The Rebirth of the Financial Hegemon

Stupid?

If you look at it from George King's perspective, it's really stupid.

As a top banker.

George King is naturally proficient in economics, finance, transactions and other related things.

Whether it's securities, futures, resources, etc.

There is a certain pattern in the rise and fall of its price.

This pattern can be called a trend.

The formation of trends is caused by a variety of reasons.

In other words, the formation of a trend does not happen in a day.

In the same way, when a trend comes to an end, it will not collapse in a day.

In terms of probability statistics.

In an uptrend.

The highest probability that can be reached is very low.

If calculated based on 365 days per year, then there is only one highest in this year.

If statistics are taken over ten years, the probability is one in 3650.

Real estate development follows a cycle of several decades.

Then the probability of the price becoming the highest is one in tens of thousands.

This is the simplest math problem.

But precisely because of simplicity.

It can be as simple as the securities market, futures market, or material or real estate market.

There will always be people who think they can sell at the highest price or buy at the lowest price.

Every year, every day.

In a falling market, there are always countless smart people choosing to buy, and in a rising market, there are always countless smart people choosing to sell.

This is the smart thing about people. The simpler things are, the more complicated they are.

In this regard,

George King saw too much.

Zhao Jiangchuan knew what George King was thinking.

So he was very satisfied with George King's reaction.

If all these bankers think he is too smart, then he can leave.

No one would do a business that they knew would lose money.

Zhao Jiangchuan raised his eyelids slightly.

He said nonchalantly.

"All I care about is your bank's solvency when the house price index falls."

What?

Solvency!

This is Standard Chartered.

One of the most well-known banks in the world and one of the issuing banks of Hong Kong dollars.

You already look stupid for betting on the housing market, brother, but you still suspect us of defaulting on our debt? !

At this moment, George King was doubting.

How did such a stupid guy make so much money.

Zhao Jiangchuan's arrogant tone and attitude made George Jin couldn't help but roll his eyes with a look of disgust.

It's like, a Qidian Street author called "The Fish Bone Card Arrives" went to the largest bank in the world to deposit the money for moving bricks that month into the card.

Then the guy asked the teller.

I'm worried that one day your bank will fail and I won't be able to withdraw my money.

What are you going to compensate me for?

At this time, George King was obviously the bank teller.

But George King soon felt relieved.

George King knew that Zhao Jiangchuan was from mainland China.

Over the years, mainland officials have flowed out so much money through their banks that he, the person in charge, doesn’t even know how much money there is.

Those Chinese officials riding bicycles and wearing patched clothes had wealth that surprised him, the head of Standard Chartered Bank.

What a bunch of country bumpkins who have never seen the world.

Arrogant, arrogant, and arrogant.

This is George King’s final evaluation of Zhao Jiangchuan.

That casual questioning made George Jin feel that Zhao Jiangchuan was simply an idiot.

Zhang Xiaolei on the side couldn't stand it anymore.

She felt that Zhao Jiangchuan simply insulted the intelligence of the Chinese people.

As a staff member of the bank's investment department.

Even though Zhang Xiaolei has only been employed for a little more than two years, with the professional knowledge she has worked hard to learn, she also knows how stupid it is to be short on Southeast Asian real estate.

What's even more ridiculous is that Zhao Jiangchuan actually thinks that Standard Chartered cannot afford to lose money.

This made Zhang Xiaolei suspect that Zhao Jiangchuan's brain had been kicked by a donkey.

Under George King's eyes, Zhang Xiaolei suppressed the expression of disgust, lowered her head and frowned and asked sideways.

"Mr. Zhao, I'm sorry, are you serious?"

"Do you think I'm joking? Sorry, my time is precious. If I have this time, I might as well go out and pick up more girls."

"..."

George Jin and Zhang Xiaolei looked at each other.

That look conveyed a signal at the same time.

The guy in front of me is an arrogant idiot.

I have to say that Standard Chartered is still very professional. When faced with the business that came to him, George King showed the professionalism that a banker should have.

"Zhao, we will customize a pay-as-you-go compensation method for you, but the condition is that when the real estate index rises, you have to pay Standard Chartered's corresponding premium every month."

“This is what it should be, but to facilitate settlement, I recommend that the subject matter be valued in U.S. dollars and settled uniformly in U.S. dollars.”

The U.S. dollar, as the international unit of settlement.

It is undoubtedly the most suitable for this kind of cross-border investment agreement. Whether it is valuation or settlement, it is most convenient to use US dollars as the unit.

From George King's perspective, this is a sure-fire deal.

He spoke without thinking.

"as you wish!"

In George King's response, Zhao Jiangchuan casually threw out a stack of insurance contract texts that he had prepared long ago.

"This is my preliminary custom-made contract. Please see if there are any problems."

The contract was made by Zhao Jiangchuan long ago. In addition to the various terms of the gambling agreement, professional lawyers also considered the scope of legal support for various terms.

According to the contract template given by Zhao Jiangchuan.

The two parties took high-quality housing and comprehensive housing in Bangkok, Thailand, as the subject matter, and made a house price index standard contract based on this subject matter.

Then the rise and fall of the index contract are used to trade credit default swaps.

The valuation of the subject matter is calculated in US dollars.

Of course, settlement is also in US dollars.

