Generally, large funds and institutions participating in the market do not easily expose their positions, as doing so would leave them vulnerable to the opposition's firepower. Correspondingly, brokerage firms and channels also keep such information highly confidential.
However, this is only true for general cases. In reality, the market is never short of insider information, which is often complex and difficult to verify.
The essence of investment is simply buying low and selling high. With hedging tools, it is also possible to sell high and buy low. Of course, this applies mainly to the secondary market, which ordinary people can participate in.
In fact, finance encompasses much more than this. Industries such as banking, insurance, trusts, funds, and rating agencies all belong to the financial sector, each with its own distinct domain.
Since there is a secondary market that everyone can participate in, there is naturally a primary market where only certain investors can participate, offering a wider range of investment methods and products.
However, one must not assume that investors in the primary market or those with targeted clients have any particular advantage.
The buyer is never as shrewd as the seller, a truth that stands the test of time.
There was a real case where a top-tier investment bank on Wall Street, which consistently ranked among the best, packaged a financial product primarily based on the Ecuadorian index into a high-yield, low-risk product through a series of complex terms and methods. They sold it to the CFO of a large American company. Until the significant loss occurred, the supposedly astute CFO still believed he was buying U.S. Treasury bonds.
Shocking!
Of course, claiming compensation was impossible. The contracts for these products included a thick stack of exemption clauses.
Wall Street investment banks only hire top graduates from Ivy League schools, partly because these individuals are indeed excellent, and the banks utilize their intelligence in various aspects of the financial industry. On the other hand, with the platform of investment banks, these individuals have a bright future and may become a significant asset to their former employers.
Take Goodman Investment Bank, for example. Several U.S. Treasury Secretaries have come from this company. During the financial crisis, the president and the Treasury Secretary, despite strong opposition, still injected massive funds into these nearly bankrupt companies.
Of course, past connections were not the only reason for the rescue, but that is another story.
When Zhong Shi obtained the trading records from the Singapore Exchange, he keenly noticed the market's movements and the flow of funds.
For individuals or institutions, trading records are highly confidential and are not circulated unless required by regulatory authorities. However, for the exchange, the aggregated trading records of all participants are public and disclosed in real-time for investors' reference.
A series of high and low K-lines form undulating waves, with each peak or trough representing intense battles.
"The trading volume has nearly doubled compared to last month, and the influx of new funds is also significantly higher. It seems that institutions close to the U.S. government have received the wind and are starting to act!" Zhong Shi muttered to himself.
In the coming year, the last decade of the 20th century, Japan's bubble economy will burst. The stock market, which had been soaring for over three years, will crash, followed by a real estate collapse the next year. This will lead to economic depression, bank failures, and corporate bankruptcies, causing Japan's economy to stagnate for a full decade.
At one point, the ambitious Japanese had boasted of challenging the United States' position as the global economic leader, but this heavy blow completely knocked them down.
"It's not time to enter the market yet!" Zhong Shi stared at the chart for a long time, muttering to himself.
This was not the result of his research but the experience of the future. In 1989, the upward momentum of the Japanese stock market had not yet completely dissipated, and the peak would occur in the last few trading days of the year. In 1990, the Japanese stock market would turn and plummet, initially not obvious, but after several key events, it would form a collapse.
During this period, it is hard to say that the U.S. government did not play a role.
"Ring, ring, ring—"
The phone rang. Few people knew this number, and phone calls were expensive in those days. After a moment's thought, Zhong Shi realized it might be from Hong Kong, wondering what had happened there.
"Mr. Zhong, I need to discuss something with you!" As soon as he picked up the receiver, he heard Liao Chengde's anxious voice.
"What's wrong? What happened?" Zhong Shi asked, sensing the urgency in Liao Chengde's tone, which he found very strange.
"It's like this. I need to borrow some funds from you." After hesitating for a while, Liao Chengde finally said cautiously. Normally, with their relationship, borrowing money would only require a simple request, but Liao Chengde, a wealthy man, would not usually ask for a loan.
"What exactly happened?" Zhong Shi realized something was seriously wrong and thought for a moment.
"It's Xiaohua. This child lost five hundred million in Macau. He's now being held captive and needs to be ransomed within three days, or else..." Liao Chengde's voice broke as he spoke.
While he was not familiar with the methods of Macau's casinos, he knew the consequences of not paying the debt. In his younger days, he often saw debt collectors demanding payment, and once, he even witnessed a gambler's right hand being cut off.
"What? Such a thing happened?" Zhong Shi was incredulous. Although Liao Xiaohua was somewhat unruly, he had calmed down in recent years. How could he lose so much money all at once?
Five hundred million Hong Kong dollars would stack up like a small mountain.
