"Old Fang, have you seen the latest trend of the British pound exchange rate?"
Just as many business and financial figures in the Magic City and Harbor City turned their attention to Huayi Capital, in the Qiu family villa in the Magic City, Qiu Guoyu, observing the trend of the British pound exchange rate and the progress of the entire UK referendum, couldn't help but call Fang Xingyuan, the chairman of Yuanhang Group.
"I've seen it," Fang Xingyuan chuckled, "How could I not pay attention to such a major event?"
"That kid Su Yi is really formidable. He made such a massive bet and actually won," Qiu Guoyu said. "The UK's Brexit process has indeed developed towards Brexit."
"Has the referendum result been confirmed as Brexit?" Fang Xingyuan asked.
Qiu Guoyu replied, "Although the final vote counts for major regions haven't been fully announced yet, most of the subsequent voting areas are regions that support Brexit. At the same time, the current number of people supporting Brexit is significantly ahead of those supporting remaining in the EU. This data essentially means the final referendum result pointing to Brexit is no longer in suspense."
"It seems... the British government ended up shooting themselves in the foot," Fang Xingyuan chuckled. "These guys probably originally intended to use the Brexit proposal and the referendum process to achieve some of their political goals, didn't they? Who would have thought... that trying to use public opinion to achieve their own objectives would ultimately result in them being manipulated by public opinion."
"That's indeed the case," Qiu Guoyu nodded and said. "If this referendum result points to a Brexit outcome, I estimate the incumbent British Prime Minister will be forced to resign proactively."
"Looking at it this way... this is truly a historic moment," Fang Xingyuan sighed.
Qiu Guoyu replied, "Exactly. It can basically be called the biggest 'black swan' event of this century so far."
"I remember that kid Su Yi started shorting the British pound exchange rate a month ago, didn't he?" Fang Xingyuan said. "How exactly did he determine that the result of this Brexit referendum would lead to a Brexit outcome?"
"I don't know that," Qiu Guoyu said. "Looking at the British pound exchange rate trend before yesterday, I was really sweating for that kid. But who would have thought... the outcome turned out to be like this today? Calculating based on the current British pound exchange rate, that kid has profited at least over 10 billion in this round of speculative trading in the British pound exchange rate market."
"How much?" Hearing the figure of 10 billion, Fang Xingyuan was completely shocked.
"At least a profit of 10 billion," Qiu Guoyu estimated. "I'm even calculating on the low side; the actual profit figure is probably much more."
"How could he profit so much?" Fang Xingyuan was a bit confused.
Qiu Guoyu said, "Mr. Fang might not be very familiar with the rules of the foreign exchange market. In forex trading, the contracts themselves carry leverage of ten times or even dozens of times, which is why the profits can be so exaggerated."
"It seems this kid is really going to make a name for himself with this one battle," Fang Xingyuan couldn't help but say.
"Yes," Qiu Guoyu nodded and said. "Seeing this rising star in the domestic financial industry about to transform into a giant, the wealth I've accumulated through a lifetime of hard work is less than what this kid profited from this single event in the British pound exchange rate market."
"I heard you invested a good amount of money in this kid, didn't you?" Fang Xingyuan said. "Given his way of doing things, since you invested a good amount in him, your share of the profits should not be small."
"Haha..." Qiu Guoyu laughed heartily and said, "What I care about isn't really these things. It's mainly that I feel our Chinese capital investing overseas has finally made a huge profit from international capital. In this round of short-selling in the British pound exchange rate market, I heard that kid also brought in Huayin International through the Huo family's connections.
Now, Huayin International has made a huge profit and exited the market.
That kid's future potential reputation and career development in the domestic financial industry have clearly expanded further.
After all, Huayin International, a domestic financial giant under the State-owned Assets Supervision and Administration Commission, still has considerable influence both domestically and internationally."
"Hmm," Fang Xingyuan nodded. "After this battle, that kid's future potential is indeed limitless."
"Old Fang, what are your thoughts on this kid's future?" Qiu Guoyu paused, then asked directly, "I heard that child Wanqing is quite fond of this kid."
Fang Xingyuan replied, "Let nature take its course. I have always rarely interfered with or concerned myself with young people's affairs."
