The Son of Finance of the Great Age

  Chapter 349 Provocative liquidation

  Although some people proposed to use the Indonesian rupiah to acquire fixed assets and then hold them until the right time to cash out, and no one refuted it, but in fact no one did it. Because at this time, after the news of the Indonesian government's excessive currency issuance, the exchange rate of Indonesian rupiah to US dollars in the foreign exchange market has fallen below the 4,000 mark, and their prices are also rising rapidly. It will take a certain amount of time to convert all of them into real objects, and by that time, the consequences of excessive currency issuance will be manifested. The situation of domestic inflation and foreign devaluation is inevitable, and the losses of Quantum Fund will only become more serious.

   While Soros, Druckenmiller and others were at a loss for this deal, Zhong Shi and his team were watching the performance of the Korean won in the foreign exchange market with pride, waiting for the opportunity to close their positions.

   Just yesterday, on December 10, South Korea once again announced the suspension of the business of five securities banks. After two consecutive days of sharp decline, the Korean won opened at 1459.4 won to 1 dollar on this day, which has hit a new low in South Korea this year. On this day, all eyes of the market turned to the won market.

  In Indonesia, the president's staff announced that Suharto will attend the Asia Summit in Kuala Lumpur. They want to use this method to dispel the rumors about the president's health that are increasingly spreading in the market. In South Korea, the exchange rate of the currency against the U.S. dollar has reached a new low every day, and the business of five securities banks has been suspended. However, these are not the reasons why the Korean won has become the focus of the entire East Asian currency market today. It is ridiculous to say that the real reason for the South Korean won to become the focus of attention again is that the South Korean government once again backtracked, and it is about to become the laughing stock of the market.

After announcing the closure of nine securities banks last week, the South Korean government has repeatedly announced that it will not close any more banks. However, in order to cooperate with the rescue plan of the International Monetary Fund and strengthen the confidence of foreign capital, the South Korean government has announced another closure at the risk of market criticism. The inconsistent and contradictory practices of the five securities banks immediately caused widespread panic in the market.

Now that the government's promise is no longer credible, the performance of the Korean won in the foreign exchange market is obvious to all. In less than half an hour after the market opened, the Korean won fell crazily to the position of 1,600 won to 1 dollar. It is about to fall to the price of 1604.9, where trading is suspended.

   "Zhong Sheng, are we still making a move?" Seeing that the trading was about to be suspended, the traders who had been waiting for the trading order were anxious, and one of them couldn't help asking.

Zhong Shi raised his head blankly, looked at the other traders, and found that they were all looking forward, so he said with an "oh": "Let's try the water by buying 40 billion won first! However, every trader Buying must be the same amount, let the market know that it is our transaction."

Looking at his understatement, the surrounding traders were speechless for a while. According to the current price, 40 billion won is equivalent to about 25 million U.S. dollars. This is definitely an astronomical amount of money for most people in the world, but Arriving at Zhongshi, it seems that it has become a small stone just to test the water.

   Amazement turned into amazement, a row of traders sitting away winked at each other, and started to get busy in an orderly manner according to the division of labor that had been arranged before. For a while, the sound of phones and keyboards rang one after another.

   "Huh? Old Ren, why do you look so ugly?"

  Zhong Shi scratched his head, feeling a little embarrassed. He had just wandered away for nine days, and didn't notice the performance of the Korean won at all. He didn't report a number until the trader reminded him to cover up his embarrassment.

Seeing the traders busy on their own, Zhong Shi let out a long breath, turned around and prepared to make a cup of coffee, only to find that Ren Ruowei had been standing quietly behind him since no one knew when. , two eyes fixed on the big South Korean won quotes on the computer screen, and a face as pale as paper, without blood.

Seeing the fine beads of sweat oozing from Ren Ruowei's forehead, Zhong Shi asked worriedly: "Old Ren, are you feeling unwell? How about this? I'll give you a day off, and you should go to the hospital to have a look." Come on, don't wear yourself out."

  Ren Ruowei raised his head, glanced at Zhong Shi with a complicated expression, and then said slowly: "I'm fine, thank you Zhong Sheng for your concern. I...I'm going to work first."

After he finished speaking, he turned around and left. After walking two steps, he heard Zhong Shi laugh narrowly behind him, and shouted loudly on purpose: "Don't forget, it's time until February next year, hurry up and book a car Come on, it’s not easy to buy when it’s late!” Ren Ruowei immediately staggered and almost fell to the ground, he didn’t dare to stay longer, and left here as if fleeing.

