The Son of Finance of the Great Age

  Chapter 581 Huatou dispute

  Soros learned about Zhongshi’s short-selling of Stanley’s stock from the insider of Tianyu Fund, which he didn’t even tell John Mark. Combined with the news seen on TV today, he quickly came to an astonishing conclusion that Zhong Shi and his capital were shorting the five major investment banks in the United States.

  This conclusion gave Soros a great shock. You must know that the five major investment banks on Wall Street represent American capital to a certain extent, and shorting these companies requires great courage and courage. And from the Hong Kong defense war that shocked the world in 1998, Soros discovered that Zhong Shi never lacked these character traits.

   Now the remaining question is, when will Zhong Shi choose to make a move?

  Although it is a preliminary guess, Soros has made up his mind that he must not miss this unprecedented capital feast, even if he is helping Zhongshi to some extent.

   It’s just that Soros never imagined that this stalactite, which can create huge expected returns and is enough for him to temporarily let go of his prejudices, has become a clown not worth mentioning in some people.

   "Look, they are already injecting capital into Freddie Mac and Fannie Mae. If we don't take action, I'm afraid we will really miss the opportunity!"

  A tall, thin middle-aged man stood up and spoke impassionedly to everyone in the conference room. His face was thin, his beard was sloppy, his eyes were bloodshot, his suit was also crumpled, and there was a faint smell emanating from him. He looked completely slovenly. But no one dared not pay attention to the words of people who were dressed like this.

  This is Huatou headquarters building located in Yanjing CBD. On the 88th floor of the top floor, more than 20 analysts and economists gathered in a large conference room to discuss Huatou's next investment move.

   As one of the tallest buildings in Yanjing, Huatou bought the entire ten floors of this building as an office location. From here, you can almost see the scenery of the entire Yanjing city. Working in such an environment can always give people a feeling of refreshing and refreshing. But today in this meeting room, no one can feel this kind of emotion, on the contrary there is a strong smell of gunpowder.

  Zhang Hang, deputy general manager of Huatou, chief economist, 45 years old. Graduated from Huaxia Academy of Social Sciences, he has won two "Wonderful Works Award", which is the highest award in Huaxia Economics. As an economist within the system, he has unique research on the combination of policy and market, and has made suggestions for the highest level of policy many times. He is one of the top think tanks in China.

  After Huatou was established, someone once suggested him to be the general manager, but his background as an institutional economist restricted the approval of this appointment. Because for Huatou, their huge capital export is a mature market economy market abroad, not Huaxia's "policy market economy" market, so in the end he can only enter Huatou as the chief economist and deputy general manager.

  Because the gameplay of the capital game in the international market is completely different from that in China, Huatou is naturally divided into two factions of returnees and locals. Although this statement has not been publicly confirmed so far, in private, the open and secret battles between the two parties have been in full swing in various aspects, and the leading figures on both sides are Gao Dongfang and Zhang Hang.

Originally, the overseas returnees had firmly gained the upper hand within Huatou, but after investing in the two failed businesses of Beryl Rock and Stanley, the overseas returnees were overwhelmed by overwhelming criticism, and the locals also took the opportunity to rise to the top and make their voices heard .

  Although Zhang Hang is a bit sloppy, his academic quality, at least in the study of political economy, is top-notch. Otherwise, it would be impossible for him to win the "Wonderful Award" twice. And the "capital injection" he mentioned was just a piece of news announced by the Federal Housing Finance Commission on the 24th. This agency approved the Federal Home Loan Bank to increase its holdings of more than 100 billion US dollars in Freddie Mac and Fannie Mae. MBS.

  The so-called MBS, Mortgage-Backed Bonds, is the securitization of housing mortgage loans, and part of the income that supports the conversion into bonds comes from the principal and interest generated by the loan. This is actually a covered debt bond in essence. The difference from a CDO is that the target object of MBS is single, only housing mortgage loans, and the guaranteed object of these MBS is often the government rather than insurance companies, so the credit rating is higher and the risk of default is higher. Small.

