I'm in the county town, and you say I'm a big shot?

Chapter 660, 659: "If you can trust the Japanese, pigs will fly!"

"President Zhao, I didn't expect you to attend this meeting as well," Fang Qingye said, shaking hands.

“Since General Manager Zhu from CICC is here, how could I not come? President Fang, I figured you would be coming too,” Zhao Yanjing said.

"There was no other way; President Zhu dragged me here by force," Fang Qingye joked.

"Hehe, it's an honor to be caught by President Zhu," Zhao Yanjing said with a smile.

It seems that Zhao Yanjing respects Zhu Yunlai quite a bit. Of course, besides the difference in age and position, there's also the difference in their family backgrounds.

Several people were already seated in the conference room, each with a nameplate in front of them. Besides the chairmen of Jiangxi Copper Corporation and Zijin Mining, whom Fang Qingye knew, there were also leaders from Minmetals Corporation, Yunnan Copper Corporation, and other well-known copper companies in China. Basically, all the chairmen and general managers of these companies were present.

In addition to state-owned investment companies such as CICC, JIC Capital, China Reform Holdings, and Shenwan Hongyuan, Fang Qingye also saw private investment capital such as Jiuding Capital and Hony Capital!
Of course, there were also officials from the National Development and Reform Commission and the State-owned Assets Supervision and Administration Commission.

Fang Qingye sat behind the Jinghai Bank signboard, and his appearance immediately attracted the attention of the delegates.

Jinghai Bank!

The only representative at the conference with a bank's nameplate!
"Hey, Jinghai Bank? A local bank in Jiangsu Province? Why are you here at this meeting?" someone immediately asked their colleague in a low voice.

"That bank president, Fang Qingye, I heard from the boss of Jiangxi Copper Industry that although his official position is bank president, he is actually the behind-the-scenes boss of a futures investment company called Tuofang Technology."

"Oh, I see. Like Jiuding Investment and Hony Capital? This Fang Qingye is very capable?"

"Who knows."

Of course, some people knew Fang Qingye, such as Wu Gang, the chairman of Jiuding Investment, who came over to greet her and shake her hand.

"President Fang, I've heard so much about you. It's a pleasure to meet you today," Wu Gang said.

"Mr. Wu, you're too kind."

Wu Gang is quite impressive. He used to be an official at the China Securities Regulatory Commission. In mid-2000, he left the government and founded Jiuding Group. Later, he started capital operations, establishing Jiutai Fund, Jiuzhou Securities, and other companies. He is well-known in the private investment community.

The meeting was chaired by Chen Quanxun, president of the China Nonferrous Metals Industry Association. He was completely unlike his cheerful demeanor from the previous two days at the forum; his expression was unusually serious.
"Comrades, today's meeting includes leaders from relevant departments, heads of major domestic copper companies, and state-owned and private investment companies involved in futures trading. Behind closed doors, we're all one family. I've already said all the nice things in public; now I'll talk about the grim situation we face:"

"First: International copper prices have plummeted: LME (London Metal Exchange) copper prices have fallen from over $7000 per ton in 2014 to around $4610 per ton now, a drop of more than 30%, hitting a 6-year low, and there are no signs of the decline stopping."

"Second: Domestic spot copper prices are under pressure: Yangtze River spot copper prices follow international trends, severely compressing corporate profit margins. According to the latest data, 80% of high-cost smelters and mines in China have already suffered serious losses."

"Third: After the risks of copper financing were exposed, credit tightened and supervision was strengthened. The trade model that previously used copper as collateral for financing was hindered by the tightening of letter of credit policies by banks, and some companies suffered from broken capital chains, resulting in tight liquidity in the industry."

"Fourth, foreign capital manipulates the futures market. Some hedge funds and international investment banks use their financial advantages through LME copper futures contracts to further suppress futures prices."

Chen Quanxun rattled off several unfavorable factors, prompting whispers among the attendees. While everyone had heard these things before, hearing them from the association president sounded particularly jarring.

