Chapter 951 – Fa and Profits
Feng Yu answered his phone after a few rings. “Hello, George.”
“Feng, I think we need to talk.”
“I think so too. Where should we start?” Feng Yu replied with a grin on his face.
“Feng, are you all the ones who had been stabilizing Korean Won recently? The Korean Governnt’s strategies are also taught by you all, right?”
Initially, South Korea’s practice is to flag out any trades of more than 1000 lots. But Feng Yu and his allies suggested to them to watch out for any transactions of more than 100 lots, and to state the na of the person who transacted!
Although this will increase the workload of the governnt workers, they can easily find out about the latest move by Soros and can adjust their strategies according to his actions. Also, Soros will be exposed, and everyone knows he is dumping Korean Won in large volus.
Also, the Korean Governnt had adjusted back the interest rates and restricted short-term borrowings. This is one of their most effective asures against Soros.
“How can it be ? I also don’t know who suggested those asures to the Korean Governnt.” Feng Yu will never admit, and Soros does not have anything to prove he is the one.
Soros was stunned. He did not expect Feng Yu to deny. You think you don’t admit you are the one, I will believe you? Other than you all, who else can co up with these asures?
“Fine. Feng, I will not ask you about these. I only want to know if you are interested in cooperating again?” Soros believes Feng Yu has no reason to continue fighting against him if Feng Yu will get high returns.
When Soros made this call, he is already losing, and the reason he is lowering his head in front of Feng Yu is because of money. Of course, if he makes enough profits, he will think of ways to attack Feng Yu again.
“Cooperate again? How?” Soros had called to ask for a truce.
“We will suppress Korean Won together. The strategies used by the South Korean Governnt is effective, but there is a deadly loophole. They need high foreign reserves to support their strategies, and their foreign reserves are running low. Although they had raised a sum of money, it is less than 1 billion USD. If we work together, we can crush Korean Won easily, and they can only switch to floating rates to save themselves. If not, it will cause severe inflation in their country!”
The damage caused by hyperinflation to an economy is more severe than a financial crisis, and it’s extrely difficult for a country to recover from it.
Once Korean Won depreciated to a certain extent, the South Korean Governnt will be left with only one choice, which is the lesser of two evils. Soros had already predicted the choice they will make.
If that happens, no one can stop Soros from making profits from them.
Of course, the earlier this happens, the more returns Soros will get. After all, he is suffering losses every day.
Now, Feng Yu has a large amount of Korean Won in his hands, and if Feng Yu agrees to dump Korean Won, it will catch the Korean Governnt off guard.
“But they still have around 1 billion USD now. Why don’t you make them use up their USD first?” Feng Yu suggested with a laugh.
Soros kept quiet. He knew Feng Yu is going to make this request.
That ans Soros must dump an extra 1 billion USD worth of Won to make the South Korean Governnt spend their remaining funds.
This will also an that Soros will have to suffer more losses and has lesser funds at his disposal.
Soros’s risk will increase by a lot and must hedge against Korean Won rising, to prevent forced cancellation of his short position contracts.
This will further decrease the Soros’s profits.
Who will be willing to put in so much effort and see others getting more profits than him?
Feng Yu did not say anything and was waiting for Soros to consider his proposal. Since Soros is the one calling, that ans his funds are running low.
“Feng, we are all in this together and should be on equal footing.”
“George, don’t you want your Quantum Fund to be famous? The reputation of those Hong Kong tycoons will be affected if I ask them to back off. To many people, you will be the victor! You had gotten your revenge!”
Soros’s defeat in Hong Kong had affected his reputation, and lesser speculators are following behind him.
This ti, Feng Yu had let the Fu Family’s private equity company take the lead. This Hong Kong private equity company is the one that won against Soros. If they retreat from the South Korea market, Soros will recover his fa, and this is an important factor for an investnt fund.
Feng Yu is telling Soros that he will not get both fa and profits.
You can get both, but if you choose fa, naturally your profits will be lower. If you want higher profits, you must admit defeat.
Soros will never admit defeat as it will have a severe impact on his Quantum Fund. Many investors will withdraw their investnts, and it will affect their profits and prospect.
Soros is hesitating. He must maintain the Quantum Fund’s reputation and his title of being the world’s no. 1 hedge fund manager. With just his reputation, he can get higher returns in the future.
But like what Feng Yu said. Soros must continue to invest money, and Feng Yu and his allies will get higher profits from the South Korean market. It will be harder for him to attack Hong Kong in the future!
Is Soros going to suffer another defeat and has no chance to take his revenge? Or is he win in front of everyone, but suffered a lost quietly?
Fa and profits. Which is more important?
After a long pause, Soros said. “Feng, I will do as you said. I will continue to dump 1 billion USD worth of Won, and then we will move in together. This ti, it is the Quantum Fund winning this battle, right?”
“That’s right. The Quantum Fund had won against the Hong Kong tycoons this ti.” Feng Yu laughed.
I will let you win on the surface, since most of the profits will be going into our pockets. Soros is after fa, and Feng Yu and the Hong Kong tycoons are after profits.
Feng Yu believe that after this, Soros will not continue to attack Hong Kong, unless he can raise more funds. But that is quite impossible.
“Alright. Wait for my call.”
“Wait a minute. I noticed there are still so future contracts in Hong Kong. Can you ask them to cancel it?”
Soros did not expect Feng Yu to discover his hidden cards.
“Sure. I will speak to them.”
After hanging up, Feng Yu had a victorious smile on his face. Although he did not manage to make Soros suffer massive losses this ti, Soros will not get high returns from South Korea. After all, Soros had invested a lot of his funds.
On the other hand, Feng Yu still has his hidden stash and will be using it to short Korean Won. Most of the profits from the Korean market will be taken by Feng Yu and his allies!
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