When he heard that Xu Yiyang wanted to trade in stocks, Li Zekai couldn't understand it.
With a valuation of US$500 million and 55% of the shares pledged, this is US$275 million!
Is he crazy to directly use 275 million US dollars to speculate in stocks
In fact, stock trading is not that easy to make money at all. With so much money of 275 million U.S. dollars, even if you lose 10%, it will be 27.5 million U.S. dollars. Are you sure you can bear this kind of heartbeat
No one dares to say that he will definitely make money by stock trading, otherwise the world's richest man would not be Bill Gates, but the big man who has always made money by stock trading.
The stock market is inherently volatile, and often times it does not follow common sense, which is extremely risky.
Generally speaking, if you have two million US dollars, it is reasonable to invest in stocks. However, once you have 20 million US dollars, you will basically choose a safer way to make money, at least some stocks, combined with some funds and investments.
If you have 200 million U.S. dollars, you will basically adopt a diversified financial management approach, allocating some real estate, matching some funds, trusts, insurance, and even investing and financing some companies.
Investing US$200 million in a few promising companies may increase the value dozens of times in a few years. Isn't this how Sun Zhengyi, the Asian financial superman, made his fortune
If you use 200 million US dollars to speculate in stocks, you can only say that this person has a brain problem.
Most of the time, people do not have foresight, so people will choose the method that they think best meets their needs to manage their finances.
Most people are not willing to take any risks. They would rather put all their money in the bank or Yu'e Bao and get an annualized return of less than 3%. They would not dare to use their money to buy something with an annualized return of 4%, but they might. A slightly low-risk financial fund, not to mention stock trading;
Some people can accept a little risk, so they use their money to buy low-risk funds and make fixed investments, but they dare not enter the stock market;
Some people can accept greater risks, so they invest money in the stock market, but the vast majority of people enter the stock market with less than one million chips. There are not many retail investors who can hold positions of more than one million, and even fewer who can hold positions of more than ten million. There are almost none with over 100 million yuan.
But Xu Yiyang is different.
Xu Yiyang is the only bug in the world, just like the only plug-in in online games that can copy equipment.
Although there is a bug in copying equipment, the level of your own equipment is also very important. If you wear common clothes and hold an ebony sword, you will not make money no matter how you copy it. If you can wear a top-quality suit and hold a dragon-slaying knife, you can make money by copying it once. turn!
Therefore, Xu Yiyang is now asking Li Zekai for a mortgage loan because he wants to get himself some top-quality equipment before using Bug to copy the equipment.
Ask Li Zekai to borrow a dragon-slaying knife, brush two or three dragon-slaying knives, and then return his one to him.
This is called borrowing a chicken to lay an egg.
Li Zekai felt that Xu Yiyang's idea was extremely naive, but he did not speak to persuade him.
Because he suddenly felt that this was a good opportunity for him to directly take away all Xu Yiyang's Tencent shares.
Xu Yiyang must have thought that he could make a lot of money in the stock market, so he first mortgaged the shares to himself and then redeemed the shares after making money. This was equivalent to borrowing a chicken to lay an egg.
However, once he loses money, he may not have enough money to redeem his shares.
Moreover, if you give him US dollars, he must return US dollars to himself. If he loses US$10 million and wants to redeem his shares, he must fill the hole of US$10 million.
It is impossible for a young man from the mainland to obtain US$10 million in a short period of time under the premise of foreign exchange controls.
Even if he has 100 million yuan in the mainland, he will only be able to watch.
Once he is unable to repay the full amount in U.S. dollars, wouldn't the shares he pledged here become all his own
Thinking of this, he became faintly excited.
Although the valuation of US$500 million is indeed a bit high, Xu Yiyang is right. When housing prices rise, people who don’t need money will not be willing to sell their houses even to death.
Now Xu Yiyang finally had a place to make money. If he didn't seize this opportunity, he would really have no chance.
So, he asked Xu Yiyang: "Mr. Xu, are you sure you own 55% of the shares and not 40%?"
