Chapter 645 It’s Not Their Money, What Are They Afraid Of?

In fact, last year, due to illegal operations in the London Metal Exchange futures market, my country's state-owned enterprises and capital were targeted and forced to close by 15 foreign capitals such as Glencore, Goldman Sachs, and JPMorgan Chase, pushing the copper futures price to a historical high of $4,200.

Although my country's short side sold a lot of copper spot, it still could not suppress the soaring copper price. Finally, at the end of last year, it suffered a huge loss of hundreds of millions, and the last 150,000 positions were transferred to the end of the May 2006 contract.

In fact, Chen Changliu paid attention to it last year, but he knew that his power could not reverse anything, and my country's capital only lost hundreds of millions, which was not outrageous.

Moreover, the flower growers were very busy at that time, and he was too lazy to pay attention to it. Even if he did it, he might not make too much money, because his capital was not enough. Later, he forgot about it, but now he remembered it when he saw the relevant news.

For the capital that has united more than 100 billion, it made hundreds of millions last year. International capital will definitely not give up, so it will continue to take action starting from March 31 this year.

On March 31, international financial institutions began to take action. Their goal was to double the price of the copper futures contract for delivery in May 2006 on the London Metal Exchange before delivery, because my country has a large number of copper futures short orders concentrated on this contract.

The purpose of international capital is to target the tens of thousands of copper futures short orders held by Chinese capital enterprises, and the second hunting operation against Chinese capital has begun again.

At this time, international financial institutions continued to raise the copper price, and the price increase accelerated, with no signs of falling. As the Financial Times published an article titled "my country will face a copper shortage", the bulls also sounded the final charge.

On that day, the copper price rose by 3% in large volume. As international financial institutions took turns to go long, the copper price continued to soar.

In the next month or so, the copper price rose from US$4,800 to a record US$8,780, a sharp increase of 82%, setting a historical record for copper prices.

As copper prices have been rising, my country's capital has added a large amount of margin and is facing a situation of liquidation. Faced with the shameless pressure and precise manipulation of international financial institutions, they now realize that if they do not stop losses, copper prices may continue to soar.

The consequences will be unbearable. After weighing the pros and cons, my country's capital chose to gradually cut positions. In the process of cutting positions, shorts need to buy copper futures in the market to close their positions.

This has further promoted the rise in copper prices. The mutual trampling of shorts also shows that shorts in the market have basically given up resistance.

After closing the last position, the short loss is conservatively estimated to be more than 5 billion. The huge loss of shorts also represents the complete victory of longs.

Just after my country's capital cut positions and admitted defeat, on May 18, 2006, international financial institutions saw that their goals had been achieved. Foreign financial institutions and funds led by Gaosheng and Glencore then shorted in the London copper futures market. International copper futures responded to the alarm on the same day, and then went out of a wave of decline, plummeting 30% in one month.

The previous high point of copper prices also became the highest price in history, and it has not been exceeded to this day.

Subsequently, foreign capital registered copper futures delivery orders in batches at the London Metal Exchange and sold a large number of copper spot in the spot market. The copper market, which was in short supply two months ago, immediately became oversupplied.

This harvesting method through mechanical linkage operation made domestic capital unable to resist it at all.

In the following two years, the copper price plummeted by 70%, far lower than the price at which my country's capital was shorting at that time. In this round, the copper was still the same copper, but our money was gone.

The losses caused by my country's capital copper futures incident this time were far more than the superficial monetary losses. The rise in copper futures drove the spot price of copper to rise all the way.

As the country with the largest copper consumption and import volume in the world, the high copper price in the past two years caused many domestic companies to stop production and suffered terribly.

While losing money, the progress of economic development was also perfectly slowed down. The losses suffered were obviously unbearable for my country at that time.

At that time, a domestic group violated the regulations and oversold zinc futures at the London Metal Exchange, and was sniped by Glencore, resulting in huge losses. It seems that so much tuition was paid in vain.

Chen Changliu is not thinking of being a savior, and then becoming a hero at a critical moment to help my country's capital fight back against international capital.

He does not have this ability. In front of these billions or tens of billions of capital, he is just a small Karami. Even if he has a certain amount of capital, but there is no time to lay out, how can he turn the situation around?

It is not so easy to be a hero.

You should know that there are many cases of my country's capital being hunted by foreign capital in the international financial market. There are obvious illegal operations behind the Chinese capital enterprises that have been sniped by foreign capital.

The most critical reason why the Chinese capital enterprises that have been sniped dare to break through domestic laws is to seek personal gain.

The accounts of many companies doing financial transactions abroad are often not divided into public and private. In other words, the money earned is their own, and the money lost is the company's. Otherwise, why would they take such a big risk to operate illegally?

This is also the reason why Chinese companies are so ruthless in the international financial market. Anyway, if they lose money, someone will cover it. It's not their money, so what are they afraid of?

Therefore, Chen Changliu was thinking about whether he could take a few bites out of the billions of capital that was harvested in our country. After all, it would be better to give it to himself than to foreign capital. This way, he would have more money for development.

There is still a month left, so there is still time to arrange.

Thinking of this, Chen Changliu said to Chen Changliu:

"Honey, call my uncle and ask him to come to Yangcheng. Then we'll invite mom to have a meal together. I have something important to tell them."

Hearing Chen Changliu say something about calling Ning Qiang and Ning Mei, Du Zhiqiu thought he was talking about the two of them, and said a little coyly:

"What's the matter? Our two universities haven't graduated yet. We can..."

Seeing Du Zhiqiu's expression and her words, Chen Changliu immediately understood what she meant and broke out in a cold sweat. If Du Zhiqiu asked, how should he answer?

Thinking of this, Chen Changliu immediately interrupted Du Zhiqiu and said:

"Honey, I have a big business to do with my uncle. By the way, let your mother serve as a reference. If you do it well this time, you can earn hundreds of millions in a month or two, and earn 1 billion or 800 million in a year. It's possible."

Chen Changliu's words immediately aroused Du Zhiqiu's interest. He had no doubts about Chen Changliu's words. He said curiously while holding his mobile phone:

"Okay, I'll call them both right away, but you must talk to me carefully later."

PS: Correct typos first and then correct them.