Chapter 194 Testing the waters of Hang Seng Index futures

After breakfast, I hailed a taxi in front of the Grand Hyatt Hotel.

"Go to East Asia Securities..."

Through the car window, Hu Yang felt the busyness of people during the morning rush hour.

"Today is a turning point, for me and for everyone else."

For some reason, he suddenly had such an idea in his mind.

Arriving at East Asia Securities Company, Han Wen paid the fare, and Hu Yang and others got off the bus.

This securities brokerage company was introduced to Hu Yang by Chen Jialin. When he walked in and asked the front desk staff, the chubby Manager Niu came out quickly.

"It's Mr. Hu. Nice to meet you. Mr. Chen called me. I came to the company early today just to wait for you. Everyone, please come in."

Hu Yang stepped forward and exchanged greetings with Manager Niu. The two exchanged business cards, and Manager Niu took Hu Yang to open an account.

Although Hu Yang does not have resident status in Xiangjiang, he has a legal company in Xiangjiang and opening an account went smoothly.

"Mr. Hu, you said you want to trade Hang Seng Index futures? Originally, doing this requires capital verification in advance, but with Mr. Chen's introduction, this is exempted. I don't know what kind of broker you need. I'm sorry.

Help you arrange it."

There must be a broker, but the type is different.

One type is discretionary trading, that is, whether buying or selling, the broker has the final say and the broker helps the client make the transaction.

The second category is partial entrusted transactions. Buying and selling are judged by the broker. However, during the actual operation, the customer's opinion must be asked in advance, and the operation can only be carried out if the customer agrees.

The third category is the customer's independent transaction. The customer decides whether to buy or sell. The customer conducts the transaction himself or calls the broker to do the transaction on his behalf.

"Manager Niu, I know a little bit about securities and futures. I'd better trade on my own."

It was impossible for Hu Yang to entrust full power to the economic man, so he chose the third type.

"That's fine, too."

Manager Niu has been in this industry for many years, and without hesitation, he introduced a senior agent to Hu Yang.

"Let's do this for today. Thank you, Manager Niu, for taking care of me."

Hu Yang also took a look with his broker just now. At the opening of this month, the Hang Seng Index was at 0.0, and the direction is currently unclear.

The broker's surname is Yu. His advice to Hu Yang is to consider opening a long position. He believes that there is still a lot of room for the market to rise.

Hu Yang did not express his position and soon left East Asia Securities with Liang Shuqi and Han Wen.

"I'm going to Sumitomo Mitsui Banking Corporation next. Qiqi, if you have anything to do, you can go and do your work first. Let's have dinner together in the evening."

Hu Yang was going to discuss a business with the bank later. He was afraid that Liang Shuqi would wait too long, so he asked her not to go with him.

"Well, that's fine, then I won't delay your business. I'll call you in the afternoon and I'll be at the hotel before get off work."

Liang Shuqi also felt that it was not appropriate for her to follow Hu Yang to the bank, so she took a taxi alone and went ahead.

Hu Yang then came to the bank with Han Wen.

"Sir, how can I help you?"

Hu Yang is a VIP customer of this bank. All business can enjoy one-to-one service in the VIP room, and there is no need to wait in line in the lobby.

"I need to sell some US dollars and buy some Hong Kong dollars. Is that okay?"

Hu Yang plans to do Hang Seng Index futures, so of course he needs Hong Kong dollars.

"No problem, let me check for you. Well, today's exchange rate is 7.415. I wonder how much you are going to exchange, sir?"

The account specialist at the bank is gentle and polite, making me feel very comfortable.

Previously, Huijia Trading had US$106 million on its books. After excluding some daily expenses and taxes, there was still US$105 million left.

Hu Yang decided to exchange 60 million US dollars first, and soon he got 444.9 million Hong Kong dollars.

All these Hong Kong dollar Populus euphratica were transferred to the margin account of the securities company, and then they waited for the opportunity.

"Brother Hu, do you really want to speculate in Hang Seng Index futures? That thing is very risky. My old man has given me a strict order a long time ago and I will never touch it."

At noon, Chen Jialin and Hu Yang had dinner together. In fact, when Hu Yang asked him to help introduce a securities brokerage company, his heart was already beating.

In a sense, what Chen Jialin said makes sense.

Not to mention ordinary people, even elites in the industry dare not say that they will definitely win if they trade futures. Futures are more of a means of hedging used by large institutions, rather than simply gambling on luck.

Hu Yang had dabbled in stocks, futures, futures, etc. in his previous life, and he had specialized in this knowledge for a long time. The financial crisis that swept across Asia was regarded as a classic case and appeared in many textbooks.

Hu Yang is no stranger to this period of history, especially the historical events before and after the Hang Seng Index Defense War, as well as several key points of the Hang Seng Index. He has a deep memory.

For example, July 2, 1997 is generally regarded as the starting point of the Asian financial crisis. Hu Yang still remembers the Hang Seng Index this month. He remembers that the Hang Seng Index reached a new historical high this month.

