Chapter 903 – Sudden closure of Futures Contracts
In the office, many people were walking up and down. Some of them were talking loudly, exchanging information, and Feng Yu is seated in front of his PC, with a stack of documents in front of him.
Inside the noisy office, there is another man who is not moving about. It is Kirilenko. He is reading a magazine seriously. Yes. It’s Hong Kong’s most popular porn magazine, <Lung Hu Bao>. This copy is a special anniversary edition given to him by Fu Guangwei.
Suddenly, Feng Yu received an email. He opened it up and started reading it.
Oh, Thailand’s foreign banks also start to dump Thai Baht for USD. This will be a significant blow to the Thai Government.
At this time, Soros and his gang continued to dump Thai Baht in large amounts. By right, Feng Yu should be doing the same, and it will cause Baht’s value to depreciate further.
But Feng Yu is not doing anything. He acts as if he is not involved in this operation.
Now, only Soros and his men were selling Thai Baht, and luckily for them, some companies in Thailand panicked. The companies also followed the trend and started dumping their Thai Baht in exchange for USD. Thailand’s financial market is starting to crumble.
Share prices continued to fall, and Baht’s depreciation becomes faster. Although the value of Baht did not fall to the stage where is stop trading, it is still falling steadily.
“Boss, are we not going to continue selling Thai Baht?” He Zhaoji asked.
Feng Yu leaned back on his chair and shook his finger. “Get ready. When the exchange rate of Baht against USD reaches 27:1, we will cancel out a portion of our futures contracts.”
“If we close our futures contracts now, then we will not make many profits.”
“If the price of Baht increases, we might lose all of our money. How many losses have we incurred now? Over 200 million?”
Even if the short position futures contracts, Feng Yu and Kirilenko will still suffer massive losses. Their losses will increase if they continued to dump Thai Baht now.
If Feng Yu closed some of his futures contracts, he could build up a significant portfolio of Short position futures contracts when Thai Baht’s value recovers. He can even close out all of his futures contracts temporarily, but at this moment, he cannot make this decision.
“Alright, Boss. I understand.” He Zhaoji went out to inform the other brokers to monitor the exchange rates of Thai Baht. Once the rates reached 27:1, they will cancel out the contracts.
……
“Miller, how much has the Baht fallen?” Soros was holding a Cigar in his right hand and a cup of coffee in the other.
“It had reached 26.7:1.” Drucken Miller replied.
“What? It dropped by so little?” Soros frowned. Something is wrong. His Quantum Fund had dumped a large amount of Thai Baht, and Feng Yu had also borrowed a significant amount of Baht. If they dumped the Baht together, the rates should be more than 27:1 now.
Could it be that the rumors still have not reached those banks and companies in Thailand? They still have not gone into panic selling mode?
Soros also has people in Thailand’s banks. They are the ones who start to dump Thai Baht and buy-in USD. With the banks doing this, many people will believe Soros’s fake news.
Now, the supply of Thai Baht is increasing, and the demand for USD is getting larger. A large amount of Thai Baht is released into the market, and it is starting to depreciate.
But this is not enough. Soros had expected Thai Baht to depreciate to more than 35:1. He will continue to dump Thai Baht until he reaches this exchange rate.
But it’s a pity that Soros does not have sufficient funds in Thailand. He had used a large portion of his funds to build up massive portfolios of Forex contracts in the Philippines, Indonesia, Malaysia, Singapore.
Soros knows these countries’ economies are interlinked, and once Thailand’s financial system collapsed, there will be chaos. It will cause a chain reaction, and these countries’ financial markets will start to crumble!
At this time, Soros and his men are also building up their portfolios in Taiwan, Hong Kong, South Korea, and other countries in the region. They have a huge appetite, and since they had started to act, they must maximize their returns.
Did you say Soros had promised Feng Yu not to attack Hong Kong? He had only promised Feng Yu that Quantum Fund would not attack Hong Kong. Soros is still in control of other hedge funds.
“Boss, there is one more thing I need to report. That Feng Yu did not continue to dump Thai Baht. Instead, he closed off a portion of his short position futures contracts to stop losses.”
Soros was shocked. Why is he canceling the futures contracts at this time? Why is Feng Yu closing his contracts so early? If he stops at this time, he will not recoup his losses, and might even incur more losses. What is he thinking?
“Have you found out how much he had close?” Soros asked.
“Based on our estimation, he should have closed off more than half of his Short position futures contracts!”
More than half? Is Feng Yu going to withdraw? Impossible. He had spoken to Feng Yu before. Feng Yu is very confident they will win this battle. Withdrawing now might not recover the losses he incurred. Even if he manages to recover his losses, he will have wasted the past two months!
Soros immediately called Feng Yu. He needs to know what Feng Yu is thinking. If Feng Yu is going to withdraw, he should at least notify Soros first! What Feng Yu did is not right!
But Feng Yu had switched off his phone!
Soros called again. The phone is still off!
What is happening? Why is Feng Yu’s phone off? Didn’t they agree to keep their lines open? Soros called the office number given by Feng Yu and was told that Feng Yu is not around.
Soros thought for a while. He still remembers Kirilenko’s Hong Kong mobile phone number. After he found the number, he called. This time, the line got through.
……
“Feng, Soros is calling me.” Kirilenko looked at his phone on the table. He doesn’t know if he should answer it.
“Brother Ki, you are drunk now. Remember, no matter what he says, just agree.” Feng Yu said.
Ah? Do I have to agree to him? What if he questions me later?”
“Didn’t I say you are drunk? You will forget what he told you when you sober up.” Feng Yu replied.
Kirilenko: “……”
“Hello? Is this Mr. Kirilenko? I am Mr. Soros’s translator.”
“Ah? It’s me. What is it? He wants to have a drink with me?” Kirilenko pretends to be drunk and mumbled into the phone. The translator, on the other line, does not even know how to translate.
“Mr. Kirilenko, Mr. Soros, is asking if you can contact Mr. Feng? Can you get Mr. Feng to call Mr. Soros now?”
“Ok. I will call him now.”
Before the translator can continue, he realized the other party had hung up! The translator could only tell Soros that Kirilenko seems to be drunk.
Soros is furious. What’s going on? They must be doing this on purpose! These people cannot be trusted. We have agreed to work together, and you all withdraw so suddenly. What about us?!
Soros could only hope that this is an accident, and Feng Yu will call him immediately. But until the market closes, he still has not received Feng Yu’s call. He tried calling again, but Feng Yu’s phone is still off. Kirilenko’s phone is also switched off.
“Feng, are we going to fall out with Soros so early?” Kirilenko is slightly worried.
“It’s fine. I will just find an excuse, and everything will be fine.” Feng Yu casually replied. At this critical moment, as long as he doesn’t fall out with Soros, Soros will not dare to do anything to him!