Xu Yiyang smiled and said: "You should have heard from Mr. Ma that he and I have a bet. As long as Mobile QQ helps Tencent earn 150 million yuan within two years, the 15% of the shares will belong to me. This is the current situation. It seems that in the second half of this year, these 15% shares will be in my name. There is no possibility of any changes. At worst, I will sign an agreement with you. If I don’t get these 15% shares in the end, I will pay you 500 million. The valuation in U.S. dollars will give you back 15% of the shares.”
Li Zekai nodded lightly. There was indeed no suspense about this matter. If Xu Yiyang was willing to keep everything in the agreement, it would be safer.
So he said to Xu Yiyang: "Mortgage is not impossible, but to be honest, Mr. Xu, with so much US$275 million, you can't let me lend you a loan in vain, right?"
Xu Yiyang smiled and said: "Of course, of course, I will give you 2% monthly interest, what do you think?"
The monthly interest rate is 2%, and the annual interest rate is 24%, which is already very high.
Li Zekai blurted out immediately: "Seriously?"
2% monthly interest, $275 million, one month’s interest is $5.5 million!
If Xu Yiyang mortgages the shares to himself and takes away 275 million, even if he does nothing, if he wants to redeem the shares one month later, it will still cost 280 million!
If he loses 5% on his investment, plus interest, he may never be able to redeem his shares.
At that time, the 55% of Tencent shares will be more secure!
To take a step back, even if Xu Yiyang makes money, he does not lose anything. He earns 5.5 million US dollars in one month, which is 11 million US dollars in two months!
You can get shares when you enter, you can get interest when you withdraw, no matter how you look at it, you win!
Thinking of this, Li Zekai immediately said: "OK! Mr. Xu, if you are really willing to mortgage your shares to me, then I will give you US$275 million!"
Xu Yiyang was extremely excited and said with a smile: "Okay, then I will call the lawyer over tomorrow to sign a contract with you. After the contract is signed, you can transfer the money into my personal account at Citigroup."
Saying that, Xu Yiyang added: "By the way, Mr. Li, please give me one million more. I want 276 million U.S. dollars, which is equal to the U.S. dollars I have now."
Li Zekai nodded immediately and said: "Okay! Just 276 million!"
…
After finishing the meal, the two people, who had their own hidden agendas, were extremely excited.
Li Zekai was excited because he believed that Xu Yiyang would definitely get rid of it. He would not be able to buy back the 276 million given to him. At that time, he would be equivalent to buying 55% of its Tencent shares.
Buying 20% of Tencent's shares and taking 55% directly from Xu Yiyang are completely different concepts.
Originally he just wanted to get on the bus and get a seat, but he didn't expect that he would now have the opportunity to become the major shareholder of the bus. It was even possible to take more shares from the Tencent team and become the owner of Tencent through a later capital increase. This made him ecstatic.
Xu Yiyang was excited because he now had $280 million in chips including Chen Ziqiang's $4 million.
280 million, if you don’t double it, you will be sorry for the hole you dug for Li Zekai...
As soon as the money arrived, I immediately took all my positions in NVIDIA. NVIDIA was bound to have a big market trend in nearly half a month. If I remember correctly, NVIDIA's stock price would climb to US$75 before the Internet crashed.
If you enter the market in time, you can make at least double the profit, or even more.
Therefore, Xu Yiyang immediately contacted Fang Junhui and asked him to cross the border from Shenzhen to Hong Kong early tomorrow morning to help him settle the contract with the second son of the Li family.
Fang Junhui was dumbfounded. Xu Yiyang was developing too fast, right? More than half a year ago, I signed a contract with a start-up company owner in Shenzhen, and now I am going to cooperate with the second son of the Li family in Hong Kong
However, although he was shocked, he still had no doubts. After agreeing on a reward of 20,000 yuan with Xu Yiyang, he immediately started packing his simple luggage and prepared to cross the border from Shenzhen to Hong Kong early tomorrow morning.
…
Recently, Xu Yiyang suddenly became mysterious in the eyes of teachers and students from China and overseas who were traveling with him.
He disappears after class and doesn't eat with everyone. I don't know what he is busy with.
