The subsequent trading plan was finalized.
In the following week, Su Yi continuously instructed the company's traders to short sell standard pound exchange rate contracts using multiple associated accounts opened by the company at 'FXCM International', until the invested capital reached 35 million US dollars and the market value of the held contracts reached 3.5 billion US dollars.
"President Su, according to the first phase position-building target we previously set, we have now completed it."
After the traders completed the operation, trading team manager Qu Zecai reported to Su Yi,
"After the completion of the first phase position-building target, our institution's current pound short position has reached 35 million US dollars, and because the pound exchange rate has risen considerably in this past week, our current holdings have already incurred losses of millions of US dollars."
"Hmm."
Su Yi nodded slightly, looking at the computer screen where the pound exchange rate had reached around 1.476, and said,
"In the initial phase of building positions, there's no need to overly concern ourselves with the cost of entry, nor with temporary losses."
"What should we do next?"
Qu Zecai paused and continued to ask.
Up until now, he still didn't know Su Yi's overall plan, much less why Su Yi was so insistent on targeting the pound exchange rate.
One must know that with such a massive amount of capital, they were single-handedly gambling heavily on the pound exchange rate.
It was extremely dangerous.
He was truly afraid that Su Yi would make a misjudgment and suffer a crushing defeat in the pound exchange rate market.
"Next..."
Su Yi thought for a moment and said with a smile,
"The bait has been cast, now we just have to patiently wait for the fish to bite. Our institution, in such a short period of time, on the same market maker's trading platform, has established such a massive short position; surely someone will notice us. Let's wait for the related news to gradually spread."
As he spoke, Su Yi had his secretary Lin Xiaoxiao call in the branch general manager Wang Huaijin.
"President Su..."
Wang Huaijin walked into Su Yi's office.
Su Yi glanced at him and said,
"President Wang, next... it's time for your specialty."
"My specialty?"
Wang Huaijin looked bewildered, not quite understanding what Su Yi meant.
Su Yi smiled and said,
"Manager Qu just told me that our 'Huayi Chengyuan No. 1 Fund' product has now established a 35 million US dollar short position on the 'FXCM International' trading platform. I now need you to disseminate this news through so-called unofficial channels, inadvertently to major foreign exchange market investment institutions in Hong Kong's financial sector, and even throughout the entire Hong Kong financial sector."
"President Su, you..."
Hearing Su Yi's words, Qu Zecai was completely startled.
After Wang Huaijin reacted, his face was also full of shock.
"What's wrong?"
Su Yi smiled as he looked at the two of them.
"Who would actively expose their own positions and holding data to other institutions? Once we expose detailed holding data, I'm afraid it would be extremely easy for us to be precisely targeted!"
Qu Zecai said.
"It's fine, since we're here to fish, we're not afraid of big fish biting the hook, and naturally not afraid of being targeted. Once the news is out, the more fish that bite, the better!"
Su Yi said.
Seeing Su Yi's confidence, Wang Huaijin responded,
"Alright, I'll go take care of it immediately."
After speaking, Wang Huaijin left the office.
"During the period when the news is spreading, let's temporarily suspend increasing our positions. Let's first see, after the news has spread, how many fish will bite the hook."
Su Yi said.
"Alright."
Qu Zecai responded, but his heart remained somewhat uneasy.
Carrying a 100x leverage, the danger level of the foreign exchange market was more than ten times riskier than the stock market.
Although the funds invested in the foreign exchange market had nothing to do with him, facing such high leverage and excessive fluctuations in the pound exchange rate, his nerves would remain taut, making it difficult to relax.
After instructing the two of them...
Su Yi leisurely picked up a copy of Graham's 'Value Investing' book from his desk and began to flip through it, completely unfazed by the fluctuating frequency and the increasingly volatile trend of the pound exchange rate, nor did he take to heart the millions of US dollars in losses from the 'Huayi Chengyuan No. 1' fund product.
And at this moment, while he was waiting.
Even before Wang Huaijin had people leak the internal holding data of their institution, Su Yi, using the 'Huayi Chengyuan No. 1' fund product, had established a 35 million US dollar short position within the 'FXCM International' trading platform where the positions were opened, and this 35 million US dollar short position had already caught the attention of a group of senior executives within 'FXCM International'.
At the same time, its massive short position holding data was already being leaked.
"This institution, 'Huayi Capital', where did it come from? The 12 associated accounts opened on our company's trading platform, collectively holding pound short positions, have already reached 35 million US dollars."
During an internal meeting at 'FXCM International', Hubert from the risk control department couldn't help but ask.
