Yanben Xun's intuition was not wrong. After Kongfang exposed his strength, the number of followers in the market clearly increased. The traders and fund managers who had been in the market for a long time all knew that the market trend had changed, even though this change was still just a sign.
What truly worried Yanben Xun was that if this force grew locally, it would affect the performance of the Japanese stock market. The secret of the capital market was confidence. Whether in a bull or bear market, it was sustained by an endless supply of confidence. Therefore, he and the conglomerate behind him absolutely could not allow this phenomenon to continue.
However, with the funds currently at his disposal, it was difficult to compete with the other side. Therefore, he thought of some representatives from Japan, who, like him, were responsible for supporting the confidence in the Japanese market.
It was strange that after the Singapore exchange launched the Nikkei 225 futures, most of the conglomerates behind these people sent them here, hoping to hedge some risks, and the general strategy was to go short. However, in the face of the thriving Japanese stock market, going short was akin to courting death, and it also affected their own prospects. Thus, they all changed direction and moved to the long side.
As a result, the representatives of these major conglomerates often gathered privately to discuss future trends and operations, forming a small circle. After earning substantial profits for their conglomerates over several consecutive years, the conglomerates behind them tacitly approved of their approach. Some conglomerates even established dedicated stock index futures trading departments, separating these people out as important profit-contributing departments within the group.
These Japanese conglomerates came from both the Kanto and Kansai regions. However, they were all led by the six major conglomerates: Mitsubishi, Mitsui, Sumitomo, Fuji, Sanwa, and Kansai Bank. There were also some emerging conglomerate forces such as the Sakura, Osaka, and Kobe conglomerates. These conglomerate forces penetrated every aspect of the Japanese economy, including machinery and shipbuilding, automobile manufacturing, oil development, computers, communications, chemical industry, banking, semiconductor industry, and real estate.
Yanben Xun came from the Seiwa Bank in Tokyo, one of the top ten banks in the country. The ambitious senior management was striving to push this already giant commercial bank into the top five in Japan.
When Yanben Xun first arrived in Singapore, the representatives of the major conglomerates only greeted him politely and did not take him or the force behind him seriously. It was not until Yanben Xun, with his precise judgment of the situation and mysterious operations, gained a significant reputation in the market that these super conglomerates' representatives accepted him into their small circle.
At this moment, several Japanese active in the Singapore Nikkei futures market were gathered in a small room, holding a pre-market meeting.
This meeting was strongly requested by Yanben Xun. He was determined to share his views with his peers, warning them to be cautious of the trap and not to be defeated one by one due to insufficient funds.
"Yanben, is what you said true?" A middle-aged man with a fat head and large ears pondered for a while before frowning and asking. The matter was serious, and he had to consider it carefully. This man was Ota Taro from the Mitsui conglomerate, who had a certain level of prestige among the group.
"Yes, Ota, I believe the amount of funds this group has should exceed each of us here. Therefore, we must unite to ensure the stability of the Japanese market," Yanben Xun quickly nodded and bowed, as the necessary etiquette in such a hierarchical society could not be overlooked.
"Then, Ota, can you estimate the total amount of their funds?" A short, middle-aged man with a disdainful look on his face coldly snorted and asked, somewhat dissatisfied.
"Watanabe, although it is not certain now, based on my estimation, it should be no less than thirty billion dollars," Yanben Xun bowed ninety degrees and respectfully answered. The person asking the question was Watanabe Ryōichi, the representative of the Mitsubishi conglomerate. He was very proud and often disregarded others' opinions, and he also had a grudge against Ota Taro, who was of a similar seniority, leading to a subtle relationship between them.
Upon hearing Yanben Xun's estimate, all the representatives present drew a sharp breath and fell silent. Although thirty billion dollars was not a huge amount, the astute among them could all think that this might just be the first tranche of funds, and the amount following it would not be less than this, and it could also attract a large number of followers in the market, as yesterday's market trend had shown.
"Gentlemen, do not be concerned. Regardless of the domestic market's prosperity, based on the current situation, we here are not necessarily at a disadvantage. Moreover, we have substantial support from home," seeing everyone's silence and the awkward atmosphere, Ota stood up to encourage everyone.
