The most direct impact will be on industrial and financial companies, which are expected to lay off a large number of employees in the future, creating a climate of fear and uncertainty.
As Xing Baohua watched the news, Huang Xingyao stood in front of him with some documents in his hand and said, "The information from Japan has been sent over, and the impact is minimal. Here are some more documents."
Xing Baohua took it and looked at it.
The Nikkei index rose instead of falling, isn't that strange?
Xing Baohua shorted a portion of the Nikkei index, and it's estimated that he's been liquidated by now.
It's normal to make and lose money. Losing a few hundred million in the Nikkei index is something you can afford to lose.
However, he invested most of his funds in shorting the real estate market.
Even if the housing market rises, as long as he doesn't sell the property, the money is still in his hands. The key is still the transaction contract.
I was just trying to mess with the rabbit and the Japanese, but they were slow to react. What went wrong?
Then I looked at a few more analysis reports. One of them had a quote from Uncle Suo published on the 14th, which was five days ago: "Predicting that the Japanese stock market is about to collapse."
As expected of a financial tycoon! No one else can predict this. It's accurate, yet it also seems inaccurate.
It wasn't Japan that collapsed, but its own country. How come Japan wasn't affected and even saw a 9%+ increase?
Xing Baohua was also shorting the market. He didn't notice this speech at the time. If he had, he could only admire it. Since they were looking in the same direction, he wouldn't have gone against the grain.
Continuing down the line, the company's analysts reported that Japan was receiving substantial loans of R yuan from domestic and international investors who were investing in higher-yielding international markets.
If a large number of such transactions are liquidated in a short period of time, it will cause turmoil in the financial market.
The report also included warnings from many economic experts about the potential dangers of rampant R-dollar arbitrage trading.
Globally, R-dollar arbitrage trading has proliferated, with its current scale estimated at hundreds of billions to trillions of US dollars.
Seeing this, Xing Baohua seemed to be deep in thought.
He turned and went to the analyst's office; there were some technical terms he needed to understand.
Not only do we need to understand it, but we also need to use their analytical skills to understand R's unusual behavior this time.
The money from a margin call should at least make a sound, right?
What suddenly occurred to Xing Baohua as the analyst reviewed the data?
Since Mr. Solomon is also shorting, how much will he lose?
If you have an idea, verify it immediately by calling Morgan.
If banks keep other clients' information confidential, that's for ordinary people. Strategic clients like Xing Baohua are different.
We've reached a point where we can share data or messages.
Morgan asked Xing Baohua to wait a moment, as they needed some time.
The analysts had some clues and pointed out to Xing Baohua that the Japanese stock market was temporarily slow due to the support of a large amount of external funds.
As soon as someone withdraws funds, signs of a collapse will appear.
The collapse was no worse than that of HK and the Great Eagle Empire.
At this point, it was too late to say anything. Xing Baohua had already suffered a margin call, and there was no money left for a second ambush.
The only thing that no one expected was that speculative investors would treat Japan like an ATM.
Borrowing money to cash out.
Isn't this the same trick Xing Baohua used to play the real estate game? In fact, he also used loans to cash out in Far East.
He used land as collateral for a loan to transfer the funds out.
A large amount of foreign capital was used to speculate on the Japanese real estate market, and Xing Baohua, who was the most active and used the largest amount of capital, was just one of them.
Good heavens, I never expected that I would be the one to step on the landmine I planted more than a year in advance.
How many buildings would we have to sell to make up for this loss?!
Once you understand the factors involved, then wait for Morgan to send some news to your uncle.
Morgan called back near the end of the workday.
Mr. So has about one billion US dollars in foreign exchange indices in Japan, which are mostly sell orders and no one has bought them yet.
By the way, I'd like to tell Xing Baohua some other news: it's not just Uncle Suo who's closing out his positions; hundreds of other institutions are also doing so.
It would have been better if she hadn't said anything, because once she did, Xing Baohua's heart ached!
He's out of money. If he had money, he wouldn't mind getting his revenge.
The most heartbreaking thing is watching money slip through your fingers without being able to hold onto it.
"How much more money can Morgan lend me?!" Xing Baohua asked.
"Xing, you need to invest rationally. We at Morgan Stanley also have top-notch analysts. They are not optimistic about the possibility of a collapse in Japan this time, and their focus is on the housing market. Xing, your large short positions are about to profit. Patience is the real test of one's character."
What Morgan said is absolutely true. With the Nikkei index so volatile, even Sotheby's (the founder of Nikkei) had to sell, and they still couldn't find buyers. Is it a good time for you to go in?
We don't know how much Mr. Suo lost yet, but it was definitely a huge loss.
So now, Xing Baohua can only wait for the R-share market to collapse, triggering a chain reaction that leads to a collapse in the real estate market before he can profit. This process will take three to five months.
Well, there are gains and losses; I'm not a god.
The profits from South Korea are indeed less, and Xing Baohua doesn't want to lose such an important partner as the Third Prince.
After making over 200 million US dollars, they withdrew and invested all the funds in Hong Kong.
Huahong Bank has nearly five billion US dollars in funds on its main counter.
Total assets are over 40 billion H coins.
They found a TV station and newspapers that announced that Huahong Bank was acting on behalf of Huahong Group to rescue the market.
They also told customers that as long as there was collateral, they could borrow money anytime, interest-free.
Two listed companies under Huahong Group bucked the trend during the market crash.
Retail investors who originally held shares in both companies were crying and shouting that they couldn't sell them and had lost a fortune.
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