The Rebirth of the Financial Hegemon

Stupid?

From George King's point of view, it's really stupid.

as a top banker.

George King is naturally proficient in economics, finance, and transactions and other related things.

Whether it is securities, futures including resources and so on.

There will be some kind of regularity in its price rise and fall.

This rule can be called a trend.

The formation of trends is caused by a combination of various reasons.

In other words, the formation of a trend does not happen overnight.

In the same way, when a trend comes to an end, it does not collapse in a day.

In terms of probability and statistics.

in an uptrend.

The probability of reaching the highest one is very low.

If you count 365 days in a year, there is only one maximum in that year.

If you do statistics in ten years, then the probability is one in 3650.

Real estate activity is a cycle of decades.

Then the probability of the price becoming the highest is 1 in 10,000.

This is the simplest math problem.

But it is because of simplicity.

Simple enough whether it is the securities market, the futures market, or the material and real estate markets.

There will always be people who think they can sell the highest or buy the lowest.

Every year, every day.

In a falling market, there are always countless smart people who choose to buy, and in a rising market, there are always countless smart people who choose to sell.

This is the wisdom of human beings, the more simple things are, the more complicated they will be.

In this regard, George King has seen too much.

Zhao Jiangchuan knew George King's thoughts.

So he was satisfied with George King's reaction.

If the bankers thought he was too smart, he could go out.

No one is going to do a business they know will lose money.

Zhao Jiangchuan raised his eyelids slightly.

He was nonchalant.

"I only care about the solvency of your banks when the house price index falls."

What?

Solvency!

This is Standard Chartered.

One of the most well-known banks in the world and one of the Hong Kong dollar issuing banks.

You already look stupid in the real estate market, big brother, and you still suspect that we will default on our debts? !

At this moment, George King was suspicious.

How does such a stupid guy make so much money.

Zhao Jiangchuan's arrogant tone and attitude made George Jin roll his eyes with disgust.

It's like, a writer called the starting point of the fishbone card arrived, and went to the largest bank in the universe to deposit the current month's brick-moving money into the card.

Then the guy asked the teller.

I'm worried that one day your bank will fail and I won't be able to get my money out.

What will you pay me for?

And at this time, George King was obviously the bank teller.

But soon George King was relieved.

George King knew that Zhao Jiangchuan was a mainlander.

Over the years, mainland officials have flowed out of funds through their banks, so much that he, the person in charge, does not know how much.

Those Chinese officials who ride bicycles and wear patched clothes have a wealth that surprises him, the head of Standard Chartered Bank.

What a bunch of idiots who haven't seen the world.

Arrogant, arrogant, arrogant.

This is George King's final evaluation of Zhao Jiangchuan.

That casual questioning made George King feel that Zhao Jiangchuan was an idiot.

Zhang Xiaolei on the side couldn't stand it any longer.

She felt that Zhao Jiangchuan was simply insulting the IQ of the Chinese people.

As a staff member of the investment department of the bank.

Even if Zhang Xiaolei has only been employed for more than two years, with the professional knowledge she has studied hard, she knows how stupid it is to be short on Southeast Asian real estate now.

What's even more ridiculous is that Zhao Jiangchuan actually thinks that Standard Chartered can't afford to lose money.

This made Zhang Xiaolei have to suspect that Zhao Jiangchuan's brain had been kicked by a donkey.

Under the eyes of George King, Zhang Xiaolei forcibly endured the expression of disgust, lowered her head and asked with a frown.

"Mr. Zhao, I'm sorry, are you serious?"

"Do you think I'm joking? I'm sorry, my time is precious. If I have this time, I might as well go out and pick up more girls."

"…"

George King and Zhang Xiaolei looked at each other.

In those eyes, a signal was conveyed at the same time.

The guy in front of him is an arrogant idiot.

I have to say that Standard Chartered is still very professional. In the face of business that came to us, George King showed the professionalism that he should have as a banker.

"Zhao, we will customize a pay-as-you-go compensation method for you, but the condition is that when the real estate index rises, you have to pay the corresponding premium of Standard Chartered every month."

"This is as it should be, but for ease of settlement, I recommend that the underlying be valued in U.S. dollars and settled in U.S. dollars."

The US dollar, as the international unified unit of settlement.

It is undoubtedly the most suitable for this kind of cross-border investment agreement. Whether it is valuation or settlement, it is most convenient to use US dollars as the unit.

From George King's standpoint, this is a sure-fire deal.

He spoke without thinking.

"as you wish!"

In George King's answer, Zhao Jiangchuan casually threw out a stack of insurance contract texts that he had prepared a long time ago.

"This is my initial customized contract, you can see if there are any problems."

The contract was made by Zhao Jiangchuan long ago. In addition to the various clauses of the VAM agreement, professional lawyers have also considered the scope of legal support for various clauses.

According to the contract model given by Zhao Jiangchuan.

The two parties take the high-quality houses and comprehensive houses in Bangkok, Thailand as the subject matter, and make a standard price index contract based on this subject matter.

Then use the ups and downs of index contracts to trade credit default swaps.

The valuation of the subject matter is calculated in US dollars.

Of course, the settlement is also in US dollars.

