I'm back in 1990

Chapter 525: Multiple Ways of Trading

On the eve of her return to China, Zhang Yun had to process a large number of documents every day. Under her coordination, countless funds had been gathered in the United States, Hong Kong, Singapore, Dubai, London, Frankfurt, Paris and other places. This was in preparation for shorting the Nasdaq index, which was like a high-stakes gamble. However, Zhang Yun believed that her side had a high chance of winning.

Knowing the rules of survival in the financial market well, she has been cooperating extensively with major financial institutions and investment funds around the world since the second half of last year.

In the global financial market, when something reaches the size of Changhong Capital, it is bound to attract the attention of other financial investment funds or institutional giants. Therefore, with the idea of ​​making more friends and fewer enemies, Zhang Yun accepted the proposals of these financial investment funds and institutions to invest after communicating with Huang Xiaochuan.

These funds and institutions believed that Zhang Yun had an extremely strong financial investment vision and trading ability, so they all invested a large sum of money in her, allowing her to set up a large investment fund called "Hongyan Fund".

These investment funds and institutions include Blackstone Group, Carlyle Group, Bain Capital, BlackRock, Vanguard, Fidelity Investments, and T. Rowe Price Group. Of course, Changhong Capital (formerly Changhong Investment) is also among them, holding a significant stake. Temasek Holdings of Singapore is also included.

This is probably because Zhang Yun has Singaporean citizenship!

Zhang Yun naturally couldn't turn away Temasek, which came to her seeking cooperation, knowing that the Singapore government was behind Temasek.

So this time, Zhang Yun not only wants to operate her own fund to short the Nasdaq index, but also wants to bring the Hongyan Fund to short the Nasdaq index together. However, those investment institutions do not pay attention to her operation process, but only to their final returns.

Catherine didn't look up, continuing to flip through the documents, and asked, "Do I have any other plans for tomorrow night?"

Secretary Zhang Yun had the itinerary for the next three days all in her head, and she blurted it out without hesitation: "You've already made an appointment with Mr. Heinz Connery of Interactive Brokers for tomorrow night."

"I think I don't have any plans for lunch the day after tomorrow. Could you ask Mr. Rivera if we could have a simple working lunch together then, within an hour if possible?"

The secretary recalled the schedule for the day after tomorrow: "Okay, I'll make an appointment with Mr. Rivera right away."

To short the Nasdaq, you'll inevitably have to deal with these brokerage firms.

For example, world-renowned investment banks such as Goldman Sachs, JPMorgan Chase, and Morgan Stanley.

These investment banks offer over-the-counter financial derivatives or margin trading services to all their clients, so Zhang Yun naturally had to frequently contact the senior executives of these banks. Of course, clients like Zhang Yun were also the most valuable clients in the eyes of those investment banks, as they could bring them substantial profits.

Because this short-selling plan is quite large, Zhang Yun plans to use a variety of financial derivatives to carry out the operation.

For example, using inverse ETFs is a simple operation that does not require complicated accounts and can be bought and sold in ordinary stock accounts. During the holding period, the ETF will automatically achieve inverse returns through derivatives hedging. However, this requires opening a large number of ordinary stock accounts.

Another option is stock index futures or options trading. The advantage of this type of trading is that it is relatively flexible and the risk is relatively controllable.

The riskiest trading types are CFDs and leveraged ETFs. These methods were frequently used during the recent shorting of the Nasdaq, but they are only suitable for short-term trading. Using this type of trading requires precise judgment; otherwise, excessive leverage can lead to a margin call even with a 1% fluctuation.

As the saying goes, "an army marches on its stomach," and before implementing this plan, Changhong Capital and Hongyan Fund had already registered a large number of offshore companies, which in turn registered numerous other companies in the United States, the United Kingdom, Hong Kong, Singapore, and Dubai.

These countless companies then open stock or futures/options accounts in their respective countries of registration, with numerous intermediaries available. By the time it truly begins, the number of people involved, either directly or indirectly, will reach tens of thousands.

The reason for doing this is to minimize the uncontrollability of the law. For example, the United States prohibits short selling with high leverage through contracts for difference (CFDs), but other countries do not prohibit it. Therefore, if you want to short sell with CFDs, you can only do so in countries outside the United States.

Another method is to use multiple accounts to operate separately, breaking down the whole into smaller parts and then back into a whole.

Therefore, Zhang Sui will fully cooperate with Zhang Yun's operation in Hong Kong this time. She has already made preparations and is just waiting for Huang Xiaochuan's order. The moment Huang Xiaochuan's paper is published will be the moment Zhang Yun and Zhang Sui begin their operation.

Meanwhile, the Nasdaq was surging toward 5,000 points, and stock commentators and financial news outlets began hyping up the arrival of a bull market. This led countless investors to rush into the hot stock market, which in turn fueled the market frenzy and attracted even more investors.

Meanwhile, Huang Xiaochuan was leisurely playing with his two children in the yard. Although it was the dead of winter, the children were full of energy, and with their good nutrition, Huang Zeji and Huang Ruiying had plenty of energy to play outside.

Moreover, unlike other children who are bundled up in layers of clothing, they didn't seem to be wearing many layers. This is because their clothes contain a lot of cashmere and camel hair, so even though they weren't wearing many clothes, they were warm enough. In addition, their constant activity generated enough heat to keep them warm.

While Yu Xiang, the mother, was busy at the hospital, Huang Xiaochuan, a university teacher, had plenty of time to take care of his two children. This is where the value of Huang Xiaochuan's profession became apparent.

"Xiaoduo, don't go near the water, do you hear me?" Huang Xiaochuan stopped Huang Ruiying's dangerous actions from time to time.

Children are just as playful as they are curious. The small pond in the yard has gradually frozen over due to the continuous cold weather. However, you can see a lot of white bubbles under the ice, which means that the ice is very thin and brittle and will break if you step on it.

Although the pond is shallow, if you fall in, you'll definitely get soaked, and then Yu Xiang will surely blame Huang Xiaochuan for not taking good care of the child.

So, to avoid being nagged by Yu Xiang, Huang Xiaochuan, the old father, could only keep a close eye on the two little ones and guard them closely.

After letting his two children roam freely for a while, Huang Xiaochuan played a beanbag toss game with them for a bit. Huang Xiaochuan hadn't played this game in a long time, and playing it with his two children actually brought back his childlike spirit.

Since reconciling with Yu Xiang, it seems their relationship hasn't returned to what it used to be. However, it's understandable, given that they now have two sons born to Zhang Yun. It's no wonder that any woman would react the same way as Yu Xiang.

So Huang Xiaochuan stopped hoping for anything. Things were already as they were, so he just left it at that. To get back to normal, he would probably have to be reborn again.