Chapter 483: Knowing When to Stop
Chapter 483: Knowing When to Stop
Lu Jiaxin smiled and said she hadn't decided yet. "Any suggestions?"
Nie Zhan said, "You've always said that real estate prices will keep rising and told me to stockpile land. Wansheng Real Estate only has 1.2 billion in their accounts. I plan to use 1 billion to buy land, but it's not nearly enough."
"Jiaxin, if you can invest a billion to buy land, you can later collaborate with Wansheng Real Estate to develop the property. This way, it benefits Wansheng's growth, and you can make a profit from both ends of the deal."
By stockpiling land, she could profit from rising land prices. As the second largest shareholder of Wansheng Real Estate, the more Wansheng Bank earned, the larger her dividend would be.
Lu Jiaxin nodded, "In addition to land, I also plan to invest in shops, high-end apartments, and residential properties. Oh, and I heard that there's a luxurious mansion for sale in Repulse Bay. Is that true?"
"Yes, the owner of Mansion 4 in Repulse Bay is considering selling. Are you interested?"
"What do you think about me buying it and then renting it out?" Lu Jiaxin proposed. She had no intention of living there herself. Now that she had made a substantial profit, she planned to purchase the neighboring land and build two additional buildings—one for the maids and butlers and another for her bodyguards.
Nie Zhan disagreed, "It's not a good investment as it ties up too much cash flow. That money could be used for other investments. But if you really want to buy it, don't rent it out. Keep it for yourself."
"What about the funds from America and Japan? Do you plan to bring them back to Hong Kong City or keep them there for further investment?"
Lu Jiaxin said, "I won't bring them back. I plan to keep them there for investments. Ah Zhan, I've identified some stocks that I want to hold long-term, and I also want to purchase some quality properties over there. Additionally, I plan to invest in some promising companies."
Nie Zhan smiled and said, "Today, the Dow Jones Industrial Average opened with a drop of 67 points, and it didn't stop there. The Hong Kong City stock market was influenced by the plunge in New York and suffered a drastic drop, which then triggered a domino effect of plummeting stock markets across the Asia-Pacific region. The impact circled back to New York, where the Dow Jones Industrial Average closed with a loss of 508 points, a drop of over 22%."
Following Jiaxin's instructions, they had shorted the market with ten times leverage, effectively doubling their profits. The New York market would definitely continue to drop tomorrow, driven by panic selling, though it was hard to predict exactly how much.
Lu Jiaxin said, "Ah Zhan, let's close our Dow Jones position at the opening bell tomorrow."
She knew that the Hang Seng Index had dropped by nearly 50%, but she wasn't sure about the exact figures for other countries. To play it safe, it was best to close their positions immediately.
"What about the Hang Seng Index?" asked Nie Zhan. America would definitely intervene to save their market, and the Dow Jones might rebound tomorrow. Knowing when to stop was the wisest decision.
Lu Jiaxin shook her head, "Based on my analysis, it will continue to drop at the opening bell tomorrow. Let's wait until next Monday."
Nie Zhan nodded in agreement.
Lu Jiaxin asked, "Have you eaten? If not, go downstairs and have something to eat."
Nie Zhan had lost his appetite due to Nie Jingwen's behavior earlier that day, but now, after talking with Lu Jiaxin, his mood had improved, and he felt hungry.
As he went downstairs to eat, Lu Jiaxin made separate calls to Mo Libin and Deng Weihai, instructing them to close their positions after the market opened tomorrow.
The Dow Jones Industrial Average had dropped by over 22%, the Nikkei Index by 14.9%, the Singapore Index by 12.4%, and the Hang Seng Index by a staggering 113%. With ten times leverage, they would profit by at least one-fold from this drop.
Compared to the declines in other countries, the Hang Seng Index's drop was in the middle range. Unfortunately, the decision to suspend trading for four days by the Stock Exchange had caused panic among investors. When the market opened next Monday, everyone would rush to sell, and the drop would be uncontrollable, explaining the significant decline today.
After making all the necessary arrangements, Lu Jiaxin also went downstairs to have some donkey hide gelatin stewed with red dates and fish maw.