"Alright then," Qiu Guoyu chuckled, having sensed Fang Xingyuan's tone. "Then we'll continue to observe and watch the development of these young people."
After speaking, Qiu Guoyu hung up the phone and turned his attention back to the British pound exchange rate chart.
As market trading hours continued to progress.
Amidst the announcement of final vote counts from subsequent polling areas, the British pound exchange rate continued to fall, and the trading volume on the board continued to increase.
At the same time, the gap between long and short positions in the market grew ever wider.
As more and more long positions in the market were forced to stop-loss and liquidate, the net open short positions in the market had already surpassed one million lots.
"New lows again and again! The referendum results haven't even officially come out yet, and the British pound exchange rate has already plunged 1800 points."
Observing that the British pound exchange rate continued to fall after hitting a 40-year low, someone among the retail investors still speculating in the market lamented.
"The 1.3200 level probably won't hold. It's not going to fall below 1.3000, is it?"
"Hard to say. The long positions in the market have completely collapsed."
"My goodness, the British pound exchange rate has already fallen by over 10% today! This is an exchange rate. What does a drop of over 10% mean?"
"We are truly witnessing history!"
"The long positions in the market must be dead beyond dead, right? All institutions that went long have been harvested."
"I tried to buy the dip three times, stopped loss three times. This trend is crazy... Is the impact of the Brexit referendum result really that significant? The exchange rate just crashed continuously."
"It's likely that only when the massive short positions in the market begin to gradually cover will the British pound exchange rate have a chance to rebound."
"Short covering in the market? By that time... most of the long positions would have been liquidated, right?"
"They're probably already mostly liquidated now, aren't they? Among the long positions that could hold out until now, perhaps only one in ten remains."
"Can we hold short positions for longer?"
"Definitely. I feel the British pound exchange rate will likely break below the 1.3000 mark today."
"Oh my god, the number of people supporting Brexit is already almost 500,000 ahead of those supporting remaining. The long positions in the market... basically have no hope of a reversal."
As retail investors speculating in the British pound exchange rate market debated fiercely and scrambled to cut losses on their long positions.
Facing a referendum result with virtually no suspense...
In the global financial market, corresponding asset prices, including the US dollar exchange rate, spot gold prices, and the euro exchange rate, as well as the stock and bond markets in various financial centers, were also deeply affected.
Spot gold surged by over 7%, and the euro exchange rate also plummeted by over 8%.
The performance of various national stock markets was similar.
Domestically, A-shares and Hong Kong stocks showed a clear nosedive; the Nikkei index, South Korean KOSPI, and various Southeast Asian country indices all followed suit.
At the same time, corresponding stock index futures, such as US stock index futures and European country stock index futures, also showed sharp declines.
"It's truly devastating. Stock index futures from various countries have also crashed."
At 10:21 AM, as the British pound exchange rate broke below 1.3200 and hit another new low, Li Jinshi, a member of the domestic Fushan faction of speculative funds, couldn't help but exclaim in the group chat.
"A Black Friday for the whole world," Chen Guiyun responded in the group, "a historical 'black swan' event."
"It's a pity that our short positions in this round of British pound speculation were closed too early," Li Jinshi sighed helplessly. "If we had held on until now, we could have made nearly 2 million US dollars."
"Who could have known it would turn out this way?" Liao Guoxiang said.
"However, Mr. Su, from Huayi Capital, certainly made a huge profit in this round of speculation on the UK referendum," Li Jinshi said. "I heard that the total number of short positions held by the fund product he manages amounts to hundreds of thousands of lots. Wouldn't that mean tens of billions, or even hundreds of billions, in profits?"
"There's nothing we can do; we can't be envious," Chen Guiyun said. "Previously, the British pound exchange rate kept showing signs of an upward breakout. At that time, I heard that the fund product managed by Mr. Su had unrealized losses as high as hundreds of millions of US dollars. If he could endure without stopping losses, then such profits now are well-deserved."
"I didn't expect Mr. Su to be so fierce in his investment operations in the global foreign exchange market," Liao Guoxiang said. "This time... his brilliance in the domestic financial industry will likely be impossible for anyone to obscure."
