Chapter 250: Launch
City Government, Gu Yansheng came to find Fu Xiao’an.
“Mayor Fu.”
“Brother Gu.” Fu Xiao’an walked out from behind the desk and smiled, “I heard you went on a business trip to Hong Kong. How did the peace talks go?”
Gu Yansheng chuckled. This was supposed to be a secret operation, but everyone knew about it. The Japanese’s confidentiality had gone straight to the dog’s stomach.
“What else could it be? Negotiations, just dragging things out, no progress that fast.” Gu Yansheng said disdainfully, sat down and said, “Making money is the priority. The people from Chongqing went back to report to Old Jiang, and I came back immediately. How’s the cotton yarn situation?”
“Don’t worry about this. Progress is definitely smooth. Now the cotton yarn futures price has been rallied by me to 120 silver dollars per pack. I’ll stay here for a few days, look at this.”
Fu Xiao’an picked up a stack of newspapers from the desk and handed them over, “To make the market, the most important thing is to attract bandwagon selling pressure. The reason that many hands make light work, Brother Gu, you definitely understand.”
Gu Yansheng looked at the newspapers, which recorded all the public opinion offensive made by Fu Xiao’an.
From the initial release of bad news to suppress the stock price, to now the gossip propagating that cotton yarn products everywhere are going to rise in price. The propaganda is not excessive, it’s also factual, and the public opinion guidance is not very enthusiastic.
Gu Yansheng waved the newspaper and smiled, “This fire seems to be burning very mildly.”
“It’s not time yet, haha. Winter is coming, the market already expects cotton yarn to rally. Even if we do nothing, many hands make light work, it will still rise as it should.
Every year at this time, there will be funds ambushing in advance, waiting for the market maker to rally the price so they can cash out a sum.
So the current propaganda doesn’t need to be that heated.
The real life-and-death point is at 150 silver dollars.
This cotton yarn has historically rallied to around 150 silver dollars every year, forming a consensus. At this price, massive selling pressure appears.
Just last year there was a mishap, it rallied to 120 and then quickly plummeted, so I’m currently maintaining the price at 120 silver dollars, which everyone feels is a relatively safe range.
The people holding cotton yarn futures now neither want to sell nor really want to buy, all watching and waiting. This balance is maintained.
This year, with the news that cotton mills are going to raise prices, this 120 silver dollar price will definitely be pulled higher, but exactly how high, no one knows except us.
I’m oscillating the stock price here, letting those greedy for small profits make money and exit. The chips will come into our hands.”
Fu Xiao’an was afraid Gu Yansheng would nitpick, so he explained more to avoid hard feelings, “Brother Gu, don’t think that letting them make money means we lose money. This stock market is like a casino. The bosses opening casinos on the Shanghai Bund have a famous saying: I’m not afraid of you winning money, I’m afraid you won’t come. Today he exchanged 120 silver dollars from our hands with tickets. Sooner or later, one day I’ll make him pay back 200 silver dollars.”
“Hahaha, Mayor Fu, that’s words of wisdom. We haven’t announced the specific price we’re going to rally cotton yarn to yet, right?”
“It’s not time to announce yet. This price will be released with specific numbers to cooperate with the later rally. Now let them feel itchy, half-believing and daring not to fully believe, not believing but afraid it’s real.
Brother Gu, last year’s cotton yarn plummet, you know, only today does this matter seem particularly interesting.
In the past, without 150, those ambushing major investors would never sell no matter what. They know the market maker also needs to make money and exit. 120 silver dollars doesn’t earn much, it will definitely rally higher.
But because of last year’s cotton yarn plummet, they’re all uneasy this year. Expectations broken, this is greatly beneficial to our market operation.
Wonderful beyond words.” Fu Xiao’an slapped the armrest and sighed, looking quite delighted.
Gu Yansheng listened and chuckled, “How about a drink then?”
“Bring one.” Fu Xiao’an got up, went to the liquor cabinet, and took out whiskey, Jack Daniel’s brand, American goods.
“Do merchants have any opinions?” Gu Yansheng watched him pour the liquor and asked casually.
“What opinions could they have? I’ve communicated with 76, now strictly controlling all merchants signing contracts, going door-to-door to warn them. Without our permission, if they dare sell goods privately, the result is factory closure and arrest.
But as long as they obey and cooperate with us, this year we can definitely take them to make a sum.”
Fu Xiao’an poured the liquor, handed over a glass, sat his butt on the sofa shaking it, crossed his legs and sipped, “Actually, taking their goods isn’t impossible. They’re short of money and selling urgently, or due to last year’s cotton yarn slow sales incident, they don’t believe it will rise in price. It’s human nature.
But right now I just can’t open this mouth. I need to reserve funds for the later stock price rally.
With the overall situation controlled, no one wants to sell together. If two or three need money urgently and use connections to find me, if we take it, we take it. Do others a favor, right?