"It's like this. After that incident, his uncle often took him to Macau to relax. This child developed a gambling addiction, starting with small amounts but gradually increasing. He would often stay out all night. A few days ago, I planned to call him back to work, but two men from the casino came to me, saying Xiaohua owed five hundred million in gambling debts and demanded I pay within a week to ransom him." Liao Chengde calmed down and explained the situation.
"Macau..." Zhong Shi fell silent.
Macau, a Portuguese colony, is much smaller than Hong Kong, with a much smaller population. Its economy is entirely dependent on the gambling industry, as it cannot rely on traditional industries like manufacturing or agriculture. Over the decades, Macau has become one of the world's famous gambling cities, alongside Las Vegas and Monaco.
Since the 1960s, the gambling industry in Macau has been controlled by the Ho family, a powerful clan with influence in both the legal and illegal sectors. When the Ho family speaks in Macau, even the governor must take notice.
"How much more do you need?" After a few minutes of thought, Zhong Shi finally asked.
"I still need over three hundred million. My properties and stocks are not easy to liquidate, so I had to swallow my pride and ask you for help." Liao Chengde was overjoyed when Zhong Shi agreed and quickly added.
"No problem! Discuss the money with Zhong Yi, but when you get Xiaohua back, tell him he belongs to me for the rest of his life. He won't be free until he pays back the five hundred million."
Liao Xiaohua must be given a lesson he will never forget to help him mature quickly.
Zhong Shi's demand was something Liao Chengde could not refuse, not only because he needed help but also because he trusted Zhong Shi's maturity and responsibility. He felt comfortable leaving his son in Zhong Shi's care.
After hanging up, Zhong Shi was troubled and restless. He informed his mother and went out.
While aimlessly wandering the streets, Zhong Shi was actually very frustrated. This sudden event had disrupted his entire plan. The funds he had reserved in Hong Kong were meant to deal with the Japanese stock market crash, but now he would have to use the funds he had invested in the U.S. stock market.
All the funds in the U.S. stock market were invested in stocks that would soar in the future, all of which were highly profitable and growing companies. Holding onto these stocks would significantly increase his assets.
Zhong Shi had a rare opportunity to enter the market, the 1987 "Black Monday." During that confidence collapse, many high-quality company stocks fell to unbelievable prices, allowing Zhong Shi to maximize his acquisitions.
As the sky grew darker, Zhong Shi had no intention of going home. He walked and thought about how to optimize his U.S. asset portfolio to minimize the impact of this event.
In the 1980s, the small county had poor public security, especially at night. Under the dim streetlights, fights often broke out. In such a small county, there were also gangs, and young people with nothing to do often banded together to fight, releasing their pent-up energy.
Unfortunately, Zhong Shi, who was aimlessly wandering, happened to encounter one such fight.
"Damn it, the East City is our territory. Why did you, the Wolf Gang, come here uninvited and even hurt our brothers?" A young man with a bare upper body said angrily.
Behind him were a dozen similarly fierce-looking young men, holding various lengths of sticks, looking menacingly at the group across from them.
"When did it become your territory? I hereby declare that this area is now under our control!" Another leader-like figure spat out the toothpick in his mouth and retorted without backing down.
This man was wearing a windbreaker and a long white scarf, and strangely, he was wearing large sunglasses under the dim streetlights, making it unclear if he could see clearly.
This was the standard "Little Ma" look, which became the standard for young people after the movie "A Better Tomorrow" became popular on the mainland.
Behind him, there were also a dozen similarly dressed young men, holding various weapons, glaring at the opposing group.
"Damn it, let's fight!" Seeing that "Little Ma" had no intention of making peace, the first speaker made a gesture and charged forward. His brothers, seeing the signal, followed without hesitation, wielding their weapons.
The opposing side, well-prepared, did not back down. Seeing the other group charge, they shouted and rushed forward one after another.
"Bang," "Crack," "Ah"...
The sounds of sticks hitting, screams, and curses filled the air, one after another.
Before long, the fight was over, and the "Windbreaker Gang" was defeated. The few who could still stand fled, leaving seven or eight people lying on the ground, groaning in pain. It was unclear if their defeat was due to the sunglasses.
The victorious side did not show any mercy, chasing the fleeing enemies, especially the leader, who pursued "Little Ma" relentlessly.
"Damn, stand still! You crossed the line, and I'll beat you to death today!" The leader shouted, swinging his wooden stick.
"Clang!"
The flying wooden stick did not hit the disheveled "Little Ma" as expected but instead struck Zhong Shi, who was deep in thought on the other side of the road.
Zhong Shi felt a sudden weight on his head, saw stars, and then lost consciousness, falling heavily to the ground.
"Someone's dead! Someone's dead!" "Little Ma," looking back, saw a passerby hit by the flying wooden stick and bleeding profusely, and screamed in terror.
Hearing that someone had died, the thugs who were still chasing the fleeing enemies immediately scattered and disappeared into the darkness.