They are all reborn, and the grandson is still a spare tire

Chapter 654 His heart can be killed

Chapter 654 His heart can be killed

After adjusting his mood a little, Mr. Rong gave his response.

"Xiao Yao, how serious is the situation? Please introduce me. You are recognized as a top expert in financial investment. I trust your judgment."

"As for investigating those who advocate signing these Australian dollar derivatives contracts, I will make a decision based on the risk."

Yao Yuan looked at Mr. Rong and nodded lightly.

"Okay, Mr. Rong, let me analyze the risks and traps in these Australian dollar derivatives contracts for you."

"Obviously, the reason why you signed these Australian dollar derivatives contracts is to lock in the cost of the Australian dollar, reduce transaction risks, and preserve value."

"But according to the development trend of the international financial market, these Australian dollar derivatives contracts not only cannot play a role in preserving value, but will bring disaster to CITIC Taifu."

Hearing what he said was so serious, the expressions of Mr. Rong and several senior executives of CITIC Taifu changed.

The next moment, Mr. Rong said in a deep voice:

"Xiao Yao, you are indeed the god of investment. With so little effort, you have already seen through our purpose of signing these Australian dollar derivatives contracts."

"Yes, our purpose was indeed to lock in the cost of the Australian dollar and preserve its value, but we didn't expect that it backfired."

"Where are the huge risks in these Australian dollar derivatives contracts? Please analyze it, I would like to know more about it."

"Okay, Mr. Rong"

Yao Yuan nodded in response.

Then open an Australian dollar derivatives contract and start analysis based on this contract.

"In this derivatives contract, it is written in black and white that when the exchange rate of the Australian dollar against the US dollar is above 0.87, CITIC Pacific can make a little money."

"But there is an upper limit. I did some calculations and found that CITIC Pacific's maximum total profit is about US$5000 million. This profit is insignificant."

"On the contrary, when the exchange rate of the Australian dollar against the US dollar is lower than 0.87, CITIC Pacific still has to purchase Australian dollars at the exchange rate of 0.87 for payment to Australia."

"After such an operation, the potential losses may be as high as billions of dollars. It is obvious that the returns and risks of these Australian dollar derivatives contracts are seriously unequal, which is despicable!"

"The premise of your expectation to lock in the cost of the Australian dollar is that the Australian dollar will appreciate significantly, but the reality is that the Australian dollar is likely to depreciate significantly, and you will have to bear huge liability for compensation."

"The outbreak of the global financial crisis is a certainty, sooner or later. Once the financial crisis breaks out, in order to ensure the hegemony of the US dollar, the United States will definitely try its best to maintain the strong position of the US dollar."

"In this way, the United States will pass on the crisis, and an inevitable result will be a sharp depreciation of the Australian dollar. According to my estimate, the Australian dollar will depreciate by about one-third in one or two years..."

Before he finished speaking, Mr. Rong suddenly stood up from the sofa.

He widened his eyes and said loudly in disbelief:

"What, there are billions of dollars in potential losses hidden in these contracts? Did I hear that right?"

"The highest income is only 5000 million US dollars. There is no comparison at all. Isn't this a trap?"

The two CITIC Taifu executives sitting nearby also had frightened eyes.

Yao Yuan looked at them and nodded firmly.

"You heard that right, Mr. Rong, and there are more traps in these Australian dollar derivatives contracts than just this one..."

Next, he opened the Australian dollar derivatives contracts one by one and pointed out the many traps hidden in them one by one.

And calculated the amount of potential losses, each loss is shocking.

As he introduced, Mr. Rong's and his others' expressions became increasingly ugly.

Especially Mr. Rong, whose eyes were full of anger and a little scared.

However, this is not the end.

After analyzing several Australian dollar derivatives contracts, Yao Yuan opened the contract for CITIC Pacific's acquisition of Western Australia iron ore and read it quickly.

Before he could read the contract, he frowned.

