Chapter 480: Black Monday (2)
Chapter 480: Black Monday (2)
At 10 am in the bustling port city, the stock market opened on time. The Hang Seng Index, influenced by the panic-stricken New York stock market, immediately began a downward spiral.
Even though Nie Zhan had liquidated his stocks, Lu Jiaxin's short position on the Hang Seng Index kept him closely tied to the market's movements. A phone call from his manager ten minutes after the opening bell left him with mixed feelings.
The Hang Seng Index had plummeted 120 points right at the opening bell due to the New York stock market crash, an unprecedented event. While this turn of events boded well for Jiaxin, it spelled danger for Wansheng Bank. Their failure to heed his advice and recall their capital promptly would now likely result in unprecedented losses and a significant challenge for the bank.
Su Heyuan was not as well-informed as the others. He had gone about his day as usual and had a meeting scheduled for 10 am. After the meeting, he spent a considerable time discussing matters with the sales manager and several other mid-level managers.
It was already noon by the time he finished, and he prepared to head down to the restaurant for lunch. However, as soon as he stepped out of his office, he sensed that something was amiss.
Su Heyuan called out to his secretary, Huang Pingping, and asked, "What's going on?"
Huang Pingping was young, capable, and efficient. While many bosses preferred their secretaries to be young, attractive, and well-endowed, Su Heyuan had intentionally avoided this trend, choosing to focus on work instead. Additionally, remaining professional helped him maintain his personal boundaries as he was not yet married.
Secretary Huang, surprised by her boss's apparent lack of knowledge, asked, "Don't you know, boss?"
"Know what? Tell me."
Assuming that he had been occupied with reviewing documents all morning, she replied with a somber expression, "The stock market dropped 120 points right after opening, and by the time it closed, it had fallen by 235 points. We found out that it was due to the crash in the New York stock market. If this trend continues into the afternoon..."
She left the last word unspoken, as it was considered bad luck to voice such concerns. Her savings had been invested in the stock market, and with the recent gains over the past six months, her investment had more than doubled. However, with this sudden drop, she feared she might not even be able to recoup her initial investment.
Su Heyuan's reaction was a mix of shock and delight. "It dropped that much?"
Secretary Huang mistook his reaction for a sign of mental instability brought on by the news and quickly tried to reassure him. "Boss, don't worry. Our company's real estate development project from last month has almost sold out, bringing in nearly 200 million in capital. With the stock market crashing, it'll be harder to sell properties, so we're actually in a favorable position now."
Su Heyuan brushed off her concerns and returned to his office to make some phone calls. He first confirmed the news with his stockbroker, and then excitedly called Lu Jiaxin.
Mina answered the phone and, recognizing his voice, said, "The boss is in class and won't be back until after school ends this afternoon. Call back after 5 o'clock if there's something you need."
Jiaxin usually spent her lunch breaks at school, either reading or reviewing her lessons.
After hanging up, Mina was perplexed. Su Heyuan was usually mindful of Jiaxin's schedule, so why was he calling at this hour? However, his excited tone suggested good news, so she quickly put the matter out of her mind.
Su Heyuan was indeed excited, but he couldn't share this news just yet. Not everyone had followed his lead and shorted the market by buying put options on the Hang Seng Index.
After a moment's thought, Su Heyuan called Nie Zhan, inviting him to join him and Jiaxin for a celebratory dinner that evening.
Nie Zhan, who had plans to visit the old mansion after work, readily accepted the invitation, knowing it wouldn't conflict with his schedule. "Mr. Su, I have plans for the evening, but you and Jiaxin go ahead. Enjoy your dinner."
"Will do."
"Congratulations, Mr. Su."
"Congratulations to us both."
Nie Zhan chuckled and said, "Jiaxin made the trade, but I didn't. She didn't ask you to buy as well?"
"No, but it's fine. As long as she's doing well, I'm here if things go south," Nie Zhan replied, confident in his ability to support Jiaxin even if her trade went awry.
