Kai Fu Han

Chapter 170 Futures Contracts
"Our family really can't raise 1 taels of silver. The master asked me to participate in your auction today because he wanted me to buy some things and sell them back to make money to see if I can raise 1 taels." The businessman of the Wang family explained. : "So I am unable to redeem my young master for the time being."

Liu Xinqi didn't believe it. 1 taels might be difficult for the Wang family, but they would definitely be able to come up with it. However, it would definitely hurt their bones after delivery, so the Wang family didn't plan to get it together so quickly.

Liu Xinqi, a businessman of the Wang family, has the impression that he bought three groups of goods at the auction today, which cost nearly 2000 taels of silver. He did not use his own goods to pay for the money, so he was very generous.

"We don't have enough money, so we'll accept it in exchange for things." Liu Xinqi began to talk.

The businessman of the Wang family was a little embarrassed when he heard this, but he still said shamelessly: "I plan to pay for the ransom the next time you come to Goryeo."

"Your master really trusts me, so he's not afraid that I won't come next time." Liu Xinqi teased.

"My master is very knowledgeable. After looking at your products, I know that you must have mastered the manufacturing method of artificial colored glaze. Steel products are also manufactured in batches. So if you want to exchange these things for money, you will definitely come to Korea. ." The businessman of the Wang family replied: "As long as you plan to do business in Goryeo in the future, our master believes that you will ensure the personal safety of the young master."

These words revealed that Wang Han had seen the details of the Xinghan Alliance and also brought some threats.

"You are right, we will come again, in a month at the latest, and ask your master to prepare the money. Tell your master, if the money is not enough, grain, iron ingots, cloth, horses, etc. can be used to trade in the price , we are very fair and will calculate based on the market price.”

After the two talked for a few more words, Liu Xinqi arranged for someone to take him to see Wang Hao and then send him off the boat.

……

August [-]st, the last day of the auction.

The number of Korean merchants who came today was the largest number in the past six days. There was no room for them to stand on the deck of the Qizhou, so they had to tie the Weizhou and Qizhou together and put some people on the deck of the Weizhou.

Only [-]% of the goods originally planned to be sold in Goryeo were left. Liu Xinqi increased the quantity of each group again, and all [-]% of the goods were auctioned in more than an hour.

Just when these businessmen thought the auction was about to end, Liu Xinqi walked up.

"I have told everyone before that we use auctions to select fixed trading partners in the future."

Liu Xinqi spoke in Chinese while Cui Wu translated in Korean.

"Now we start the last item of the auction, the futures contract auction."

After Liu Xinqi finished speaking, the businessmen below were confused and didn't know what this "futures contract" was.

Liu Xinqi held up a few pieces of paper and explained to the Korean businessmen below:

"There is a contract here that stipulates that within seven days after one month, the merchants who signed the contract with our Xinghan League must provide us with three thousand shi of grain at a price of one tael of silver and three shi. Regardless of whether the price of food rises or falls after one month , all must be performed in accordance with the contract price and the transaction completed.”

"As a guarantee, Xinghan League will first pay a deposit of 200 taels to the contracted merchant, and then make up the remaining [-]% of the payment upon delivery. If we, Xinghan League, decide not to perform the contract after one month, we will not require the contracted merchant to return the money. Deposit. If the contracted merchant decides not to fulfill the contract after one month, he or she will need to return double the deposit to us."

"I can tell you in advance that this is a means for our Xinghan League to select reputable businessmen. This contract will not be guaranteed by the Goryeo government, the Zhao government or any other third party, and it will all be fulfilled voluntarily based on the credibility of both of us. "Now whoever has questions can ask questions."

As soon as he finished speaking, a businessman asked: "What about the delivery method? If we are asked to transport the grain to Zhao, wouldn't we lose our lives?"

Liu Xinqi replied:
"That's a good question. The delivery location is in Kaijing West Port. We, Xinghan Alliance, will ship it out one month later and within seven days as stipulated in the contract. In other words, the businessman who signed the contract only needs to rent a warehouse in Kaijing West Port , put two thousand stones of grain, and a month later we will come over and load it on the ship ourselves. As long as the grain leaves the contracted merchant's warehouse, the transaction will be considered complete."

Someone else asked:
"Can any food be used?"

Liu Xinqi replied: "As for the type and quality of grain, there are detailed provisions in the contract. If the grain provided by the contracted merchant does not meet the contract provisions, such as high impurity content, excessive moisture, old grain, bad grain, etc., it will be regarded as If the contracted merchant breaches the contract, twice the deposit must be returned.”

"If I signed a contract with you and something suddenly happens on my side, can I transfer this contract to someone else to complete the transaction stipulated in the contract with you?"

Liu Xinqi looked at the businessman who asked the question. He was the businessman from the Wang family who had talked with him yesterday.

This question is quite profound when asked in this era, and the person who can ask this question is also quite business-savvy.

If futures contracts could be traded, they would be no different from the "futures" of later generations.

"Yes, our ultimate goal is to use money to buy the goods we need. For us, it doesn't matter who delivers the goods as long as the quality of the goods is good." Liu Xinqi replied.

After that, several people asked some minor questions. Liu Xinqi answered them all one by one, and then read the futures contract to everyone.

"Now we start to auction this contract. The contract stipulates that within seven days of one month, Party B must provide Party A with three thousand shi of standard rice. The contract price is 1000 taels of silver. The starting price is 1000 taels of silver, and each price reduction must not be less than ten two."

1000 taels of silver is the retail price on the market. Anyone who buys the contract at this price will definitely make a fortune.

"900 taels!" The merchant from the Wang family directly lowered the price by [-]%.

Before anyone at the scene could react, no one shouted the price for a while.

After Liu Xinqi confirmed it three times, the first contract was sold at a price of 900 taels.

"Please come up to the stage and sign the contract in two copies, one for you and one for us." Liu Xinqi invited him.

After the Wang family came to power, they were led aside to sign a contract. Liu Xinqi once again took out a contract:
"This is an iron ingot contract. The contract stipulates that within seven days after two months, Party B must provide Party A with 1000 kilograms of pig iron ingots containing more than 1000% iron. The contract price is [-] taels of silver. The starting price is [-] taels of silver. , each price reduction shall not be less than ten taels.”

By this time, all the merchants at the venue had reacted, but there were only three merchants capable of providing pig iron ingots. The three stopped after less than two rounds of shouting, and the contract price was finally fixed at 950 taels.

(End of this chapter)