Counterattack starts with controlling probability

The Daxia Group and the Exchange's latest policy and regulations interpretation meeting was held as scheduled.

Inside the conference hall, Chen Kai observed the movements of the participants while whispering with Li Hao.

"Look, these new regulations are quite a bit of a change," Chen Kai said, raising an eyebrow. "Especially the margin requirement for foreign investors, which is 20% higher than for local investors. It's almost like they're taking sides."

Li Hao nodded and glanced at the representatives of major spot traders and secondary market investment institutions at the venue.

He sighed softly, "The global market is unstable, and domestic regulation has been increasing. Measures like these targeting foreign investors are probably intended to mitigate external risks and control potential capital fluctuations."

Chen Kai sneered, "Indeed, this is clearly an attempt to force foreign investors to abandon high-risk operations. Raising the margin requirement will simply discourage small investors and institutions with limited capital."

At this time, the specific terms and conditions began to be displayed on the screen in the conference hall. The line of detailed regulations made the participants frown and discussions broke out.

"Everyone! Please listen," an exchange representative took the stage and began to explain. "To address volatility in global financial markets, we've decided to adjust margin requirements for cross-border investments. Specifically, clients with international backgrounds will be required to prepay a 20% higher margin than local clients, and if exchange rates fluctuate, the margin requirement will be further increased."

There was a murmur of discussion in the audience, especially among several foreign investors sitting in the front row, whose expressions changed slightly.

Chen Kai noticed the changes in the expressions of several of them and whispered to Li Hao, "These foreign clients originally thought they could take advantage of the inconsistent opening times to profit from the domestic market. Now, I'm afraid they need to reconsider the risks."

Li Hao nodded slightly, his eyes showing a calmness. "The active flow of foreign capital does pose a threat to market stability. This move is a precautionary measure."

The spokesperson on the stage continued to explain the second new regulation, which stated that hedging customers also need to increase their margin ratio, set position limits, and are required to submit supporting documents regularly.

"The requirements for hedging clients have become stricter," Li Hao looked at Chen Kai, frowning slightly. "This will have a significant impact on spot traders. Their funding pressure is much greater than before."

Chen Kai nodded in agreement. "That's right. Not only are they increasing the initial margin, they're also requiring position limits and the submission of supporting documentation. This will significantly limit the liquidity of hedging funds. In the event of market fluctuations, their reaction time will be even slower. This isn't good news for Old Chen."

Several spot trading bosses nearby were also discussing in low voices, and many of them seemed a little anxious.

One boss murmured, "It's so troublesome to hedge now. I guess we can't hold so much inventory anymore. We need to pay more attention to inventory management."

Upon hearing this, Chen Kai couldn't help but reveal a hint of sympathy. He turned to Li Hao and said, "It seems these spot traders were caught off guard. The market has been changing rapidly in recent years, and manufacturers have become increasingly reliant on hedging. With the new regulations, their costs have skyrocketed."

Li Hao nodded and said seriously, "Although this is troublesome in the short term, in the long run, it may be to ensure the true market demand. In particular, requiring hedging clients to provide actual supporting documents can prevent speculation under the guise of hedging."

The content of the meeting gradually deepened, and the speaker on the stage mentioned the new regulations for speculative accounts.

Li Hao noticed that Chen Kai's expression was slightly stunned, and he was obviously thinking about the impact of the new regulations.

"Speculative accounts can enter the delivery month and even participate in physical delivery..." Li Hao muttered, turned to look at Chen Kai, and said, "There's something interesting behind this rule."

Chen Kai spread his hands and said, "I don't care. Once the liquidity dries up in the delivery month, there's nothing left for me to do. However, if more speculative funds enter the delivery phase, market volatility may increase. This will provide new opportunities not only for me but for all types of investors."

As they were discussing, several examples were displayed on the screen, and the exchange representative on the stage explained the implementation details of the new regulations one by one.

After the explanation, the organizer invited Director Zhao from the Exchange Board of Directors, as well as the futures analyst team and the securities research institute team to come on stage to provide multi-faceted interpretations with the participants.

On the stage, Director Zhao took the microphone and said to the audience, "The new regulations regarding overseas customers, hedging, and speculative accounts are aimed at reducing systemic risks while enhancing market transparency and stability."

He glanced at the audience and added, "Of course, I also hope that everyone will be more rational in their investments and allocate risks appropriately."

After hearing Director Zhao's speech, Chen Kai nodded slightly and said to Li Hao, "It seems that the policy intentions this time are really far-reaching. It seems that the market trend will change more obviously in the future."

Li Hao pondered for a moment, then said, "We need to quickly adapt to the new trend and prepare in advance. Xu Lei is already working overtime to optimize the strategy. We hope to optimize New Star Investment's strategy before the new regulations are officially implemented."

Chen Kai nodded, his eyes revealing a hint of determination: "That's right, in this situation, the only way to gain a firm foothold is to go with the flow."

At this moment, the team led by Xu Lei and Feng Zhiyuan is busy in the office, with lines of code and analysis charts flashing on the computer screen.

Xu Lei would periodically glance at his team members and exhort them, "Everyone, make the most precise adjustments to ensure that the new strategy aligns closely with the market."

Feng Zhiyuan quickly tapped away on the keyboard as he said, "No problem. We'll finish it as soon as possible to ensure that the adaptation strategy is online as soon as the new regulations take effect."

