The Rebirth of the Financial Hegemon

Leverage is a common physical effect.

Theoretically, if you find a fulcrum and use the lever accurately, you can leverage the actual power countless times.

So some people would say, give me a lever and I can move the earth.

But in fact, a theory is always a theory.

Just like the theory of evolution, everything is based on subjective considerations of ideals.

Real leverage is always a double-edged sword.

When the lever in his hand moves an immeasurable weight, he will only be crushed to death by the lever in his hand breaking.

Purchase U.S. Treasury bonds, then pledge them to Thai commercial banks, then purchase Treasury bonds, and then pledge them for financing.

When Zhao Jiangchuan leveraged one billion U.S. dollars into one billion U.S. dollars.

He felt embarrassed.

It’s so embarrassing that even when eating, I have to consider whether to go to a too luxurious place.

Poor, the embarrassment of being poor.

U.S. Treasury bonds were used to mobilize assets worth 10 billion U.S. dollars, which equals 230 billion baht.

According to the lending rate for one-year loans from major banks, Jushi Asset Management needs to pay more than 20 billion baht in interest to major commercial banks in Thailand every year.

Calculated on a monthly basis, this means that you need to pay more than 200 million baht every month.

This is a terrible expense.

If he just sits and waits like this, Zhao Jiangchuan may be played to death by him before long.

In order to avoid accidentally beating myself to death.

Zhao Jiangchuan had to stop the increase in leverage and shift his goal to making money to repay loans.

Problems caused by leverage can naturally only be solved by leverage.

If you want to earn 2.5 billion in interest every month on 2.3 billion baht, the only way is to continue to increase leverage.

The SET Index of the Thai stock market is undoubtedly a good target.

It is a composite index of the Thai stock market.

In order to curb speculation in the spot stock market, the Thai government launched financial futures trading on the SET index in 1992.

Twenty times leverage.

In other words, you only need to pay a margin of 5% of the SET index to trade one SET futures contract.

For Zhao Jiangchuan, a super cheat, this is almost a trading tool tailor-made for him.

After confirming that the foreign exchange financing leverage could not be increased, Jushi Asset Management spent a total of 2.3 billion baht to open short contracts on the SET index.

Then….

The Bank of Thailand announced that it would raise interest rates from 4% to 6%.

Normally, an increase in interest rates will inevitably increase currency liquidity.

After deposit interest rates rise, some funds will deposit money in banks in order to pursue stable returns.

Since the beginning of 1996, the Thai stock market has been consolidating and fluctuating at a high level.

There is not much money-making effect.

After the interest rate hike, some funds were immediately withdrawn from the stock market and transferred to banks.

According to economists or various securities analysts, the rise in stock prices mainly comes from policies and the fundamentals of companies.

But these experts never say that the rise and fall of stock prices is always driven by funds.

They always only emphasize where it is appropriate to buy and where it is more appropriate to buy the bottom.

You can never say that a certain place is the top, and you can never say that the rise and fall of stock prices is actually driven by funds.

When large amounts of money are withdrawn from the stock market, the water in the pool declines rapidly, and a fall in stock prices is inevitable.

Financial experts all over the world are the same.

When the Bank of Thailand announced a rate hike, major experts in Thailand immediately jumped out.

The central bank will only raise interest rates when the economy is doing well.

Raising interest rates is to curb inflation and will not have much impact on the stock market.

Interest rates are cut to promote economic development, but when the stimulation of interest rate cuts is needed, it means that the economy is weakening.

The ability to raise interest rates undoubtedly shows that Thailand's economic development momentum is good.

In the long run, this is good for Thai listed companies and is of great significance to the healthy development of the stock market.

Very logical and reasonable.

However, the market doesn't seem to be buying it.

When the news of the interest rate hike was announced, the Thai index SET fell in response.

But this does not prevent experts from continuing to tell the facts in front of the media. Almost all experts agree that the correction is just for a better rise.

