"Boss, why don't you think about it carefully? It's such a big deal~"

Lin Wenhui expressed his panic when he learned from the financial institution that Li Zehua had publicly entered the market on a large scale to go long on gold in the name of the group.

Before I took it seriously, my boss had already mentioned entering the gold futures market, and the investment team he was in charge of had already started building positions in Lijiaopo, Hong Kong, New York and other places.

But after actually seeing the contents of the intended contract, and then being asked by Li Zehua to stay and be responsible for the negotiations, I was completely dizzy, "It involves at least hundreds of tons of spot gold.

And more futures options gold trading, let me be solely responsible?"

"No confidence?"

Li Zehua encouraged him, "Don't be afraid, the three major funds and three major banks in Lijiapo will jointly guarantee us, and investors from all over the world will back us up.

Didn’t the contract stipulate that when the futures price is below $1150 per ounce, the contract will take effect immediately, and the gold price will not fall below $1080 within three months.

It provides five times leverage, which is one-fifth of the $50 difference, $10 per ounce, equivalent to a margin of $32.15 per ton.

The margin ratio will be increased or reduced based on price fluctuations. By this calculation, if the price fluctuations are not taken into account, one thousand tons of gold options can be held for US$3.215 million within three months.

In order to reduce risks and control reasonable positions, I specially withdrew US$10 billion from the cotton futures reserves, plus US$5 million provided by the three major funds in Lijiaopo and friendly merchants in Southeast Asia.

After returning to China, I will collect another 5 million US dollars from other channels for you, a total of 20 billion US dollars. You can allocate positions according to the specific rise and fall to ensure the safety of the principal. "

Off-market betting has always existed. For example, DBS Bank and UOB have long provided personalized customized contracts to different financial investors.

They can find all kinds of weird stuff. It's just an over-the-counter gold price-locking supply agreement. The amount is just a little bit large, which is not a problem for them.

As soon as the financial team proposed the over-the-counter gold options to Li Zehua, a gold producer immediately rushed over after hearing the news, and the contract was signed on the spot without any delay.

The contract with the gold mining company is also customized. The two parties agree to supply gold at a fixed floating price based on US$1200 per ounce over the next eighteen months.

The price is allowed to fluctuate within 10% up or down, with a maximum of US$1320 and a minimum of US$1080 per ounce.

The contract specifically stipulates that it will come into effect when the international gold price is lower than US$1150, and within 18 natural months from the effective date, both the buyer and the seller must exercise the option regardless of the final trend of the gold price.

The specific exercise date is determined by the buyer, who can redeem the entire agreement at one time or pick up the goods in multiple installments. The seller can ask the buyer to compensate for the additional losses caused by failure to pick up the goods.

This is the biggest difference from normal options trading. For example, when buying options for Chinese stocks last time, if the stock price falls, Li Zehua can give up exercising the option.

At worst, all the funds used to purchase options will be lost, and no additional losses will be caused. But this time it will not work. The position will be liquidated, resulting in unlimited joint and several liability.

For example, if a black swan event occurs and the price of gold plummets to $800 per ounce, then trading one ton of gold will result in a huge loss of tens of millions of dollars. The greater the return, the greater the risk.

Lin Wenhui didn't quite understand, "Mr. Li, there are many voices in the market that are bearish on gold. Hillary Clinton's debt crisis may not be able to support the continued rise in gold prices.

Once the world economy as a whole develops steadily and upward, the price of gold will fall back to the price before 09. Our minimum purchase price is US$1080 per ounce, and we will be forced to fulfill our contract at that time.

The loss per ton is several million dollars, so wouldn't a thousand-ton option result in a huge loss of several billion dollars? "

After saying all this in one breath, he asked curiously, "The price the bank gave us is $1150, while the manufacturer gave us $1200. Will the bank be so kind as to pay for the $50 difference itself?"

Li Zehua smiled and explained: "The first question, the minimum purchase price of $1080, is based on the serious errors in everyone's judgment of the current market, which has led to the emergence of an excellent historical market.

Since I dare to bet so big.

Of course, I have thought it through. Instead of believing the rumors in the market, you should trust my consistent investment vision. Have I ever lost money so far?"

Are you kidding? Knowing that the five PIIGS countries have huge problems, and this series of sovereign debts involves the security of the entire European financial system, Europe has to be saved even if it doesn't want to.

Once major problems arise in the world's major economies and the five European pig countries begin to collapse on a large scale, investors will have to find ways to increase the security of their funds, and gold will have to rise regardless of whether it wants to or not. This is the main reason.

