The Great Sage Returns from Ten Years of Imprisonment

Upon learning of Lingyun's astonishing investment performance, Chairman Wang and Chairman Rong had no more doubts.

Afterwards, everyone sat down at the conference table and quickly got down to business.

As the chairman of CITIC Pacific, Chairman Rong was already in a state of urgency and had no time to wait any longer.

For him, Lingyun was his lifeline.

Moreover, this lifeline is so miraculous that it couldn't be more perfect and should not be missed.

After Vice President Wang finished his opening remarks and clarified the theme of today's meeting, he immediately said impatiently:

"Xiao Ling, when I first met with Director Li and Deputy Director Zhang of the State-owned Assets Supervision and Administration Commission to discuss this matter, they told me very clearly!"

"Someone issued a timely warning, saying that the Australian dollar cumulative option contracts signed by CITIC Pacific with many international investment banks were a deadly trap."

"It was a trap meticulously crafted by international investment banks in collusion with Australian iron ore sellers, tailor-made specifically for CITIC Pacific."

"As a result, we suffered a huge loss of over HK$9 billion, and the losses are likely to continue to widen. It was this person who promptly alerted us to the suspension of trading in CITIC Pacific shares."

"Following instructions from higher authorities, CITIC Pacific reported the crisis and decisively suspended trading, which effectively prevented a stock market crash and dealt a heavy blow to those international investment banks."

"Only now did I realize that this investment genius hiding behind the scenes was actually you. Thank you for your timely warning, which prevented us from suffering even greater losses!"

Ling Yun smiled calmly, nodded slightly, and exchanged a few polite words.

"You're too kind, Chairman Rong. Now that I've discovered that CITIC Pacific has been targeted by those international investment banks in collusion, there's no reason for me to stand idly by."

"More importantly, CITIC Pacific's large-scale acquisition of iron ore mines in Australia is a strategic move of great significance, and I have no reason to stand idly by."

"Those who know me know that I've always disliked these insatiably greedy international investment banks and would be more than happy to cause them trouble!..."

"Hahaha"

Vice President Wang and Deputy Director Zhang burst into laughter, thoroughly enjoying themselves.

No need to ask, they are the people who understand Lingyun.

His complicated relationships with numerous top international investment banks are well-known!

The next moment, Vice President Wang smiled and nodded in agreement.

"Xiao Ling is absolutely right. He has dealt with many top international investment banks and has never lost a single one!"

"These top international investment banks include not only Goldman Sachs and Barclays, but also Morgan Stanley and Merrill Lynch, HSBC and Nomura Securities, etc..."

Chairman Wang and Chairman Rong exchanged a quick glance, their eyes showing even more shock, but even more so, surprise!

Immediately afterwards, Chairman Rong said with an excited smile:

"Great, Xiaoling! It seems we've finally found the right investment opportunity. Your investment performance is amazing!"

"Now I'd really like to know, you said we've fallen into a deadly trap meticulously set by numerous international investment banks, could you elaborate?"

"We pride ourselves on our knowledge of international financial investment, but we never imagined we'd be scammed so badly!..."

"brush!"

Everyone in the meeting room turned to look at Ling Yun, their eyes filled with curiosity.

Even Vice President Wang and Deputy Director Zhang, who had already read his relevant reports, behaved the same way!

They understood that, given Ling Yun's consistent style, he would definitely make a shocking statement today, and most likely, he would come up with some brilliant plan!

Ling Yunkai smiled and nodded slightly to Chairman Rong.

Then, after pretending to think for a while, he finally delivered the prepared speech.

"Chairman Rong, before today, I didn't have a deep understanding of the CITIC Pacific crisis; I only had a general idea. However, I did discover some problems, which is why I quickly issued a warning."

"Just now, I finally got access to the most complete relevant information, including the Australian dollar cumulative option contract that hides many fatal traps, and I finally have a complete grasp of the situation."

"More importantly, I discovered many traps hidden in this options contract and figured out why CITIC Pacific suffered huge losses in such a short period of time."

"Next, I'll share my findings. Some of what I say might be harsh, and I apologize if it makes you feel uncomfortable or embarrassed!"

Chairman Rong paused for a moment, then nodded helplessly.

"Whatever problems you discover, feel free to speak your mind. Don't worry about my feelings; finding and solving problems is the most important thing!"

