Chapter 38

"1,100 points! The Hong Kong stock index fell by more than 1,100 points in a single day, the worst day since the index was launched!"

In the private room of the Victoria Hotel restaurant, Sun Wei shouted wildly as if he had taken a stimulant. Beside him, Wang Yunlong looked at his friend with dissatisfaction and said, "Sun Wei, can't you control your emotions? Mr. Zhou is still here watching us!"

Sun Wei's face turned a bit awkward. He apologized to Zhou Ming, "I'm very sorry, Mr. Zhou. I've embarrassed you."

Zhou Ming waved his hand, indicating it was no big deal. Today was the first day of trading after the Hong Kong market reopened. Everything unfolded as Zhou Ming had predicted: the speech by the chairman of the Stock Exchange, Zhang Zhaofu, at yesterday's press conference did not boost market confidence. Instead, the four-day trading halt exacerbated market panic. When the Hong Kong market opened today, the stock index plummeted by 650 points in just 15 minutes. In the morning, both the chairman of the Stock Exchange, Zhang Zhaofu, and the Hong Kong government announced they would inject a large amount of funds to stabilize the market, but it was unable to prevent the collapse. By the close of trading in the afternoon, the stock index had fallen by more than 1,100 points, a drop of 35%.

This decline was not only the largest single-day drop in the history of the Hong Kong stock index but also set a world record for the largest single-day decline. Over 6 billion Hong Kong dollars in capital evaporated from the market in just one day.

According to Zhou Ming's stock index contract, he could earn 20 million Hong Kong dollars in a single day. This amount might not seem much to some financial tycoons, but considering that Zhou Ming had only 520,000 Hong Kong dollars as initial capital, if he had started with a fund company and 20 million Hong Kong dollars in capital, he could have pocketed the 6 billion Hong Kong dollars that evaporated in this stock market crash. In other words, the development of the entire Hong Kong city over the past few years would have been working for Zhou Ming alone.

Thinking about this, Sun Wei trembled with excitement. He said admiringly, "Mr. Zhou, you are my idol! Your prediction of this global stock market crash is truly breathtaking. Even the most insightful people and the most advanced computers in the world can't match you!"

Lin Muqing sneered sarcastically, "Then why didn't you let us place the orders at the beginning?"

"That was the stupidest thing I've ever done!" Sun Wei said, "I was blind and couldn't see Mr. Zhou's abilities, so I tried to obstruct him. I really regret it! If I had listened to Mr. Zhou and placed the short orders with him, I could have made a fortune too!"

"Enough, stop talking nonsense," Zhou Ming turned to Wang Yunlong and asked, "What do you think about the future trend of the Hong Kong stock market?"

Wang Yunlong smiled bitterly, "Mr. Zhou, don't put me in a difficult position. The current situation of the Hong Kong stock market is completely chaotic. Although I also thought the four-day trading halt would increase market panic, I didn't expect the market to fall so sharply on the first day of reopening. Everything is wrong, and I don't even know where to start my analysis."

Finally, Wang Yunlong summarized, "Mr. Zhou, your analysis is completely correct. The economy of Hong Kong looks good on the surface, but it's actually a bubble. The current stock market crash is the process of the bubble bursting."

"Then do you think the Hong Kong stock market will continue to fall?" Zhou Ming asked.

Wang Yunlong nodded, but Zhou Ming had a different opinion, "I think the bubble in the Hong Kong stock market has already hit rock bottom."

Wang Yunlong and Sun Wei looked up at Zhou Ming, their eyes filled with disbelief, as if they had just heard that the Chinese national team had won the World Cup. They didn't understand why Zhou Ming would make such a judgment, but they didn't dare to question him because he had predicted the Hong Kong stock market crash.

"As a Hong Kong resident, you should have some confidence in the Hong Kong economy," Zhou Ming said. "The stock index fell by 1,100 points in a single day, which clearly shows that the market panic had reached its peak after the four-day trading halt. As the financial center of the East, Hong Kong still has a solid economic foundation and won't collapse to the level of twenty years ago."

"So, Mr. Zhou, do you mean the Hong Kong stock market will rebound soon?" Wang Yunlong asked uncertainly.

Zhou Ming shook his head, "The market panic is still there, and the conditions for a rebound are not met. I predict that in the next one to two weeks, the Hong Kong stock market will continue to fall, but the decline won't be too large. It will return to a more realistic index, accurately reflecting the current economic situation in Hong Kong."

"Then, Mr. Zhou, are you planning to withdraw your funds from the futures market?" Wang Yunlong asked uncertainly.

