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

Chapter 244 The Big Short

Chen Cheng's probability algorithm naturally cannot withstand rigorous calculation and scrutiny.

But sometimes, inflammatory rhetoric doesn't need careful consideration.

If the atmosphere is right, the emotional value is provided, and the promises are made, people can go crazy.

Shen Zhou felt a surge of excitement.

There's a strong urge to strip shirtless, throw the clothes on the ground, and shout, "Just do it!"

Shen Luning was also incredibly excited. She couldn't calculate the probability of success for the entire series of operations that Chen Cheng had described, but she felt that, setting aside all objective factors, there was simply no one around her and her father who could draw up such a blueprint for the entire series of operations.

Putting aside whether this building can be built, no one else can come up with Chen Cheng's idea and the design he wants.

It means to be imaginative, bold, decisive, and full of ups and downs.

She suddenly realized that this might be the strategic thinking of a genius.

While others were still thinking about how to conquer the village in front of them, he had already seen through this village an opportunity to seize the world.

Therefore, such an opportunity is absolutely once in a lifetime.

So she immediately looked at her father, Shen Zhou, afraid that he might back down and refuse Chen Cheng.

Shen Zhou pondered for a long time with a serious expression, then looked up and asked Chen Cheng a question: "Short selling is no problem, but I have two questions. First, will they accept the endorsement of Lingzhou Pharmaceutical? Second, the price of the index is falling all the way down. If we bring the index, can we sell it for 120,000?"

Chen Cheng laughed and said, "We need to call out those big players who are speculating on indicators and have a good talk with them face to face. The Uncle Qin Jianshe I mentioned earlier only has indicators, but no funds left. However, I know that those speculators from Wencheng definitely have a lot of funds, and they are certainly unwilling to accept such a large loss of profits. My idea is to focus on breaking through their defenses."

Shen Zhou asked, "Breaking through them means getting them to agree to lend us their quotas, right? But even if they agree to lend us their quotas, there's no guarantee we'll be able to sell them."

Chen Cheng smiled and said seriously, "Uncle, my idea is that we borrow his quota and then sell it to them at a low price! We'll keep taking advantage of this group of people!"

"This……"

Shen Zhou asked in shock, "Can this really work? Would they even agree to it?"

Chen Cheng laughed and said, "Since they are unwilling to sell now, it proves that they are still bullish. They must think that all the negative factors have been priced in, and as long as they hold on, the price will definitely continue to rise. Since we want to short, we have to borrow chips from those who are bullish. Do you agree with this logic?"

"Recognition."

Shen Zhou nodded heavily and said, "If someone wasn't a spectator, they would definitely be fighting desperately by now."

"Correct."

Chen Cheng smiled confidently and said, "Since they are bullish, we will give them an even greater opportunity. Don't they think the price of the indicator will definitely rise back? Okay, I will give them two opportunities to make money off me. The second opportunity is to lend me the indicator, and I will return it to them at 130% in four or five months. The second opportunity is that I will take the indicator with a market price of 140,000 and sell it back to them for 120,000. That means I will give them a potential profit margin of 20,000 yuan per indicator. The only condition is that they have to spend the money first."

"Think about it, if you lend me 100 quotas, I can get 130 quotas after five months. If you lend me 100 quotas and then use 12 million to buy them back, I will still give them 130 quotas after five months. Their original holding cost of 100 quotas will also be reduced by 20,000."

Shen Zhou understood Chen Cheng's meaning and asked him, "Do those people from Wencheng have that much money? If we borrow 500 quotas from them and then let them buy them back, that would be 6000 million."

Chen Cheng said, "Don't worry, these people who speculate on indicators can't possibly have a lot of money, but they can definitely scrape together tens of millions."

At this point, Chen Cheng said with some concern, "My only concern is whether they can accept the endorsement of Lingzhou Pharmaceutical. If we really want to get something out of them, I think we should be more ambitious and get a few hundred quotas directly. Even if the price is lower, like 10 yuan per quota, we can sell them back to them and get tens of millions of yuan in revenue."

Shen Zhou sighed, "The shares I hold in Lingzhou Pharmaceuticals now aren't even worth tens of millions anymore..."

“Yes…” Chen Cheng thought for a moment and smiled, “It’s alright. Let’s reach this agreement first. If neither of us has any objections, I can go and contact those people in Wencheng to see if they can approve of my operating model. If they do approve, but need particularly powerful people and backgrounds to endorse it, I can find those.”

