My Age of Investment

After asking Stephen to take care of the affairs of Liverpool Football Club, Xia Jingxing calmly waited for the news in London.

The Royal Bank of Scotland holds hundreds of millions of pounds of Liverpool's debt, has collected a lot of money from the loan agreement written in black and white, and is the second largest bank in the country. There is no reason why the lawsuit cannot be won. He does not need to be too concerned about it. worry.

Taking advantage of his free time, Xia Jingxing listened to Li Yaozu's work report.

“As of yesterday, December 3, the spot price of London gold was US$1,207.39 per ounce.

We started entering the market in mid-April and conducted the first round of long positions. The average price for opening a position was US$880 per ounce..."

In a quiet conference room, Li Yaozu showed Xia Jingxing pictures of trading operations.

The London office currently manages US$10 billion in Vision Capital funds, all of which are newly raised external funds this year. Xia Jingxing’s personal funds are no longer involved.

According to Xia Jingxing's arrangement, Li Yaozu's team began to do spot gold on a large scale this year, accompanied by numerous short sales. All were short-term operations of fast in and fast out, and occasionally they held positions overnight.

One lot of London gold is 100 ounces. If the spot price changes by US$1, the profit or loss per lot is US$100, so many people mistakenly think it is 100 times leverage.

In fact, leverage is not calculated this way. The current price of London gold is multiplied by 100, which is the actual value of one lot of London gold, and then divided by the margin collected by the broker. This is the real leverage multiple, which is about 50-100 times. between.

Taking the first round of long trading by Li Yaozu's team as an example, the actual value of one hand of London gold was US$88,000, and US$1,760 was paid as a deposit, so the leverage was 50 times.

Every time the spot price fluctuates by 1 US dollar, the profit and loss per lot is 100 US dollars. If the spot gold price drops by 17.6 US dollars, the margin will be lost, and the only option is to replenish the margin in advance or face the tragic situation of liquidation.

Under normal circumstances when there is no major incident, the price of spot gold fluctuates relatively little, with a daily increase or decrease of only a few tenths or one point. There is still a certain safe distance from the 2% increase or decrease allowed by 50 times leverage. Moreover, the London office has plenty of cash on hand and can make margin calls at any time, so liquidations rarely happen.

However, losses are unavoidable in short-term trading, and no one is a fairy. No one can predict the daily or even hourly price trend of spot gold.

Xia Jingxing looked at several sets of trading pictures, all showing losses and profits, and couldn't help but frown.

Fortunately, the London office has divided its traders into more than a dozen trading groups. While diversifying trading funds, it also disperses trading risks and avoids placing money on one team or even one person.

Although this year is a bull market for gold, the price of gold also shows an ups and downs trend of "rising today, falling tomorrow, rising again the day after tomorrow, falling again the day after tomorrow." It is not a one-sided one-way rise, so sometimes it has to Carry out short selling operations.

"Well, this trading team is good. The amount of funds from US$500 million has been raised to US$1 billion. After half a year, the rate of return has more than doubled."

"This group is not bad, with a 50% return rate."

"This one is close. The rate of return is only 20%, but it is still qualified."

…

Xia Jingxing commented while watching. The profitability of each trading group was good or bad, but basically they all made money. There were also two or three trading groups that did not make any money, but lost money.

Xia Jingxing did not criticize. He believed that Li Yaozu knew how to deal with these "money-losing goods."

Trading is so cruel, survival of the fittest.

Maybe the groups that failed in their investments were not really mediocre in ability, but they just failed to seize the opportunity.

But the company is not a charity and has no extra opportunities to give

Staring at the market every day, losing money and making profits every day, is indeed a test of a trader's mentality.

Success or failure doesn't mean anything at the moment, but this year is coming to an end soon, and it's time to settle the general ledger. The cumulative returns of other groups are all positive, while the groups with negative returns are destined to be punished, let alone the end of the year. Even if you win the prize, whether you can keep your job or not is still a question.

"Xia Sheng, our 5 billion US dollars of funds have been allocated to 15 trading groups for management, long and short London spot gold.

Among them, 12 trading groups have positive return rates, one group has no loss or profit, and two groups have negative return rates.

Calculated by the entire London Gold team, this year’s cumulative return rate is 41.2%, with a net income of US$2.06 billion.