"Yes, I will go to the futures company tomorrow to settle my stock index contract."

Zhou Ming looked at Sun Wei, who immediately patted his chest, promising to help Zhou Ming with the matter. Zhou Ming then asked Wang Yunlong, "How is your progress in investigating those fund companies?"

"Mr. Zhou, as you instructed, I investigated 30 fund companies in Hong Kong. After screening, I believe five of them particularly meet your requirements. Due to the stock market crash, their financial conditions are very poor, and they are eager to sell," Wang Yunlong said, handing over a stack of documents to Zhou Ming, "Mr. Zhou, here are the materials for these five companies. Please review them."

Zhou Ming took the documents and handed them to Lin Muqing, "I understand. After I review these materials, I will let you know."

Wang Yunlong nodded in agreement.

...

The next day, Zhou Ming and Lin Muqing followed Sun Wei to the Fenghui Futures Company. Sun Wei led the way and said to Zhou Ming, "Mr. Zhou, I apologize, but because the financial amount in your account is huge, according to our company's regulations, your case will be automatically submitted to my supervisor, who will handle the settlement for you."

Zhou Ming nodded, understanding. The financial market in this era was far less convenient than in the future, and the futures trading of the Hong Kong stock index had only been launched for less than a year, still in a trial phase with many imperfections. Therefore, it was not surprising that there were additional procedures.

Sun Wei led Zhou Ming and Lin Muqing to his supervisor's office. Before they arrived, Sun Wei had introduced his supervisor to Zhou Ming, who knew that his name was Wei and that he was the marketing director of Fenghui Futures Company.

"Boss, this is my client, Mr. Zhou. He is here to settle his Hong Kong stock index futures contract today," Sun Wei said.

"Settle? Are you out of your mind, Sun?" Wei looked up and glared at Sun Wei, "I didn't want to criticize you in front of the client, but you're really making me angry. Haven't there been many clients asking for settlement in the past few days? But with the Hong Kong stock index falling so sharply, most of their money is already gone, and they can't even close their positions. How can they settle? And you bring them to me? What are you thinking?"

Sun Wei shrank back under Wei's glare but still said firmly, "Boss, I know many clients have lost a lot due to the stock market crash and can't settle, but Mr. Zhou can. He placed a short order."

Wei slammed his hand on the table and pointed at Sun Wei, "Are you kidding me? The Hong Kong stock index is falling so sharply, and short orders are impossible to execute. Are you here to mock me?"

"No, Boss, Mr. Zhou really placed a short order, ten days ago," Sun Wei said.

Wei was stunned for a moment, then asked in disbelief, "Sun, what did you say? Mr. Zhou placed a short order ten days ago? How many contracts did he place?"

"Not many, 52 contracts," Zhou Ming answered for him.

In terms of numbers, 52 contracts were not many, but that was under normal circumstances. Now, with the Hong Kong stock index falling sharply every day, 6 billion Hong Kong dollars evaporated in just one day. These 52 contracts could easily earn 10 million Hong Kong dollars. Moreover, Zhou Ming placed the order the day before the stock market crash began. Over ten days, even with the four-day trading halt and the weekend, he could have earned at least 20 million Hong Kong dollars.

Wei drew a sharp breath, "52 contracts? My God! Are you a prophet?"

Zhou Ming smiled casually, "Can I settle now?"

Wei nodded hurriedly, "Of course, Fenghui Company will always provide the best service to Mr. Zhou."

Wei then called the finance department to start settling Zhou Ming's short order. Soon, the results came in. Wei held the faxed document and said to Zhou Ming, "Mr. Zhou, due to the stock market crash, the Hong Kong government and the Stock Exchange have imposed certain controls on the market. Therefore, your short order cannot be fully settled. We will settle the maximum possible amount according to your request. You can now receive 20 million Hong Kong dollars. Do you want to settle now?"

Zhou Ming nodded, "Yes, settle now."

Wei thought for a moment and suggested, "Mr. Zhou, as you can see, the Hong Kong stock market is still volatile. Since your short order has already been placed, why not continue? I believe the Hong Kong stock index will continue to fall in the foreseeable future."

"I know the Hong Kong stock market will continue to fall, but the decline won't be too large. I want to settle the 20 million Hong Kong dollars today and transfer it to my account at Fenghui Bank," Zhou Ming said.

Seeing Zhou Ming's firm attitude, Wei sighed, "Mr. Zhou, you are a man of determination and foresight. I believe your success in the Hong Kong stock index futures market is not a coincidence. I hope you will continue to choose our company in the future. We will do our best to serve you."