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

Chapter 245 You're all bullish, I'm bearish

Ever since Chen Cheng mentioned the matter of borrowing quotas, Qin Jianshe has been hoping that it would be implemented as soon as possible.

However, after Chen Cheng and Shen Zhou finished their meal, they did not contact him. Instead, they planned to contact the businesswoman from Wencheng who had called earlier to ask him to collect quotas.

Chen Cheng didn't think much of the hundred or so quotas Qin Jianshe had. Since they were going to do it, they should do it on a bigger scale. Cooperating with both the big short sellers and the big bulls would make for a good story.

The businesswoman from Wencheng said her surname was Qi, so Chen Cheng saved "Ms. Qi" in his contacts. On his way back, he called her back.

When the call connected, the other party was also somewhat surprised: "Mr. Chen, why are you contacting me suddenly at this time? If I remember correctly, you cleared out your positions at the peak a long time ago, right?"

Chen Cheng said with a smile, "I've cleared out the market, but I still want to do some more quota trading."

The other party asked curiously, "Mr. Chen, do you want to collect another batch of quotas?"

"That's it."

Chen Cheng asked her with a smile, "How many quotas does President Qi have left? Have you considered selling any?"

The other party chuckled and said, "If Mr. Chen is trying to buy at rock-bottom prices here, I'm afraid I'll have to disappoint you. I'm not planning to sell any of these quotas for now; I intend to hold onto them for a while longer and see how they go."

The city's policy came suddenly, catching all the Wenzhou businessmen involved in speculating on the indicators off guard.

They had already made hundreds of millions in profits, but overnight most of them were cut off.

Their views on the future market trend are similar to Qin Jianshe's. They believe that the exhaustion of negative factors is a positive sign, and even if the index market temporarily oscillates around 130,000 to 140,000, it will definitely move upward in the future.

At this point, they certainly wouldn't want to give up most of their profits and leave the market. They all hope to wait a little longer, at least until the price returns to the tens or even hundreds of thousands before cashing out.

So when the businesswoman surnamed Qi received Chen Cheng's call, she assumed that Chen Cheng wanted to buy the quota, so she wasn't interested at all.

Chen Cheng was straightforward, smiling as he said, "President Qi, I don't want to take your quota with money; I want to borrow your quota."

"borrow?"

The other party was quite surprised.

Chen Cheng then repeated the conditions he had discussed with Qin Jianshe to the businesswoman from Wencheng.

Then he added, "I need a large quantity. You can discuss it with your fellow villagers. I can provide sufficient goodwill as a guarantee, so you don't need to worry about my ability to fulfill the contract."

The businesswoman from Wencheng was worldly-wise. After listening, she immediately said, "Mr. Chen, are you trying to short the index market?"

Chen Cheng said straightforwardly, "That's right, well, let's not beat around the bush. I just want to try shorting a wave. Anyway, I've already made money, so I'm confident. At worst, I can just lose all my profits."

The other party said calmly, "Mr. Chen, we have different views. You want to short sell, but I am firmly bullish. If it were any other business, I would definitely not hesitate to accept such good terms. However, the Jiangcheng taxi market is still too small. If you really dump a large number of quotas, the prices that have already stabilized will definitely fall further. At that time, I'm afraid we will really be shorted by you."

Chen Cheng thought to himself, "This person is clearly a professional in this field; they are very clear about all the possibilities and impacts involved."

What she said is not wrong. The market size is only 10,000 to 20,000 indicators. If someone really lends you 1,000 or 2,000 indicators to short sell, the price may have already stabilized, but if you dump those 1,000 or 2,000 indicators, the market will definitely be hit even harder.

By then, they might actually be crushed to death.

Chen Cheng thought to himself, if these people are unwilling, then his short-selling strategy will not be so easy to follow, because they are the real bulls and the main force. He can quickly obtain a large number of indicators from them and start operating directly.

However, if they are unwilling to lend, the biggest long position they can find is Qin Jianshe, and the rest are probably just retail investors with a dozen or so quotas or even fewer.

Borrowing quotas from these individual investors is not impossible, but it's too troublesome. To gather several hundred quotas, you'd probably have to sign hundreds of contracts, and the sheer amount of talking involved would be exhausting.

So he bluntly said, "Mr. Qi, since I want to short sell, I can do it even if you don't lend me the quota. It'll just be a bit more troublesome. There are so many retail investors in Jiangcheng, it won't be difficult for me to gather a batch of quotas." The other party sounded somewhat angry and questioned, "Mr. Chen, as far as I know, you've already made a lot of money from the quota market. Why do you still want to go against us? How much benefit do you gain from short selling and crashing the market? You promised a 30% interest rate, so you have to drive the price down by at least 30% to break even. But now that the quota market has calmed down a bit and the negative sentiment has dissipated, it will definitely rise again next year. It won't be easy for you to make that money, will it?"

Chen Cheng said, "Whether it's profitable or not, we should give it a try. Besides, what if the indicators plummet next year?"

"A sharp drop is impossible."

The other party said seriously, "To be honest with Mr. Chen, I've been in the business of quotas for a long time. This is a good job and a means of making a living. Its value is not low! We just happened to be caught in the failure of Jiangcheng to be evaluated as a civilized city. Otherwise, the price of quotas might have exceeded 300,000 by now. I am also confident that the price of quotas will definitely be above 200,000 again next spring."