As for why the stock price did not rise due to good news, no one answered directly.

Regarding this phenomenon, some investors in the Thai stock market believe it, while others do not.

In the midst of a decline, those who believe in it choose to continue buying the stock market.

Bull market corrections are all opportunities.

But unfortunately, not everyone believes it.

For example, foreign investors like Zhao Jiangchuan.

Before the Bank of Thailand raised interest rates, Jushi Asset Management had already established a large-scale short position on SET.

As soon as the news of Thailand's interest rate hike was announced, SET immediately closed down, and Jushi Asset Management immediately made a large amount of baht.

Financial futures trading is a high-leverage T+0 transaction.

After making profits, Liu Qiang immediately strictly implemented Zhao Jiangchuan's instructions to attack the SET index.

Thailand, Bangkok.

Inside the temporarily established trading department of Jushi Asset Management.

Liu Qiang directed the traders to conduct suppression operations.

In more than a year, Liu Qiang has made great progress in trading.

How to hedge transactions, how to buy high and sell low, I have mastered it very skillfully.

With Zhao Jiangchuan's highest strategic direction, Liu Qiang executed the short-selling plan perfectly.

Amid large amounts of short selling and small amounts of buying, the Thailand SET Index fell crazily like a waterfall.

Every falling price means that the short side has made a large profit.

That week, under the crazy attack of the short side, Thailand SET plummeted by nearly 25%.

After working hard for many years, I returned to before liberation in one week.

In just one week, the Thai stock index was blasted from 1,450 points to the highest point of 1,100 points in 1990.

The drop of as much as 350 points allowed Jushi Asset Management, which had been crazily full of positions, to earn a total of 6 billion baht.

Inside the Stock Exchange of Thailand.

Investors were disappointed one by one, as the 25% drop cut the prices of countless stocks in half.

Some have even fallen back to the price they were listed on in 1988.

Amid the crazy drop in stock prices, many people's investment costs were slashed.

The feeling of being cut into pieces makes Thai investors heartbroken.

Fortunately, even as stock prices fell, there were still experts who stood up to cheer them on.

Falling is a good time to cover your position.

The government will not let stock prices continue to fall.

This made many investors who were deeply trapped in buying at high prices seem to have seen the light. While cutting back on clothing and dieting, they once again took out a small amount of deposits to continue to cover their positions.

USA, Manhattan.

After receiving the news from Jushi Asset Management, Zhao Jiangchuan slumped on the bed like a deflated ball.

He sighed while panting and playing with Ouyang Lan's exquisite body.

"Little money geek, those bankers are really greedy. I managed to make some money, but they took away almost half of it in one go. I can't survive this life."

Ouyang Lan no longer had the strength to open her eyes.

She really wanted to give her boss a blank look.

As the woman closest to Zhao Jiangchuan, how could Ouyang Lan not know Zhao Jiangchuan's overall strategic plan.

This guy clearly took advantage and acted like a good boy.

But her whole body felt as weak as if it had been hit by a truck, so Ouyang Lan could only continue to pant.

Finally, Ouyang Lan, who was extremely angry, regained some strength.

She subconsciously grabbed Xiao Zhao Jiangchuan and cursed.

"Boss, you are such a bad thing."

Capitalists are helpless against the accusations made by their own secretaries.

He felt that if he just used other people's money to pay off other people's debts, then he was a bad thing.

Zhao Jiangchuan mustered up his strength and pressed one thigh down on Ouyang Lan's petite body without mercy.

He played with the pair of Ao Ran who couldn't get enough of them, and smiled maliciously.

"You know now that I am a bad person. Isn't it too late?"

"Hmph...I'm alone now. I can't bear it. When we return to Hong Kong, I will ask Sister Xiaoyue to deal with you together."

"Ha ha…."

After the two of them breathed for a long time, Ouyang Lan said softly.

"Boss, can we go back to Hong Kong?"