Chapter 162 162 100 times leveraged short Hang Seng Index has set a profit of HK$6.3 billion

  At 9 o'clock in the evening, Wang Guanxi came to the Central Finance Private Club.

This is a place where financial elites gather. Many people came here tonight. Many people are discussing business, such as selling financial assets under their own name or their company's holdings, or equity in non-listed companies at market prices. Or real estate, such as real estate, property...

  Of course, there are also people who work together to make venture capital and share the risk.

  Several acquaintances are there.

  Wing Lung Securities Company, Wu Zhanhai.

  Asia Financial Holdings, Chen Tianqing.

  Dingyi Financial Company, Li Guangyu.

   Guoco Financial Group, Guo Linhai.

  Western Securities International Securities, Guan Wenwei.

  South China Securities, Wu Hongsheng.

  Convoy Global Insurance, Chairman Chu Jianming.

  Everyone's life seems to be good recently. The stock market is rising and bond yields are stable.

Wu Zhanhai's life is going well because he previously mortgaged some of the listed company stocks held by Wing Lung Securities to the bank, obtained a loan, and then went to buy the Hang Seng Index. He made a total of 4000 lots long, and now his account has a floating profit 4 Billion Hong Kong dollars.

  Wu Zhanhai is very enthusiastic: "Guanxi is here, come, have a drink"

   "Okay" Wang Guanxi had a drink with Wu Zhanhai.

  Next Wu Zhanhai asked: "Feng Shaokun will not come with you?"

  Wang Guanxi: "Let’s find a woman"

  Chu Jianming, chairman of Convoy Global Insurance, bought the portfolio bonds sold by Hong Kong Black Shirt Insurance at a 40% discount, and sold them 300 million yuan worth of portfolio bonds.

   made him earn 40% on the spot. After learning that Wang Guanxi was the boss of Hong Kong Black Shirt Insurance, he immediately came over to greet Wang Guanxi and make friends.

  Wang Guanxi smiled and said, "Mr. Chu, come and have a drink."

The chairman of Convoy Global Insurance, Chu Jianming, bought a toxic portfolio bond. By then, it was really worthless. I heard that Convoy Global Insurance bought a large number of Wall Street portfolio bonds. They have eaten a lot of stable interest over the years. There are many US stocks, many of which are bank stocks.

This time, Convoy Global Insurance felt better. The combination of bonds was sold to Convoy Global Insurance at a 40% discount, which also consumed the cash flow of Convoy Global Insurance. As soon as this shock wave came, there was not enough cash, and major banks tightened. Loans, this Convoy Global Insurance will inevitably end.

  "Okay, have a drink" Chu Jianming smiled and clinked his glasses.

  There is nothing more stupid than Wang Guanxi, who actually sold 500 million worth of portfolio bonds to them for 300 million!

  Everyone chatted,

  Li Guangyu of Dingyi Financial Company, Guan Wenwei of Western Securities International Securities, and Wu Hongsheng of South China Securities learned that Wu Zhanhai of Wing Lung Securities had a floating profit of 400 million on the Hang Seng Index.

  Li Guangyu couldn’t help but said: “Brother Zhanhai, that’s great, why didn’t you say a word when you hunted down the bottom last month?”

  Guan Wenwei said admiringly: "Damn, the account has a floating profit of 2000 points, you are awesome"

  Wu Hongsheng asked: "This time all the losses in stocks this year have been earned back, right?"

  Wu Zhanhai had a drink and shook his head: "Not yet."

   However, he changed his conversation and said: "This time I earn more than 4000 points and I will close my position. Alas, I have never caught such a market."

   "Last month's bargain hunter really copied it right"

  They are discussing the future trend of the Hang Seng Index.

  Chen Tianqing of Asia Financial Holdings is not very interested and drinks alone.

Guo Linhai of Guoco Financial Group is talking about cooperation with people from several financial institutions.

  Wang Guanxi listened to Wu Zhanhai and others analyzing the future trend of the market, and thought a little.

  Recently, he hasn’t made stocks. Firstly, he took a break, and secondly, there are really no stocks to operate.

  As for shorting the Hang Seng Index, it needs to wait until September. Now he is not in a hurry, nor dare to enter the market rashly. If his position is liquidated, who will cry.

  However, Wu Zhanhai, who quietly went to the bottom of the Hang Seng Index last month, actually made a surplus of 2,000 points, and only now said it.

