Reborn as a tycoon in Hong Kong

The new year passed by unconsciously.

Lin Baicheng's aunt Lin Yan and her family stayed in Xiangjiang for a few more days before returning to the United States.

Lin Yan's family has become accustomed to staying in the United States, so if they have a choice, they prefer to work in the United States, so arrangements for them will have to wait until Lin Baicheng goes to the United States.

Lin Yan's family did not refuse the good job Lin Baicheng wanted to arrange for them. They already knew that Lin Baicheng was a billionaire. When relatives are prosperous, no one would be willing to take advantage of it to make their family's life better.

Lin Baicheng was very busy this New Year, mainly because many of his management came to his home to wish him a happy New Year.

Not to mention Chinese people like Cheng Yufeng, Anyuan, Liu Yihui, etc., even white people like Wei Li came to wish Lin Baicheng New Year. Although Wei Li and others do not celebrate the Chinese New Year, they have known that the Chinese New Year is celebrated these days after living in Xiangjiang for many years. Now their big boss has been replaced by Lin Baicheng. If they do not wish them a happy New Year, it will be in vain for them to be in the workplace. Been around for so many years.

Although he was very busy, Lin Baicheng warmly entertained the visiting management and found time to chat with them. Fortunately, the people who came to visit were the management, and the number was limited, otherwise Lin Baicheng would really not be able to entertain them.

February 13th, the seventh day of the lunar month, happened to be a Monday, and most companies in Hong Kong were working on this day.

Companies under Lin Baicheng's name also officially started working on this day.

On his first day at work, Lin Baicheng went to HSBC Bank to find Shen Zhou.

Lin Baicheng is no small person now. He contacted Shen Chow just before he went, and Shen Chow said he had time.

The two met in Shen Cong's office. They chatted for a few words before getting down to business. Lin Baicheng revealed the purpose of coming to HSBC this time.

"Daban Shen, it's like this. I want to invest in gold futures, and I want to use financing leverage. HSBC should have this business, right?"

For Lin Baicheng, all his investments in the past few years have been in gold futures. Only after the price of gold reached its peak and collapsed in 1980, he would use his funds to invest in other investments. With such an investment direction that can definitely make money, why would he choose to invest in something else?

"There is no gold futures trading here in Xiangjiang, but there is in London, and HSBC also has this business. How much capital is Lin Sheng prepared to use for futures trading? How many times the leverage is he prepared to use?"

Shen Zhou certainly welcomes this kind of business that comes to his door. He can't help but think that the last time he sold Hutchison Whampoa's shares to Lin Baicheng, he really did not make a mistake. Otherwise, this business will definitely not be HSBC's turn. After all, HSBC and Lin Baicheng did not have any cooperation.

"I am going to use $150 million as principal to trade gold futures, using five times leverage."

The money Lin Baicheng can use is US$200 million. After Hutchison Whampoa borrowed HK$500 million from HSBC, plus the funds recovered from selling short-term investments, he can invest US$150 million. Therefore, Lin Baicheng can invest in gold futures in total. The funding is $350 million.

Lin Baicheng channeled all of Hutchison Whampoa's US$150 million investment through HSBC. After all, HSBC is the largest bank in Hong Kong. Now that there is no own bank, Lin Baicheng is of course willing to cooperate with HSBC.

The reason why he only invested US$150 million through HSBC's channels was because Lin Baicheng also had to take care of Standard Chartered Bank and Mitsubishi Bank and build closer relationships with these two banks. Furthermore, it is not appropriate from a risk and safety perspective to invest all the funds through one bank. Investing in three banks can share the risks.

"so much?!"

Shen Cong couldn't help being surprised when he heard this. Although he handled a lot of funds, a one-time capital of 150 million US dollars was no longer a small amount. If converted into Hong Kong dollars, it would be more than 600 million Hong Kong dollars, not to mention that this fund would need to be used for five years. times leverage, which means that Lin Baicheng will use more than 600 million US dollars to trade gold futures.

"Lin Sheng, this amount of money is not a small amount. Are you sure you want to use such a large amount of funds for gold futures trading? The futures market is constantly changing and no one can predict it. If you trade with five times the leverage, a one-point loss would be equivalent to Yu lost 5% of the principal, which is US$7.5 million, which would be over 30 million Hong Kong dollars.”

Shen Zhou persuaded him that since Lin Baicheng was sincere in cooperating with HSBC and taking care of HSBC's business, of course he wanted to cooperate with Lin Baicheng for a long time and did not want Lin Baicheng's assets to shrink seriously.

"Thank you, Mr. Shen, for reminding me. I know it well."

Lin Baicheng smiled and nodded. Of course he would not change his mind about this kind of investment that was bound to make money.

"Lin Sheng, just make sure you know what's going on."

After hearing this, Shen Cong stopped trying to persuade him. He advised that he had no control over whether Lin Baicheng listened or not. After all, the money belonged to Lin Baicheng, and he couldn't make the decision for Lin Baicheng.

"There is no problem with five times the leverage. Lin Sheng takes care of HSBC's business. HSBC will give certain discounts on the interest on financing leverage."

"Then I'd like to thank Mr. Shen for being here."

Lin Baicheng thanked him, and then said: "I plan to use this leveraged financing for one year, so HSBC will give me a discount in terms of interest. I will ask Weili to send someone to HSBC to discuss the details. What do you think, Mr. Shen?" "

"So long? No problem!"

Shen Porridge was a little surprised when he heard this. Lin Baicheng co-authored this and regarded the futures market as a long-term investment. Does Lin Baicheng understand the trading rules of the futures market? Generally speaking, the futures market is mainly for short-term transactions, but there are also long-term transactions, but leverage will never be used because interest is a large expense.

After leaving HSBC, Lin Baicheng went to Standard Chartered Bank again, interviewed with Standard Chartered's executive director Huo Yaohua, and negotiated a leveraged financing of US$100 million, using the same five times leverage.

Afterwards, Lin Baicheng returned to Hutchison Whampoa and informed Wei Li of his investment plan. After hearing this, Wei Li objected very much, because in his opinion, it was too risky to invest funds in the futures market, especially since Lin Baicheng also used five times leverage, which increased the risk.

The principal is US$150 million. If Hutchison Whampoa loses all this money, then Hutchison Whampoa will basically be finished and it will be difficult to turn around. Even if it is only a partial loss, it will still be a heavy pressure for Hutchison Whampoa. After all, Hutchison Whampoa itself owes more than one billion Hong Kong dollars in debt.

Unfortunately, Wei Li's opposition was useless. Lin Baicheng was resolute, and Wei Li had to send someone to HSBC to negotiate financing interest.

Standard Chartered Bank used Lin Baicheng's own funds, so he asked Anyuan to bring people to negotiate.

Because we were only talking about interest, we settled on the same day, five times leverage financing, one year of financing, and an annual interest rate of 9%, which is the same as the bank's external small loan interest rate.

The loan interest rate offered by HSBC and Standard Chartered to Lin Baicheng was only 8%. This was because Lin Baicheng had a large loan amount and the loan was for three years, so the two banks gave him a discount.

Not only for Lin Baicheng, but also for any large loan, the bank has the same attitude.

(Thanks to ‘Old Yiji Mo’ for the big 3000 point reward support!)