Reborn as a tycoon in Hong Kong

After leaving Fifth Avenue, Claude Rockefeller went to his father's home. Claure Rockefeller has already married and started a business. He and his wife and children also live in New York, and they do not live with the elderly.

Lawrence Rockefeller knew that Claure Rockefeller had gone to Lin Baicheng's place tonight, so he waited for him at home.

The family had nothing to be polite about, so the father and son went to the study to talk.

Claure: "Father, we asked Lin Baicheng. Lin Baicheng said that he wanted to take another look. He believes that the price of gold can reach a higher price."

"Did he say he would wait until a specific price to sell?" Lawrence asked.

Claure shook his head: "He didn't say that. He said that he couldn't predict the next trend of gold prices, but he thought that gold prices should still rise, so he wanted to wait and see. As for whether he really thought that, or was just like that. Just tell us, then we don’t know.”

"It's normal. He probably really can't tell where the gold price will go next, and it's normal for him to know and not tell you."

Lawrence was not surprised when he heard this. With the size of the gold futures market and the impact of news stimulation, even Wall Street, let alone Lin Baicheng, could not predict what the next high point of gold prices would be.

Claure said: "Lin Baicheng promised to notify us after selling his long orders, but this is meaningless to us."

"It really doesn't make sense."

Lawrence nodded in agreement. The top institutions on Wall Street have ways to monitor those accounts for the more than 2 billion US dollars in gold futures that Golden Fleece is operating. They will be able to find out once the other party starts selling, and there is no need to wait for Lin Baicheng to sell. Will let you know when it comes out.

"This time, Hutchison Whampoa's gold futures investment is bound to be profitable, and the profit is not small. Therefore, Hutchison Whampoa's stock can still be purchased, and its stock price will inevitably rise."

Lawrence said so and did the same thing. He did not use all the funds to make gold futures. He had to share the investment out of risk considerations. Nowadays, it is basically impossible for Hutchison Whampoa's investment to suffer losses, but to make huge profits, so naturally he can Use some of your funds to buy Hutchison Whampoa shares and make a fortune.

As for the fact that Hutchison Whampoa is a listed company in Xiangjiang, it doesn't matter to Lawrence at all. He just sends people to Xiangjiang to buy stocks, and by the way, he can set up a branch in Xiangjiang.

China in the East has decided to reform and open up. Although the two countries have different systems, a market as big as China is there. Lawrence feels it is necessary to place a chess piece in the bridgehead of Xiangjiang. As for whether to invest in China in the future, that will be discussed later.

"Hutchison Whampoa's stock price is now close to 110 Hong Kong dollars. The staff in Xiangjiang said that it is widely rumored that Hutchison Whampoa's investment is long gold futures. This investment has made huge profits following the surge in gold prices, so that Share prices have followed rising gold prices.”

Claure said that this matter was secretly arranged by Lin Baicheng. The rise in Hutchison Whampoa's stock price was exactly what he needed so that he could reduce his holdings at a high level and cash out.

"After calculation, Hutchison Whampoa's total market value has now exceeded 45 billion Hong Kong dollars, which is more than 10 billion U.S. dollars. However, the company's annual profit is probably less than 1 billion Hong Kong dollars. The company's price-to-earnings ratio is a bit too high."

Lawrence couldn't help shaking his head, and suddenly said: "I remember that Hutchison Whampoa was shorted several times after it was taken over by Lin Baicheng. Lin Baicheng won every time, and Hutchison Whampoa even made a lot of money following the repurchase. This time, if If Hutchison Whampoa's stock price rises a little bit, we can go short, but I want to see how Lin Baicheng is prepared to deal with it this time."

Claure said: "Although the revenue and profit of Hutchison Whampoa's operating business is not high, the company's net assets are not low. Today's net assets are probably more than HK$15 billion, close to HK$20 billion. Therefore, As long as Hutchison Whampoa's investments can bring huge returns to the company every time, I believe the market will have great confidence in the company's stock price, there will be a high premium rate, and it will be difficult for the stock price to fall too much."

"I know all this. If I were to go short, I would definitely wait until Hutchison Whampoa's current rise has almost reached a high point before going short. At that time, the stock price itself is expected to rise and fall back, and the success rate of short selling is very high. "

"Let's not talk about whether I want to go short when the time comes. Claure, do you believe that as Hutchison Whampoa's stock price rises, there will definitely be funds entering the market to short Hutchison Whampoa and play the game?"

