My 1999

"Old Qiu, how are you doing?"

"Recently, the Chicago Mercantile Exchange S\u0026P 500 index has fluctuated around 1,400 points, and the price of one contract is about $350,000.

If we directly short sell 50,000 to 60,000 contracts and spend more than 20 billion US dollars, the market volatility will still be very large.

I suggest using stock index options tools, just like Hongyan shorting individual stocks, such as buying S\u0026P 500 put options. "

Xu Liang nodded slightly.

The principles of index options and individual stock options are the same, which is to find an opponent to gamble together, but the underlying assets or gambling tools are different. One bets on the index, and the other bets on the stock price.

In the second wave of the "Zhurong Plan", Hongyan and Hanhua each had their own division of labor.

Hongyan is responsible for the stock market, and Hanhua is responsible for the bond market.

The two sides cooperate with each other, but each has its own goals and direction.

"Okay, you decide. When the final plan comes out, just show it to me."

As far as he could remember, the three major U.S. stock indices, the S\u0026P, Nasdaq, and Dow Jones, did not seem to fall as fiercely as some individual stocks.

Take the S\u0026P 500 index for example. Just like the CSI 300, it selects hundreds of listed companies and adds them together according to different weights to form a representative data, called an index. It reflects the changes in the entire stock market, which is also what people often call the market.

However, Xu Liang believes that S\u0026P 500 components such as Lehman Brothers and AIG will definitely outperform... and outperform the overall market.

From this perspective, it seems that you can make more money by shorting individual stocks.

But he now has too much capital, and using it all to short financial stocks is difficult and risky.

"In addition to these two methods, we can also consider shorting or going long on ETF funds."

Qiu Heng continued: "Take the S\u0026P 500 index ETF fund as an example. We can choose to buy a three-times short ETF fund, or we can choose to short a three-times long ETF fund, both of which can achieve the purpose of shorting the index."

ETF index funds refer to index funds that can be traded on the stock exchange like stocks. They actually represent the ownership of a package of stocks. Their trading prices and fund share trends are basically consistent with the index they track.

For example, for an ETF fund of the S\u0026P 500 index, if the index rises by 1%, the fund also rises by 1%.

The triple long ETF fund mentioned by Jiang Ping is slightly different from ordinary ETF funds. When the index rises by 1%, the fund rises by 3%.

The triple short ETF fund is the opposite, the index falls 1%, and the fund rises 3%;

The index rose 1%, while the fund fell 3%.

Without paying a margin or worrying about a margin call, you can enjoy the joy and excitement of doubling your profits... and doubling your losses.

“Through the TRS total return swap tool, Goldman Sachs and Morgan Stanley provided us with three times leverage, which, when multiplied by the three times ETF short fund, can reach a maximum of nine times leverage.

The risks are great, but the rewards are equally great.

In addition, regarding the risk of margin calls, one only needs to focus on the triple leverage of Goldman Sachs and Morgan Stanley.

I think we can allocate a small amount of ETF funds to achieve the effect of diversifying investments and reducing impacts.

At the same time, we also need to pay attention to one issue - losses in volatile markets.

In a market that is rising or falling in one direction, leveraged ETF funds can have the effect of amplifying returns.

But adding a triple leverage is very profitable. Not only do you not have to worry about liquidation, but your returns are also tripled.

It seems to be very suitable for long-term investment, but the leverage friction can kill ordinary investors.

Xu Liang nodded, "Okay, let's allocate some ETF funds as well. Are there any other short-selling tools?"

"VIX panic index!" said Sun Zhenping.

After a brief thought, Xu Liang asked, "Are you talking about the obscure thing that measures the expected 30-day volatility of the S\u0026P 500 index?"

“Yes, that’s it.

The higher the VIX index, the more it means that investors have smelled danger and are worried about the stock market;

The lower the index, the more it means that the stock index will fluctuate more moderately. "

VIX vividly reflects the degree of panic of investors about the future market, so it is also called the "fear index" or the volatility index.

Generally speaking, even in a bear market, the VIX index will not change much and will tend to fall slowly.

But once an economic crisis occurs that is strong enough to shake the world, the unpopular VIX index can also soar!

Many options traders who are well versed in this are using derivative tools to short the VIX index, making money without doing anything.

Many financial institutions have also set their sights on this new track.

They will actively release some seemingly false news, causing the decline of several individual stocks or an industry.

Even if the VIX panic index only rises by a few points, it can still bring huge returns to investors with leverage.

"I think we might as well take some money and bet with them. Maybe the VIX index can create a historical high, and the returns will be very considerable."

Xu Liang pinched his chin and said, the panic index is actually a bet on the future.

