Chapter 658: Stock Market Crash in Japan
Chapter 658: Stock Market Crash in Japan
Hu Zhifeng received a phone call from his investment advisor, informing him that Iwamoto Yasushi was interested in buying his shares, but at a price that was 10% lower than expected.
Hu Zhifeng replied, "That won't work. The maximum discount I can offer is 5% below market price. If he agrees, I can fly over tomorrow and sign the contract. If not, we'll continue looking for another buyer."
"Understood," the advisor said.
Later that afternoon, the advisor called back to confirm that Iwamoto had accepted the offer. Upon hearing the news, Hu Zhifeng immediately said, "I'll be on the first flight out tomorrow morning, and we can meet in the afternoon."
The deal was essentially sealed, and his trip was merely to finalize the contract. Hu Zhifeng wanted to sell quickly because Lu Jiaxin and Nie Zan had already withdrawn their investment, and he feared that further delays might cause unforeseen changes.
As he needed his passport for the trip, Hu Zhifeng returned home that evening. Zong Shimeng didn't accompany him, planning to join Lu Jiaxin later.
On their third day in Tai O, Nie Zan, Lu Jiaxin, and their group enjoyed a barbecue on the beach. The ingredients and barbecue equipment were all prepared in advance, so they could just cook and enjoy themselves. Lu Jiaxin wasn't very skilled at barbecuing and often ended up burning the food. In contrast, Nie Zan was very patient and grilled the meat to perfection, charred on the outside and juicy on the inside.
Zong Shimeng apologized to Lu Jiaxin, "Jiaxin, Zhifeng already told me about it yesterday. Nie Zan had reminded him a week ago, but because of the argument with Xiang Qing over the phone, he was in a bad mood and didn't pay attention when Nie Zan mentioned it."
Lu Jiaxin didn't believe a word of it. "Sister Shimeng, he's 36, not 66. His memory can't be that bad. I think he trusts Xiao Ri Zi's economic strength."
Zong Shimeng smiled bitterly, "I won't hide it from you. His memory has indeed deteriorated a lot lately. He forgets about promises made to the children as soon as he turns around, and I or his secretary has to remind him."
"Has he gone for a check-up?" Lu Jiaxin asked.
Zong Shimeng shook her head. "No, he said that it's normal for someone his father's age to experience memory lapses, and it's not a big deal. We'll find an opportunity for the whole family to get a comprehensive health check-up soon."
After a pause, she smiled and added, "Actually, his memory loss has its benefits for me. He promised to give me 10 million, and if there's a major economic crisis in Japan, he'll give me an additional 30 million as a reward."
With less than 100 million in assets under her name, she never expected to receive 40 million from this incident. Even if Lu Jiaxin's prediction didn't come true, she would still walk away with 10 million.
Lu Jiaxin smiled wryly, "That's not bad. From now on, instead of having Nie Zan tell him about these things, you should be the one to inform Zhifeng. That way, you can get more money out of his pocket."
Zong Shimeng was naturally pleased with the idea. "Whenever you have time, let's go shopping together. I'll buy whatever you like."
Lu Jiaxin didn't refuse, "I've been busy lately. Let's plan a shopping trip together at the end of the year."
They didn't stay out too late, and after the barbecue, they parted ways around midnight. On their way back, Lu Jiaxin shared the news about Hu Zhifeng's generous gesture.
Nie Zan laughed, "Hearing you say that, it doesn't seem so bad after all."
He understood why Hu Zhifeng was being so generous. Zong Shimeng wouldn't squander the money on frivolous things, and any purchases of luxury items would be for maintaining the Hu family's reputation during social events. So, no matter how much money she was given, as long as it wasn't lost through investment failures, it would eventually benefit their children.
Lu Jiaxin pouted, "You call Shimeng 'Sister-in-law', and I call her 'Sister'. It feels awkward. Let's just unify our way of addressing each other."
Nie Zan didn't think it was a big deal. "I've been calling him 'Brother Feng' for so many years that I can't change my habit overnight. You've also gotten used to calling him that, so I don't think we need to change it. I'm sure Brother Feng and Sister-in-law won't mind."
