kingnovel Chapter 367 Zhang Chi: Then Buy the Bottom and Harvest Against the Wind
Chapter 367 Zhang Chi: Then Buy the Bottom and Harvest Against the Wind
"But..." Bai Hongsheng frowned and said seriously, "How will the market react?"
"Just ignore this bond issue? Honestly, after winning the battle, bond prices are falling instead of rising. This is completely contrary to the financial knowledge I learned..."
"Hahahahaha..." Zhang Chi laughed heartily upon hearing this. "This is reality. Who made us Chinese poor and weak for hundreds of years? Especially the Chinese in Southeast Asia. Some of them have been ruled by white colonists since the Ming Dynasty."
"It's hard to shake this mental inertia anytime soon." After a hearty laugh, Zhang Chi said with a hint of melancholy, "That's why I'm insisting on fighting John's people. As long as we win in the end, everyone's confidence will naturally be established."
Zhang Chi is well aware that confidence is more important than gold.
He wants to use victory to tell everyone that Chinese people are no worse than Western white people!
Bai Hongsheng was increasingly impressed by the foresight of the man before him. He asked, "Then I should squeeze out some funds and buy up the bonds being sold off in the market, so as to push up the price and boost market confidence?"
"No, quite the opposite." Zhang Chi noticed that Bai Hongsheng was a little confused. He picked up the teacup, slowly turned the rim, took another sip, and sucked up the tea. His tone calmed down: "The capital market loves panic, but panic can also be exploited."
"Let them sell off," he said bluntly. "While John and his men haven't given up yet, quickly spread some false information to drive the bond price down even further."
Bai Hongsheng was stunned.
"Let the 'smart people' in the market sell off the bonds as much as they want." Zhang Chi said slowly, with a profound look in his eyes.
Bai Hongsheng: ???
What kind of self-destructive Great Wall effect is this?
"Wait until they panic to the extreme and bond prices hit rock bottom, then we'll go in and buy them."
Bai Hongsheng: ???
He suddenly reacted, a flash of shock in his eyes: "You mean - buy the bottom?"
Zhang Chi smiled slightly, his eyes revealing a hint of sharpness: "Once John's people admit defeat, there will be countless people who are optimistic about us, and then the value of these bonds will skyrocket again.
We are now issuing more than 1800 million dollars of bonds, each with a face value of 100 dollars. After three years of maturity, the principal and interest payment will be 117 dollars. If we lower the price to 80 dollars, they will panic sell.
We took the opportunity to buy it back privately. Not only did we not have to pay interest, but we also paid $20 less in principal.
If you wait until it reaches 70 or even 60 dollars, you can make more money.
By then, we will not only be able to reap a wave of market share and reduce a large part of the debt, but also completely clean up the capital of those wavering elements."
After saying that, Zhang Chi gently put down the teacup, his voice calm and confident.
"This battle is not only a military one, but also an economic one, and we have already won half the battle."
Bai Hongsheng looked at Zhang Chi in shock. It was the first time he knew that a financial product like bonds could be played in this way?
Zhang Chi was amused. The Wall Street in later generations played even more excessive games than this. They pushed the price up and down, accurately harvesting retail investors and international hot money. He was just scratching the surface.
After thinking for a while, Bai Hongsheng had to admit that this approach was quite feasible and could save a lot of money, but he still had some concerns: "But won't this undermine market confidence and cause market turmoil?"
Zhang Chi pointed out the window. In the distance, inside the Myitkyina No. 1 Steel Plant under the Nanhua Steel Group, tall coking towers were emitting exhaust gas into the air.
In this era, that is not called pollution, that is called the breath of industrialization.
"Currently, our Nanhua factories dominate the market. As long as we don't lose our composure, those merchants, whether local or investors from the Republic of China, won't cause much volatility in the market."
Only then did Bai Hongsheng understand why Zhang Chi insisted on building the Nanhua Group with absolute control, instead of doing what the big warlords of the Republic of China did, leaving all businesses except the arsenal to private businessmen and the warlords themselves only collecting taxes.
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On the other side, on the island of Java, in a secluded mountain village, far away from the eyes and ears of the Japanese occupiers, an ancient and spacious Chinese-style house is hidden.