Will the US stock market and the S\u0026P 500 index take a roller coaster ride next?

Will the market panic?

He remembered a news report in his previous life that there was a courier retail investor in the United States who had been firmly shorting the VIX index for five years, betting that there would be no financial crisis in the United States and that the country would prosper and continue to have a bull market.

Then he accidentally turned his $500,000 into $15 million.

The operation is very simple and mechanical.

But if you say that the other party makes money easily, that is only hindsight.

After all, it is very difficult to integrate knowledge and action in this world. There are many retail investors who chase rising and selling when prices fall, but it is rare to see outstanding retail investors who can persist for five years, from dusk to sunset, from the trough to sublimation.

It is so painful to watch the money in your account disappear quickly.

But Xu Liang is different. At other times, he is not clear about the future of the panic index.

But he was well aware that VIX would definitely explode against the backdrop of the subprime mortgage crisis.

“Add the VIX index to your investment list. Leverage it and invest at least $10 billion. You can either make a killing or throw it in the water.”

Having said that, he knew he would not lose money.

Sun Zhenping opened his mouth, subconsciously trying to persuade the big boss to reduce the risk. After all, leveraging $10 billion meant failure or certainty.

The risks are too high.

However, all their hedge investments are now gambles.

Either you lose the bet and lose everything, or you win the bet and make hundreds of billions of dollars.

He gritted his teeth and swallowed the words of persuasion.

Looking at his expression, Xu Liang smiled and didn't say much.

The VIX index was created in 1993, and the Chicago Board Options Exchange began to link futures and options to the index in 2004. Although it has not been developed for a long time, the trading volume has increased rapidly.

However, there is still a big gap between it and the mainstream S\u0026P, Nasdaq and Dow Jones, and it cannot carry too much funds, otherwise he would invest more.

“Futures, options, ETFs, and volatility of the three major indexes.”

Xu Liang did a simple calculation and couldn't help but sigh that the Americans have played around with finance. Just an index has been used to create so many derivatives, and then derivatives are built on top of the derivatives.

“The investment in these index derivatives is entirely handled by Hanhua.

Lao Qiu, Lao Sun, you two should actively communicate during this period and bring out the specific investment plan for me to review. "

"OK."

"no problem."

The two of them nodded quickly.

The excitement of doing something big makes their blood flow quickly, and their expressions become excited and expectant.

"Everyone, the next year will be the most critical year since the establishment of Hongyan and Hanhua. If we succeed this year, Hanhua and Hongyan will not only make huge profits, but also go further in the global financial field and become a world-class comprehensive financial group.

You will also get enough wealth to make it onto the Forbes Global Rich List!

To achieve this goal, I declare..."

The expressions of the three men suddenly became solemn, and their eyes were fixed on the big boss on the screen.

"Starting today, all vacations in Hongyan Strategic Investment Department and Hanhua Hedge Fund Department will be cancelled, and relevant personnel are not allowed to take leave unless they encounter family members passing away, illness, etc.

During holidays, wages are doubled.

For employees who have performed well during this period, their bonuses will be doubled.”

Xu Liang has always believed in the principle that "if you want a horse to run faster, you have to feed it more grass", so he is not stingy whether it is salary or bonus.

"I thank you on their behalf."

The three of them said quickly.

Xu Liang waved his hand and said, "Let's stop the polite talk. The meeting will end here. You can go back and prepare according to what we just agreed on."

"OK."

Soon the screen went black.

Xu Liang sat on the chair for a while, going over all the contents he had understood before in his mind before he stood up and left the meeting room.

Soon after arriving at the study, Li Jinling placed an investment report of the Phoenix Fund in front of him.

Phoenix Fund, which raised $20 billion last year, specializes in investing in unlisted companies.

At present, Xu Liang has placed 31 targets in it.

50% options of the NBA Warriors and 5% equity of Facebook [excluding Netflix, Twitter, telecommunications and other businesses].

16.5% stake in Alibaba.

10% stake in Hynix.

Just this cost Phoenix Fund $12.7 billion.

The rest is basically equity in start-up companies invested by Hanhua.

"Mr. Lu said that Phoenix Fund currently has only 1.7 billion US dollars left. Are you considering raising a second round?" Li Jinling asked.

"The funds are being used up so quickly?"

"We have invested in too many startups, and many of them have certain development prospects but are slow to realize cash."

Xu Liang nodded and thought for a moment.

"Tell him that now is not a good time to raise the second round of funds. Let him spend all the funds he has first."

"OK."

"Anything else?"

"Mr. Jiang called and said that all the assets that Hanhua planned to sell have been cleared out, and the detailed information has been uploaded to your encrypted mailbox."