Lawrence is very aware of the mentality of other institutions. The more Hutchison Whampoa's stock price rises, and as the stock price gets higher and higher, more and more funds will enter the market for short selling. No matter which stock it is, it is impossible to only rise and not fall. As the stock price continues to rise, the accumulated risks will become greater and greater, and the safety and success of short selling will become higher and higher.

Of course, shorting a large-cap stock like Hutchison Whampoa, which has a market value of more than 10 billion US dollars, is absolutely impossible without a large amount of funds.

If the amount of funds is too small, it will not be able to guide the trend of the stock price at all, and it will not make a splash if you throw it in. You can only rely on the stock price to adjust itself. In that case, you are not shorting but betting that the stock price will adjust.

The practice of large institutions is usually to use huge amounts of funds to sell stocks that are short-listed, suppress the rise in stock prices, and guide the stock prices to fall and adjust. At the same time, they find ways to suppress the company on the news, let the company have negative news, and guide retail investors. Selling stocks became a boost to short selling.

A two-pronged approach, unless the short-selling company or major shareholder has a large amount of funds, the stock price will inevitably fall, and the short-seller can make a lot of money through the falling stock price.

Claure echoed: "Of course I believe what my father said. Lin Baicheng had a grudge with Yingzi in Xiangjiang. If Yingzi sees an opportunity, he will definitely not let it go."

"lets change a topic."

After waving his hand, Lawrence asked: "Have you mentioned the investment in Changsheng Pharmaceutical and Biological Company to Lin Baicheng?"

"I said that."

Claure responded: "Lin Baicheng said that he would increase the investment amount of Changsheng Pharmaceutical Company to 500 million U.S. dollars, and give me up to 10% of the shares, which is an investment amount of 50 million U.S. dollars."

Lawrence frowned after hearing this: "You can only get 10% of the shares for US$50 million?"

Seeing this, Claure said: "I also feel that I invested too much and got too few shares, but Lin Baicheng's attitude is more resolute. The most I can choose is to invest less and reduce my shareholding. By the way, he said that all his investments will be in cash. At that time, I can send a financial officer to the company, and I think he won’t lie to me on this point.”

"If he has asked you to send a financial officer to the company, then it is obviously impossible to lie to you."

Lawrence said something, then pondered and thought.

Upon seeing this, Claure waited for a short while and then said: "Father, he temporarily increased the investment because he obviously did not want our Rockefeller family to hold too many shares. We only got 10% of the shares for 50 million U.S. dollars, and the company's prospects are not yet It’s hard to say, I think this investment needs to be carefully considered.”

"You are right, the maximum of 50 million US dollars is not a small amount, and you really need to think about it carefully."

In a company that invests US$500 million, he can only get 10% of the shares and has little rights over the company. Lawrence really doesn't want to make such an investment. But when he thought that Lin Baicheng had invested more, at least 450 million US dollars, he didn't believe that Lin Baicheng had no confidence at all, so he was a little hesitant.

Claure said: "Father, there is no rush to make a decision on this matter right away. It's okay to give Lin Baicheng an answer in about ten days and a half."

Lawrence nodded: "I really have to think about it for a while."

Claure asked: "Father, how much more do you think the price of gold can increase?"

Lawrence glanced at him: "How many long orders did you place in private?"

"$50 million."

Claure smiled, knowing that his father had seen through his little plan. A long order of US$50 million is already a lot for him, and this is also because he used leverage. Otherwise, he would not be able to raise so much money unless he disposed of some properties.

"No one can predict how high it will rise, let alone me."

Lawrence said something first, and then changed the subject: "However, I have discussed with Goldman Sachs, Citigroup, Morgan and other institutions, and we have unanimously decided to let the gold price fluctuate for a few days, and then work together to raise the gold price. When the gold price is higher than After the price reaches US$700/ounce, everyone will decide whether to ship or not. At that time, it will depend on who runs fast and who runs accurately."

Let the gold price fluctuate around US$600/ounce for a few days to wash out the unsteady funds, and then raise the gold price and let the funds that were washed out earlier carry the sedan and take over.

"Thank you father!"

Claure was overjoyed when he heard this. If he said this, as long as he was not greedy, there would be no problem in shipping and closing long orders when the gold price was close to US$700 per ounce.

"This is just our general plan. Whether we can actually achieve it depends on whether there are any changes in the news and how the market is trending."

