Chapter 528: 80 billion short selling!
Don’t think that the hundreds of millions of dollars of funds held by Chen Yan and Zhang Yonghao are a small amount in the huge crude oil trading market.
You should know that crude oil futures can be leveraged.
Especially in Hong Kong, the maximum increase can be up to 14 times just in the exchange.
Therefore, even if the combined funds of the two were only 500 million, they were able to leverage a total of more than 5 billion in funds.
This amount of funds can actually cause certain market fluctuations when crude oil prices do not fluctuate much.
Especially since Chen Yan and his team are shorting, they are crashing the market, and it is possible that the market will fall in an arc.
Therefore, people from major financial companies in Hong Kong have all been curiously watching the crude oil market and trading volume these days.
As a result, I don’t know whether some international financial giants are operating in the opposite direction, or whether the market is really optimistic about the recent price of crude oil.
Anyway, Chen Yan and Zhang Yonghao threw in billions of funds (including leverage), but not even a splash was made.
For a while, the entire financial circle in Hong Kong found the matter interesting.
They speculate that there are probably two forces in the market now, engaging in a fierce game over crude oil.
Some forces believe that crude oil will rise, while others believe that crude oil will fall.
Chen Yan is bearish on crude oil and is on the short side.
The other side is bullish on crude oil and is the bullish side.
However, now the bulls have an absolute advantage.
Chen Yan was already an investor with a certain amount of capital, but he was unable to fight back against the other party.
The financial circle is the bloodiest and most bloodthirsty.
Originally, they just wanted to follow Chen Yan and pick up some bargains, but now they are starting to think about whether they can get a piece of the pie.
So here comes the question.
Now, the two forces are fighting. Will they divide Chen Yan's body or the other party's body...
While most people in Hong Kong's financial circle were still hesitating, some radical small financial companies were the first to enter the market.
Perhaps it was because of their blind trust in Chen Yan that they followed Chen Yan without hesitation and joined the short position.
Batches of crude oil futures were loaned out from major exchanges and then dumped onto the market.
The entry of new forces has brought new changes to the stalemated crude oil market.
The price of crude oil fell in response and soon fell to the level where Chen Yan and his team were selling.
Seeing this, Zhang Yonghao opened two bottles of champagne in a row, wanting to celebrate this temporary victory.
As a result, at this time, the first OPEC meeting officially began.
Before the closed-door meeting, a spokesman for the OPEC oil alliance acknowledged at a press conference that the purpose of the meeting was to discuss oil production cuts and price increases.
As soon as this news came out, crude oil prices started to rise like crazy, as if they were on a helicopter.
Not only did it directly surpass the short selling lines of Chen Yan and Zhang Yonghao, but it also directly surpassed the short selling lines of those small financial institutions and continued to soar.
This sudden change in the situation made all the "efforts" Chen Yan had made during this period come to naught...
…
Qindao, Chenyu Game Company, Chen Yan was signing the distribution agreement for the new game while talking on the phone with Zhang Yonghao.
Zhang Yonghao's voice on the other end of the phone did not change much, he was still cheerful and outgoing, but his inner worries could be heard from the content of the conversation.
"Mr. Chen, I think our Martingale winning method is still very effective."
"Look at these times of adding and building positions. Not only have our costs been spread out, but once the bulls and bears reverse, the returns will also be very substantial."
Chen Yan knows nothing about finance.
So I could only perfunctorily say “Yeah, yeah” while saying, “You’re right. So don’t worry. Just do as I say, and you’ll definitely make money.”
Hearing Chen Yan's words, Zhang Yonghao laughed and said, "I'm not worried. I'm not worried at all."
"I still have great trust in Mr. Chen."
"I'm just worried that you're under too much pressure."
Chen Yan smiled and said, "I don't feel much pressure. I have always been confident in investing."
Hearing Chen Yan's words, Zhang Yonghao couldn't help but ask, "Mr. Chen, do you have any inside information?"