“As for the second point, the banks certainly weren’t so kind, but they kept asking me to enter the market early, fearing that I would regret it later.

The benefits are attractive, but the customizable offline transaction fees are really unfair!

Instead of looking at the fee for each transaction, the transaction is calculated at 0.5% of the total amount, with double charges for buying and selling.

Assuming the purchase price is 1200 million per ton at $3860, 1.93% is about $.

Based on the selling price of 1900 million at US$6100 per ton, the total payment for each ton in and out is about US$3.05.

The actual delivery tax is tens of millions of dollars.

In addition, the group does not have sufficient funds to trade physical gold, so it can only entrust banks to purchase it on its behalf and lock it in advance in the form of options. The handling fees for this part are also extremely expensive.

Finally, the three banks in Lijiaopo were commissioned to purchase 120 tons of physical gold from the market, with an agreed final tiered handling fee of 8%.

约定低于1200美元时2%，在1200-1400阶段2-4%，1400-1700的阶段4-7%，1700美元以上时，最高全部按照8%进行收取。”

To put it bluntly, he has no money. Buying 300 tons of gold would cost more than billion US dollars according to the market price, and he cannot raise the funds even if he sells it.

But they have no choice but to buy, because it is impossible for gold producers to keep the gold they produce forever, unless their boss is like Li Zehua, who traveled back in time to know the results in advance.

Otherwise, the gold in stock would have to be liquidated before funds could be invested in mining. At the beginning of this stage, someone must come forward to advance the funds for the purchase.

Li Zehua believed that the price of gold would rise, so he had to bear the interest on the funds and assume the security responsibility.

The mortgage of Qingyun Group’s shares is one thing, but the bank also has to spend extra money to bring back the produced gold for storage and ensure its safety, all of which require expenses.

This money must be spent and it is worth it!
Because banks invest so much money, they also have to consider returns and fund security. Their affiliated financial institutions will enter the market to participate in real transactions and use hedging financial instruments to offset risks.

Once the upward trend of gold becomes a consensus, the banks participating in this contract transaction will rush into the market without hesitation and firmly go long for greater profits, becoming a powerful driving force for the rise.

Producers who receive money to step up gold mining will also use part of the funds to hedge risks in the futures market, such as when the gold price exceeds $1320.

The unfulfilled portion of this contract will be reflected as a net loss in the financial statements. For example, if the market price is 1900 and you sell at 1320, how do you explain to your shareholders the loss of $580 per ounce?
They had no choice but to sell, because the banking groups involved were too powerful, and the banks bore most of the risks due to the subsequent sale of CDS credit default swap bonds.

The cost of default is higher at this time, so this part of the risk must be hedged in the financial market. Once the price exceeds 1320, they will either take risks and short sell frantically in an effort to bring the price down.

Or you can go with the flow, join the bullish crowd, and pass the risk on to other financial investors.

One of the most important logics behind their participation in this bet is that there is a guaranteed purchase price of $1080. Who can understand the trend of gold prices in the next 18 months?

Even though there is the example of the five European pig countries, no one can be sure that the price of gold will rise. For example, from February to now, the price of gold has been trading sideways and it seems unable to rise.

Hillary Clinton knows her own problems, but she doesn't know that other countries are in worse situations than her. The whole world is watching Europe, and its member states are also trying their best to conceal the truth.

Goldman Sachs and other Squid Capital players who set up the scheme have somewhat understood the situation. The problem is that more people need to believe it. Even other departments within Goldman Sachs have come forward to short sell. What makes you say that the stock price will definitely rise?

How can other countries have the nerve to speak up if they don't wait for Europe to take concrete actions to rescue Hillary Clinton, and if they don't allow Germany and France to come up with trillion-dollar rescue plans, and if they increase investment bit by bit and increase sunk costs?
Throwing out all the problems at the beginning, do you think you are not dying fast enough?
Of course we have to wait until the funds arrive before reporting the true situation to the public bit by bit. Once a few rounds of rescue funds are in place, we will just throw up our hands and realize that this is really not going to work.

Anyway, one trillion has been given, and another trillion might help him get out of the pit. What can Ou Meng do now?
They can only grit their teeth and swallow it. Then, when the whole world sees these guys collectively giving up, they will instantly understand that it’s a shame. They will have to cut spending and reduce welfare in various ways, and the economic development expectations will be gone, so they have to run away.

As for who suffers the loss in the end?
In this round of gold market, of course, those who insist on shorting during the rising gold prices and those ordinary consumers who eventually take over the high-priced gold.

