The Rebirth of the Financial Hegemon

v3 Chapter 13: Throwing Luntong into hell

The three-hundred-point slump caused countless bulls to be strangled to death.

In the countless long losses, the short holders are also full of profits.

Within 24 hours, Jushi Capital once again grabbed $100 million.

Under this crazy profiteering, even the winner has a kind of swaying fear.

On the same day, at the general meeting of Boulder Capital.

Liu Qiang raised his unease.

As a trader, this is his job.

"Boss, in the past few months, London copper has dropped from a high of 3,300 points to 1,860 points, which has hit a record low in two years. You can see if we need to reduce our positions.

I'm concerned that once it rebounds, our profits could retrace a lot. "

What Liu Qiang said makes sense.

In the midst of successive slumps, London copper hit an all-time low in two years.

There must be a surge before a crash.

Once London copper rebounds, it will inevitably cause losses to Boulder Capital, which holds a large number of short positions.

In theory, anything can be infinite when it goes up, but can never be infinite when it goes down.

Take Lun copper as an example.

The underlying object of the March copper futures on the London Stock Exchange is copper cathode.

From mining, to condensed extraction of ore, to processing into cathode copper.

Each step requires a lot of manpower and material resources.

These are all production costs.

Whether it is a mine or a copper company, the purpose of producing copper is to make money.

If the price of copper falls too much, the scale of production will inevitably suffer losses and be forced to choose to reduce production.

The level of price comes from the relationship between supply and demand.

When supply is drastically reduced, prices are bound to rise passively.

This is a truth that everyone understands.

As the head of the trading department, Liu Qiang felt that he had to remind his boss that it was time to pay attention to risks.

Liu Qiang's words fell.

Li Dabao from the Intelligence Department also spoke up.

Li Dabao now is proud of the spring breeze.

Since he came to Hong Kong, the personnel of the Intelligence Department have expanded significantly. Now, Li Dabao is the head of the department in charge of ten people.

On weekdays, in the department, Li Dabao has the supreme authority.

This made Li Dabao feel grateful to Zhao Jiangchuan in his heart.

He now earns an annual salary of several hundred thousand and manages dozens of people every day.

Nothing to brag about, you can put on the air of leadership.

All this was given to him by Zhao Jiangchuan.

So Li Dabao felt that he also had to do what he should do.

Zhao Jiangchuan is his Bole, and naturally he can't live up to Bole's trust.

"Boss, according to the intelligence data we have collected, the cost of Chilean mining companies from mines to copper cathode production is estimated to be around US$1,760, plus the shipping costs from offshore to port, about 1,800 yuan per ton."

"The cost of Freeport and the Mexican copper industry is relatively low, but it is also very limited, and the cost is expected to be 1,700 yuan. As for BHP Billiton, Rio Tinto and British and American Copper, the cost is higher and higher, and it is estimated to be $2,000 a ton."

"The production costs of some other small companies are even higher, and the average may be around US$2,200. Among them, Zambia's copper industry has the highest cost, and the production cost per ton is expected to reach US$2,400."

After Li Cannon returns.

He Changtian of the Risk Control Section spoke up.

This is the meeting method of Jushi Capital, and it is also the rule set by Zhao Jiangchuan.

The purpose is to create an excellent army.

An investment force that can coordinate and cooperate with various departments to complete tasks independently even when Zhao Jiangchuan is not in the company.

He Changtian.

A top student at Peking University in China.

Born a little cold, after graduating, he was assigned to the Bureau of Statistics. After hitting a wall in the unit, he accidentally joined the original amphibole investment.

After the company moved to Hong Kong, they also followed.

Two years ago, He Changtian was a poor scholar who could hardly even eat.

Today, he is already a senior management of Jushi Capital with an annual salary of several hundred thousand.

Therefore, He Changtian never regretted that he did not continue to be in politics at the beginning, and he was even more fortunate that he joined Amphibole Investment at the beginning.

Many of those underprivileged classmates who were like him back then were still struggling at the bottom.

Even the children of rich families back then were nothing more than going home to inherit their family's property.

Among the countless classmates, it is very rare to be able to make hundreds of thousands of returns every year like him.

If you treat me with a state official, I will repay it.