"Then let's leave it at that for now," Lu Jiaxin agreed.
Hu Zhifeng stayed in Japan for ten days before returning home. Not only had he sold all his shares, but he had also transferred five out of the six investment projects he was involved in.
Zong Shimeng, now aware of the situation, asked, "Why don't we transfer the remaining project out as well?"
Hu Zhifeng replied, "The remaining project is automobile manufacturing. Xiao Ri Zi has done quite well in this area. Even if the stock market crashes, it will only be a short-term downturn and will recover soon enough."
Zong Shimeng didn't understand this aspect either, but seeing his logical explanation, she didn't probe further.
With Xiao Ri Zi running around for so long, Hu Zhifeng was also feeling exhausted. He decided to take a day off and rest at home before returning to work.
After being away for ten days, Hu Zhifeng had a pile of work waiting for him at the office. As soon as he started going through the documents, someone knocked on his door.
"Come in."
It was his investment advisor. Pushing the door open, the advisor said, "Boss, the Japanese stock market has crashed. Following this downward trend, it might be even more severe than our three-year bear market."
Hu Zhifeng was taken aback but quickly regained his composure and asked his subordinate to leave before delving into a deep discussion with the advisor.
January 12, 1990, this day would become a nightmare for the people of Japan. Within a single day, the stock market plummeted by 70%.
After the market closed, Lu Jiaxin called her stockbroker to inquire about the situation. The extent of the decline shocked her. She had anticipated a drop, but not one of this magnitude. It was unprecedented for a country's stock market to crash by 70% in a single day. In the history of Hong Kong, the most severe crash had been a 40% drop three years prior. With this 70% drop, many people would lose their life savings, turning from millionaires into homeless vagabonds overnight.
When Lu Jiaxin returned home, she was still shaken by the events. Seeing Nie Zan, she exclaimed, "How could the market drop by 70%? No country's stock market has ever crashed so drastically in a single day."
Based on her speculation, the most significant drop she had expected was around 40%, similar to Hong Kong's three years ago. Who could have foreseen that more than half their wealth would be wiped out?
With a stern expression, Nie Zan led Lu Jiaxin into the study. As soon as he closed the door, his demeanor changed, and he smiled, saying, "I did as you asked. The principal amount is 800 million green dollars, and I've used a tenfold leverage to short sell."
Of the 800 million principal, 600 million was transferred from Lu Jiaxin, and he had only managed to scrape together 200 million himself. Then, with Lu Jiaxin's remaining 400 million, they used offshore companies to short sell the Nikkei Index in Amer and Star City.
With 1.2 billion in principal and a tenfold leverage, the 70% drop in the Nikkei 225 Index meant that Lu Jiaxin had profited a staggering 8.4 billion green dollars in a single day. Nie Zan had been in the business for many years, but even he had never made such a lucrative trade.
Nie Zan stared at her intently, his eyes unwavering.
Lu Jiaxin, feeling uncomfortable under his intense gaze, took a step back and asked, "Why are you staring at me like that?"
Nie Zan burst into a wide grin and said, "I think Su He Yuan was right. You must be the daughter of the God of Wealth."
Lu Jiaxin joked, "If I'm the daughter of the God of Wealth, then you must be the son-in-law of the God of Wealth, sharing in the wealth."
Although she was joking, she knew that she wouldn't have made this much money without Nie Zan's help. For instance, when she had short-sold the Nikkei Index several times before, if it weren't for Nie Zan helping her distribute the investment, the financial sharks would have sniffed her out by now. However, now that they were a married couple, there was no need to keep track of who helped whom.
Nie Zan's smile was triumphant. Everyone in Hong Kong knew by now that he had married a wife who brought him good fortune. Previously, Hu Zhifeng and Tao Yong would complain about Lu Jiaxin's temper, but now they only had praises for her.
Lu Jiaxin was also in high spirits. With this substantial profit from short-selling the Nikkei Index, she now had ample funds to prepare for her buying spree when the SL Group dissolved in two years.
(End of Chapter)
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