  Looking at Li Guangyu, Guan Wenwei, and Wu Hongsheng's interest in the Hang Seng Index, it was obviously moved by Wu Zhanhai.

  Wang Guanxi shook his head and continued to drink.

  At 11 o'clock in the evening, he returned home.

  Today is August 3rd, Sunday.

  In fact, many things have happened these days.

  [US Ford Motor Company in the second quarter of a large loss of 8.7 billion US dollars]

  【General Motors in the United States did not lose 15.5 billion in the second quarter, the third highest in the company's 100-year history】

The share prices of Ford and General Motors have been hit hard, and the share prices of listed companies in the global automotive industry have fallen to varying degrees. Fortunately, Wang Guanxi’s Hong Kong black shirt insurance company has cleared the shares of BYD Auto and BYD Electronics early, otherwise they will definitely lose money. small.

  Today, the Hong Kong Black Shirt Insurance Company has a debt of 3.7 billion, an asset scale of 3.6 billion, a liability reserve of 2 billion Hong Kong dollars, a current cash of 400 million, financial assets of 1.2 billion, and a net debt of 100 million.

  However, these 1.2 billion financial assets are all very good financial assets. Before the financial tsunami swept the world, there is still room for appreciation, so Wang Guanxi does not plan to sell them in a hurry.

  The recent turmoil in the financial market seems to be brewing an ominous omen.

  But everyone is not aware of the advent of risks, and the stock market is still rising in general.

  Although there are many companies that have suffered losses, everyone ignores the same thing. At first, when these bankrupt companies do not exist, many companies close down every day in the world. Few people think that there will be a major financial turmoil.

  The major Wall Street investment bank that triggered the financial tsunami [Lehman Brothers] is still alive and well.

  News also reported: [Lehman Brothers considers selling its asset management department for US$8 billion]

  This Lehman Brothers Bank acquired NeubergerBerman for US$2.6 billion 5 years ago, and now it is sold for US$8 billion. How about making a lot of money?

  But it can't avoid its bankruptcy!

  [Merrill Lynch Investment Bank will sell US$8.5 billion in stocks and sell bonds]

Merrill Lynch Investment Bank is the third investment bank in the United States and will be acquired by Bank of America in the future. This time Merrill Lynch Investment Bank intends to sell US$8.5 billion in stocks and sell US$30.6 billion in bonds at 1/5 of the face value to support the mortgage. Loan losses jeopardize credit ratings.

   "This Merrill Lynch Investment Bank will soon be over."

   "I have to get an investment bank in the future" Wang Guanxi couldn't help but look forward to thinking of this.

  What is an investment bank?

  It is usually a securities company in China, and it is usually called an investment bank in overseas.

  However, there is still a little difference between investment banks and securities companies. Of course, to be precise, there are still so little differences.

  When the global financial tsunami spread all over the world, many investment banks were ruined, and many securities companies in Hong Kong were ruined. When Wang Guanxi bought the cabbage at a price.

  [Six major European banks write down US$31.7 billion in Merrill Lynch’s sale triggering a wave of writedowns]

  The six major banks will write down a total of US$31.7 billion, of which UBS expects the largest write-down, which will be as high as 8.4 billion Swiss francs (approximately US$8 billion), and Deutsche Bank has a write-down forecast of 5.6 billion euros.

  "The big European banks have also been hit, but European stocks, American stocks, and Asian stocks are still rising."

  Recently, the stock market has been on the rise, constantly setting new highs, but Wang Guanxi feels that he can go short.

  Originally, Wang Guanxi wanted to wait until September 14th and then go short the Hang Seng Index, but now he found that it seems that it can really be advanced.

   Then Wang Guanxi opened the Hang Seng Index and took a closer look. The Hang Seng Index is currently at 23,300.

The Hang Seng Index began to rise from the 20850 position on August 20, 2007. On November 1, 2007, the Hang Seng Index rushed to the 32000 position and then began to turn around and fell. By March 18, 2008, it fell to the 20,800 position. The 20,800 position is a A small bottom, and then began to rise. On May 7, 2008, it rose to the 26300 position, and then turned down. On July 15, 2008, the Hang Seng Index fell to the 20900 position, which was the second small bottom, and then began After rising, it is now at 23,300.

  "The positions on August 20, 2007, March 18, 2008, and July 15, 2008 are connected to a straight line."

