As Su Yi's command was issued.
Tens of millions of dollars in funds from 'Huayi Capital', 'Huayin International', and 'Aberdeen Asset' instantly poured into the British pound exchange rate market in the form of concentrated new short orders.
At the same time, coupled with the rapid covering of intraday profit-taking positions and the timely counterattack by other main short funds.
Almost in an instant.
The British pound exchange rate plummeted from around 1.5385, falling back to around 1.5350.
"Damn it, that 1.5400 threshold just won't break."
Facing the British pound exchange rate turning downwards again, along with the phenomenon of main short players in the market furiously increasing their positions, many retail investors who had followed the trend to go long couldn't help but complain.
"Why is breaking the 1.5400 threshold so difficult? Didn't they say there was significant positive news?"
"It seems the short forces in the market are much stronger than everyone previously expected!"
"It's not that the short forces in the market are strong; rather, the large-scale covering of intraday profit-taking positions is suppressing the British pound exchange rate's market trend."
"The covering of intraday profit-taking positions, doesn't that still indicate that confidence in continuing to go long at this level isn't strong?"
"The main reason is the considerable uncertainty surrounding the referendum result on June 23rd next week, which makes it hard to boost everyone's confidence in going long collectively."
"Confidence is one aspect; on the other hand, the continuous increase and suppression by main short institutions in the market also have a huge impact."
"If you ask me, there's no need to look so far ahead or analyze so much. Just trade short-term intraday between 1.5300 and 1.5400. A 100-point range fluctuation is enough to make money."
"It seems the trend of the British pound exchange rate forming a volatile situation between 1.5300 and 1.5400... has been widely recognized by the majority of investors and speculators in the market."
"It's not a matter of recognition; it's mainly how the trend is developing."
"Undoubtedly, before the referendum result comes out on June 23rd next week, there's no expectation of a one-sided trend for the British pound exchange rate."
"Actually, there's no need to wait for the referendum result. If the relevant positive news this weekend exceeds expectations, meaning the negotiations between French and German dignitaries and the British government officials go smoothly, then... I estimate that the referendum result on June 23rd will most likely be to remain within the EU system."
"Not necessarily, right? Can referendum results be manipulated?"
"It's not manipulation, but guidance. If these negotiations are successful and France and Germany make more concessions to the UK's national interests, then the national government and the public will have no strong reason to demand leaving the EU!"
"Logically and probabilistically speaking, isn't the probability of the referendum result favoring remaining in the EU higher?"
"Theoretically, yes, but we can't rule out surprises!"
"If a surprise really happens, the British pound exchange rate might collapse."
"Not just the British pound exchange rate, the spot gold trend will likely also experience extremely fierce fluctuations."
"If the referendum results in leaving the EU, it should be considered a 'black swan' event, right?"
"That would definitely be a 'black swan,' but this probability should be very small. For now... it feels like a real Brexit for the UK is still quite unlikely."
"Although the probability is small, we still have to be prepared."
"The short forces in the British pound exchange rate market have become increasingly strong in recent days, which should also be due to these concerns, right?"
"I've read recent short reports from institutions like 'Aberdeen Asset', 'BNY Mellon', 'Citibank'... I feel that even without this Brexit referendum crisis, it would be quite difficult for the British pound exchange rate to stabilize at this level for a long time."
"The former empire has indeed seen its sun set."
"Alas, let's just follow the market. Sell short when it approaches 1.5400, go long when it nears 1.5300, and try not to hold overnight positions."
Amidst the heated discussions among numerous retail investors and investor groups.
As trading time progressed further.
The British pound exchange rate continued to slide.
Especially as market trading time entered the US trading session, with major short institutions like 'BNY Mellon', 'Blackstone Group', and 'Citibank' continuing to increase short positions after comprehensively analyzing the impact of market news, the British pound exchange rate gradually fell back to around the 1.5300 mark.
Ultimately, when the US trading session ended and the market closed for the weekend.
The British pound exchange rate, after fierce intraday fluctuations, closed at 1.5321, barely holding the bulls' psychological defense line of 1.5300.
However, despite the positive news, the British pound exchange rate failed to achieve a sustained upward trend.