"It seems to be a Hong Kong investment company with average qualifications."
Salina from the company's client department responded,
"These accounts were only opened with us half a month ago."
"A 35 million US dollar pound short position, this is already the largest position in the declarations on our company's platform, isn't it?"
Isaac from the company's market operations department frowned and said,
"It's truly a big gamble. The trading department should keep a close eye on this order and prevent a recurrence of the numerous account blowouts that happened during the 'Swiss Franc Black Swan' event."
"Yes, President."
Sibyl from the trading department responded.
"However, this institution currently has relatively sufficient margin on our company's trading platform."
Salina from the client department said,
"This institutional client has injected a massive total of 100 million US dollars into our platform."
"It's only sufficient for now."
Hubert from the risk control department said,
"With such a massive short position and the pound exchange rate currently at a historical level, once its holding information is leaked, various institutions conducting foreign exchange financial transactions globally will inevitably enter the market to force a short squeeze and target it. At that point... it will be hard to say."
"Our company strictly forbids the leakage of client data, who would dare violate this rule?"
Sibyl from the trading department said righteously.
"Who knows?"
Hubert shrugged.
"Perhaps the information didn't leak from our company's internal channels, it's also possible. In the global foreign exchange market, massive centralized declared position information is very difficult to hide.
Investment institutions with strong global information gathering capabilities will have specialists compiling changes in long and short positions across various exchanges. As long as we declare an order to the exchange, this position information cannot be hidden.
Perhaps... at this very moment, many external institutions have already noticed this massive position anomaly."
Salina said.
And just as Salina said...
While the internal meeting at 'FXCM International' was underway.
In the global foreign exchange market, renowned institutions such as 'Vanguard Capital', 'Pacific Capital', 'Mitsui Sumitomo Investment Company', 'Barclays Bank FX Trading Center', 'Huifeng Global Asset Management', 'Aberdeen Asset Hedge Fund', 'Hashimoto Investments'... the fund managers in charge of foreign exchange trading had indeed noticed the sudden surge in short positions in pound exchange rate trading.
"Have you found out? What's the reason for the sudden surge in pound short positions?"
At 'Pacific Capital's London headquarters, Ya Buk from the hedge fund business department asked Horace from the market information department.
Horace responded,
"It seems to be an investment institution from Hong Kong, which, through 'FXCM International', concentrated on establishing over 35 million US dollars in pound short positions in a short period."
"An investment institution from Hong Kong?"
Ya Buk frowned, feeling somewhat surprised.
He had originally thought it was those people from Wall Street, but unexpectedly... it was actually capital from across the ocean, from Hong Kong, known as the 'Pearl of the Orient'.
"Which institution specifically?"
Ya Buk continued to ask.
Horace replied,
"According to the feedback received, it appears to be an investment institution called 'Huayi Capital'."
"A Chinese-funded institution?"
Ya Buk said.
Horace nodded and replied,
"It seems so."
"Heh heh..."
Hearing it was a Chinese-funded institution, Horace couldn't help but laugh,
"It seems Chinese-funded institutions haven't learned enough lessons from past experiences. A 35 million US dollar pound short position... it looks like this will be another feast for hunting."
"I think so too."
Horace said with a smile.
Along with the attention of major global institutions in the foreign exchange trading sector...
Hong Kong financial sector.
Due to Wang Huaijin's deliberate efforts.
As time passed, within just two or three days, news about 'Huayi Capital' heavily gambling on shorting the pound exchange rate and holding a 35 million US dollar pound short position rapidly spread throughout Hong Kong's financial sector, and with the rapid dissemination of the news, this news also spread to the mainland financial sector.
"Holy crap, is he that good? A single move involved a 35 million US dollar pound short position?"
Upon hearing the news, Dennis, the core trader from Hong Kong's 'Aberdeen Asset' hedge fund trading department who had met Su Yi before, was almost completely dumbfounded.
He had never imagined that Su Yi, having just entered the foreign exchange market, would make such a grand move, attracting so much market attention.
In fact, when he heard that Su Yi had established such a massive short position, he had for a moment suspected that Su Yi didn't understand the foreign exchange market at all and was very likely treating foreign exchange like the stock market.
After all, under extremely high leverage, a position size of 35 million US dollars, once targeted by a benchmark sniper, would instantly lose more than 10 times the principal, meaning the holding risk was extremely high.
Of course, if the other party was just making a small test trade and already put up a 35 million US dollar position, then their potential investment capital size would shock him even more.
And while he was shocked.
At the same time, within 'Huifeng Asset Management', in the 'Global' hedge fund trading department.
