The Son of Finance of the Great Age Chapter 131

  Chapter 131 Entering the Army Oil Finger

  After successfully acquiring Huade Real Estate, Zhong Shi retained most of the management and promised to give the management a 20% profit dividend, which stabilized the floating Huade Real Estate. However, he still handed over the financial power to the professionals recruited from the Liao family, after all, this is the foundation of a group company.

As for the debt, it may be an astronomical figure for others, but Zhongshi only paid two to three billion US dollars, and successfully revitalized Huade Real Estate again. The company's various businesses continued to operate after a period of stagnation up.

   So far, Zhongshi has successfully controlled a group with a market value of over 10 billion at a cost of less than 5 billion Hong Kong dollars, and successfully delisted it. Although it is difficult to say whether it is a profit or a loss, it only needs a little manipulation, and after a few years, it will be repackaged and listed, and the market value will definitely exceed the current amount.

   Within a few months after the successful acquisition, Zhong Shi continued his studies in Chicago. At the end of September after the end of the first academic year, he came to New York, the capital of the world.

  Out of Kennedy Airport, Zhong Shi saw Andrew and Liao Xiaohua waving to him vigorously at the exit. The two were specially recruited by Zhong Shi from Hong Kong, with the purpose of doing a big job in the NYMEX crude oil market.

Like LME, NYMEX is also an important crude oil exchange, and has more say in global crude oil pricing power. The light sweet crude oil futures contract they launched is the most liquid crude oil trading contract in the world, and it is also the The largest commodity futures variety. West Texas Intermediate Crude Oil, code-named WTI (WestTexas Intermediate Crude Oil), is a common type of crude oil in North America. Most of these crude oils are imported from Canada and the Gulf of Mexico, and then refined in the Midwest of the United States. Basically, they are produced in the same way as those produced in the Middle East. Oil doesn't matter much, but the strange thing is that the oil-producing countries in the Middle East have to obey the prices here, which is financial hegemony.

The WTI futures contract is designed to be 1,000 barrels of crude oil per lot. The trading of the next month's contract will be stopped a few days before the 25th of each month, usually on the 19th, 20th, and 21st, and then in the remaining ten days or so. time for delivery. For hedging considerations, the WTI contract is designed to be a long-term contract that can be held for up to eighteen months. (now up to nine years)

Besides Andrew and Liao Xiaohua, another person appeared in front of Zhong Shi. This person was Zhang Jiaqiang from Standard Chartered Investment Bank who used to make waves in the stock market. His actions in the stock market left a deep impression on Zhong Shi. Standard Chartered came on secondment.

  As for funds, Zhong Shi transferred a total of two billion US dollars, and this fund has gradually entered HSBC's account in NYMEX.

HSBC's seats in NYMEX are only at an ordinary level. When this sum of money entered their accounts, the employees in North America were really nervous, but they were more excited. You must know that such a sum of money is slightly After a little operation, the commission they can get is sky-high.

NYMEX has two types of seats: ordinary members and settlement members. Ordinary members only need to purchase one first-level seat, and settlement members need to purchase two first-level seats, and there are related guarantees for their own funds. After all, customers put funds In the account of the futures company, it is equivalent to depositing a demand deposit, so the futures company must keep sufficient margin in accordance with the regulatory rules. After all, the futures company can use this fund to do inter-bank lending to earn short-term profits.

At the end of August and the beginning of September, the crude oil market was experiencing a drastic change. First, the bulls made efforts in the spot market and the futures market at the same time, pushing the oil price to $19.22 a barrel, the highest in these two months, but at this price Under the influence of bulls leaving the market at profit and spot market falling, the price of crude oil plummeted all the way from the highest point of $19.22 to the lowest point of $17.19. Lowest price on the market anymore.

Under such circumstances, the hedging oil companies and spot dealers could not sit still. They originally used the futures market to avoid risks, but driven by huge profits, they quickly deviated from their original intentions and eventually became futures markets. on the main force. Seeing that the oil price has fallen to such a point, they have aggressively increased their positions, which instantly increased the trading volume. On September 10th, the trading volume even increased by 100,000 lots compared to the previous day.

  At this time, there are still about ten days before the delivery of the October contract, and the long and short bulls have a lot of time to fight on the main October contract. In the next eleven days, the bulls and the bears fought fiercely in the oil futures market. In the end, the bulls who made huge profits on the September contract gained the upper hand, and settled the October contract on the 21st, the last delivery day. The price was pegged at $18.40 a barrel, up 7% from its lowest price.

  After the month change, the main players of both parties entered the November contract. At this time, Zhongshi's funds quietly entered the market.

   "Zhang Sheng, what is the expected market situation today?" Facing the soaring price of the October contract, Zhong Shi was a little confused. Although he knew that the bulls and the bears were fighting fiercely, he couldn't read the numbers that kept flashing on the screen.