When house values ​​(not prices) continued to rise, Zhao Jiangchuan's Jushi Capital had to pay Standard Chartered a monthly premium that could fulfill the contract.

When the housing index continued to fall, the bank had to pay Boulder Capital insurance premiums.

Kind of like an insurance contract that preserves the value of your property.

For example, to buy a life insurance or vehicle insurance for a friend, but the beneficiary is the policyholder.

Also somewhat similar to a home option contract.

The contract text given by Zhao Jiangchuan is equivalent to buying a value-preserving insurance for the house price in Bangkok.

If the value of the home goes up, the premiums he pays will go to waste.

Zhao Jiangchuan can only benefit from this when the value of the house declines.

This contract is similar to an insurance contract in that the bank assumes the responsibility of performing the contract similar to that of an insurance company.

Regular life insurance contracts.

The maximum compensation amount is calculated based on the amount of the insured's payment and the insurance period.

If the insured suffers an accident in the middle of the contract, the insurance company will pay according to the terms of the contract.

However, if the insured does not have any accident in the middle, then the annual premium of the insured will be paid in vain.

It can be said that in a life insurance policy, the insured is the subject matter.

After the performance of the contract is completed, no matter how much the insured pays the premium, as long as the insured has no accident in the contract, the premium is completely owned by the insurance company.

The insurance payout ratio is one of the important parameters in an insurance policy.

The contract text given by Zhao Jiangchuan naturally also has this kind of compensation ratio parameter.

For a contract worth 100 million yuan in compensation, Zhao Jiangchuan needs to pay 1% of the premium every year.

That is to say, if Zhao Jiangchuan buys a USD 5 million credit default swap, he needs to pay an annual premium of USD 1 million.

If the price of the home goes up or is higher than it was when he bought the contract, he will lose a million dollars in vain.

Only when the price of the house is lower than the value of the object he purchased can he get the compensation from Standard Chartered.

And this amount of compensation is calculated based on the loss value of the property insured by Zhao Jiangchuan.

For example, the average price of real estate in Bangkok is US$1,000 per square meter.

Then, as long as the real estate value in Bangkok is higher than or equal to 1,000 US dollars, Zhao Jiangchuan will lose 1 million US dollars by purchasing a credit default swap of 1 million US dollars.

Only when the average property price in Bangkok is less than $1,000 can he be paid by Standard Chartered.

This amount of compensation depends on the factual index of Bangkok's house price when Zhao Jiangchuan redeemed the contract.

If it is 990 US dollars, Zhao Jiangchuan can get the compensation amount from Standard Chartered.

The admiration amount is calculated as ten dollars multiplied by five hundred percent.

Under the arrangement of George King, the Legal Department of Standard Chartered and other departments reviewed the contract on the spot.

After a cross-review determined that there were no issues with the contract.

George Jinqiang gritted his teeth and endured ecstasy, and several other bank staff present also forced a serious look.

However, the twitching muscles on their faces showed their hearts.

Especially Zhang Xiaolei, she had to secretly pinched the muscles in her thighs to restrain the urge to laugh.

This is a money-losing deal.

According to the contract given by Zhao Jiangchuan, Standard Chartered has almost no possibility of loss.

Southeast Asian countries are now in a period of rapid development. During the economic take-off, real estate prices will only go up all the way.

Especially Thailand.

As the first of the four tigers, countless speculative capital and value-preserving capital have flowed into Thailand.

The Thai baht is rising passively, and Thailand's economy is also prosperous.

Whether in industry or finance, Thailand is now almost comparable to Hong Kong.

In this case, the credit default swap purchased by Zhao Jiangchuan has no possibility of making money at all.

Are all Chinese people like Zhao so rich and stupid?

George King couldn't help but wonder.

But George King is the supreme commander of Standard Chartered.

After resisting the urge to laugh, he said.

"Zhao, we can sell you a ten million dollar credit default swap."

Ten million?

Zhao Jiangchuan felt humiliated.

This is so disrespectful.

Zhao Jiangchuan raised his eyebrows helplessly, and he asked in embarrassment.

"Can you sell me $200 million?"

"Ha ha…."

Everyone present at Standard Chartered burst into laughter after forcibly controlling their facial muscles to no avail.

Ten million dollars.

All the staff of Standard Chartered felt that George King was a lion.

Even George King himself felt that he was already black enough.

This is the money that the pie from the sky has brought to the door, and it is only necessary to reach out and receive it.

But now, Zhao Jiangchuan actually said that he wanted to buy 200 million US dollars.

Two hundred million dollars.

Standard Chartered's entire region ~www.readwn.com~ does not have so much net profit for one year.

As long as real estate prices in Thailand keep rising, or even do not need to rise, Zhao Jiangchuan has to pay Standard Chartered $200 million in premiums every year.

This is literally tons of gold falling from the sky, waiting for the **** to go to sleep.

Are all Chinese people stupid with lots of money?

Such a lunatic please give me two dozen more!

Everyone at Standard Chartered was almost crazy.

This kind of good thing can actually happen to them.

George King managed to control the muscles on his face.

He stood up and shook hands with Zhao Jiangchuan.

"Zhao, you are the most honored customer of our bank, and your request will definitely be as you wish."

(=)