The Son of Finance of the Great Age

  Chapter 18 Financial Killer

   What Zhong Yi didn't know was that Zhong Shi was lying on the bed in the hotel at this time, all he could think about was how to make a fortune from RB's capital market in September.

On September 22, 1985, the finance ministers and central bank governors of the United States, RB, Federal Republic of Germany, France and the United Kingdom held a meeting at the Plaza Hotel in New York, and reached a joint intervention in the foreign exchange market by the governments of the five countries to induce the exchange rate of the US dollar against major currencies. An agreement on orderly devaluation to address the problem of America's large trade deficit. Because this agreement was signed at the Plaza Hotel, this agreement is also known as the "Plaza Agreement".

Most of the serious economic crises that broke out in the 1980s and 1990s were caused by foreign exchange, such as the sterling crisis in 1992, the Southeast Asian economic crisis in 1997, and the ruble crisis in 1999. These are the economic development of some countries. It is not equal to the value of the currency, and it is targeted by bloodthirsty international speculative capital, which then makes waves in the foreign exchange market, eventually affecting the economic development of certain countries.

It is precisely because of these lessons learned that all countries in the world have invariably strengthened the supervision and intervention of the foreign exchange market, so that the economic crisis that broke out after entering the 21st century is no longer dominated by the currency crisis, but instead focuses on the systemic risk of the market and credit system.

Whether it is in the foreign exchange market dominated by the country, the bond market dominated by credit ratings, or the stock market dominated by expected profits and prospects, there are plenty of opportunities to make money. The same exists.

  There are no general victors in the capital market, and even the "stock god" Buffett sometimes loses money by mistake. Therefore, what matters is not how you get rich, but how you survive. Stable investment returns are far more important than fluctuating income. In the United States, corporate mutual funds are invested in the stock market to buy those blue-chip stocks, which will generate stable income every year. When the employee reaches retirement age, the pension accumulated in the mutual fund is enough to make him worry-free in his later years.

  However, if we just follow the index and reap the harvest safely, so many legends will not be born!

  Especially in the capital market, the myth of getting rich overnight is far more attractive than stable income, and it is even more worshipful!

  The emergence of financial derivatives makes all this possible!

  The so-called financial derivatives refer to financial products based on traditional financial products such as currencies, bonds, and stocks, and characterized by leveraged credit transactions. Derivatives can be divided into four types: forwards, futures, options, and swaps according to the product form, and can be classified into stocks, interest rates, exchange rates, and commodities according to their underlying objects.

  Why are derivatives so lethal? For example, if someone buys a futures contract with an underlying price of 100 yuan at a margin rate of 10%, this contract only needs the person's 10 yuan of funds. If the price of the contract fluctuates by 1% in the market, Then its price becomes 101/99, and a change of 1 yuan is a 10% price change for the trader's original 10 yuan.

  In the Huaxia stock market in later generations, a 10% price change means the limit of a stock's price fluctuation in a day. In the futures market, this is only a 1% change.

  Currently, the funds in Zhong Shi’s hands are only about three million Hong Kong dollars, according to the official exchange rate, there are only about one million RMB, and according to the black market exchange rate, even less than one million RMB. If you use this little money to play with international predators, you probably don't even have the qualifications to carry shoes. Even in the financial center of Hong Kong, investing such a small amount of money in the stock market seems to be a waste of money, and it will not even risk a wave.

  So Zhong Shi has to rely on the big killer of financial derivatives to be able to quickly accumulate wealth in the short term.

  Through the information collected by Liao Chengde, Zhong Shi learned that there are yen futures and options in the United States, which undoubtedly brought his plan one step closer to success.

In Chicago, the third largest city in the United States, there is the world’s largest and most diversified exchange—Chicago Mercantile Exchange (CME), which gathers most of the yen futures transactions, and the trading unit of each yen futures is about one 125 million yen, the initial deposit is about 300,000 yen, trading Japanese yen futures for January, March, April, May, July, September, October, and December.

At that time, 300,000 yen was equivalent to about 9,000 Hong Kong dollars. According to Zhong Shi’s current net worth, he could buy hundreds of yen futures, but Zhong Shi did not intend to invest all his funds in it, because if so, A slight reverse movement of the yen against the dollar would cost him a lot.

   After the "Plaza Agreement", the appreciation of the yen took a long time. In the next 86 years and 1987, the yen appreciated slowly. Nor will the RB government stand by and watch as the domestic currency appreciates, causing huge damage to the export economy.

  In addition to this reason, Zhong Shi also intends to take a gamble on the two-year yen option. (Options will be introduced later)

  But the problem now is not on the other side of the ocean, but how to go to Hong Kong in September.

