Investor That Can See The Future

Chapter 496

A public opinion battle was held over the JN battery.

Experts attacked various problems of JN Battery. ‘Safety has not been proven’, ‘It is impossible to mass-produce in a short time’, ‘Already enough OTK batteries’, ‘The price is too expensive’, etc.

OTK Company countered this by conducting safety tests as soon as the battery pack is made, and Seoseong SB countered that it was in the process of making a production line necessary for mass production.

Of course, the most controversial issue was the supply and demand of geratinium, the main raw material. The lunar resource mining was clearly a groundbreaking method, and it was actually being pursued. But few thought that this could be possible right now.

NGOs also protested. They were concerned that this might lead to reckless space development projects. In front of the OTK Company and Space Z headquarters, groups such as the ‘University Association’, ‘World Space Protection Organization’, and ‘Space Love Society’ held fierce protests.

“Stop mining the moon resources!”

“It’s not enough to destroy the Earth, are you going to destroy the moon too?”

“The moon is no one’s territory, it is a common resource for mankind!”

“Give a healthy moon to your descendants!”

“After the earthquake, immediately stop trying to mine geratinium!”

* * *

As SpaceZ prepares to send a spacecraft to the moon, the situation in China has become increasingly serious.

As Henry said, Albert Management and a few hedge funds moved first. It was now an open secret that they were forming a force.

They short sold Chinese stocks all at once. Of course, the proceeds from the stock sale are in RMB. They sold the RMB back to the market and bought dollars.

If you do this over and over again, the stock price goes down and the dollar goes up.

In other words, it took a short position in the entire country of China. Hedge funds openly announced their positions and gathered power, and global speculative capital followed suit.

The media was also involved in this.

Hedge funds inflicted huge advertising costs on media companies, and mainstream media around the world all spread the news of China’s stock price decline and corporate bankruptcy, fueling a sense of crisis.

What can I do to prevent this?

The most effective means is to raise interest rates. Raising interest rates could increase the interest burden on speculators and at the same time increase demand for the yuan, stabilizing the exchange rate.

However, at this time, this means was not available. If interest rates were raised in the current situation, companies and banks that could not pay their debts would go bankrupt one after another.

The next best thing is to move against the hedge fund’s position. They buy stocks to boost stock prices, release foreign exchange reserves, sell dollars, and buy yuan.

This causes the stock price to rise and the dollar to fall.

In fact, China has had two cases of defeating speculative forces in a similar way. In 1998, Hong Kong defended the value of the Hong Kong dollar with its foreign exchange reserves and at the same time changed the rules for short selling in the stock market to defeat the speculators. It raised the yuan and induced a sharp rise in the yuan to feed the speculative forces.

Although some countries are wary of excessive government intervention in the market, China has grown into a state-led, planned economy from the beginning.

Again, intervention by the financial authorities in the market was a natural step.

In order to achieve the current Chinese government’s goal, the value of the yuan must be maintained stably. As the exchange rate rises setbacks on the internationalization of the yuan and the Belt and Road Initiative, Lan Shuqing, the head of China’s financial authorities, said that the Chinese Bank Supervisory Commission President Lan Shuqing is speculative. All-out war against the forces was declared.

‘China will fight to the end. Short selling betting on the RMB will inevitably lead to big losses!’

However, as bad news continues to erupt at home and abroad, it was difficult to guarantee victory.

To win this war, you need more money than your opponent. Currently, China’s foreign exchange reserves are estimated at $2.6 trillion. It’s still the world’s largest, but has lost a whopping $500 billion in just a few months.

You might think that this is not enough to defend against a speculative attack, but the actual amount of money available is less than 500 billion dollars.

Foreign exchange reserves are the basis for maintaining the value of the yuan. Ironically, in order to prevent the yuan from depreciating, the more the foreign exchange reserves are exhausted, the more the yuan depreciates.

If foreign capital in China sells assets to avoid further losses and launches Exodus, foreign exchange reserves will soon bottom out.

Taek-gyu heard my story and nodded his head.

“So we have to go.”

Apart from the corporate value, there is not much cash that OTK Company can mobilize. Fortunately, there are ways to save money.

Taek-gyu asked.

“But what if China or Russia doesn’t keep their promises after all?”

When things change, your thoughts change.

As both are dictators, if the situation changes, they will prioritize their political position over the promises made to me.

“I do not care.”

If China had kept its promise to guarantee Hong Kong’s autonomy, the current protests in Hong Kong would not happen. If Russia had followed the Budapest Agreement, there would have been no conflict in Ukraine.

If you lose anyway, you lose everything.

But if you win… … .

“At that time, China or Russia will see us.”

* * *

I gathered all the employees of the company in one place. Hyunjoo’s older sister and Ellie also attended.

At this point, I made an important announcement.

“We’re going to issue $800 billion in corporate bonds.”

Team leader Jeong Ki-hong asked cautiously.

“Uh, um, 800 billion won?”

