The Great Sage Returns from Ten Years of Imprisonment

"Tell me your plan, Lingyun. What do we need to do to prevent the company's stock from crashing as soon as trading resumes?"

Chairman Rong suddenly pushed back his chair and stood up, asking impatiently.

In his emotional turmoil, his body swayed a couple of times, but fortunately he managed to grab the table in time to avoid falling.

If we were to ask who most wants China Pacific Group to emerge from this crisis as soon as possible, he would undoubtedly be the top choice.

The reason is simple: he is the head of ZhongX Taifu, one of the company's major shareholders, and ultimately responsible for this crisis.

To put it bluntly, China Pacific Insurance is highly intertwined with his personal interests; their fortunes are intertwined, and their losses are intertwined!

More importantly, this is closely related to the persona he built over decades after coming to Hong Kong Island to make a living!

For someone at his level, and considering his family background, personal image is far more important than wealth!

Money can be earned back, but once a persona collapses, it's almost impossible for him to rebuild it at his current age!

Like Chairman Rong, Chairman Wang and several senior executives of ZhongX Taifu had their eyes shining with excitement.

Then there were several senior executives from ZhongX Group, who were equally excited.

"Please be careful, Chairman Rong, there's no need to get so agitated."

Ling Yun smiled and asked with concern, then changed the subject.

"I said before when I was in Beijing that this was both a crisis for China Pacific Group and, if handled properly, a turning point."

"During this period, I conducted in-depth research on the crisis your company has encountered, and carefully analyzed all 24 derivative contracts you signed with those international investment banks."

"Based on this, and considering your company's current situation and the state of the international financial market, I believe the following measures can be taken to initially alleviate the crisis."

Upon hearing this, Chairman Rong, who had just sat down, unconsciously straightened his back and looked at Ling Yun with anticipation.

"I'd like to hear your detailed opinion, Xiaoling."

Chairman Wang said with concern.

"Alright, then I'll try my best to teach you."

Ling Yun responded with a smile and continued to talk at length.

"Before I reveal my solution, let's first discuss the mistakes that ZhongX Taifu made during this crisis. This will help us address the root causes and ensure a better understanding for everyone."

"Firstly, from the perspective of over-the-counter derivatives trading, to put it bluntly, ZhongX Taifu behaved very unprofessionally in this over-the-counter derivatives transaction."

"You have confused the concepts of hedging and speculation, and your product selection is completely wrong. Specifically, you have turned the hedging need into gambling speculation."

"Based on the over-the-counter derivatives contracts you signed with investment banks such as Morgan Stanley, your profits from buying Australian dollars are capped, but your losses are magnified indefinitely, making it a one-sided bet that the Australian dollar will only rise and never fall."

"The reality is that the Australian dollar has plummeted over the past few months, and ZhongX Taifu's losses have continued to grow, with the accumulated losses amounting to a staggering sum, and there are no signs of the losses stopping."

"The second mistake is that the risk exposure far exceeds the actual need. The demand for the Western Australian iron ore mine over the next few years is only three to four billion Australian dollars, but the risk exposure is as high as more than nine billion Australian dollars."

"The third mistake was ignoring the risk of product asymmetry and failing to conduct stress tests, which allowed international investment banks to exploit information asymmetry and profit from the situation. The risk control team's competence is questionable."

"The fourth error is that there are significant loopholes in internal risk control and governance, allowing some senior executives to bypass the board's approval process and sign large-scale over-the-counter derivatives contracts..."

He paused deliberately at this point.

His gaze lingered on Chairman Rong's face for two or three seconds before sweeping over the faces of several other senior executives at ZhongX Taifu.

Without exception, their faces flushed red, and their expressions were embarrassed!

Which pot is not open to mention which pot!

Ling Yun's words were somewhat of a direct slap in the face, so it would be a miracle if Chairman Rong and the others didn't look pleased!

Ling Yun ignored their changing expressions!

Or it should be said that we need to take drastic measures for an acute illness. Only in this way can we wake up some people in China Pacific Group!

If they still don't wake up after all this, Lingyun will not hesitate to suggest to the senior management of ZhongX Group, or even to Vice President Wang, that they purge the senior management of ZhongX Taifu!

Only after a swift cleanup can the plan to save ZhongX Taifu proceed smoothly, reducing many internal obstacles!

Seeing the expressions on Rong Dong's face, Ling Yun chuckled softly and continued to talk eloquently!

Next, he bluntly pointed out some other problems with ZhongX Taifu.

These include failure to separate risk control, accounting, and trading; delayed risk reporting; wishful thinking; lack of financial expertise on the part of the board of directors; and flawed crisis management strategies in the early stages.

Compared to before, Ling Yun's analysis was much sharper, each word like a knife, mercilessly tearing away at Rong Dong and his group's dignity.

As he analyzed, the expressions on the faces of the ZhongX Taifu group grew increasingly grim!

Chairman Rong is alright. He had already experienced how sharp Ling Yun's words were when he met and talked with him in Beijing before, so he was mentally prepared for today!

The other executives, however, had no such experience and quickly lost face. On the verge of exploding, they stood up and retorted!

Seeing their state, Chairman Rong immediately gave them a look, telling them to be patient and calm down!

Just then, Ling Yun's tone changed again, and his smile became even brighter.

"After analyzing the series of mistakes made by China Pacific Group, we should look forward. We cannot stop at the mistakes that have already occurred; instead, we should find ways to mitigate the losses."

"If China Pacific Group wants to get out of this crisis and make a comeback, it needs to start from the following aspects. As long as these things can be done, stabilizing the stock price will not be a problem."

"The first thing to do is to establish a special committee to handle all 24 over-the-counter derivative contracts involved in this crisis and to negotiate with 13 international investment banks one by one."

"Strive to reach an agreement with these ruthless international investment banks to terminate some short-term contracts, restructure long-term contracts, eliminate double leverage clauses, and cut off the unlimited loss mechanism."

"The second thing is that the parent company, ZhongX Group, will step in to take over most of the risk exposure, alleviate margin pressure, avoid short-term cash flow collapse, and stabilize the situation..."

Upon hearing this, the senior executives of ZhongX Group sitting opposite each other immediately exchanged glances.

The next moment, the investment director of ZhongX Group suddenly spoke up and raised an objection.

"Mr. Ling, isn't it too risky for our group to take on the majority of ZhongX Taifu's risk exposure?"

"Wouldn't this shift the crisis onto ZhongX Group, especially during the peak of the financial crisis? Isn't that inappropriate?"

"You understand the importance of ZhongX Group. From any perspective, ZhongX Group absolutely cannot afford to have any problems; this is of paramount importance."

Ling Yun looked at the other person, smiled, and shook his head.

"You need not worry, Mr. Zheng. My suggestion that ZhongX Group assume the majority of the risk exposure is absolutely not to transfer the risk to ZhongX Group."

"As for my true intentions, it's not convenient to say here. I'll discuss the reasons for this operation with Chairman Wang and Chairman Rong separately later!"

"To put it another way, if ZhongX Group is worried about uncontrollable risks and is unwilling to take the risk, I would be very happy to replace ZhongX Group in this role."

"I can personally invest or organize fundraising to take on most of the risks released by ZhongX Taifu and resolve some of ZhongX Taifu's troubles."

"Of course, since I took on most of the risk exposure, most of the resulting high returns also belong to me, which I believe is not hard to understand..."

"what!"

Everyone was stunned, and some even gasped in surprise.