In He Changtian's heart, Zhao Jiangchuan had a kindness to him, and he swore that the risk control department in his hands would never let Zhao Jiangchuan down.

As the risk control department, it is to control and prevent the risks that the company will face.

Market risk, financial risk, and decision risk, etc.

These are all He Changtian's responsibilities.

In this regard, He Changtian's requirements are almost harsh, so harsh that Zhao Jiangchuan sometimes doesn't know whether to praise him or scold him for not being flexible.

In Jushi Capital, almost no one dared to refuse Zhao Jiangchuan's order.

But one person refused.

He Changtian, Director of Risk Control Department.

When Zhao Jiangchuan wanted to use all the company's funds to sell short positions, He Changtian did not hesitate to object on the spot.

And use its own authority to limit the position ratio of the trading department.

At that time, the profit of Jushi Capital was reduced by at least more than one hundred million US dollars.

This made Zhao Jiangchuan very helpless.

Who asked him to explain to He Changtian at the beginning that if the company's position did not double the profit, the capital would always be controlled within 60%.

Coincidentally, He Changtian is a dead eye again.

I've been holding on to this one.

Even if Zhao Jiangchuan at that time almost became angry and became angry, He Changtian was stunned and did not let go.

"Boss, at present, the company's capital has reached 50%, which has reached the third warning line. I think it is necessary to reduce the position ratio to prevent uncertain risks in the market."

This time, He Changtian's attitude is not very strong.

It's not that He Changtian's character has changed.

In the company's position, there is already a profit of 500 million yuan, which can already magnify the risk tolerance to the greatest extent.

But if the risk level reaches 70% of the capital drawdown, then He Changtian's character will definitely cut it first and then play it.

It may even force all positions of the company to be liquidated without Zhao Jiangchuan's consent.

This is He Changtian, which is different from Li Dabao's smoothness and Liu Qiang's ordinary.

The character is so clear that it is like a tendon, which is the best portrayal of He Changtian.

The content of this meeting is mainly for the meeting of the investment department.

After various senior officials in the department expressed their views.

Zhao Jiangchuan began to make regular comments.

"The price of copper has hit a two-year low, Liu Qiang, do you know what that means?

From a trading point of view, there are new highs above new highs, and similarly, there are new lows below new lows.

At present, the bulls in the market have suffered a big defeat, just like the winning army on the battlefield. Now is the best time to take advantage of the victory to pursue and expand the results. "

“Cannon’s analysis of the cost of the various mining groups is pretty good, and it’s basically close to the de facto cost line. But the cost never represents the true price.

You have to remember that value is given by capital, and cost is never the bottom line for containing something.

In financial markets, it is never impossible, only infinite possibilities.

In 1967, the international No. 11 sugar dropped to 2 cents.

Is it safe to buy at such a low price?

Because the international sugar market does not talk about production and planting costs, the cost of the burlap bags for sugar packaging alone plus the labor cost of sugar packaging exceeds 2 cents.

In the end, many people thought that buying sugar futures near 2 cents per pound was a rare opportunity in history.

Guess what the result is.

Sugar didn't climb up as many had imagined, falling like crazy after a few months until it hit 1.33 cents a pound.

Isn't it incredible?

What I want to tell you is that our purpose is to make money, the price is not directly related to whether we can make money, and the cost is not decisive to the price.

In the face of capital and the general trend, any reason is nonsense.

Now, the bulls in the market are panic-stricken birds of prey, unable to organize any effective counterattack at all.

In this case, it's a good time to rob. "

Zhao Jiangchuan paused and shouted.

"Liu Qiang."

Liu Qiang was startled and stood up like a soldier who was called by his name.

He knew that Zhao Jiangchuan was about to issue an order.

Liu Qiang shouted and answered.

"arrive."

"On the original position, continue to increase the size of the position, firepower is full, and I will drive the global copper market into hell."

The venue was silent.

At this time, Zhao Jiangchuan, no one dared to refute his order.

The domineering look in his eyes made everyone subconsciously choose to obey.

What is hell?

Probably no one knows, and no one knows whether there is hell.

But as far as the human world is concerned, corpses everywhere are hell.

Hell is when a large number of people starve to death due to lack of access to food.

