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

Chapter 670 Waiting for the Black Swan Event in the Market

"OK then."

"Ouyang, remember, you are not allowed to enter the arena without my order!" Fang Qingye instructed.

This time, he doesn't plan to operate it personally; the entire operation will be handled by Ouyang Shaoqiang's team at the Hong Kong branch.

After giving instructions to Ouyang Shaoqiang, Fang Qingye picked up her teacup again, turned on her computer, and looked at the LME futures market main contract CAD, which had been in a steady decline recently, with the short sellers clearly in control.

However, upon closer inspection, it can be observed that large buy orders emerge every time the price falls to a resistance level, preventing further declines.

After persisting for a while, it seems to give up, only to resist again at the next resistance level.

Today's price is $4500 per ton, and it has been hovering around this price level for two days, with both bulls and bears accumulating a large amount of capital.

But Fang Qingye knew that the bears couldn't hold this position.

Zhu Yunlai in Yanjing also discovered this.

Although he doesn't handle the actual trading, he still keeps track of LME copper futures price changes every day. Today, there's another person in his office: Zhao Yanjing, the general manager of Jiantou Huake.

Zhao Yanjing came here specifically to see him today.

Strictly speaking, both CICC and China Construction Investment Corporation (CCIC), whose parent company is China Construction Investment Corporation (CCIC), are holding companies under Central Huijin Investment Ltd., and are sister companies in a sense. Of course, CCIC is a second-tier holding company and is smaller in scale than CICC.

The two sat on the sofa and chatted over tea.

“Mr. Zhu, we at Jiantou Huake have already invested $3 million,” Zhao Yanjing said, “but the futures price continues to fall.”

“We at CICC have invested more than you, 5 million yuan,” Zhu Yunlai said with a smile. “China Reform Holdings and Shenwan Hongyuan have also invested 4 million yuan each. Everyone has basically completed their position building plan, and the next step is to wait for the price to rise.”

"A price surge? I wouldn't dare think about it. I'm busy averaging down right now. I just hope I don't get liquidated or forced to close my positions," Zhao Yanjing said with a self-deprecating laugh.

"Each each other."

"When will the State Reserve Bureau publicly announce its large-scale copper purchases?" Zhao Yanjing asked again.

"This is a state secret, I don't know either. They are just looking at the market situation and looking for the most suitable time," Zhu Yunlai explained.

"Sigh," Zhao Yanjing sighed deeply and suddenly changed the subject.

"Mr. Zhu, has Fang Qingye not entered the market yet? The LME's last week's position data did not show any trace of Tuofang Company's Hong Kong branch."

"Not yet. Not only Fang Qingye's Tuofang Company, but also Jiuding Investment and Hony Capital have not entered the market. It seems they are observing Tuofang Technology's movements."

Upon hearing Zhu Yunlai's words, Zhao Yanjing immediately began to complain.

"How long is this guy going to wait? Is he going to wait until the National Reserve Bureau makes its announcement before he enters the market? That would be really unfair!"

"Although we share the same goal of going long, we cannot expect Fang Qingye and his team to do everything according to our ideas. He has his own judgment."

"I'm worried that we won't be able to hold on when he comes in, and then we'll be completely finished!" Zhao Yanjing sighed.

Zhu Yunlai didn't speak, but picked up his teacup and took a sip. It was clear that he was also worried about this matter, but he still comforted Zhao Yanjing: "Don't worry, the funds from several copper mining companies in Jiangxi Province are about to enter the market. We can handle it."

Hearing this, Zhao Yanjing felt slightly relieved.

"President Zhu, what do you think Fang Qingye is waiting for? Could it be that he's scared off and wants to run away at the last minute because of the dire situation?"

Zhu Yunlai smiled slightly: "President Zhao, you've been dealing with Fang Qingye longer than I have. Based on your understanding of him, do you think he would do this?" "I can't tell." Zhao Yanjing was very frank: "Fang Qingye is a very shrewd person. More importantly, this time we're doing multiple copper futures contracts, and we're using state-owned capital, which means we're using the country's money, while they're using their own hard-earned money! Throwing hard-earned money into what seems like a bottomless pit—nobody's a fool."

"So we can't complain about them or force them to enter the game at any time." Zhu Yunlai sighed softly. "However, I believe Fang Qingye will definitely enter the game; he's just looking for a more suitable opportunity."

"When exactly is the most opportune time? I really can't think of one, unless another black swan event occurs in the market, like the copper financing scam a while ago."

“There won’t be anything like this again. The country has already conducted a joint investigation, and those that were going to collapse have already collapsed. Otherwise, why would we be in such a difficult situation?” Zhu Yunlai said with a smile.

“Yes, every company that goes bankrupt is a blow to us bulls.” Zhao Yanjing sighed again and couldn’t help but swear.

"Damn, it's so hard to do this job!"

Zhu Yunlai laughed out loud: "If it were easy, so many companies wouldn't have joined forces."

“That’s true.” Zhao Yanjing nodded. “But what opportunity is this kid waiting for?” Zhao Yanjing looked puzzled.

Zhu Yunlai was also pondering this question when she suddenly thought of something and her expression changed.

Zhao Yanjing quickly noticed this expression and asked in confusion, "President Zhu, what are you thinking about?"

"No, it's nothing," Zhu Yunlai said, trying to cover up her mistake. "We should trust Fang Qingye's judgment."

Zhao Yanjing sat for a while and then left, while Zhu Yunlai didn't move and continued to sit on the sofa drinking tea.

The tea had long since gone cold.

However, Zhu Yunlai didn't pay attention to it, and was thinking about a question.

Exchange rate reform!

The government is about to implement exchange rate reform!

The pricing mechanism has been changed from being led by the central bank to being quoted by market makers based on the previous day's closing price plus a basket of currency exchange rates. The aim is to increase the market-based nature of the central parity rate.

This could lead to a devaluation of the RMB!
The depreciation of the RMB is definitely a negative factor for commodity futures trading!
Because this would increase the cost of copper imports to China, traders and smelters reduced their purchases, and financing copper trade was also affected.

If the RMB depreciates too much, both domestic and LEM futures will plummet, and that will be the most critical moment!

Urgent need for funds to prop up the market!

Rumors of the government's exchange rate reform and the devaluation of the RMB have been circulating in the market for a long time, but there are many different opinions on when and by how much the devaluation will occur.

Even Zhu Yunlai, who has worked in finance for many years, could not determine this.

Does Fang Qingye believe the currency will depreciate significantly? Is that why he plans to intervene and support the market at that time?
Zhu Yunlai took out his phone to call Fang Qingye, but stopped himself the moment he saw the number.

He wants to see if his judgment is correct.

Fang Qingye was also pondering this question at this moment.

As a reborn individual, he knew far more clearly than Zhu Yunlai.

However, he now sees things from a different perspective. Everything has two sides. A crisis is a crisis, isn't it? There are opportunities even in danger.

He looked at the computer screen, thinking, and then picked up the phone on his desk.

(End of this chapter)