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

Chapter 671 "Let's face this raging storm and plug this gun hole!"

It was a call to Ouyang Shaoqiang in Hong Kong.

The call was quickly answered, and Ouyang Shaoqiang's voice came through: "Boss, are we going in?"

"No rush, I have another question for you. How is the company's foreign exchange trading going?" Fang Qingye asked.

"We mainly deal with offshore RMB USD/CNH futures contracts, which are not very large in scale, with funds around 1 million US dollars," Ouyang Shaoqiang answered truthfully.

The so-called USD/CNH futures contract is one of the world's most important offshore RMB exchange rate risk management tools launched by the Hong Kong Stock Exchange. Investors bet on the appreciation of the RMB (shorting USD/CNH) or its depreciation (going long USD/CNH).

Are you going long or short?

“We used to short the market, betting on the appreciation of the RMB, but recently there have been rumors in the market that the government will reform the exchange rate and the RMB will depreciate. We are analyzing whether we need to adjust our positions to go long.”

"Let's go for more; we can increase our investment," Fang Qingye suggested.

"Boss, do you also think the RMB will depreciate? And depreciate significantly?" Ouyang Shaoqiang immediately understood Fang Qingye's thoughts.

"Yes, I predict a significant devaluation."

"The devaluation is quite severe." On the other end of the phone, Ouyang Shaoqiang pondered Fang Qingye's words and immediately analyzed, "Boss, if that's really the case, then once the central bank announces the devaluation of the RMB, it will inevitably impact commodity prices! Copper will not be spared either; LME copper futures prices will plummet that day!"

The more Ouyang Shaoqiang analyzed, the clearer his mind became. Suddenly, something occurred to him, and he blurted out, "Boss, are you waiting for the day the market crashes before you go long?!"

"Yes, we'll face this storm head-on and block this bullet hole!" Fang Qingye laughed.

"Boss, you're amazing!" Ouyang Shaoqiang exclaimed with genuine admiration over the phone.

"Haha. I'm not that noble. I'm just thinking about making back some of my initial investment. We're helping the country with copper, but I won't hold back on foreign exchange. If we want to make money, we'll short the RMB!"

"Okay, I'll adjust the portfolio right away."

After hanging up the phone, Ouyang Shaoqiang immediately called his deputy: "Adjust the positions immediately! Go long USD/CNH, and at the same time, convert all our RMB holdings into USD!"

Time marches on at its own pace, and LME copper futures prices continue their steady decline, having broken below 4500 yuan/ton and approaching the 4400 yuan mark!
In the media sphere, Goldman Sachs released a report lowering its 12-month copper price target to $4000!

Morgan Stanley subsequently released a report predicting that "in the worst-case scenario, it could fall to $3800!"
The headlines were sensational: "The Myth of 'Chinese Demand' for Copper Prices Has Ended" and "Copper Will Fall to $4000 or Even Lower."

Major financial media outlets around the world widely reported on the story, creating a strong bearish sentiment in the market, and copper futures prices accelerated their decline!
Fang Qingye didn't care about these things. Today was Saturday, and he was fishing at Yingchi Pond in Baipu Town.

It's early August now, and the lotus flowers in the lake are in bloom, creating a magnificent scene reminiscent of the poem "The lotus leaves stretch to the sky, an endless expanse of green, while the lotus blossoms, bathed in sunlight, are a vibrant red."

It was a rare cloudy day without bright sunshine, perfect for fishing. Fang Qingye, wearing a straw hat and sun-protective clothing, sat alone under a willow tree by the lake, while Yue Kai was idly scrolling through his phone not far away.

Fang Qingye sighed and took out her phone, which suddenly vibrated in her pocket.

He's currently using a Samsung Galaxy Note 3, dual SIM dual standby, and he's already turned off his usual SIM card number when he was phishing to avoid being disturbed.