The Republic of Zambia (therepublicofzambia) is a landlocked country in south-central Africa, most of which belong to the plateau area.

It is bordered by the Democratic Republic of Congo to the north, Tanzania to the northeast, Malawi to the east, Mozambique to the southeast, Zimbabwe, Botswana and Namibia to the south, and Angola to the west.

Zambia is named after the Zambezi River, which is also the source of the Congo River. Copper mines are rich, and it is also known as the country of copper mines.

Northern Zambia is located on the world's largest sedimentary copper deposit, the Zan-Gang copper ore belt. The copper reserves in this copper belt alone account for 25% of the world's total reserves.

It forms a "copper belt" 220 kilometers long and 65 kilometers wide in Zambia.

57% of the country's land area, or about 43.2 million hectares, is suitable for agricultural production, of which 39 million hectares are medium and high-yielding areas. The average annual rainfall in these areas is 800-1,000 mm.

Most of the areas are fertile, rich in water resources and sparsely populated, making them suitable for large-scale cultivation of various crops.

However, as of 1996, only about 2.02 million hectares of arable land had been developed, accounting for about 4% of the arable land area, and the land used for growing food crops was less than 1% of the arable land area.

In such a country, the food produced by itself is naturally insufficient to meet people's needs.

But for a country as rich in minerals as Zambia, the lack of food production is not a problem.

As long as there is enough wealth, enough food can be bought.

But suddenly, everything changed.

Zambians found that they did not know when they stood at the entrance of hell.

Maybe it won't be long before they reach the endless purgatory.

Six months ago, the international copper price suddenly plummeted to US$3,600.

In just half a year, it plummeted from $3,600 to $1,400.

This price is a nightmare for those who make a living from the copper industry.

Even 20 years ago, the price of copper was like this.

But now, after another 20 years, the price of copper has been beaten back to its original point, but people's lives can never go back to the past.

The Lumwana Copper Mine, North West Province, Zambia. With proven ore reserves of 102 million tonnes at a grade of 1.1%, it is said to be one of the largest untapped copper mines in the world.

Australia's equinox company plans to invest 100 million US dollars to mine the mine, which is expected to be put into production in 1998.

But all of a sudden, Equinox announced it was giving up on the mine.

Because under the current copper price in the international market, mining means throwing money, or throwing money into a pit that no one knows how deep.

Concora () Copper Mine.

The proven ore reserves are 250 million tons, with a grade of 3.8%. It was originally operated by Anglo American Group, but recently, Anglo American Group announced layoffs.

Large-scale layoffs have left a large number of Aboriginal employees unemployed.

Nchanga Copper Mine. Mainly sulfide ore and oxide ore, with proven reserves of 206 million tons, it is the largest open-pit copper mine in Zambia and the fourth largest in the world.

The mine is owned by Concora Mining Corporation.

But under the slump in international copper prices, Concora Mining also chose to lay off staff to reduce expenses.

If steel is the largest base metal, then copper is the king of non-ferrous metals.

Under the plummeting price of copper, other related non-ferrous metals plummeted one after another.

For a time, the operation of international large-scale mining companies began to experience a crisis.

In Zambia alone, there are as many as 18 mining companies that have announced temporary suspension of production. In addition, a large number of mining companies have chosen to lay off staff to reduce spending.

This result is a nightmare for the Zambian government and for the people of Zambia.

A large number of production cuts and shutdowns have resulted in large-scale unemployment.

When income is confiscated, many families are caught in the crisis of food shortage.

Black people are strange creatures.

This kind of creature does not have the Chinese people's awareness of being prepared for danger in times of peace~lightnovelpub.net~ In other words, there are not many people in the world who know how to save as well as the Chinese people.

In Zambia, these black miners or copper company employees.

It is often to be a monk for a day and hit the clock for a day.

After getting paid on the weekend, a large percentage of people choose not to go to work the next week.

Only when the money in their pockets runs out will they choose to continue working.

The sudden emergence of large-scale unemployment has caused the unemployed to panic all day long.

With no income, they fell into a crisis where eating was a problem.

After just one month of unemployment, many people choose robbery or theft to make a living because they have no money.

No one knows how long it will take Zambia to become a **** on earth.

(=)