Xu Liang was shocked and quickly turned on the computer out of curiosity.

Seeing this, Li Jinling left tactfully.

After entering the long password.

When I opened my mailbox, I found a large email of nearly 1GB.

After clicking it, the computer buffered for a few seconds before the content popped up.

Hanhua Financial Group, which has been developing for nearly eight years, is undoubtedly huge.

Although Xu Liang’s vision of acquiring Lehman Brothers’ international business, Standard Chartered Bank and AIA Group has not yet been completed.

However, Hanhua, which owns multiple businesses including securities, venture capital, private equity, hedging, insurance, asset management, wealth management, trust, and the Internet, has already become a world-class financial giant.

The first is Hanhua Securities. After years of development and the acquisition of some overseas small and medium-sized securities companies, Hanhua Securities has now formed a business network covering almost the entire Asia, including China, Japan, South Korea, Southeast Asia, and West Asia.

It has 329 branches [including Huaxia].

The latest novel is published first on Liu9shuba!

Strictly speaking, Hanhua Securities is a huge business platform, and its business scope includes stock underwriting, mergers and acquisitions, restructuring, business consulting, futures, private banking, asset management, etc.

With the help of Xu's and Hanhua Group's other businesses, Hanhua Securities has developed rapidly despite its small establishment.

In 2007, the bank generated total revenue of $6.38 billion, equivalent to one-eighth of Goldman Sachs and a year-on-year increase of 28%.

The number of commercial customers exceeded 3,200, and the number of individual customers exceeded 2.49 million.

Among all of Hanhua Securities' business segments, private banking and asset management have seen the fastest growth.

The reason is very simple, Boss Xu is well-known.

The Midas Touch in the financial circle is becoming known to more and more people.

Although Boss Xu never asked about the specific investment business of Hanhua Securities, he still couldn't help but send money to him.

Against this backdrop, Hanhua Securities' assets under management reached US$87.3 billion.

If Hanhua's judgment on the subprime mortgage crisis is finally proven to be correct, then the total size of funds in Hanhua's asset management and private banking businesses will undoubtedly surge again.

Then there is Hanhua Trust, which currently has 152 branches in Asia and Europe.

One point I want to emphasize here is that domestic trusts are very different from overseas trusts.

First, the three rights and interests of property: control, ownership, and beneficial rights.

Overseas trusts follow horizontal ownership, which means that when assets are placed in the trust, all control and ownership must also be handed over.

The trustee not only loses ownership but also control, so that it will not be deemed a sham trust.

Domestic trusts are guided by domestic trust laws. Only the ownership is given to the trust company, and the control is still in the hands of the settlor. This is different from the overseas trust structure.

Therefore, false trusts are often mentioned overseas. Because the control rights are not handed over, they are deemed to be false trusts.

The most famous case is the Zhang Lan Singapore family trust piercing case.

The reason why it was judged to be a sham trust was because of the control issue.

She often issued instructions to the bank, saying that she needed funds to buy land assets.

What this means is that this is my asset and I have the right to control it.

Her account service provider did not file an objection, nor was she reminded that it might be deemed a fake trust.

Therefore, the trust is not recognized as being for the purpose of inheritance and isolation, and the assets therein are recovered by the creditors.

Difference 2:

Domestic trustees must be trust companies, while foreign trustees are much broader [even companies, individuals, law firms, financial institutions, and non-professionals can serve as trustees]

Difference 3:

Doing things differently.

Domestic trustees, or trust companies, are not only responsible for transactional management, but also for investment management, helping clients make money.

Overseas trusts only carry out transactional management and not investment management, so you need to select a financial institution to carry out investment management.

Difference 4

The scope of beneficiaries is different.

The beneficiaries of a domestic family trust must be blood relatives of the settlor.

The overseas beneficiary can be very broad and can be given to anyone you want, even a pet, such as Karl Lagerfeld.

In his later years, Karl Lagerfeld fell in love with a cat. He loved it so much that he gave most of his inheritance to this Siamese cat in the form of a trust, which was managed by a lawyer and a nanny.

The entire trust is worth 2.1 billion RMB, making the cat the richest cat in the world.

Of course, Karl Lagerfeld’s relatives and friends were dissatisfied and appealed, challenging the will and the trust, but they ultimately lost the case.

Alas, human beings live worse than a cat!

Reincarnation is indeed a technical job.

Difference 5

Delivery asset class.

Financial assets are the majority in China, and more widely abroad: real estate, stocks, jewelry, yachts, airplanes...

This is because the domestic trust asset registration system has not yet been established. For example, there is no registration system for real estate, listed company stocks, and equity. If they are to be placed in a trust, it will be regarded as a transaction transfer, and the taxes and fees will be higher.

