readytorunbook Chapter 324 Thrilling: A $90 Billion Gamble!
Chapter 324 Thrilling: A $90 Billion Gamble!
Financial institutions usually set limits on leverage ratios for risk control purposes.
Generally speaking, the leverage ratio of bond pledge repurchase and securities lending shall not exceed 2 times.
It is not easy for Hao Qiang to obtain 5x leverage when the current financial system is not yet perfect.
After the financial crisis, the leverage ratio was adjusted to a maximum of 2 times.
Futures and index leverage are a different matter. Since their fluctuations are smaller, the risks of high leverage are relatively controllable.
Hao Qiang used five times leverage to short sell, which means that if the stock price rose by more than 20%, he would need to add margin, otherwise he would face the risk of a margin call.
Therefore, even if there is an opportunity to obtain a higher leverage, Hao Qiang would not dare to use it rashly.
It is normal for U.S. stocks to rise by several points or even more than ten points in a single day. At this moment, Hao Qiang hopes that the stock price will not rise too sharply, but also hopes that the stock price will be at a higher level when it is sold.
He used $15 billion to raise valid securities or stocks worth $75 billion, and added $15 billion in margin (margin can be used for operations, such as short selling or purchasing stocks, but it is also kept in the brokerage account and cannot be withdrawn temporarily, and the conversion rate is calculated at irregular intervals), which allows him to operate stocks worth $90 billion.
Based on this calculation, if the stock can be sold for around US$100 billion, it will be Hao Qiang's ability.
But if it exceeds too much, additional margin will be required.
For the next three days, Hao Qiang stayed in the operation room, supervising the team's operations and learning at the same time.
If it fails, the loss may reach tens of billions of yuan;
If successful, he could potentially earn billions of dollars, exceeding his current net worth.
This does not include his planned bottom-fishing operation.
If you can use tens of billions of funds to buy at the bottom and hold it for one or two years, the profit can easily exceed 100 billion yuan.
"Mr. Hao, you have currently shorted about $20 billion and sold $6.5 million worth of stocks when the stock price was high." Manager Zhang reported to Hao Qiang.
He didn't know why Hao Qiang was so confident in betting that these stocks would plummet, but judging from their performance in recent months, they had tended to stabilize, with individual stocks falling slightly.
However, the interest rate on short selling is not low either. If you borrow $75 billion, the interest for half a year will be about $3 million, which is not a small amount.
Adding in other transaction fees and costs, any profit less than $3.2 million would be a loss.
Hao Qiang solemnly reminded: "Well, before July 20, all stocks must be sold. I don't want to wait any longer and have more troubles."
"Okay, let's speed up a little." Manager Zhang nodded.
Hao Qiang stayed for a few more days, borrowed a total of $60 billion and sold a total of $25 billion in stocks.
It is easy to borrow stocks, but you cannot sell stocks too quickly.
Saturday, April 6.
Hao Qiang left Gangcheng because he had other things to deal with in the company and he couldn't stay in Gangcheng all the time to keep an eye on things.
After returning to Yuecheng, Hao Qiang stayed with Han Qingying for two days.
Han Qingying is currently working on her undergraduate thesis on the Future Technology Group's official website and server, which she has always been responsible for managing.
Consumers can also purchase Future Technology Group’s products through the official website.
Of course, when Han Qingying writes papers, he will leave aside some core business matters and it is impossible for them to be exposed to the public.
Hao Qiang also studies computer science and often discusses professional matters with Han Qingying.
"Brother Qiang, compared to you, I feel like I've wasted four years studying." Every time Han Qingying was hit by Hao Qiang, she began to doubt her own learning ability.
Hao Qiang said cheerfully, "I have a master's degree in computer science, and my skills are comparable to a PhD. You're just asking for trouble by comparing yourself to me."
"Hmph, you're just bragging. You've only been learning for two years." Han Qingying knew that Hao Qiang's level was high, but she just didn't want to admit it.
