novelraw Chapter 637: Profits in Hong Kong, Skycrest Asia Industrial Investment Fund
Chapter 637: Profits in Hong Kong, Skycrest Asia Industrial Investment Fund
[Chapter 637: Profits in Hong Kong, Skycrest Asia Industrial Investment Fund]
On the morning of February 26th, good things came in pairs.
Linton and the Oscar Best Actress nominees, Kate Winslet and Cameron Diaz, had spent the entire night celebrating with high intensity and in various ways.
He then received a phone call from Richard of the Skycrest Hedge Fund.
By the end of last month, all the long positions held in Hong Kong stocks had been completely sold off.
This was because Soros and his gang of financial predators had borrowed stocks worth over 1.5 trillion HKD from major financial institutions in Hong Kong last month for short selling, and they had to be returned in February.
This forced them to continuously and slowly purchase stocks in the Hong Kong market to settle their debts starting from early February.
In fact, based on current prices, these stocks had already risen by 20%, bringing the total market value close to 2 trillion HKD.
Now the consequences of their failed short-selling were manifesting; everyone knew Soros's side needed to buy 2 trillion HKD worth of stock within a month, so the stock market naturally continued to rise.
In less than a week, the Hong Kong Hang Seng Index surged another 12%. More importantly, they had hardly managed to buy any stock at all — less than 10% of their target quantity.
If this situation continued and such a massive volume of stock had to be purchased within a month solely from the secondary market, the stock prices would surely skyrocket to the heavens.
Left with no choice, they had to approach major financial institutions to negotiate bulk trades, bypassing the secondary market to avoid excessive price hikes.
However, the financial institutions in Hong Kong were no fools. Knowing they could fleece these predators, they naturally intended to kick them while they were down, refusing to sell them stocks at low prices.
They naturally sought out the HKMA. Under the organization of the HKMA, they united and offered Soros's side a price that was a 20% markup based on the settlement day price of January 28th.
Of course, the HKMA didn't dare to offend Soros too excessively, as everyone knew the American government stood behind him.
At the same time, they did not want the Hong Kong stock market to fluctuate too wildly, seeking to avoid extreme ups and downs.
The fact that the Skycrest Hedge Fund had invested heavily in long positions at the critical moment when the outcome was undecided was undoubtedly a timely help for the HKMA, and they naturally owed him a great favor.
After negotiating a unified stock transaction price for Soros's side, they immediately contacted Richard of the Skycrest Hedge Fund.
Through these bulk transactions, Richard sold 80% of his stock holdings to Soros and his group.
The remaining 20% of the stocks were sold slowly on the secondary market.
By last night (considering the 11-hour time difference), all stocks had been sold.
After settlement, the gains from this counter-strike against Soros in the Hong Kong stock market far exceeded initial predictions. In just over a month, the total profit actually reached a staggering 8.3 billion USD.
Linton did not treat them poorly, continuing to give them a 15% bonus. He set aside 1.245 billion USD for secondary distribution among them, making the entire fund team cheer for joy.
According to Linton's memory, after Soros failed to short Hong Kong this time, the Asian Financial Crisis was also nearing its end.
He would absolutely not participate in Soros's subsequent actions to short the Russian Ruble.
In his memory, when Soros's side was stirring up trouble in Russia and it looked like Russia would suffer heavy losses, Russia simply played dirty, completely ignoring the so-called American rules of the game.
Boris used even stronger administrative measures to intervene and control the financial market, even directly closing the capital exit channels. He trapped all the short-selling capital, causing Wall Street investment banks to suffer heavy losses amounting to over 200 billion USD.
It was precisely this confrontation, where both sides nearly tore off their masks, that led the West to start preaching the Russian threat theory again and to try their best to win over and incite Ukraine to oppose Russia.
...
After distributing the bonuses to the team, Linton summoned Richard and Willix to discuss the future development of the Skycrest Hedge Fund.
"You should know that the Asian Financial Crisis is basically over. What are your thoughts on the future development of the hedge fund?"
"Boss, what do you propose?"
"Currently, there is still 35.5 billion USD in cash in the hedge fund's account. Since the Asian Financial Crisis has ended, it also means there won't be such large investment opportunities in the short term.
Of course, whether in the global futures market or the foreign exchange market, investment opportunities will always exist. My plan is to keep the hedge fund team; I'll leave 2 billion USD for the team to continue fighting and striving, and the team's commission percentage will remain unchanged.
As for the other 33.5 billion USD in the account, I don't plan to bring it back to America. Instead, I intend to separately establish an industrial investment fund oriented towards the Asian market, especially the Chinese market. This Asian Financial Crisis basically caused no impact on China.
Next, as long as China can seize the time, it will inevitably usher in high-speed development. Coupled with China's large population, low labor costs, and huge market potential, I believe there is immense investment potential there."
Actually, doing this had another benefit. According to tax laws, if this money flowed back to America, it would inevitably be taxed at a rate as high as 40% or more. No matter how one avoided taxes, the amount would be staggering.
But as long as this money didn't flow back to America, the IRS couldn't collect taxes on it. Consequently, many large American companies retain a large amount of profit in the accounts of their overseas branches.
The purpose of doing this is for tax avoidance. When the day comes that the American government significantly lowers taxes, these profits held overseas will seize the moment to flow back home.
Richard and Willix glanced at each other; clearly, the two of them had discussed this before. Willix replied, "Boss, I agree with your decision. There really is no need for the hedge fund to keep so much money.
Furthermore, after this Asian financial storm, everyone in our team has made a fortune. Even the lowest earners have received tens of millions of dollars. With so much money, some people will surely want to quit or start their own businesses. We will definitely have to restructure the team then.
However, regarding the capital structure of the new hedge fund, could you give Richard and me an opportunity to participate as well? It would also allow us to pay a bit less in taxes."
Linton thought about how these two had each received over 1 billion USD in profit through their operations during the Asian Financial Crisis. Even after taxes, they were bona fide billionaires; naturally, they wouldn't be satisfied with being mere employees anymore.
He readily agreed, "Sure. Not just the hedge fund —you can also take stakes in the newly established industrial investment fund."
After some discussion, the final investment scale of the Skycrest Hedge Fund was changed to 2.5 billion USD. Linton contributed 2 billion USD for an 80% stake, while Richard and Willix each contributed 250 million USD for a 10% stake each. Willix would be responsible for the daily operations of the fund.
The newly established Skycrest Asia Industrial Investment Fund had a total investment scale of 34.5 billion USD. Linton contributed 33.5 billion USD for a 97% stake, while Richard and Willix each contributed 500 million USD for a 1.5% stake each. Richard would be responsible for the fund's operations.
According to Linton's requirements, the headquarters of this newly established fund would be set up in Beijing, with branches established in several important Asian markets such as Japan, South Korea, Hong Kong, and Singapore. Richard would lead the implementation of the specific organizational structure.
Of course, for such a massive investment fund, Linton couldn't possibly leave everything to Richard; that would be too much of a test of human nature. He assigned the legal and financial aspects to Goodman and Henry Zhou.
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