The international crude oil futures price was only at $58.62 a barrel, and no one had yet realized Iran's tough stance on developing nuclear weapons.
When Ding Jing learned that Yi Anguo was going to make another move on the international crude oil futures market, she immediately had a feeling. This time, they could probably make tens of millions, or even over a hundred million US dollars.
At that moment, Yi Anguo still had 50 million US dollars accessible in his Harbor Island bank account, and he had been worrying about not having a good opportunity to use it. The original plan had been to wait until the second half of next year to make a big move on the market. However, having discovered this rare opportunity, there was certainly no reason to pass it up.
Yi Anguo was still taking a cautious approach, buying 10,000 long contracts. Although he felt that even 20,000 wouldn't pose a problem, he preferred not to take too big a risk. Buying 10,000 contracts with a margin of 50 million US dollars was enough to keep his position secure and not so easily liquidated. Buying 20,000 contracts would be risky. If the price suddenly dropped by $2.50 a barrel, his position would be liquidated without a chance for recovery.
Such a scenario wasn't impossible; intraday fluctuations of $2.50 a barrel were common when market volatility was high. An intraday move of five dollars, while not unheard of, was quite rare.
"What's the target this time?" asked Ding Jing.
"Short-term? Let's aim for 70," Yi Anguo exhaled as he spoke.
"Short-term! How soon is short-term?" Ding Jing pressed.
"I don't know. Maybe half a month, maybe two months. Even one month is possible," Yi Anguo said, shaking his head.
"That uncertain? Then what are you basing this prediction on? The price of international crude oil futures has been falling recently, from $66 a barrel at the beginning of the year down to less than $69 now," Ding Jing couldn't help but ask.
"The United States, in the name of the United Nations, has issued a ban on Iran's uranium enrichment activities. Do you think Iran will simply comply with this so-called UN resolution?" Yi Anguo asked in return.
"Can Iran afford not to listen? This is the result of a United Nations General Assembly vote. And with Iran's strength, can they really defy America's wrath? Angering the US means they could actually take action, not just make threats. If Iran acts stubbornly, they risk becoming the next Iraq," Ding Jing reasoned. She then mused to herself, I guess in the end, Iran will have no choice but to bow to US hegemony. It might be humiliating, but it's still better than the destruction of their nation. That's probably the tragedy of a weak country. Didn't we also once endure humiliation to get to where we are?
"You're wrong about that," Yi Anguo said with a shake of his head and a small smile. "Besides, Iran is not Iraq. The US is already mired in the quagmire of Iraq. Do they really have the courage to take on Iran in the same way? Iran's power is much greater than Iraq's. Dealing with Iran won't be as easy for the US as dealing with Iraq was."
"You have a point, but the US will definitely take action against Iran. However, they would only dare to launch some airstrikes; they won't launch a full-scale war or send ground troops to invade Iran, at least not unless it becomes absolutely necessary," he explained. "But regardless of the final outcome, a conflict is unavoidable. In the end, it will lead to tight oil supplies, which means international crude oil futures prices will surely soar."
"And how could those international hedge funds in the US pass up such a golden opportunity? They'll certainly enter the market to drive up the prices. Once that happens, the price of international crude oil futures will definitely inflate into a bubble. When that bubble bursts, prices will fall again, and those hedge funds will have made a killing."
"Compared to these hedge funds, which easily make billions, even tens of billions of US dollars, we're just skimming a little off the top, making tens of millions, or a few hundred million at most. If we make too much, those international hedge funds probably won't be too happy about it."
Watching Yi Anguo speak so eloquently, Ding Jing found it hard to believe that he was just a country man with only a junior high school education. From a single UN resolution against Iran, he had connected all these dots. If everything he predicted comes true, it would be nothing short of incredible.
After some thought, Yi Anguo decided to instruct Chen's company to follow suit anyway. After all, it wasn't his money, and harvesting US dollars from abroad was always a good thing. But he only provided a general outline of the trend, leaving risk management up to them. He was determined not to spoon-feed them the details like last time. Showing off too much brings no benefits; keeping a low profile is the better play.
Chen Ting called Yi Anguo. "I'm getting ready to have the baby, so I'm planning to have you take over as the company's vice president."
"Miss, please spare me! I don't have the time! Besides, I don't have the ability to manage all that," Yi Anguo pleaded anxiously.
