Delimu stated directly, "I once probed Soros, and he said that he now needs to focus on the Hong Kong stock market and does not have enough cash flow to support our Asian travel company."
"I heard from Xiang Feng that you intend to buy our futures stocks?"
Chen Dong cautioned, "This applies only to short selling orders in Hong Kong dollars."
"As long as your company is willing to transfer the shares, I will not only buy the futures and stocks you hold at the market price, but I will also lend you short-term working capital in the name of Longteng Company."
Delimu remained silent for two minutes before saying, "One of our senior partners in the Asia tour does not agree with this deal."
"Is it Cyber?" Chen Dong asked.
"But... this is a personnel issue for your company. I can only promise you that if your company needs help, I will definitely lend a hand."
"As for your company's partnership system, whether it's based on majority rule or veto power, that's not something I need to worry about."
"Now that I've said all that, if you've thought it through, then we can talk again."
Cyber was determined to follow the Soros Group. Even though the company was facing difficulties, Cyber, as a partner, tried to persuade Derim to make sacrifices for the Soros Group.
Given Asia Travel Capital's consistently conservative investment style, this is clearly inconsistent with their usual approach.
However, they currently have 9,000 short positions. If the Hong Kong dollar continues to depreciate as they expect, they can sell these short positions and make a fortune.
However, they are currently in an awkward situation. The Hong Kong dollar market is supported by the Hong Kong Monetary Authority and the four major families. No matter how Soros guides international speculative capital to attack the Hong Kong market, the value of the Hong Kong dollar has not fallen sharply.
If they were to place those 9,000 short orders now, their previous investments, plus margin, transaction fees, and some interbank lending rates, would not only result in a loss, but would also signify the failure of their transformation.
Large companies tend to think long-term. What Delimu is interested in is not the value of the 9,000 short-selling orders in front of him, but whether their Asian capital can successfully transform itself through this operation.
Clearly, they failed.
Even if he failed, Delimu wanted to salvage his dignity and prevent Asia Travel Company from being ridiculed in the Southeast Asian market.
“If I transfer my 9,000 short positions to your company,” Derim said hesitantly, “wouldn’t that mean we’re betraying Soros?”
Chen Dong was somewhat surprised that Asia Travel Capital, as the largest investment company in Southeast Asia, actually talked about morality and human relationships with its business partners.
"If you can transfer 9,000 short positions to Longteng, I don't know if this counts as a betrayal by Soros, but for Longteng, it is indeed a breach of Soros's trust."
Chen Dong said with a smile, "And I really enjoyed prying this corner of the wall."
Chen Dong made no attempt to hide his disgust for Soros from Delimu.
This attitude surprised Delimu.
"If we transfer 9,000 futures shares at market price, how much cash flow can your company provide us?" Delimu asked.
Chen Dong became serious. "9,000 futures contracts, worth about US$900 million, or about HK$7 billion based on the current market price of HK$7.8."
“If your company agrees to the transaction, I will buy these 9,000 contracts at the market price of HK$7 billion, and at the same time lend your company an additional US$1 billion in working capital.”
These were the terms of the deal that Chen Dong had negotiated with Xiang Dong. Asia Capital urgently needed working capital to support the company's normal operations and to raise funds from all shareholders for a rights issue.
"I... need to discuss this further with my partners in the company."
This statement actually indicates that Delimu's attitude has softened.
Such conditions are incredibly tempting for Asian travel capital, which is in dire straits.
Although Cyber is a new partner in the company, as a partner, he has veto power over the company's business strategy.
Even though they all knew Cyber's stance, they still had to win over this partner first before they could complete the normal transaction.
After the negotiations concluded, Chen Dong specifically asked Annie to escort Delimu back to the International Hotel to rest.
Seeing that the people from Asia Travel Capital had left, Lin Zhiyuan curiously stepped forward and asked, "Aren't we supposed to be going long? Why are we buying Asia Travel Capital's short positions?"
Chen Dong smiled and said, "We're going long because Soros is shorting."
"We are defending against Soros because behind him are not only international hedge funds, but also financial giants and international investment banks, and these forces are not within our control."
Lin Zhiyuan didn't understand and just shook his head blankly.
Chen Dong sighed and explained helplessly, "Once Soros joins forces with them to attack Hong Kong, we will not only be unable to protect the Hong Kong stock market, but we will also be drawn into this currency war."
At this point, Lin Zhiyuan understood a bit more. "You wouldn't... be trying to have your cake and eat it too, would you?"
Going long means supporting the Hong Kong stock market, while going short, in order to make a profit, inevitably requires manipulating the Hong Kong market.
These two things are inherently from opposing perspectives.
"If you're shorting and going long at the same time, doesn't that mean you're pulling yourself together and wasting your time?" Lin Zhiyuan asked.
Chen Dong countered Lin Zhiyuan, saying, "An excellent investor would never put only short or long positions in his portfolio."
"This is similar to Robertson of Tiger Fund. Although he is now following Soros in shorting the Hong Kong dollar, he has also included short selling in his portfolio to go long."
"This means that Tiger Fund's positions are both incurring losses and generating profits."
After Chen Dong finished speaking, he said meaningfully, "Brother-in-law, when we protect the Hong Kong stock market, we can't just focus on raising the Hang Seng Index. We also need to keep in step with our competitors so that we can strike when they are not prepared and give them a heavy blow."
Lin Zhiyuan looked at Chen Dong with a somewhat confused expression, "He tried to make a fool of himself but ended up getting himself into trouble instead of getting himself into a trap."
"Don't worry, I've been navigating the financial markets for so many years, how could I possibly get my eyes pecked out by an eagle?" Chen Dong said with a smile.
On October 25, the last trading day of the week, Soros still made no move.
Zhou Huimin reported to Chen Dong for two consecutive days on all of Soros's international hedge fund's actions during this period.
“They simply sold a few short contracts from the account and then quickly disappeared,” Zhou Huimin said.
Chen Dong said worriedly, "Soros's silence is too unusual; they must be planning something new."
......
Continue read on readnovelmtl.com
