Year: I had a good time when I was young

Chapter 770 Iron Ore, Coal, Cattle, Sheep and Timber Export

Chu Xiangqian was still upset about not being able to cheat HSBC, but when he thought about it, in this day and age, anyone with a net worth of over 100 million US dollars could make it onto the rich list.

He wanted to swindle $3.6 million from HSBC, which was really an underestimation.

He could tell from Juan's expression that he actually didn't want to go against HSBC.

Although Standard Chartered and HSBC are competitors in Hong Kong Island, they have often cooperated with each other.

The two note-issuing banks have also been tacitly suppressing the business of Chinese banks and banks from other countries in Hong Kong Island.

To put it bluntly, what the two companies least want to see is a third bank emerging in Hong Kong Island and snatching profits from them.

If Chu Xiangqian only wanted to borrow 3600 million US dollars, or double the leverage and borrow 7200 million, Juan would not mind helping Chu Xiangqian to cheat HSBC once if he tried his best.

But Chu Xiangqian asked for 3.6 million, which was indeed too much of an amount.

Not to mention that HSBC would not take the risk, Standard Chartered was also unwilling to offend HSBC to death. In the end, the two companies broke their tacit understanding and fought to the death.

Moreover, once the fight starts, Standard Chartered's capital is obviously less than that of HSBC, and the pressure will be very great.

When Chu Xiangqian was about to give up, Juan suddenly said, "Mr. Chu, we can bet your 10 million pounds with Japanese financial institutions. But 1 times leverage is too risky. The Japanese will probably only agree to 1.5 to times, which is about million to million."

Neon may not seem big, but its economic strength is certainly far greater than that of Hong Kong Island. Borrowing $100 million or $200 million should not be a big problem.

Chu Xiangqian immediately became interested.

Whether it is to cheat the Japanese or HSBC, I will not hesitate.

Although the profit of a one-year foreign exchange futures contract may only be a few million dollars.

But no matter how much money they make, it is ultimately a betrayal to the Japanese.

Chu Xiangqian thought about it and decided to take out all 1375 million pounds.

Firstly, he could borrow more US dollars, and secondly, if he needed pounds, he could exchange them for US dollars. As for the handling fee, Chu Xiangqian didn't care at all.

Thirdly, tiger bone wine, iron ore, and the cattle and sheep from Downton Abbey can all provide him with pounds.

When Juan heard Chu Xiangqian increase the offer from 1 million to 1375 million pounds, he instantly realized that Chu Xiangqian was really pessimistic about the exchange rate of the pound.

As for Chu Xiangqian's request to borrow $1375 million from the Japanese with 2 million pounds as collateral, Juan was not under much pressure.

After a silent calculation in his mind, Juan quickly figured out that if he wanted to borrow $2 million, he would have to use a 4x leverage.

He would probably have to borrow 5555 million pounds from the Japanese first, and once the money was in his account, he would immediately exchange it for 2 million US dollars from the Japanese.

If the repayment period is six months or one year, the British pound will be bought back with US$1 million upon maturity.

If the pound falls, you make money.

Otherwise you will lose money.

If the price increases by 25%, Chu Xiangqian will have to pay all his deposit.

But Chu Xiangqian knew that it was impossible for the pound to rise by 25%, let alone 5%.

So he didn't worry about losing money at all.
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In the evening, all guests attending the auction are invited to have a whole deer or whole tiger banquet at Youguqi. As for which one to choose, it is up to the guests themselves.

Of course, if you don’t like either, you can order your own dish.

However, no guest at the banquet refused the tiger bone wine.

It was almost 10 o'clock in the evening before we sent the last table of guests to the Peninsula Hotel's special car.

Chu Xiangqian now had time to chat with Linda, Sanjiangshui and Fei Bo who were in charge of security tonight.

However, Sanjiangshui and Fei were obviously a little restrained when facing Chu Xiangqian, who earned more than 80 million US dollars in one day.

Because the exchange rate of the pound has fallen, the exchange rate of the US dollar to the Hong Kong dollar has risen to 1 US dollar to 4.45 Hong Kong dollars.

8190 million US dollars is equal to 3.64 million Hong Kong dollars.

This means that the money Chu Xiangqian earned in one day is more than what Fei Bo, Lan Gang and Lei Luo have earned in these years combined.

Seven or eight years later, Lei Luo was forced to flee, but he only made 5 million Hong Kong dollars.

Not to mention San Jiangshui, he has been the inspector for only more than two years, and the money he has made is at most a fraction of what he earns from a racehorse auction.

Chu Xiangqian sighed inwardly. In a capitalist society, when wealth reaches a certain level, it is equivalent to power in disguise.

Chu Xiangqian was helpless but also open-minded about why Sanjiangshui and Feibo were so reserved.

After talking to Sanjiangshui for a few words, he decided to go to Beijing to see the Line of Sky when he had time, and then he took Linda into the car.

When they arrived at Jordan's house, as expected, as soon as they entered the door, Elisa, who had already known the result of today's auction, excitedly threw herself into Chu Xiangqian's arms.

