Chapter 21 Oasis Investment Company, shorting international crude oil!
Chapter 21 Oasis Investment Company, shorting international crude oil!
Zhang Chi is an elite in the stock and futures field with extensive experience in the financial industry.
In August, he joined the investment team formed by Oasis City to trade Nasdaq index futures, earning the Oasis City government $450 billion, equivalent to 2767 billion yuan of Chinese currency.
After the mission was completed.
He was invited to join the newly established Oasis Investment Co., Ltd. as its general manager.
Zhang Chi's superior is "Director Li Zhou," a man whose presence is rarely seen.
He had never met Li Zhou, only had one of her contact details.
The development strategy and investment plan of Oasis Investment Co., Ltd. were all formulated by Director Li Zhou.
Zhang Chi is called the general manager, but he is actually just an implementer.
On May 9th.
Zhang Chi used his computer to report the company's recent situation to Li Zhou.
He slowly reported to his superior: "Director Li, the company has already recruited over a hundred employees, which are divided into venture capital, stock, futures, speculation, and asset departments."
Regarding the venture capital department.
As you instructed, we have already invested in several companies.
The department invested 1000 million yuan to become an angel investor in Meicai.com, acquiring a 20% stake.
The department invested 3500 million yuan to acquire a 25% stake in VIPKID's Series A funding round.
The department invested $500 million to become an angel investor in Daily Fresh, acquiring a 20% stake.
The department invested $1200 million to acquire a 25% stake in Megvii Technology's Series A funding round.
The department invested $1500 million to acquire a 10% stake in Yuan's Series C funding round.
The department invested $20 million to become an angel investor in SenseTime, acquiring a 2000% stake.
The department invested $3300 million in Databricks' Series B funding round, acquiring a 15% stake.
After seeing the text report, Li Zhou replied, "Mr. Zhang, you did a great job!"
Meicai.com is a B2B e-commerce website specializing in agricultural products and fruits and vegetables, with a peak valuation of 500 billion yuan.
VIPKID is a company engaged in English education for teenagers, with a peak valuation of 300 billion yuan.
Daily Fresh is a fresh produce delivery platform with a peak valuation of 280 billion yuan.
Megvii Technology is an artificial intelligence company with a peak valuation of 800 billion yuan.
Yuan Tutoring is a K-12 online education institution with a peak valuation of $170 billion.
SenseTime is an artificial intelligence company that focuses on computer vision and deep learning, with a peak valuation of HK$1578 billion.
Databricks is a foreign big data company with a peak valuation of $280 billion.
During this period, Oasis Investment Co., Ltd. was able to acquire shares in these companies at an extremely low cost, making a huge profit!
As the company invests in more and more businesses.
Five or even ten years from now, it can bring massive returns to Oasis Investment Co., Ltd.
At that time, whether Oasis Investment continues to hold shares in these companies or cashes out and leaves in time, it will be a good choice.
Zhang Chi continued his report: "Regarding the company's stock department, as you instructed, all the stocks we bought this month have seen impressive gains."
Jinlei shares have risen 161.9% this month.
Dongyuan Electric Appliances saw a 151.1% increase this month.
Jiangquan Industry saw a 145.7% increase this month.
Thanks to the soaring prices of these stocks.
The company has recently made substantial profits from its stock investments.
"very good!"
Li Zhou replied with satisfaction.
As a reborn person.
He has an exceptionally good memory and knows exactly how much the stock market rose in 2014.
Stocks like Jinlei Shares, Dongyuan Electric, and Jiangquan Industry all saw very high gains in September 2014.
Not only that.
Starting from the end of October 2014.
The domestic stock market is about to usher in an eight-month bull market.
The market index will surge from a low of 2279 points to 5166 points in June 2015.
After June 2015, the domestic stock market will enter a four-year bear market.
As long as you seize the opportunity.
The eight-month bull market has brought Oasis Investment Co., Ltd. a great deal of wealth, enough to support the subsequent development of Oasis City.
Next.
Zhang Chi then reported on the recent situations of several other departments.
The futures department has been performing poorly lately, with nothing particularly noteworthy.
The speculative department hoarded a batch of gold, Bitcoin, and taro, waiting for their value to appreciate.
The asset management department, meanwhile, purchased a number of properties with appreciation potential in major cities across the country.
Oasis Investment Co., Ltd. received a grant of 200 billion yuan from the Oasis Municipal Government.
Each department has a large amount of disposable funds.
Li Zhou replied, "President Zhang, I will now announce the company's next development strategy."
"Director Li, please speak!"
Zhang Chi's tone was very respectful.
Li Zhou typed in the input box: "Have the company's futures department short Brent crude oil!"
Upon encountering this task...
Zhang Chi was not surprised at all.
This year, the international crude oil market is experiencing its third oil price war, with crude oil prices continuing to decline.
Looking back at the international crude oil market in 2014, the overall trend was one of stability followed by a sharp decline.
In the first half of the year, European and American oil prices generally remained stable with a slight upward trend compared to the same period last year.
In the second half of the year, the crude oil market entered a period of continuous decline, with international crude oil prices continuing to fall.
Shorting international crude oil at this point in time is indeed a good choice!
Li Zhou asked, "Mr. Zhang, in US dollars, how much disposable cash does the company currently have?"
"$25 million!"
Zhang Chi truthfully stated, "The company's funds are used for venture capital, stock speculation, or hoarding fixed assets such as gold, Bitcoin, and real estate. Currently, we can only allocate $25 billion in disposable funds."
Without causing serious damage to the company's future operations.
Oasis Investment Co., Ltd. can currently raise a maximum of US$25 billion, equivalent to RMB153.75 billion.
"good!"
Li Zhou instructed, "President Zhang, have the company's futures department initiate a plan to short Brent crude oil."
This $25 billion was financed with a leverage ratio of 1:200.
In this way.
The futures department could then have $5000 billion to short international crude oil.
"Yes, Director Li!"
Zhang Chi made a rough estimate in his mind.
The latest price for Brent crude oil in the North Sea is $80 per barrel, with one lot being 1000 barrels, which is $8.
With $5000 billion in leveraged financial financing, one could buy 625 million short positions in international crude oil.
The trading unit for crude oil futures is 1000 barrels per lot, and the minimum price fluctuation is $0.01 per barrel.
In other words.
When the price increases by $0.01 per barrel.
Each contract yields a profit of $10.
A short position of 625 million lots of international crude oil futures would result in a profit or loss of $6250 million.
simply put.
For every 1 point increase in the price of Brent crude oil in the North Sea, it is equivalent to a loss of $6250 million for the futures department of Oasis Investments.
For every 1 point drop in the price of Brent crude oil, Oasis Investments' futures division earns $6250 million.
Due to financial leverage.
This operation carries extremely high risks.
Even the slightest market fluctuation could wipe out Oasis Investments' $25 billion in futures capital.
However, Director Li Zhou is the "superior" of Oasis Investment Limited.
He said he would short international crude oil.
Even if the risks are great.
Zhang Chi will obey orders.
In fact, Li Zhou was fully aware of the risks of shorting international crude oil with 200 times financial leverage.
However, he remembered it very clearly.
In the last quarter of 2014, international crude oil prices plummeted.
Brent crude oil will fall all the way down to $60 a barrel, with a total drop of up to $20 a barrel, or a staggering 2000 points.
Based on the calculation that Oasis Investments' futures division earns $6250 million for every point the price drops.
A drop of 2000 points is equivalent to Oasis Investments' futures division earning $1250 billion!
With this $1250 billion...
Oasis City will then have ample funds for urban development and construction!
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