Ou Meng had only two choices: either die on the spot, or delay and wait for the economic situation to improve before asking the assisted countries for repayment.

No matter which one, as long as the thunder is loud enough, the price of gold will be like a wild horse that has broken free from its reins, and it will never look back.

Banks and gold groups, the two largest players in gold futures, had to personally go out and grab the goods because of their contracts (the market was also flooded with other bullish lock-in options).

This will further push up the price of gold futures, and it may even break through $2000 in this lifetime. The global annual output is more than 2000 tons. Although gold futures are benchmarked against the total gold inventory, half of the new production is eaten up by others, which has a great impact on the market.

After understanding this logic, Lin Wenhui stopped talking and just advised his boss not to be too crazy because the amount here was already scary.

If you go long in one direction, the final outcome will be either a villa by the sea or feeding fish on the seabed. In short, there are too many uncertainties.

If something goes wrong, the loss of several million dollars per ton is no joke. A thousand tons of futures plus the physical goods purchased will result in the loss of at least the entire Pinxixi local life service group.

"Don't worry, I will arrange for risk hedging elsewhere."

Li Zehua smiled and said, "Besides, given the nature of international investors, they will definitely take advantage of the violent turbulence in the past two months to reap profits. We have locked in the final price in advance.

On the contrary, it effectively avoids the risk of liquidation during continuous market washing.

That’s pretty much it. The $20 billion will be fully in place within 15 days, with the group contributing 50%, Southeast Asian capital contributing 25%, and domestic friendly companies contributing the remainder.

Only by attracting more people to join the market can we ensure that the group’s interests can be smoothly achieved.

You can greet the group executives in advance. This round of financial investment has great returns but also high risks. Whether or not everyone is willing to participate is entirely voluntary. "

Zhou Shouyuan and Yao Xiangjun, who did not speak throughout the whole process, looked at each other and saw completely different attitudes in each other's eyes.

Zhou Shouyuan is enthusiastic. It’s just a membership fee of more than 200 million US dollars, which is no big deal. The key is to be able to participate in such an exciting plan, so he must invest.

He even planned to discuss with his boss on the way to the airport and make additional investments.

In contrast to Yao Xiangjun, he has always been cautious and prudent, able to make various accounts satisfy all parties, and good at doing the most things with limited funds.

He was not interested in this kind of financial speculation, and he had no habit of going all in, but seeing that his boss was in high spirits, he did not refuse for the time being.

“Okay, according to the 10% quota of Qingyun Investment that you left before, a total of about 6000 million US dollars, we have currently received RMB equivalent to 17 million US dollars from 3550 executives.

I will collect the rest as soon as possible and clearly inform each of them of the investment risks.”

Lin Wenhui was heavy-hearted after he finished speaking. Although he would return to China after signing the 1,000-ton purchase contract, the banking group would help keep an eye on it later on, and since their interests were aligned, he didn't worry about any accidents.

However, huge profits of millions of dollars per ton are involved in the future. Once losses occur, it will greatly affect the normal operation of the group, as well as the group executives who suffer the losses.

For example, whether Mr. Yao, who is obviously hesitant, still has the heart to continue to manage the daily affairs of the group, only God knows...

Li Zehua's trip to Southeast Asia was fruitful. In addition to selling the group's overseas businesses at a good price, he also relied on the micropayment platform to win over a large group of staunch allies.

This will lay a solid foundation for the group's development at home and abroad in the next few years. When the micropayment platform matures and the financial sickle harvesting mode is started, these people will be able to provide strong support.

It is precisely because the interests are consistent with those of the three major funds and three major banks in Lijiaopo that it is possible for him to invest in gold futures. In the past, who would care about him?

Without the endorsement of Lijiaopo's financial institutions, it would be almost impossible to accomplish this through domestic banks.

Now, the position of director of Temasek Holdings alone can suddenly raise his status in the country to a higher level. Although the share swap has not been completed, it does not prevent him from enjoying the benefits in advance.

The specific contract has not been signed yet. Temasek will send a team to China to evaluate the details of all assets of Tsing Yun Holdings Group. The preliminary agreement is to exchange shares for shares, and the Tsing Yun Group can add some cash.

This will make up for the low overall market value caused by the group’s non-listing status. No one will suffer. Qingyun gets the present and Temasek gets the future.

How many mainland company shares does Temasek hold?