"The international financial market is still more brutal!" Li Jinshi exclaimed. "Just one massive gamble, and a person's fate is completely changed."
"But such opportunities aren't something ordinary people can seize," Chen Guiyun responded. "Didn't we see quite a few major capital institutions worldwide get liquidated and suffer huge losses this time?"
"That's true," Li Jinshi nodded slightly.
Meanwhile, both domestically and internationally, in places like Magic City and Harbor City, various financial institutions and individuals in the financial sector were speculating on how much money the "Huayi Chengyuan No. 1" flagship fund, managed by Su Yi, had made and how much profit it had reaped from the global capital markets in this British pound exchange rate investment operation.
At 10:37 AM, precisely when only a quarter of the UK Brexit vote count results remained to be announced.
The "Huayi Chengyuan No. 1" flagship fund, managed by Su Yi, finally completed the full closing and profit-taking operations on its more than 400,000 short positions.
"Mr. Su, according to the overall fund data after we completed the liquidation..." Qu Zecai, the trading team manager, reported to Su Yi immediately, "Our current fund capital size has reached 7.219 billion US dollars. Of this, excluding the principal, we collectively made a massive profit of approximately 6.2 billion US dollars in this round of operations, which is over 40 billion Hua currency."
As he spoke, Qu Zecai's entire voice trembled.
It took nearly two months to reap a profit of approximately 40 billion Hua currency from the international capital market.
This achievement, let alone being the peak of his personal career, is arguably the highest historical achievement for Chinese capital investing in global international financial markets throughout China's financial history.
When the fund's unrealized losses had previously reached hundreds of millions of US dollars.
At the time when the British pound exchange rate was above the 1.5300 level, showing signs of an imminent upward breakout and forming an extreme trend.
He had wavered more than once about the short-selling strategy formulated by Su Yi, and he had been terrified more than once.
But the final result...
...proved the correctness of Su Yi's short-selling strategy and demonstrated Su Yi's foresight.
This made him, at this very moment, unable to help but feel immense admiration for Su Yi, and even had to marvel at Su Yi's judgment in such high-stakes investments.
One must know that previously, when the fund's positions were on the verge of hitting the mandatory stop-loss line, bordering on liquidation.
He barely saw any signs of excessive tension or anxiety on Su Yi's face.
Such calm emotional control in investment trading, especially when involving such a massive amount of capital, is absolutely a skill possessed only by market trading masters.
This solidified his determination to continue working and developing at Huayi Capital.
It also strengthened his resolve to continue to conquer the international financial markets alongside Su Yi.
"Excellent!" Su Yi said with a smile after listening to Qu Zecai's report. "Everyone has worked hard these two months. Manager Qu, please transfer the 19 million US dollars from the fund account, beyond the 7.2 billion, to the company account.
This fractional amount will be used as special bonuses for this investment project over the past two months, distributed to all company employees who participated in this investment. Of course, I will have Manager Wang formulate a specific distribution plan then.
Also, please transfer the principal amount previously invested into my personal account.
All the loans we cobbled together back then now need to be repaid with principal and interest.
As for the remaining 6.2 billion US dollars, it will serve as reserve cash for the 'Huayi Chengyuan No. 1' flagship fund product, to be used for future investments in overseas financial markets."
"Understood," Qu Zecai responded, and immediately proceeded to follow Su Yi's instructions.
As for the other traders, upon hearing that Su Yi would use 19 million US dollars from the fund's profits to distribute as special bonuses, their emotions instantly became excited, even after having stayed up for 24 hours.
That's 19 million US dollars!
It should be noted that all employees of Huayi Capital's Harbor City branch at this time numbered less than 100 people.
Even if this bonus were distributed equally among every employee, each would receive at least 190,000 US dollars, which is equivalent to 1.33 million Hua currency.
How could a million-per-person bonus not excite and thrill everyone?
After all, isn't everyone working hard precisely to earn more money, more bonuses, and higher salaries?
"Thank you, Mr. Su!" Amidst everyone's extreme excitement, they all looked up and said in unison.
At this moment, all the traders couldn't help but feel an overwhelming enthusiasm to go through fire and water for Su Yi, dedicated to him body and soul, along with a deep sense of gratitude.
(End of chapter)