"If I don't even have this much magnanimity, then I've lived this long in vain and don't deserve to be in my current position."

Following closely behind, Chairman Wang and Chairman Kong echoed their sentiments.

Let Lingyun speak his mind without worrying about whether it's appropriate or not, or about saving face for anyone.

"Alright, gentlemen, then I won't stand on ceremony!"

Ling Yun smiled and nodded, then changed the subject.

"Through the Australian dollar cumulative option contract signed by CITIC Pacific with numerous international investment banks, and the related events that occurred before and after the signing, I discovered the following issues."

"First and foremost, risk hedging should not be turned into speculation or gambling. The purpose of CITIC Pacific signing this Australian dollar cumulative option contract is to hedge and reduce acquisition costs."

"However, based on the terms of this Australian dollar cumulative option contract, it is clear that the risk hedging has been turned into a bet against numerous international investment banks, with the bet being the rise and fall of the Australian dollar exchange rate."

"Furthermore, CITIC Pacific made a serious misjudgment of the international financial market trend, unfortunately coinciding with the outbreak of the subprime mortgage crisis and the financial crisis, causing the Australian dollar to plummet and resulting in huge losses from its betting scheme!..."

The first point alone caused Chairman Rong's face to flush red and his expression to become embarrassed!

He wanted to argue back, but for a moment he didn't know how to do it, and he found that whatever he said would be weak and powerless!

The huge loss of over HK$9 billion has already occurred, so there's no point in saying anything more!

More importantly, he realized that Ling Yun was absolutely right!

CITIC Pacific did indeed gamble on risk hedging, but they almost lost everything!

Not only Chairman Rong, but also Chairman Wang and Chairman Kong looked somewhat embarrassed!

Hey! When it comes to serious matters, this kid is as sharp as a knife as ever, showing no mercy whatsoever!

Even when facing Chairman Rong and Chairman Wang, they showed no mercy!

But that's fine too. A loud drum deserves a heavy blow. If it's not a loud drum, then there's no point in mentioning it!

Vice President Wang looked at Ling Yun with a smile on his face, but his inner thoughts were quite interesting!

Looking at Ling Yun again, he seemed oblivious to Chairman Rong's slightly pale face and continued talking eloquently.

"The second mistake CITIC Pacific made in this incident was its failure to control risks. To be honest, this mistake was quite unprofessional!"

"Based on several core terms of this Australian dollar cumulative option contract, it seems that CITIC Pacific's risk control department failed to notice the high-risk asymmetry."

"The strike price for this option contract is US$0.87 to AUD 1, and the knock-out price is US$1.016 to AUD 1. The knock-out price means the profit is capped..."

As he said this, he casually opened the Australian dollar cumulative options contract in front of him and quickly flipped to the relevant terms.

They then used the on-site projector to project the contract content onto the screen.

Then, pointing to the enlarged terms on the screen, he spoke each word with sharp, piercing words that seemed to cut to Rong Dong’s heart!

"Let me explain the strike price. It means that when the Australian dollar exchange rate is between 0.87 and 1.016, CITIC Pacific can buy 1 AUD per day at an exchange rate of 0.87, but the profit will be limited."

"When the Australian dollar appreciates, once it exceeds 1.016 US dollars to 1 Australian dollar, this Australian dollar cumulative option contract will automatically terminate, and CITIC Pacific's profits will be capped."

"Conversely, if the Australian dollar depreciates and the exchange rate falls below US$0.87, CITIC Pacific will have to buy 2.5 times the amount of Australian dollars at the exchange rate of US$0.87, and the leverage will continue to increase."

"In this way, the more the Australian dollar depreciates, the greater CITIC Pacific's losses will be. Since there is no downward bid, theoretically CITIC Pacific's losses could expand indefinitely."

"Unfortunately, shortly after CITIC Pacific signed this options contract with numerous international investment banks, the global financial crisis broke out, and the Australian dollar exchange rate plummeted!"

"Upward profits are extremely limited, while downward losses are limitless. To be honest, I've rarely seen such amateurish options contracts, unless there are some like this..."

Just as he was speaking animatedly and enjoying himself, Chairman Rong could no longer sit still.

He lightly slapped his forehead and interjected helplessly.

"You're really ruthless, every word you say is so cutting! Can't you give me some face?"