Godfrey, the fund manager in charge of this hedge fund product, gazed at the fluctuations of the pound exchange rate and also found it hard to believe that the young man who had spoken so wildly at the gala actually dared to invest tens of millions of US dollars, plunging into the foreign exchange market to make such a big gamble.
"It seems... I truly underestimated him."
Sharpness surged in Godfrey's eyes.
"However..."
He pondered for a moment, paused, and said,
"The timing of this entry choice and the currency system chosen for this big gamble truly shows a lack of foresight. To actually short the pound exchange rate at a historical low, does this guy want to be the counterparty to the Bank of England? Truly ignorant."
"Mr. Godfrey, we should enter the market to target them."
While he was pondering, Gerald, the core trader from the trading department, quickly suggested.
Godfrey glanced at Gerald and said with a smile,
"At this position, going long on the pound exchange rate is not a bad opportunity. Let's go long. Chinese capital in the foreign exchange market has always been a fat lamb waiting to be slaughtered. I believe, this time... will be no exception."
After speaking, he then had the traders quickly establish pound long positions.
As 'Huifeng Asset Management' learned the news and began to enter the market to go long on the pound exchange rate, gradually establishing long positions.
Throughout Hong Kong, other Chinese-funded institutions apart from foreign ones.
After hearing the news that Su Yi's 'Huayi Capital' had invested heavily to short the pound exchange rate, almost no one was optimistic, and cynics still constituted the vast majority.
In fact, quite a few Chinese-funded institutions quietly followed foreign institutions to enter the market and go long on the pound exchange rate, becoming the counterparty to 'Huayi Capital', managed by Su Yi.
Of course, at this time, domestically...
Many people who had witnessed Su Yi's legendary investment achievements in the A-share market, after hearing that 'Huayi Capital', managed by Su Yi, had aggressively shorted the pound exchange rate, invested heavily, and moved into the global foreign exchange financial market, most of them, however, expressed support.
However, among them, quite a few also expressed concern.
After all, in past financial history, Chinese capital going overseas indeed had no track record of success and was entirely harvested by overseas capital.
"My heavens... I was wondering why in recent months Brother Su hadn't appeared on the market's 'Dragon and Tiger List', I never expected him to have moved to the global foreign exchange trading market."
In the rapid spread of news and information dissemination.
Within the 'Magic City Ultratrading Gang' main speculative capital group where Su Yi was, Xu Qiao said in shock.
"Brother Su's spirit and courage are truly not something ordinary people possess."
In the group, Old Zhang sighed,
"A single move is a 35 million US dollar gamble, truly amazing."
"The investment risk of the foreign exchange trading market can't be compared to the stock market, can it? I feel that the situation Brother Su is facing is quite dangerous. I don't know who leaked this news; such a massive holding amount, exposing one's position is absolutely a big taboo."
Old Wu said.
Brother Chen pondered for a moment and said,
"The news is spreading so quickly, disseminating so rapidly. How do I feel like this news exposure is intentional?"
"Don't mention it... I have this feeling too."
Old Zhang said.
"Anyway, no matter what... I believe in Brother Su. Isn't it just the foreign exchange financial market? Anyway, there aren't many opportunities in the stock market right now. With Brother Su leading the charge, I might as well try my hand at it too. The 'Yingxiu Securities' account I opened a few years ago is still usable."
Xu Qiao said.
"Haha, I'll also support with a couple of hands. But this thing, I don't really understand it. How do I open an account?"
Old Zhang said.
While a few people in the group were intensely discussing.
Across the entire network, and even the entire domestic financial circle, for a time, were also discussing this matter.
In fact, a host of domestic banks, state-owned investment institutions, state-owned enterprises, central enterprises, etc., which held a certain number of positions in the foreign exchange trading market, at this moment, were also discussing this matter.
And as the news rapidly spread, and countless people, after discussions, took different actions.
In the global foreign exchange market.
The pound exchange rate fluctuations and the number of its long and short positions also began to further increase.
Su Yi observed the dissemination of news about his own institution and the trend and fluctuations of the pound exchange rate, especially noting the surging trend of long and short positions in the pound market, realizing that the bait he had cast had already attracted many large fish and garnered the attention of many investment institutions.
For a moment, a clear smile involuntarily appeared at the corner of his mouth.
"Manager Qu..."
Su Yi instructed Qu Zecai with a smile,
"We can proceed with the next trading plan. Use our associated accounts opened on other market maker trading platforms to continue short selling standard pound contracts and shorting the pound exchange rate."
(End of Chapter)