It was unable to truly reclaim the 1.5400 level.
But in terms of the total number of open long and short positions in the market, there was no doubt that the open long positions still accounted for the majority, with the net long positions still as high as 800,000 lots.
Thanks to the significant drop in the British pound exchange rate during the US session and the company's traders' continuous short selling above 1.5370.
The 'Huayi Chengyuan No. 1' main hedge fund managed by Su Yi.
Although its short positions increased, the loss on the positions decreased significantly compared to the previous days, and the entire fund's position loss narrowed to within 200 million USD.
"Mr. Su, the news is out."
On Saturday, June 18th, around 7 PM, as Su Yi was contemplating his subsequent trading plans, Wang Huaijin called, eagerly and cheerfully reporting:
"News from the UK: after negotiations, the two sides did not reach a satisfactory outcome. The British Prime Minister clearly stated that since the national referendum procedure has been initiated, it cannot be stopped and will not be interfered with by any person or institution.
Regardless of the outcome, all government states and cities will ensure the fairness, openness, and impartiality of the vote counting results, fully respecting and guaranteeing the voting rights of all British citizens."
"Those are indeed pretty words,"
Su Yi said with a smile after hearing Wang Huaijin's report.
"Now that things have progressed to this stage, the British government's dignitaries will naturally not go against public opinion to try and stop this matter.
Furthermore... for these people, the outcome of whether to leave the EU or not will not have a significant impact on them, and perhaps quite a few political figures are looking to seize this opportunity to advance their careers."
Wang Huaijin nodded and said,
"Yes. Overall, this... should be good news for us."
Su Yi replied,
"It's a moderate piece of good news, but relying solely on this news, it's probably impossible to curb the bulls' short squeeze actions on the market and force many long funds in the market to cover their positions before June 23rd next week."
After saying this, Su Yi thought for a moment and added,
"Keep an eye on market news. If no surprises... there should be many more important announcements."
"Understood,"
Wang Huaijin responded, then suddenly remembered something and said,
"Mr. Su, there's a financial summit forum led by the Hong Kong government tomorrow. They've invited our institution. What do you think... should I accompany you, or..."
Su Yi thought about it and felt that this might be the right time to seize the opportunity and make a public challenge.
So, after a moment of contemplation, he said,
"You accompany me tomorrow."
"Okay,"
Wang Huaijin responded again and then hung up.
Then, when it was Sunday, June 19th, 9 AM, Wang Huaijin drove a car and waited at the entrance of the Peninsula Hotel where Su Yi was staying.
Afterward, the two of them set off together.
They arrived at the venue of the financial summit at 10 AM.
After checking in at the venue, before Su Yi could exchange pleasantries with Zhang Yanshun, Kong Fansheng, Meng Shengfei, Frederick, Fang Wanqing... and others who had also arrived.
Many financial media reporters had already crowded around him.
"Mr. Su, there are rumors in the industry recently that the 'Huayi Chengyuan No. 1' fund product you manage has incurred huge losses in its British pound exchange rate investments. Is this true?"
A financial media reporter who had squeezed in front of Su Yi asked.
Su Yi glanced at the reporter in front of him and responded with a smile:
"Our institution just released the relevant holding data a few days ago. Whether it's true or false, I don't think I need to answer that question."
"Such huge losses remind people of the past history where Chinese capital was continuously short-squeezed by international capital in crude oil futures and LME copper futures, eventually leading to huge losses and forced covering. Will Mr. Su be covering and closing the fund product's positions in the near future?"
The reporter asked.
Su Yi responded,
"We might cover and close positions in the near future, but... this is conditional on liquidating the long positions in the market."
"Mr. Su still believes that the British pound exchange rate faces significant depreciation risk in the near future?"
The reporter asked.
Su Yi spread his hands and said with a smile,
"There's no doubt about it. The currency exchange rate trend is the best reflection of a country's economic fundamentals. I don't believe that the future British economy, with its structural imbalances and hollowing out of manufacturing, can still unleash strong growth potential.
Instead of being optimistic about this sun-setting former imperial economy, it's better to be optimistic about the economic development of our neighboring Vietnam."
