"It really is quite a coincidence."
Fang Wanqing gently held Su Yi's hand and said with a smile,
"Why are you in Hong Kong?"
Su Yi replied,
"That's a long story. Oh, by the way, have you eaten? Last time in Modu, I promised to treat you to dinner, but then I was held up by family and work matters and couldn't find the time. Today, we coincidentally met, so if... Miss Fang happens to be free, why don't I host?"
"Alright,"
Fang Wanqing agreed readily.
"I was also here to eat anyway. Since Mr. Su has already said so much, I naturally can't refuse your offer. Oh... by the way, this is my colleague Dennis."
With that, Fang Wanqing briefly introduced her colleague.
"Hello!"
Su Yi shifted his gaze to the young foreign man beside Fang Wanqing and greeted him with a smile.
Then, he invited the two to be seated in the restaurant private room prepared by Wang Huaijin.
"It seems Mr. Su plans to make a big splash in Hong Kong."
After Su Yi briefly introduced everyone from the company at the table, Fang Wanqing said with a smile,
"Are you planning to establish a branch company in Hong Kong?"
Su Yi said,
"The branch company has already been prepared."
"Is Mr. Su also planning to develop asset management business in Hong Kong?"
Fang Wanqing continued to ask.
Su Yi nodded slightly and asked back,
"Is there anything wrong with that?"
Fang Wanqing said,
"There's nothing wrong with it, it's just that I think developing asset management business in Hong Kong might not be as easy as in the mainland, and investment business in the Hong Kong stock market, given its different liquidity compared to the A-share market, should be more difficult, right?"
"I haven't actually planned to invest in the Hong Kong stock market,"
Su Yi said with a smile.
As far as stock market investment business is concerned, in Su Yi's mind, the Hong Kong stock market is a marginal market with extremely poor liquidity, and there aren't many stocks truly worth investing in.
He wouldn't waste energy in a garbage market.
"So you're planning to... do offshore investment?"
Fang Wanqing realized and said.
Su Yi nodded slightly and said,
"I do plan to develop offshore investment business and test the waters of the international foreign exchange financial market."
"Oh, you're planning to develop in foreign exchange investment business?"
Fang Wanqing was a little surprised.
"Yes,"
Su Yi nodded.
"Has Mr. Su ever been involved in the foreign exchange trading market before?"
At this moment, Dennis, who had been sitting silently beside Fang Wanqing, suddenly asked.
Su Yi gently shook his head and said,
"I've had some exposure before, but I haven't deeply researched it."
"Then Mr. Su has considerable courage,"
Dennis said with a smile.
"As far as I know, the risks in the foreign exchange trading market should be much greater than in the stock market, and because foreign exchange transactions generally have leverage, they are subject to more information interference, and the difficulty of trading is also higher than stocks."
"Oh, is that so?"
Su Yi neither confirmed nor denied, asking,
"Does Mr. Dennis understand this area?"
Hearing Su Yi's question, Fang Wanqing smiled and replied on behalf of her colleague,
"Dennis is a hedge fund trader in our company's Global Financial Investment Business Department. His primary trading direction is also the foreign exchange trading market."
"I really didn't expect that..."
Su Yi was a little surprised.
He carefully looked at Dennis and said,
"Then, regarding the technology for foreign exchange financial market trading and relevant risk prevention, I'll have to consult Mr. Dennis more."
Core trader of the hedge fund in 'Aberdeen Asset' Group's Global Financial Investment Business Department.
Su Yi dared not underestimate him.
After all, for a global asset management giant like 'Aberdeen Asset,' he knew how strict their market trading department was in terms of recruiting traders and how high their requirements for individual capabilities were.
Even if the other party didn't have a 'rearview mirror' like him, knowing the general development direction of the global financial market, it was definitely still worth discussing in detail regarding technical exchange and risk control.
"Mr. Su is being too polite by saying consult,"
Dennis said.
"Miss Fang and I are classmates. She mentioned to me before that Mr. Su is very good at stock trading, a stock god of the Eastern nation, with a hundredfold actual performance within half a year. I actually have many questions about this, and I also want to communicate more with Mr. Su regarding stock investment."
"Of course,"
Su Yi said with a smile.
"I just didn't expect Mr. Dennis's Chinese to be so good."
"Thank you for the compliment, Mr. Su. I've been very interested in Chinese culture since childhood, and later studied in China for several years, so my Chinese is quite good,"
Dennis said.
"Miss Fang has a very high opinion of Mr. Su. She said you are a genius trader in the financial market..."
Su Yi said,
"That was just a temporary success, not continuously verified over time, so it doesn't count. By the way... in Mr. Dennis's opinion, are there any major investment or speculative opportunities in the current foreign exchange financial market?"
"I believe such opportunities exist at all times,"
Dennis said.
"But opportunities are common, yet not easy to grasp."
With that, the two began discussing numerous opportunities and trading matters in the international foreign exchange trading market, and also shared many ideas about future changes in trading models.
