Chapter 498: Chapter 486 Hong Kong’s Richest Woman Chapter 498: Chapter 486 Hong Kong’s Richest Woman On October 27th, as soon as the market opened, it fell again. Jiaxin had already called Sun Wushuang and Wu Ziyue in advance, instructing them to close out their short positions on the index as soon as the market opened on Tuesday. As for Nie Zhan’s position, there was no need for her to worry.
Nie Zhan waited until the market opened to observe before he sold off his short index position. With 620 million Hong Kong Dollars in principal, a 10x leverage, and a 45% drop in value, he retrieved more than 3 billion after taxes and fees.
Since the transaction was made through Wan Sheng Bank, it was impossible to avoid Nie Jingwen. Once he knew, he couldn’t resist calling Nie Zhan, saying, “Ah Zhan, you’ve made over 2.4 billion on this deal.”
Nie Zhan corrected him, “It’s not me who made 2.4 billion; it’s Jiaxin who made it. That money is hers; I only helped to buy a portion because I was afraid she was overexposing herself.”
Nie Jingwen had his suspicions but didn’t expect her to be so forthright: “Then… How much did Jiaxin buy in total?”
The old man already knew and Nie Zhan would soon find out too. Nie Zhan said, “Xinxin Real Estate and Green Forest were also mortgaged, a short-term loan of 500 million for three months, which should retract more than 2.45 billion in Hong Kong Dollars.”
This time, by shorting the Hang Seng Index in Hong Kong, Jiaxin would be able to retract more than 5.45 billion. Out of this, the three months mortgage loan of 1 billion could now be repaid, and there was no rush to repay the antique paintings and calligraphy with a one-year term. In other words, after repaying the mortgage loans from Wan Sheng Bank and HSBC Bank and accounting for interest, she was left with over 4.43 billion in cash. Absolutely no second person in Hong Kong would have that much liquidity.
Nie Jingwen, somewhat regretfully, said, “Ah Zhan, why didn’t you short the market together with her?”
Nie Zhan had no regrets: “Big brother, I wouldn’t join Jiaxin even if there were another chance. I don’t partake in gambling with practically zero odds of winning.”
Jiaxin started from nothing, and since her companies aren’t publicly traded, even if she blew up and lost everything, the impact would be limited. But he couldn’t do the same; if he made such risky investments and failed, shareholders would question his judgment. As the CEO of a listed company, one should seek stable progression; overly aggressive strategies would make investors take three steps back.
Hearing about such a large sum, Nie Jingwen was tempted, asking, “Ah Zhan, what investment is Miss Lu planning to make?”
Nie Zhan replied, “I’ll suggest that she uses 2 billion for land banking, 1.5 billion to purchase quality properties, and the remaining 0.9 billion is up to her to arrange.”
Based on his understanding of Jiaxin, she would likely take out a portion of the money to bottom-fish. Like in America, she already bought five stocks, spending more than 100 million greenbacks.
Seeing that Nie Zhan already had a plan for Jiaxin’s money, Nie Jingwen kept his thoughts to himself: “Ah Zhan, make sure the money Miss Lu has placed in our bank is used last.”
It wasn’t for him to decide, and Nie Zhan said, “I’ll talk to Jiaxin about this, but I can’t guarantee she’ll agree.”
Indeed, Jiaxin didn’t have a good impression of her family members, so much so that even after more than two years of interaction, she still hadn’t visited the old house. Even now, with her aunt having gone to Canada, Jiaxin remained reluctant to visit.
In the evening, Nie Zhan visited the apartment, telling Jiaxin, “The shorted indices have all been sold, and you now have more than 5 billion in your account. I’ll accompany you tomorrow to Wan Sheng Bank and HSBC Bank to settle the loans.”
Jiaxin was also ready to clear the loans. Although they were three-month loans, repaying them early would save some interest. Even though she had a lot of money in her account now, every penny saved mattered. The loan contract included a clause that allowed for early repayment, otherwise, the banks would not have agreed to her paying back so soon.
Nie Zhan looked at her and asked, “Jiaxin, you’ve earned more than 4.4 billion in Hong Kong. Over in America, with the 400 million greenbacks you transferred to me, with a 10x leverage, after taxes and fees, you retracted 1.15 billion greenbacks; later, you borrowed another 50 million from me with a 25x leverage, and after taxes and fees, you retracted 290 million. After repaying the 50 million principal you borrowed from me, you still have 240 million greenbacks.”
He did the math in his head. Jiaxin earned more than 4.4 billion Hong Kong Dollars in Hong Kong and retracted 1.39 billion in America, out of which the principal was 400 million, making a profit of 990 million greenbacks.
After doing the math, Nie Zhan looked at Jiaxin and with a smile, said, “Jiaxin, with this short-selling venture, combining both Hong Kong and America, you’ve made a total of 12.1 billion Hong Kong Dollars (US Dollar/Hong Kong Dollar fixed exchange rate 1:7.8). Jiaxin, you are now unquestionably the richest woman in Hong Kong.”
Jiaxin said with a smile, “I’ve made more than that.”
Mo Libin, who helped with shorting the Dow Jones Index and Singapore index, made a profit of 500 million on a principal of 320 million greenbacks; Deng Weihai, who shorted the Nikkei 255 index, made a profit of 150 million on a principal of 120 million. Combined, these three places made a profit of 650 million greenbacks.
So, with a total principal of 840 million greenbacks for the shorting venture, adding all the countries together, the total earnings were 4.4 billion Hong Kong Dollars and 1.64 billion greenbacks.
Doing the maths, Jiaxin herself was excited; she couldn’t believe that she became the richest woman in Hong Kong at under twenty years old. It was unbelievable!
Nie Zhan, previously a trader handling hundreds of billions of greenbacks, was calmer. He asked Jiaxin, “How much are you planning to spend on land banking?”
The initially mentioned 2 billion now seemed too little; she could bank even more land.
Jiaxin replied, “Of the 4.4 billion from Hong Kong, I’ll start with 2 billion for land banking, 1 billion for the purchase of shops, upscale residences, and apartments; 500 million for bottom-fishing, and I plan to buy another two to three buildings with the remaining 900 million.”
“What about the funds from America?” Nie Zhan asked.
Jiaxin had also planned for the America, Singapore, and Little Days funds, planning to transfer 300 million greenbacks back to Hong Kong for reserves, spend another 500 million to buy stocks of major companies, and invest the rest.
As for the 300 million being transferred back, she wasn’t sure yet; it might be used for more land banking, purchasing additional buildings, or other purposes.
Jiaxin shared her thoughts, “That 590 million greenbacks, help me plan and see what investment would be best.”
Such a large capital movement would certainly catch the attention of American authorities. Hence, Big Head would remain in the country to make more money with money, leaving only 300 million to be transferred. With Nie Zhan handling it, there was no fear of the FBI taking notice.
“Certainly, the first rich lady.”
Jiaxin held back a laugh, tilting her head proudly and said, “Now you know how formidable I am, right? From now on, if you ever think I’ve gone mad with my investments, I won’t deal with you again.”
Nie Zhan wrapped his arms around her and laughed, “Yes, yes, yes; my girlfriend is the most formidable in the whole world, I bow to no one else.”
“Hmph…” Jiaxin originally wanted to posture and tease Nie Zhan some more, but she unexpectedly broke into laughter, failing to maintain her act.