Black technology: starting from ten thousand times faster

Chapter 66 Tenfold Leverage

"Okay, since the boss insists on doing this, then I will fully cooperate!"

Luan Weiliang nodded seriously.

Afterwards, a group of people finished their lunch and went directly to the Kyoto Exchange.

Before they came here, they had sent an employee to handle the basic account opening and other cumbersome procedures. Next, they only need to sign a securities lending contract with a brokerage to activate leverage and start shorting the stocks of the three major auto companies.

The so-called shorting, in the terms of stock trading, is the opposite of the meaning of doing long. To be long is to buy stocks, and to be short is to sell stocks.

Among them, there are three ways to short.

The first is to hold the stock yourself and sell it directly in the stock market.

The second is securities lending.

It can be seen from the literal meaning that securities lending and financing are similar in nature. The biggest difference is that financing is borrowing money, while securities lending is borrowing stocks.

For example, Suxin does not have the stocks of the three major car companies, but there are many securities companies in Kyoto. What Su Xin needs to do is to sign a contract with one of the brokerages to borrow the stocks of the three major car companies at the current stock price, and then sell them in the stock market.

When the stock price drops to a certain level, he can buy the same amount of stock at the low price at that time and return it to the brokerage.

That is, sell first and buy later.

For example, if the current stock price is 100 yuan per share, Su Xin borrows 100 million shares and sells them at this price, and can get 1 million yuan.

When the stock price fell to 60 yuan, Su Xin bought 60 million shares in the stock market at a price of 100 yuan and returned them to the brokerage firm. At this time, he only needed to buy 6000 million shares.

Then his profit is 4000 million.

Of course, securities lending transactions require high interest and commissions, similar to loan interest, but much higher than the latter.

The upper limit of leverage for securities lending transactions varies according to the policies of different countries. The maximum leverage in China is two times, while in Sakura Country it is ten times.

Therefore, with 31 billion funds as a pledge, Su Xin can borrow up to 310 billion worth of stocks from brokerages. As long as he tries to sell these stocks without causing too much stock price fluctuations, ideally, he can sell these stocks for 310 billion.

If the market value of the three major car companies shrinks by half, Suxin only needs to spend 155 billion to buy stocks and return them to the brokerage, and the profit can reach 155 billion!
Even after deducting the interest and commission, he can earn at least 150 billion yuan!
That's the beauty of finance.

Of course, once the short-selling fails, especially under high leverage, it will easily lead to bankruptcy and never recover.

Many people get rich overnight in the stock market, but many more people lose everything in the stock market.

This is also why many rich people choose to jump off the building after failing to invest in stocks. It is because under the effect of leverage, they owe huge debts that are difficult to pay off in a lifetime, so they have to choose to die.

As for the third short-selling method, it is short-selling stock index futures, but stock index futures look at the broader market index rather than individual stocks, which is not applicable to Suxin's situation.

Therefore, the most suitable thing for Su Xin at present is to short-sell in the form of securities lending.

Not long after, Luan Weiliang took Su Xin to sign a securities lending contract with a broker.

Prior to this, Suxin transferred 31 billion funds in the company account to overseas accounts.

After the contract was signed, all 31 billion was transferred to the credit account opened by the exchange, and a 100-fold leveraged contract was signed with the brokerage company, and the stocks of the three major car companies in Sakura Country were respectively borrowed at a value of about [-] billion each, and it was agreed to return them within six months at the latest.

of course.

Su Xin’s move is not a desperate move. After all, the expiration time of Tiantian Assistant’s monthly fee members is inconsistent. Almost every day, a large number of users expire and renew their subscriptions, which continuously provides Apocalypse with a large amount of funds. The average daily renewal income is nearly 6000 million.

Even if he withdrew most of the funds, it would not put the company in trouble.

In the stock market here, Su Xin has the killer weapon of solid-state batteries. He is very convinced that as long as he releases solid-state batteries and officially announces the mass production, he will be able to beat down the stock prices of the three traditional car companies in Sakura Country.

For others, this kind of behavior can be said to be extremely risky, but for Su Xin, this is almost a guaranteed profit.

In the VIP room of the Kyoto Exchange.

Su Xin watched Luan Weiliang and the others continue to operate and sell the stocks of the three major car companies, and increased the number of sales little by little, and these stocks were quickly eaten up by retail investors.

Their operations did not cause any fluctuations in the stock prices of the three major car companies.

After all, the market capitalization of the three major car companies in the Cherry Blossom Country has reached hundreds of billions or even trillions of eagle dollars, which is equivalent to trillions of dragon coins when converted into dragon coins.

And each has trillions of dragon coins.

With Su Xin's 300 billion funds on hand, each company's shares are worth about [-] billion. Unless they are sold at one time, it is difficult to cause large fluctuations in stock prices.

Moreover, the automobile industry is the largest pillar industry in Sakura Country, accounting for about 40% of Sakura Country's industrial output value, and providing more than 500 million jobs. The three major auto companies are the three overlords in Sakura Country's auto industry.

This is why Su Xin firmly believed that as long as he had an indispensable position in the automobile industry, he would be able to leverage the world structure and have great influence in the world.

in the next few days.

Su Xin and Luan Weiliang spent most of their time in the VIP room of the Kyoto Stock Exchange, continuing to sell the stocks of the three major car companies. Sometimes tens of thousands of shares were released at a time, sometimes only a few hundred shares were released, and sometimes they even bought some. They used extremely high frequency to deceive people and avoid causing panic among retail investors.

This will prevent the stock price from falling.

Their operations were indeed very effective. The hundreds of thousands of shares listed at normal prices were basically snapped up by retail investors or large investors in Sakura Country.

In the eyes of Sakura people, the stocks of the three major car companies are high-quality stocks, and they may not be able to buy them if they want to buy them at ordinary times. Now that some people have finally sold them for a large sum of money, they naturally snapped up them one after another.

However, these large-scale transactions have attracted the attention of the financial departments of the three major auto companies.

After all, the stocks of the three major auto companies have always been favored by everyone, and it is rare for the stock market to sell consecutive large sums of money.

In the past few days, the selling volume on the stock market has been several times higher than usual, and from time to time there will be a large number of selling.

Finance Department of Yutian Automobile Group.

The traders in charge of monitoring the stock market reported the abnormal buying and selling of the stock market to their superiors, who immediately reported to higher levels.

After understanding the situation, the executives just said casually: "It is normal for some retail investors or large investors to buy and sell. As long as there is not a large amount of selling and it does not cause stock price fluctuations, then there is no problem, don't worry about it."

Generally speaking, as long as the company is operating in good condition and has sufficient funds, with the size of Yutian Group, there is really no need to pay too much attention to these small fluctuations in the stock market.

With the instructions from the superiors, the management of the financial sector did not take it too seriously, and just ordered the traders to continue monitoring.

(End of this chapter)