Rebirth 2004: I can make money by writing

The next day, Hao Qiang arrived at the Gangcheng branch of Guosen Securities.

General Manager Huang Qi personally greeted him. After a brief exchange of greetings, they entered Huang Qi’s office and went straight to the point.

“What is the current exchange rate of USD to RMB?” Hao Qiang asked directly.

Huang Qi replied: “The central parity rate of the Y Bank is 1 USD = 6.8376 RMB. We helped you get it. The handling fee is 0.05%. In May, the average exchange rate was 6.97. The RMB appreciated very fast. This is a good thing for you.”

“As long as it is stable.” Hao Qiang nodded.

He calculated in his mind that the handling fee alone would be 6 million RMB for the 12 billion RMB to be exchanged, but it was still within an acceptable range.

The 2 billion RMB more than planned was what Hao Qiang had recently earned from Tengxun shares, and he still had some shares left to sell.

After the greetings, Hao Qiang went to meet his financial team.

This team has been responsible for helping him handle domestic stock business. It consists of 15 people: 1 investment manager, 1 operations manager, 2 investment analysts, 6 mid- and senior-level traders, 1 senior risk analyst, 1 fund management specialist, 1 compliance manager, 1 legal specialist and 1 compliance analyst.

Among them, 3 people were recruited by Hao Qiang from outside, and the remaining 12 people came from Guosen Securities and supervised each other.

People in this industry are very rich. Hao Qiang has a large amount of funds and high returns, so their bonuses are very generous.

Of course, this line of work is also risky.

If someone leaks secrets and causes serious consequences, he may face three to seven years in prison, a fine, and lose his qualification to work for life.

For this reason, before each operation, the investment manager and the operations manager will solemnly reiterate the confidentiality regulations.

Guosen Securities Gangcheng Branch has allocated an independent operation room specifically for Hao Qiang’s team.

Except for project team members, no one, including General Manager Huang Qi, is allowed to enter.

After Hao Qiang arrived, the four accompanying bodyguards immediately took their positions outside the door and were ready for battle.

When Hao Qiang entered the operation room, the team members stood up to greet him.

“Mr. Hao, you are here!”

“Hello, Mr. Hao!”

After the greetings, Hao Qiang signaled everyone to gather.

After everyone lined up neatly, he looked around and said sternly:

“Hello everyone, let me make it clear that I am very strict about confidentiality. If there is a leak, I will not be polite.

Of course, if the profit meets my expectations, I will also reward everyone extra.

The specific confidentiality regulations must have been explained in detail by Manager Zhang.

I emphasize again: During the operation, it is strictly forbidden to contact the outside world, and information must not be disclosed to any organization or individual…”

“Understood, no problem!” Everyone answered in unison.

In this industry, confidentiality is the lifeline.

They know very well that during the operation of large amounts of funds, they may have to eat and live in the operation room, completely isolated from the outside world.

But the generous rewards are enough to make up for these inconveniences.

If you are lucky, one project can achieve financial freedom.

After Hao Qiang sat down, Manager Zhang handed over a document: “Mr. Hao, we have contacted more than a dozen securities firms in the United States. This is a list of listed companies that can borrow securities and are large in scale, as well as American companies that are ready to borrow securities.”

“Well, I’ll take a look first.”

Hao Qiang nodded. He did not disclose the specific operation plan, including when to start borrowing securities and which stocks to short.

In fact, he has limited knowledge of US stocks. He only knows that most stocks have suffered heavy losses, especially Fannie Mae and Freddie Mac, which triggered the subprime mortgage crisis. The decline is close to 100%, and the stocks are almost worthless.

In theory, shorting these two companies is the most ideal.

But Hao Qiang decided to act cautiously and avoid too concentrated operations.

Although he will not go to the United States in the future, he should be careful to avoid attracting the attention of the US authorities and finally causing trouble for him.

In addition to Fannie Mae and Freddie Mac, Hao Qiang could also guess that bank stocks would plummet, such as Huaqi Group, Bank of America, Morgan Stanley, etc.

He scanned the information, which listed the closing prices of various stocks yesterday:

Fannie Mae $46.5, Freddie Mac $53.3, Huaqi Group $21.5, Bank of America $23.6, Morgan Stanley $35.6, Pingguo $167.5…

The market value of these stocks generally exceeds $100 billion, and the trading is extremely active with sufficient liquidity.

Hao Qiang holds $1.75 billion and plans to take out $1.5 billion for leveraged securities lending, that is, margin, and another $250 million for covering positions at any time.

With a leveraged securities lending of $1.5 billion, the maximum current value of stocks that can be borrowed from US securities firms is $7.5 billion.

With margin, the actual operating funds amount to $9 billion. (The margin is also placed with the brokerage firm and can be used to buy stocks or short sell, but there is a conversion rate and the calculation is complicated)

It is still two months before the financial crisis, but now we can operate slowly.

The amount of funds is large, and the selling of stocks depends on the situation. It is expected to take three or four weeks.

In addition, if those brokerage firms see that the situation is not good, they will definitely not be willing to short sell. Hao Qiang has money but cannot short sell, and cannot borrow.

Short selling is originally a bet with brokerage firms.

Hao Qiang is bearish, and brokerage firms are bullish.

It is worth mentioning that the term of margin trading is generally 6 months, and you can apply for an extension one week in advance after the expiration.

In other words, if you operate in June, you will have to extend the period (return the stocks) around December this year.

At the time of short selling,

The specific use of the funds obtained from the short selling of stocks may be subject to the regulations and restrictions of the brokerage firm. Investors need to comply with relevant regulations and procedures when using these funds. That is, after Hao Qiang sells the stocks that he short sells, these funds cannot be withdrawn from the brokerage firm and are controlled.

Therefore, he was still a little worried. Even if he made money, if he couldn’t get it back, he would lose hundreds of billions of yuan.

He couldn’t be happy too early because the money hadn’t been transferred to China and hadn’t been received.

After reading the information, Hao Qiang took a piece of paper and wrote down the Chinese and English names of Fannie Mae, Freddie Mac, Huaqi Group, Bank of America, Morgan Stanley and Pingguo, and said to Manager Zhang solemnly:

“Short-lending these six stocks, Pingguo for $500 million, the other five stocks for $1 billion to $2 billion, the term is 6 months, try to complete the stock selling within one month, starting today.”

Manager Zhang was stunned for a moment, a little surprised, but he didn’t ask more questions, but repeated it again for Hao Qiang to confirm.

“Yes, that’s right.” Hao Qiang nodded in confirmation and reminded, “Securities lending companies on the list are all fine, but try to avoid those with big connections to banking institutions. Give priority to brokers with good reputations and disperse securities lending. After all, we have a lot of funds.”

“Of course, any broker on the list is fine.” Manager Zhang replied, “Mr. Hao, try to complete securities lending within these two weeks. If you sell stocks, try to control it within one month. What do you think?”

“Okay.” Hao Qiang nodded in agreement. Securities lending takes a long time.

He didn’t know how to do it specifically, but he just needed to borrow it.

It’s difficult for individuals to lend securities, and they rely on Guosen Securities.

Manager Zhang nodded solemnly, and then went to issue the task.

Hao Qiang watched how they operated on the spot. When he was really bored, he found a computer and read about US stocks.

The storm is coming!