After that, he denied it himself, "That shouldn't be the case, right? The one who influenced the oil price this time was OPEC. That is a joint organization of major oil-producing countries. How do we get the news?"
Chen Yan affirmed, "Yes. There will be no news leaking out of this kind."
"After all, it's useless even if it's leaked."
"In OPEC, each country has an equal status. Even if you know the plans and ideas of a certain country, there is no way to guarantee that other countries have the same ideas as it."
After listening to Chen Yan's words, Zhang Yonghao was silent for a moment.
Then he laughed and said, "Yes. So, I can only rely on Mr. Chen's vision."
Chen Yan was busy, so he could only perfunctorily say "hmm" and said, "Just follow me and there will be no problem."
Then, the two of them chatted for a few more sentences before hanging up the phone.
After hanging up the phone, Chen Yan put the phone aside and shook his head silently.
Zhang Yonghao said he was not worried and didn't care.
But in fact... ever since OPEC released the news two or three times in succession, he has become a little restless, and he would find an excuse to call Chen Yan whenever he had nothing to do.
Sometimes we talk about Chen Yan, sometimes we talk about Chen Yan’s companies, and sometimes we talk about the current situation of Toutiao Technology.
Thanks to his regular reports, Chen Yan now has a better understanding of the situation of Toutiao Technology.
Every time Chen Yan received news, he would send a copy to Qin Ming so that he could take over Toutiao Technology more conveniently in the future.
There was a reason why Zhang Yonghao was so restless.
Because after the fourth and fifth times of adding positions, the two added positions twice in a row during this wave of rising crude oil prices.
Because the amount doubles each time.
Therefore, the cumulative funds purchased by the two for shorting crude oil have reached an astonishing 1.27 billion and 63.5 billion.
It accounts for one seventh of the total funds.
Moreover, due to leverage issues, one or two hundred million of the early funds have already been liquidated, and the losses can only be made up by waiting for this part of the positions to make money in the future.
This is also the reason why Zhang Yonghao has been restless recently.
The loss of hundreds of millions of funds has already made him, who is short of cash, feel extremely painful.
However, compared to Zhang Yonghao's fear, Chen Yan didn't care at all.
Because these are all included in the operation records provided by the system.
Even though Chen Yan didn't understand finance, he could roughly calculate what would happen in the future based on the operation records provided by the system...
Moreover, comparing the current development of things, Chen Yan seemed to understand why the system made him build a position early and then exploded:
This is a...bait.
Moreover, it is not directed at Zhang Yonghao.
It’s aimed at the Hong Kong financial circle…
…
At this time, Tiandu.
The chairman’s office of Toutiao Technology.
Zhang Yonghao sat at the head of the group, smoking one cigarette after another.
Sitting opposite him were Vice President Wang and the Financial Director.
At this moment, these two people also had worried expressions like him.
After finishing a cigarette, Zhang Yonghao pressed the cigarette butt into the ashtray and said, "Chen Yan said that we should wait patiently and not be impatient."
The CFO and Vice President Wang looked at each other, not knowing what to say.
You've already lost hundreds of millions, why are you not in a hurry?
They are not as rich as Chen Yan...
At this moment, Zhang Yonghao was obviously in a very troubled mood. He knitted his eyebrows together and asked, "Please help me think about this."
"The difference in funding between us and Chen Yan is one. So as long as we buy half of what Chen Yan does, with the same proportion, then there will be no risk of us being left behind by him, right?"
The CFO pondered for a moment and said, "Yes. As long as we strictly follow the ratio, if we go bankrupt, he will definitely go bankrupt."
Zhang Yonghao asked again, "Is it possible that he transferred funds from other places to make our positions go bankrupt, while he himself survived safely?"
Vice President Wang coughed and said, "I have a few questions."
"1...According to our contract, his behavior is not allowed. If he does this, we can completely cancel the contract."
"2... He's withdrawing funds to increase the margin, so we can actually do that. For the most part, we'll just continue to pledge our shares."