At the same time, policy interpretation continued in the venue. The media and participants gathered on the scene were carefully recording the various regulations and discussing the various possibilities brought about by the new regulations.

The market responded enthusiastically to these new regulations, and all parties engaged in heated discussions on future impacts and countermeasures.

Li Hao looked at the crowd around him who were talking, and secretly felt fortunate that he had made arrangements in advance and established a strong data support and technical team.

Today, Xinxing Zhitou’s strategy is at the forefront of the market. If it can successfully adapt to the new regulations, it will not only stabilize its existing customers, but may even attract more capital inflows.

"Chen Kai, every adjustment to the trading rules is not only a challenge, but also a rare opportunity."

Li Hao whispered, his eyes gleaming with excitement.

"I don't know if you can adapt, but I definitely can," Chen Kai said with a smile. "Plus, with the efforts of Xu Lei's team at New Star Investment, this new regulation might actually demonstrate our strengths."

The meeting lasted the entire day, from ten in the morning to five thirty in the afternoon.

There were endless discussions and questions about the new policy at the venue, and almost every participant gained useful information from this interpretation meeting.

Li Hao and Chen Kai constantly shared the key points of policy interpretation in the company group, and made optimization suggestions for Xingxing Zhitou's investment model in real time, trying their best to ensure that team members understood the core of the new regulations at the first time and kept the strategy at the forefront.

Xu Lei also keeps a close eye on Li Hao's progress, exchanging analysis with him from time to time, and further adjusting the model based on the needs and risk preferences of different customer groups.

As soon as the meeting was over, Li Hao and Chen Kai were about to breathe a sigh of relief when Hu Chao hurried over and, with a smile, invited them to a dinner that had been arranged in advance.

This dinner is very important because Chen Qiming will attend.

Seeing Li Hao and Chen Kai hesitate, Hu Chao lowered his voice and said, "This is a rare opportunity. Mr. Chen is here in person, so feel free to ask any questions you have. As long as this can be finalized, the cooperation between Huanyu and Nova will naturally be a piece of cake."

Li Hao and Chen Kai looked at each other, nodded, and prepared to go to the banquet.

However, Chen Qiming suddenly made an unexpected request: "Mr. Hu, please invite Andy, the representative from Bloomberg, and Stanley, the representative from Morga Capital, to come with us. We can take this opportunity to have a business discussion."

Chen Kai frowned after hearing this and said almost subconsciously, "Dad, inviting Bloomber and Morga's people at this time? What does that mean?"

Before he could finish, Chen Qiming interrupted him: "Xiao Kai, don't get excited, listen to me. Andy and Stanley are also partners of Daxia Futures. Many of their businesses overlap. Having them here is no big deal."

Chen Qiming's tone left no room for doubt, and it was obvious that he had made a decision.

Li Hao was secretly surprised, and also understood that Chen Qiming's words were more or less intended to give Hu Chao a way out.

As the arranger of Daxia Futures Sales Department, Hu Chao probably couldn't refuse the temporary participation of a super organization like Morga.

Chen Qiming pointed it out for him, which eased the awkwardness of the situation.

Li Hao quickly adjusted his mindset, knowing that tonight's meal was probably no longer an ordinary negotiation, but more like a contest of strength between the two sides.

"Fortunately, I was well prepared." Li Hao thought to himself.

He did not object to Chen Qiming's request, but just glanced at Chen Kai.

Chen Kai sighed helplessly, and although he was a little reluctant, he could only nod in agreement.

Along the way, Chen Kai whispered to Li Hao, "The Bloomberg representative is fine; after all, data services are a point of communication. But Morga Capital? I wonder what Old Chen is up to."

Li Hao patted his shoulder and whispered, "Don't worry. We've already done our preparations. Since this is an inevitable head-on confrontation, there's no need to hide."

Soon, the group arrived at the reserved restaurant. The exquisite private room had soft lighting and was decorated with great care.

After the seating was arranged, not long after everyone sat down, Andy and Stanley walked into the room together and nodded and greeted everyone.

Andy acted very friendly and said in a gentle tone, "Mr. Chen, Mr. Hu, long time no see. It's an honor to have dinner with you all this time."

Stanley, on the other hand, acted quite cautiously, with a slightly scrutinizing look, as if he was sizing up Li Hao and Chen Kai.

After a moment, he nodded slightly and said, "You are all leaders in the industry. I am honored to be gathered here with you today. I am sure you will benefit a lot."

After a brief greeting, Chen Qiming coughed lightly, announcing the start of dinner.

After a round of post-dinner drinks, Hu Chao spoke first, saying with a smile, "It's a rare opportunity to gather all of you tonight, so why not share your views on the new policies? After all, the starting points and effectiveness of these policies still need to be tested by everyone present."

Andy smiled slightly, raised his glass and toasted everyone, then slowly said, "Bloomberg is committed to providing real-time, accurate information in its global data services. We believe that data stability is crucial to the financial markets. The new policy will further enhance market transparency and give our data providers more room to play."

Chen Qiming nodded, seemingly agreeing with his words. He then turned his gaze to Li Hao and Chen Kai and asked pointedly:

"Mr. Li, Xiaokai, as core members of Noah Technology and New Star Investment, what do you think of the impact of these policies on the domestic investment market?"