It was a pity that the sisters Lina and Liya were not there. It was obvious that Elisa did not call anyone and did not even allow them to come.

But with Linda and Alissa, tonight is another sleepless night.

The next morning, Chu Xiangqian woke up naturally. Seeing that Linda and Eliza were still sleeping soundly, he did not disturb the two sisters who were exhausted last night.

I got up, showered, and dressed. I took out four large bags of British pounds in cash from the Novice Village warehouse, went out, and got into Zhang Tianzhi and Zhou Billy's car, "Let's go to Standard Chartered."

Zhang Tianzhi nodded and glanced at the four bags that Chu Xiangqian had thrown on the back seat.

He opened his mouth and wanted to remind his boss not to keep the money at home. It would be a small matter if the money was stolen, but it would be bad if it hurt the four concubines and the five concubines.

And if you think about it more deeply, the boss had only revealed it in front of himself and Zhou Billy, and put the money with Jordan.

It was really an accident, and the first ones to suspect were myself and Billy Chow.

Thinking of this, Zhang Tianzhi immediately became restless.

He himself would definitely not betray Chu Xiangqian, and Zhou Billy did not seem to be a greedy person in the past two years.

If the fourth and fifth concubines let the secret slip, then the ones who would be in trouble would be himself and Zhou Billy.

Zhang Tianzhi hurriedly advised, and Chu Xiangqian laughed after hearing it.

"Don't worry, I had someone deliver this money to me last night. Normally, let alone here, there is not much cash even in the villa on the top of the mountain."

Zhang Tianzhi and Zhou Billy looked at each other and immediately realized that in addition to themselves and others, the boss also had a group of people who did private work for him.

No, they had actually known about the existence of this group of people for a long time, and there were even several groups of people hiding in the dark.

But I didn't expect that the boss would trust one of these people so much. These four bags of money could contain at least 7 or 8 million, or even more than 10 million Hong Kong dollars.

For a moment, Zhang Tianzhi and Zhou Billy secretly said that they should be more careful and cautious in the future.

Chu Xiangqian didn't care what the two men thought, because he had no shortage of people to do private work.

Nick Cheung, Billy Chow, Tony Jaa and Yuen Wah now act more as bodyguards, drivers and microphones. They have no access to any secrets or money.

After the car started, Chu Xiangqian told everyone to have breakfast first, and then they arrived at Standard Chartered before 9 o'clock.

With the assistance of a team of lawyers led by Huang Weixin who arrived at Standard Chartered in advance, more than a dozen power of attorney contracts were signed before he nodded to Zhang Tianzhi and Zhou Billy.

Juan also didn't care where the four bags of £1375 million in cash came from.

After personally taking the money and the contract with his men, he whispered to Chu Xiangqian, "Mr. Chu, I contacted five or six institutions in Japan last night. The $2 million you want should only take three days to get.

But the other party also has some requirements." Now it was Chu Xiangqian's turn to be surprised.

When Juan saw Chu Xiangqian's surprised expression, he couldn't help feeling a little proud.

He smiled and said, "Speaking of which, we have to thank England for the continuous growth of its exports to Japan in the fields of agriculture, animal husbandry, medicine, auto parts, shipbuilding and other industries in recent years, and Japan's demand for pounds is also increasing.

At the same time, the US dollars in the hands of the Japanese are increasing as Japanese goods become more and more popular in Magnesium.

Otherwise, it would not be so easy for the Japanese to lend US dollars to Standard Chartered and agree that the loan can be repaid in pounds after one year.

As for the request made by the Japanese, it was also very simple. They hoped that Standard Chartered would help them purchase a batch of basic raw materials. "

After saying that, Juan took out a list. Chu Xiangqian took it, looked at it for a few seconds, and couldn't help but smile brightly.

It seems that those financial institutions in Japan are not stupid at all. They also realize that the pound is likely to continue to fall.

Of course, some people predict that it will fall, and there will definitely be people who think that Britain is, after all, an old capitalist country and it is impossible for it to allow the exchange rate of the pound to fall.

Therefore, in the view of some senior executives of these institutions, as long as Downing Street has a sound mind, it will not allow the exchange rate to fall.

Since Chu Xiangqian is willing to gamble, they might as well act as middlemen.

While agreeing to Standard Chartered's foreign exchange futures order, it also made an import demand for basic raw materials to Standard Chartered, a bank headquartered in London.

After taking over Standard Chartered's foreign exchange futures contract, it split the contract into dozens or hundreds of small contracts.

Transfer the risk to the hot money and small and medium-sized institutions in the Japanese financial market who are optimistic about the future appreciation of the pound sterling exchange rate.

One year later, when the repayment deadline arrived, regardless of whether the pound rose or fell, the Japanese institutions not only did not suffer any losses, but also earned commissions on both ends.

By the way, make some money from the basic raw materials that Standard Chartered helps to purchase.

Chu Xiangqian smiled and shook his head. To put it bluntly, these big conglomerates and financial institutions don't care about the interests of ordinary people and the country.