"Your husband is good at everything, whether in bed or outside the bed, there's nothing you can do about it." Hao Qiang held her face and kissed her.
In four years, Han Qingying has lost her youthfulness and innocence, her face has become more charming, her body has become rounder, more beautiful and elegant.
"Oh, I'm discussing technical issues with you, but you're just thinking bad things."
"It's also a technical issue. The backward compatibility of your backend is a little poor and needs to be adjusted..." As Hao Qiang was talking, he picked up Han Qingying and put her on the sofa and pressed the automatic curtains.
Han Qingying's villa is occupied by only the two of them. They have excellent privacy and are not disturbed by anyone. They can shout as much as they want and exchange ideas without any restrictions.
If you are in a suite, you are either afraid of your neighbors hearing it, or you are afraid of your neighbors upstairs and downstairs hearing it.
I have to say, detached villas are just that good.
Half an hour later, the two finished discussing backend compatibility issues and took a bath.
The weather outside was too hot, and neither of them wanted to go out, so they stayed in the house. Han Qingying was perfecting her graduation thesis, and she would be defending it in a few days.
Hao Qiang sorted out the car system and wrote code.
"Brother Qiang, did Wu Hai open a dental hospital?"
Hao Qiang replied, "Yes, it's been almost a year, and business is pretty good. Several classmates in my class have followed him, and he's living a pretty comfortable life now."
Han Qingying recalled, "Isn't this all because you encouraged them to apply for dentistry? Seven or eight students in the class followed your advice."
"Don't underestimate this industry. The profit margins are high. Wu Hai made at least half a million yuan in his first year. Now that he's famous, business is booming. He's even busy on weekends."
"Wow, that's so profitable." Han Qingying exclaimed.
"Well, computer science is not a bad field, but for some majors, if you don't get promoted to management after the age of 35, you may face a career bottleneck or even lose your job."
"When I applied for the exam, I didn't know anything about the industry situation and I applied blindly." Han Qingying admitted that when she applied for the computer major, she really didn't know anything about the industry and no one gave her any guidance.
"This is normal," Hao Qiang explained. "Our county is relatively closed to information, so high school students don't know much unless they have someone at home to guide them."
"I heard from the teacher that there are far fewer repeaters this year than when we were there, but there are still some who repeat for two or three years."
"For rural students, the best future is to go to university, especially a key university.
You see, our company now recruits undergraduates only from 985 universities, and they have to be in the right majors.
"Finding a job will become increasingly difficult in the future, but no matter what, it's better for college graduates to find a job than to work hard," Hao Qiang said. "Repeating two or three years is nothing. A friend in Beihai repeated eight years and was determined to get into Qinghua University."
"Ah, repeating eight years, you must have great perseverance."
Hao Qiang pondered, "Yeah, maybe for some people, even a dozen years is worth it. As long as they can achieve their goals, time doesn't seem to be that important."
"But is it worth it?" Han Qingying asked doubtfully, "Even if you pass the exam, you'll be too old after graduation."
Hao Qiang smiled and replied: "Everyone has different choices. As long as it's not illegal, people can do whatever they want.
To be honest, I admire this spirit of persistence.”
"If you have such a graduate, would you recruit him into your company?"
"I admire his perseverance, but I won't hire him into the company," Hao Qiang said, shaking his head. "Since he refuses to listen and is out of touch with society, he must bear the consequences of society not accepting him.
Of course, even if they have a bright future, we still won’t hire them.”
It was a rare opportunity for Hao Qiang to talk with Han Qingying about the college entrance examination that had just ended. At around six o'clock in the afternoon, the two drove to their own hot pot restaurant in Zhengjia Plaza to have a hot pot meal.
He hasn't been here for a while, and now there are more than 50 Renjian Fireworks stores.
After the financial crisis, we will start raising funds next year and prepare for the IPO.