"3. And the most important thing. His nickname is just the Eastern Buffett, not the real Buffett."
"Even if it's the real Buffett, the futures market is completed in an instant. There is no way to accurately control the rise and fall of a few points, so that we will be liquidated and then he will make money."
"Then he's not Buffett, he's the stock god!"
After listening to the analysis of his two subordinates, Zhang Yonghao slowly breathed a sigh of relief.
Although he has the genes of an adventurer in his bones, this gamble of tens of billions still makes him a little exhausted physically and mentally.
Moreover, these shares and money are the foundation of his life after all, so he cannot help but be cautious...
…
A week passed in the blink of an eye.
With the convening of the OPEC meeting, the price of crude oil has been fluctuating and changing constantly.
After the OPEC spokesman's speech, crude oil prices, which had skyrocketed, began to fall due to the failure of negotiations at the first OPEC meeting.
Although the market still has high expectations for crude oil production cuts and price increases, it feels that this will not happen immediately.
After all, various conferences in Europe and the United States are themselves conferences for bickering.
This went on for weeks.
Of course, because OPEC has been sending strong signals to the outside world, the market has been optimistic about the future price of crude oil.
After all, although various conferences in Europe and the United States are full of wrangling, no matter what, these participants are a community of interests and will eventually reach an agreement.
Therefore, after "judging" the trend, some financial institutions around the world began to gradually build up crude oil positions at low levels and joined the bulls.
Among them, the financial circle in Hong Kong City was relatively calm. After all, Chen Yan's undefeated myth in Hong Kong City was still very scary.
However, opportunities always come to those who are prepared.
Then, two days later, the third OPEC meeting was held.
After the meeting this time, representatives from many countries sent signals to the outside world, saying that the discussions had made significant progress and that everyone had reached a preliminary consensus on the same decision.
As soon as these signals were released, crude oil futures prices skyrocketed again.
Chen Yan and Zhang Yonghao’s third and fourth rounds of replenishment were directly blown up.
Therefore, they had to continue to increase their short positions at high levels as originally planned.
As of this round, the cumulative amount of short positions purchased by the two has reached a terrifying 2.55 billion and 1.275 billion.
The financial pressure on the two is already very great. They can only afford to double their positions once more before they reach the risk value. They can only increase the margin but cannot double their positions again.
Moreover, their losses also expanded to four or five hundred million.
This made Zhang Yonghao feel uneasy again.
Several calls were made to Chen Yan every day to inquire about the situation.
And Chen Yan just comforted him, "Don't be anxious, don't be anxious"...
Things really turned out just as Chen Yan had expected. After the third OPEC meeting, the fourth meeting was delayed.
For a time, many rumors began to spread secretly.
What "representatives of several countries did not reach a consensus."
"The opinion of several countries is to increase oil production and suppress prices."
The most bizarre one was that "representatives from several countries got into a fistfight at a meeting. One representative tried to stop the fight but accidentally tripped and fell, breaking his head and bleeding."
Um……
How to say it.
Chen Yan felt that the third one was the most realistic.
After all, these barbarians in Europe and the United States have a tradition of fighting in meetings.
As the gossip was released, the price of crude oil began to fall steadily. In the world crude oil futures market, the long side suddenly suffered widespread grief.
Chen Yan, who was eating melon while taking the "open-book exam", is now gradually figuring out the meaning of it.
This is not a game of long or short.
Why do I feel like there is an invisible big hand in the market, which cuts the long sides first and then the short sides, and then cuts the long sides again.
It's completely like playing with both the bulls and the bears.
Chen Yan felt that this matter was somewhat interesting.
Especially combined with the operation records provided by the system, Chen Yan always felt that this incident might go down in history.
The facts were not beyond Chen Yan's expectations.
After this short-selling rumor was released, OPEC's fifth meeting was successfully held.
At this meeting, several OPEC member countries reached an agreement to cut production.
And passed a proposal to cut production by an additional 1.5 million barrels per day.
