Rebirth 76: Industrial Internet Empire

The news that the Bank of Japan has cut interest rates for the fifth time in 14 months is like the straw that breaks the camel's back!

After Hongshan Capital and JPMorgan Investment Bank resisted for a while, they decided to give up the resistance. The liquidation of the SGX Nikkei 225 Index futures contract was a foregone conclusion, and there was no point in struggling in the Tokyo stock market.

Stimulated by major good news, the Japanese stock market was like a wild horse running wild. All investors fell into a state of madness. A large amount of money separated from the real economy and poured into the stock market and real estate market.

The unilateral rise in the stock market meant that Lin Xi could hardly find any counterparty in the SGX Nikkei 225 Index futures trading, so Zhiyuan Group had no choice but to invest all its funds in the Japanese stock market and real estate market.

"Yang Mo, this rise is too scary! Should we reduce some positions?" Guo Kexin asked worriedly.

Yang Mo waved his hand and said, "No rush, it's still early!"

"Don't you often tell us that we won't earn the last copper?" Guo Kexin said.

Yang Mo chuckled and said: "This capital feast has just begun! We've just eaten one appetizer and are you leaving?"

"Just started? When we entered the Japanese stock market, the Nikkei 225 index was only 6000 points. Now it has exceeded 20000 points, more than three times higher!" Guo Kexin argued.

"We have eaten and drank enough, but for Japan's major financial groups and international hot money, it has just begun. This carnival of capital has just begun. I don't know who will foot the bill in the end!" Yang Mo said with a smile.

What Yang Mo actually wants to do most in his heart is to do his best to prop up this asset bubble, and then burst it with his own hands, leaving a piece of chicken feathers in this sinful land...

Saitama Bank Tokyo Branch.

As soon as Naoto Fujita walked into the lobby, Miyamoto Kusai came to greet him personally after being notified.

In just a few years, Miyamoto Hisai was promoted to CEO because of his achievements in opening up territory in the real estate market.

Yuanda Real Estate, where Naoto Fujita works, is undoubtedly one of Saitama Bank's most important customers. It was the signing of a strategic cooperation agreement with Yuanda Real Estate that year that made Saitama Bank the biggest winner in the housing mortgage market.

"Fujita-kun, if you need anything, just call us and Saitama Bank will send someone to come to your door. I'd like to ask you to make a trip in person..." Miyamoto Kusai said with a smile on his face.

Naoto Fujita chuckled and said: "Miyamoto-kun, congratulations on becoming the CEO of Saitama Tokyo Branch. I have to ask Miyamoto-kun to take care of you in the future!"

After walking into the VIP room, after another round of pleasantries, Naoto Fujita said straight to the point: "Miyamoto-kun, Broad Real Estate has acquired several pieces of land in the past few months, plus several plots under development, stalls If the shop is too big, the capital chain will be a little tight..."

Miyamoto Kusai quickly expressed his position: "Fujita-kun, Yuanda Real Estate has a good reputation, not to mention its repayment ability. It has always been one of our Saitama Bank's high-quality customers. Whether it is a pledge loan or the issuance of trust funds, Saitama Bank is very Willing to serve you..."

"Hey! Miyamoto-kun, please tell me that the financing of Yuanda Real Estate will be entirely handed over to Saitama Bank!" Naoto Fujita said with a smile.

Japan's entire capital market is in a state of madness. Real estate companies with good reputations like Yuanda Real Estate can go to banks to pledge loans with land certificates. Even when large trust bonds are issued, there is no need to review the asset-liability ratio. Financial Statements……

More than a dozen real estate companies controlled by Zhiyuan all used almost the same method to obtain large amounts of funds from Saitama Bank, Fuji Furong Bank, and Daiichi Kanye Bank!

After withdrawing the funds, more than half was invested in the stock market, and the remainder was used for housing development.

Such stories continue to be repeated in large and medium-sized cities such as Tokyo, Osaka, Nagoya, Yokohama, Hokkaido, Sendai, etc...

Zhiyuan-related real estate companies each use financial leverage to the maximum extent permitted by Japanese law.

Guo Kexin, Li He and other core executives all felt that Yang Mo was just trying to make quick money in the stock market...

Only Yang Mo himself knew that he was just out of curiosity: What would happen if a dozen real estate companies with high leverage and high debt ratios like Hengda suddenly appeared in Japan where the asset bubble burst?

I wonder if ordinary Japanese people who paid but couldn't get a house will cause trouble?A lifetime of savings has been wiped out overnight. Can I still go to work with peace of mind and continue to be a house slave to pay off my debt?I don’t know if the housing mortgage loans that have lost their ability to repay will affect Japan’s major commercial banks?

Thinking of these scenes, Yang Mo smiled unkindly...

……………………………………………………………

In late August, the Arc de Triomphe Hotel in Chicago.

Yang Mo met up with Qian Ning and Christian who arrived earlier.

"How's it going? Are you all ready?" Yang Mo asked.

"Not yet. The U.S. Securities and Exchange Commission's review of account-related transactions is very strict, and the penalties are also very severe. Zhiyuan International's related-party transaction accounts in the London currency market cannot be used. Currently, only three accounts are registered..." Christian said.

"Three accounts are not enough. The target is too big and it is easy to become the prey of others! In this way, I will ask Lin Xi and Li Heping to send people to open a trading account. Are there any other special regulations?" Yang Mo said after pondering for a moment.

"Both the New York Stock Exchange and the Chicago Mercantile Exchange have begun to use electronic trading systems, and the Chicago Stock Exchange has set strict trading limits on stock index futures trading!" Christian said.

"Transaction limit? There are so many rules and regulations, and you are still playing tricks!" Yang Mo asked in surprise.

"CME Dow Jones Index futures are divided into medium and small-sized contracts, and the total position is strictly limited: in all contract months, the comprehensive net long position or net short position cannot exceed 5 lots of medium-sized Dow futures contracts." Christie Ann said.

"How to calculate the profit and loss of a medium-sized contract?" Yang Mo continued to ask.

"One lot of a medium-sized contract = 20 contracts, a profit and loss of 20 US dollars per point, and a leverage ratio of 200 times. One lot of a small-sized contract = 10 contracts, and a profit and loss of 10 US dollars. Today, the listing price of Dow Jones Index futures on the Chicago Stock Exchange is 2600, and the corresponding minimum margin is 260 for the medium-sized contract. U.S. dollars, $130 for small contracts..." Christian introduced patiently.

Yang Mo pondered for a moment and smiled: "It is indeed a paradise for capital. With 200 times leverage, the position will be liquidated after a slight fluctuation. In the end, all the money will fall into the pockets of those financial oligarchs with brokerage seats!"

Christian explained: "Compared with the crazy gameplay of SGX Nikkei futures, the risk of CME Dow Jones stock index futures is still smaller!"

After all, Christian studied and worked in the United States, and he agrees with the various rules here. This may be the arrogance that is ingrained in the blood of Westerners...