The Rebirth of the Financial Hegemon

The 300-point plunge caused countless bulls to be strangled to death.

Amidst countless long losses, short holders also made huge profits one by one.

Within twenty-four hours, Jushi Capital once again grabbed US$100 million.

Under such crazy huge profits, even the winner has a wavering fear.

That day, at the comprehensive meeting of Jushi Capital.

Liu Qiang raised his uneasiness.

As a trader, this is his job.

"Boss, in the past few months, Lun Copper has dropped from a high of 3,300 points to 1,860 points, which has hit a two-year historical low. Do you want to see if we should reduce our positions?

I'm worried that once it rebounds, our profits may retrace a lot. "

What Liu Qiang said makes sense.

In the continuous plunge, Lun Copper hit a new historical low in two years.

Underneath the plunge there must be a surge.

Once Lun Copper rebounds, Jushi Capital, which holds a large number of short positions, will inevitably suffer losses.

Theoretically speaking, the price of anything can go up infinitely, but it can never go down infinitely.

Take Lun Copper as an example.

The underlying material of the three-month copper futures contract on the London Exchange is copper cathode.

From mining, to condensation and extraction of ore and then processing into copper cathode.

Every link requires a lot of manpower and material resources.

These are all costs of production.

Whether it is a mine or a copper company, the purpose of producing copper is to make money.

If the price of copper drops too much, the production scale will inevitably suffer losses and be forced to cut production.

The level of price comes from the relationship between supply and demand.

When supply is significantly reduced,

Prices will inevitably rise passively.

This is a truth that everyone understands.

As the head trader of the trading department, Liu Qiang felt that he needed to remind his boss to pay attention to risks.

Liu Qiang fell silent.

Li Dapao from the Intelligence Department also spoke.

Now Li Dapao is very proud of himself.

Since coming to Hong Kong, the staff of the Intelligence Department has expanded significantly. Now, Li Dapao is the leader of a department of ten people.

On weekdays, Li Dapao has the highest authority in the department.

This made Li Dapao feel deeply grateful to Zhao Jiangchuan.

He now earns an annual salary of hundreds of thousands and manages a dozen people every day.

It's okay to brag, you can show off as a leader.

All this was given to him by Zhao Jiangchuan.

So Li Dapao felt that it was necessary for him to do what he should do.

Zhao Jiangchuan is his Bole, and naturally his thousand-mile horse cannot live up to Bole's trust.

"Boss, according to the intelligence data we have collected, the cost of Chilean mining companies from mines to cathode copper production is estimated to be around US$1,760. Including the transportation costs from offshore to port, the cost is about 1,800 yuan per ton."

"The cost of Freeport and Mexican Copper is relatively low, but it is also very limited. It is estimated to cost 1,700 yuan. As for BHP Billiton, Rio Tinto and British and American Copper, the cost is even higher, estimated to be 2,000 US dollars per ton."

"The production costs of other small companies are higher, and the average may be around US$2,200. Among them, Zambia Copper has the highest cost, with the production cost per ton estimated to be US$2,400."

After Li Dapao reported.

He Changtian from the Risk Control Department spoke.

This is Jushi Capital’s meeting method, and it is also the rule set by Zhao Jiangchuan.

The purpose is to create a sophisticated army.

An investment team that can coordinate and cooperate with various departments to complete tasks independently even when Zhao Jiangchuan is not in the company.

He Changtian.

A top student at Peking University in China.

Born into a poor family, he was assigned to the Bureau of Statistics after graduation. After running into obstacles in the workplace, he accidentally joined the original Amphibole Investment.

After the company moved to Hong Kong, he also followed.

Two years ago, He Changtian was still a poor scholar who had difficulty eating.

Now, he is already a senior manager of Jushi Capital with an annual salary of hundreds of thousands.

Therefore, He Changtian has never regretted that he did not continue to engage in politics, and he is even more grateful that he joined Amphibious Investment.

Many of his classmates from poor families like him were still struggling at the bottom.

Even those children from rich families back then were just returning home to inherit their family's property.

Among countless classmates, there are very few who can return hundreds of thousands every year like him.

You treat me as a nobleman of the country, and I will repay you as a nobleman of the country.

