Rebirth 1983: Building My Business Empire
Chapter 478 - Chapter 478 Chapter 466 The Crazy Lu Jiaxin

Chapter 478: Chapter 466: The Crazy Lu Jiaxin Chapter 478: Chapter 466: The Crazy Lu Jiaxin Lu Jiaxin skipped a year and began her senior year of college, because she had previewed all her earlier courses, so she adapted quickly. However, with the stock market crash just over a month away, she was very preoccupied with it.

On Sunday, Lu Jiaxin called Mo Libin, instructing him to sell off all the stocks under her name within a week, and to unwind the positions on the Nikkei Index when they came due.

American stocks had also skyrocketed. The one that Lu Jiaxin bought had increased by more than fivefold, and the one that increased the least had also more than doubled. Such a surge made Mo Libin feel uneasy, but he had been patiently waiting because Lu Jiaxin said that it wasn’t time yet. Now that he received the call, he felt completely relieved.

Nie Zhan came over in the evening, and Lu Jiaxin discussed the matter with him, also going over her plan: “I think the stock market is reaching its peak now. Ah Zhan, I want to short the Dow Jones Index.”

Nie Zhan was horrified: “What are you talking about?”

“The stock market in Hong Kong is overheated now, but America’s market is even more so compared to Hong Kong’s. I’ve already called Mo Libin to clear all the stocks within a week; the Nikkei Index positions that expire later this month will also be completely unwound.”

Nie Zhan couldn’t help but press his temples; this wasn’t investing, it was pure gambling: “Jiaxin, use half of your funds to short, and leave the rest in the account.”

He also felt that the stock market had risen to a peak. But no one knew on which day the snowflake would fall. What if it happened two or three months later? That would lead to a margin call, and a total loss. Even though he was wealthy now, the thought of losing over two billion made him shudder.

Lu Jiaxin spoke casually: “This money was all made from the stock market’s futures index. If I lose the bet, then I’ll just consider it a dream!”

Nie Zhan suddenly felt that Jiaxin at this moment was like a gambler, a financial gambler.

Seeing that Nie Zhan wanted to say more, Lu Jiaxin gestured with her hand and said, “I’ve made up my mind, you don’t need to waste more time trying to persuade me. Nie Zhan, I want to find someone to audit the overseas accounts to ensure the security of the funds. Do you have any reliable candidates?”

Although Mo Libin was Nie Zhan’s classmate, at such a crucial time, with several billion greenbacks at stake, there was no room for error; the losses would be severe.

Nie Zhan knew persuasion was futile and could only agree to cooperate: “Transfer your overseas funds into my account, and I’ll help you manage them.”

Lu Jiaxin thought it was a good idea to diversify her short positions, but an audit was still necessary. She said, “Once the funds are repatriated, I’ll transfer the money into your account.”

Whether it was stocks or futures contracts, one could only know an approximate amount of money made; the actual amount would be known only after selling them. She couldn’t possibly transfer everything to Nie Zhan, at most half, and it still had to be operated according to her own requirements.

Lu Jiaxin said, “For the Dow Jones Index, choose ten times leverage. Can we be fully leveraged within two weeks starting from early October?”

Starting from October 1st to build positions, two and a bit weeks should be enough.

“How much money is that approximately?”

“About four billion.”

Nie Zhan nodded and said, “Two weeks won’t be a problem. But with ten times leverage, if the increase exceeds eight percent, it will lead to a margin call. The risk is very high, Jiaxin, please consider it again.”

Lu Jiaxin waved her hand to indicate she wouldn’t consider it: “After all, this money was earned from the stock market, foreign exchange, and futures index. If I lose, I’ll just manage my clothing company with honesty.”

After a pause, she said, “If I win, I’ll have the money to acquire major clothing brands and skincare companies, building my own business empire.”

She had given this serious thought during this period; real estate is profitable but not her strong suit, her strengths lay in clothing, jewelry, skincare, and perfume. So after the stock market crash, she would not acquire real estate companies, but if there was an opportunity, she could increase her shareholding in Flourishing Real Estate and Wansheng Real Estate, and then hold more stocks in companies like Cheung Kong Holdings and New World Development.

There are two most profitable industries in Hong Kong: one is real estate and the other is finance. She had given up real estate, but she knew the major economic turmoils after the year 2000; this was her greatest advantage.

Nie Zhan agreed helplessly.

The next day, Lu Jiaxin called Nie Jingwen and expressed her desire to remortgage the antiques and paintings that were in their bank.

Nie Jingwen was a bit surprised, having not heard of any major projects she had recently. But he wouldn’t turn down business that came knocking at his door, saying, “Yes, how much do you plan to mortgage?”

“Naturally, the more the better.”

Nie Jingwen chuckled and said, “Fifteen million greenbacks, that’s the highest value. Any higher is not possible. I also have to explain to the board of directors and shareholders.”

He had seen all the antiques and paintings stored in the bank; they were rare treasures. Especially those porcelain pieces, one smaller than the others had been auctioned for six million six hundred thousand last month.

Lu Jiaxin thanked him with a laugh but also made a request, hoping he wouldn’t tell Nie Zhan about this.

Though Nie Jingwen found it odd, he still agreed. The antiques and paintings valued at fifteen million greenbacks would not lose value if she invested behind Nie Zhan’s back and lost, since the items would still be with the bank. In business, making money is more important, and everything else comes later.

The next day, Lu Jiaxin went to Wan Sheng Bank to complete the mortgage procedures. However, mortgaging the antiques wasn’t enough; a week later, Lu Jiaxin went to the head of HSBC Bank and said she wanted to take out a loan of half a billion for a three-month period.

Lu Jiaxin used Xinxin Real Estate and Green Forest as collateral. Now that real estate was booming and Xinxin Real Estate was all prime assets worth over five billion, along with the prosperous Green Forest, the head of HSBC Bank agreed readily.

With Xinxin Real Estate and Green Forest put up as collateral, as well as her jewelry, the most valuable assets Lu Jiaxin had on hand now were the Qirui clothing factory and the 17% shareholding in Wansheng Real Estate. As for the shares of Wan Sheng Bank, she had no intention of touching them.

After some thought, Lu Jiaxin still decided to share her ideas with Nie Zhan: “I want to take out a loan of half a billion from Wan Sheng Bank, using the shares of Wansheng Real Estate as collateral.”

Since Wansheng Real Estate was Nie Zhan’s business, a 17% stake could cause a huge shake-up in the company, so she had to tell him. As for her own businesses, how she managed them was her affair; there was no need to discuss it.

When Nie Zhan heard this, he understood, saying, “You want to short the Hang Seng Index?”

If the American stock market were to plummet, the heavily trade-dependent Hong Kong couldn’t escape the fallout. According to Lu Jiaxin’s judgment, if U.S. stocks plummeted, so would Hong Kong’s stock market.

“Yes.”

Nie Zhan looked at her and asked, “Have you already mortgaged Xinxin Real Estate and Green Forest?”

Seeing his calm demeanor, Lu Jiaxin thought for a moment and then nodded: “Yes, including the antiques and paintings.”

Nie Zhan let out a sigh of relief; this was clearly a bet of her entire fortune, and calling it madness was an understatement. He didn’t blame Lu Jiaxin but made one request: “Jiaxin, Qirui can no longer be mortgaged.”

“Okay.”