Hong Kong: Starting with 10 billion

Chapter 51 The Feast Begins

1978 was a year full of chaos and hope.

This year,
A Soviet nuclear-powered spy satellite crashes over Canada.

Chaplin's coffin was stolen from the cemetery.

Italian Prime Minister kidnapped by terrorists.

Afghanistan's president killed in bloody coup.

Vietnam invades Cambodia.

The Islamic Revolution breaks out in Iran.

Also in this year,
The Chinese people started the reform and opening up.

From then on, the main axis of society shifted to stability and development.

As for Fang Hexuan,

1978 was the most important year for him to lay the foundation for his career.

In fact, since 1968, the international gold price has been on an upward trend until January 1980.

If Fang Hexuan gave up this once-in-a-lifetime opportunity,

He will regret it for the rest of his life.

In my previous life, I studied for an MBA at Cheung Kong Graduate School of Business in order to expand my network.

He heard from those who trade futures about the three major gold bull markets.
Many times, what is the international gold price in which year and month?
He can remember it clearly.

Moreover, professors in the college also like to analyze these classic market cases.

It’s hard to forget!
The gold bull market from 1978 to 1980,

Affected by many factors, multiple layers of buffs are superimposed.

As a result, the price of gold has not fluctuated significantly in more than a year.

The price upward trend is very obvious and strong.
This kind of market is very suitable for investment.

But this opportunity that comes only once in decades,
Almost no one can predict and catch it.

Unless it is the top financial institution, such as Wall Street in later generations,

Only then will it be possible to analyze the possibilities from the most core intelligence the government has.

That is to say, if there are no other reborn people,
Fang Hexuan may be the only person in the world who knows for sure that gold will rise sharply.

If God does not take it, he will suffer the consequences!
It is unjust not to invest in gold!

Although he had great ambitions, he was not sure whether the shipping magnate would help him.

After returning to Wanda from Global Shipping,

Fang Hexuan was thinking about it.

If Pao Yue-kong can't handle it,

How to convince Shen Bi of HSBC tomorrow.

In fact, he was thinking too complicatedly.

Invest 8 million of HSBC's funds in gold.
Even if the price of gold did not rise,

Judging from the overall trend over the past decade,

There will not be a sharp drop either.

Gold is bought.
As a globally recognized hedging asset,

There will always be a time when the price rises to a point where you can get out of the predicament.

If Shen Bi agreed to let him use 8 million to buy gold,

That must be done by the investment department under HSBC,
HSBC will not let this money flow out.

Since the Hong Kong government lifted gold controls in 1974,

Gold trading activities in Hong Kong have clearly prospered in recent years.

In addition, the issuance of banking licenses was liberalized in March this year.
After many foreign banks came in,
Gold futures trading services have also been launched.

HSBC is the de facto "central bank" of Hong Kong.
He holds a special place in the hearts of Hong Kong people.
Of course, we can't fall behind.

Therefore, Fang Hexuan traded gold futures through HSBC.
There were no procedural obstacles at all, except for Shen Bi's nod.

This time, the investment in gold required You Bingwen's assistance in signing a number of contracts.

So, this matter cannot be hidden from him.

Although I had already thought about his reaction in advance,
But You Bingwen's excitement still exceeded Fang Hexuan's expectations.

"You are throwing yourself into a fire pit. This is not how you do business. You don't consider the risks at all."

"Brother Wen, I've explained the reasoning. The upward trend of gold prices is already very obvious. Even if it falls in the end, the loss won't be that big."

"It's not like spending a huge amount of money to buy fake diamonds or fake antiques, which would result in a huge loss. But once you buy gold, it is real and cannot be faked. The risk is not as exaggerated as you think."

"But didn't you just say you wanted to increase leverage by 5 times?"

"That's no problem! Most of the time, the fluctuation will not exceed 20%, which will not cause a margin call. As for some dangerous times, I have my own way to deal with it."

"I still want to advise you to think it over carefully. It's not easy for you to get 8 million from HSBC."

"Thank you for your concern, Brother Wen. I have made my decision and will not change it."

"Don't worry, no matter how dumb or stupid I am, I will never put my life and the happiness of my mother and sister on the gambling table. I really have confidence!"

······
The next day was May 5th.

Fang Hexuan and You Bingwen came to HSBC together.

Shen Bi met him in person.
This was the first time the two met.

"Mr. Fang, I've almost got calluses from hearing Sir Bao praise you so much, and today I finally have the honor of meeting you."

"No way! Lord Bao is showing me kindness. I have been looking forward to meeting Mr. Shen for a long time, but I was delayed by some personal matters."

"To be honest, I have never seen a young man as bold and intelligent as Mr. Fang in Hong Kong. You were able to borrow 8 million from HSBC without any problems with the procedures. This is amazing!"

"Thank you, Chairman Shen. It is precisely because HSBC is professional and trustworthy that I dare to take this risky move."

"Before yesterday, I was always curious about how you would use the 8 million. I even thought of countless industries, but I still thought you were too timid."

"Chairman Shen, I'm not bold. This is completely different from blind investment. It's about trusting my own judgment and trustworthy intuition."

"Maybe. I hope you can make the right judgment so that HSBC can benefit from it."

"HSBC will definitely not be disappointed. I personally look forward to more cooperation with your bank in the future. I also firmly believe that such cooperation will bring huge benefits to both parties."

"As you wish! But if Mr. Bao hadn't called me yesterday to guarantee you, and if the underlying asset you were investing in wasn't gold, I would never have agreed to it."

"Thank you! Chairman Shen is an insider in the industry, so he certainly knows that the risks involved are controllable. I only invest with a 5x leverage, so overall there won't be much risk."

"I have submitted this investment case to the board of directors. You are lucky that the case was approved."

“Thank you for your advice and support.”

"I dare not take credit for it. You still have to thank Bao Sheng!"

"It should!"

"I shouldn't have said this to you, but Mr. Bao thinks highly of you. Maybe you really have qualities that he particularly admires, or maybe it was because you gave him 2000 million Wharf shares the first time. He just hopes that you can live up to his guarantee."

"Well, I won't let Bao Sheng and you down."

······
On the same day,

Fang Hexuan successfully signed a contract with HSBC.

Entrust HSBC to conduct gold futures trading.

Fang Hexuan used 8 million yuan of capital and 5 times leverage.
All of them hold a large position in gold contracts.

At this time, the international gold price was $172.7 per ounce.

In the massive pool of funds,

Even if 40 billion yuan was invested, it wouldn't make much of a splash.

In the end, the average purchase price of his gold investment was US$173.1 per ounce.

Fang Hexuan could finally breathe a sigh of relief.
The feast begins.
20 months later,

Let’s see what kind of fruits we harvest!
　Thanks to book friend 20170225002847983 for the recommendation vote!

(End of this chapter)