Chapter 116 Goldman Sachs

Chapter 116 Goldman Sachs
Anyway, with real estate developers hoarding properties and being reluctant to sell, scalpers speculating on properties, and the Hong Kong government's promotion, Hong Kong's housing prices will remain crazy for a few more years.

Scalpers also profit from this, real estate companies can make more money, the Hong Kong government can sell land at a higher price, and banks can lend more funds.

After one cycle, almost everyone makes money. Even the citizens who buy houses will see their net worth increase significantly as housing prices rise.

This is simply a perfect chain of interests, and the so-called real estate bubble was formed under such circumstances.

August was a turning point for the real estate companies under Liu Zhicheng. Daya Real Estate’s properties at Central and Admiralty subway stations were pre-sold on the 8th, and 17% were sold within a week, with a total amount of HK$9 billion.

According to the original agreement with MTR Corporation, Daya Real Estate made a net profit of HK$1.9 million after deducting construction costs, bank interest, etc.

After finishing his work, he flew to the United States to start another investment journey in order to enjoy the upcoming feast of the financial market.

Time soon came to September. Liu Zhicheng chartered a Boeing 9 of Cathay Pacific Airways and headed to the beautiful country of New York with several of his subordinates who were proficient in international finance and legal affairs.

Lyon came to the airport to pick him up in person. After seeing Liu Zhicheng, he said with a smile: "Mr. Liu, welcome to New York again. I have prepared a grand party for you."

"Thank you." Liu Zhicheng replied with a smile.

Liu Zhicheng and his group boarded the convoy prepared by Lyon and arrived at the Twin Towers, one of the tallest buildings in New York City.

"Do you work here?" Liu Zhicheng asked with some horror as he looked at the towering twin towers in front of him.

“Yes, in order to demonstrate the company’s strength, we rented an office here.” Lyon said with a smile.

"Okay, let's go in." Liu Zhicheng nodded. It seemed that Lyon had made a lot of money in the past two years.

Lyon's office is located in a corner on the 60th floor of the South Tower of the Twin Towers. This is the office that Lyon rents.

Although it is just a corner, the annual rent is as high as one million US dollars, which is not affordable for ordinary people.

Standing in the office, you can see the Statue of Liberty and the sea off New York. The scenery is quite nice.

Lyon said with a smile: "I have sent the sample arcade machines of Space Invaders to some bars in New York for testing. The results are very good, and the sales should exceed all previous games.

"This is normal. This is our latest masterpiece." Liu Zhicheng said proudly.

In recent years, Orange Technology has also launched games created by its engineers themselves, but the sales have not been very good. The main force of arcade sales still depends on Liu Zhicheng's guidance.

Currently, the R&D team of Orange Technology is working hard to develop the first generation of Orange home game consoles.

This game console is developed and optimized only for several old games of Orange Technology to ensure the smoothest fluency and lowest cost.

Of course, there will also be a game called "Super Mario" released at the same time.

Wang Xingfa's plan is to wait for Liu Zhicheng to return from America and then start selling the product. Once the home game console is on the market, Juzi Technology will enter a new stage.

"Okay, I will order 50,000 arcade games this time." Lyon nodded.

"Okay, actually I didn't come to New York this time to discuss arcade sales with you." Liu Zhicheng paused and said, "I want to make a financial investment."

"Financial investment?" Leon asked in surprise.

"Yes, I want to invest in gold." Liu Zhicheng nodded.

At this time, Liu Zhicheng also revealed his intention. He wanted to invest in spot gold, not the most powerful oil that was about to arrive.

Liu Zhicheng wanted to invest in spot gold, so why did he travel all the way to New York? Why didn't he choose Hong Kong and London, which are also gold markets?

The main reason is money. Liu Zhicheng wants to activate super investment leverage. Currently, New York is the most developed financial market in the world.

黄金会在今年的244美刀每盎司,到1980年1月份涨至850美刀每盎司,涨幅达到3.4倍。

If you invest 15 million US dollars and spend about 2 months, even if you don't make the last penny, you will still make a profit of million US dollars.

Liu Zhicheng plans to use 5 times leverage investment, and will get a profit of 10 billion US dollars at maturity. Some people may ask why he didn't use a higher leverage when he knew that gold would explode?

Because for some things, we only know the results but not the process. If we are not careful, we may fall through the market. Once we fall through the market, we will lose everything.

"Okay, I get it. There are many professional institutions in New York. I'll find one for you tomorrow." Liu Zhicheng didn't care at all and agreed.

Three days later, Lyon brought Liu Zhicheng to a building in the middle behind Wall Street.

"Mr. Liu, this is where Goldman Sachs entertains VIP clients. You can come here because of my guarantee," Leon explained.

Goldman Sachs' main business is investment, which is different from Citigroup and JPMorgan Chase. The investment goals of many of Goldman Sachs' clients will have a huge impact on the market.