   "November 1, 2007 and May 7, 2008 are connected together to be a 35-degree downward sloping line!"

  "The Hang Seng Index is now at 23300, which is on this downward **** of 35 degrees. This is the third small top, which means that this is the highest point in the next few months."

  Wang Guanxi feels happy when he thinks of this, this is the perfect short position.

   Then he zoomed out the candlestick chart.

  "After the Hang Seng Index's candlestick chart is reduced, it will be a descending triangle shape!"

Descending triangle: It is the performance of a contest between the long and the short in a certain price area. The bearer continues to increase selling pressure, and the stock price has not risen to the last high before selling again, while the bullish side sticks to a certain price. The price's line of defense allows the stock price to get support every time it drops to that level. In addition, the formation of this pattern may also be caused by someone consigning shipments until the supply of goods is sold out.

  Of course, there are two types of triangles, ascending triangles and symmetrical triangles.

   Here is a descending triangle shape, Wang Guanxi feels that this is the perfect opportunity to go short.

  If it were in normal times, he would definitely not dare to go short, for fear of being blown out, but now it is different.

   "Damn, I will be short here tomorrow!"

  Thinking of this, Wang Guanxi called Feng Shaokun of Yongheng Securities Company overnight.

  The call is not answered, continue calling.

  At this moment, Feng Shaokun was in his mansion and had an appointment with a sister. The two were drinking and affectionate on the sofa. The phone kept ringing, so he had to put down the glass and sister, and then came to the counter.

   "What the **** is that?"

  At first glance, he found that it was Wang Guanxi, so he picked up the phone.

  The call is connected.

  Wang Guanxi said: "Brother Feng, I am going to do the Hang Seng Index. Give me a hundred times leverage."

  Currently, he has 200 million Hong Kong dollars in his account. Normally, securities companies, banking institutions, and futures companies provide investors with 10 times leverage.

One lot of the Hang Seng Index requires a 100,000 Hong Kong dollar margin, and Wang Guanxi’s 200 million Hong Kong dollar account, half-position operation, that is, 1000 lots can be done, because with 10 times leverage, 1,000 lots require 100 million Hong Kong dollars as margin Up.

  But Wang Guanxi is very familiar with Feng Shaokun and can apply for 100 times leverage. One lot of the Hang Seng Index only needs a 10,000 Hong Kong dollar margin, and 10,000 lots will only require a 100 million Hong Kong dollar margin.

  The greater the leverage, the greater the risk. For 1 lot of Hang Seng Index to fluctuate one point is HK$50, and for 10,000 lots of Hang Seng Index, one point of fluctuation is HK$500,000.

Wang Guanxi’s 200 million Hong Kong dollar account, half position operation, short 10,000 hands of the Hang Seng Index, will spend 100 million Hong Kong dollars in margin, and 100 million Hong Kong dollars in available funds are left in the account. If the Hang Seng Index rises by 200 points, Wang Guanxi will blow up.

  But the greater the risk, the greater the profit.

  Don’t take risks and make a lot of money.

  Wealth is always inclined to those brave and daring adventurers.

   Feng Shaokun asked curiously on the phone: "Guanxi, so fast? Didn't you say it started in September?"

  100 million Hong Kong dollars, with 100 times leverage, short the Hang Seng Index,

  As the provider of 100 times leverage, Wing Hang Bank would have to put 10 billion Hong Kong dollars into the market.

  10 billion in cash, yes, it is 10 billion Hong Kong dollars in cash.

  For big banks, that is a trivial matter. The deposits of big banks are very, very large, and many big banks give these funds or investors dozens of times the leverage.

  It’s not a problem to spend tens of billions of dollars at a time.

  But for small and medium-sized banks, 10 billion Hong Kong dollars, okay.

  Of course, after Wang Guanxi’s capital exceeds 200 million Hong Kong dollars, in order to avoid risks, Wing Hang Bank will not provide him with 100 times leverage, and the leverage will be reduced to 10 times.

  Wang Guanxi smiled and said, "Yes, I will do it tomorrow."

   "OK, come here tomorrow morning, you need to operate at Wing Hang Securities Company"

"Ok, see you tomorrow"

  After finishing the call, Wang Guanxi was a little excited.

  Before I was doing stocks, I didn't make much money at a time, and the trading volume of stocks could be compared with stock index futures.

  What is stock index futures?

