Chapter 659: Little Dow Futures

The next day, Populus euphratica returned to the deep sea from Xiangjiang.

He stayed in Xiangjiang for 10 days this time and did not go home during this period. Li Guixiang, Hu Zhiguang and Hu Yue have been here for three days.

"Yang Yang, you are really good. Xiangjiang is so close, but you didn't go home for ten days. I said, didn't something happen to you outside?"

In the afternoon, my sister Hu Yue saw an opportunity and pulled aside Hu Yang who had come home from get off work early.

No wonder she is suspicious, she has heard a lot about what kind of style rich men like nowadays.

"Sister! Where did you think you were going? I stayed in Xiangjiang for ten days this time, and it was related to the U.S. stock market. I had to get up in the middle of the night to read the market. How could I have the energy to run back and forth?"

Hu Yang smiled casually. He had done nothing wrong and of course he answered confidently.

He has been paying attention to the economic situation in North America recently. In his eyes, the data of Fannie and Freddie Bonds and Lehman Bank are very bad, and the possibility of thunder is increasing.

The subprime mortgage crisis began with the explosion of Fannie and Freddie's bonds, and spread across the world with the collapse of Lehman Bank. The North American financial market was naturally deeply affected.

Hu Yang’s purchase of put warrants on stocks and his purchase of short-selling ETFs on the Dow Jones Industrial Average were all based on this judgment.

"It's best to have nothing to do! Yang Yang, you are truly a good wife and mother, and you have to be worthy of me. Okay, I won't say any more. If I say too much, I'll be annoying."

Hu Yue was hesitant and stopped talking at the right time. Her brother was a very independent person. No matter what happened, it was enough to remind her once. She would not finish it endlessly.

"Sister, why don't you stay a few more days when you come here? Why did you hear mom say you are going back to Yangcheng tomorrow?"

Hu Yang would definitely not be angry with his sister, so he cooperated and changed the subject.

"You can't go back. Xiaoxi and your brother-in-law are at home."

Hu Yue now spends a lot of time cultivating Xiao Xi. She is a rich woman, and the real estate in her hands has increased in value very quickly as the real estate market heats up.

She is a billionaire in the true sense. Every day she lies still and a large amount of money falls on her head.

Fortunately, she and Ge Hongbing have a good attitude towards life. Ge Hongbing is in charge of the "White Angel Fund", and Hu Yue also participates in some charity activities from time to time, and does not let herself live like a fool waiting to die.

In the evening, the family had a happy meal.

Li Guixiang and Hu Zhiguang had been flying around Xiaoyi since they arrived at the deep sea. As for their son, they had to stand aside, which made Hu Yang feel a little bit dumbfounded.

After resting well for most of the day, Populus euphratica started a routine inspection starting from the next day.

He stayed in Shanghai for less than half a year, and after coming back, he went to Xiangjiang non-stop. It had been a long time since he had conducted in-depth research on various companies.

As the head of the Huijia Department, it is very dangerous if your daily work is just about reading and signing reports.

The first stop, Hu Yang came to Mingkang Communications.

"Mr. Hu, you are a rare visitor. Tell me how long it has been since you came to the company? Come on, let's go to the conference room. I'll ask the heads of each department to report to you on the company's production and operation."

The person standing downstairs of the company to greet Hu Yang was not Gao Mingkang, but Lu Yali, who had been staying in Europe all year round. This surprised Hu Yang somewhat.

Before he came, he just asked Wu Xinhui to make a routine phone call. The head of the administrative department who answered the phone did not mention the matter at that time.

"Sister Lu, are we two rare guests? You didn't even call me to tell me when you were coming back."

Hu Yang smiled and stepped forward to shake hands with Lu Yali, and then followed her to the conference room.

Lu Yali is both a partner and a friend of Hu Yang. The two met in Xijiang until the establishment of Mingkang Communications, and they experienced many things during this period.

In the past few years, Lu Yali has been away from home all year round, so the two of them have met very rarely.

However, at this time, the two of them could not care less about reminiscing about old times, and there were not many people standing in the conference room. They are the heads of various departments of the company, and they are responsible for comprehensively reporting the company's situation to Hu Yang today.

"Everyone, please sit down. Everyone knows Mr. Hu, and those who have never met him should have heard of it. I won't introduce him here. Next, everyone will start reporting on their work in order, starting with finance...

"

Lu Yali let Hu Yang take the main seat and got down to the main topic.

At present, Mingkang Communication's main business is still concentrated in communication products. In particular, the construction of base stations and 3G networks accounts for the majority of the company's revenue.

Another important business is smartphone and chip design. The mobile phone business accounts for about 25% of the company's total revenue.

"We have calculated that Mingkang Communications' revenue this year will exceed 100 billion yuan, and its net profit will exceed 10 billion yuan..."

The financial director finished his report and sat down.

Hu Yang couldn't help but clapped his hands several times and applauded the company's achievements.

Revenue reaching hundreds of billions is an important sign, which means that Mingkang Communications has truly entered the ranks of international giants.

Next, the heads of each department continued to speak and reported various tasks to Hu Yang.

In general, the development of Mingkang Communications has entered the fast lane. Its revenue has reached the level of 100 billion yuan. It may not take a few years for the company's revenue to exceed 500 billion yuan.

In the field of chip design, the company has completed the independent design of a series of chips such as mobile phone chips, radio frequency chips, and baseband chips, and has received great recognition from the market.

