In the entertainment industry, everyone has been reborn, but who will be their servant?

Chapter 115 The Final Wave

Previously, Qin Xuan's principal was $2532 million, and he had gone all in. Liu Xiaoli hadn't dared to do anything else these past few days, keeping a close eye on the Lehman Brothers curve.

As Qin Xuan said, all of them must be sold before the 27th!
Just as Qin Xuan had predicted, Lehman Brothers experienced a small rebound after the sale, proving his prediction accurate time and again.

Liu Xiaoli had become accustomed to his accurate predictions.

In a hotel in Shanghai, Qin Xuan was quite nervous. Standing by the window, gazing at the city's night view, he held his phone to his ear and asked, "Auntie, how much?"

"With 3x leverage, you earned $2705 million, and now you have $5237 million in principal."

Liu Xiaoli's tone was also somewhat excited.

Having lived for fifty years, this was the first time she had made such a successful investment, and it was also her highest-yielding investment to date, with a terrifying return of 1735%, which was simply superhuman.

Even Buffett's return rate is only 20%, so by that calculation, she is many times more successful than Buffett.

This was also the first time such a large sum of cash had been handled, more than 50 million dollars, equivalent to 3.66 million.

It's not that she's never seen so much money before, it's that she's never seen so much cash. Net worth and assets are two different things from real cash.

Many people with extremely high net worths, with assets worth hundreds of millions of dollars, simply don't have that much cash on hand.

Like Chen Jinfei, who claims to have a lot of US dollar assets, but actually has very little cash available.

This time, she bet even bigger than before, placing a bet of $100 million and earning $115 million, or $805 million. The money she invested in the Qin Dynasty was borrowed from her younger brother. The overseas dollars were not brought back, but she didn't bet them all; she kept some capital.

What if they fail? Then she and her daughter will have to live on meager rations.

It's still easy for Liu Xiaoli to borrow money in China; she doesn't need to resort to internal guarantees for external loans like Qin Xuan did before.

Hearing this number, Qin Xuan was initially excited, but then said with some dissatisfaction, "Three times leverage! Can't you offer even higher leverage?"

Lehman Brothers has fallen so much and only doubled in value, which is much more than the previous companies that fell. The financial crisis is about to reach its climax, and the accumulation is still too slow. It's not what I expected.

Those who make hundreds of billions of dollars at once must have a lot of capital and leverage, right? They used to leverage their gold trading with 50x or even 100x leverage.

“Three times is already the maximum. Any higher would be a violation of the rules, and you would be forced to liquidate your position and be punished. In the current environment, how could you possibly be allowed to short sell with high leverage? The U.S. Securities and Exchange Commission has tightened its short selling rules and generally only allows leverage of 2 times.”

"Only reputable institutions and accounts are allowed to use up to three times the limit. Your aunt has staked decades of her reputation on you, you understand?" Liu Xiaoli explained, still in her gentle tone.

Everyone in the world knows about the financial crisis, especially large capital institutions, so the United States cannot afford not to regulate it.

Hearing this, Qin Xuan realized that starting in mid-July, the United States seemed to be planning a complete ban on naked short selling of Lehman Brothers and more than a dozen banks and securities firms.

In other words, you can no longer engage in naked short selling as you did before, which means selling directly without borrowing securities; that's no longer allowed.

Instead, you have to borrow stocks from a brokerage firm, sell them, buy them back at a lower price, and finally return them to the brokerage firm to make a profit from the price difference – a complicated process. But this involves interest; you earn interest for every day you hold the stock.

In other words, there are still about two weeks left. He needs to borrow enough stock certificates during this period, otherwise he will miss this peak.

It is estimated that many large institutions have already received the news and have begun to borrow securities on a large scale. However, the number of stocks on the market is limited; it is not that you can borrow as much as you have money, nor is it unlimited.

This regulation only lasted for two months. At the height of the US administration in September, the US will further prohibit any form of short selling, including borrowing securities.

However, this doesn't mean he doesn't acknowledge the previous stock certificates. It simply means that from this point onward, opening any short-selling positions is prohibited. If he didn't acknowledge the previous ones, global capital might go crazy.

Therefore, Qin Xuan must make a firm decision to buy now. If he doesn't, not only will the stock certificates be snapped up, but he may also face a ban.

In that case, he would suffer a great loss!

Seeing that Qin Xuan remained silent, Liu Xiaoli said jokingly, "You can have multiple leverage if you want, but the rule is that it will only be allowed if the stock price rises. Do you want it?"

"How can we accept that! It's just fooling idiots. If the stock price is rising, is it still considered short selling?" Qin Xuan immediately said.

"Hehehe, Auntie was just kidding with you." Liu Xiaoli was in a good mood; she had made money.

Qin Xuan, however, said very seriously, "Auntie, this may be the last wave of short selling."

"Is this the last wave?" Liu Xiaoli asked in surprise.

"As you just said, the US is tightening restrictions, which means they realize the most severe crisis is coming. Since it's severe, they will definitely issue a ban. We can't gamble, so this time we need to bet firmly." Qin Xuan's tone revealed seriousness and determination.

In other words, if you buy now, you can only hold onto the stock until it crashes before you can sell it. Otherwise, it will be very difficult to enter the market again. This is the kind of market that's about to close down.

It's obvious to everyone that this financial crisis is getting worse and worse. How can it possibly make money for everyone? It will only evaporate some of the wealth and make others rich.

In other words, those who haven't entered the game shouldn't even think about entering it; this will be a massive transfer of wealth.

Just like Hong Kong suffered heavy losses in this financial crisis, with HK$15 trillion evaporating, the average loss per person was about HK$145 million to HK$209 million, which is quite terrifying.

Keep in mind that the Hong Kong dollar has a similar exchange rate to this currency, and the average loss is over a million dollars per person, leaving many people bankrupt.