  For example, buying and selling Lushen 300 Index, Hang Seng Index, Nikkei 225 Index, Dow Jones Index, Standard & Poor's 500 Index, Nasdaq Index...Basically all large-cap indexes in various countries can be bought and sold.

  This time he will make a lot of money in the Hang Seng Index, Wang Guanxi is particularly excited.

  "We are about to start making a real fortune"

  Hang Seng Index will drop to 10700 after the global financial tsunami. In other words, if Wang Guanxi shorts 10,000 hands at 23,300, he will earn 12,600 points, one point is 500,000 Hong Kong dollars!

  How much money will you make?

  HK$6.3 billion!

  Yes, it is 6.3 billion Hong Kong dollars!

  But Wang Guanxi will not be satisfied with HK$6.3 billion. During the period, the Hang Seng Index has risen and fallen. He has to eat up these profits and maximize profits!

  He still uses profits to add positions to short!

  He won’t be satisfied if he doesn’t make more than 10 billion this time!

  Even more than 15 billion!

"I can not wait any more"

  Wang Guanxi was very excited and could not sleep anymore.

  The next day, August 4, Monday, the alarm rang and Wang Guanxi got up vigorously. To be honest, he was in good spirits and was not sleepy at all.

  After washing up, I went downstairs to eat breakfast, and rushed to Wing Hang Securities Company.

   also prepared to buy Feng Shaokun a breakfast.

Changing to other banks, it is very difficult for Wang Guanxi to apply for 100 times leverage, but Wing Hang Bank is different, but they have cooperated for a long time. It provides 100 times leverage. Wang Guanxi operates 10,000 hands, and they can also collect more money. More handling fees, and interest.

In the Mainland, many securities companies and futures companies will give retail investors high leverage, especially the sales staff of the fund. I can’t wait to let you use high leverage every day to make large sums of money. This way, securities companies will not only earn interest, but also a lot of money. The handling fee, because you will trade a stock once, there will be a handling fee, such as five ten thousandths, three ten thousandths.

  The more the trading volume, the more commissions the securities company will draw. If a retail investor’s annual trading volume is 100 million, it will bring the securities company 30,000 to 50,000 income.

  The more clients of each securities company, the more clients’ funds, and the larger the client’s transaction volume, the more handling fees it charges.

  Of course, this is only the income from the brokerage business of securities companies. Many securities companies have their own funds to do business in the financial market.

   "Thank you, I actually bought breakfast for me." Feng Shaokun took the breakfast with a smile, and said with a smile: "It's ready and ready to operate"

   "OK"

   "I'm just waiting for the stock market to open." Wang Guanxi was sitting on Feng Shaokun's office chair excitedly, while Feng Shaokun was going to have breakfast. After breakfast, he didn't forget to chat with his Nanjing lover Liu Fanxia.

  Time passed in a flash.

  The stock market is open.

  The Hang Seng Index jumped by 25 points and opened at 23325. Wang Guanxi went short 5000 hands without saying a word!

  The 5,000 short-handed orders were dropped, and the buying in the market was immediately emptied. Because of the small trading volume, the Hang Seng Index fell by 25 points, from the 23325 position to the 23300 position.

  Wang Guanxi didn’t dare to short 10,000 lots at one time, for fear that the main bulls in the market would rise up, and if the market rose by a few hundred points, he would blow up his position, so he was cautious and cautious.

  Let’s try 5000 hands first.

  Five minutes later, the Hang Seng Index fell again by 25 points to 23285.

  The long and short sides are fighting fiercely.

  Trading volume is increasing, thousands of lots, tens of thousands of lots of orders flood in.

  Wang Guanxi waited patiently.

  After 15 minutes, the bulls have a weak advantage. The Hang Seng Index began to rise from the 23285 position and quickly rose to the 23300 position.

  Here the bears once again exerted their strength. The two sides started a small battle, and the rally was quickly suppressed, and the bulls were weak.

  "The bulls are already weak, a good opportunity"

  Wang Guanxi shorted 5000 hands again!

  The Hang Seng Index suddenly fell by 25 points, from the 23300 position to the 23285 position.

  At this moment, Wang Guanxi holds a short list of 10,000 Hang Seng Index in his account. The average position is 23,300. One point fluctuation is a profit or loss of 500,000 Hong Kong dollars. The temporary floating profit is 25 points, and the total floating profit is 1.25 million Hong Kong dollars.