Among them, when Su Yi brought up 'quantitative trading'.
Dennis's eyes visibly lit up, believing that this would likely be the strongest auxiliary tool for trading in the future.
As the two delved deeper into their conversation.
Su Yi found that Dennis, right in front of him, was indeed a talent.
So, when dinner concluded, Su Yi couldn't help but say,
"Mr. Dennis has a very thorough understanding of the international foreign exchange financial market, and his insights into trading are also unique. I wonder what Mr. Dennis's future plans are? If there's an opportunity in the future... I hope we can cooperate and create a future together."
Dennis completely did not expect Su Yi to suddenly extend a cooperation invitation.
He replied with a smile,
"I appreciate Mr. Su's kindness, but for now, I'm quite happy with my current job. Perhaps when I have other ideas in the future, we might have an opportunity to cooperate."
"Alright then."
Su Yi nodded slightly and didn't say more.
"Su Yi, will you be staying for a while, or returning to Modu in a couple of days?"
At parting, Fang Wanqing suddenly asked.
Su Yi replied,
"I expect I'll be staying for a while."
"Great,"
Fang Wanqing said happily.
"Then, when you're free, I'll invite you for coffee. I have a few primary market projects, and... I'd like to ask you to give me some input and advice on them."
After speaking, Fang Wanqing didn't wait for Su Yi's response.
She waved to him and left in a taxi.
Afterwards, Su Yi checked into the Peninsula Hotel under Wang Huaijin's arrangements.
Following that, once Qu Zecai and all other members of the company's trading team had arrived, Su Yi convened an internal meeting with all employees of the branch company.
He finalized the establishment of the proprietary fund account for foreign exchange investment and the opening of related trading accounts.
All preparations for establishing positions were completed.
After the proprietary fund account was established, Su Yi named this company's proprietary fund product, which was invested in the foreign exchange trading market, 'Huayi Chengyuan No. 1' Fund Product.
The managers of this fund product were him and Qu Zecai, jointly.
Once everything was ready.
On Wednesday, May 11th, Su Yi began directing the trading team to establish positions.
Furthermore, to prevent extremely low-probability accidents, when setting up the trading accounts, he simultaneously selected over a dozen globally renowned market makers and dispersed 5 billion Chinese Yuan, approximately 700 million US dollars, among the major accounts of these market makers, to avoid being specifically tracked.
"Mr. Su, in which direction should we establish positions?"
Qu Zecai asked.
Su Yi stared at the exchange rate fluctuations of major global currencies at that moment and said,
"In this phase, we have only one goal: continuously short sell the British Pound, shorting the Pound's exchange rate."
"Shorting the British Pound?"
Qu Zecai exclaimed in surprise,
"But at this stage, the Pound's exchange rate is already at a low point."
According to his analysis, the global economic recovery was hindered, and to boost economic recovery, the Fed's pace of interest rate hikes had repeatedly stalled, with a clear trend of delaying the exit from loose monetary policy.
Under this situation, the US dollar could not maintain its strength indefinitely.
Conversely, regarding the British Pound.
Even though the UK's economic situation wasn't great, the Bank of England's determination to maintain exchange rate stability was very strong.
Moreover, the Pound's exchange rate was already at a historical low.
Shorting the Pound at a historical low, Qu Zecai thought Su Yi must be crazy.
Currently, after two consecutive years of continuous decline, the Pound's exchange rate had reached 1.47.
This level was basically equivalent to the exchange rate during the 2008 financial crisis.
Given that the Fed would likely continue loose monetary policy, and at the same time, the Bank of England would strongly support the exchange rate, continuously selling foreign currencies to maintain the exchange rate.
If they shorted the Pound's exchange rate, they would basically be going against major global asset management giants and hedge funds.
And even the Bank of England.
In Qu Zecai's view, doing so would be unlikely to yield much chance of success.
Su Yi, seeing Qu Zecai's inner doubts, smiled and said,
"Britain is no longer what it once was, and its internal crisis is more severe than what people perceive on the surface. Although the Fed has recently been dovish, with the marginal reduction of the QE program and persistent inflation, interest rate hikes are not impossible.
The strength of the US dollar currently shows no sign of ending, and it's difficult for it to end. Although the Pound's exchange rate has fallen to a historical low, in terms of economic fundamentals, its current exchange rate does not truly reflect the expected deterioration of its national economy. Therefore... overall, we have an opportunity."
"Then... alright."
Qu Zecai didn't entirely agree with Su Yi's logic.
But with Su Yi's mind made up, he had no choice but to hope that Su Yi would change his current investment strategy after experiencing setbacks.
"And for the position-building strategy?"
Qu Zecai paused, then asked again,
"What strategy should we follow to establish our positions?"
Su Yi's eyes gleamed as he said,
"Let's first concentrate on one market maker's account to establish a short position. As the saying goes, the best hunters always appear first in the form of prey. We need to create bait to lure those behemoths that dominate the foreign exchange financial market to bite."
