God-level Trader of Rebirth

Chapter 71 The Lowest Point in History
1998, April 8.

After encountering stubborn resistance in the foreign exchange market, international speculators continued to launch attacks in the stock market, continued to build short positions in stock index futures, and sold a large number of blue-chip stocks.

Amid the panic, the Hang Seng Index plunged to close at 6660.41 points, a five-year low.

从1997年8月7日，恒生指数16673点的高峰到1998年8月17日，短短一年时间，恒指已经跌去约10000点。

The drop was as high as 60%, which can be described as a heavy loss.

"Awei, just now two private equity fund managers jumped off the building outside." The third uncle said with lingering fear just after he came back from the outside.

He used to hear people say that he would jump off a building if he was involved in stocks or finance. He thought it was a joke, but now that he finally saw it with his own eyes, it was inevitable that he would feel a little bit sad.

"It is true that many private equity funds have liquidated their positions recently, with serious losses." Li Xier also said.

Now in Central, people go to the rooftop almost every now and then.

The sound of an ambulance lingers in my ears from time to time.

Many people don't understand why some financial practitioners jumped off the building when the stock market plummeted.

Fund companies are divided into public offering and private offering.

The manager of a public fund earns management fees, and whether the fund falls or rises, it has nothing to do with him.

However, if the performance is too poor, it will affect the overall fund size, which will indirectly affect the income of the fund company.

Fund managers in public offerings are similar to those who work in state-owned enterprises. They receive high salaries every month. Although they may be laid off due to poor performance, they will never jump off the building.

If the performance of the fund is not good, for them, it is just that there is no year-end bonus.

So you will often see some fund managers, the funds they manage are terrible, and they lose so much money, but they are not fired.

Private equity is completely different. Many small private equity, in order to gain the trust of customers when designing product structures, often have to pay out of their own pockets to subscribe for inferior shares, using this as a safety cushion to protect the security of priority shares (customers).

Kind of like a mortgage.

To give the most popular example, if a private equity fund manager wants to issue a private equity product with a scale of 1 million, he must first spend 2000 million himself to use the remaining 8000 million client funds as a bulletproof vest.

If the market fluctuates and you lose 20%, then the 2000 million of the loss will be borne by the private equity fund itself, and the remaining 8000 million is the client's money, and they can redeem it at any time, which is tantamount to forced liquidation for you.

All the client's funds are withdrawn, and you are the only one who loses money, and you don't even have a chance to come back.

Many small private equity, if you don't do this, no one will invest in your fund.

It has to be said that this is also a helpless move.

The 2000 million is likely to be the private equity fund manager's life savings and achievements, and even the patchwork of relatives and friends.

Once there is a deficit or liquidation, many people will not be able to bear such a blow, and choose to go to the roof and start a new life again.

"In this industry, someone makes money and someone loses money. If you don't have a strong psychological quality, you will leave sooner or later." Chen Weidong said calmly, leaning on his chair.

He has seen this situation countless times in later generations, and now he will not be touched in any way.

Chen Jie took a sip of coffee and said, "In the past few days, the Hang Seng Index has fallen to 6660.41 points like a slide. There are also many investors from the outside world begging us to rescue the market. What do you think, Ah Wei?"

At the beginning of the year, Infinity Corporation took several actions to rescue the market and maintained the Hang Seng Index above 8000 points. Only then did there be a subsequent wave of rebound, giving many people a chance to breathe.

But now, the Hang Seng Index has fallen to more than 6000 points, but Infinity Company seems to have disappeared, unmoved at all.

Many stockholders once speculated whether the boss of Infinity did charity and emptied his family, and he has no spare energy to carry out "charity" anymore?

Therefore, many reporters and paparazzi wander downstairs of Infinity Company every day, hoping to catch some valuable news.

Instead of filming all day long, so-and-so rich, the son of the rich, shopping with such-and-such female celebrities, buying luxury goods, going to high-end hotels, and coming out at [-] o'clock in the morning. This kind of street stall news.

Now that the economy is down, the people of Xiangjiang have paid much less attention to these entertainment news.

Shooting these news, the magazine can't sell a few copies.

Everyone is desperately living, who has time to care about this?
Considering that Infinity Company has indeed been silent for too long, it may be almost forgotten by Quantum Fund.

Chen Weidong felt that it was time to give them some eye drops.

Soros cannot be too arrogant.

afternoon time of the day.

The general manager of Infinity Corporation, a well-known philanthropist, a financial tycoon, and the strongest investment genius in history——Chen Jie.

In the Xiangjiang Stock Exchange, under the watchful eyes of everyone, he did an extremely crazy thing!

In front of hundreds of reporters, he opened a stock index futures account, and bought 20 HSI futures contracts on the spot with more than 10 billion Hong Kong dollars—to go long!
Moreover, he stood at the gate of the Stock Exchange, printed out the futures contract, and held it up high for all reporters to take pictures.

In front of countless flashing lights.

He declared in a high-profile manner: "The stock market has completely bottomed out, and 6500 points will be the lowest point of the Hong Kong stock market in the next 30 years. You will never even encounter this kind of opportunity again!"

"If you don't buy the bottom at this time, you will definitely regret it for life in the future!"

"Several years later, when you face the desolation of your family and your children ask you why your family is so poor, you will definitely think of what I said today, and cry bitterly... regret it..."

As soon as Chen Jie's words came out, there was an uproar immediately.

Countless people have gone crazy. They pushed forward desperately, shouting hoarsely, wanting to ask Chen Jie personally if he has any inside information, and whether Infinity is planning to save the market again
Even experienced Xiangjiang reporters were overwhelmed by the crowd, so that the staff of the Stock Exchange had to come out urgently to maintain order at the scene, so as not to cause a stampede.

Standing at the gate of the Stock Exchange, Chen Jie was interviewed by the reporters on site under the eyes of all the people.

In high spirits, he casually pointed at a beautiful reporter.

It turned out to be from Phoenix TV, and she said excitedly, "Mr. Chen Jie, we want to know, where did you get the confidence to think that the stock market has bottomed out now?"

"I am optimistic about the future development of Hong Kong's economy, and believe that the stock market has returned to value, and it is absolutely safe to buy bottom at this point!" Chen Jie said nonsense seriously.

"Mr. Chen, are you provoking Soros and other Western capital giants with this move?" The reporter from the Oriental Newspaper finally squeezed to the front and asked loudly.

"I advise Soros and the others to leave the Xiangjiang stock market as soon as possible, otherwise they will be beaten all over the place, including some speculators in Central. It is too late to stop now!"

"Mr. Chen, can you speak more clearly?"

Facing the siege of many reporters, Chen Jie has also gained some experience, so skip it if you don't want to answer.

After all, with so many people, he really couldn't handle it.

One of the male reporters was very fanatical and kept calling out his name. Chen Jie immediately asked him to ask questions.

"Mr. Chen, you are my idol! How do you comment? Western public opinion joked that Xiangjiang has become an ATM for international investors. Once they are short of money to spend, they only need to press a few buttons on this ATM, and it will be ready." Spit out the money."

Chen Jie was secretly refreshed. He didn't expect to have fans. He grinned and said:
"Hehe, I think Soros and the others must be short-sighted and mistook the slot machine for a cash machine."

(End of this chapter)