   Soon, the bulls in the market started again.

  Hang Seng Index rose to 23300 again, and the floating profit disappeared.

   rose to the position of 23325 in 10 minutes, with a loss of HK$12.5 million in the account.

  Wang Guanxi was a little depressed. He thought that as long as he went short, the Hang Seng Index would keep dropping.

  Unexpectedly, that's not the case.

  The bulls in this market are still quite strong.

  After another 5 minutes, the Hang Seng Index fell back to the 23300 position, and the long and short sides continued their battle again.

  At this time, a trader in the Hong Kong branch of Goldman Sachs suddenly shorted 100,000 lots of the Hang Seng Index, and immediately dropped the Hang Seng Index by 100 points, falling from the 23300 position to the 23200 position.

   "Great strength, continue to fall!" Wang Guanxi was overjoyed. The account floated 100 points, which is 50 million Hong Kong dollars, and the net value of the account is 250 million Hong Kong dollars. This is much faster than making stocks.

  But not long after, a trader at DBS Bank in Singapore bought 100,000 lots and directly pulled the Hang Seng Index from the 23200 position by 120 points, and the Hang Seng Index rushed to the 23320 position.

  Let Wang Guanxi regret that, for fear that the Hang Seng Index will rise by another 180 points, his account will be liquidated.

  He became cautious, looking at the board, he dared not relax for a moment.

   And cursed the **** who bought a lot of money inside.

   Soon the Hang Seng Index was shorted again, falling by 70 points to 23,250.

  But how long did it take to rise to the 23300 position.

  Next, the Hang Seng Index oscillated in the 50-point range from 23,250 to 23,300, and the long and short sides were inextricably fought.

   will not take advantage of short positions. The floating profit in Wang Guanxi's account has been between 0 and 25 million Hong Kong dollars.

  Dingyi Financial Company, Li Guangyu mobilized 200 million funds this time, and used 10 times leverage to buy 1,000 lots of the Hang Seng Index.

   "Really, this time I have collected 150 million funds to do the Hang Seng Index. I must make back the money I lost on China Resources Beer."

He lost hundreds of millions on China Resources Beer before, which was terrible. Last night, he talked to Wu Zhanhai and others about the future market trend chart. He felt that the Hang Seng Index would continue to rise. He could do a short period of Hang Seng Index and make a profit. Retreat at 2,000 points, one point is 50,000, and 2,000 points are 100 million.

  Western Securities International Securities, Guan Wenwei, mobilized 400 million funds and used 10 times leverage to buy 2000 lots of the Hang Seng Index. Like Li Guangyu, he also expected to earn 2000 points and then retreated.

  One point is 100,000, and two thousand points are 200 million.

  South China Securities, Wu Hongsheng, mobilized 600 million funds and used 10 times leverage to buy 3000 lots of the Hang Seng Index, which is also expected to earn 2,000 points, one point is 150,000, and 2,000 points are 300 million.

  The leverage they use is normal leverage, only 10 times. One hand of the Hang Seng Index requires a deposit of 100,000 Hong Kong dollars. Unlike Wang Guanxi, who applied for 100 times of the Hong Kong dollar, one hand of the Hang Seng Index only requires a deposit of 10,000 Hong Kong dollars.

  Wang Guanxi can short 10,000 lots of the Hang Seng Index under 100 times leverage.

  Wang Guanxi’s risk factor is also 10 times higher than Li Guangyu, Guan Wenwei, Wu Hongsheng and others, but the income is also ten times higher.

  The Hang Seng Index has been oscillating wildly.

  Li Guangyu, Guan Wenwei, and Wu Hongsheng accounted for temporary profits and temporary losses.

  Thousands of their hands are nothing at all in the Hang Seng Index with such a large trading volume, but their leverage is small and they are not worried about liquidation.

  At least one thousand points should be dropped to liquidate the position.

  Finally, when the market closed in the morning, the Hang Seng Index fell to 23250 again, with a floating profit of 25 million Hong Kong dollars in the account.

  Wang Guanxi breathed a sigh of relief.

   "There was no loss this morning, should it be safe?"

  The Hang Seng Index may fluctuate hundreds of points a day, and when it is high, thousands of points are possible.

  The position will be liquidated in one click.

  His little money is like a lone boat in the waves, it will capsize if he is careless.

  (End of this chapter)