Spend Money to Play the World

"Old Chen, I heard Luo Xu say, are you ready to go to work?" Zhao Hao asked excitedly with a gurgling light in his eyes.

Chen Fang nodded and said, "Yes, the funds have been in place, and the companies in the United States are on the right track, so it's time to start taking action.

Of course, the most important thing is that there will be an opening soon. As long as we seize the opportunity firmly, we may be able to raise the net investment yield to 100% in advance! "

Zhao Hao was stunned for a moment, just as he was about to express his surprise, Huang Xiaotian called out first:

"Fuck, isn't it, Mr. Chen, didn't we say at least four or five months to achieve it at the meeting before, why are you less than half a month, and you are about to achieve a 100% net rate of return.

Did I hear it wrong, or did you make a mistake? "

The others were obviously the same as Huang Xiaotian, staring at Chen Fang with burning eyes, waiting for him to answer.

Chen Fang smiled: "I didn't make a slip of the tongue, and you didn't hear it wrong. What I said before was actually quite conservative, mainly because I was afraid that you would not believe it after hearing it.

In our cooperation investment this time, my plan is to take two moves, starting immediately is the first step.

However, whether or not a 100% net return can be achieved within this month depends on the actual operation. If you are lucky, this is possible. "

"Old Chen, don't give a shit, hurry up and talk about it, I'm so curious that my whole body is about to split!" Zhao Hao urged impatiently.

Chen Fang didn't keep it a secret. After tapping his finger on the table, he said with a serious face: "My first plan is to be a long-term U.S. stock company, Mok Pharmaceuticals. In terms of leverage, try to pull it as high as possible!"

Luo Xu said in surprise: "It turned out to be Mok, I know this company..."

Luo Xu operated the computer in front of him, called up the stock K-line chart of Mok Pharmaceuticals this year, looked at it, and said:

"The total market value of this company is about 380 billion US dollars, the price per share is around 150 US dollars, the price-earnings ratio is less than 30, and it is profitable every year.

However, Mr. Chen, I have seen the stock price trend of Mok Pharmaceuticals this year. It is relatively smooth. The increase or decrease in the past 11 months has not exceeded 10%.

If you go long in this company's stock and buy low and sell high, you won't lose much, but you won't make much money.

Could it be that, Mr. Chen, do you have any inside information? "

Chen Fang has no inside information, but he has future news that is more advanced than inside information.

However, it was impossible to tell Luo Xu and the others directly.

So, Chen Fang followed Luo Xu's words and smiled mysteriously: "There is indeed some internal information, today is December 7th, if nothing else, in a week or two, on December 20th, this company will The stock price will lead to one of the biggest gains of the year.

In my estimation, it should be more than 20%, or even 30%. "

The rich second generation named Zhou Zekai said, "Mr. Chen, can this news be confirmed?"

Of course it can be confirmed, but Chen Fang would not admit it, instead he shook his head and said, "I can't be sure, but the source is very reliable."

After speaking, he turned his head and asked Luo Xu again: "Mr. Luo, how much money do we have on hand now?"

Luo Xu replied: "Currently it is about 15.7 billion RMB, which is about 2.4 billion US dollars."

Chen Fang rubbed the stubble on his chin, thought for a moment, and nodded slightly: "$2.4 billion, the principal is a little less, and leverage must be done. By the way, how have you collected the information on capital allocation in the United States? "

In terms of long and short stocks, it is generally divided into two categories, one is over-the-counter capital allocation, and the other is on-exchange financing.

In China, two financings are allowed under official supervision, that is, margin financing and securities lending. The ratio is 1:1, which is equivalent to twice the leverage.

That is to say, if you have 500,000 in your hand, after twice the leverage, you can have 1 million to invest in stocks.

However, the ratio of this leverage is too small, and many investors and investment institutions are not satisfied with twice the leverage.

At this time,

Over-the-counter financing is born from the operation.

The so-called over-the-counter financing is actually 'over-the-counter stock financing', which means that without the approval of the China Securities Regulatory Commission and the China Banking and Insurance Regulatory Commission, the financing party privately agrees with stock investors to borrow money for investors to invest in stocks.

Is this legal?

That depends on the situation.

If the contract is legal, the source of funds is legal, and the company is legal, then the stock allocation is legal, which is equivalent to private lending. As long as it does not obviously violate the law, it will be fine.

Compared with on-site financing, the advantage of OTC stock allocation is that the leverage ratio is higher.

As long as it can convince the fundraising party to pull the leverage to 5 times, 8 times, 10 times, or even more than 10 times, it is not a problem.

Of course, the higher the leverage ratio, the greater the risk. If one is not good, it is easy to be forced to liquidate or liquidate the position, and then lose everything.

However, this still cannot resist people's ambition to get rich overnight through high leverage.

Luo Xu said at this time: "As for the allocation of capital in the United States, our people have already contacted more than ten capital allocation companies and platforms, and the allocation amount and interest they give are different, so I have them screened. After a while, I made a comparison report, you can take a look."

With that said, Luo Xu connected the computer to the large screen on the side to realize page sharing.

Chen Fang stared at the data report on the big screen, while Luo Xu said on the side: "The first and most reputable company is Sequoia, a very powerful investment company in the United States.

It owns multiple funds, so its financial strength is very strong, and its credibility is very high.

And the interest is relatively scientific, the annual interest rate is about 15%-30%, the specific amount depends on the allocation amount..."

Chen Fang touched his chin and said: "Our current principal is 2.4 billion US dollars. If we pull the leverage, how many times can this redwood company pay at most?"

Luo Xu said: "It's about 5 times, and the allocation is 12 billion US dollars..."

Chen Fang shook his head and said, "Less..."

Luo Xu was stunned: "Uh, Mr. Chen, 5 times leverage, is the $12 billion allocation less?"

Chen Fang's eyes were a little dark, and he said earnestly: "If I play alone, I can make up to 5 times as much as I can, and I can earn some pocket money.

However, Mr. Luo, many of you believe in me and want to make a fortune with me, so I can't live up to your trust and expectations.

If that's the case, then I'll take you to a big game.

In this way, Mr. Luo, let someone contact this redwood company to see if the lever can be pulled up. "

"Then how many times do you plan to pull the leverage, Mr. Chen?"

"The higher the better, if it can be 10 times, it is naturally the best."

"..."

Luo Xu was speechless for a while.

The second generation named Long Yijun heard Chen Fang's words, swallowed his saliva, and quickly said with a smile:

"That, let me interject... At present our principal is 2.4 billion US dollars, 10 times leverage, after the allocation of capital, we can operate 24 billion US dollars of funds to invest in stocks.

However, this risk is too high. If you are long, once the decline exceeds 10%, the position will be liquidated directly.

In addition to higher leverage, a large capital allocation company such as Sequoia Tree actually has a similar operating model to that of brokers on the market. In order to ensure that their company does not suffer losses, they have set up warning lines and forced liquidation lines.

A leverage of 10 times means that if the decline reaches 5%, it will reach the warning line, and the account will be basically locked, and further operations will require a deposit.

And once the decline reaches 7%, they will be forced to liquidate the position directly. At that time, our principal of 2.4 billion US dollars will basically be lost..."

What Long Yijun said makes sense.

However, Chen Fang smiled when he heard it: "I know this, there are definitely risks, but if you don't do it because you have risks and fear of failure, you will never be able to seize the opportunity.

All right, Mr. Luo, let someone contact the Sequoia Tree Company immediately. I want to know how much money they can give us.

No, just change to another one! "

Chen Fang's tone was firm and unquestionable.