If a stock market crash really happens, they will definitely be the ones who turn around and short their own country's stock market.

There are even many examples of Japanese banks taking the lead and triggering Japanese financial crises decades later.

So, in the final analysis, Chu Xiangqian not only failed to defraud those Japanese banks, but was helping them make money.

But this money actually belongs to ordinary people and small and medium-sized institutions in Japan.

Moreover, Chu Xiangqian had already agreed with J.P. Morgan Jr. and MacDonald of the Royal Bank to use the Victory Wheel to offset part of the payment for the horse racing.

Naturally, I also want to enter the shipping industry.

Neon is a country that relies solely on imports for basic raw materials. Among the list of more than 30 items, Chu Xiangqian quickly discovered several items such as oil, coal, metal ore, and agricultural and animal husbandry products.

I thought to myself that once I get the first batch of 30 victories, I won’t have to worry about a lack of customers.

Cattle, sheep, coal, iron ore, and even timber from the novice village can all be transported to Neon in large quantities.

And even if they don't sell it themselves, the Japanese can find other sources of supply.

It would be better to make money from the Japanese and reduce the export volume to Europe, America and Southeast Asian countries.

You can even help China and make money from Japan.

At that time, China and Japan had not yet established diplomatic relations, and trade between them was not only very rare, but even nonexistent.

Even if there is, it needs to go through a third party.

After Chu Xiangqian figured it out, he naturally would not refuse. He even held Juan's hand and whispered for a while.

Only then did they agree to use Standard Chartered as the settlement bank.

However, Chu Xiangqian not only lowered the commission he paid to 1.8%, but also asked Standard Chartered to help him find a way to lower the tax rate or even get a tax refund.

In short, Standard Chartered and Chu Xiangqian made money, while the Hong Kong government and the British made less, or even lost money.

This is not only done by the British people. The overseas businesses of local wealthy businessmen in Hong Kong can basically reduce most of the taxes and fees.

There is basically no tax on imports of timber, coal, iron ore and other items that are in urgent need in Hong Kong.

The tax rate for exporting from Hong Kong Island to Europe and the United States is also very low. In the future, many Chinese companies would rather spend more effort to export to Hong Kong Island first and then to Europe and the United States because of the low tax.

Chu Xiangqian quickly agreed with Juan that in the future they would export four items to Neon: coal, iron ore, cattle, sheep and timber.

As for the specific scale and price, Standard Chartered needs to discuss with Neon first.

Chu Xiangqian himself would also ask someone to check the prices of these goods in Neon.
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Three days later, Chu Xiangqian's 1375 million pounds was converted into 4950 million US dollars.

Then, using this money as collateral, he obtained the book wealth of 4 million pounds with a 5555x leverage as he wished, and then asked Standard Chartered and Neon institutions to exchange foreign currency.

Convert all 5555 million pounds into US dollars.

However, the Japanese are also worried that Chu Xiangqian will disappear with the $2 million. This money can only be kept in Kyoto Bank, Japan's specialized foreign exchange bank, but the account is regulated by Standard Chartered.

Lest the money be lost for no reason.

Chu Xiangqian had no objection to this. If it were him, he would not let anyone take the money away.

Now that the money has been borrowed, the only thing left is to negotiate the prices of timber, coal, iron ore, and cattle and sheep.

There is nothing much to say about iron ore.

The international price is US$12.6/ton. If you add freight, labor and other costs, even if Chu Xiangqian and Standard Chartered try their best to increase freight, labor, tax rates and other costs, the final calculation is about US$13.5/ton.

Chu Xiangqian suddenly felt dissatisfied, as he always felt that he had sold it too cheaply.

Then he insisted that the iron ore he provided was top-grade iron ore with an iron content of 70%, which could greatly reduce the cost of refining.

Standard Chartered naturally hopes that the higher the price of iron ore, the more commission they can get.

It took a week just to discuss iron ore, and we finally agreed on a price of $15 per ton.

However, even if Chu Xiangqian had his own cargo ship, the actual profit he would get would only be about US$14.5 per ton.

But it's also more expensive than selling it to Philips.

Assuming that 6 tons of iron ore are refreshed every day in the Novice Village, that would be 18 tons per month.

Based on the price of 14.5, Chu Xiangqian can earn 261 million US dollars from the Japanese every month in iron ore.

That’s 3132 million a year.

But Chu Xiangqian thought about it and realized that since he had to maintain his relationship with Philips, it was impossible to sell the entire year's share to the Japanese.

Finally, the amount was discussed to be 180 million tons, leaving a two-month share, or 2 tons, in reserve.

Moreover, he paid for the freight of the iron ore sold to Philips, so even if Chu Xiangqian made less profit, the difference would not be much.

Of course, Chu Xiangqian did not actually sell much iron ore in the past few years.

There are at least 28 months, or 504 million tons of iron ore in the Novice Village warehouse.

After the major item of iron ore was negotiated, timber, cattle, sheep and coal were easier to negotiate.

(End of this chapter)