In the morning, Lu Ming stayed in his office and stared at the international foreign exchange quotes on his work computer screen, including some information pages that had not yet been closed.
Just yesterday, the U.S. index reached above $103 for the first time, and Lu Ming ordered Qi Weiping to sell all option contracts without hesitation.
The market wiped out everything without any pressure, and then the U.S. Index fell back to $102 today. It is no exaggeration to say that the short-term decline of the U.S. Index today was the result of Lu Ming's selling of option contracts.
The remaining options contracts in hand are basically exercised quickly after funds from various sources in the market take over. In other words, there is a volume of selling pressure close to 390 billion U.S. dollars. Such volume can even if the daily turnover is one trillion U.S. dollars.
The foreign exchange market is also at a huge level.
After investors from all walks of life in the market grabbed the options in Lu Ming's hands, the fastest and surest way to make a profit was to exercise the right immediately and buy the U.S. dollar index with a market value of $103 at a price of $94.2, and then go to the market to buy the U.S. dollar index with a market value of $103.
Sell at the price of the U.S. dollar, thereby taking advantage of the price difference.
In addition, the premium can also be traded directly, but investors who grabbed the orders from the option contracts sold by Lu Ming chose to exercise arbitrage. The reason is that the upward momentum of the premium has weakened, the risk of decline is huge, and the premium profit of the premium
They were all eaten by Lu Ming, and not many people are willing to bite the tail of the fish now.
Lu Ming's US$30 billion unilateral stud call options on the U.S. index increased by 119% in premiums. Excluding transaction costs, the overall average return was 113.27%, which is a net profit of US$33.9 billion.
At this point, after all positions have been liquidated, Lu Ming now holds US$63.9 billion in liquidity. Adding part of the cash flow lying in other accounts of Tiansheng QDIE, it has reached a liquidity scale of US$68.5 billion. There is no doubt that this is a
An extremely large amount of liquidity.
…
In the afternoon, a call came to Lu Ming's office landline. The caller was Deputy Director Wang of the Foreign Exchange Bureau.
"Comrade Lu Ming, are you paying attention to the situation in the foreign exchange market?"
"Of course!" Lu Ming, who was on the phone with him, nodded and replied while sitting at his desk: "Since the middle to late last month, the international short-selling army has been coming aggressively. They want to avenge the disastrous defeat years ago. This time they are rushing to take advantage of the situation.
Let the RMB break through the key integer level of 7.”
"The integer mark 7 must not be penetrated by the enemy. This is a position that must be defended!" Deputy Director Wang on the other end of the phone said it simply and neatly without any nonsense.
At this critical time of economic transformation, the concept of breaking 7 is completely different from the previous breakdown of 6.8 and 6.9.
Breaking 7 means that the RMB has returned to the 7 era many years ago, and falling below 7 is an intuitive visual data reflection of years of efforts to develop the economy and enhance comprehensive national strength.
If this key psychological barrier is penetrated by an opponent in one fell swoop, it will be as if years of efforts and development have been negated. Especially at this juncture, it will inevitably bring about extremely huge economic turmoil, and may even trigger panic runs. Once
The formation of positive feedback is likely to trigger systemic financial risks.
At that time, no one would have thought that the collapse of Lehman Brothers would become the trigger for a financial tsunami sweeping the world.
Holding the integer mark of 7 is equivalent to sending a signal to domestic and foreign markets that the country has the ability, foundation, confidence and determination to keep the RMB exchange rate at a stable and reasonable equilibrium water level range.
Therefore, the RMB exchange rate must not break below 7 nowadays. This is the final line of defense and the final bottom line in this currency war.
Lu Ming naturally knew this very well and replied: "Is there something important from Bureau Wang?"
A response came from the other end of the phone: "Comrade Lu Ming, I can give you an internal data that has not been released yet. Let's put it verbally. As of November 31, our foreign exchange reserves have decreased by -69.057 billion US dollars month-on-month.
This has been an accelerated decrease for five consecutive months, and the country’s total foreign exchange reserves have dropped to 3.05 trillion US dollars..."
Starting from July this year, the decline in domestic foreign exchange reserves has accelerated, increasing month by month. In July, it decreased by -4.105 billion U.S. dollars, in August, it was -15.89 billion U.S. dollars, in September, it was -18.728 billion U.S. dollars.
It was 45.727 billion U.S. dollars last month, and 69.057 billion U.S. dollars last month.
Lu Ming heard the content on the phone. It was obvious that the country did not want the scale of foreign exchange reserves to break the 3 trillion U.S. dollar mark. However, this did not mean that breaking this number meant that a crisis was coming. As long as it could provide liquidity to the market,
If you can withstand external risk shocks, there will be no problem.
The specific point is actually not important, and if it is broken, it will not affect the overall situation.
It's just that this is indeed a psychological critical point for most investors, and it would be best if it can't be broken.
Mr. Wang on the other end of the phone said: "I won't say any more nonsense. We hope you can participate in this currency defense war."
Director Wang also knew that Tiansheng Capital now had a lot of US dollars in its hands, so he mobilized this fund so that the foreign exchange reserves would not have to break the 3 trillion round number mark.
Lu Ming immediately responded with a smile: "It is obligatory!"
Director Wang was very relieved when he heard his reply. He was young and capable but also had a strong sense of family and country. This was really different from other profit-seeking capital.
"I heard that you have made a lot of U.S. dollars overseas recently. How much U.S. dollar liquidity does your company's offshore funds currently have? How much can be invested in this currency defense war?" Wang Ju asked again.
Lu Mingyan responded concisely and comprehensively: "Currently, I have 68.5 billion US dollars in liquidity, and all of it can be invested in this foreign exchange defense war!"
"What?"
When Deputy Director Wang heard this figure, he was shocked on the spot. After reacting, he quickly said: "Are you sure you have US$68.5 billion in liquidity? Why do you suddenly have so much extra money?"
I was really shocked!
Wang Bureau only knew that when he first faced off against international short sellers last year, Lu Ming had US$10 billion in liquidity, and then used domestic financial institutions to leverage US$40 billion of funds overseas.
During that 48-hour confrontation, Tiansheng Capital fought guerrillas in the offshore market and scooped up international hot money. While contributing to the foreign exchange war, it also made a lot of money from those international hot money.
Pen.
Earned at least over 10 billion US dollars!
Just over a year has passed, how come it has expanded to US$68.5 billion? This is without any leverage.
Lu Ming smiled and replied again: "To be honest, Tiansheng Capital's current overseas owned assets and managed LP assets total approximately US$110.08 billion, and the other US$41.58 billion, most of which are in the US stock market. In theory,
If there is a need for this foreign exchange defense war, I can sell more than 40 billion US dollars to cash in to support."
"But considering that the funds in the U.S. stock market are likely to be cut off by them, or even directly frozen for a reason to prevent my funds from flowing out to support, this is possible. Therefore, this potential uncertainty factor must be eliminated.
Then I can still quickly cash out by selling investments in the crude oil futures market and other non-North American markets, which can provide an additional $12.5 billion in liquidity, which is more than $80 billion in liquidity."
After finishing speaking, it took a while for Bureau Wang on the other end of the phone to respond: "Comrade Lu Ming, you gave me a big surprise. How did you earn it?"
Lu Ming said with a smile: "Isn't the U.S. dollar index getting stronger? You can't make money if you let it go. So I took a one-way move more than three months ago, but I didn't expect it to double by accident."
Ah this...
Today’s young people…
Wang Ju was really dumbfounded and speechless. He didn't know how to reply to his words for a moment.