Anyway, afterwards they’ll definitely regret it. They really don’t have the fate to make money, won’t eat three dishes in this lifetime.”
Gu Yansheng nodded. This was the truth. Now it’s believe and have, disbelieve and none. Cotton yarn price is about to skyrocket. This year should be the best year to make money in the next few years. Missing it means regretting for life.
“With Mayor Fu at the helm for the stock market, I’m very relieved. How’s the spot market?”
Futures are futures, spot goods are spot goods. Gu Yansheng’s ultimate goal is still to sell the cotton yarn in his cotton mill at a high price.
Fu Xiao’an said easily, “Merchants have already come. Shanghai is the largest cotton yarn distribution center. In previous years at this time, they came early to order goods cheaply. Manufacturers, to get some advance payment in advance, were willing to sell some to them to recycle funds.
But this year we issued a strict order, they couldn’t order any goods, and the price quickly rallied from 70 to 120. The early arrival has no effect.
They’re very anxious now, every day out-of-town bosses ask through acquaintances when we’re releasing goods.
My current plan is to start releasing goods to them from 250 silver dollars, little by little, first come first served.
At that time, some will complain the goods are expensive, but no matter, love it or leave it, the later the more expensive.
How much profit depends on their boldness.”
Fu Xiao’an is truly an old hand at doing business. Gu Yansheng had no objections.
“When to start?”
“Can start anytime. Since you’re back, tomorrow then. Let all of Shanghai’s stockholders enjoy this rally feast.”
“Then I’ll wait for your good news.”
Gu Yansheng got up and left.
Go home to eat, and tell Shen Shuyun the negotiation content along the way, so she can report to Boss Dai.
This matter must be reported to Boss Dai, otherwise if Boss Dai finds out, he’ll suspect his loyalty. Gu Yansheng is not that kind of person. His loyalty to Boss Dai has never changed.
Once this is done, Gu Yansheng can rest for a bit. As long as the new government isn’t established, there’s no work. As for Shanghai’s official business, it’s all routine, subordinates can handle it.
The judicial department is just trivial matters. Gu Yansheng doesn’t take money from his own department. That little funding is better used to let subordinates eat and drink well, as long as they don’t cause trouble.
The next day, Fu Xiao’an’s offensive launched.
People were already standing early at the exchange entrance, waiting to enter for opening. There’s still time, so everyone gathered chatting.
“This year’s cotton yarn market trend is too strange. Yesterday at the tea house I heard those out-of-towners say they came all the way to Shanghai to procure goods. In previous years at this point they’d have ordered, but now no one is selling to them. They all say goods are scarce, prices will rise. Ask them how much, they won’t say. You say, that recent rumor about cotton yarn price increase, is it real?”
“It must be real. I have a friend working at a cotton mill. Now cotton yarn production is non-stop day and night, warehouses are full, but not a piece sold. The boss won’t sell.”
“Hey, I heard merchants have bid up to 150 per piece, and they still won’t sell. How much do they want? Prices can’t keep rising like this.”
“Don’t believe every wind. Cotton yarn wants to rise to 150 per piece? Didn’t you hear the recent city government propaganda meeting saying this year’s cotton bumper harvest? How could prices be that high?”
“That’s not how it works. This year’s cotton yarn was bountiful, but at the warehouses outside the city, Japanese and New Fourth Army fought. Don’t know whose cannonball blew up the cotton yarn warehouse. That big fire, flames to the sky. I tell you, visible from ten miles away.”
“Real or fake?”
“Of course real, I saw it with my own eyes.”
“But the stock price doesn’t look like it. Those major investors have better information than us. If real massive production cut, why has cotton yarn futures price stayed at 120 for so many days?”
“Market maker absorbing chips. Didn’t you see the recent quick rally from 70 straight to 120? Never that fast in previous years?”
“Absorbing chips at 120, you dare say that. If you were the market maker, would you absorb at 120?”
Several people chatting, a group of stockholders around perked up ears listening. Anyway idle, listening carefully, felt though these two opinions differ, both had some reason.
“Opening, opening.”
As soon as the gate opened, stockholders rushed in like bees. The debating pro and con sides followed closely. Of course, both pro and con were Fu Xiao’an’s people.
Inside, continued debating, loudly discussing whether cotton yarn should rise or fall.
Discussed a few minutes, stock market opened.
“Opening, opening!”
Upstairs major investor box, Fu Xiao’an’s traders, since attacking today, must establish recognition first thing.
As soon as the stock market opened, cotton yarn futures price high open high go, charging upward.
“Rallied, rallied! Cotton yarn futures really rallied! I just told you it would rally!”
“Rallied a little, I don’t believe it can keep rallying up!”
“Who cares if you believe, rally rally rally!”
“Don’t shout, plummet plummet.”
“Rally rally rally.”
“Plummet plummet!”
“Trouble you stand aside, don’t howl next to me.”
“None of your business, I love standing here.”