When house values ​​(not prices) continue to rise, Zhao Jiangchuan's Jushi Capital has to pay Standard Chartered monthly premiums to fulfill the contract.

When the housing index continues to fall, the bank will pay Jushi Capital insurance premiums.

It is somewhat similar to an insurance contract that protects the value of property.

For example, if you buy a life insurance or vehicle insurance for a friend, the beneficiary is the policyholder.

It is also somewhat similar to a house options contract.

The contract text given by Zhao Jiangchuan is equivalent to him buying a value-preserving insurance for the price of houses in Bangkok.

If the value of the house increases, the premium he paid will be in vain.

Only when the value of the house falls can Zhao Jiangchuan benefit from this.

This contract is similar to an insurance contract in that the bank assumes performance responsibilities similar to those of an insurance company.

Conventional life insurance contract.

The maximum compensation amount is calculated based on the policyholder’s payment amount and the insurance period.

If the insured suffers an accident during the contract, the insurance company will pay compensation in accordance with the terms of the contract.

But if the insured does not have any accidents in the middle, then the policyholder’s annual premium will be in vain.

It can be said that in a life insurance policy, the insured is the subject matter.

After the performance of the contract is completed, no matter how much premium the policyholder pays, as long as the insured does not have any accidents in the contract, the premium will completely belong to the insurance company.

The insured compensation ratio is one of the important parameters in a policy.

The contract text given by Zhao Jiangchuan naturally also has this compensation ratio parameter.

For a contract with an underlying compensation value of 100 million, Zhao Jiangchuan needs to pay 1% of the premium every year.

In other words, if Zhao Jiangchuan purchases a credit default swap of US$5 million, he will need to pay a premium of US$1 million per year.

If the price of the house rises or is higher than it was worth when he purchased the contract, he will lose $1 million.

Only when the price of the house is lower than the value of the subject he purchased can he receive compensation from Standard Chartered.

The compensation amount is calculated based on the loss value of the property insured by Zhao Jiangchuan.

For example, according to statistics, the average price of real estate in Bangkok is US$1,000 per square meter.

So as long as the real estate value in Bangkok is higher than or equal to US$1,000, Zhao Jiangchuan will lose US$1 million if he purchases a US$1 million credit default swap.

Only when the average property price in Bangkok is less than US$1,000 can he receive compensation from Standard Chartered.

The amount of compensation depends on the actual house price index in Bangkok when Zhao Jiangchuan redeemed the contract.

If it is US$990, Zhao Jiangchuan can get the compensation amount from Standard Chartered.

The amount of admiration is calculated as ten dollars multiplied by five hundred percent.

Under the arrangement of George King, Standard Chartered's legal department and other departments reviewed the contract on the spot.

After cross-examination, it was determined that there were no problems with the contract.

George Jin gritted his teeth to hold back his ecstasy, and several other bank employees present also forced themselves to look serious.

However, the twitching muscles on their faces showed their innermost feelings.

Especially Zhang Xiaolei, she had to secretly pinch the muscles in her thighs to resist the urge to laugh.

This is a money-in-the-sky deal.

According to the contract given by Zhao Jiangchuan, Standard Chartered has almost no possibility of losing money.

Southeast Asian countries are now in a period of rapid development. As their economies take off, real estate prices will only continue to rise.

Especially Thailand.

As the leader of the Four Little Tigers, countless speculative capital and value-preserving capital have flowed into Thailand.

While the baht is rising passively, Thailand's economy is also prospering.

Whether it is industrial or financial industry, Thailand is now almost comparable to Hong Kong.

In this case, there is no possibility of making money from the credit default swap purchased by Zhao Jiangchuan.

Are all Chinese people like Zhao stupid because they have too much money?

George King couldn't help but wonder.

But George King is the supreme commander of Standard Chartered.

After resisting the urge to laugh, he spoke.

"Zhao, we can sell you a credit default swap of US$10 million."

Ten million?

Zhao Jiangchuan felt humiliated.

This is so disrespectful of people.

Zhao Jiangchuan raised his eyebrows helplessly and asked awkwardly.

"Can you sell it to me for 200 million US dollars?"

"Ha ha…."

Standard Chartered Everyone present laughed wildly after trying to control their facial muscles to no avail.

Ten million dollars.

All Standard Chartered staff feel that George King has become a lion.

Even George King himself thinks he is dark enough.

This is pie-in-the-sky money that comes to your doorstep, all you have to do is reach out and pick it up.

But now, Zhao Jiangchuan actually said that he wanted to buy it for 200 million US dollars.

Two hundred million dollars.

Standard Chartered's entire region does not earn that much net profit in a year.

As long as Thai real estate prices continue to rise, or even do not need to rise, Zhao Jiangchuan will have to pay Standard Chartered a premium of US$200 million every year.

This is like several tons of gold falling from the sky, waiting for Standard Chartered to go to bed.

Are the Chinese people all crazy people who have too much money and are stupid?

Please give me two more dozen of these lunatics!

Everyone at Standard Chartered was almost crazy with joy.

Such good things can happen to them.

George King finally controlled the muscles on his face.

He stood up and shook hands with Zhao Jiangchuan.

"Zhao, you are the most distinguished customer of our bank, and your request will definitely come true."

( = )