My Age of Investment

   Chapter 1425 It must be worth it

After    ordered Stephen to take care of the beginning and end of Liverpool Club, Xia Jingxing waited for news in London with peace of mind.

The Royal Bank of Scotland has hundreds of millions of pounds of debt in Liverpool's hands, and it has received a lot of loan agreements in black and white. In addition, it is the second largest bank in the country. There is no reason why the lawsuit cannot be won. worry.

   Taking advantage of his spare time, Xia Jingxing listened to Li Yaozu's work report.

   "As of December 3rd, the spot price of gold in London was $1207.39 per ounce.

  We started to enter the market in mid-April, and carried out the first round of long positions. The average price of opening positions was US$880/oz…”

   In a quiet conference room, Li Yaozu showed Xia Jingxing pictures of trading operations.

  London Office currently manages US$10 billion of Envision Capital, all of which are newly raised external funds this year. Xia Jingxing’s personal funds are not involved.

  According to Xia Jingxing's arrangement, Li Yaozu's team started to buy spot gold on a large scale from this year, and there were countless short positions in the middle.

   One lot of London gold is 100 ounces. If the spot price changes by 1 USD, the profit and loss per lot is 100 USD, so many people mistakenly think that it is 100 times leverage.

In fact, leverage is not calculated like this. The current price of London gold is multiplied by 100, which is the actual value of one lot of London gold, and then divided by the first lot of margin charged by the broker. This is the real leverage multiple, which is about 50-100 times. between.

   Taking Li Yaozu’s team’s first round of going long as an example, the actual value of the first lot of London Gold is $88,000, and $1,760 is paid as a margin, and the leverage is 50 times.

  When the spot price fluctuates by 1 USD, the profit and loss per lot is 100 USD. If the spot gold price drops by 17.6 USD, the margin will be lost. You can only replenish the margin in advance or face the tragic situation of liquidation.

Under normal circumstances when there is no major incident, the spot gold price fluctuates little, and the daily rise and fall is only a few tenths or a few tenths of a percent. There is still a certain safety distance from the 2% rise and fall allowed by 50x leverage. Moreover, the London office has plenty of cash, and margin calls can be made at any time, so the liquidation of positions is still rare.

   But in short-term, losses are unavoidable, and it is not a fairy. No one can predict the daily or even hourly price trend of spot gold.

  Xia Jingxing frowned after seeing several sets of trading pictures, all of which were losses and gains.

   Fortunately, the London office divides its traders into more than a dozen trading teams. While diversifying trading funds, it also diversifies trading risks, so as to avoid placing treasure on one team or even one person.

Although this year is a bull market for gold, the price of gold is also in the ups and downs trend of "rising today, falling tomorrow, rising again the day after tomorrow, and falling again the day after tomorrow", not the one-sided one-way rise, so sometimes Carry out a shorting operation.

   "Well, this trading team is good. They made $1 billion in funding of $500 million. After half a year, the rate of return has more than doubled."

   "This group is also okay, with a 50% yield."

   "This one is close, the yield is only 20%, but it is barely qualified."

  …

  Xia Jingxing commented while watching. The rate of return of each trading group was good or bad, but basically they made money. There were also two or three trading groups that did not make money, but lost money.

  Xia Jingxing did not criticize, he believed that Li Yaozu knew how to deal with these "losing money".

   Trading is so cruel, the survival of the fittest.

  The few groups that may fail in investment are not really mediocre, but they just didn't grasp the opportunity well.

   But the company is not a charity, there is no extra opportunity for the traders below to waste.

   Staring at the market every day, and making a profit for a while is really a test of a trader's mentality.

Temporary success or failure doesn't mean much, but this year will end soon, and it's time to calculate the general ledger. The cumulative returns of other groups are positive, and the groups with negative returns are destined to suffer, let alone the end of the year. After the award, whether the job can be guaranteed or not is a question.

   "Xia Sheng, our $5 billion capital is allocated to 15 trading teams for management, long and short London spot gold.

   Among them, 12 trading groups have a positive rate of return, one group does not lose or make a profit, and two groups have a negative rate of return.

   Calculated by the entire London Gold team, the cumulative return this year is 41.2%, and the net income is 2.06 billion US dollars.

   If it wasn't for those three groups holding back, the net income would have been several hundred million dollars more.