This was originally an inconspicuous place, but now it has become the retreat of "Boss Chen", a Chinese business tycoon in Southeast Asia who has dominated Southeast Asia for decades.
Ever since his last visit to Myitkyina and his return from meeting Zhang Chi, the now over 70-year-old has been traveling non-stop around Southeast Asia, contacting old friends, discussing countermeasures, and strongly supporting the Anmin Army.
He knew very well that if the Chinese did not seize this opportunity to gain a foothold in Southeast Asia, they would be uprooted in the future.
By then, everyone will become a Pegu, Siamese, Annamites, Malays, and Javanese, but they will no longer be Chinese.
With his help, Zhang Chi not only gained many outstanding talents, but also earned a lot of funds.
Today, a telegram from Myitkyina had just arrived, and then a fierce quarrel was heard in the mansion.
The atmosphere in the main hall was solemn.
Boss Chen sat upright on the armchair, squinting his eyes slightly, slowly turning the teacup in his hand, as if he was thinking about something.
But his two sons could no longer contain themselves and knelt on the ground anxiously, their voices filled with confusion, fear, and even tears.
"Dad!" The eldest son hugged Chen Laoda's thigh, his tone filled with pleading and tears, "This is your life savings! Our family has already bought two million dollars worth of bonds from him. Now the market is so panicked, and the bond prices are still falling! If we continue to buy, won't we lose all our family wealth?"
"Big brother is right, Dad!" The youngest son, Lao Ba, chimed in with a worried look. "There's panic in the Myitkyina market right now, and Zhang Chi hasn't even made a move yet. Why should we rush to pour money into it? Our family is indeed wealthy, but it's not a bottomless pit. If something goes wrong, all this money will be wasted!"
The two brothers were talking to each other, their faces full of panic. It was not that they were unreasonable, nor were they cowards who were afraid of death. It was just that after experiencing too many storms, they had formed an instinct of "seeking profit and avoiding harm" in their bones.
Their concerns are not without reason. The market is turbulent now and capital is withdrawing. If the Chen family insists on going their own way at this moment, they may fall into huge economic risks.
However, the expression on Boss Chen's face, who was sitting on the armchair, did not change at all.
He slowly put down the teacup, and scanned his two sons kneeling on the ground with a sharp gaze. After a moment of silence, he suddenly slapped the armrest and shouted angrily:
"You two, you know nothing!"
The sound made the two brothers tremble and lower their heads unconsciously.
"We Nanyang Chinese have been bullied by white people for generations. Don't you know what kind of life we've been living?"
Boss Chen stared at them coldly, his voice old but powerful, "Now, finally, someone has the guts to stand up and fight John's people, to represent all of us and fight them, and yet you're starting to feel bad about this little bit of money?"
Having said this, he stomped his foot in anger, and the teacup in his hand fell to the ground with a "bang" and shattered.
"Tell me, the two of you, if Zhang Chi loses and the Anmin Army collapses, will the Chinese in Southeast Asia still have a future?"
The eldest son gritted his teeth, lowered his head and dared not say a word.
The eighth son whispered, "But, but even if we are willing to support, we can't rely on our family alone... The market is in a panic, and our little money can't fill the hole..."
"Who said we're the only ones?" Boss Chen snorted coldly, his eyes fierce. "Do you really think this is all I'm capable of? I've already spread the word! I want all the Chinese businessmen in Southeast Asia to know that anyone who sells off the Anmin Army's bonds now is my enemy! Anyone who dares to take advantage of the chaos and buy up our Chinese assets at a low price, I'll personally bring people to 'talk' to them!"
The two brothers were shocked when they heard this.
"Dad, you..." The eldest son looked at his father in surprise, as if he didn't expect that he had done so much.
"Get out!" Boss Chen shouted angrily, "If you don't want to pay, get out of here and don't get in my way. If I don't have money, I'll go borrow from my old brothers.
In this world, there are many people who are willing to be dogs for white people, but there are also some who are willing to stand with us Chinese. Even if I lose everything today, I will stand on Zhang Chi's side!