Reborn in Hong Kong as a Tycoon

Chapter 600 There are ups and downs, continuous shipments (two in one)

After leaving Fifth Avenue, Claure Rockefeller went to his father's house.Claure Rockefeller has already married and started a business. He and his wife and children also live in New York, and they do not live with the elderly.

Lawrence Rockefeller knew that Claure Rockefeller had gone to Lin Baicheng's place tonight, so he waited for him to come over at home.

The family has nothing to say, so the two father and son went to the study to talk.

Claure: "Father, we asked Lin Baicheng, and Lin Baicheng said that he wanted to take another look. He thought that the price of gold could reach a higher price."

"Did he say to wait for a specific price to sell?" Lawrence asked.

Claure shook his head: "He didn't say, he said that he couldn't predict the future trend of the gold price, but he thought that the gold price should continue to rise, so he wanted to wait and see. As for whether he really thought so, or just like that Just tell us, then we don’t know.”

"It's normal, he should really be unable to judge where the gold price will go next, and it's normal for him not to tell you even if he knows."

Lawrence was not surprised when he heard the words. With the size of the gold futures market and the impact of news stimulus, let alone Lin Baicheng, even Wall Street cannot predict what the next high point of the gold price will be.

Claure said: "Lin Baicheng agreed to let us know when his long order is sold, but it doesn't make sense to us."

"It really doesn't make sense."

Lawrence nodded in agreement. The more than 20 billion US dollars of gold futures that Golden Fleece is operating are more than one order. The top institutions on Wall Street have ways to monitor those accounts. Once the other party starts to sell, they will find out, and there is no need to wait for Lin Baicheng to sell. Inform later.

"This time, Hutchison Whampoa's gold futures investment will definitely make a profit, and the profit is not small. Therefore, Hutchison Whampoa's stock can still be bought, and its stock price will inevitably rise."

Lawrence did what he said. He didn’t use all his funds to invest in gold futures. He had to share the investment out of risk considerations. Nowadays, Hutchison Whampoa’s investment is basically impossible to lose money, but to make a lot of money. Of course, he can Take out part of the funds to buy Hutchison Whampoa's stock, so as to make a fortune.

As for the fact that Hutchison Whampoa is a listed company in Xiangjiang, Lawrence doesn't think it matters at all. He just needs to send people to Xiangjiang to buy stocks, and by the way, he can set up a branch in Xiangjiang.

Huaguo in the east has decided to reform and open up. Although the systems of the two countries are different, there is a market as big as Huaguo. Lawrence feels that it is necessary to lay a pawn in Xiangjiang, the bridgehead.As for whether to invest in Huaguo in the future, that will be discussed later.

"The stock price of Hutchison Whampoa is now close to 110 Hong Kong dollars. The staff at Xiangjiang said that it is widely rumored that Hutchison Whampoa's investment is long gold futures. Stock prices rose along with gold prices."

Claure said something, and this matter was secretly arranged by Lin Baicheng. The rise in Hutchison Whampoa's stock price was exactly what he needed, so that he could reduce his shareholding at a high level to cash out.

"Based on this calculation, the total market value of Hutchison Whampoa has exceeded 450 billion Hong Kong dollars, which is more than 10 billion U.S. dollars, and the company's annual profit is probably less than [-] billion Hong Kong dollars. The company's price-earnings ratio is a bit too high."

Lawrence couldn't help shaking his head, and suddenly said: "I remember that after Hutchison Whampoa was taken over by Lin Baicheng, it was short-sold several times. Lin Baicheng won every time, and Hutchison Whampoa followed the buyback. If the stock price of Hutchison Whampoa rises a little bit more, you can go short, and I want to see how Lin Baicheng plans to deal with it this time."

Claure said: "Although the revenue and profit of Hutchison Whampoa's business is not high, the company's net assets are not low. Today's net assets may exceed 150 billion Hong Kong dollars, which is close to 200 billion Hong Kong dollars. Therefore, As long as Hutchison Whampoa’s investments can bring huge returns to the company every time, I believe the market will have great confidence in the company’s stock price, and there will be a relatively high premium rate, so it will be difficult for the stock price to fall too much.”

"I know all of this. If I were to go short, I would definitely wait for Hutchison Whampoa's rise to almost reach a high point before I go short. At that time, the stock price itself is expected to rise and fall, and the success rate of shorting is very high. "

"Let's not talk about whether I want to go short at that time, Claure, do you believe that with the rise of Hutchison Whampoa's stock price, there will definitely be funds entering the market to short Hutchison Whampoa and play a game?"