"Don't worry, I'm just playing for fun, I won't put all my wealth in. Besides, Mr. Chen, have you forgotten what I do? Anyone who invests is no stranger to stocks and futures."

Hu Yang's explanation was not convincing at all, but after Chen Jialin tried to persuade him a few words and saw that Hu Yang's attitude was very firm, he stopped talking.

Hey, I wonder if Populus euphratica has become swollen. It dares to play with anything and is not afraid of damaging itself?

"I plan to go back to the deep sea tomorrow. Brother Hu, what about you?"

There are still many things waiting for Chen Jialin at Nushi Technology, and he really doesn't have as much leisure as Hu Yang.

"I'll stay a few more days, you can go first." Hu Yang needs to familiarize himself with the trend of the Hang Seng Index in the past few days, and he also has other things. "Mr. Chen, Huijia Trading needs to set up a shelf. I want to rent a place."

We will build an office building and hire a few more employees.”

Huijia Trading now has a lot of funds in its account and also has business activities. For example, at the beginning of the year, it sold Sony's "VCD core components" to domestic manufacturers.

This company should be utilized, so he rented a small office building in Sai Wan, hired two part-time financial staff, a business manager, and also found a long-term lawyer.

During most of the period, Hu Yang was staring at the Hang Seng Index. However, the index did not advance all the way as most people expected, but seemed to be about to pull back.

"Mr. Hu, the Hang Seng Index has fallen below 14,700 points. Previously bullish institutions have said that the correction may continue for a period of time."

Hu Yang's securities broker called and reported a new situation.

"Mr. Yu, I now authorize you to operate. You help me open a long position at 14600 points, and the quantity is 5,000 lots."

Hu Yang immediately realized that the opportunity he had been waiting for had come, and without any hesitation, he gave the securities broker a trading order.

"Okay, I'll do it right away."

The broker surnamed Yu felt that a huge easter egg had hit him, and he was so beautiful that he didn’t want it. Such a large transaction volume and this month’s performance were enough!

5,000 Hang Seng Index futures contracts may not sound like much, but in fact the wealth they represent is terrifying.

According to the trading rules, each point of the Hang Seng Index is 50 Hong Kong dollars. So, how much is one Hang Seng Index futures contract? It is the number obtained by multiplying the current index by 50 Hong Kong dollars.

For example, if Hu Yang opens a long position on the Hang Seng Index at 14,600, then his one contract is 14,600 times 50 Hong Kong dollars = 730,000 Hong Kong dollars.

One contract is HK$730,000, and 5,000 contracts is HK$3.65 billion.

However, index futures trading is conducted on a margin basis. Currently, to trade Hang Seng Index futures, you only need to pay a 10% margin, which means that Populus euphratica needs to invest HK$365 million.

Otherwise Chen Jialin said that the risk is high, this is a typical case of fighting for ten.

"Mr. Yu, please tell me when the Hang Seng Index breaks through 16,000 points."

After buying 5,000 long orders at 14,600 points, Hu Yang left Xiangjiang. He could not stay here forever, and there was no need.

Han Wen did not go back with Hu Yang this time. In name, he is now an employee of Huijia Trading in Xiangjiang. His task is to obtain a local driver's license in Xiangjiang and buy a car.

In the future, Populus euphratica will travel to and from the mainland and Xiangjiang a lot, so we can't bother Chen Jialin every time. It will be very inconvenient without a car.

At the end of July, Hu Yang received a call from a securities broker in Yangcheng, and the Hang Seng Index indeed exceeded 16,000 points.

Throughout July, the trend of the Hang Seng Index was still good. At the end of the month, the price hit a new monthly high, and the index closed at 0.

Hu Yang did not wait for the settlement date of the July contract and sold all the Hang Seng Index futures contracts at the index point of 16,200.

This order was originally a test by Populus Hu, but the effect was very satisfactory. He opened a long position on the Hang Seng Index at 14,600 points. By the time he sold it, the index had risen by exactly 1,600 points.

If you open a long position and the index rises, you will of course make a profit.

The calculation of profit is also very simple. He earned 1,600 points on the Hang Seng Index and owned 5,000 futures contracts, which means his profit = 1,600*5,000*50 Hong Kong dollars, and the resulting figure is 400 million Hong Kong dollars.

In almost a month, Populus euphratica made a profit of HK$400 million, which was simply unbelievable to Chen Jialin.

"No, Brother Hu, what kind of company do you have if you have this ability? With the speed you make money, you can kill a lot of rich people every minute. Ahem, why don't you take me to play with you?"

Chen Jialin came to Hu Yang's office today just for this matter.

This month, Chen Jialin has been asking Hu Yang about the situation of Hang Seng Index futures. It’s not that he is too gossipy, but he is worried that Hu Yang will lose everything.

Unexpectedly, Populus euphratica made hundreds of millions in one month.

"It's okay to take you to play, but do you have any cash? Let's agree first. The funds from Nishite Technology cannot be misappropriated. If you dare to misappropriate it, your father will break your legs without me taking action."
Chapter completed!