Chapter 246 – The Greedy Fu Rongjing
In the evenings, Fu Guangzheng drove Feng Yu to Fu Rongjing’s mansion. It was not a big mansion, and it was only two stories building, about 300 square meters. There’s a small garden, a garage but no swimming pool.
It was about half the size of Song Laosi’s mansion. But in Hong Kong, only billionaires could afford this type of mansion.
Feng Yu bought a bottle of red wine as a gift. This was the customs of Hong Kongers.
When Fu Rongjing knew that Feng Yu wants to sell information to him, he felt that Feng Yu was not that capable. He despised Feng Yu, even more, when he saw Feng Yu’s bottle of red wine. This Feng Yu was just like other Hong Kong businessmen’s second generations.
Without my Fu family, the profits from the humidifiers will drop by at least 50%. Feng Yu dare not to create any trouble with the Fu family!
“Xiao Feng, I heard from Guangzheng that you want to trade in Forex and you have some insider information you want to sell to me.” Fu Rongjing’s tone was very arrogant.
“That’s right, Uncle Jing. This information will let the Fu family earn a lot within two months. The profits will be at least 50%. Two months for a 50% profit, don’t you think this information is worth a lot of money?” Feng Yu confidently said.
Fu Rongjing narrowed his eyes. Two months and the profits can reach 50%? Could it be that Feng Yu had gotten news that some currency will appreciate or depreciate a lot?
“You are talking about Yen rising?” Fu Rongjing felt that the most volatile currency at the moment was Yen. He knew that Yen would carry on rising and this piece of information was not worth anything.
Feng Yu shook his head: “I had told your son about Yen. Although you can get some profits from Yen, the profits will not reach 50%. The currency I am talking about will rise sharply within two months!”
Fu Guangzheng suddenly remembered Feng Yu mentioning that he had transferred a large sum of Rubles to his Hong Kong account. Could this currency be Rubles?
Feng Yu continued: “Rubles. The Rubles will rise! From last year, the Soviet Union had announced that they will switch from fixed exchange rate to a dual exchange rate system. Since then, Rubles had been volatile on the Forex market. Recently, Rubles had even dropped slightly. But I had just returned from the Soviet Union and got information that the Soviet Union government will strengthen Rubles to prevent inflations. Now on the Forex market, the exchange rate of Ruble against USD had fallen to 0.8:1. This was the lowest in two years. The Soviet Government intends to pull the Ruble to last year’s lowest point, 0.6:1. It might even reach 0.5:1. How many profits do you think you can get from this?”
Fu Rongjing smoked his pipe and was deep in thoughts.
He knew that Rubles had depreciated as the Fu family had business in Europe. But now, Feng Yu was saying that the Soviet Government will strengthen the Ruble. With the strength of a country, it shouldn’t be hard for them to pull up the value of Ruble. The government only needs to switch back to fixed exchange rates and the value of Ruble will appreciate.
He suddenly remembered that recently, his eldest brother, Fu Rongqi, kept making trips to Europe. He said that he was there to make some investments. Could it be that he was also investing in Rubles?
His eldest brother liked to trade in Forex and had earned a lot from there. But he seldom brings his brothers along. Fu Rongjing was unhappy with his eldest brother over this. But his eldest brother was the head of the family, and his assets were several times more than the other siblings. He could only get angry but could not do anything.
His eldest brother must have gone to Europe to check on the Ruble market and was preparing to trade in Rubles. This must be it. His eldest brother did not plan to let the rest to join in again!
Humph, I was dad’s favorite son, but you got most of the family’s assets because you were the eldest. If dad had let me inherit most of the assets, the Fu family would have been Hong Kong’s most powerful family!
You, Fu Rongqi, also scolds us and you said that I am not suitable to trade in Forex. This time, I will show you! I will not lose to you when it comes to trading!
“Xiao Feng, our family had already know about this information. You should know that my eldest brother likes to trade in Forex and he has a team of experts that analyze the market. But since you let me know about this information, I should give you something. How about I give you 1 million USD? Consider it as payment for your information.”
Fu Rongjing was laughing in his heart. Feng Yu was still young and inexperienced. Information lost its value once it was revealed.
Fu Guangzheng was shocked, and he looked at his father. When did his father know about Rubles appreciating? Feng Yu had wanted 100 million, and his father only give 1 million USD? The difference was so great. Would Feng Yu even accept it?
“Uncle Jing, rather than 1 million USD, why not sell me all your Aiwa shares? I can pay 5 million USD for your shares.” Feng Yu said what he had in mind.
Fu Guangzheng was thinking, Feng Yu really wanted Aiwa shares. The price he offered was considered very high. But what will father reply him?
Fu Rongjing frowned and said: “Oh, I had given the shares to Guangzheng’s brother. As a father, I cannot ask my son to return me the shares I had given to him. Guangzheng, accompany Feng Yu and bring him around Hong Kong these few days. Feng Yu had taken care of you when you are doing business in China, and you should take care of him now.”
Fu Rongjing was implying that the Fu family was taking care of Feng Yu’s overseas businesses.
Feng Yu was sneering in his heart. I had given you a chance, but you are the one who wanted to forgo this chance. Don’t blame me for tricking you this time!
“Never mind then. Uncle Jing, since the Fu family knew about this information, then I should not receive any payments for it. Eh, I smelled something nice. Is the dinner ready?”
“Hahaha, that’s right. Let’s have dinner first. We will talk later.” Fu Rongjing was pleased with Feng Yu’s attitude.
After dinner, Fu Rongjing asked his driver to send Feng Yu back to his hotel. This time, Fu Guangzheng was not allowed to send Feng Yu back. This Fu Guangzheng does not know how to do business at all. Is friendship more important than business? Once you had earned enough money, all your lost friends will return to your side.
Fu Rongjing entered his study room and called his broker. He asked about the current value of Rubles and also asked if Rubles would appreciate if the Soviet Union decides to strengthen the Rubles.
His broker thought for a while and replied yes. A dead camel will still be bigger than a horse. Even though the Soviet Union’s economy was not doing well, the government was still able to control its currency. Furthermore, the Soviet Union had increased its gold exports. With the rising prices of gold, the Soviet Union should have made a lot of money.
That broker had just said that if the Soviet Union government decides to strengthen Rubles, then Rubles might appreciate. He did not say that Rubles will surely appreciate.
Fu Rongjing was overcome by his greed, and he did not notice the risks involved. He was satisfied with his broker’s answer. What Feng Yu said was true. Rubles will appreciate soon. This time he will place a big bet. He will use all his liquid funds and leverage to invest in Rubles. He wants big profits!
This Chinaman Feng Yu, don’t even know about leverage. 50% profits? I will get at least 500% profits!
Translator’s notes: I am not sure if I got the right translation for the leverage part. The author uses 期货杠杆, which literally translate to Futures leverage using google translate. Pardon me if I get this wrong.