"Furthermore, I believe all of you understand that if any of us were to switch sides, we would be traitors to our country. At that time, unless one commits seppuku, there would be no way to wash away the sin! Do you all understand?" Ota's tone became stern, and his eyes stared directly at Watanabe Ryōichi, who had been somewhat restless earlier.
Under Ota's stern gaze, Watanabe looked away, feeling guilty. Although he was extremely displeased, he still agreed with the others.
Thus, the Japanese conglomerates in Singapore formed a loose alliance to support the market.
...
Throughout October 1989, the Nikkei futures market in Singapore was a scene of intense and bloody battles. The long side, led by the Japanese alliance, and the short side, led by the mysterious funds, fought a comprehensive battle at every price level. After a period of observation, the other market participants chose to join one side, making the battle even more intense.
However, this did not affect the overall performance of the Japanese stock market. The Nikkei index continued to rise steadily, setting new highs, showing no signs of turning downward. At the same time, the economic situation in Japan was also excellent, with the economy closing in on that of the United States.
In this situation, the short side was continuously defeated. By early November, they were completely routed, losing their helmets and armor, and in disarray. As analysts had predicted, after a few symbolic counterattacks, the main short-side funds disappeared from the market, seemingly having conceded and left.
In this situation, the long side in the Nikkei futures market had no opponents left. The index continued to rise, setting new highs, and the investors following the long side made substantial profits, beaming with joy. The short-side investors who had bet wrong were either cursing, switching sides, or leaving the Nikkei futures market to try their luck in other investment products.
"Yanben, don't be so serious. Come, let's have a drink. This time, thanks to your intuition, we won so easily!" Watanabe raised his glass and wobbled it in front of Yanben Xun. In the hierarchical Japanese society, being toasted by a senior was a great honor.
Yanben Xun, who was deep in thought, was pulled back to reality by someone next to him. He quickly raised his glass, respectfully clinked it with Watanabe, and drank the sake in one gulp.
This was a Japanese club in Singapore, specifically for Japanese people in the city. Several men in suits were accompanied by two women in kimonos, who were serving them sake and sushi while they laughed and talked freely.
In a small room, a long table was placed in the center, and the guests knelt on tatami mats, sitting on both sides of the table. At the back of the room, a male geisha dressed as a woman, with a pale face and bright red lips, was playing a shamisen and singing.
"Ishtada, have you found any leads on the source of the funds?" Yanben Xun put down his glass and turned to a man who was already drunk. This man, named Ishtada Nobuo, came from a conglomerate with ties to the yakuza, which was why he was accepted into this social circle by the major conglomerates.
The reason was simple: the Japanese yakuza had a significant presence in Southeast Asia, far exceeding the influence of Japanese conglomerates. Local gangs were heavily influenced by the Japanese yakuza and had close cooperation in drug trafficking, prostitution, and smuggling.
Of course, although Singapore was a democratic country, it was essentially controlled by the Lee family, and internationally, Singapore's backing was China.
With these factors, the local gangs found it difficult to develop, but in neighboring Malaysia and Indonesia, the Japanese yakuza had a substantial presence.
"No leads, just that it's from an American broker. It seems the Americans are behind this!" Ishtada Nobuo shook his head and half-closed his eyes, answering. His hands were constantly roaming over the body of the woman next to him, making it unclear whether he was truly drunk or taking advantage of the situation.
"Americans..."
The room, which had been lively, suddenly fell silent. Most of the people present were around forty years old, having experienced the defeat in World War II and the arrogant American army taking over Japan. In their minds, the Americans were invincible.
Even after the period of rapid economic growth, and even today, when Japan's economy far exceeded that of the past, the Americans' intimidation of their generation remained unshaken.
"The Americans are nothing to fear. We will defeat them eventually!" Seeing the cold atmosphere, Ota, as the convener, raised his glass to encourage everyone.
"Yes..."
"Our great Japan will eventually break free from American control!"
...
The people present all shouted, returning to their drunken revelry. For their generation, it was unlikely to restore the glory of the Japanese militarist era, but the new generation of wealthy Japanese always thought about breaking free from American control politically.
"This won't be so simple!" In the midst of the cheers, Yanben's low mutter was completely drowned out. (To thank everyone for the recommendation votes exceeding 3,000, I am adding an extra chapter. I hope everyone continues to support me!)