Because of the clients’ identities, most of them have confidentiality requirements. If the clients’ identities are accidentally exposed by the media, it is very likely to cause fluctuations in the stock market, so negotiations will be arranged in a more secret place.

"I understand. It's for confidentiality reasons." Liu Zhicheng nodded. This is just like when he was in Hong Kong. If he appeared in the same place frequently, it might cause some speculation in the media.

Confidentiality is even more necessary in the United States because capital is king here, and there are too many interest groups in the United States, so confidentiality is even more necessary to prevent customers from accidentally changing their business.

"Let's go, someone is waiting for us upstairs." Lyon said with a smile.

Several people followed Lyon in. After verifying their identities, only Liu Zhicheng and Han Chunxi were able to follow Lyon up.

The elevator arrived at the 20th floor. As soon as the elevator door opened, a blond man about 40 years old was waiting at the elevator door. When he saw Leon, he smiled and said, “Hi, Leon, hello, Mr. Liu.”

"Mr. Liu, this is Jim, a senior investment manager at Goldman Sachs. He is my good friend and he will be in charge of your investment this time," Leon introduced.

"Hello, Jim." Liu Zhicheng nodded, shook hands and smiled.

Then Jim brought a few people to a reception room, and Jim refused Leon to enter.

Because conversations with clients are top secret and cannot be made known to others without the client's permission.

"Then wait for us for a while, it should be quick." Liu Zhicheng said to Lyon apologetically.

"Mr. Liu, it's okay, you guys take your time to talk. The lower floor is exclusive to VIP members. I'll go and enjoy it, you guys take your time to talk." Leon left with a smile.

"I heard from Leon that Mr. Liu wants to invest. I wonder what he wants to invest in?" Jim asked.

"Gold." Liu Zhicheng said, "I need to go long on gold. My principal is 1 million US dollars. I hope to use this as collateral and Goldman Sachs will provide me with five times leverage."

"5 million US dollars to go long on gold?" Jim became excited when he heard it. This is a big deal. Even for Goldman Sachs, it is a big deal.

Although several of the United States' top investment banks control hundreds of billions of dollars in assets, they make money for their clients through various financial means and then earn a commission from it.

Private high-risk leveraged investment is the favorite model of investment banks. Whether it is long or short, the funds required must pay a large amount of interest and fees.

"Yes, we will officially start entering the market around the end of this month. Is there any problem with Goldman Sachs?"

"Mr. Liu, don't worry. It's only 5 million US dollars. It's nothing for Goldman Sachs." Jim said confidently.

"That's good. I need to get the corresponding contract as soon as possible. After all, it still needs to be reviewed by my legal department. If there is no problem, I hope to sign the contract as soon as possible." Liu Zhicheng nodded and said.

If it is just a small investment of a few million US dollars, it is basically a standard contract with not much room for bargaining.

But if it reaches tens of millions of dollars and can affect the department's annual performance, then the contract will be different, and there will be a certain amount of room for bargaining on interest and handling fees.

Such high-quality customers will definitely be the target of competitors. If such customers are lost, the general investment manager will definitely lose his job.

What's more, Liu Zhicheng is now a billion-dollar client, so Jim will definitely pay great attention to him and give him SSS-level treatment.

"Okay, Mr. Liu, don't worry, I will report this matter today. If I have any news, I will inform you as soon as possible." Jim said.

"Here is my contact information." Liu Zhicheng handed over his business card. "And I will be in the United States during this period, you can also contact Mr. Lyon."

"Thank you Mr. Liu for choosing Goldman Sachs. It is my honor to serve you wholeheartedly." Jim said with a smile after taking the business card.

Liu Zhicheng originally wanted to find more investment banks to cooperate with, but considering his own safety, he only chose Citibank and Goldman Sachs.

After all, it is not so easy to make money in the United States because of the existence of the "Iai" that is difficult to guard against.

In 1978, a revolution overthrew the Pahlavi dynasty in Iran, causing severe social and economic turmoil.

Moreover, from the end of 1978 to the beginning of March 1979, Iran would stop exporting oil for 3 days, causing a daily shortage of 60 million barrels of oil in the oil market, accounting for about one-tenth of the world's total consumption.

This led to oil price volatility and supply tightness, and oil prices began to soar in 1979, soaring from US$13 per barrel to US$1980 in April 39.5.

Now that the interests of the main onshore oil-producing areas have been basically divided, it is very difficult to get involved. But Liu Zhicheng knows that offshore oil fields will become a golden business this year.

Therefore, during the time Liu Zhicheng stayed in the United States, he planned to join forces with Lyon to establish an oil and gas exploration company.

"Mr. Lyon, I intend to set up an oil and gas exploration company and would like to invite you to become a partner." Liu Zhicheng said slowly.

"Oil and gas exploration? Do you think there is great potential in the energy market?" Lyon asked in surprise.

"Yes, I think energy prices will skyrocket in the future," said Liu Zhicheng.

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