Feng Yu rushed to his office and saw everyone was busy. When they saw Feng Yu, all of them stood up, waiting for his orders.
“We will not do anything today. Old He, I had told you to cancel all our future contracts once you notice any abnormalities. Have you done it?”
“Yes, but our profit is only 8%.” He Zhaoji reported. They had too many contracts. Although the transactions are all electronic, there were still some delays. If not, they would have gotten at least 20%.
“Ok. It’s not bad. Don’t feel bad about it.” Soros had acted too suddenly, and 8% profit is considered good results. Many people had suffered losses.
“Boss, are we only going to monitor the market today?” Someone asked.
“That’s right. All of you will monitor the market and analyze when did Soros cancel his contracts and buy-in Korean Won. Also, you all have to analyze the mistakes made by those Hong Kong tycoons, and discuss among yourselves.”
Soros switched position suddenly and start to push up Korean Won’s rate might also be a trap, and Feng Yu will not enter the market recklessly. He had not suffered any losses and had also reminded the Fu Family in advance.
Feng Yu and the Fu Family had hedged against their investments, and regardless of the rate rise or fall, their losses will not be high. Of course, their profits will not be high either. If not, Feng Yu’s profits will not be so low from the way the Korean Won rate fall yesterday.
But what they did are considered making real investments. Those that only bet on the rate rising or falling are speculators. They might get returns up to several times their capital, and might also lose everything in an instant!
The Hong Kong tycoons, who had shorted Korean Won, are speculators, and not only they had short Korean Won, they even used high leverages.
All of them had not expected the Korean Won rate to rise suddenly/
Because of the high leverage, they might be forced to cancel their contracts anytime. They must top up their accounts and lower the leverage.
What happened was totally different from what they imagined. Didn’t the rumors say that following Soros will surely make money? Aside from Hong Kong, didn’t Soros win whenever he attacks another country’s currency?
……
“Old Liu, how is your side doing? Can you lend me 10 million? I am having some cash flow issues. Ah?? Your money is also trapped in the market?”
“Old Zhao, my money is all trapped in the market. Can you lend me some? You only have 1 million left, and it’s HKD?! Nevermind.”
“Old Ma, what did you say? Do you want to borrow money from me? I am still calling people to borrow money. If I still can’t top up my account, all my future contracts will be forced to be canceled. You also had a short Korean Won?”
Hong Kong Tycoon, Niu Deming was pacing up and down in his office. He had invested 100 million USD and used 15 times leverage to short Korean Won. He was overjoyed when Korean Won rates fell at the start. If the Korean Won fell by 10%, and his 100 million USD will get a profit of 150 million USD!
Yesterday, the Korean Won dropped by 3%, and many people said Won will not last any longer and will plummet today. Niu Deming also thinks so, as he heard Soros had accumulated another significant fund to attack Won!
Taiwan is not a match for Soros, and how can South Korea be a match for him? South Korea’s foreign reserves are lesser than in Hong Kong.
Furthermore, with some many Hong Kong tycoons joining in the attacks on Korean Won, Won rate should crash.
But the Won suddenly increased today. Not only the Won had recovered from their fall yesterday, it even increases by 2%.
The Hong Kong tycoons had placed too much faith in Soros and increased their stakes, resulting in them having financial difficulties.
If one or two tycoons encountered financial issues, they could easily borrow money from their friends.
But when the majority of the tycoons are facing the same problems, who is going to help them?
At this time, all the tycoons thought of Fu Rongqi. When Fu Rongqi invited them to invest with him, all of them refused. They felt Fu Rongqi is too conservative, but now it is proven that being conservative will lower risks.
If the Tycoons can reverse time, they will surely choose to listen to Fu Rongqi’s advice, and they will not suffer this massive loss!
Niu Deming hesitated for a while before calling Fu Rongqi.
“Manager Niu, why are you calling me?” Fu Rongqi knew the Won had risen suddenly, and Niu Deming is asking people to borrow money.
When Niu Deming called, Fu Rongqi knew he must be calling to borrow money. But he still purposely asks why he is calling.
“Mr. Fu, I had encountered some problems and hoped to borrow money from you.” Niu Deming said.
When all the Hong Kong tycoons disagreed with Fu Rongqi’s investment strategies, Niu Deming was one of them.
“You want to borrow money? No problem. We are all friends, and I will surely help you when you have difficulties.” Fu Rongqi replied.
Niu Deming was overjoyed. He had not expected Fu Rongqi to agree so easily. If he knew it was so easy to get a loan from Fu Rongqi, he would have called earlier.
“Thank you, Mr. Fu. How much interest are you looking at, and when can you lend me the money?”
“How much money do you need?”
“Can I borrow 50 million USD?”
“Only 50 million USD? No problem. You can decide on how much interest you want to give me. I am curious, what are you going to do with this sum of money?”
What am I doing with this sum of money? Of course, I will be using it to top up my account and lower the leverage. What else can I do?
“What do you mean?” Niu Deming asked.
“Why don’t you hand your portfolio to me and let me manage for you? I don’t dare to claim I can help you make a lot of money, but at least I will not let you lose money.”
Niu Deming understood why Fu Rongqi agreed so readily. He wants to gain control over their funds.
But to be honest, this is a good solution, and Niu Deming does not need to borrow money. From what Fu Rongqi said, he will be bearing all the risk for him.
After this incident, Niu Deming realized the difference between Fu Rongqi and him when it comes to financial trading.
“Mr. Fu, did the others also handover their portfolios to let you manage?”
“What do you think?” Fu Rongqi did not answer Niu Deming’s question directly.
That’s right. Most of the tycoons had their money trapped in the market, and only Fu Rongqi still have sufficient funds. If Fu Rongqi is willing to help, he might even make the Korean Won rate fall. All of them will not have to top up their accounts and might still be able to make some profits if they are lucky.
“Mr. Fu, I will go over to your office later. I will let you handle my investment.”
When Niu Deming arrived at Fu Rongqi’s company, he saw many familiar faces. All of them are Hong Kong’s top tycoons, and from their expressions, they should be the same as Niu Deming. They had approached Fu Rongqi to borrow money but end up handling over their investment portfolios to him.
Everyone looked at each other and smiled awkwardly. If they had known this would happen, they would not choose to ignore Fu Rongqi’s advice in the first place.