Lawrence is well aware of the mentality of other institutions. The more Hutchison Whampoa's stock price rises now, as the stock price gets higher and higher, more and more short-selling funds will enter the market.No matter which stock it is, it is impossible to only rise but not fall. If the stock price keeps rising, the accumulated risk will become larger and larger, and the safety and success of short selling will become higher and higher.

Of course, if you want to short Hutchison Whampoa, a large-cap stock with a market value of more than [-] billion U.S. dollars, it is absolutely impossible without a large amount of funds.

If the amount of funds is too small, it will not be able to guide the trend of the stock price at all, and there will be no splash if you throw it in. You can only rely on the stock price to adjust itself, so you are not shorting but betting that the stock price will adjust.

The practice of large institutions is usually to use a large amount of funds to sell stocks that are to be short-listed, suppress the rise in stock prices, and guide stock price adjustments. Selling stocks becomes a boost to short selling.

With a two-pronged approach, unless the short-selling company or major shareholder has a large amount of funds, the stock price will inevitably fall, and the short-selling short can make a lot of money through the stock price drop.

Claure echoed: "Of course I believe what my father said. Lin Baicheng has a grudge with the British capital in Xiangjiang. If the British capital sees an opportunity, it will definitely not let it go."

"lets change a topic."

After waving his hand, Lawrence asked, "Have you mentioned to Lin Baicheng about the investment in Changsheng Medicine and Biological Company?"

"I said that."

Claure replied: "Lin Baicheng said that he will increase the investment amount of Changsheng Pharmaceutical Company to 5 million US dollars, and give me up to 10% of the shares, which is an investment amount of 5000 million US dollars."

Lawrence couldn't help frowning: "You can only get 5000% of the shares for $10 million?"

Seeing this, Claure said: "I also feel that too much investment will get too few shares, but Lin Baicheng's attitude is relatively firm. At best, I can only choose to invest less and reduce shareholding. By the way, he said that all his investments will come out in cash, At that time, I can send finance to the company, and he probably won’t lie to me about this.”

"If he has already asked you to send finance to the company, it is obviously impossible to lie to you."

Lawrence said something, and then pondered for a moment.

Seeing this, Claure waited for a small meeting, and then said: "Father, he temporarily increased the investment, obviously because he didn't want our Rockefeller family to hold too many shares. Only 5000% of the shares were obtained for 10 million US dollars, and the company's prospects are still uncertain." It’s hard to say, I think this investment should be carefully considered.”

"You're right. The maximum of 5000 million US dollars is not a small amount. It really needs to be carefully considered."

In a company with an investment of 5 million US dollars, he can only get 10% of the shares and has little rights to the company. Lawrence really doesn't want to make such an investment.But when he thought that Lin Baicheng had invested more, at least 4.5 million US dollars, he would not believe that Lin Baicheng had no confidence at all, so he hesitated.

Claure said: "Father, there is no rush to make a decision on this matter. It is okay to give Lin Baicheng an answer in about ten days and a half months."

Lawrence nodded: "I really have to think about it for a while."

Claure asked, "Father, how much further do you think the price of gold can go?"

Lawrence glanced at him: "How many long orders have you placed in private?"

"$5000 million."

Claure smiled awkwardly, knowing that his father had seen through his tricks. A long position of $5000 million is a lot for him, and this is also because he uses leverage, otherwise he would not be able to raise so much money unless he disposed of some properties.

"How high it can rise, let alone me, no one can predict."

Lawrence said something first, but then changed the subject: "However, I have discussed with Goldman Sachs, Citigroup, Morgan and other institutions, and we have unanimously decided to let the gold price fluctuate for a few days, and then work together to raise the gold price. After the price of 700 US dollars / ounce, everyone decides whether to ship or not. At that time, it depends on who runs fast and who runs accurately."

Let the gold price fluctuate up and down at the price of 600 US dollars per ounce for a few days, wash out the unsteady funds, and then raise the gold price, let the previously washed out funds carry the sedan chair and take over the market.

"Thank you father!"

Claure was overjoyed when he heard that. If he said so, as long as he is not greedy, then there is no problem in selling off long orders when the price of gold is close to 700 US dollars per ounce.

"This is just our general plan. Whether we can achieve it depends on whether there are any changes in the news and how the market is going."