   So I plan to reorganize and optimize these three groups. "

  Although Xia Jingxing did not express his position, Li Yaozu had already stated his disposal plan first.

  Xia Jingxing said with a smile: "Don't worry too much about the fly in the ointment, it's normal for teams to have good or bad things.

   As long as the entire big team performs well, as for the three groups, you can decide for yourself. "

  Li Yaozu nodded, and then reported the investment performance of the New York Gold team.

  Different from spot gold in London, New York gold is a futures contract, and Li Yaozu’s team purchased all August forward contracts, which will not be delivered until the 25th of this month.

   However, the income has basically been locked in. The long principal of 5 billion US dollars is multiplied by 5 times the leverage, and then multiplied by the 37% increase in New York gold, and the income is about 9.25 billion US dollars.

   After deducting some handling fees, financing interest, etc., there should be a net income of 9 billion US dollars.

  The combined income of the two gold trading teams in London Gold and New York Gold this year is about US$11 billion, which is 110% compared to the principal of US$10 billion.

   Compared with last year and the year before, the rate of return was often three to five times, or ten times, but the income is already very rich.

   And because the principal base is relatively large, even if the rate of return is not too high, the absolute value is still very considerable.

   After listening to Li Yaozu's work report, Xia Jingxing felt confident.

  Although it did not invest its own funds this time, Envision Capital made money and still had his share of the profits.

   In addition to the stock price rebound dividends obtained by Liu Hai and Jiang Ping's team investing in US stocks, he has steadily earned billions of dollars this year.

  Compared to the money he spent this year, billions of dollars are not much, but it can also fill the personal wallet that has become a little dry.

   Acquisition of Canon and Nikon's lithography machine business, Daxia Capital made a big deal.

  Come on, there are only more than ten billion dollars in private wallets.

   There are still several tough battles to be fought, such as liquid crystal panels, semiconductors, and lithography machines. Xia Jingxing's fear of insufficient firepower is about to break out.

  …………

  …………

  Xia Jingxing stayed in London for a few days, and Fu Jixun, who learned that his boss had arrived in the UK, hurried over from Germany and brought back some good news.

   "Mr. Xia, Qimonda's affairs have basically been settled, and the German government attaches great importance to and welcomes the arrival of Xinxin Group.

  With the help of the German government, Qimonda's core assets, including five 300mm fabs, 12,000 employees, and countless patents will be transferred to us.

  Oh, no, Qimonda has been bankrupt for more than half a year. Except for the factory and patents, it didn’t run away with long legs, and the loss of employees was very serious.

   The top priority is to quickly recall Qimonda employees and resume production.

   This is also an additional requirement put forward by the German government. It is hoped that Xinxin Group will stabilize employment and bring Qimonda back to life. "

  Xia Jingxing nodded, "It's not too late for this matter, you shouldn't be in a hurry to go back to Singapore, just sort out this bunch of things and talk about it.

   By the way, what about the purchase price? How much did Qimonda's creditors offer? "

   "The bankruptcy administrator's condition is that Xinxin Group assumes Qimonda's $2 billion debt, and Infineon, which holds 77.5% of Qimonda's shares, also recognizes this transaction plan."

  Xia Jingxing smiled, "I don't have much debt. It's only 2 billion US dollars. Anyway, we have a lot of debt and don't worry about it."

   Fu Jixun gritted his teeth and reminded: "Debt is actually a small matter, the key is loss!

   Qimonda lost 4.489 billion US dollars in 2008. We took over it. If we want to restore it to normal operation and turn losses into profits, we must prepare for a loss of at least 8 billion US dollars.

   plus $2 billion in debt, a total of more than $10 billion needs to be invested to save Qimonda.

   This is also the main reason why the German government, Infineon and other memory chip manufacturers stand by.

   The price to pay for taking over Qimonda is too great, and in the eyes of many people, it is not worth it. "

   "It's worth it in our eyes!"

  Xia Jingxing said decisively, if it weren't for a pile of junk, it would not be the turn of Xinxin Group to collect the waste.

  10 billion dollars to buy an opportunity for the rise of China/Singapore memory chips, a knife that bleeds Samsung continuously, and a stable supplier for reviving the industry, is it expensive?

   It may be a bit pricey right now, but in the future, it will be worth it!

   (end of this chapter)