Although the big institutions on Wall Street have united, the trading volume in the gold futures market is still too large. Once there is sudden news that stimulates the gold price trend, or large funds enter the market, they will not be able to control the gold price trend.

Therefore, plans are plans, and they are not completely sure whether they can be completed according to the plan.

"In the past few days, I will always pay attention to the trend of gold prices."

Claure said it, and he also knew that it was uncontrollable.

Lawrence nodded and said nothing more. The two father and son then talked about other things for a while. Because it was already quite late, Claure said goodbye and left, going back to the home he bought.

In the next two days, the price of gold fluctuated up and down, with the price of $600 per ounce as the central axis.

The lowest price on Thursday was even close to US$585/ounce, but it recovered a lot in late trading. On Friday, it rebounded to above US$600/ounce again. The high was close to US$615/ounce, and the closing price was also close to $610/oz.

There was considerable amplitude in these two trading days, with a short-term difference of five points between the high and low points.

After two trading days, Lin Baicheng's long orders were wiped out by nearly US$3 billion. The main reason is that there were fewer long orders than sold on Thursday, because the price of gold mainly fell that day. Selling too much would have caused a larger drop, so naturally fewer orders were sold.

The gold price fluctuated in the past two days, and Lin Baicheng had some doubts about whether it was related to his shipments. It was his shipments that suppressed the rise in gold prices.

However, doubts remain doubts, but Lin Baicheng is not prepared to change his plan. If he can safely ship the goods and transfer the profitable funds, it is a victory for him.

The shipments in the past few days have gone smoothly without any accidents, and Lin Baicheng is happy about this.

On Saturday and Sunday, Lin Baicheng didn't go anywhere. He just stayed here in New York and stayed in the villa most of the time. Even Phil Smith asked him to go out to play, but he refused.

At this time, Lin Baicheng didn't want to cause trouble, so staying with the operation team in the villa made him feel more at ease.

Lin Baicheng hoped that the price of gold could fluctuate at US$600 per ounce for as long as possible, so that his long orders could be shipped smoothly while the price of gold fluctuated. Unfortunately, after two more trading days, the price of gold began to rise rapidly again.

However, the rapid rise in gold prices is not without benefits for Lin Baicheng. Firstly, if the price of gold rises, the price for closing long orders will be higher. Secondly, more long orders can be closed every day.

If the price of gold rises sharply, you can close more long orders, and there will be funds to cover the long orders sold.

In the past few days when the gold price was fluctuating, Lin Baicheng also did one thing incidentally, which was to close the long orders invested by a small circle, and also informed various investors.

Phil Smith and Iwasaki Mineryu were the most concerned because they themselves were also long gold futures, but Lin Baicheng only told them to close their long orders to be on the safe side, and did not say anything more.

When the gold price reached 650 US dollars per ounce, Lin Baicheng's long gold futures order had already liquidated tens of billions of dollars in funds. Despite this, he still has more than 10 billion U.S. dollars of long orders that have not yet been closed. The only ones he had closed before were principal.

Time flies by on January 18, another week of trading ends, and the price of gold has risen to nearly $700 per ounce.

During this nearly 10% increase, Lin Baicheng closed several billions of dollars of long orders. If there are no surprises, according to the current trend of gold prices, Lin Baicheng's long orders can definitely be closed before the gold price rises to US$800 per ounce.

Vivien Kelly, Doug Goldon and Sun Yiyang from the operation team told Lin Baicheng that the price of gold rose by about 14% this week, which was quite an astonishing increase. A large amount of funds entered the market, and the price of gold was pushed up rapidly.

This situation usually has only two results. One is that the gold price is about to have a larger upward trend, and 900 US dollars/ounce or 1,000 US dollars/ounce may be the stage high; the other result is that the rise of big funds is nothing more than In order to prepare for shipments, there will be a rapid rise in the price of gold, but it will fall quickly as well. The price of gold will get out of the roller coaster trend due to the shipment of large funds.

Vivien Kelly and others just expressed their judgment. What Lin Baicheng wanted to do was definitely Lin Baicheng's decision.

After hearing the judgments of the three of them, Lin Baicheng decided not to make any changes and continued to ship goods according to the original plan to close out the long orders and settle down.

Next, not only Lin Baicheng's remaining long gold futures orders will be closed, but even Hutchison Whampoa's long orders will also start shipping. It's just that Hutchison Whampoa's long orders are not too many, and shipments will be faster.