Since they are reborn, they must be supported by the school beauties.

Chapter 242 Eat two fish for one fish

After finishing the meeting at the company, it was almost time to meet with Shen Zhou, so Chen Cheng left the company and took a taxi to Jiangcheng Hotel.

On the way, he casually asked the taxi driver about the current taxi license plate market. The taxi driver complained bitterly, telling him that the price of the license plate had been almost halved from its peak, and was now around 130,000 to 140,000 yuan, and there were still not many people buying them.

The adjustment of the starting price is a done deal and will be officially implemented on New Year's Day. The issuance of additional quotas has also been announced. Although taxi drivers are protesting, it has had no effect. The evaluation of civilized cities is now the top priority. The city is determined to use taxis to crack down on the illegal three-wheeled vehicles running all over the streets.

Chen Cheng knew that if SARS hit in two months, the speculators in Wenzhou wouldn't be able to hold out and would dump their shares and leave, causing the price of the index to plummet to 30,000.

If Qin Jianshe had held out until then to sell, he would have lost everything.

Although he felt no guilt about making money from him, Chen Cheng still felt a pang of pity when he thought about how much money this guy was going to lose.

So he took out his phone and called Qin Jianshe.

Last time, Qin Jianshe said he wanted Chen Cheng to take back the quota, but Chen Cheng refused, so he gave up on Chen Cheng's line. However, in the meantime, he found a few other people and wanted to sell the company and the quota before the policy was released.

However, no one in the market can handle so many indicators. All speculators have stopped buying because they are afraid of being trapped. Occasionally, there are a few transactions, but they are mostly from individuals with genuine needs who buy indicators to drive taxis.

Qin Jianshe has hundreds of quotas in his hands, and there's no chance of selling them to a buyer with genuine housing needs. So he's been holding onto them and the price keeps dropping. Recently, he's even reached the point where he can't eat or sleep and is losing clumps of hair.

When he received Chen Cheng's call, he thought Chen Cheng wanted to buy at the bottom of the market, so he quickly asked him on the phone: "Xiao Chen, what's your decision? If you can give me a reasonable price, I'll sell all these quotas I have to you."

Chen Cheng asked curiously, "What's the reliable price Uncle Qin mentioned?"

"Seventeen thousand!"

Qin Jianshe pretended to be cheerful and said, "I lost tens of thousands on one indicator. You can hold onto it and wait for another opportunity. Anyway, you've already made so much profit. Buy it back and wait for the right opportunity. Maybe you can make another fortune when the market improves!"

Chen Cheng said with a smile, "Uncle Qin, I was in a taxi and just asked the driver. He said that now even at 130,000 to 140,000, you can't sell a license plate."

"Cough cough..."

Qin Jianshe was a little embarrassed. He coughed twice and said, "Isn't his... pessimism a bit too much? But I said that 170,000 is negotiable. If you really want it, a little less is not impossible."

Chen Cheng thought to himself, "It's a bit unwise of you to try to fool me now." So he smiled and said, "Uncle Qin, to be honest, I'm not very optimistic about the index market right now. I didn't call to buy the index you have, but to advise you to sell it as soon as possible, because I feel that the price of this index will continue to fall."

Qin Jianshe immediately retorted, "How could it possibly fall further? The city's policies have already been released, adjusting the starting price and issuing additional quotas. Everyone knows about these, so the current price has already bottomed out. Haven't you heard people say that when all the bad news is out, it's good news? All the bad news has been released, so from now on, there can only be good news. Therefore, the price will rise sooner or later."

Chen Cheng smiled and said, "Uncle Qin, I called you to kindly remind you that if you think the index can rise back up, you can hold it for a while longer and see. However, I would like to suggest that you sell as soon as possible."

Qin Jianshe was somewhat displeased and muttered, "Xiao Chen, you're a big shot, but you're really ruthless. I've already lost so much money, and you just casually told me to sell. Wouldn't that mean I'd lose tens of millions in one go?! With interest, I'd lose most of my life savings!"

Chen Cheng said helplessly, "Uncle Qin, I'm just sharing my opinion with you. If you don't agree, just pretend I didn't say anything."

Qin Jianshe said angrily, "Xiao Chen, I'm not going to beat around the bush with you. To be honest, I'm under a lot of financial pressure right now. I want to cut my losses and leave, but I don't want to lose too much. You've already made so much money with these quotas. If you have any conscience, why don't you give me a similar price to buy them back from me? That way, you can hold onto them and wait to make another profit. It would also help me get through this difficult time!"

Chen Cheng thought to himself, "I did make a profit, but we're all in business. I didn't lie to you or cheat you. The price was agreed upon by both of us. If you want me to help you out of this mess now, wouldn't I be the fool?"

So he simply refused, saying, "I'm sorry, Uncle Qin, I don't plan to accept any quotas."