  In the mainland in the 1980s, there were two ways to go to Hong Kong. The first is naturally a formal channel, which is to go to Hong Kong with a tourist visa;

Although the frontier guards in eastern Guangdong no longer shoot and kill stowaways, Zhong Shi denied this road without even thinking about it. The development of China mainland will only get better and better in the future, so there is no need at this time. go on an adventure.

  Since there will be no smuggling, you can only go to Hong Kong in the name of tourism. However, traveling to Hong Kong these days is not an easy task. First of all, you need relatives in Hong Kong, and then you need foreign exchange certificates, and then you can register with a travel agency.

  Of course, there is another way, which is the one-way permit. However, the current Zhongshi has not considered this, after all, the one-way permit is one-way, and it is not easy to obtain. At this time, one-way permits have become a means of earning money for some dignitaries, but with Zhong Shi's current connections and relationships, he still has no access to this group of people who rely on the "dual-track system" to make their fortunes.

  After spending two days in the Southern Metropolis, Zhong Shi began to think about business.

   "Little Shitou, what are you doing in Nandu?"

   Zhong Jianjun, who was wiping his wet hair, came out of the bathroom, and saw Zhong Shi sitting on the bed with hair in a daze, not even watching the programs on the color TV on the bedside.

   Zhong Jianjun followed Zhong Shi to several scenic spots in Nandu in the past two days. While feasting his eyes, he also felt very puzzled. Isn’t it just flowers and old houses, why so many people come to see it? Unlike Zhong Shi, who watched with relish, Zhong Jianjun only felt that the scenery was more beautiful, and that was the case after seeing too much.

He, who is in his prime, felt a little overwhelmed by the running around during the day. After returning to the hotel, he hurriedly took a shower. His biggest entertainment in the past two days was watching "Legend of the Condor Heroes" on TV at night, the 83rd edition "Shooting the Condors" is undoubtedly a very classic, and the provincial TV station is playing it for the past two days, and Zhong Jianjun watched it with gusto. In his opinion, programs on TV are much more interesting than running around during the day.

  Zhongzhuang has been connected to electricity, but there are not many people with TV sets, and they are all black and white TV sets, but there is no color TV set. In the countryside in the 1980s, color TV was undoubtedly a very luxurious commodity.

  After Zhong Jianjun asked, he sat on the head of the bed and started watching TV. He calculated the time, and it happened to be after eight o'clock when he came out of the shower, and the TV series just started playing. He just asked casually just now, and didn't mean to delve into it.

   As for this son, he is becoming less and less able to see clearly, but this is good, saving him a lot of time and energy in discipline. Zhong Jianjun still trusts the nephew who is in college, so he simply let his son go with the eldest nephew.

   "Dad, let me tell you something, don't be too surprised after you hear it, and don't tell outsiders!"

  Zhong Shi saw Zhong Jianjun lying on the bed, staring at the TV intently. He felt that it was time for his parents to know something. Although it was unbelievable, Zhong Shi knew that there would be more incredible things happening in the future, and the sooner his parents knew, the better.

   Liu Lan did not come with them this time, saying that she would watch at home. No matter how Zhong Jianjun and Zhong Shi tried to persuade her, they had no choice but to let her go.

   "Well, tell me, did you get into some trouble, or what happened?"

  Zhong Jianjun lit a cigarette, took a puff beautifully, and exhaled a smoke ring that he thought was elegant, and then said casually. For him, the programs on TV are undoubtedly more attractive than Zhong Shi's words. What important things can a nine-year-old child have?

   "Didn't I sell that white porcelain bowl last time? I made hundreds of thousands, and later asked that seller to buy some stocks in Hong Kong, and now I've made a lot of money!"

   Zhong Shi said while watching Zhong Jianjun's expression, for fear that his father would understand the reason and take back his financial rights.

   Fortunately, Zhong Jianjun didn't fully understand what he said, but while watching TV, he casually asked, "Did you make money? How much money did you make? Your kid is better than a father like me!"

   "Not much, just over a million!"

"what…"

  Zhong Jianjun was startled. The cigarette in his hand fell onto the sheet, burning a small hole in the snow-white sheet. He hurriedly picked up the cigarette and extinguished it. After a lot of fuss, he came to his senses and asked in disbelief, "More than a million? Did I hear correctly?"

  Seeing Zhong Shi nodding his head, Zhong Jianjun jumped up from the bed and said excitedly, "This is all right, we can buy a color TV set!"

  Looking at his father who was as excited as a child, Zhong Shi was full of helplessness. After Zhong Jianjun's excitement passed, Zhong Shi said: "Dad, if you don't tell me, I also want to bring a TV with me when I go home this time. However, it is estimated that I will bring three TVs. Also, this time I come to Nandu. In order to apply for a tourist visa to Hong Kong."

   "What? Hong Kong?"

  Zhong Jianjun is completely petrified now!

  (end of this chapter)