For a real estate trust, the tax cost for buying and selling is at least 20%.

Difference 6:

The asset entities are different.

Domestic trusts will have a special trust account in the bank to deposit funds.

An offshore trust is a corporate entity that holds movable and immovable property.

Difference 7

Is it personified?

Overseas trusts are legal entities of trusts and have independent tax numbers.

Domestic trusts do not have personified or legal entity forms. They are just a certain trust registered with CITIC and do not have an independent tax number.

One last note:

Excess business returns.

Overseas trusts only have transactional management, not investment management, so there is no excess performance return.

Domestic trusts also have to engage in investment management, so they must also charge excess business returns for the annual rate of return.

For example, if the target investment rate of return is 6%, assuming it exceeds this rate, the excess return will be divided into 1:9 or 2:8.

However, Hanhua Trust is different from domestic trust companies.

Except for force majeure, such as those stipulated in the Trust Law, there are parts that cannot be changed.

Like overseas trusts, Hanhua Trust only carries out transactional management and does not engage in investment management.

The reason is very simple. Within the entire Hanhua Group, there are departments that specialize in investment, such as Hanhua Securities and Hanhua Capital.

There is no need to set up investment business under Hanhua Trust.

It would be better to specialize in transactional management and acquire customers in this area with more standardized business and content.

Due to its short establishment time, lack of foundation, and the lack of foundation for trust business in Asia, Hanhua Trust has developed very slowly.

So far, the number of clients is less than 10,000 and the assets under management are only US$17.46 billion.

Without the support of the Hanhua brand, the number of assets would be even smaller.

Among Hanhua’s major business models, Hanhua Insurance is the slowest growing one.

In recent years, Hanhua Insurance has not expanded its overseas business, but has focused all its energy on the domestic market, mainly on raising funds for licenses.

Now the four major licenses for life insurance, property insurance, pension insurance and health insurance have been obtained.

But the best developed area is life insurance.

After all, this is Hanhua’s original business.

The second is car insurance among property insurance.

Xu owns Torch, the country's top comprehensive automobile group, and one-fifth of BYT's shares. Dealers of both companies sell Hanhua's auto insurance.

Throughout 2007, Hanhua Insurance's total revenue was 15.3 billion Chinese yuan, barely making it into the top ten insurance companies in the country.

Then there is Snowball.com. With the abundant financial support from Hanhua, Snowball.com is no longer limited to China.

Instead, it has become a professional financial information website that truly covers the world, with 18 languages ​​including Chinese, English, Portuguese, Japanese, and Korean.

Although due to its weak foundation, it still has a gap with financial media giants such as The Wall Street Journal, Financial Times and Bloomberg.

However, these institutions are not professional Internet companies, and their website design, layout, functionality and user-friendliness are very poor.

Xueqiu.com stands out with its more user-friendly design.

It has become the most visited professional financial website in the world.

Although it has been criticized by many people in the industry for being insufficiently professional, superficial in content, and even misleading, it still cannot stop both old hands and newcomers from liking it.

Especially the forum section.

The discussion on individual stocks is in full swing.

At present, the number of registered users of Snowball.com worldwide has exceeded 70 million.

The website is now past its early days, when the company had to spend its own money to commission articles from professionals and provide high-quality content.

Nowadays, many world-renowned investors and institutions will actively write high-quality content on their own channels to attract users and increase their visibility.

With more and more tap water, 'Xueqiu.com' is developing more and more healthily.

The company gradually turned from loss to profit.

However, in order to avoid excessive commercialization affecting user experience, Xu Liang always controls the advertising placement of "Xueqiu.com".

At present, it is mainly based on a small amount of display ads, keyword ads and embedded ads.

Throughout 2007, Xueqiu.com earned $360 million in revenue and $54 million in net profit.

Compared with the giants, this amount of money is pitifully small.

But Xu Liang didn't care.

He has no shortage of ways to make money, but he lacks a mouthpiece that can influence the entire industry.

The industry influence of 'Xueqiu.com' is more important than profit!

Next is Hanhua Capital.

This is the origin of Hanhua and also its earliest business.

Over the past eight years, Hanhua Capital has expanded from Beijing to Beijing, Shanghai, Shenzhen, Hong Kong, Singapore, Tokyo, Silicon Valley, New York, London, Paris, Dubai, Sao Paulo, and Toronto, with a total of 13 offices.

It has also established offices in South Korea, Switzerland, the Netherlands, South Africa, Australia, New Delhi, Taiwan, Saudi Arabia and other places.

Whether it can be upgraded to an office in the end depends on the development of various places.