   "The short sellers firstly closed out their previous profitable positions, secondly, they shifted their main force to other months, and moreover, they were afraid that the bulls would squeeze their positions as the delivery approached." Zhang Jiaqiang said calmly. "If the bulls sweep up the spot market, the bears don't have so many crude oil deliveries, and they will have to liquidate their current positions at a higher price, which will make it even more difficult for them."

  Now the total number of positions on the market is more than 300,000 lots, and the long and short positions each hold half. Even if they respectively close half of their positions, the short positions will still sell close to 100 million barrels of crude oil. Although the production of oil is divided into hundreds of millions of barrels per month, there are not necessarily so many crude oils that meet NYMEX delivery.

   "So there is such a thing! The futures market is really interesting, so do other trading varieties have similar problems?" After hearing Zhang Jiaqiang's explanation, Zhong Shi immediately understood, and then he thought of other trading varieties.

"It can be said! But it is not absolute. Trading varieties such as cotton, soybeans, and sugar are easy to get from other places, so the short sellers are not too panic in the case of a long squeeze. But if gold, silver In this way, short sellers are extremely cautious before delivery and will move contracts to other months early."

   "Gold? Uh... that's true. But the gold trading volume here is not very large, right? London is the main battlefield for gold trading?"

   "You are right, most of the transactions of precious metals are carried out in London. Why, Mr. Zhong, do you want to go to London after this transaction is over?"

   "Hehe, I was just talking casually." Zhong Shi laughed and changed the subject. You must know that the current price of gold is so low that it is simply ridiculous. In fact, until the end of the 1990s, the price of gold could not be boosted. was re-emphasized.

   "Mr. Zhong, how do we operate? Are there any specific regulations on position and price?" Seeing that Zhong Shi was a little out of control, Zhang Jiaqiang asked carefully from the side. "If we can set a range in advance, and then do some hedging on contracts such as fuel oil and diesel, we can also lock in profits in time."

   "I really don't know much about the crude oil market. Tell me first, what role can our funds play in the market?" Zhong Shi asked without answering.

Zhang Jiaqiang didn't make a sound, and after bowing his head and counting for a while, he said to Zhong Shi with some frustration: "Zhong Sheng, with all due respect, our little capital is really nothing in the market. You must know that on the NYMEX day The average position is more than 300,000 lots. Even if the margin of the clearing members is calculated, it is more than 300 million US dollars. In fact, the market accommodates more than 500 million funds every day, and a change in the price of one dollar involves 300 to 400 million U.S. dollar conversion, so to speak, there are billions of funds flowing in this market every day."

   Except for Zhong Shi, Zhong Yi, and Andrew, the others don't know how much money Zhong Shi has used this time. What Zhang Jiaqiang knows is that Zhong Shi will mobilize 100 million US dollars of funds to enter the crude oil market. Even the 100 million made Zhang Jiaqiang feel ashamed, and within a few days of arriving in New York, he mobilized a group of traders from Hong Kong again.

"I don't have a specific trading plan, but I have a general direction, and I need you and your team to achieve my goal." Zhong Shi said flatly without changing his face, "Specifically, it will be in the past few months. Crude oil and its related contracts are short, and a huge position is established. Of course, it will not involve physical delivery. In terms of changing months, you and your team need to avoid being forced into positions. In addition, these positions must be in It will all be liquidated in December." After a pause, Zhong Shi went on to say: "The current amount of funds is a bit small, but you don't have to worry, the follow-up funds will arrive later to ensure the maintenance of the position."

  For settlement members, crude oil futures are about 20 times leveraged, which is 5% margin. For ordinary members, the leverage is a little lower, plus the additional margin charged by the brokerage company, each contract needs about 1,500 US dollars, and the leverage ratio is about 14 times.

   "..." Zhang Jiaqiang was a little dazed. He really didn't know what to say to this unique employer. Does he want to manipulate the market? Are you not afraid of the SEC's punishment? You must know that the United States has special laws on futures manipulation, and the crime is equivalent to a criminal offense. Zhang Jiaqiang felt that he had to remind Zhong Shi of this.

   "Don't worry, the exchange and the supervisory committee will leave it to me, and I guarantee that you will not be implicated!" Regarding the concerns of Zhang Jiaqiang and others, Zhong Shi just waved his hand and skipped the topic.

   Thank you very much book friend Wind of the Lonely Moon, Loneliness. . Alright, monthly pass support for Wolf Roaming North America, Twilight Cold Wind, and yu85802yu! Thank you for drinking enough water, habitually waiting for more~~, Shen Zhongche, seemingly pure rewards! The author would like to express his special thanks to Shen Zhongche for sending a birthday red envelope~~ I received so much support today, the author was pleasantly surprised, there are only two days left in this month, and the author still needs to pay more for these two days even if he stays up late A few chapters will be updated twice a day in the next two days. I hope everyone will support me a lot. If possible, I hope to vote for a few more monthly tickets. The author is very grateful, thank you~~

  (end of this chapter)

Chapter end