In this era of increasing crude oil consumption, the sudden further reduction in crude oil supply immediately caused a violent reaction in the crude oil futures market.
On that day, crude oil futures rose sharply.
Chen Yan and Zhang Yonghao replenished their margin and continued to increase their positions, thus avoiding a complete account liquidation.
But because of this, more than half of the 8 billion and 4 billion in cash they hold have been invested in the market.
Chen Yan invested 6.2 billion and lost 1.5 billion.
Zhang Yonghao invested 3.1 billion and lost 750 million.
It can be said that all of them suffered heavy losses.
And that's fine. Because of the unexpected production cuts at the OPEC meeting, crude oil prices still have room to rise further.
At this time, the major financial companies in Hong Kong, which had been waiting for more than a month, finally could no longer suppress their greed.
They had seen all of Chen Yan and Zhang Yonghao's plans during this period.
The two men invested nearly 10 billion yuan in shorting crude oil futures, and with leverage, it was close to 80 billion yuan.
Because of the high leverage ratio, the financial accounts of Chen Yan and his partner are extremely dangerous.
As long as these financial companies can work together to push up the price of crude oil futures, the financial accounts of Chen Yan and his partner will soon be blown up.
At that time, Chen Yan and Zhang Yonghao's short positions will be forced to close, and they will be forced to go long instead of short.
More than 80 billion short orders were liquidated in an instant!
How high will this push crude oil futures prices!
How much money can these financial companies in port cities make!
If there is a 50% profit, capital is willing to take risks; if there is a 100% profit, capital will dare to commit any crime!
And this benefit is more than 50%, 100%.
In addition, now that the OPEC meeting has concluded successfully, the trend of crude oil prices has been determined. There is almost no risk.
Therefore, the financial companies in Hong Kong went crazy. Although the price of crude oil futures was obviously very high, they started to go long crazily as if taking turns.
At this time, in addition to the financial companies in Gangcheng going crazy, Zhang Yonghao also went crazy.
He called Chen Yan one after another, loudly asking what was going on!
At first, Chen Yan just wanted to be perfunctory.
As a result, at this moment, a mysterious guidance emerged in his heart, which made him turn on the call recording and reply to Zhang Yonghao very formally.
Understanding that this was the instruction from the [Forced Purchase Card], Chen Yan immediately did as he was told.
He turned on the call recording function on his phone, and then said to Zhang Yonghao, "Mr. Zhang, don't worry."
"Most of our funds are still in the account , we just need to pay the margin."
"I have calculated the price of crude oil futures. I think as long as we continue to invest our current money into the account, we will be able to hold on until the crude oil futures plummet."
Zhang Yonghao's voice became hoarse after hearing Chen Yan's words. He yelled, "You lunatic! Do you know how much money we have invested in it? More than 10 billion!"
"You still want to continue gambling!"
After hearing Zhang Yonghao's words, Chen Yan said calmly, "Mr. Zhang, since you have chosen to trade futures with me, you should trust me."
“My nose for the financial markets is absolutely sharp.”
"I believe my judgment on the trend of crude oil futures is correct."
"You should trust me too."
Hearing Chen Yan's words, Zhang Yonghao kept muttering, "Crazy, crazy, really crazy."
After saying that, he hung up the phone.
At the same time, Qindao, Qindong, Tiandu, and other major wealthy circles.
The news that Chen Yan and Zhang Yonghao were about to go bankrupt after gambling hundreds of billions on crude oil futures became a hot topic along with the encirclement and suppression in Gangcheng.
Chen Yan himself is a newly-emerged wealthy man who has become famous in recent years. Various wealthy circles have been paying attention to him.
The same is true for Zhang Yonghao. Although he himself does not have that much money, because he holds the most promising company, he has the potential to help many wealthy people increase their assets again, and even double their value, so many people are also paying attention to him.
And now, the two of them were involved in a huge bet of tens of billions, and were about to go bankrupt, which immediately attracted everyone's special attention.