Therefore, representatives, mainly from factories and mines engaged in manufacturing, expressed their views and their measures focused on the following aspects:
Production cuts to maintain prices: At the end of 2015, major Chinese copper companies such as Jiangxi Copper, China Copper, and Tongling Nonferrous Metals planned to reduce production by 35 tons to stabilize the market.

Overseas expansion: Companies are accelerating the acquisition of overseas mines to reduce their dependence on imported raw materials.

Industrial chain extension: Transform towards high value-added products (such as copper foil and precision copper tubes) to hedge against price risks of primary products.

The representatives from the real economy were having a very lively discussion, but strangely, the representatives from financial capital companies all remained silent.

Chen Quanxun also noticed this phenomenon and said with a smile, "Comrades who are involved in financial futures, don't stay silent, share your thoughts." "Let me speak," a man stood up, and Fang Qingye recognized him as Zhao Yanjing.

"Actually, everyone has come all this way to hold this meeting for one purpose: to prevent copper prices from collapsing and to restore them to a reasonable level. For you industrial plants and mines, it's nothing more than reducing production to maintain prices and increasing the added value of your products. As for the results, the approach is correct."

Zhao Yanjing's words, though rough, were reasonable, and no one could argue with them.

He continued to speak eloquently.

"But for us financial capital, it's extremely difficult. The LME doesn't listen to us, not to mention the UK's LME, even our own Shanghai copper exchange doesn't listen to us!"

"If we want to achieve our goals, there's only one way: throw real money at it! But who are our opponents?"

“It’s UBS, Goldman Sachs, those Wall Street investment banks, and hedge funds like Red Kite! Also, according to the latest information my team has received,” Zhao Yanjing said after looking around.

"Traders, Mercuria, and Mitsui & Co., the three major metal trading companies, have secretly contacted Wall Street investment banks to prepare for a joint short-selling operation!"

Zhao Yanjing's last words immediately caused an uproar.

Are international metal traders joining the fray?

"Mr. Zhao, aren't you exaggerating a bit?" The speaker was Wu Jianguo, General Manager of Yunnan Copper Industry.

“Last month, I attended the ‘2015 Asian Copper Forum’ hosted by the International Copper Association (ICA) in Tokyo. I met with Tatsuo Yasunaga, the president of Mitsui & Co. Ltd. We even had tea together. He said that their company had suffered heavy losses due to the sharp drop in copper prices from their investment in Vale Group in Brazil. Therefore, they did not want the price to continue to fall and planned to reduce production to support prices. They also hoped to join forces with their Chinese counterparts to jointly safeguard the legitimate interests of copper mining companies!”

"If you can trust the Japanese, pigs will fly!" Zhao Yanjing retorted coldly.

Wu Jianguo's face instantly turned ugly.

In fact, people in the industry know that Wu Jianguo had a reason for saying that.

Yunnan Copper Industry and Mitsui & Co. have a good relationship and business dealings. As a global commodity trader, Mitsui & Co. has long supplied Yunnan Copper Industry with imported copper concentrate, mainly from South America and Africa.

In addition, the two parties jointly invested in the Monywa copper mine in Myanmar, with Mitsui providing funding and trade support, and Yunnan Copper Industry participating in technical operations.

Wu Jianguo paused, then looked at Zhao Yanjing: "You said Mitsui & Co. colluded with Wall Street to short copper futures, do you have any evidence?!"

"My team is still investigating."

"So that means there isn't one?" Wu Jianguo's tone was tinged with sarcasm.

Zhao Yanjing's lips moved, but he didn't say anything.

News has indeed come from London that three trading companies colluded with Wall Street investment banks, but there is still no concrete evidence.

I only meant to make everyone face the difficulties we are facing, and I accidentally said it out loud. I didn't expect this guy to keep pressing me.

Just then, a clear male voice came from the side: "I think what President Zhao said is absolutely right."

Everyone turned around and saw that it was Fang Qingye.

(End of this chapter)