  Zhong Shi laughed again for a long time before he focused on the disk. As the limit is approaching, almost all transactions in the Korean won have stopped, and everyone is waiting for the moment when the won falls to a stop. As a result, at this time, dozens of purchase orders of 2 billion won suddenly appeared in the market, and the total purchase orders of tens of billions of won suddenly lifted the price of the Korean won, which was already on the verge of collapse, making the Korean won exchangeable for the US dollar. The exchange rate did not fall to the stop position, on the contrary, it rose a lot.

The sudden price fluctuation caught other traders off guard, and they did not understand the meaning of this buying order. You must know that if you stay for a few minutes or a day, the price of the Korean won will bottom out again, and you can buy more at that time. Isn't the won better? However, soon a shrewd trader came to his senses and secretly calculated the purchase amount in his mind. When he realized that it was a rare and large sum, his mind became active.

"A purchase of more than 20 million U.S. dollars is definitely a big deal." Some traders who understood it yelled in their hearts, "Who is it, and who can sell so many purchases under the current market conditions? And it's still the same amount, aren't you afraid of revealing your identity?"

   Those who can trade in the foreign exchange market are definitely large institutions. At least for the stock market, these institutions are superior in terms of financial resources, manpower, and strategy applications. Moreover, the foreign exchange market is related to the economy of a country. Few institutions can control the direction of the currency, and neither can a single quantum fund, unless Soros raises his arms.

"Someone bought it!" The market fluctuations quickly spread to all corners of the market, including Tiger Fund, which has a special person in charge of Korean won trading. "And the amount is not low, at least tens of millions of dollars." A trader Counting the entrusted numbers on the screen, I couldn't help shouting.

  Although it is late at night in the United States, the interior of Tiger Fund is still brightly lit. Researchers and traders have long been accustomed to this upside-down life of black and white. Recently, inside the Tiger Fund, there is a constant debate over whether the Korean won should be closed at this time. Even Julian Robertson himself has not finally made up his mind.

   Logically speaking, with the IMF’s resolution, at least on the premise of not selling more short positions, Tiger Fund should reduce its position in the Korean won one by one, because in the long run, the recovery of the Korean won has become inevitable. But in the short term, South Korea's financial crisis continues to simmer, and the trend of the Korean won is also showing a deteriorating trend. All this makes Julian Robertson and others undecided.

   Fortunately, if you compare it with the average price of their short positions at this time, Tiger Fund is still making a lot of profits from shorting the Korean won position. Even if the Korean won rises in the short term, it will not hurt their foundation at all. Therefore, after repeated weighing, Julian Robertson decided to still focus on short selling, but the intensity will not be as fierce as before.

"what?"

  Billy King is one of the managers in charge of KRW. Just when he thought that today would be another ordinary but enjoyable night, the traders' shouts awakened his wonderful fantasy. Frowning tightly, Billy King clicked on the Won page, and after carefully checking the transaction records, he couldn't help but gasped.

"Who is this? What do you want to do?" Billy King's first reaction was whether this guy is crazy. You must know that the market has already called for the lower limit of the Korean won to be 2,000 won to 1 US dollar. The prospects are infinitely bearish, and you must know that closing a position now is tantamount to giving up a potential profit.

   "Eat it, let them regret it!" After thinking about it for a few seconds, Billy King decisively gave the order to take the dish. Although Julian Robertson did not grant a large transaction quota, Billy King still has the power to mobilize tens of millions of dollars.

Soon, the traders faithfully carried out Billy King's order, but it was too late at this time, because other institutions rushed to sell the Korean won. Finally, after the big order was completed, Tiger Fund only managed to sell the Korean won. It's just a few million dollars in Korean won.

"Watch the board carefully, don't miss the next opportunity!" Billy King, who was very annoyed after seeing this scene, said to the traders viciously, and at the same time cursed in his heart, "I don't know Who is the idiot who chose to close the position at this time, just wait, I will eat as much as you have."

   Almost at the same time, Zhong Shi sneezed suddenly, rubbed his nose and laughed at himself: "No way? Does anyone miss me? How is the situation now?"

Regarding Zhong Shi's stinking beauty, the traders turned their faces away and laughed secretly. It took a long time before someone replied: "Zhong Sheng, all our purchase orders have been sold, and now the Korean won has rebounded slightly, and the price is floating around 1589." , what should we do next?"

