Li Zhongxin has always been a tycoon-level figure among national speculators, but he has always been hiding in the deepest place waiting for an opportunity to move and has not surfaced.

Since the foreign exchange speculation in the United States and Japan at that time, Li Zhongxin has always been the diving champion, and basically the blame has been taken by the banks of Mitsui Bank and the Rothschild family.

They took a heavy blame, but they had no way to say this. After all, they had to guarantee a cooperative relationship with Zhongxin Mitsui Bank, and they also made money from it. To put it in the most appropriate sentence, this kind of thing was that yellow mud fell into his crotch and he couldn't understand it even if he wanted to.

They also made quite a lot of money at that time. It can be said that they were also a tyrant at that time, but the money they earned was not as much as Li Zhongxin and others. Everyone's butts were not clean. If they threw Li Zhongxin and others out, they would only be said to be both sides.

Because he tasted too much sweetness in such a thing, and Chungxin Mitsui Bank has always had a good reputation in the outside world as timely rain, so Li Zhongxin doesn't like to make things openly and secretly make money behind his back. Isn't it nice to him?

Li Zhongxin felt that they should sell forward contracts of attacked currencies in the forward foreign exchange market, just like those speculators in those countries.

If the currency attacked on the expiration date of the forward contract depreciates, he and those international speculators can make a profit by delivering the contract.

Forward selling of local currencies that attack the target country will cause their currency to fall in the forward exchange rate, and at the same time, it will also suppress its spot exchange rate: on the one hand, banks expect to buy a large amount of local currency in the future, and will sell their local currency in the spot foreign exchange market in exchange for US dollars to flatten their positions so that they can fulfill their contracts at that time.

On the other hand, investors observe that the depreciation of forward local currencies will also borrow local currencies in the spot foreign exchange market, and then sell the local currency to exchange it for US dollars, achieving their arbitrage target of using less US dollars to exchange for the local currency required for fulfillment on the day the forward contract expires.

The selling of local currency by banks and investors will lead to the depreciation of the spot exchange rate of the local currency. This offensive method is high risk and high return for international speculators.

From the date of forward contract signing to the date of fulfillment, speculators can attack the local currency without real transactions, and the cost is extremely low; but if the Japanese currency does not depreciate but appreciates when it expires, speculators will face the risk of loss.

Therefore, in terms of operation methods, speculators will gradually enter into a large number of forward contracts with different performance periods. Although doing so cannot ensure that each contract is profitable, as long as the general direction of the local currency exchange rate changes in the direction of depreciation, speculators can make profits overall.

In addition, while signing forward foreign exchange contracts, international speculators can also use the short positions in the target country's local currency foreign exchange futures contract, buy local currency put options, etc., and make a profit when the local currency depreciates.

While international speculators short the target country's local currency in the spot foreign exchange market, they can also shorten the stocks and accumulate short positions in stock index futures.

The target central government has restricted speculators from obtaining their local currency and generally uses the method of raising short-term interest rates to increase speculators' capital costs.

Rising interest rates will suppress the stock market. Once the stock market falls, speculators can make profits by buying back stocks at low prices and delivering stock index futures.

In actual operation, international speculators often use the above two or three methods together. Such a three-dimensional attack method can make full use of the linkage between interest rates, exchange rates, stocks, and stock index futures to ensure high returns.

If the attacked currency depreciates, speculators can make profits in the foreign exchange market; if the attacked currency does not depreciate, the target central bank defends the exchange rate in this process, which will push up short-term interest rates and suppress the stock market, and speculators can make profits from the stock market.

Li Zhongxin is very clear about these things. Like those international speculators, he basically uses attack methods based on the above three routes when launching an attack, but he has always made arrangements in advance or just done the same thing in it, becoming a way to collect money from an international speculator and a country targeted by the target.

Li Zhongxin generally looks at the investment portfolio of international speculators in this way. The investment portfolios of these international financial speculators are more like buildings, rather than flat or two-dimensional. Their investment portfolios are quite three-dimensional and basically have been established as a three-dimensional space.

When they play this, they usually use stocks as collateral to expand their leverage. They can basically buy long-term bonds of more than 5 million US dollars, or more long-term bonds with one million US dollars.

They short sell stocks or bonds, that is, they borrow stocks or bonds before buying when their price falls.

Short selling is a common operation method in the stock futures market. The operation is to expect the stock futures market to have a downward trend. The operator sells the chips in his hand at the market price, and waits for the stock futures to fall before buying to earn the intermediate difference. Short selling is a reverse operation of longing. In theory, it is to borrow the goods first and then buy and return it.

Short selling of foreign exchange and shorting securities are not the same. Buying and selling foreign exchange involves a currency pair, and selling different currencies are sold and bought at the same time. Sometimes, shorting foreign currency can charge interest.

As we said, investors expect the yen to depreciate, so they borrow yen from the bank and buy US dollars. When the yen depreciates, the US dollar can be converted into more yen and earn the difference from it. If the deposit interest rate of the US dollar is higher than the borrowing rate of the yen, investors can earn the interest rate spread.

Li Zhongxin has been an international speculator for so long, and he rarely shorts stocks, and basically operates in foreign exchange.

The biggest reason for this is that Tadon-Shin Mitsui Bank is a large bank, not a consortium or other. They do not have much background, even if Masako Mitsui made a lot of contributions in Japan.

If those things are exposed, no one can save Zhongxin Mitsui Bank. Therefore, Li Zhongxin is basically the most ruthless and the one that is least likely to be discovered.

Li Zhongxin and other national speculators also operate positions in foreign exchange or stock indexes, both long and short, creating a three-dimensional structure composed of risks and profit opportunities.

According to the ideas of those international speculators, no matter which country they want to snipe, they will make arrangements in advance and discuss with each other how to do such a thing.
Chapter completed!