Rebirth 76: Industrial Internet Empire

"Your Excellency, President! You don't want us to take over these CFDs ourselves, do you?" Kevin asked in surprise.

"After a year of slumping, the U.S. stock market has basically bottomed out, especially the Nasdaq, which has fallen by 5% and is almost within reach of the bottom five years ago. Why doesn't Morgan Stanley dare to take over these CFDs independently?" Jonathan Wei Si continued to talk to himself.

"I also find it strange that it only took one year for Enron Energy to become the first e-commerce stock. The transaction volume of Enron's online platform exceeded US$3300 billion and was sought after by various Wall Street investment institutions, including Goldman Sachs and Merrill Lynch. With my advice, this Yuanda Capital actually dares to openly short-sell..." Kevin said incomprehensively.

"Kevin, I heard that Qianhai Capital has participated in many financial market games and has never failed so far?" Jonathan Weiss asked thoughtfully.

Kevin nodded and said: "Yes, before the Japanese stock market crash, Qianhai Asset Management was the main force on the short side. It teamed up with Western investment banks such as Goldman Sachs and HSBC to hunt down Japan's local chaebols. During the 87 US stock market crisis, Qianhai Asset Management staged a textbook flip. Bulls, Lun Copper battled Sumitomo Metal, Qianhai Asset Management was also one of the main players on the short side. There is even a legend in the capital market that the Southeast Asian financial crisis was planned by Qianhai Capital. In the middle of the crisis, Qianhai Capital flipped bulls again and joined forces with the Hong Kong Monetary Authority in Hong Kong. , setting a trap for Wall Street hedge funds. In every life-and-death game in the financial market, the luck is unbelievable..."

"It is said that they were the first to burst the Nasdaq technology and Internet stock bubble a year ago?" Jonathan Weiss asked with a solemn expression.

Kevin said with a wry smile: "About three months before the technology and Internet stock bubble burst, Qianhai Asset Management and Zhiyuan Group sold a large number of short Nasdaq futures contracts in the name of reducing their holdings and hedging. The idiot Kaga Yasuda believed it to be true and took Furong into account." The bank has lost all its profits over the past few years!”

After Jonathan Weiss pondered for a long time, he still smiled bitterly and said: "Kevin, before you understand your opponent's true intentions, try not to act rashly! After signing the contract with Yuanda Capital, help them find a CFD counterparty according to their requirements. As for the buyer, Morgan Stanley is already ahead of us. For some high-net-worth clients, the commission and margin ratio can be appropriately lowered..."

"Your Excellency, President, it is said that Morgan Stanley has offered up to 250 times leverage to some small and medium-sized institutions. Is Wells Fargo also following suit?" Kevin asked.

"You have to follow up no matter how high it is, otherwise why would investors put the CFD business in Wells Fargo? Just use the liquidated account to hedge risks in the stock index futures market!" Jonathan Weiss waved his hand and said disapprovingly. .

...............

The profit-making effect is highlighted. The first batch of investors who bought long orders in CFDs are already in an invincible position because they bought short hedging orders in stock index futures, forming a scissor difference of nearly 25 points in holding costs...

The OTC trading volume of CFDs keeps rising, and Morgan Stanley makes a lot of money from commissions alone.

Then Wells Fargo joined in...

The stock market is in a sluggish state, and trading volume has plummeted. Other brokers are not willing to let go of this opportunity to find new ways, and they are lobbying major capital companies to participate in CFDs.

There are indeed many capital companies that have been successfully lobbied by brokerages. What makes many investors find it strange is that it seems to have become a routine. Various CFD orders are flying all over the sky, but no one knows who the bookmaker is against them!

.........

Sand Dune Road, Silicon Valley, headquarters of Zhiyuan Investment Company.

Data on CFDs sold through major brokers will be quickly summarized here.

"Yang Mo, in one month, our book losses have exceeded 3 million U.S. dollars. This does not include commissions. Can we close the network?" Lin Xi muttered after opening a multi-order contract to support the bottom line. Said sarcastically.

Yang Mo stared at the market for a while and then said: "Lin Xi, before the market closes in the morning, don't place any more long orders to support the bottom, let them grab the short orders themselves!"

Lin Xi followed her words and withdrew all long orders. The situation in the stock index futures market suddenly changed suddenly. Selling orders were withdrawn like a tide. Hedging short orders could not find any counterparty, and the transaction price of the stock index futures contract began to fall...

Most investors didn't take it to heart because they failed to get a short hedging order. Driven by the joint efforts of brokerages and bookmakers, the three major indexes rose by more than 30 points in half a month. Almost all CFD investors All are in profit.

The bear market seems to be showing signs of bottoming out. Trading volume has increased sharply. The three major indexes have seen a long-awaited simultaneous increase in volume...

The recovery of the three major indexes has made the CFD business launched by major securities firms popular among investors, and small and medium-sized institutional investors who have been on the sidelines have also participated.

What puzzles many investors is that various data and K-line charts show that the stock market has bottomed out and rebounded, but short sellers have the absolute upper hand in the futures market. Long orders opened based on market prices are robbed almost as soon as they appear. In the stock index futures market, It even forms an obvious scissor gap with the stock market!

As the stock market recovers, applications from major shareholders of major listed companies to reduce their holdings have also been approved by the Federal Securities and Exchange Commission.

Zhiyuan Group was the first to issue a shareholding reduction announcement: Zhiyuan Group will officially get involved in the medical equipment business, restart the acquisition plan of GE Medical, Medtronic, and Stryker, and plans to reduce its equity holdings in Sun, Palm, and Cisco to raise US$150 billion for Acquire equity in related companies.

Nasdaq, which had just shown signs of bottoming out, fell in response...

"What the hell is this Zhiyuan Group doing? As soon as the stock market started to pick up, it was eager to reduce its holdings! It even reduced its holdings by US$150 billion in one fell swoop..."

"Fake! I just followed Cisco..."

"I finally understand that the New York Stock Exchange is the cash machine of these black-hearted capital companies!"

"They don't care about the interests of ordinary investors, just wait! I don't think I can hold on to 1800 points!"

Walking into the New York Stock Exchange at this time, almost all the voices were cursing Zhiyuan Group...

However, more shareholders of listed companies soon joined the ranks of reducing their holdings. Brokerages led by Morgan Stanley and Wells Fargo took the opportunity to sell out the stocks they had previously bought to boost the market.

The three major indexes collectively plunged, and the New York Stock Exchange trading floor was filled with angry scoldings...

"Fake! It took the Nasdaq index a month to rise back to 1900 points, but it only took one day to drop 100 points!"

"Enron and Intel have such good performance that they have plummeted! Who can tell me? Are there any stocks on the New York Stock Exchange that will not fall?"

"Go to the damn stocks..."