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Chapter 654: Liquidation
Chapter 654: Liquidation
The Nikkei 225 index had reached over 37,000 points, just a thousand points shy of the all-time high that Lu Jiaxin could recall. She remembered the index crashing in the early 1990s, though she couldn't pinpoint the exact month. Seeing it climb so high now, she was certain the crash would happen in January.
Economic events often had far-reaching consequences, and the impending collapse of the Nikkei 225 index would undoubtedly send shockwaves through Japan's stock market and its economy.
Lu Jiaxin called Deng Weihai and instructed him to sell off all the stocks and properties under her name. During the economic boom in the past few years, she had invested in many quality stocks and purchased numerous properties, as well as making some investments through Nie Zan.
Upon hearing Lu Jiaxin's intention to liquidate her assets for a major project, Deng Weihai immediately assured her, "Don't worry, boss. I can get the funds back within a week."
The Nikkei index futures, which they had bet against, would expire at the end of the month, and the highly sought-after stocks they owned had soared in value. As for the real estate investments, they were all in prime locations, so finding buyers wouldn't be an issue.
Lu Jiaxin was pleased with this response. She planned to transfer half of the liquidated funds back to Hong Kong City and the other half to America. She intended to profit from the impending crash of the Nikkei index.
After Lu Jiaxin emphasized the urgency of the sale, Deng Weihai hung up the phone and immediately went to the securities company. He had more than just Lu Jiaxin's index futures, stocks, and properties to sell; he also needed to offload his personal stock holdings. He hadn't invested in real estate, as he considered it a less lucrative option.
Lu Jiaxin's mention of reinvesting the funds in a major project didn't concern Deng Weihai. Based on his guess, he believed that his boss had likely sensed an impending crisis, prompting her decision to liquidate her assets.
Working under Lu Jiaxin for the past few years had been financially rewarding for Deng Weihai, with generous salaries and bonuses. However, the bulk of his wealth came from following her investments. His initial capital of 3 million had grown to over 40 million, a fifteenfold increase in profits. And this was with him being relatively cautious; otherwise, he could have doubled or tripled that amount.
While he couldn't compare to Lu Jiaxin's wealth, Deng Weihai was still content. His boss had ample financial resources and owned multiple companies, so he preferred to keep his money in the financial markets and take a steady and conservative approach.
That evening, when Nie Zan returned, Lu Jiaxin shared her decision with him. "Let's liquidate our investments in Xiao Ri Zi."
"What happened?" Nie Zan asked.
Lu Jiaxin explained, "The Nikkei 225 index has reached nearly 37,000 points today. My right eyelid kept twitching when I heard that number."
Nie Zan didn't refute her this time, not because he was superstitious, but because he also felt that Xiao Ri Zi's economy was overheating to a frightening degree. In simple terms, it was a bubble economy, an economic mirage.
"I already called Deng Weihai today and told him to sell off the stocks and properties as soon as possible to get our funds back," Lu Jiaxin said.
Upon hearing this, Nie Zan said, "Then I'll also liquidate my stocks and index futures tomorrow. However, for the investments, we'll need to find people to take over, so the funds won't be available as quickly."
"We need to act fast. Delay could bring about unexpected changes," Lu Jiaxin urged.
Many people from the Chinese mainland believed that the streets of Hong Kong City were paved with gold. However, in comparison, Xiao Ri Zi was truly the wealthier place at this point in time. Its remarkable achievements in industry and technology had fueled rapid economic growth.
Due to its thriving economy, the average salary in Xiao Ri Zi was an astonishing 10,000 Hua coins, while the average salary in the mainland was around 100 Hua coins. It was no exaggeration to say that a week's worth of work in Xiao Ri Zi could earn someone from the mainland a year's salary. This stark contrast highlighted the immense gap between the two places during that period.
Hearing this, Nie Zan straightened up in his seat. "Do you think the crash of the Nikkei index will burst Xiao Ri Zi's bubble economy?"