"Okay."
Qu Zecai still didn't fully understand Su Yi's trading plan and asked again,
"For our initial position establishment, how much capital is appropriate?"
Su Yi said,
"One-twentieth of the total position, 35 million US dollars will be enough to attract a lot of attention."
"When establishing positions, should we still use standard contracts?"
Qu Zecai continued to ask.
Su Yi nodded slightly and said,
"Yes, proceed with short-selling operations according to the standard contracts set by the market makers."
"But standard contracts... have a 100x leverage,"
Qu Zecai said.
"Even if we invest 35 million US dollars in the first phase, the risk is not small."
According to standard contracts with 100x leverage.
Investing 35 million in capital would be equivalent to holding a contract market value of 3.5 billion US dollars.
With this contract market value, if the Pound's exchange rate fluctuates upwards by just 10% to above 1.60, they would lose over 350 million US dollars.
Su Yi said with a smile,
"As bait, it definitely needs to be as obvious and high-profile as possible. Let's establish positions according to this strategy first. Subsequent related operations and strategy arrangements, we will discuss after the first phase of position establishment is complete."
Although Su Yi already had a complete plan for the entire short-selling operation at this point.
However, this was not the time to reveal his hand.
"Understood, Mr. Su."
Qu Zecai was sweating profusely upon hearing Su Yi's aggressive operation.
But he knew that Su Yi was definitely not someone who would ignore risks and gamble recklessly.
So, after a brief silence, he began issuing relevant trading instructions to the traders.
Following the issuance of instructions...
From the major associated accounts opened by Su Yi, using the company name 'Huayi Capital,' with 'FXCM International,' a globally renowned market maker.
Hundreds of thousands, even millions, of US dollars.
Began flowing into the global foreign exchange trading market, rapidly transforming into standard contract orders for shorting the British Pound.
"Hello, Su Yi..."
As the traders continuously shorted the British Pound in the foreign exchange market according to Su Yi's instructed strategy, Fang Wanqing called him:
"There's an industry investment exchange evening event tonight, can you accompany me?"
"Investment exchange evening event?"
Su Yi was momentarily stunned.
Fang Wanqing said,
"It's a private networking circle within the industry. Generally speaking, if the organizer is influential, major investment companies and institutions in Hong Kong will show their respect. Of course, there are also many outsiders who join to network and make friends.
This time, it seems 'HSBC Bank' is leading as the host, so there should be many prominent figures from Hong Kong. As well as well-known personalities from Hong Kong's financial circle. You've just arrived in Hong Kong, and I think... there's no harm in going to experience it. What do you think?"
Seeing that Fang Wanqing had gone to such lengths, Su Yi smiled and responded,
"Since Miss Fang has invited me, I will respectfully accept."
"Alright then. After work later, wait for me. I'll go home and change."
After Fang Wanqing finished speaking, she hung up the phone.
Later, around 5 PM.
Fang Wanqing called him again, arranging a meeting point.
Su Yi arrived at the location given to him by Fang Wanqing and saw that Fang Wanqing was already waiting there.
It was May, and the sun was just right.
A gentle halo enveloped Fang Wanqing, who was dressed in a white evening gown, and for a moment, Su Yi was dazzled.
"Let's go,"
Fang Wanqing gave Su Yi a smile.
"It's rare to see you dressed like this,"
Su Yi said.
"It feels completely different from your usual demeanor."
In their previous many meetings, Fang Wanqing had given Su Yi the impression of a capable, intelligent, cheerful, and beautiful girl.
But now, he felt a gentle grace about Fang Wanqing, and the dignified elegance of a young lady from a prominent family.
"I usually rarely wear such long dresses,"
Fang Wanqing said.
"Mainly because I find them inconvenient. If it weren't for my aunt's insistent request, I wouldn't bother with all this trouble."
"Your aunt?"
Su Yi was taken aback, a bit confused, and said,
"Isn't your aunt Mrs. Lin? Why... did she also come to Hong Kong with you?"
Fang Wanqing smiled and said,
"She's not my biological aunt, but from a different branch of the family, though still very close to us. She married into a family here in Hong Kong years ago. When I came here for a long-term business trip, my second uncle worried I might feel lonely or inconvenienced, so he had me stay directly at my aunt's house."
"Oh, I see!"
Su Yi understood but didn't ask further.
The two walked for a few minutes, chatting and laughing, before arriving at the entrance of the hotel hosting the investment exchange evening event, organized by 'HSBC Bank'.
Fang Wanqing briefly greeted the people welcoming guests at the entrance.
Then, she led Su Yi into the hotel's evening event venue.
Upon entering the venue, Su Yi glanced around, seeing that it was quite elaborately arranged, and many people had already arrived.
Among them were young people and middle-aged people, Chinese and foreign friends, and no shortage of beauties and handsome men.
It seemed to be quite a grand evening event.
(End of Chapter)