Since the amount is so large, it looks like I may have heard it wrong. After all, 800 billion won is a huge amount.

“no. dollars. 800 billion dollars.”

The expression of hopelessness soon changed to a look of astonishment. The other employees are equally astonished. Moreover, it is unprecedented to issue such corporate bonds at once.

“Hey, can anyone buy it?”

There is currently no money in the market due to the credit crunch. Several companies in need of funds have issued corporate bonds, but even AA-rated corporate bonds are often in short supply.

Even if OTK Company is the world’s largest company and the bond market is larger than the stock market, it is not easy to sell all these bonds.

“So, we need to issue it on a good condition that investors will be interested in.”

Team leader Seo Sang-won pointed out the problem.

“It is not easy to issue corporate bonds of that size in a short period of time.”

The issuance and sale of corporate bonds must be approved by the financial authorities in accordance with established requirements.

OTK Company is worth more than $1 trillion, no matter how small. However, the company’s value is high, but its equity capital and return are low. Moreover, the company value is also unlisted, so it has never been accurately evaluated.

Actually, the biggest problem is something else.

The Rothschilds are in control of the financial system. If you’re trying to sell in the US mainland or in Europe, they’ll do everything you can to get in the way.

we don’t have time

“Actually, it should be called a bond, not a corporate bond. I plan to issue my stake as collateral.”

“Yes?”

It is a stock-backed bond in which the creditor takes a stake in lieu of money if the payment is not made by the maturity date.

One of the staff raised their hand.

“What is the purpose of issuance of bonds?”

I answered right away.

“We will fight the speculative forces who are short selling.”

The staff were surprised again. I’ve told the team leaders once before, but this is the first time I’m telling everyone.

Senior Sangyeop was making an expression as if his soul had gone out.

“Ah, I thought this crazy thing was over after Brexit and Big One.”

In both cases, they fought for the fate of the company and won. How about this time?

Team leader Seo Sang-won said with a cautious expression.

“It is too early to fight the speculative forces. It’s not too late to go down a little more and then respond.”

Hyunjoo noona shook her head as if in pain.

“Right now, other companies are anxious to get out, so you want to jump in?”

Industrial capital, which has factories in China and runs business, has no choice but to sell assets, but financial capital hastily. Buildings in first-tier cities, which were difficult to buy with money until a few months ago, poured for sale at lower prices, but no one was willing to buy them, and the prices fell further.

I remember the prisoner’s dilemma.

If everyone tries to escape from the ship swaying due to the storm, the balance is compromised and the risk of sinking increases. However, if the sinking is certain, it is beneficial to move ahead of others, even if it accelerates the sinking.

It is in the common interest of those on board not to sink. Someone has to stand in the middle to keep the ship from sinking.

I am the largest shareholder and CEO.

Therefore, I do not need to seek the consent of others for my decision. But if you can’t convince even your employees, how can you convince others?

I looked around the staff and said.

“OTK Company has done many things in the meantime. However, if the global economy collapses due to the current crisis, all of the EVs, TWRs, VRMMORPGs, Saemangeum, and JN batteries that we have been promoting will be in vain. This work is for us, not for China or the world. If successful, we will go down in history as averting the financial crisis.”

Even after my words were finished, the meeting room was quiet. Everyone can’t help but think about the possibility of failure.

Tec-gyu tilted his head and spoke to me in a low voice.

“It’s strange. In this case, we have to stand up one by one with our fists clenched and shout out words like ‘Good!’, Let’s try it!’, ‘We can do it!’, ‘Only trust and follow the CEO!’”

“… … .”(Read more @ wuxiax.com)

Because reality is not animation.

“Do you have any questions?”

A woman with light-colored blonde hair raised her hand to my question.

“This seems like too much of a plan.”

Her father is Vice Chairman Shin Byung-doo of RCK Bros. You probably know better than anyone how serious the current crisis is and how difficult it is to prevent it.

Yuri said in a trembling voice.

“It would be nice if it went well, but if it fails, the company will be taken over.”

If the money cannot be repaid, the stake passes over, and if the stake goes over, the company passes. No investment company invests in this reckless way. Even more so if you think the odds are slim.

I looked at the glass and smiled at her.

“No worries.”

“Elder… … .”

Ellie smiled at me.

“After all, it’s nice to be with Jinhoo because I’m not bored.”

Yuri, who was about to say something at those words, bit her mouth.

I said looking at Hyunjoo’s older sister.

“I will ask Golden Gate to issue and sell bonds.”

The older sister nodded her head as if she couldn’t help it.

“If it’s a stake in OTK Company, there will be many people who will covet it. But are you really okay?”

“of course.”

I then told Taek-gyu.

“You too, as a vice president, say something.”

“I?”

Taek-gyu, who had been thinking for a moment with his arms folded, opened his mouth as soon as he remembered what he had to say.

“Even if the company goes bankrupt because of Jinhoo Kang, we will provide you with a generous amount of severance pay, so don’t worry too much everyone.”

“… … .”