"
The two of them often discussed a variety of topics, from international affairs to economic development and future trends. Nie Zan had a forward-thinking perspective, and Lu Jiaxin, with her knowledge from her past life, had her own insights, making their conversations engaging and insightful.
Lu Jiaxin nodded and said, "If the Nikkei 225 index crashes, it will definitely have a domino effect. The stock market will plummet, the real estate market will collapse, and banks and evidence companies will go bankrupt. If we don't withdraw our investments in Xiao Ri Zi quickly, our assets there will shrink significantly."
Nie Zan was taken aback for a moment. "Is it that serious?"
Lu Jiaxin replied, "Of course, it's serious. After the bubble bursts in Xiao Ri Zi's economy, their economic growth will stall. Some scholars even argued that the Hiroshima Agreement set their country's economy back by two decades."
"This is just my speculation, and it may not be that severe, but a reduction in our assets is inevitable. Nie Zan, after we retrieve our funds, I want to short the Nikkei index again." Lu Jiaxin's tone was determined.
She clearly remembered that the Nikkei index started to fall when it reached 39,000 points. This was her chance to make a substantial profit; it would be a missed opportunity if she didn't take it.
Pausing for a moment, she continued, "I'll hold on to the 400 million green dollars I have for now and reinvest it after I make a profit from the Nikkei index."
Out of the 500 million green dollars they had raised, Nie Zan had already been given 100 million, and the rest was in their account.
Bringing up another matter, Nie Zan shared his thoughts, "Jiaxin, I want to invite a few friends to invest in our branch. Firstly, it will help distribute the risk, and secondly, if they have good projects, they can bring me in on them."
Lu Jiaxin didn't object. In business, it was important to share opportunities. Otherwise, others wouldn't consider you when they had promising projects. She nodded and said, "That's fine, but we must hold more than 51% of the shares."
Nie Zan agreed, "Of course, they will only be investors and won't be involved in the management. However, this is just my initial idea. SL is different from Hong Kong City, so they may not be interested in investing."
Lu Jiaxin smiled, "Do you know what Su He Yuan said about me?"
"What?" Nie Zan asked.
"He said that I'm the daughter of the God of Wealth and that I can make money with my eyes closed. He truly believes it, and it's not just idle talk. Because of this, the Hu family found out, and I'm sure people outside of the family have heard it as well." Lu Jiaxin found the situation amusing.
There was a rumor that the Superman had sealed his wife under a coffin-like building to ensure the prosperity of their family. Regardless of its truth, the rumor reflected the strong superstition of the wealthy in Hong Kong City towards financial luck and Feng Shui. In the past few years, whether it was investing in financial products or starting a company, Lu Jiaxin had never lost money; everything she touched seemed to turn to gold. While the title of being the "daughter of the God of Wealth" might have been a joke, people undoubtedly believed that she had exceptional financial luck. In this situation, if Nie Zan invited them to invest in the SL branch and they knew that Lu Jiaxin was one of the investors, they would definitely be interested in taking a share.
Nie Zan listened and agreed, "Krief will hold 20% of the shares, I'll have 25%, you'll have 35%, and the remaining 20% will go to them."
With the two of them holding 60% of the shares, they would have absolute decision-making power.
Lu Jiaxin looked at him and smiled, "You're not going to let Hu Zhifang have a share?"
The reason she didn't consider Su He Yuan was that he didn't have the financial capability to invest. However, the Hu family was one of the top wealthy families in Hong Kong City, and they could easily invest a few hundred million.
Nie Zan and Hu Zhifang were close friends, and he had already invited several new friends, so it was surprising that he had forgotten about Hu Zhifang, "I mentioned it to him. He wanted to invest, but his uncle disagreed because he thought the project was too risky."
Alright, Lu Jiaxin decided to drop the topic.
(End of Chapter)
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