Although he hadn't joined her in shorting the market, he had followed her suggestion to launch promotional campaigns, and as a result, their two real estate projects from the previous month had completely sold out.
After recouping the funds and repaying 23% of the debt, there was still some surplus left, and the funds raised from the rights issue last month were also intact.
With a substantial cash reserve, Su Heyuan immediately convened a senior management meeting as soon as the Hong Kong stock market opened and plummeted. The agenda for the meeting was to discuss the company's next steps after acquiring land.
There were four ways to hoard land: government auctions, purchasing land from private owners, land swap entitlement schemes, and acquiring old buildings. With over 1.2 billion HKD in cash flow, he intended to allocate 1 billion HKD for land acquisition.
Surprised, Su Heyuan soon realized that Jiaxin's insight in seeking him out was impressive. "Mr. Nie, let's have a meal together when you're free."
"Sure."
At the 1 pm opening, by the time the market closed at 4 pm, it had dropped another 165.8 points, totaling a loss of 420.8 points for the day, a decline of over 10%.
After the market closed, Su Heyuan was ecstatic, happily pacing in his office and muttering to himself, "We struck gold! We really struck gold this time!"
Given this trend, the stock market would undoubtedly continue to fall. Heeding Lu Jiaxin's advice, he had employed a tenfold leverage strategy, essentially doubling his profits for the day.
Su Heyuan was so excited that he couldn't focus on company matters and drove to wait outside the university for Lu Jiaxin. He waited for over half an hour before she finally appeared.
As soon as he saw her, he exclaimed, "Jiaxin, the stock market has crashed, and we've made a fortune! We've hit the jackpot this time!"
Noticing the attention they were drawing, Lu Jiaxin couldn't help but touch her forehead in exasperation. "There are too many people here. Let's talk about this back at the apartment."
"Forget the apartment. I'm treating you to a fancy dinner."
Lu Jiaxin wasn't interested in a lavish meal. "I have a lot of homework today. Treat me to a nice dinner this weekend instead!"
Seeing her calm demeanor, Su Heyuan realized that she must have already heard the news. It wasn't surprising, given that almost everyone in Hong Kong was investing in the stock market, including teachers and school staff.
Back at the apartment, Su Heyuan couldn't contain himself any longer. "Today, the Hang Seng Index dropped by over 10%. We've doubled our money today!"
"The Hang Seng Index will continue to fall, but it's unclear how much further it will drop."
According to his memory, the 1987 stock market crash saw the Hang Seng Index plunge by nearly 50%. With their tenfold short position, they could make over four times their investment.
Su Heyuan laughed, "Of course, the more it drops, the better. Jiaxin, if it weren't for you this time, I wouldn't have just lost money, but a huge sum at that. Ask for anything you want, and I'll buy it for you."
This time, Lu Jiaxin didn't hold back. With their profits, Su Heyuan could make over 100 million HKD. "I like antique paintings, porcelain, and jade. I'm a fan of these old collectibles."
Su Heyuan chuckled, "Alright, there's an auction next month. I'll send you the auction catalog, and you can let me know if you see anything you like."
Lu Jiaxin was delighted, thinking that if there were any items she fancied, she could acquire them for her collection.
Su Heyuan was curious about how much Lu Jiaxin had invested, but knowing it was a private matter, he refrained from asking. "I called Nie Zhan at noon, and he also congratulated me. That's when I found out he didn't follow through with the trade."
Lu Jiaxin smiled and said, "He's not a fan of taking risks. I think it's fine. What we did was a gamble. He prefers a more stable approach, and that's good too."
Su Heyuan felt that the two of them complemented each other. "Jiaxin, you must have made a substantial profit this time. What investments are you planning to make?"
Lu Jiaxin smiled. "I haven't thought about it yet. What about you? Do you have any ideas already?"
(End of Chapter)
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