Rebirth: The Financial Giant

Within a day, rumors spread that the six top ten securities firms in terms of comprehensive performance, as well as Cailian Securities, and Tiansheng Capital, a non-bank financial giant, were all involved in the vortex of merger and reorganization. They have a bit of a see you in a long time taste.

However, many people believe that although such a mutual arrangement and combination sounds a bit bizarre, it also reflects to a certain extent the regulatory intention to build an aircraft carrier-level securities firm, and the mergers and acquisitions of securities firms have indeed opened up the imagination.

Under the intention of building an aircraft carrier-level brokerage, mergers and acquisitions seem to be one of the important ways to increase the scale.

In recent years, mergers and acquisitions in the securities industry have been common. Recently, Zhongxin Securities acquired Guangzhou Securities, Huachuan Securities became the largest shareholder of Tektronix Securities, and Tianfeng Securities acquired Hengtai Securities.

Such cases also send out a signal that the domestic securities market seems to be gradually converging with the European and American securities market, large securities companies will occupy the market share, and market competition will become more and more concentrated.

Today, there are various rumors about the merger of securities companies in the market. Lu Ming, who is about to start a video conference, also noticed it and is eating the news of the merger of several major securities companies.

It's just that he didn't expect to eat melons to eat his own head, and Tiansheng Capital was also caught in the turmoil of mergers and acquisitions of securities companies, but there are still more important things than eating melons.

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At about 16:30 in the afternoon, the video conference was held as scheduled.

The participants of the meeting included the leaders of many financial institutions such as China, Construction, Engineering, Recruitment, etc. They are very few people who know the truth at present.

During the video conference, a leader of ICBC said: Comrade Lu Ming, what is the big emergency to hold this video conference so urgently?

When the attendees received the news, they all mentioned in their throats that what this master did was shocking. The first thing everyone thought of was, what else happened.

At this time, Lu Ming looked at the video of the participants on the big screen and said solemnly: A few days ago, some foreign media quoted a so-called insider saying, how can I say I don't care, but this signal shows that foreign countries have noticed my country's accelerated growth. work on the National Strategic Petroleum Reserve and require relevant parties to take action as soon as possible.”

Lu Ming added: In particular, various methods can be used to increase the scale of reserves, including using financial derivatives to lock in lower prices. China Construction, Engineering, etc. are all participating in many financial derivatives. There are many ways to play. For example, Yuanyoubao has been extremely hot recently.

Everyone can hear the meaning of these words. Lu Ming seems to have discovered that there may be a problem with the financial derivatives used by their major institutions.

After a while, the leader of the ICBC said, Is there any problem?

With a trace of worry, Lu Ming said in an orderly manner: In this game between the two sides, our side is too strong, and Lao Mei will definitely not be able to swallow this breath. We are now participating in such financial derivatives, and I am worried that it will be affected by Western capital They were hunted and smothered on a large scale.”

As soon as these words came out, the attendees couldn't help but be moved, and the leaders from CCB couldn't help but say, How serious is it?

After a while, Lu Ming said: CME Group notified on April 3 that it had revised the IT system code to allow the declaration and transaction of negative oil prices, which will take effect from April 5. And on April 8, CME Group It has tested with member units, announced the settlement price adjustment plan, and issued an announcement saying that if the main energy price falls below zero in the next few months, the software will be reprogrammed to handle the negative price problem of related financial products.

Lu Ming added: Increased the possibility that some energy futures contracts on the New Mercantile Exchange may be traded at negative or zero trading prices. If this happens, all of CME Group's trading and clearing systems It continues to function normally, and all file and message formats support such prices, such as WTI crude oil futures, etc.”

Having said this, Lu Ming paused for a moment and continued: With the tightening of crude oil storage pressure in the Cushing area, there has actually been a serious liquidity risk. I personally recommend that longs go out first, especially for the 2005 contract to move positions. month, there is no physical delivery capability, so we have to guard against it.”

For the oil pipeline in the Cushing area of ​​Oklahoma, Lu Ming has already laid a secret plan in advance through the hands of Wanxiang Group, but there is no problem with this layout to undertake a stuffed source oil treasure, but if ICBC, CCB When the products under it are also boring, there is really no way to get it.

It is obviously unrealistic to lease all the oil pipelines in the Cushing City area, and it is very difficult for this dark flag to be laid at present.

The 2005 contract is the key, the so-called 2005 contract is the May 20 contract.

This calamity can be avoided by shifting positions and changing months, because futures contracts have expiration dates, and unlike stocks, they can be held for a long time. Therefore, if you want to hold a fixed futures position, futures investors must Before the expiry date, close out the current month's contract and buy the next month's contract.

For example, before the physical delivery, the 2005 contract is closed, the 2006 contract is bought, and the rollover process from May to June and July is to shift positions to months.

There are roughly two types of players in the futures market: one is industrial customers and the other is speculators.

Industrial customers are those who are serious about the oil trade, such as the bosses of petrochemical plants. When they do futures, they come for crude oil, hold futures contracts until they expire, and finally make physical delivery.

Speculators are pure futures speculators who play virtual transactions and have no ability to deal with crude oil.

At present, the 2005 contract is like a pond. At the beginning, industrial customers and speculators were playing in the pond. There were a lot of big fish and small fish in the pond, and the water level was also high.

With the passage of time, the expiry date of the contract is approaching, and speculative customers will move their positions and change the month one after another, close the 2005 contract and transfer it to the 2006 contract, then the water level of the 2005 contract will continue to drop, and the fish will become more and more few.

If the bulls want to close their positions, they must find a short position in the market to trade against each other, and both sides operate in the opposite direction at the same time, and the positions can be closed.

The closer the contract is to expiry, the fewer counterparties that can be closed, and the less liquid it is.

Whether it is the crude oil products of China, Industrial and Construction, they are not serious industrial customers. They are a large number of domestic crude oil players who watch the oil price plummet and want to come in and make more windfalls. Can also earn hemp, naturally happy to see.

The problem is that it is not an industrial customer.

Crude oil is a strategic material, and there is a strict license management system for import and export. China, industry, and construction are all financial banks. For crude oil, they only want to make some money by linking trading arbitrage, and they have no qualifications for crude oil import and export at all.

As a non-bank financial institution, Tiansheng Capital also has no import and export qualifications.

It's just that the green light was given from the top, and Tiansheng Capital led the strategy behind the scenes to some companies with import and export qualifications, most of which were companies that were quickly reorganized and had the nature of Guo Jia's team.

Moreover, Tiansheng Capital itself is still not directly involved, and will not even appear on the list of shareholders of reorganized companies? It exists as a shadow shareholder.

What's more, these major banks have not leased a single oil pipeline in the Cushing area, and they will take delivery.

The video conference was still going on, and all the participants took Lu Ming's concerns seriously.

Comrade Lu Ming, what do you mean... is it really possible that oil prices will fall to negative numbers?

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