In He Changtian's heart, Zhao Jiangchuan was kind to him, and he swore that the risk control department under his control would never let Zhao Jiangchuan down.

As the risk control department, it is to control and prevent the risks that the company will face.

Market risk, financial risk, decision-making risk, etc.

These are all within the scope of He Changtian's responsibilities.

In this regard, He Changtian's requirements were almost harsh, so harsh that Zhao Jiangchuan sometimes didn't know whether to praise him or scold him for not being flexible.

At Jushi Capital, almost no one dared to refuse Zhao Jiangchuan's order.

But one person refused.

He Changtian, head of the risk control department.

When Zhao Jiangchuan once wanted to use all the company's funds to sell short positions, He Changtian objected on the spot without hesitation.

He also used his authority to limit the position ratio of the trading department.

That time, Jushi Capital's profits were reduced by at least more than 100 million US dollars.

This made Zhao Jiangchuan very helpless.

Who asked him to explain to He Changtian that in the company's position, if there is no doubled profit, the funds must always be controlled within 60%.

As it happens, He Changtian is stubborn again.

Keep biting this one.

Even though Zhao Jiangchuan was almost angry and angry at that time, He Changtian was stunned and refused to let go.

"Boss, the company's current capital expenditure has reached 50%, reaching the third warning line. I think it is necessary to reduce the position ratio to prevent the risk of uncertainty in the market."

This time, He Changtian's attitude was not very tough.

It's not that He Changtian's character has changed.

In terms of the company's position, it currently has a profit of 500 million, which can already increase the risk tolerance to the maximum extent.

But if the risk level reaches 70% of the capital drawdown, then He Changtian's character will definitely cut it off first and play later.

They may even forcibly close all the company's positions without Zhao Jiangchuan's consent.

This is He Changtian, different from Li Dapao's smoothness, and different from Liu Qiang's mediocrity.

His personality is as clear as a stick, which is the best portrayal of He Changtian.

The content of this meeting is mainly for the investment department.

After various senior officials in the department expressed their opinions.

Zhao Jiangchuan began to make his usual comments.

"The price of Lun Copper has hit a two-year low, Liu Qiang, do you know what this means?

From a trading perspective, there are new highs above new highs, and in the same way, there are new lows below new lows.

At present, the bulls in the market have been defeated, just like the victorious army on the battlefield. Now is the best time to take advantage of the victory and pursue the victory to expand the results. "

"Cannon's analysis of the costs of various mining groups is very good, basically close to the actual cost line. But the cost never represents the real price.

You must remember that value is given by capital, and cost is never the bottom line for curbing something.

In the financial market, it is never impossible, only infinite possibilities.

In 1967, International No. 11 sugar dropped to 2 cents.

By buying at such a low price, is it a sure profit?

Because the international sugar market does not mention the production and planting costs, the cost of the sacks for packaging the sugar plus the labor cost for filling the sugar is more than 2 cents.

Finally, many people believe that buying sugar futures near 2 cents/pound is a rare opportunity in history.

Guess what the result is.

White sugar did not climb up as many people imagined. After a few months, it continued to fall crazily until it fell to 1.33 cents a pound.

Isn’t it incredible?

What I want to tell you is that our goal is to make money. The price has no direct relationship with whether we can make money, and the cost does not have a decisive relationship with the price.

In the face of capital and the general trend, any reason is nonsense.

Now, the bulls in the market are frightened and frightened, and they cannot organize any effective counterattack at all.

In this case, it's a good time to rob. "

Zhao Jiangchuan paused and shouted.

"Liu Qiang."

Liu Qiang was startled and stood up quickly like a soldier whose name was called.

He knew that Zhao Jiangchuan was about to issue an order.

Liu Qiang shouted and answered.

"arrive."

"Continuing to increase the size of the position based on the original position, with full firepower, I will drive the global copper market into hell."

There was silence in the venue.

At this time, no one in Zhao Jiangchuan dared to refute his order.

The domineering look in his eyes made everyone subconsciously choose to obey.

What is hell?

Maybe no one knows clearly, and no one knows whether there is a hell.

But for the human world, corpses everywhere are hell.

It's hell when large numbers of people starve to death because they can't get food.

