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

Chapter 780 Xia He Takes Action, Two Sides of the Contract
For the rest of the National Day holiday, Fang Qingye kept thinking about that question.

However, this did not stop him from enjoying his holiday – shopping with his wife and taking the kids out, driving Yue Kai to Baipu Town to fish, and leisurely enjoying tea in the nursery when the weather was fine.

That evening, he video-chatted with Xia He in his study and brought up the matter again.

Bai Ou doesn't have a deep understanding of finance, especially complex financial derivatives. Her current focus is on managing Tuofang Technology and overseeing the overall operations of its several subsidiaries.

Xia He has always worked in the banking system and now heads a private trust business in Singapore, so she is quite proficient in this field.

Two days ago, Xia He had already heard Fang Qingye mention this plan and had carefully reviewed the entire contents of the "Phoenix" cumulative option contract he sent her. Hearing him bring it up again now, she said:
“I’ve been thinking about this for the past couple of days. Over-the-counter financial derivatives with complex structures and high risks, like the ‘Phoenix’ cumulative option, are usually tailored for high-net-worth clients by the private banking divisions of large investment banks or specialized financial institutions.”

“It probably wouldn’t work in China, the regulations are too strict. But it wouldn’t be a problem in Singapore or Hong Kong. Xiao Jianhua himself is in Hong Kong now, so this is a good opportunity.”

“I think so too,” Fang Qingye agreed. “If we find a relatively reliable investment bank in Hong Kong and send the contract to Xiao Jianhua through them, I think he will be tempted when he sees it.”

"Of course, even I was tempted," Xia He said with a charming laugh in the video, dressed in light and casual loungewear.

"There is a lot of online discussion about Zhao Wei acquiring Wanjia Culture, and she herself seems determined to succeed. After Wanjia Culture resumed trading after being suspended for nearly two months, it immediately hit the daily limit, closing at 20.22 yuan—it seems like a sure thing."

"Hehe, a sure thing..." Fang Qingye laughed as well. "That's why, where should we find an 'opponent' for Xiao Jianhua? Since it's a gamble, there has to be an opponent, right?"

“It’s not that I can’t get involved myself… but I’m afraid he’ll be too wary and think it’s a trap. After all, my Jinghai Bank and his Hengtai Securities already clashed once over the Yongjiang City Investment Company bond issue,” Fang Qingye said.

This is precisely the difficult point he has been pondering.

You must find someone you can completely trust.

"Qingye, how about... I do it?" Xiahe said after a moment of hesitation.

"you?"

“I’ll go to Hong Kong and find an opportunity to meet with Xiao Jianhua through an intermediary—the manager of the investment bank you contacted. I’ll subtly hint that I’m very interested in this proposal and willing to take a gamble with him.”

"What's the motive? I had Zhang Dongwen design this contract to drain Xiao Jianhua's cash flow and thus destroy his financial empire. But what's your apparent motive for stepping in? You can't exactly say you're helping Fang Qingye get revenge on him, can you?" Fang Qingye raised her question.

"Am I that stupid?" Xia He rolled her eyes at him reproachfully. "We should improve Zhang Dongwen's contract."

"How to say?"

"The Phoenix Cumulative Options Contract is the B-side. We can also design an A-side privately to form a complete contract hedging."

"Side B (betting with Xiao Jianhua): It's this contract in front of us. We bet that Wan Jia Culture's stock price cannot remain stable."

"Side A (Market Hedging): At the same time, we are buying volatility derivatives related to the A-share film and television sector in the international market with several times leverage—of course, we don't necessarily buy them, I'm just saying this."

"Ha, I get it!" Fang Qingye immediately realized.

“If Xiao Jianhua wins: it means that Wan Jia Culture’s stock price is holding firm, and our losses on the B side (the premiums and dividends we paid to him) can be regarded as ‘insurance premiums paid for the A side position’. Because our A side position that goes long on volatility will also lose money, the losses on the B side actually limit the risk exposure on the B side.”