Public information shows that it holds 2-20% shares in a large number of companies including Bank of China, CCB, ICBC, Guangdong Development Bank, Standard Chartered, Ping An, Zhongxin, China Eastern Airlines, and China Southern Airlines.

There are also countless port terminals, highways, core properties, and shares of various high-tech enterprises such as Tengda.

The annual revenue of the Lijiaopo enterprises controlled by it accounts for about 10% of Lijiaopo's GDP, and some of them are high-quality assets that may not be available even if you have money.

The net investment value of its public share swap is over US$2000 billion, and a 2% stake is equivalent to about US$40 billion.

In another ten years, if we don’t consider selling out midway, the value of these company shares will more than double, not to mention that we also hold shares in so many Qingyun-related companies.

Although the valuations of the companies held by Qingyun Investment Holding Company may not be very high, the shareholding ratio is very high. The shares of Pinxixi held alone are as high as more than 50 billion US dollars.

There are also companies such as Pinxixi E-Commerce, Chimome Fengniao, Yunyunbang, BYD Group, Qingyun Electronic Technology Group, and Qingyun Agricultural Services Company.

As well as micropayments, conservatively estimated to be more than US$20 billion (referring to the payment insurance and overseas parts in the same period), plus the valuation of other companies held, and cash equivalents excluding total liabilities.

Recently, Li Zehua holds more than US$37 billion in cash through Qingyun Investment, with an approximate valuation of around US$200 billion.

The specific figures can only be drawn after Temasek sends people to its headquarters in Shanghai for a detailed investigation.

During the negotiations, Ho Ching of Temasek initially wanted to exchange 1% of Temasek shares for 10% of Tsing Yun Holdings shares, but was rejected outright by Li Zehua.

What a joke! Weifuyi is a company that is destined to grow, with a market value of over 10 billion US dollars when it goes public in the future. Now Temasek wants to take away %?

Even if there would be various financing dilutions in the middle, and the shares left in Qingyun Holdings, which is 100% controlled by Li Zehua, would not exceed 30%, he would not agree.

Add to that Tesla, a company with a market value of one trillion US dollars. Once they succeed, there will be WeChat Technology and TikTok Interactive Entertainment, which were also close to one trillion US dollars at their peak.

So many industry-leading companies with market capitalizations of around 1 billion yuan would be crazy to accept a 10: exchange.

It will be useless even if Temasek's net worth increases to US$500 billion or US$600 billion in the future, because the assets held by Tsing Cloud Holdings are destined to exceed US$1 trillion.

Using five or six billion in the future to exchange for one hundred billion in the future, he had never done such a loss-making deal in his previous life, although Temasek can use today's resources to help the Qingyun Group avoid detours.

But even if the mountain road is winding, it can be paved with hundreds of billions of dollars to make it a smooth road to the sky.

His requirement is a 1-for-1 exchange, and the exchange rate must not exceed 5%. He will pay for the remaining shortfall out of his own pocket.

No money?

You can wait until the end of the year to start exchanging shares!
After cotton futures are closed at the end of the year and gold and silver futures make some money, it should not be difficult to buy 5% of Temasek shares. If that doesn't work, he can still borrow some money from the banking group.

The key is that Temasek is not short of money. As long as it has scarce resources, any one of the companies under the Qingyun Group will make people drool with envy.

Anyway, we have been talking for five days and there has not been any good feedback so far. Temasek has agreed to a 1:8 ratio, 4% for 20%, and the remaining 12% shortfall is allowed to be made up by Tsing Yun Group with the same amount of cash.

It is equivalent to 1 for 5, which is quite respectful. After all, when it comes to money, Temasek can easily shell out hundreds of billions of dollars.

Li Zehua still said the same thing, 5 for 5, if it's not enough, use money to make up for it. His bottom line is 5 for 8 and then add money. If the negotiation fails, we can talk about it slowly. Anyway, there is plenty of time...

However, his time in Lijiaopo was over. After finishing all matters of the branch and signing the final contract, he drove away from the branch headquarters and started his journey home.

This day is April 1st, April Fools' Day in the West.

When he came, he took a commercial airliner, and only a few chairmen and ministers greeted him at the airport.

But when it’s time to leave, there’s a private jet specially provided for VIPs.

Li Yilong, as the chairman of Lijiaopo government investment company, personally went to the airport to see him off.

There were also more than 40 well-known business leaders and bigwigs from Southeast Asia accompanying him.

When the long motorcade drove into the inner passage of the airport, almost everyone looked at this scene in shock, and speculated which country's dignitaries were visiting or leaving Lijiapo... (End of this chapter)