with the cost price of US$163/ounce, it has increased by as much as 20%.

Lin Baicheng's principal was US$100 million. Because Lin Baicheng used 5 times leverage, his profit this time was US$100 million plus more than US$600,000.

All the money was temporarily placed in that account and was not transferred out. Because if the settlement is transferred out, Lin Baicheng will have to settle half a year's financing interest with Goldman Sachs. The problem is that there are still about two months left before half a year. To settle now is to lose money, and the financing funds will be used for two months less.

Also, during settlement, Lin Baicheng will have to pay taxes on this profit. No matter whether he makes a profit or a loss next time, he has to pay taxes on what he makes this time anyway.

But if it is not settled, it is not considered profitable for the time being, so no tax is required. If he continues to operate next time and loses the profit he made this time, it means that Lin Baicheng has not made any money. If he settles the business at that time, he will not have to pay a penny in taxes.

Anyway, Lin Baicheng had no need to use the money for the time being, so it was more cost-effective not to settle it first, so he did not settle it and put the money in his account for the time being.

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