Reborn in Hong Kong as a Tycoon

Chapter 68 Leveraged Finance
"Mr. Thomas, I have one more thing I want to ask you this time."

Lin Baicheng said aloud: "I am going to do gold futures trading, I would like to ask, should Goldman Sachs provide leverage business?"

"Of course, this is one of our main businesses at Goldman Sachs."

Wade Thomas replied immediately, although he felt that it was very unlikely that Lin Baicheng needed leveraged financing beyond his authority, he still asked: "Mr Lin, how much money are you going to use for futures trading? And how many times the leverage is needed?" ?”

"One hundred million dollars, five times the leverage."

Before coming to the United States, Lin Baicheng had already calculated the funds he could currently use and how much money he would use to do long gold futures.The funds he currently has can be divided into two parts, one is the US$[-] million loan from Goldman Sachs, and the remaining funds from the sale of Wharf shares and the company's remaining funds total nearly [-] million Hong Kong dollars.

Lin Baicheng plans to use [-] million Hong Kong dollars to slowly acquire the shares of Hutchison Whampoa, and then the acquisition of Li's TV should also cost [-] million Hong Kong dollars, and the initial funds for the development of game consoles should be [-] million Hong Kong dollars. There is not much money to do long gold futures.

[-] million US dollars, Lin Baicheng decided to use the [-] million US dollars loaned from Goldman Sachs to go long on gold futures, using five times the leverage.

Trading with five times the leverage and owning 80 million US dollars as a margin, as long as the gold does not fall below 20% of the purchase cost price, that is, the loss does not reach [-]%, then Lin Baicheng's gold futures will not be liquidated.

Lin Baicheng doesn't know how big the trading volume of gold futures is in this era, but he thinks there should be a trading volume of trillions of dollars. With such a large trading volume, he doesn't have to worry about someone hunting for his funds.It is impossible to use hundreds of billions of dollars of funds to suppress the price of gold and eat up Lin Baicheng's long futures.

And if the gold price falls slowly, Lin Baicheng only needs to replenish the margin before the gold price falls below 80% of the cost price and the loss reaches 20%, so he doesn't have to worry about losing all [-] million US dollars due to sudden liquidation.

Lin Baicheng is very sure that the overall price of gold will show an upward trend in the next few years. As long as there are no problems in the first few months to half a year, there will be no problems in the future. Just wait for the price of gold to rise.

In fact, Lin Baicheng thought about using ten times leverage at the beginning, but the loss ratio of 10% was still too low. He was worried that if he was unlucky, he would just buy when the gold price was adjusting and falling, and then he would not be able to make up the margin temporarily, resulting in a loss instead of making money. [-] million dollars, that loss is too great.

The risk of ten times leverage is too high, so Lin Baicheng finally chose five times leverage, a figure that is neither high nor low.

"One hundred million dollars, five times the leverage? Yes, no problem!"

When Wade Thomas heard the words, he nodded and agreed without even thinking about it. The amount of financing did not exceed the one billion dollar limit of his authority, so he can directly make the decision.

"Mr. Lin, how long are you going to finance? The longer the financing period, the lower the interest rate. The shortest period is one month."

"Can you talk about it specifically? For example, what is the interest rate for financing for one month, what is the interest rate for financing for three months, and what is the interest rate for financing for half a year?"

"Of course! For one month of financing, the interest is calculated at an annual interest rate of 15%; for three months of financing, the interest is calculated at an annual interest rate of 14%, for half a year of financing, the interest is calculated at an annual interest rate of 12%, and for one year of financing, an annual interest rate is calculated 10% interest is calculated, and the interest rate for financing for one year is the lowest.”

No matter how long the financing period is, the interest rate is higher than that of bank loans. This is normal, because bank loans require collateral, but leverage financing does not. The collateral is actually the futures and margin bought with leverage financing.

"Let me raise money for half a year first."

Although the interest rate for financing for one year is lower, Lin Baicheng is not sure whether he will use the money later. One year is too long, so he can only choose to pay more interest.

Financing of 6 million US dollars, the financing time is half a year, the interest rate is 3000%, that is, the interest of 6 million US dollars.If Lin Baicheng's futures investment cannot earn a profit of more than [-]% within half a year, then he will lose money. In addition, the [-] million US dollars itself is a loan, and the loss will only be more if the interest is included.

"For financing, Mr. Lin, you can contact me whenever you have time. After we sign the contract and your funds are transferred to the fixed account, our Goldman Sachs funds will be given to you immediately."

This was another big deal, and Wade Thomas was very happy.

"I will have someone send the funds to the United States, and I will contact you, Mr. Thomas, in a day or two."

Lin Baicheng nodded. He didn't bring any funds with him when he came here this time, but as long as he contacts Xiangjiang, the [-] million US dollars can be transferred at any time.

"It's about buying shares in Microsoft and Apple. I hope you, Mr. Thomas, don't forget. It's best to give me good news in the past few days. I can't stay in the United States for too long."

"Don't worry, Mr. Lin, there will definitely be good news within a week."

Wade Thomas is sure to handle the matter of buying shares in Microsoft and Apple within three to five days, but he didn't talk too much, after all, no one can guarantee that there will be no accidents.

"That's good."

Lin Baicheng nodded.

Afterwards, Lin Baicheng chatted with Wade Thomas for a while, and then left to go to the branch of Galaxy Games.

On the afternoon of the same day, Eric Davis signed a contract for 1400 "Xiangjiang Cube" arcade machines with Phil Smith's Phil Trading Company on behalf of the US branch of Galaxy Games, and Phil Smith paid [-] million US dollars on the same day payment.

For the US$1400 million payment, Lin Baicheng transferred US$1000 million to his private account in the United States, and the remaining US$400 million was kept in the branch account.

Because of the relationship of selling the game as an agent, the branch office has basically nothing to do except keep in touch with agents in western countries on weekdays, so it can be said to be quite leisurely.

This time, Lin Baicheng left 400 million U.S. dollars in the company account, and he asked Eric Davis to find a store with a good location in Los Angeles to buy it. After decoration, it can be used to sell toys, game consoles and future products Other peripheral products are operated as direct stores.

Although Xinghe Games has nothing to sell now, the store can be opened first, anyway, it will be used as real estate investment, and some employees can be trained by the way.

Eric Davis was very happy to take over the task assigned by Lin Baicheng. Doing nothing was not what he wanted, which meant that the branch company was not important at all, and he, the person in charge of the branch company, was naturally not important at all.

Only when the company's assets in the United States increase, its business increases, and its status improves, will Eric Davis, the person in charge of the branch, rise.

　(Seek for collection, ask for recommendation ticket, ask for investment, ask for monthly pass!)
　　
　
(End of this chapter)