If it weren't for the three groups holding back, the net income would have been hundreds of millions more.

So I plan to reorganize and optimize these three groups. "

Although Xia Jingxing did not express his position, Li Yaozu had already stated his plan in advance.

Xia Jingxing smiled and said, "Don't get too hung up on the flaws. It's normal for a team to have good and bad moments.

As long as the entire big team performs well, it's fine. As for the three groups, it's up to you. "

Li Yaozu nodded, and then reported on the investment performance of the New York Gold Team.

Unlike London spot gold, New York gold is a futures contract. What Li Yaozu's team purchased are August forward contracts, which will not be delivered until the 25th of this month.

However, the income has basically been locked in. The long principal of US$5 billion multiplied by 5 times leverage, and then multiplied by the 37% increase in New York gold, the income is approximately US$9.25 billion.

After deducting some handling fees, financing interest, etc., there should be a net income of US$9 billion.

The combined income of the two gold trading teams of London Gold and New York Gold this year is approximately US$11 billion, which is a return rate of 110% compared to the principal of US$10 billion.

It can't compare with last year's and the year before last's returns of three to five times or more than ten times, but the returns are already very generous.

And because the principal base is relatively large, even if the yield is not very high, the absolute value is still very impressive.

After listening to Li Yaozu's work report, Xia Jingxing felt confident.

Although he did not invest his own funds this time, Vision Capital still had a share of the profits when it made money.

Including the stock price rebound dividends from Liu Hai and Jiang Ping's team's investment in U.S. stocks, he has steadily earned billions of dollars this year.

Compared with the money he spent this year, several billion dollars is not too much, but it can slightly fill the personal wallet that has become somewhat dry.

In acquiring Canon and Nikon's photolithography machine business, Daxia Capital took the lion's share.

If you do the math, your private wallet only has over 10 billion US dollars.

There are still several tough battles to be fought in LCD panels, semiconductors, photolithography machines, etc. Xia Jingxing's phobia of insufficient firepower is vaguely about to attack again.

…………

…………

Xia Jingxing stayed in London for a few days. Fu Jixun, who learned that his boss had arrived in the UK, hurriedly came from Germany and brought back good news.

"Mr. Xia, the Qimonda matter has basically been settled. The German government attaches great importance to and welcomes the arrival of Xinxin Group.

With the help of the German government, Qimonda's core assets, including five 300-meter fabs, 12,000 employees, and countless patents will be transferred to us.

Oh, no, Qimonda has been bankrupt for more than half a year. Except for the factory and patents, the employee turnover is very serious.

The top priority is to quickly recall Qimonda employees and resume production.

This is also an additional requirement put forward by the German government, hoping that Xinxin Group can stabilize employment and rejuvenate Qimonda. "

Xia Jingxing nodded, "This matter should be done sooner rather than later. Don't be in a hurry to return to Singapore and sort out these things before we talk about it.

By the way, what about the purchase price? How much does Qimonda's creditor ask for? "

"The condition of the bankruptcy administrator is that New Core Group assumes Qimonda's debt of US$2 billion, and Infineon, which holds 77.5% of Qimonda's shares, also recognizes this transaction plan."

Xia Jingxing smiled and said, "It's not like we have much debt. It's only 2 billion US dollars. Anyway, we now have a lot of debt and don't have to worry about it."

Fu Jixun gritted his teeth and reminded: "Debts are actually small things, the key is losses!

Qimonda suffered a loss of US$4.489 billion in 2008. We took it over and if we want to restore it to normal operation and turn it into a profit, we must be prepared to suffer a loss of at least US$8 billion.

Including US$2 billion in debt, a total investment of more than US$10 billion is needed to save Qimonda.

This is also the main reason why the German government, Infineon and even other storage chip manufacturers are sitting on the sidelines.

The price required to take over Qimonda is too high and not worth it in the eyes of many people. "

“It’s enough that it’s worthwhile in our eyes!”

Xia Jingxing said categorically that if it wasn't a pile of junk, it wouldn't be New Core Group's turn to collect the scraps.

Is it expensive to spend 10 billion US dollars to buy an opportunity for the rise of China/Singapore's storage chips, to buy a knife that will continuously bleed Samsung, and to buy a stable supplier for the revitalization of the industry?

It may be a bit expensive right now, but looking into the future, it will definitely be worth it!

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