  The Federal Home Loan Bank of the United States increased its holdings of MBS issued by the "F&F" by US$100 billion. The essence of this behavior was to inject a total of US$100 billion into the two companies. Affected by this news, the stocks of the two companies rose sharply at the same time, and the rumors that the subprime housing mortgage loans may affect the "two rooms" naturally disappeared.

   At least for now, there is no sign of any crisis in the "two rooms".

   Within Huatou, a consensus has already been reached on investing in the “F&F” companies. Where there is a crisis, there must be business opportunities. Everyone knows this truth. But the question now is whether to buy the bonds or stocks of the "two rooms" and when and at what price is the right time to buy them. These questions plague everyone, including Gao Dongfang and others.

  In fact, even if Bernanke were to consider the issue, he would not be able to accurately predict any changes in the future. You must know that he is the one who has the power over monetary policy.

"I don't think so!" Seeing the silence in the conference room, Gao Dongfang had no choice but to speak up, "The choice to inject capital at this time just shows that the financial conditions of these two companies are not good, and the power of the subordinated bonds has affected the two companies. The operating conditions. In this case, we should continue to observe and see what else will happen."

"Come on, Manager Gao, I think you've been scared out of your wits!" Zhang Hang's eyes were bloodshot from excitement, and turned redder, "You should have become timid because of the failure of the previous two transactions. I have become timid. I told you a long time ago that you must make a decisive decision and never miss a good investment opportunity. Even if you are criticized, don’t take it too seriously. But you, look at yourself, during this time in the United States What have you done? Made a lot of reports and data, all of which seem convincing, but there is nothing conclusive, all of which are ambiguous."

As he said that, Zhang Hang slammed the thick stack of documents on the conference table, pointed at Gao Dongfang and said sharply: "This is an investment company, a sovereign fund, put away your bureaucratic tricks. If you don't take Action, I will definitely report to the superior department, you are too incompetent as the general manager."

  These few words turned faces, so when Zhang Hang said it, the originally silent meeting room became even more silent, and everyone held their breath, waiting for Gao Dongfang's response. Many of them had gloating expressions on their faces.

   At this time, although Gao Dongfang's face remained unchanged, his lungs were almost blown out. He had expected that Zhang Hang might make a big fuss about this matter, but he never expected that the other party would covet the position under him, and planned to take this opportunity to drive him out of the stage. You must know that there are people behind Zhang Hang, and Gao Dongfang naturally has high-level support behind him. If it is just a competition of background, the two sides can be said to be evenly matched.

But now his own side is weak and under enormous pressure, he must be cautious every step he takes, and Gao Dongfang also believes in Zhong Shi's judgment in his heart, that is, the power of subprime bonds is far from fully unleashed, and the market has not yet arrived. At the bottom of the valley, so now he can only hold back the anger in his heart, and explained embarrassingly: "Manager Zhang, if you have any opinions, feel free to report them to the board of directors and higher levels. I have already stated my position, and after combining our own After discussing with all parties, I think now is not the best time to enter the market, so I am holding back for the time being.”

"Opinions from all parties?" Zhang Hang's voice became more high-pitched and sharp, "The parties you are talking about are mainly this guy named Zhong Shi? Hehe, where did this guy come from? Isn't he just curled up in Hong Kong? Have you published a few inexplicable papers? Regardless of luck, I will grab a lot of this kind of stuff. When will the opinions of this kind of stuff be used as a reference by senior managers?"

   "This kind of stuff?"

Finally, someone couldn't stand Zhang Hang's behavior of watching the sky from a well. An analyst stood up indignantly, and sneered at Zhang Hang regardless of the discipline of the venue and the difference in identity, "Manager Zhang, since you said this This kind of stuff is not worth mentioning, and you can catch a lot of it. I would like you to give an example to see who can stop Soros from attacking Hong Kong, who can short Bear Stearns a year ago, and who in the end Who can set up a hedge fund giant like Bumeihua, and finally make it completely liquidated in the energy market? Manager Zhang, as long as you can name an example, I, Zhou Qilun, promise to resign immediately!"