"The selling price of 25 million US dollars directly raised the price of the Korean won by more than a dozen. This liquidity is a bit worrying!" Zhong Shi tilted his head and thought for a while, then snapped his fingers decisively, "Another 800 billion buying orders will be released. , see what will happen now?"

  The traders looked at each other, and saw that although Zhong Shi's expression was relaxed, he was not frivolous, and his voice was not loud, but there was a kind of decisiveness that could not be questioned. Although they had different opinions in their hearts and did not agree with this almost provocative buying amount, they still strictly implemented Zhong Shi's order.

Following the ferocious Korean won buying in the market a few minutes ago, it didn’t take long for the Korean won to buy again in the foreign exchange market. Small selling orders pushed the Korean won up to the 1570 level.

   "Again! Again!"

  Billy Jin took a closer look and found that there were buying orders with a purchase amount of 2 billion won in the market again. Seeing this situation, he was very pleasantly surprised, and just snapped his fingers towards the sky, and the traders who had been prepared for a long time immediately clicked on the keyboard to enter instructions, and soon Tiger Fund began to gradually absorb these batches. Chips come.

  The rapid number of transactions also stunned other people in the market, and soon they realized that there were two powerful institutions fighting, which represented their two-point view of the market. However, when the South Korean government backtracked, most people chose to continue shorting and began to erode buying in the market.

One of the opponents directly and blatantly provoked the market with the same purchase amount, while the other swallowed the thrown purchase order without making a sound. Most of the traders were terrified and excited at the same time. It was absolutely uncommon to see two masters fighting each other, and soon they joined the battle group one after another.

   On Quantum Fund’s side, seeing the sales team getting bigger and bigger, this Korean-born man with a short nose and small eyes grinned happily. But it didn't take long for him to realize that he seemed to have overlooked something.

   "No!" The traders reported the number of transactions all the time, their voices were loud and clear, and they shook the eardrums. The complacent Billy King nodded to himself while listening, with a smile on his face that was about to burst into bloom. But just when their turnover was about to break through 10 million US dollars, a thought suddenly popped into his mind, as if a basin of cold water had been poured on his head, which immediately woke him up.

"The behavior of the other party is really suspicious. If it is to close the position, it means that this short-selling institution is no longer optimistic that the Korean won will continue to fall in the market outlook, but we have not received relevant news. Could it be that there are people who are more bullish than us? force?"

"If it is an institution, they have sold tens of millions of dollars in positions so far, and there should be few in the market with such financial resources. But if it is not an institution, buying orders with such the same number of hands will never appear What is the situation? Why did you buy so blindly when you grew up?"

  The more he thought about it, the more confused he became. Billy King realized at this time that the other party sold regardless of the market, even for the same amount every time. It was definitely weird to expose that it was an institution.

   "Let's stop for a while!" Billy King, who was struggling to figure out what to do, could only suppress his doubts. He just sold about 16 billion won hastily, and ordered the traders to stop in time.

Although Tiger Fund has stopped, the enthusiasm of the market has been fully mobilized. All people or institutions that are not optimistic about the future market of the Korean won, even including local banks in South Korea, are selling the spot Korean won crazily. This makes Zhongshi’s Closing a position has never been easier. As of Asian trading hours, he had bought a total of nearly 800 billion Korean won spot on this day, spending about 500 million U.S. dollars, and reduced his entire position by 10% at once.

  Finally, by the end of the day, the Korean won closed at 1,565.9 won to the US dollar, down 7.7% from the previous trading day. Even though Zhong Shi and others tried their best to buy in the market, the bearish atmosphere is still very strong, and the domestic information in South Korea is really weak, so in the end it can only be such a result.

Calculated according to the level of 980 won to 1 US dollar for opening a position before, and the average level of 1,570 won to 1 US dollar when the position is closed on this day, that is to say, it only cost 200 million US dollars to buy it back, and it cost 500 million US dollars to buy it. The Korean won spot, this transaction earned as much as 300 million US dollars, and the 60% yield made everyone in the Tianyu Fund laugh from ear to ear.

   "It doesn't feel good to be besieged!" Only Zhong Shi remained calm, and after brushing his hair smartly, he grinned with emotion.

   Thank you very much for the book friend Zhixin, it wasn’t me last night, topdown, and July Liuyan voted for monthly support! The author has worked **** the number of words in the past two days, and hopes that more book friends can support this book, thank you everyone!

  (end of this chapter)