Although the big institutions on Wall Street have united, the trading volume of the gold futures market is still too large. Once there is sudden news to stimulate the gold price trend, or large funds enter the market, they will not be able to control the gold price trend.

Therefore, the plan belongs to the plan, and they are not fully sure whether it can be made according to the plan.

"In recent days, I will always pay attention to the trend of gold prices."

Claure said, he also knows the uncontrollability.

Nodding his head, Lawrence didn't say anything more.The two father and son then chatted about other things. Because it was getting late, Klauer left and went back to the home he bought.

In the next two days, the price of gold fluctuated up and down, with the price of $600 per ounce as the central axis.

The lowest price on Thursday was even close to $585/oz, but it recovered a lot in late trading, and rebounded to above $600/oz again on Friday, with a high close to $615/oz and a closing price close to $610/oz.

These two trading days have a lot of swings, with a short difference of five points between the high and low points.

After two trading days, Lin Baicheng's long orders were liquidated by nearly 30 billion US dollars.The main reason is that the number of orders sold was a little less on Thursday, because the price of gold fell on that day, and it was inevitable that too many orders were sold and caused a greater decline, so naturally fewer orders were sold.

The price of gold has fluctuated in the past two days, and Lin Baicheng has some doubts whether it has something to do with his shipments. It is his shipments that have suppressed the rise in gold prices.

However, doubts are doubts, but Lin Baicheng is not prepared to change the plan. It is a victory for him to be able to ship safely and transfer the profitable funds.

However, the shipments in the past few days have been smooth without any accidents, and Lin Baicheng is very happy about this.

On Saturday and Sunday, Lin Baicheng didn't go anywhere. He just stayed in New York and spent most of his time at the villa. Even Phil Smith asked him to go out to play, but he refused.

At a time like this, Lin Baicheng didn't want to cause trouble, and staying with the operation team in the villa made him feel more at ease.

Lin Baicheng hopes that the price of gold can fluctuate at $600 per ounce as long as possible, so that his long orders can be shipped smoothly while the price of gold fluctuates. Unfortunately, after another two trading days of fluctuations, the price of gold starts to rise rapidly again.

However, the rapid rise in gold prices is not without benefits for Lin Baicheng.First of all, if the price of gold rises, the price of selling long orders can be higher, and the other is that more long orders can be closed every day.

The price of gold has risen sharply, so you can close some more orders, and there will be funds to take over the sold orders.

In the past few days when the price of gold fluctuated, Lin Baicheng also did one thing by the way, which was to close the long orders invested by the small circle, and by the way, he notified all investors.

Phil Smith and Mineryu Iwasaki were most concerned because they were also long gold futures themselves, but Lin Baicheng only told them to close their long orders for the sake of safety, and didn't say anything more.

When the price of gold reached US$650 per ounce, Lin Baicheng's long gold futures orders had already wiped out tens of billions of US dollars of funds.Despite this, he still has more than 100 billion US dollars in long orders that have not been liquidated, and what was liquidated before was only the principal.

The time came to January 1 in a blink of an eye, and another week of trading was over, and the price of gold had risen to nearly $18 per ounce.

During this nearly 10% increase, Lin Baicheng closed out several billions of dollars of long orders.If there is no accident, according to the current trend of gold prices, Lin Baicheng's long orders can definitely be liquidated before the price of gold rises to 800 US dollars per ounce.

Vivien Kelly, Doug Gordon, and Sun Yiyang of the operation team told Lin Baicheng that the price of gold rose by about 14% this week, which is quite an astonishing increase. A large amount of funds entered the market, and the price of gold was quickly raised.

There are usually only two results in this situation. One is that the price of gold is about to have a bigger upward trend, and only $900/oz or $1000/oz may be the stage high; In order to prepare for shipments, there will be a wave of rapid rise in gold prices in the future, but the rapid rises will also fall quickly, and the gold price will get out of the roller coaster trend due to the shipment of large funds.

Vivien Kelly and the others just stated their judgment, and Lin Baicheng must decide what to do.

However, Lin Baicheng decided not to make any changes after listening to the judgments of the three of them, and continued to ship according to the original plan to close the long orders, and he was safe.

Next, not only Lin Baicheng's remaining gold futures long orders will be liquidated, but even Hutchison Whampoa's long orders will start to be shipped.It's just that Hutchison Whampoa's long orders are not too many, and the shipment will be faster.

(End of this chapter)