When Chen Cheng said this, he was thinking about Yan Ruoxuan's father.

Since Yan Ruoxuan already knows about my borrowing money, I might as well be generous and invite her to participate in this short-selling operation.

In that case, I would come up with the idea, and Lingzhou Pharmaceutical and Yan Ruoxuan's father would jointly endorse it. The three parties would cooperate to take all the quotas from those Wenzhou people and short sell them. After short selling, we would sell them back to them. After three or four months, we could easily make tens of millions in profit.

He had originally considered using Renren.com, but then he thought about it again and realized that Renren.com didn't have much credibility. First of all, Renren.com had only been established for a short time, and no one knew its financial strength. Secondly, the speculators in Wencheng were all doing physical business, and their acceptance of the internet was not very high at this stage.

Yan Ruoxuan's father is more impressive. With a Rolls-Royce and a Bentley in the family, his net worth must be at least several hundred million.

At this moment, Shen Luning raised a question: "Chen Cheng, the reason you are so confident is because you firmly believe that the price of the index will definitely drop, right?"

"That's right!"

Shen Luning continued, "Is there a possibility that since we borrowed so many indicators from these people to short sell, they must be very afraid of the indicator prices falling. If they then try to force the price of the indicators up, could they force us to liquidate our positions?"

Chen Cheng smiled and said, "Sister Ning is right, it's possible, but it's only a theoretical possibility."

As he spoke, he continued to explain, "The total number of quotas available on the market, including those issued through additional issuance, is less than 20,000."

"It doesn't seem like a very large market size. If they really want to force short sellers to liquidate their positions, they can just drive up the price as much as possible."

"But even if there are only 10,000 or 20,000 quotas, to bring them all up to a price of over 100,000, the amount of capital required would be at least one billion yuan."

"I think the key point is that more policies will be introduced later. In order to deal with and completely replace tricycles, the number of taxis will definitely continue to grow."

"If there is a large-scale infectious disease in the future, citizens will panic and dare not take taxis at all. At that time, the large number of newly issued taxi drivers will instantly be in a situation of too many monks and too few porridges."

"Many people rely on their cars to support their families. When cars can't make money, more than half of the taxi drivers will compete to sell them. At that time, the market will collapse. How can the people of Wenzhou possibly take over?"

"If they can really come up with a billion yuan and gamble on their tens of millions, then they will definitely think about one question: what will they do after they take over all the quotas in Jiangcheng with so much money?"

"They've spent at least a billion yuan and obtained these indicators, and then what? What chance do they have besides waiting to die? When they put such a huge time bomb on their heads, and everyone can see it, they'll never find anyone to take over. Moreover, with a billion yuan tied up here, the financial cost of the funds themselves is also very high, probably several million yuan a month. They're so shrewd, how could they possibly risk losing more than they gain?"

"In other words, if the real estate market collapses someday, will developers be able to maintain housing prices by buying back all the houses?"

"Impossible, that's just their wishful thinking."

"I believe the basic business logic is that once the market crashes, the energy needed to save it is far beyond what those involved in the market possess. The same applies to taxi license plate quotas. Once the market crashes, it won't matter if all speculators unite or go bankrupt to drive up prices, because no one will be willing to buy them. No matter how high the price is driven, the license plate quota will just be stuck in their hands, and no one will take that risk."

"Moreover, I believe that the index market will not gradually decline in the future, but will plummet to the bottom at some point. When the day comes that all drivers want to sell as soon as possible, they will not have time to raise funds, and the market may crash in a single day."

"If the price drops below the opening price in a day, we'll buy at the bottom and get 130% of the indicators back in the shortest time. As long as we get enough shares immediately, it doesn't matter how much they push the price up afterwards, because our contract with them doesn't involve the amount of money, only the quantity of indicators. If we have enough indicators, we can fulfill the contract!"

After hearing this, Shen Zhou immediately slammed his fist on the table and said, "Let's do it! Xiao Chen! We'll do whatever you say! I think you're right! If this thing really collapses, even a god can't save it! We'll just make a profit from one cow. They can't possibly risk the entire farm to save just one cow!"

Shen Luning agreed, saying, "I have no more questions! Since you've considered everything so thoroughly, then you can handle everything, and we'll follow your instructions!"

Chen Cheng smiled and said, "Okay, let me first contact the people in Wencheng and see what they think. As long as they are interested, this matter can be pushed forward! Don't worry about the people who endorse it; I can provide enough goodwill to reassure them!"

(End of this chapter)