Money doesn't just disappear into thin air; it simply moves from one person's pocket to another. They've probably already planned how to harvest it.

In his previous life, Qin Xuan had seen a news report that Wall Street alone had shared $1335 billion in salaries that year. Just imagine how much those big players made—it was all the blood and sweat of the world. If Qin Xuan hadn't been a reincarnated person, he wouldn't have been able to participate at all; he would have been plundered and exploited. It was simply not something ordinary people could participate in.

It's terrifying to think about. A massive amount of wealth from around the world has flowed into the unknown, and you don't even know where the money went. The more you think about it, the more chilling it becomes.

Seriously, the country has protected us so well.

In any case, the number of people committing suicide or jumping off buildings worldwide this year will be countless; capitalism is too despicable.

Thinking about this, Qin Xuan felt guilty, since he had also benefited from it. But even if he hadn't tried to take it, those people's wealth wouldn't have been safe.

"That's true." Liu Xiaoli's expression turned serious, and she realized it was time to close the door.

One has to admire the boy's keen sense of smell.

"So you can't do naked short selling like before anymore. You have to do it by borrowing stock certificates. I estimate that naked short selling will be prohibited. Also, stock certificates are hard to come by. We originally planned to diversify, so I'll take this opportunity to give you five companies. You can divide them into five parts and short sell all 5237 million." Qin Xuan was essentially diversifying the funds.

He was afraid he wouldn't be able to get a coupon if he didn't cut it into five parts. He felt it was already too late. Five parts would give him more options.

After all, those companies that are about to go bankrupt are worth hundreds of billions of dollars, and the entire market is worth trillions of dollars. His little bit of money is just a drop in the ocean.

This can avoid situations where you can't borrow stock certificates, and it also helps to diversify your funds and avoid attracting attention.

"Okay, which five companies are you going to short?" Liu Xiaoli's tone became serious.

"I'll type it out and send it to you via text message." Qin Xuan was afraid that language might cause misunderstandings, so typing was the most direct way.

The two did not hang up the phone. Qin Xuan pressed the keypad on his phone and dialed: Lehman Brothers, Fannie Mae, Freddie Mac, Royal Bank of Scotland, and Washington Mutual.

The stock prices of these five companies will plummet in the second half of this year, either through acquisition or bankruptcy protection, which is what impressed him the most.

"Did you see that?" Qin Xuan asked.

"I saw it!" Liu Xiaoli was looking down at her phone, memorizing these five companies; this information was crucial.

She now completely trusts Qin Xuan's words, after all, he has never been wrong.

If he were to make a single mistake and lose all his wealth, Qin Xuan would never dare to say anything wrong.

“Alright, then you can short these five companies. I estimate that the US will issue a ban in mid-July, so you don’t have much time,” Qin Xuan said briefly.

"Understood!" Liu Xiaoli nodded.

After discussing the details of the purchase with Liu Xiaoli, the two hung up the phone. Qin Xuan held his phone for a while, then opened his laptop to check international news.

A global food price crisis is engulfing many countries; energy and commodity prices are soaring; and regional military tensions are escalating. The international situation truly worries us all!
Even without looking at anything else, just by looking at international news, you'll know that a big wave is coming.

Meanwhile, back home, the country was still in a state of peace and prosperity, and the Olympics continued to fill people with pride and excitement.

The summer movie season was overshadowed by the Olympic-related media coverage. Apart from films with a patriotic theme about the Olympics, there were only low-budget films, and the rest were all Hollywood movies released in the last month or two.

There are many, including "Kung Fu Panda", "Hancock", and "The Mummy 3".

There was no so-called "domestic film protection month" this summer, since people were more focused on the Olympics and fewer were paying attention to movies.

Of course, there are also those who are stubborn, such as those who are making "Red Cliff," which will be released on July 10th, just a few days away.

There's only one big-budget domestic film, and all the other movies have moved their release dates back to the National Day holiday or the Lunar New Year holiday, so as not to compete with the Olympics for attention.

Whether Wu Baige did it on purpose or not, this person was extremely arrogant.

It is said that this person has offended everyone in the mainland film industry; from film and television capital to actors, no one likes him.

The reason is that in order to promote Taiwanese artists as quickly as possible, he used top mainland actors to play supporting roles to Taiwanese actors, so that mainland investors would think that Taiwanese actors were better than top mainland actors.

This naturally increased the popularity, market value, and number of roles available to Taiwanese actors. For example, Lin Chi-ling, Chang Chen, and Takeshi Kaneshiro were all very active during this period.

Some netizens also listed the actors in the movies he produced after returning from the United States, saying that he has created the record for the most actors from a single region trained by a Hong Kong or Taiwan director.

Not only that, but he was also exposed for saying at a private dinner that he would use mainland funds and top actors to cultivate his own actors in order to take over the mainland market. He also said that he was not afraid of the news getting out because he was an internationally influential director with absolute casting power.

Listen to how arrogant this is! Even Qin Xuan, who's usually so cocky, wouldn't dare say something like that, and he hasn't signed any actors.

Try to leave some meat and soup for others.

But this guy was incredibly arrogant; he not only insisted on using his own actors, but he also refused to provide food for the behind-the-scenes team.

Everyone has their own social circles. When Qin Xuan came to Shanghai, everyone demanded that they use actors from Shanghai's entertainment circle. You want their money but don't want to use their actors. Who's going to put up with you?

I don't know where he got his confidence from, but since no one invested in him, he slunk away.

So don't think too highly of yourself. No circle is indispensable. In any case, the Hong Kong circle doesn't like this person either. He has successfully offended all the circles. He is a genius!
It's true, sometimes a person's intelligence doesn't match their wealth and status.

(End of this chapter)