The Republic of Zambia is a landlocked country in south-central Africa, most of which belongs to the plateau area.

It borders the Democratic Republic of Congo to the north, Tanzania to the northeast, Malawi to the east, Mozambique to the southeast, Zimbabwe, Botswana and Namibia to the south, and Angola to the west.

Zambia is named after the Zambezi River, which is also the source of the Congo River. Copper mines are relatively abundant, and it is also known as the country of copper mines.

Northern Zambia is located on the Zan-Gang Copper Belt, the world's largest sedimentary copper deposit. The copper reserves in this copper belt alone account for 25% of the world's total reserves.

It forms a "copper belt" 220 kilometers long and 65 kilometers wide in Zambia.

57% of the country's land area, or about 43.2 million hectares of land, is suitable for agricultural production, of which 39 million hectares are medium- and high-yield areas. The average annual rainfall in these areas is 800-1,000 mm.

Most of these areas have fertile land, abundant water resources, and sparsely populated areas, making them suitable for planting a variety of crops in large areas.

However, as of 1996, only about 2.02 million hectares of arable land had been developed, accounting for about 4% of the arable land, and the land used to grow food crops was less than 1% of the arable land.

In such a country, the food produced by itself is naturally insufficient to meet people's needs.

But for a country like Zambia, which is rich in minerals, insufficient food production is not a problem.

As long as you have enough wealth, you can buy enough food.

But suddenly, everything changed.

Zambians discovered that they did not know when they stood at the entrance to hell.

Maybe it won't be long before they reach Infernal Purgatory.

Six months ago, the international copper price suddenly plummeted by US$3,600.

In just half a year, the price plummeted from US$3,600 to US$1,400.

This price is simply a nightmare for people who rely on the copper industry to make a living.

Even twenty years ago, the price of copper was like this.

But now another twenty years have passed, and the price of copper has returned to its original point, but people's lives can never return to the past.

Lumwana copper mine in Northwestern Province, Zambia. With proven ore reserves of 102 million tons and a grade of 1.1%, it is said to be one of the largest undeveloped copper mines in the world.

The Australian equinox company plans to invest US$100 million to mine this mine, and it is expected to be put into production in 1998.

But suddenly, equinox announced that it would abandon the mining of this mine.

Because at the current copper price in the international market, mining means throwing money into a pit that no one knows how deep it is.

Konkola () copper mine.

The proven ore reserves are 250 million tons, with a grade of 3.8%. It was originally operated by the Anglo-American Group, but recently, the Anglo-American Group announced layoffs.

Large-scale layoffs have left a large number of Aboriginal employees unemployed.

Nnchanga copper mine. Mainly sulfide ore and oxide ore, with proven reserves of 206 million tons, it is the largest open-pit copper mine in Zambia and the fourth largest in the world.

The mine is owned by Konkola Mining Company.

However, under the plummeting international copper price, Konkola Mining Company also chose to lay off employees to reduce expenses.

If steel is the largest base metal, then copper is the king among non-ferrous metals.

As copper prices plummeted, other related nonferrous metals plummeted one after another.

For a time, the operations of international large-scale mining companies began to face crises.

In Zambia alone, as many as 18 mining companies have announced temporary suspensions of production. In addition, a large number of mining companies have chosen to lay off employees to reduce expenditures.

This result is simply a nightmare for the Zambian government and Zambian people.

Massive production cuts and shutdowns have resulted in widespread unemployment.

When income was confiscated, many families fell into a food shortage crisis.

Black people are very strange creatures.

This kind of creature does not have the Chinese people's awareness of danger in times of peace. In other words, there are not many people in the world who know how to save like the Chinese people.

In Zambia, these black miners or employees of copper companies.

It is often a day of being a monk and a day of ringing the clock.

After getting paid on the weekend, a large number of people will choose not to go to work the next week.

Only when the money in their pockets is gone will they choose to continue working.

The sudden appearance of large-scale unemployment has left the unemployed in panic.

After losing their income, they fell into a crisis where it was difficult to even eat.

After only one month of unemployment, many people chose to rob or steal to make a living because they had no money.

No one knows how long it will take for Zambia to become a living hell.

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