The other card number only has family, relatives, and some close friends. If it vibrates now, it might be because of an emergency, which means the fishing is off.

When I took it out and looked at it: Holy crap!

It was Shi Guangrong who called.

He pressed the answer button and asked impatiently, "What's up? I'm fishing." "You're like Jiang Ziya sitting calmly on the fishing platform now? You still have the mind to fish? Look how low the LME copper futures price has fallen? Aren't you going to get in?" Shi Guangrong asked.

"Even if the sky falls, there are tall people to hold it up. What are you afraid of?! I told you long ago that we're not the main force this time," Fang Qingye said calmly.

"But I'm worried that those national teams won't be able to hold on. Look, even if we enter the game, it will be too late to turn the tide!"

"You're really meddling in other people's business. Do you think the national team is only this capable?! If you want to join, then join. I'm not joining right now!" Fang Qingye replied.

"Hey, why are you so irritable today? What's bothering you? Let me guess... you didn't catch anything, did you? Still empty-handed?!"

"Get lost, you jinx!"

"Hahaha," Shi Guangrong laughed loudly on the other end of the phone, "Okay, take your time fishing, I won't bother you anymore." Then he hung up the phone.

For some reason, I haven't caught a single fish today.

The date is Monday, August 10th.

After arriving at work, Fang Qingye carefully reviewed the LME's report on the positions of major institutions in copper futures last week. Whether it was shorting investors like Goldman Sachs and Morgan Stanley, hedge funds like Red Kite, or domestic firms like CICC, China Construction Investment Huake, and China Reform Holdings, they all held significant positions!
Jiuding Capital and Hony Capital have also taken positions!

There were also several unknown Chinese companies, which Fang Qingye knew were investment companies of domestic copper mining enterprises such as Jiangxi Copper and China Minmetals Corporation!

These large companies all engage in arbitrage and hedging, but rarely have such large positions.

In other words, all the major players on both the bullish and bearish sides have been mobilized, while on the bullish side, only Fang Qingye's Tuofang Technology has remained silent.

The weather was very hot and humid today. There was not a breath of wind in Nanxincheng at night. Fang Qingye and Bai Ou carried their son to the courtyard of Grandpa's Four Seasons Nursery to cool off.

Although we have air conditioning at home, it's not good for children to be exposed to air conditioning all the time; a natural environment is better.

The nursery was cooler than other places, but there were many mosquitoes. Fang Qingye lit mosquito coils, and the two of them used palm-leaf fans to drive away the mosquitoes for the baby.

Bringing my son over was also to let his grandparents see him; now it's four generations living together.

"Looks like it's going to rain tomorrow." Bai Ou looked at the dark sky, which was full of clouds with no moon or starlight.

"The weather forecast says it will rain heavily," Fang Qingye replied, glancing around at the surrounding scenery.

A storm is really coming!
At this moment, the office of Tuofang Group's Hong Kong branch, located in Central, Hong Kong, was also brightly lit. Ouyang Shaoqiang had received instructions from Fang Qingye to make all the necessary preparations to enter the site!

Data analysis, fund allocation, account checks, and even equipment maintenance—everything must be handled flawlessly.

They worked until after 11 p.m. before Ouyang Shaoqiang and others finally went home to rest. At that time, a torrential downpour began in Hong Kong.

In the heavy rain, the neon lights of the tall buildings on both sides of the street seemed to become blurred and swollen. The city's most prosperous commercial district was now transformed into a giant kaleidoscope. The blue light from the still-on display screens in the office buildings refracted through the rain curtain, creating eerie curves that reminded people of the intraday charts during a market crash.

The rain stopped the next day, the sun rose, and everything returned to calm, but a bombshell was dropped on the financial markets.

The central bank announced 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.

At the same time, it was announced that the central parity rate of the RMB against the US dollar would be sharply lowered by 1136 basis points (approximately 1.86%), marking the largest drop in history!
A-shares plummet!
(End of this chapter)