After his body recovered, Nie Zhan didn't continue eating it every day; he only consumed it about ten times a month.
After dinner, Nie Zhan made a few phone calls and then accompanied Lu Jiaxin to the garden to gaze at the stars.
Lu Jiaxin wasn't interested in stargazing that night, but since it was not advisable to sleep right after a meal, she agreed to take a stroll in the garden with him.
As Nie Zhan led Lu Jiaxin by the hand outside, he said, "Jiaxin, Wansheng Real Estate's stock dropped by 12% today, and it will likely drop further next Monday. I plan to buy back the company's shares then."
Lu Jiaxin thought for a moment and said, "Then wait for my funds to be available, and I'll buy some too. 17% is a bit too little; 25% would be more appropriate."
Nie Zhan hoped she would buy more of the company's stock. "After this stock market disaster, there will likely be shareholders looking to sell. I'll help you negotiate when the time comes."
Lu Jiaxin nodded in agreement.
Nie Zhan then shared that he had received a call from Tao Yong on his way back. It was a call to express gratitude. "Shi Xinyu often has a short temper, but Tao Yong has always been tolerant of her. This time, however, the huge loss affected his mood, and they ended up arguing. He thanked me for comforting Shi Xinyu and even praised me for finding such a good wife."
Hearing the latter part made him feel extremely pleased. His wife was not only understanding but also brought him good fortune. After all, he had foreseen the stock market turmoil, but if it weren't for Jiaxin's suggestion to promote sales, they wouldn't have been able to recoup so much capital.
Lu Jiaxin teased, "Who's your wife? Stop talking nonsense."
Nie Zhan pulled her into his embrace. "You're my wife for this lifetime. Wherever you go, I'll be there too. Don't even think about shaking me off."
Lu Jiaxin laughed and scolded him. "You're being unruly."
"Yes, I am, and I'll be unruly for this lifetime, sticking by your side."
Miao Na looked at the affectionate couple, glanced at Yan Yijun, and said, "Seeing how sweet the boss and Mr. Nie are, I also want to fall in love."
Yan Yijun replied expressionlessly, "Falling in love will distract you. If you start a relationship, I'll recommend to the boss that we fire you."
Miao Na huffed and turned to go back inside.
The next afternoon, after school, Lu Jiaxin received a call from Mo Libin. Following her instructions, he had closed their positions as soon as the market opened.
Mo Libin reported, "Boss, for the Dow Jones index, our principal was 210 million green dollars, and after deducting the fees and taxes, we recouped 610 million green dollars. For the Singapore index, our principal was 110 million green dollars, and after fees and taxes, we made a profit of 210 million green dollars."
With a principal of 320 million green dollars, they had earned a profit of 500 million, totaling 820 million green dollars. The risk was high, but so were the returns.
Lu Jiaxin predicted that America would definitely intervene to save their market, but their economic bubble was massive, and any rise would only be temporary. "For Coca-Cola, Johnson & Johnson, Oracle, and Nike, buy as many shares as possible of each. However, as we've done before, use separate offshore companies to make the purchases."
Mo Libin felt they should wait and see before buying. "Boss, based on this trend, the market will likely continue to fall."
The drop was certain, but Lu Jiaxin believed these companies had excellent development prospects and wouldn't fall much further. "Let's buy a portion first. If it drops further, we'll increase our purchases."
"Understood, boss," Mo Libin replied.
Subsequently, Lu Jiaxin received a call from Deng Weihai. For the Nikkei 225 index, their principal was 120 million green dollars, and after deducting fees and taxes, they profited 270 million green dollars.
Lu Jiaxin first expressed her gratitude for his hard work and then asked him to keep an eye on stocks like Fujifilm and Shin-Etsu Chemical. As for the remaining funds, she intended to invest them in small-day real estate.
However, she would need to consult Nie Zhan about investing in small-day real estate, as he was the expert in that field. Although she had earned this money from financial markets, it had come with considerable risk, and she didn't dare to invest it carelessly.
(End of Chapter)
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