Chapter 252 – Fu Rongjing broke down
The Shanghai Stock exchange was set up earlier than Feng Yu’s previous life. Feng Yu was prepared and even though the international markets were not doing well at the moment, but China’s market was not linked to the global market. There were also no foreigners that bought Chinese stocks. It was this generation of investors that let the top leaders made the decision to set up the stock exchange.
Feng Yu felt that he was the most significant player in China now. There should be no one who owns more shares than him now.
After the news of the Shanghai Stock Exchange was announced, all the stock prices increase rapidly. The newspaper, TV programs also reported on the first batch of companies that will be listed on the exchange.
Without surprises, all those shortlisted companies were listed.
China’s stock market will go through a period of rapid growth from now until the end of the year. The growth will slow down early next year when some investor sold off their shares to get their profits. The stock prices will even drop slightly.
Feng Yu also decided to sell off some of those shares which he was not familiar with later this year. He wants to use the funds from the sales of these shares to buy more shares next March when the market will experience a slight drop.
In contrast to Feng Yu’s happiness, Hong Kong’s Fu Rongjing was gloomy.
He had invested a considerable amount in Rubles. It was all his available funds, and he thought that he would earn a lot in these two months. But the value of Rubles fell drastically instead.
At first, the Ruble had risen slightly but soon fell. Fu Rongjing thought that it was normal fluctuations. He believed that the Soviet Union would increase the value of Rubles.
The Soviet Union was a powerful nation, and there should be no problems if they wanted to increase the value of Ruble.
However, the Ruble did not increase but fell instead. This week, the Rubles fell much faster. If this trend carries on, Fu Rongjing’s futures contract would be closed out before Friday!
Fu Rongjing does not understand why this was happening.
Fu Rongjing was good at retail sales, and he was sensitive to the market changes. The Fu family’s distribution channels were so diverse was because of his suggestions. But when it comes to financial market, he was not good at all. He had no choice but to send Fu Guangzheng to ask his eldest brother, Fu Rongqi. When will Ruble recover?
But the answer Fu Guanzheng got shocked Fu Rongjing.
It was impossible for Rubles to recover. There was nothing the Soviet Union could do. The Soviet Union does not have enough funds to pull up the Rubles because there was a civil war going on and the Soviet Union was at the risk of disintegrating!
What? Fu Rongjing could not believe what he heard. Why would the Soviet Union disintegrate?
Even if the countries had differences, they could declare independence. The Soviet Union should not disintegrate. It can be like those Commonwealth countries, where they maintain a good relationship.
Fu Rongjing starts to send his men to gather news about the Soviet Union. He does not believe what Fu Rongqi and felt that he was lying!
Fu Rongjing slumped on his chair when he got the information from his men.
There were at least 4 countries that announced they will be leaving the Soviet Union and he was unaware of this news!
Lithuania was the first to announce, followed by Latvia and Moldova. But the Soviet Union Government does not approve. What Fu Rongjing can’t accept the most was Russia announcing they will be leaving the Soviet Union. That was the home of the Soviet Union, and it was the most powerful country in the Soviet Union.
If Russia also leaves the Soviet Union, then the Soviet Union will be gone!
The Soviet Union was almost collapsed and how could it pull up the value of Rubles?
Why? Why did it turn out this way?
The thing that made Fu Rongjing broke down was all these happened before Feng Yu went to Hong Kong and he did not even know about it! If he had known about this information, he would never believe Feng Yu and bet all his assets on Rubles!
It’s over. Everything was gone! That 400 million HKD were all gone.
The Rubles continued to depreciate, and now it had reached 1.1 Rubles: 1 USD. His futures contract was forced to close out as he did not have the funds to top up!
Fu Rongjing could sell off his fixed assets to raise funds to top up his futures contract, but he did not do so. He knew that no matter what he does, Rubles will continue to depreciate and all the money he put in will be gone too!
On the day when Fu Rongjing’s 400 million HKD was lost, he called Fu Guangzheng home for a scolding and even slapped him.
It was then, Fu Guangzheng found out how much was lost. He did not know that his father had invested 400 million HKD and his father’s total assets were only about 1 billion HKD. His father had given him some money for investments on a few occasions last year and this year.
To be fair to his elder son, Fu Rongjing also gave his elder son some of his assets.
Having lost this 400 million HKD, Fu Rongjing only had about 300 million HKD worth of assets now, and it was mainly company shares and fixed assets. His bank account only had a few hundred thousand HKD left. It was not even enough for his company’s cashflows!
“Dad, why did you invest all your money? I had asked you to discuss with the eldest uncle, but you refuse, and now you are blaming me?” Fu Guangzheng felt wronged. He had nothing to do with this loss. He was not the one who asked his father to invest in Forex futures.
“If it wasn’t for you bring that brat here, will I be tricked by him? 400 million. That is 400 million HKD!” Fu Rongjing’s voice was shaking.
“Guangzheng, how much money do you have now? Give it to me, if not father’s company will have cashflow issues next money.” Fu Guangzheng’s elder brother, Fu Guanghui said.
“I had just invested in China’s new factory and do not have any spare cash. Even if I sell off my shares in China, I can only raise about 10 million.”
“I have 20 million. But it is not enough. We need at least 100 million for father’s company to run smoothly.”
“Should we borrow from eldest uncle?” Fu Guangzheng asked.
Fu Rongjing looked down and kept quiet. Borrow money from Fu Rongqi? Fu Rongqi would ask him where did his money go to and he has to tell him that he lost all his money in Forex?
Fu Rongqi had told him that he was not suitable to trade in the financial market, but Fu Rongjing does not listen. Now he would be asking for it if he asked Fu Rongqi for a loan. His other brothers will also laugh at him.
“No. Use the company as collateral and borrow from the bank!” Fu Rongjing said.
“Dad, we should borrow from Eldest uncle instead from the bank. Furthermore, if our partners know that we owe the bank such a large sum, they would not continue their cooperation with us.” Fu Guanghui tried to persuade his father.
“If you want to go to your eldest uncle, go yourself. I will not ask him for help!!” Fu Rongjing stomped into his room after saying this.
Fu Guanghui pulled Fu Guangzheng aside and asked him how did Feng Yu trick their father? What actually happened?
Fu Guangzheng explained the whole situation and Fu Guanghui frowned. This seems to be a setup for their father. He also asked about Feng Yu relationship with Fu Guangzheng. They were partners and had been working well all along. Why would Feng Yu set up a trap for their father?
Fu Guanghui found out that it was because Fu Rongjing had acquired Aiwa shares which Feng Yu wanted. He shook his head. It was his father who did Feng Yu wrong in the first place, but it was also not right for Feng Yu to trick his father.
Hong Kong’s Fu family is not that easy to be bullied!