"Don't give me that. You don't have to come to the office every day. Just pop in when you have time to manage things and give some guidance. Or do you have the heart to make me manage the company's massive affairs while I have a big belly?" Chen Ting said, dissatisfied.
"Um, how old is your dad this year? He's far from retirement age," Yi Anguo said helplessly.
"My dad says he doesn't want to deal with the company anymore. He wants to take my mom on a world tour. This company will be your son's sooner or later, so if you don't help manage it now, who will?" Chen Ting retorted righteously.
"It's not that I don't want to help, but I genuinely don't have the time or the energy!" Yi Anguo said in resignation. "And I really don't understand any of it. I can't manage it!"
"What do you mean you can't manage it? It's easy! The professionals below handle all the details. You just have to sign some papers. It's very easy," Chen Ting said with a mischievous smile. "So, it's settled! I'll have someone get in touch with you. From now on, you call all the shots at Chen Corporation. When our son grows up, you can hand the company over to him. It'll only be a bit of hard work for twenty-something years, tops."
Before Yi Anguo could refuse, Chen Ting hung up the phone.
Not long after, the assistant who originally served Vice President Chen Ting called Yi Anguo. There were important company documents that needed his signature.
Having been strong-armed into the position by Chen Ting, Yi Anguo felt thoroughly exasperated. He could barely handle the Financial Investment Department of Chen's company, and now this was even more ludicrous—the entire corporation was being handed over to him. Would he ever have a moment's peace again? He didn't even have time to manage his own online supermarket.
However, since Chen Ting had already saddled him with the responsibility, Yi Anguo couldn't bring himself to be ruthless enough to abandon it completely. He had no choice but to go to the vice president's office at Chen Corporation.
"Mr. Yi! This is an application from Lingyun Electronics Factory, a subsidiary of Chen Enterprises. They're requesting fifty million yuan to purchase land for a new factory expansion. It needs your signature for approval," said Tao Yan, the vice president's assistant, to Yi Anguo, who had just sat down in the VP chair.
"Gather the files on all factories, companies, and other enterprises under Chen Enterprises and bring them to me. I will decide whether to sign this document after I understand the situation," Yi Anguo told Tao Yan directly.
"Okay, but this document is quite urgent," Tao Yan agreed, but still felt the need to remind him.
"If it's really that urgent, then take it to Vice President Chen for her signature," Yi Anguo said, looking at her. "I don't know anything about this electronics factory. How can you expect me to sign this?"
"I'm sorry, Mr. Yi! I was wrong," Tao Yan said, quickly admitting her mistake, realizing she might have offended her new boss.
"Go on. I want detailed information on all subsidiary factories, enterprises, and departments of the company. I especially want the files on the executives—their work history, compensation, and what contributions they've made to the company," Yi Anguo said with a calm nod.
After receiving the documents compiled by Tao Yan, Yi Anguo first looked at the file for Lingyun Electronics Factory.
Lingyun Electronics Factory had been founded ten years ago and specialized in producing LCD screens. Its products were widely used in game consoles, pagers, electronic watches, and mobile phones. At its peak, the factory employed 3,000 people, but that number had dwindled to 800, leaving many factory buildings and dormitories idle.
And yet, an electronics factory like this was applying for fifty million yuan to buy land and expand its facilities. This was something Yi Anguo couldn't quite understand.
When in doubt, ask. Yi Anguo called Tao Yan over. "Lingyun Electronics Factory's business should be on the decline, shouldn't it? What do they plan to do with an expanded factory?"
"Lingyun Electronics Factory is planning to partner with a German company to produce a more advanced type of LCD screen. These screens are mainly for laptops, flat-screen TVs, and tablets. The technology is more advanced, it's a future trend, and the market potential is huge," Tao Yan explained, clearly knowledgeable on the subject.
"If they're introducing new product technology, they'll certainly need to expand production capacity, so increasing investment is acceptable. However, they could easily use their current factory and production lines for a trial run first. After all, time waits for no one," Yi Anguo remarked. "Has Lingyun Electronics Factory already imported the technology and equipment? Have they started producing these new LCD screens?"
Tao Yan shook her head. "Not yet. The German investor's condition is the establishment of a new joint venture company to produce the screens with the new technology. That means buying new land, building a new factory, and bringing in advanced production lines."
"Have the two parties formally signed a contract to establish the joint venture? And the funds from the German side? Have they been transferred?" Yi Anguo asked again.
"The German company is contributing technology as their investment. We're the ones providing the capital," Tao Yan clarified.
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