  Due to the rapid economic development in the past few years, Huaxia's capital has also begun to go out of the country and enter the international market. But without exception, these attempts all ended in failure. Among them, the copper market, the cotton market and even the jet fuel market all experienced fiascos that shocked the industry. So don't ask Zhang Hang to give a case that is comparable to Zhong Shi in terms of performance, it is even difficult for him to give a successful case.

Knowing this well, Zhang Hang blushed immediately, and glared at Zhou Qilun dissatisfiedly, but he quickly searched the performance of Huaxia Capital in the international market in recent years, but five minutes later, he still had no Can find a case that can be taken. Furious, he slapped the table heavily, and scolded harshly: "Who are you, do you have a place to speak here? Besides, is Zhong Shi the one who brought down the Flower Fund? How can you prove that you are not Talking nonsense?"

   Who is the mysterious institution that shorted the Everlasting Flower Fund? There are different opinions in the market. Many people believe that the mastermind behind the scenes is John Arnold of Sagittarius Energy Capital Management. The reason why Zhou Qilun knew this was because he heard it from a college classmate who used to work under Hu Ping.

   Naturally, he couldn't prove any of this. However, he could still see Zhang Hang's face clearly, and immediately sneered with his mouth curled up, rolled his eyes to express disdain, and then sat back in a dazed gaze.

  Zhang Hang could clearly see Zhou Qilun's expression. He clearly felt that his authority had been challenged, and when he saw the slightly strange gazes of other people, he was even more furious, and his eyes almost burst into flames. Just when he was about to slap the table and get angry, Gao Dongfang had to stand up to smooth things over.

  For such a subordinate, Gao Dongfang is also very helpless, unkempt and grumpy are trivial things, but it is a big taboo to bring these emotions into investment. It is undeniable that Zhang Hang is indeed a talented person, but his talent is only reflected in the understanding of economics and academics, but he is not as good as a trader in practice. The most terrible thing is that his high-sightedness and low-handedness have been valued by some high-level officials.

   Zhou Qilun stood up to speak for himself, and Gao Dongfang naturally wanted to stand up for him. This was one of the reasons why he stood up to smooth things over. More importantly, he just thought of a clever idea, which can just divert Zhang Hang's attention, and he doesn't want to waste precious time in this kind of boring conflict of emotions.

"Okay, let's not discuss things about outsiders here, so as not to hurt our peace." Gao Dongfang coughed lightly, first controlled the topic in the conference room, and then said to Zhang Hang who was still full of dissatisfaction, "Manager Zhang , since we can't convince each other, how about we come up with a compromise plan?"

   "What kind of compromise?" Zhang Hang was taken aback for a moment, but he was really attracted, and he couldn't care less about troublesome Zhou Qilun.

"Take out 10% of the funds, limited to one year, and there are no restrictions on the types of investment. Some of them are based on your decision-making, and the other part is based on me. Let's see who has a higher rate of return." Gao Dongfang's face He smiled for the first time, "Of course, this is not a competition, but an investment choice under different investment ideas, and it can also be used as a measure to diversify risks."

  In fact, Gao Dongfang's proposal is essentially a competition, an investment competition with a total amount of 10 billion US dollars. Of course, in order not to give anyone an excuse, Gao Dongfang described it as an act of "diversifying investment risks". US$10 billion may seem like a lot, but when the two teams are divided on average, it is only US$5 billion. This money is only part of the funds for Huatou, and the time is set within one year. In principle, it is not too big The problem.

"Of course!" Zhang Hang naturally wouldn't say "no" to such a challenge, he just agreed after thinking for a while, but quickly added, "But there is one more condition, the objects of our investment must not be the same, Otherwise it is easy to be taken advantage of."

  Gao Dongfang naturally understood what the other party meant, and nodded with a smile, which was regarded as his agreement.

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  (end of this chapter)