Assistant Zhuang Wei was on the phone just now and didn't explain clearly.
Su Yehao was also confused, thinking about speculating in futures, how could he end up in a situation where 130,000 tons of spot copper were delivered physically.
Wait until he finishes reading the documents in the mailbox.
One of the letters showed the trader's trading process, which allowed Su Yehao to figure out the real reason.
The trader indeed lost a large amount of money in the process of short selling, and the total amount was almost US$57 million.
Probably last month, in mid-July.
He has gone from idle to long, and has been losing money with his former short-selling allies, vividly demonstrating what it means to blindly follow the trend when prices rise.
The traders in Su Yehao's family office mainly competed with Japanese copper merchants. They probably felt that the rise in copper prices was about to end, so the copper merchants established huge short futures positions to hedge their own physical stocks to reduce potential losses.
risk.
When copper prices rise, they can make money from the spot market, and when copper prices fall, they can make money from the futures market. At least they won't lose too much on either end.
Wait until the option is delivered.
The traders under Su Yehao probably did not expect that those Japanese copper merchants would actually choose physical delivery.
It is probably because the copper merchants know that Su Yehao does not own any company that produces copper products, and they hope to recover some losses through private negotiations.
Su Yehao is not clear about the specific process yet, and the detailed report has not yet been sent to him.
However, looking at the specific transactions, some clues could be found, which allowed him to guess the general situation.
At its peak, it had lost more than $50 million.
Su Yehao would not believe that the trader's boss had no knowledge at all. His risk control department was not a decoration. Without the help of his boss to cover up, it would have been impossible to hide it from everyone's eyes.
Perhaps because he was afraid of being blamed, he simply broke the jar and walked all the way to the dark side.
Then prepare to make up for the loss by following the trend and going long, and then cover up this losing transaction. As long as the account is smoothed, there won't be much of a problem.
When I finally reported to Assistant Zhuang Wei, I lied a little bit more, saying that passively receiving goods was a proactive request for physical delivery, trying to turn a big deal into a trivial one.
If we get lucky and copper prices really rise further, the 130,000 tons of spot copper in hand will still have the opportunity to continue to appreciate.
From the results.
In the two-week long process, we did recover losses of about 20 million US dollars. If the Japanese copper merchants surrendered and did not choose physical delivery, they would probably make up for some more losses.
What has been lost has been lost, and holding people accountable is not the most important thing for the time being.
Su Yehao could vaguely guess that the copper merchants were betting that they did not need the physical copper. As for being unable to pay for it and eventually breaking the contract, it was definitely not within the scope of the other party's consideration.
After all, he is Su Yehao, worth tens of billions of dollars. I bet he can't afford more than 300 million dollars... Doesn't this mean his head is full of water?
The problem is neither big nor small.
Su Yehao remembered that during the subprime mortgage crisis in 2008, a trader from Société Générale made illegal transactions without authorization, which almost led to the bankruptcy of the entire bank.
Although this incident that happened under his hands did not lead to such serious consequences, it certainly cannot be taken lightly, otherwise other traders will follow suit. Although it is possible to help Su Yehao make a lot of money, the risk of causing him heavy losses is also very high.
high.
Competent traders inevitably need to have enough self-confidence. They earn money and receive bonuses, but the losses are borne by the company. This requires the establishment of rules and regulations to restrict their trading operations.
Compared with the trader himself, Su Yehao felt that the boss who helped him cover up should be punished more. It had little to do with the loss itself. The point was that such a big thing happened, but he didn't think of reporting it to his superiors.
Actually.
Even if someone told him before that he lost more than 50 million US dollars by trading futures, Su Yehao would probably laugh it off.
Others need success to prove themselves, but Su Yehao wants to use some investment failure cases to make his series of operations more authentic and credible.
All investment projects are 100% successful. This is a miracle that can only be accomplished by the God of Wealth himself. He is so dazzling now that he wants to pour some dirty water on himself, copy the test papers according to the answers, and deliberately correct a few wrong questions.
Covering is the same thing.
Linda Yun has been fishing since morning until now.
While Su Yehao was taking a lunch break, she also took a nap.
Sleepily, he chatted with Su Yehao for a while and asked in surprise: "Why did you buy so much copper, and then put it in the yard to build a pyramid for fun?"
"I asked you to study more, but you must herd pigs. The Egyptian pyramid is a large tomb, and it is of the same nature as our tomb bags. If this thing is placed in my home, why don't I be scolded by my grandfather and father?"
After Su Yehao finished speaking, he laughed first.
The older generation in the family are more superstitious than the others, and there are many local wealthy businessmen similar to them.
So much so that Wong Tai Sin even called him last time and asked him if those seaside villas at Kai Tak Cyberport were for sale, or if he could get a villa on King Crab Island. Hearing that tone, it was really not bad for the money.
It depends on how good your Feng Shui skills are. This is a separate matter, but Wong Tai Sin’s own life is definitely going well.
Su Yehao had seen photos on the Internet, and it was said that he had driven a Rolls-Royce Phantom and flirted with second- and third-tier models.
No wonder people always say that knowledge changes destiny. Mr. Feng Shui, who graduated from the University of Manchester and understands finance, is indeed different.
He continued: "Copper is a hard currency like gold. Just keep it in your hands for a while. The market is so good, and it is likely to continue to rise."
He didn't do much research on copper prices, but Su Yehao vaguely remembered that these days, the cable and enameled wire business was very profitable. There was a time when the richest man in their city was in the cable business.
Considering the huge demand for infrastructure construction in the mainland these days, it is a high probability event that copper prices will rise.
He still has idle funds on hand, and it's okay to store them in things for a period of time. But if he sells them immediately, the loss of more than 30 million US dollars will be a loss. It's better to be patient and wait and see for some time.
Speaking of copper, Su Yehao remembered iron ore.
He asked Linda Yun to go to the assistant's office and bring over investment information about Australian ores.
I had previously asked someone to invest in some Forticoo Metal stocks in Perth, Western Australia, through 5S Asset Management. As for giants like Rio Tinto and BHP Billiton, their market values are too high. Among them, BHP Billiton has a total market value of more than 50 billion U.S. dollars. It all depends.
There is no possibility of holding it.
Not only does Forticoo Metal lack funds, but its scale is not too big. When he frees up his hands, Su Yehao might try to acquire it directly and train it as a cash cow...