At this point, the other party continued, "Mr. Chen, even if you manage to get a large number of license plates from elsewhere to drive down the price, it will only temporarily lower it. However, after the Chinese New Year next year, many locals will still be optimistic about the taxi industry's prospects. They will need to spend money to secure a stable job. Many people who have been working away from home for years will return and decide to buy a taxi to make a living near their homes. This is all based on our experience accumulated over a long period of time. Therefore, after the Chinese New Year, the price of license plates will definitely rise again slowly. Shorting the market now will not benefit you at all, and may even cause you to lose a lot of money. It will also not benefit us at all, and will delay our profits. I hope Mr. Chen will carefully consider this kind of self-defeating act."

Seeing that the atmosphere of intimidation had been built up enough, Chen Cheng said directly: "I don't really want to crash your market. I really have a completely different opinion from yours. You think this market will definitely rise, while I think this market will definitely fall. You are bullish, while I am bearish. If you are really afraid that I will crash your market, then we can cooperate in another way."

The other party immediately pressed, "In what way?"

Chen Cheng then said decisively, "I will still borrow the quotas from you Wencheng people, and the interest rate will remain at 30%! But the quotas you borrow from me will be used internally. I won't release them on the external market to drive up prices. I will directly sell them back to you at a price 20,000 yuan lower than the market price. Moreover, I promise that I will not sell the quotas I borrow from others to outsiders. You will buy them all back together. What is the market price now? Is it 130,000 or 140,000 yuan? Forget about 130,000 or 140,000 yuan. Let's just say 130,000 yuan minus 20,000 yuan. I will sell them back to you for 110,000 yuan. I will return 130% of the quotas to you in 5 months."

The other party was alarmed and blurted out, "Mr. Chen, you're not planning to run away with our money, are you? We lend you the quota with one hand, and then use the money to buy back the quota we lent you. What will we do if you run away?"

Chen Cheng smiled and said, "As I just said, I will find enough goodwill to endorse this cooperation. I'm not handling these things alone; there may be two other partners. Let's talk about the general idea first. Do you think you can accept the method I'm suggesting, given sufficient goodwill? If you can, we can discuss it further. If you can't, we'll stop here."

After a few seconds of hesitation, the other party said, "As I just said, we are all firmly bullish. Even if you don't ask us to lend you the quota, we will at least be able to get it until April or May next year. Since you have offered such generous terms, we are willing to lend you the quota. At least I personally am willing. As for the other partners, I can talk to them again. I believe they will not refuse such a good deal."

After saying that, the other party changed the subject and asked, "Mr. Chen, can you really find enough goodwill to back it up? I think no matter how many quotas we can lend you in the end, you should at least have three to four times the goodwill of the transaction value of these quotas. In other words, if we buy these quotas back from you at 110,000, then your goodwill should be able to fulfill the repurchase price of 400,000 for each quota. Otherwise, if the price of the quotas rises to more than 200,000 next year, plus your 30% interest, the value of each quota will have exceeded 300,000."

Chen Cheng asked her, "If I take a thousand quotas from you and you buy them back, that would be 110 million. So, I would need to give up at least 400 million in goodwill, right?"

"Correct!"

Chen Cheng then asked, "So, if I put up 4 million in goodwill, will you definitely lend me the quota and then buy it back?"

"That's right!"

The other party was also straightforward, smiling and saying, "As long as the 4 million in goodwill is genuine, I will personally lend it to them, and they will most likely agree."

Chen Cheng smiled and said, "How about this, President Qi? It's not too late yet. You can talk to your partners. If everyone agrees, give me a call. I'll prepare the goodwill. Once the goodwill is ready, I'll bring my partners over to sign the contract with you."

"No problem, I'll start right now."

After saying that, the other party asked Chen Cheng, "By the way, Mr. Chen, I've always called you Mr. Chen, but I don't know your full name?"

"Chen Cheng, Chen in the east of the ear, Cheng in the future."

"My name is Qi Duo, Qi as in gathering together, and Duo as in flower."

After finishing speaking, the other party hung up the phone without any hesitation and began to gather their partners.

These people from Wenzhou have been staying at the same hotel since they arrived in Jiangcheng. The hotel is also owned by people from Wenzhou. Everyone was a bit unbalanced after this setback. They originally planned to sell all their high-priced stocks before the Chinese New Year and go home for a prosperous holiday. However, one unexpected situation after another has caused them to lose their composure. Recently, they have been discussing going back to Wenzhou first and coming back after the New Year.

Everyone gathered in the hotel's conference room, and after listening to Qi Duo's retelling of the news, they all felt as if it were a fairy tale.

The most senior middle-aged man in the group asked the young woman surnamed Qi, "Xiao Qi, is this reliable? That Chen guy has only made a few million by flipping quotas, so how can he have hundreds of millions of yuan in goodwill as a guarantee?"

Qi Duo said, "Uncle Gao, let's not think about how he got so much goodwill. Let's just raise our hands and vote. If he can come up with so much goodwill, should we lend him the quota or not?"

Without hesitation, the other party slammed their hand on the table: "I'll borrow it!"

(End of this chapter)