Then, he pointed to several clauses in the contract and began to analyze them.

"Mr. Rong, there are many loopholes in this contract to acquire iron ore in Western Australia, such as the complex transaction structure and the lack of clarity in certain terms, etc."

"There are huge hidden dangers in the royalties involved, and we must find a way to solve them. It is best to buy out the relevant Australian patents at once and cut through the mess quickly."

"Instead of paying it year by year, it is very likely to turn into a protracted patent dispute."

"If you choose to pay year by year, Australia will become a greedy leech, constantly crawling on CITIC Taifu to suck blood."

"The iron ore mines in Western Australia are in Australia. No need to think about it. Australian officials and courts will definitely favor Australian companies."

"There is also the Australian seller Palmer. I know him a little bit. Palmer is the fifth richest man in Australia. He is notorious in Australia. He never knows what credit is."

"When dealing with this guy, it's best to choose a one-shot deal. Otherwise, you have to be mentally prepared for the other party to jump left and right, constantly change their position, or even file a lawsuit."

Listening to this analysis, Mr. Rong and the others couldn't help but take a deep breath.

Only then did they find out.

This iron ore acquisition in Western Australia, which they are proud of, is actually full of loopholes.

Obviously, CITIC Taifu was calculated by the Australian seller.

We do not even rule out the possibility that there is a mole in CITIC Taifu bribed by Australia.

Thinking of this, Mr. Rong couldn't help but feel chills running down his back, and he was filled with fear.

At the same time, I was secretly grateful. Fortunately, I mentioned this matter to Yao Yuan and was able to discover these fatal loopholes.

Otherwise, CITIC Taifu will be waiting for huge losses!

Who can bear the responsibility for huge losses of billions of dollars?

Soon, forty minutes have passed.

Yao Yuan analyzed all the contracts on the table and pointed out the loopholes and traps one by one.

After listening to his analysis, Mr. Rong made an immediate decision.

"Xiao Yao, I have decided to cancel these Australian dollar derivatives contracts immediately to avoid huge losses."

"We will start negotiations with the Australian company again to resolve issues such as royalties and avoid leaving hidden dangers."

"But there is a problem here, how to solve the funding problem for us to purchase Western Australia iron ore and related equipment?"

"CITIC Taifu is not short of money, but it is short of enough Australian dollars, euros, and US dollars to pay Australian and European sellers..."

Before he finished speaking, Yao Yuan chuckled.

"Mr. Rong, you CITIC Taifu is short of foreign currency assets such as Australian dollars and euros, but we at Jiuye Investment are not short, and we have as much as we need."

"We can cooperate and let us help you solve the problems of the Australian dollar and the euro and help you maintain the value of your assets."

Mr. Rong's eyes suddenly lit up and he said hurriedly:

"Yes, Jiuye Investment is an international capital giant, with a capital volume of up to 700 to 800 billion U.S. dollars, some of which is in foreign currencies."

"Cooperating with you can indeed solve the problems we face. Tell me quickly, how can we cooperate?"

Yao Yuan smiled and immediately proposed a cooperation plan.

"It's actually very simple. Jiuye Investment can invest in some listed companies under CITIC Pacific, so that you can get enough foreign currency assets."

"Transactions between us can be carried out in Hong Kong Island or in the Mainland. The money we use to purchase equity is naturally in US dollars."

When he said this, a smile flashed quickly in Yao Yuan's eyes.

This was the purpose of all the effort he had just put in.

CITIC Pacific has many listed companies, some in the mainland and some in Hong Kong Island.

Yao Yuan's purpose is to enter these listed companies, obtain part of the equity of these listed companies, and expand the coverage and influence of Jiuye Investment.

It was impossible for Mr. Rong to refuse his proposal.

"Great, Xiao Yao, I agree with your proposal, we can cooperate."

With that said, he patted Yao Yuan's shoulder appreciatively.