"Is Mr. Su comparing Vietnam's economic potential with that of the UK, and is he more optimistic about Vietnam?"
The reporter continued to ask, aiming to exaggerate the conflict and attract attention,
"In Mr. Su's eyes, is the current UK inferior to Vietnam?"
Su Yi said with a smile,
"I'm talking about future economic growth and development potential, not national strength. Please, Miss Reporter, do not misinterpret."
"We hear that the funds used by 'Huayi Chengyuan No. 1' fund product, managed by Mr. Su, for investing in the British pound exchange rate market, are not entirely proprietary funds of Mr. Su's company. Under such huge losses, what does Mr. Su have to say to instill confidence in investors to continue trusting your investment decisions?"
The reporter asked,
Su Yi responded,
"Temporary losses on positions are very normal in the foreign exchange trading market. I don't consider the current losses to be a big problem. As for many friends who are willing to entrust their funds to me, since they are willing to trust me, they probably don't need too much explanation from me.
I am... sometimes a person who prefers to judge by results. I still say, I welcome all friends who are going long in the market to push me to liquidation, or force me to cover my positions and stop losses. Otherwise... I will definitely make money and exit."
"Mr. Su's confidence... is truly extraordinary."
Seeing Su Yi's somewhat arrogant demeanor and words, the reporter chuckled awkwardly.
"Mr. Su, aren't your words a bit too absolute?"
In the venue, Godfrey, manager of 'HSBC Global Asset Management Universe Hedge Fund', frowned and said,
"I remember ever since you declared your entry into the British pound exchange rate market, you seem to have always been in a state of loss, never making a profit."
Su Yi glanced at Godfrey lightly and said,
"As long as the position isn't closed, temporary losses don't represent anything. Mr. Godfrey claims to have been battling in the forex market for twenty years; does he not even know these basic trading rules?"
Godfrey retorted,
"I only know that Mr. Su is a complete gambler. And in the financial market, gamblers are ultimately destined to be completely wiped out."
Su Yi said with a smile,
"Is that so? Then I look forward to Mr. Godfrey being able to eliminate me in the British pound exchange rate market and liquidate my positions. I just wonder if Mr. Godfrey will still have the courage to continue increasing long positions in the British pound exchange rate market when the market opens tomorrow."
Godfrey chuckled,
"Why wouldn't I dare? Mr. Su is probably ill-informed and doesn't know that the initial voting data has already come out? Based on the calculation results of the initial voting data, the national referendum on June 23rd will have no surprises."
Su Yi narrowed his eyes and said,
"Oh, is that so? Then I truly look forward to June 23rd arriving soon."
As the two engaged in a war of words, the scene became increasingly lively.
Furthermore, the subsequent trend of the British pound exchange rate and the prediction of the Brexit referendum result on June 23rd next week.
These two major topics became the core discussion points among various globally renowned asset management institutions and banking institutions at today's financial summit.
Among them, institutions led by Su Yi, such as 'Huayi Capital', 'Huayin International', and 'Aberdeen Asset'.
All believed that the referendum result had uncertainties, and any outcome was possible.
At the same time, they also believed that the UK's economic development had lost vitality, and the British pound exchange rate could not return to its former glory, and they thought this point would not change regardless of the referendum result.
Meanwhile, institutions led by 'HSBC Bank', such as 'Pacific Capital' and 'Mitsui Sumitomo Investment'.
All believed that next week's referendum result would have a positive impact on the British pound exchange rate's trend, and under the influence of the Bank of England's active monetary policy.
The British pound exchange rate has the foundation for continuous upward movement and appreciation in the future.
With their opposing views, neither side could convince the other.
And due to the huge position interests of both the long and short sides, peaceful coexistence was impossible.
Therefore, after the main session of the financial summit concluded, everyone dispersed.
Then, after more than half a day of emotional buildup and the fermentation of news throughout the weekend.
When Monday, June 20th, arrived.
As global financial markets opened, the British pound exchange rate significantly gapped down beyond expectations in the Asian session, opening at around 1.5260, instantly plunging many investors and speculators holding overnight long positions into considerable losses.
(End of Chapter)