At present, all smart phones of Charming Electronics and Mincom Communication use the company's chips. Some domestic manufacturers have also adopted Mincom Communication's chip products. Globally, Mincom Communication is not inferior to GT Company in any way.

"I listened to everyone's speeches and was deeply encouraged. The company is developing well and has sufficient investment in technology research and development. Thank you for everyone's efforts."

After everyone finished reporting, Hu Yang recognized everyone's work achievements.

"However, the company still has a lot of room for growth in smartphones. To be honest, with the company's technical strength, the market share of smartphones should be much larger, but the reality is not satisfactory. I hope the company can pay attention to this

problems and improve them.

Mr. Lu, how about this? Let’s go to various departments later..."

Hu Yang is not fault-finding. The domestic sales of Mincom Communications’ smartphones have always been tepid.

The response in the European market was good, but it was only on par with fruit companies, and there was no new breakthrough in market share for a long time.

"Okay, everyone, go down and think more about Mr. Hu's request. We have the strongest technical strength in the field of smartphones in China, but we do not have the largest market share. I hope everyone can find a solution to the problem. The meeting is over...

..."

Lu Yali announced the adjournment of the meeting, and everyone walked out of the conference room one after another.

"Mr. Hu, would you like to sit in my office for a while first, or should you go directly to the various departments?"

Lu Yali has a smile on her face again. At Mingkang Communications, many people are more afraid of Lu Yali. Perhaps it is because she is more mysterious and spends less time in the company throughout the year.

"Let's go for a walk first. Let's have dinner together at noon. What do you think?"

Hu Yang hesitated for a moment. If we wanted to have dinner together, it would be better in the evening. At least we could have a few drinks.

However, his parents were still in the deep sea. He had left them to dry in Xiangjiang for several days before, and he didn't go back for dinner at night. It was not a good idea to come.

Lu Yali took a serious look at Populus euphratica and smiled sweetly:

"Let's not be polite. If you have something to do, just do your thing. When we are free these days, let's have dinner together one night. I also want to have a good chat with you."

Lu Yali has always been a smart woman, and she got a lot of information from Hu Yang's words. No matter what the reason is, Hu Yang seems to be very busy recently, so the meal can be postponed for a few days. There is no need to rush at noon.

Make a formality.

"That's fine, I'll treat you to a drink in a few days. However, you still need to have lunch. If I come to your place, you won't even ignore the food, right?"

Hu Yang didn't take it seriously. With his relationship with Lu Yali, he naturally wouldn't focus on formality.

Accompanied by Lu Yali, Hu Yang began to inspect various departments. He had a working meal with Lu Yali at noon, and it was not until before getting off work in the afternoon that he ended today's trip to Mingkang Communications.

In the following week, Hu Yang visited the headquarters of Charming Semiconductor, Charming Electronics, Ark Computer, Huijia International Investment (Deep Sea) Company, and the factories of Xintong International, Charming Semiconductor, and Oriental Technology located in the deep sea.

Overall, the situation in all aspects is quite good. The entire Huijia system seems to be thriving and has not suffered any decline due to the suppression of individual companies in North America.

"Boss, the U.S. stock market has shown a slight fluctuation during this period. The Dow Jones Industrial Average has returned to around 13,800 points after breaking through 14,000 points. Amazon's stock price peaked below $100 and fell back. As of yesterday

The closing price was $87.77."

On this day, Yu Hongbo came back from Xiangjiang to report to Hu Yang on the situation of US stocks.

According to the feedback from North America, the current market generally believes that the economic fundamentals of North America have not changed, and that the U.S. stock market has only entered a phased correction stage. After the adjustment is over, the U.S. stock market will hit new highs again and again.

Hu Yang sold 40 million shares of Amazon stock this time, and there is not much pressure to make up for it in the future, unless he misreads the market trend. But even if he misreads the market trend, he will only lose subsequent profits.

There is no issue of loss.

The maximum loss for the put option purchased was only US$230 million in premium, and Hu Yang did not take this loss to heart.

The current big position is the $3 billion Dow Triple Short ETF (the underlying target is the Dow Jones Industrial Average). Although it is tripled in leverage, the risk is not unlimited.

Calculating from 14,000 points, if the Dow rose by 10%, the ETF bought by Hu Yang would lose 30%. If the Dow rose by about one-third, Hu Yang's $3 billion would lose 100%.

Unlike stock index futures, ETFs are the same as buying fund shares, and they do not require payment of guarantees for enlarged transactions. In other words, theoretically, the ETFs bought are worthless, and the maximum loss is only the US$3 billion.

Today's Populus euphratica no longer gambles on high returns with unlimited risks, because there is no need.

When he reaches this level, the first thing that comes to his mind must be risk control. Only when the risks are controllable will he take a chance.

"Lao Yu, this is how these positions are. After you go back today, start buying Dow stock index futures in the evening and open short orders. Well, buy 100,000 lots first."

Dow futures are divided into two-month large Dow futures contracts and small Dow futures contracts.

For the large Dow futures contract, each point of the index's rise or fall is $10. For the small Dow futures contract, each point of the index's rise or fall is $5.

The Dow futures mentioned by Hu Yang and Yu Hongbo refer to the small Dow futures contract. This is because the trading volume of the "Big Dow" is small, while the trading of the "Small Dow" is active.

Based on the current Dow 13,800 points, each small-sized Dow futures contract is worth US$69,000, and the required margin is only US$500.

This is simply a leveraged transaction magnified countless times, and the risks involved are extremely high. Without continuous margin calls, there is a risk of liquidation at any time.
To be continued...