When he returned to the hotel, it was already very late. Hu Bingwen came to his room to find him and asked him if he had relatives in Hong Kong and why he was missing all day long.
Xu Yiyang smiled and said that he had recently met some Hong Kong friends and played together several times.
Hu Bingwen told him: "The Faculty of Liberal Arts of the University of Hong Kong is planning to hold an exchange meeting on Friday. At the exchange meeting, the Hong Kong Assembly will arrange for several outstanding students from the English Department to discuss Hong Kong with our exchange students. By then, the entire English Department Your classmates will be there to watch, so you must prepare carefully."
Xu Yiyang couldn't understand and asked him: "Taking Hong Kong as the topic? Isn't this topic too general?"
Hu Bingwen said with a smile: "Anyway, we will be exposed when the time comes. It is said that the Hong Kong media will be at the scene. You must be well prepared and perform well when the time comes to bring glory to China Overseas."
Xu Yiyang smiled helplessly: "This exchange meeting sounds very superficial, and there is no clear topic. Even if it says let's talk about Hong Kong's economy or Hong Kong's development, it will be fine."
Hu Bingwen said: "Those who participated in the exchange are all students from the Faculty of Arts, and they are not majoring in economics and management. They may not understand Hong Kong's economy. Besides, do you understand?"
Xu Yiyang nodded and said seriously: "I understand! I understand a lot!"
Hu Bingwen thought he was joking, so he laughed and scolded: "You know nothing. Go back and learn more about the history of Hong Kong over the past century, and behave well when the time comes."
Xu Yiyang sighed and said: "Okay..."
After Hu Bingwen left, Xu Yiyang began to hold the computer and study the US stocks that had just opened.
The Nasdaq's opening index today was 4646 points.
Xu Yiyang calculated that there is still 486 points of room for growth from the highest point of 5132 points on March 13, which is about 10.5%.
Today, Nvidia’s opening stock price is $30.188…
This price made Xu Yiyang ecstatic!
No matter how the market began to collapse on the 13th, I held Nvidia's stock until June, waiting for the stock to rise above 80 before selling.
In this case, the net profit can be approximately 1.7 times.
With an investment of US$280 million, the net profit is approximately US$480 million.
However, another advantage of U.S. stocks is that they can be used for margin trading and securities lending to increase leverage.
Financing means borrowing money directly from securities companies using margin.
However, there are many references for Firstrade's margin trading. Although Xu Yiyang's account opening amount is relatively high, the account opening time is short, and he has not held stocks before, so this situation is generally considered by brokers to be a novice, and the financing leverage is only one times.
For example, Xu Yiyang now has 4 million U.S. dollars. The brokerage firm can give him double the leverage. That is to say, he can use 4 million U.S. dollars as collateral and then borrow 4 million U.S. dollars from the brokerage firm at a higher annual interest rate.
Of course, this money is in the account and can only be used to buy stocks.
If he uses the 8 million US dollars to buy a stock, everything will be fine if the stock rises. But if the stock he bought plummets, down 50%, and there is still 4 million left from the 8 million US dollars, the brokerage will borrow money to guarantee his 4 million US dollars. If you don't suffer any loss, you will be forced to close your position.
This is also commonly known as liquidation.
After the liquidation, I lost four million, but the brokerage firm could still get its money back.
One-time leverage may not seem like much risk, but there are no price limits for U.S. stocks. If you are unlucky, it is not unusual to lose 50% in one day, so the risk is still relatively high.
However, Xu Yiyang knows NVIDIA's performance. Let alone a 50% drop, it can rise at least 150%. At this time, it is natural to get more chips.
So he used double the leverage and raised $4 million from the brokerage firm.
Now that the U.S. stock market is doing well, the financing interest rate is relatively high. The financing interest rate offered by First Securities is 10% annualized. That is to say, if you borrow 4 million, the interest for one year without liquidating the position is 10%. One day About $1,100 in interest.
It's drizzling.
So, Xu Yiyang decided to put all the $8 million in Nvidia.
After buying it, Xu Yiyang stopped paying attention to the stock. Everything was waiting for Li Zekai's money to come in tomorrow.
(End of chapter)