Reborn as a tycoon in Hong Kong
Chapter 170 Partners (Part 2)
After confirming cooperation.
Iwasaki Mineryu said aloud: "Lin Jun, can you tell me now what kind of profitable business it is?"
"certainly!"
Lin Baicheng nodded and said: "First of all, let's start with my property in Xiangjiang, Hutchison Whampoa. I got control of this listed company a few months ago, and then used the company's funds to invest in gold futures. Just like the two of us. Like all cooperative companies, they started long and then short, and now they can be said to have made a lot of money.”
"Mr. Lin's judgment ability is indeed great. It's a pity that I didn't listen to Mr. Lin at the beginning, so we didn't make much money."
Iwasaki Mineryu gave Lin Baicheng a thumbs up, and then said with some confusion: "Lin Jun, since you know that the gold price is going to be adjusted, why don't you short-sell those funds? Nowadays, the investment of that part of the funds is losing money. A lot."
"I am optimistic about the long-term trend of gold prices, and I am not 100% sure about the gold price adjustment, so I use a small amount of funds to go short and be ready to go long at any time."
Lin Baicheng explained, and then went on to get down to business: "Investing with Hutchison Whampoa's funds is profitable, but only a few people know that I shorted the long positions later. Now some major shareholders of the company think that my investment is a loss." We have money, so we are selling the company’s stock and shorting Hutchison Whampoa at the same time. What we have to do is to buy Hutchison Whampoa’s stock at a lower price and go long Hutchison Whampoa at the same time to eliminate the short position.”
"Jun Lin, what is the total market value of your Hutchison Whampoa Company? What is the profit earned from this investment?"
Iwasaki Mineryu asked aloud and explained: "If the company's market value is high but the profit is not very large, it is not a big benefit. Once the short side has strong funds, the major shareholders will continue to reduce their holdings and use some means. , the stock price may still be suppressed.”
As long as the funds are strong enough and the benefits are not too great, the short side can completely ignore the benefits and continue to use the funds in hand to suppress the stock price, causing the stock price to plummet. This is the power of capital.
"Hutchison Whampoa's current total market value is a little over HK$2.5 billion."
As major shareholders sold off, Hutchison Whampoa's share price fell again, and the total market value decreased again.
“At the beginning, I used 150 million U.S. dollars to go long gold futures, using 5 times leverage, and made about 31 million U.S. dollars. Then I went short from long. After financing, I used 750 million U.S. dollars to go short. The short price was 195.75 U.S. dollars per ounce. The current gold price It has fallen to around US$173 per ounce, a drop of nearly 12%, and a profit of about US$87 million.”
"The two additions add up to a profit of nearly US$120 million. What's more, the price of gold is still falling. I haven't closed the position yet, and there is still some room for profit."
"Let's calculate it based on the profit of 120 million US dollars for the time being. After deducting handling fees, financing interest and taxes, there should still be a profit of 90 million US dollars, and if this amount is converted into Hong Kong dollars, it will be about 3.8 billion Hong Kong dollars.”
"A company with a total market value of only about HK$2.5 billion suddenly made an extra profit of about HK$400 million. Iwasaki-kun, do you think this is a big benefit? Do you think Hutchison Whampoa's stock price will rise? We Is there still a chance of losing?"
"This is indeed a business that almost never loses money."
Iwasaki Mineryu laughed when he heard this. He was already sure that he would make money by going long Hutchison Whampoa this time.
Lin Baicheng continued: "I personally hold 49.9% of Hutchison Whampoa's shares. I will not sell any of these stocks. The number of stocks that other major shareholders can sell is limited, so as long as sufficient funds are prepared to take over, there is no need to worry. The stock price has been suppressed.”
Iwasaki Mineryu smiled and said, "I feel more relieved when Mr. Lin says that."
Lin Baicheng nodded: "Iwasaki-kun, something unexpected has happened. I hope you will prepare the 200 million US dollars immediately. It is best to transfer it to Xiangjiang today and start operations tomorrow."
"No problem, I'll do it right away."
Iwasaki Mineryu immediately said, this is a visible profit, it would be a pity if it flew away.
Lin Baicheng did not retain Iwasaki Mineryu and watched Iwasaki Mineryuo leave.
Lin Baicheng was not worried that Iwasaki Mineryu would leave him and do it alone after knowing this. Without the cooperation of Lin Baicheng, the major shareholder, it would not be possible. To take the simplest example, Lin Baicheng suddenly announced the truth. Iwasaki Mineryu didn't even have time to open a position. A large amount of money would immediately pour into Hutchison Whampoa stock, and the short orders in the options market would disappear immediately. not see.
Go outside to find Maori Haruko, Lin Baicheng asks Maori Haruko to take him to the villa. When he left Japan last time, Lin Baicheng gave Maori Haruko a sum of money and asked Maori Haruko to buy him a villa in Tokyo. He usually let Maori Haruko live in it, but he would live in it when he came here.
When he arrived at the villa, Lin Baicheng asked Maori Haruko to give him a massage. It was really tiring to fly for more than ten hours.
Under Maori Haruko's massage, Lin Baicheng fell asleep.
At around eight o'clock in the evening, Lin Baicheng woke up and learned from Haruko Maori that Iwasaki Mineryu had called a few hours ago and said that he had transferred US$200 million in funds to Xiangjiang, and that he himself had also gone there first. After returning to Xiangjiang, just ask Lin Baicheng to contact him directly after returning to Xiangjiang.
Iwasaki Mineryu is certainly positive about this kind of good thing that can make money, and what he used this time is not the funds from Mitsubishi Bank, but the funds temporarily borrowed from his father. In addition to the repayment of the principal when the time comes, this money does not require interest, and all profits earned are his own.
Lin Baicheng didn't say anything after learning about it. After the meal, he gave a gift brought back from the United States to Maori Haruko and wished her a happy birthday in advance.
Maori Haruko's birthday is the day after tomorrow, and Lin Baicheng will go back to Xiangjiang early tomorrow morning. He will not be able to come to Xiangjiang in the short term, so he can only give Maori Haruko a birthday gift in advance.
Maori Haruko was very surprised when she received the gift. She didn't expect that Lin Baicheng would remember her birthday and specially bought her a gift.
In fact, if the gold price had not dropped to around 173 US dollars per ounce, Lin Baicheng could have brought Maori Haruko to Xiangjiang. But the gold price has dropped to this price. When the gold price drops to 170 US dollars per ounce, Lin Baicheng will close all the short selling orders and turn them into long positions. Therefore, the gold futures investment in Tokyo requires Mao Li to be watched by Haruko and be ready to press the button at any time. His command operates.
Isabella is watching over there in the United States, and there are traders arranged by Yum Securities over there in London. Lin Baicheng naturally has accounts for both places.
The next morning, Lin Baicheng returned to Xiangjiang with his bodyguards. Because he was on a plane early in the morning, Lin Baicheng returned to Hong Kong before nine o'clock. He did not go to the exchange, but to Hutchison Whampoa.
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