Qin Jianshe snorted coldly: "Are you calling to tease me if you're not going to take them? Let me tell you, even if you don't take them, I'm not going to sell these quotas at a low price. I'll hold onto them for a few months, and the price will definitely rise back up! Don't forget, those people from Wencheng haven't left yet, and they'll definitely find a way to drive the price up again!"

Chen Cheng didn't expect him to be so stubborn. He had already said what he wanted to say, so he just hung up. But then he suddenly thought of a way to play and said with a smile, "Uncle Qin, if you want me to collect the quotas, I definitely can't. But since you really want to keep getting these quotas, how about you lend them to me for a few months? I can give you a very high interest rate."

"How many months can I lend it to you?"

Qin Jianshe was confused for a moment and asked in surprise, "What do you mean by 'lending you a few months'? How does it work?" Chen Cheng said, "It means you lend me all your quotas right now. I'll sell them first. After five months, I'll return 130% of the quotas you lent me. In other words, if you lend me 100 quotas, I'll return 130 to you after five months."

Short selling is not allowed in China's securities market, but in fact, all industries except securities can be shorted through actual actions.

If you are bearish on a certain industry, you can short sell in that industry, borrow the goods, sell them at a high price, and then buy them back at a low price to repay the loan.

For example, Chen Cheng knows that when SARS has the greatest impact next year, the price of taxi license plates in Jiangcheng will drop to 3 yuan, so he can short the license plate market.

The method of short selling is also very simple. If the actual transaction price of the indicator can be cleared at 12, then borrow a batch of indicators, sell them at 12, and buy them back and return them to these people when the indicator drops to 3 next year.

If Qin Jianshe lends him 100 quotas now, and he sells them all at a price 10,000 to 20,000 yuan lower than the market price, that is, 120,000 yuan, he can get 12 million yuan.

With 12 million in hand, when the quota is 30,000 each next April, we can buy back 130 and return them to Qin Jianshe, which will only cost 3.9 million, resulting in a net profit of 8 million.

Moreover, for someone like Qin Jianshe who has been holding onto his shares and waiting for them to come to a stop, using his quota to short sell actually helped him to some extent.

Because the price of future quotas will plummet, those who hold onto their quotas will also suffer devastating losses. When SARS takes effect and citizens resist public transportation, the price will crash to rock bottom, leaving them with no chance to escape.

If I don't lend him the quota to short sell, his 100 quotas will only be worth 3 million.

If he lends me the money to short sell, I can at least repay him with 130 quotas when the loan matures, and I'll still have an extra 900,000.

Qin Jianshe never expected Chen Cheng to have this kind of trick up his sleeve.

If I lend him 100 quotas now, he will give me an extra 30% after 5 months. What does that mean? The annualized interest rate is already over 60%.

In fact, Qin Jianshe did feel that there was still an opportunity in the quota market. If Chen Cheng was unwilling to buy the quota, then he could simply wait until the day he could turn things around.

Now that Chen Cheng is borrowing the quota and paying 30% interest, isn't this a good opportunity to make up for the loss?

If the market stabilizes next year and the benchmark market rises, and Chen Cheng gives me an extra 30%, then by combining both, I might be able to recover all the losses I made.

So he immediately asked Chen Cheng, "Xiao Chen, you said you'd give me 30% more quotas next year, but what are you going to use as collateral? What if you squander all the money and can't pay me back the quotas? What am I supposed to do then?"

Chen Cheng laughed and said, "That's easy. I'm going to meet with the boss of Lingzhou Pharmaceuticals for dinner soon. I'll persuade him to work with me on this, and have Lingzhou Pharmaceuticals vouch for it. If I can't pay you 130% of the quota when the contract expires, Lingzhou Pharmaceuticals will have to take responsibility."

Qin Jianshe couldn't believe it and said, "Why would Lingzhou Pharmaceutical endorse you?"

Chen Cheng laughed and said, "Of course I will give them a discount. Besides, since we've already started, we can't just do it with you. I'll contact a few speculators who hoard quotas. If we can gather 500 quotas, this is worth doing."

Shorting the index at a 130% interest rate upon maturity, conservatively estimated, would yield a profit of around 70,000 per index. With 500 indexes, that would amount to 35 million.

Moreover, this is a business with no initial investment.

As long as Lingzhou can vouch for it and these people dare to lend out the quotas, they can directly convert 500 quotas into more than 50 million.

If you're worried that no one will buy them, take another step back and just dump them all at 100,000 each, which would bring back 50 million.

He and Shen Zhou split the 50 million, and he didn't take any money himself. He gave all 50 million to Shen Zhou to prepare the raw materials for Banlangen.

With such ample funds, Lingzhou Pharmaceuticals will definitely be able to stage a revolutionary comeback. Not only will it make money, but it will also fulfill its performance targets. At that time, the 50 million yuan cost will be recovered along with the profits. Then, a small portion of the quota will be repurchased at an extremely low price, and the business will be completed without any cost. Moreover, it's a win-win situation.

(End of this chapter)