Reborn as a tycoon in Hong Kong

After returning to the hotel, Lin Baicheng found time to contact London and Tokyo respectively.

London and Tokyo had fewer funds to buy gold futures, so they sold faster and all were sold.

First, in London, at the end of February, Lin Baicheng raised US$500 million from Standard Chartered Bank with a principal of US$100 million to buy long gold futures. The average cost of the purchase at that time was US$188.5 per ounce. This time he sold The average price is US$237.18 per ounce.

The profit this time was not very large, only US$125 million was left after deducting handling fees. However, this US$125 million will also deduct 8 months of financing interest. The annual financing interest is 9%, and the 8-month financing interest is 6.75%, which is US$33.75 million.

As a result, the real profit belonging to Lin Baicheng is US$91.25 million, which is less than 100 million.

Lin Baicheng decided to reward the team with US$1.25 million as a bonus. In this way, his profit would be US$90 million. After deducting the taxes to be paid, these profits would be the profits that truly belong to Lin Baicheng.

In addition to Lin Baicheng's private investment, there is also a principal investment of HK$18 million from Yum Fund in London. The buying cost price is US$172.8/ounce and the selling cost price is US$237.2/ounce, an increase of about 37.27%.

With ten times leverage financing, he operated 180 million Hong Kong dollars to long gold futures. After deducting handling fees, the final profit was nearly 67 million Hong Kong dollars.

This investment was leveraged financing in May. A total of 5 months of financing interest, which is HK$6.75 million, will be deducted, so the final remaining profit is HK$60 million.

This is the fund's profit. Lin Baicheng is not preparing to settle it for the time being. The profit plus principal of 18 million Hong Kong dollars will still be placed in HSBC's account for the time being, so naturally there is no need to deduct taxes.

Then there is Mitsubishi Bank in Tokyo.

Also at the end of February this year, we used US$100 million in principal financing and US$500 million in funds to be long gold futures. The buying cost price was US$189/ounce, and the average selling price this time was US$237.4/ounce, about 25.61%. increase.

After calculation, the profit is US$127.5 million. There are also 8 months of financing interest to be deducted. The annual financing interest is also 9%. The interest for 8 months is 6.75%, which is US$33.75 million.

Yuan Tianfan's ability is obviously higher than that of Anyuan, and the average selling price is higher. In addition, the team is led by Haruko Maori, so Lin Baicheng decided that the bonus for the team in Tokyo would be higher, with a total bonus of 1.75 million US dollars.

As a result, Lin Baicheng's profit was left at US$92 million, which was slightly higher than Standard Chartered's.

Lin Baicheng is also prepared to take away all the profits from Standard Chartered and Mitsubishi, but these profits will still have to be taxed. The specific amount of tax deductions will also be determined by the team below. As for the principal of US$100 million in each of these two places, Lin Baicheng is not ready to take it away for the time being and will leave it with these two banks first.

In addition to Lin Baicheng's own private investment in Tokyo, there was also the gold futures investment of Bailong Commercial Co., Ltd., which he cooperated with Iwasaki Mineryu, which was also sold this time.

Bailong Commercial Club initially only used US$10 million to be long gold futures, but later earned US$18.5 million. Lin Baicheng used US$28.5 million in principal leverage to raise US$200 million to be long gold futures, and the purchase cost price was US$164.3/ ounce.

The average price of this sale was US$237.38 per ounce, an increase of about 44.48%. After deducting handling fees, the profit was US$88.5 million. The leveraged financing of US$200 million was at different times, with US$100 million at the end of February and US$100 million at the end of April. Calculated to the end of October today, a total of US$10.5 million in interest has been paid.

After deducting the interest paid until the end of October, Bailong Commercial Club’s initial principal of US$10 million has become US$106.5 million today. This money is still placed in Mitsubishi Bank's account and will not be settled, so naturally no tax will be deducted.

After all the long gold futures were sold, Lin Baicheng was not ready to buy them back again for the time being. There is, of course, a reason for this.

First of all, Lin Baicheng will continue to do long gold futures, but he will operate more funds through offshore companies, so that security and confidentiality are higher. Except for a few senior executives, no one can know that he is doing long through How much money did you make from gold futures?

Furthermore, Lin Baicheng clearly remembers that the international gold price began to rise sharply in 1979. The highest gold price in 1978 certainly did not exceed US$300 per ounce. Lin Baicheng doesn't know exactly at which price it ended at the end of 1978.

In this case, Lin Baicheng can wait and see whether the gold price will correct. Of course it would be best if there would be a correction, but it would be okay if there was no correction. At most, the price of gold would rise to a high point like 280 US dollars per ounce, and Lin Baicheng would just make some profit.

Without short selling, Lin Baicheng can make some profit if the price of gold rises without losing money. This is Lin Baicheng's confidence.

Lin Baicheng, who doesn't know how gold prices will behave in the next few months, would never dare to short gold futures because he knows very well that the overall international gold price is on an upward trend. If you go long, even if you buy at a high point during the short-term adjustment, you will make money back later.

But if you are short selling, it will be miserable if the price of gold continues to rise without a correction. Unless the loss is cut off in time, you will lose as much as you invest.

In the next two days, Lin Baicheng stayed in New York, waiting for his team to calculate the taxes that needed to be paid, and then he could transfer the funds.

In the past two days, the international gold price has continued to rise, even breaking through the price of 240 US dollars per ounce. It seems that the bulls are quite strong.

It can be said that Lin Baicheng sold the long gold futures too early. It is impossible not to feel regretful. After all, Lin Baicheng could make more if the goods were shipped above US$240 per ounce.

However, it is meaningless to feel sorry now that everything has been sold. Lin Baicheng will never buy it back at this time.

After two days of calculation, the taxes Lin Baicheng needed to pay were calculated.

The United States and the United Kingdom are actually the same, both have to pay a 20% profits tax. However, through calculations by my team in the United States, 11.5% of the tax can be deducted through corresponding consumption and investment, and the other 8.5% of the tax is Must be paid in full.

In the UK, of the 20% tax, 10% must be paid and 10% can be tax deducted through consumption and investment.

In Japan, as an American brother, if American capital makes profits in Japan, it only needs to pay a 5% tax. Unfortunately, Lin Baicheng is from Xiangjiang and does not have this kind of treatment. Of the 20% tax, 10% can be deducted through consumption and investment.

Lin Baicheng asked his team to calculate using the method of offshore companies, and concluded that if it is an offshore company, the tax to be paid in the United Kingdom and the United States will only be less than 5%. This is the policy created by the capital consortium, and he can Following the benefits, he became more determined to invest through offshore companies.

[I would like to explain here that I cannot find out how much tax each country collected on profits such as futures investments in that era, so the tax on foreign funds was calculated at 20% of profits, of which about 10% could be legally avoided. I know that these may not be accurate, but it will not affect reading. I hope you can understand it]

[Also, the tax for offshore companies will be lower. If it is written down later, I will tell you how much tax you have to pay.]