"If Xiao Jianhua loses: that is, Wan Jia's stock price plummets and the market experiences violent fluctuations, then we will not only have clauses in the B-side contract to force Xiao Jianhua to take over at a high price, thus turning a loss into a profit and locking in profits; at the same time, the high-leverage volatility position on the A-side will bring an astonishing return of more than a hundred times! Of course, this is theoretical."

“That’s right, that makes sense. As long as Xiao Jianhua firmly believes that Zhao Wei’s acquisition of Wanjia Culture will be successful and the stock price will inevitably soar, he will never think that he will lose and will definitely accept this bet!” Xia He concluded.

"Ha, smart! Xia He, I've noticed you're much smarter now than you were in Nanxin," Fang Qingye teased with a smile.

Hearing him say that, Xia He rolled her eyes at him again: "You mean I was stupid when I was the bank manager in Nanxin?"

"There is a little bit." "Qingqing, come quick! Daddy said Mommy is stupid!" Xia He's pretty face tightened as she shouted off-screen.

As soon as she finished speaking, Xia Qingqing, holding a Barbie doll, popped into the frame with a serious expression: "Daddy, you're not allowed to say Mommy is stupid! Mommy is so smart! Yesterday, Mommy used salt instead of sugar when making a cake, so the cake tasted salty! Mommy told me, 'Qingqing, this is something Mommy invented, it's called sea salt cheesecake!' Isn't Mommy smart?"

I……

Fang Qingye paused for a second on the other end of the video call, then couldn't help but burst out laughing. He quickly clenched his fist to cover his mouth and pretended to cough, but his shoulders were shaking uncontrollably.

Xia He, standing to the side, froze instantly with her smug expression, her pretty face turning bright red, feeling both embarrassed and amused.

She reached out and gently pinched her daughter's cheek, both amused and exasperated: "You little traitor! Are you helping your mother or exposing her shortcomings?"

Fang Qingye smiled and said, "My darling is right, Mommy is the smartest."

After a few lighthearted banter, the two returned to the main topic and ultimately decided that Xia He would go to Hong Kong as the manager of Anxin Future Trust Fund, ostensibly to invest in order to preserve and increase the value of their assets.

In any case, the contents of this trust are kept confidential, and no one knows the settlor or the specific terms.

“I’m also planning to go to Hong Kong. As for which investment bank to choose, I’m familiar with Zhang Jinchuan of CICC Hong Kong and Peter Behnken of JPMorgan Chase. I’ll think about it and then decide,” Fang Qingye said.

Hearing that Fang Qingye was also coming, Xia He's face lit up with anticipation: "Then should I bring Qingqing along too?"

“Yes, I also want to see my precious daughter,” Fang Qingye agreed.

"Qingqing, come quick! We're going to Hong Kong to see Dad in a few days!" Xia He immediately said to her daughter.

"Great! I get to see Daddy again!" The daughter's adorable face reappeared on the screen. "Daddy, I want to go to Disneyland!"

"Okay, Dad will go with you."

"Okay, okay, okay!"

"I also want to eat egg waffles and pineapple buns!"

"Okay, I'll buy them all for you."

……

……

Just as Fang Qingye was chatting casually with Xia He and her daughter through the screen, in a suite at Four Seasons Place in Central, Hong Kong, a middle-aged man was frowning, a cigarette between his fingers.

He is Xiao Jianhua, the actual controller of the Mintian Group.

Four Seasons Place is an all-suite serviced residence managed by the Four Seasons Hotels and Resorts. It is renowned for its unparalleled sea views, top-notch facilities and exclusive services, and is one of the preferred residences for global political and business elites, long-term Hong Kong-based executives and wealthy families.

Since 2011, Siu Kim-wah has been renting this place long-term, booking at least five suites and staying here every time he comes to Hong Kong.

The National Day atmosphere in Hong Kong was far less enthusiastic than on the mainland, and he had no interest in experiencing it. At this moment, he was forced to confront an extremely thorny problem:

The Mintian Group's cash flow is facing a serious crisis.

(End of this chapter)