“Scoundrel, you damn, got guts bet? No guts then get lost.”
“Bet what?”
“100 silver dollars.”
“Pfft, 100 silver dollars, you have the face to say it. 500 silver dollars, dare?”
“1000 silver dollars, can you take it out? Said 100 ’cause afraid you’re so poor you can only pawn pants! Scoundrel.”
“Acting big with 1000 silver dollars? Yo, from your tone I thought ten thousand. All talk no action, show the cash, no credit!”
“Cash it is, watch.” Slap, a stack of banknotes from the briefcase, slapped on the table, “5000 legal tender, exchange for 1000 silver dollars plenty.”
“Pulling out this little hurts, huh.” Slap, same stack out, “Look clear, US dollars!”
“Rally!”
“Plummet!”
“Rally rally rally!”
“Plummet plummet!”
“You two didn’t say when to settle?”
People around already attracted by their commotion. Watching excitement is everyone’s hobby, especially with big bets, can’t not watch.
“Bet 20 minutes, see if price above 130 silver dollars or below.”
Yo, this said stimulating, 20 minutes see result, can’t not pay attention.
“Rally rally rally!”
“Plummet plummet!”
The two shouting like fighting bulls, two big stacks of money on table instantly attracted more notice. Even those not watching cotton yarn couldn’t help glancing at the cotton yarn futures price board.
“Whoa! 130!”
“Hmph, this money you probably can’t take back.”
“Still early, who will be the victor uncertain.”
“135!”
“Price rallying so fast!”
“Plummeted, 132, major investors selling.”
“130. 128, 125!”
“128, rallied rallied! Rallied again!”
What stock trading fears most? No fluctuation, half-dead stock price won’t move.
But now, even blind know two forces fighting inside, price quick up quick down. Buy a few contracts in, one minute 100 silver dollars amplitude.
That’s silver dollars, 100 silver dollars!
Grab opportunity a few times, that’s a standalone house in Shanghai, 800 silver dollars enough.
“Buy! Try it, today definitely playable, 125 silver dollars, market maker defending, wait 125 buy in, sell high, today definitely profit!”
Some still hesitating, gamblers already in, few contracts in hand, joined rally shouting camp.
And luckily, the gambler sold at 135 silver dollars. In short one hour, really earned 200 silver dollars as he said!
Quarter house, at least bedroom size.
“I said it works, get rich, haha.”
Envy is a disease, join together no more envy.
125 buy rally ok, 135 sell short ok, 10 silver dollars fluctuation, stockholders don’t mind small, run counter more, anyway can earn.
“Rally rally rally.”
“Plummet plummet!”
Rally and plummet not necessarily enemies, everyone can switch roles based on price.
Lively atmosphere heated up, rich make money, poor pool together open contract also make money. Everyone makes money, can’t let market maker alone.
At once 138 silver dollars, absolutely overvalued price, most turned short, market maker easily lifted price to 140.
Stockholders who just laughed happily faces stiffened. This market maker not playing by rules?
“Wait, scaring us, definitely market maker intentional, about to come down, don’t believe wait and see.”
141
142
143
Price firmly, slowly climbing up. Slow, but keeps rallying.
Some couldn’t hold, close contracts now, with earlier profit, at worst break even. Wait longer, maybe big loss.
Some still holding. Retail investors best at playing dead. Though futures not stocks, this price already high, they don’t believe won’t plummet. Close to 150, even at 150 no margin call, no problem.
146
147
148
149
When price stood at 149, downstairs retail investors shouting “rally rally rally” already excited.
When price at 149.8, even louder, “150, 150.”
But 150 never reached. Stock price at 149.8 like huge resistance, oscillating up down few cents, just can’t breakthrough 150.
“Major investors keep selling, run!”
At trading counter, indeed more figures, quickly talking to traders.
Retail investors’ emotions disrupted, concession’s British and American capital won’t be. Price at 150 target, break sky also throw one hand.
British and Americans’ selling pressure intensified. Not even retail investors’ turn to squeeze to counter, futures price straight plummeted in short time. Rose how slow earlier, now falls that fast.
Plunge, 149.8 smashed to 135.
Before shocked retail investors wail.
Slap, price smashed to 125.
Now can wail. But massive buy orders entered, price pulled back to 135.
137, 139, 141, 125, 135, 122, 149
Stockholders completely dumbfounded, this stock price like electrified, jumping up down.
Contract holders initially heart pounding, now reacting almost laughing to death. Now every minute really 100 silver dollars up down.
Such good high sell low buy opportunity, how not cherish?
140 plus, sell!
120 plus, buy!
What’s different now from earlier 125 to 135 range? Just range numbers expanded.
Earn more!
“Buy, give me cotton yarn contracts, I look bullish!”
Excited stockholders waving banknotes buying contracts.
Word of mouth, emotions ignited.
Heated, high-pitched.
Exchange atmosphere completely mobilized.
