Chapter 910
: Making a whopping $30 billion – this money is so easy to earn!
Mexico City, early morning of July 7.
Just as dawn was breaking, a gray van quietly pulled up in front of a 711-Eleven convenience store on Reform Avenue.
Seven or eight young men jumped off the vehicle, carrying iron bars and stones.
"This is it! The shop run by that Asian guy!"
At the command of the bald young man in the lead, stones rained down on the glass display window.
A loud cracking sound shattered the morning silence, followed by the sound of shelves collapsing, goods scattering all over the floor, and the excited shouts of the young people.
"Get out of Mexico!"
"Robber! Thief!"
You are not welcome here!
In just a few minutes, this convenience store, which had been open for three years, was turned into a complete mess.
The shop assistants hid in the back warehouse, trembling and afraid to make a sound.
They only dared to call the police after those people left.
But this is only the beginning.
The same scene played out over the next few hours in a dozen blocks of Mexico City, in Guadalajara, in Monterrey, in Puebla…
This has been happening in more than 30 cities across Mexico.
The public was incited.
Ordinary people who read newspapers, listened to the radio, and were inspired by the passionate speeches of politicians vented their dissatisfaction with the government, their anger at the economic difficulties, and their fear of the future on the red and green 711-Eleven signs.
"They make money here, but they stab us in the back!"
"Get them out!"
Smash it! Smash it hard!
By noon, more than two hundred 711-Eleven stores had been affected.
Although no one died, seventeen employees were injured, three of whom were seriously injured and taken to the hospital.
More than fifty other stores were completely destroyed by fire, resulting in heavy losses.
Mexican police were deployed, but they only symbolically dispersed the crowd and arrested a few minor figures.
They turned a blind eye to the real agitators, those who hid in the crowd shouting slogans.
After all, people need an outlet for their frustrations.
And 711 is that exit.
When the news reached Hong Kong, it was evening there, and Lin Haoran was having dinner with Guo Xiaohan at his home.
The phone rang, and he glanced at the caller ID; it was Toshifumi Suzuki's work number.
Without thinking twice, he answered the phone.
"Hey."
"Boss, this is Toshifumi Suzuki." A hurried voice came from the other end of the phone, with a heavy Japanese accent.
"Mr. Suzuki, what brings you here on the phone? Is there something you need to report?" Lin Haoran asked with a smile.
Toshifumi Suzuki, president of Nanfang Company.
Southern Company is now the parent company of the 711-Eleven and Lawson brands. Through acquisition, Lin Haoran holds 100% of the shares of Southern Company and has become its sole owner.
Toshifumi Suzuki was a professional manager personally appointed by him.
"Boss, are you aware of the situation in Mexico?" Suzuki Toshifumi's voice carried a hint of anxiety. "Our stores have been impacted, and more than two hundred have already been damaged."
Employees injured, shop burned, heavy losses, Mexican government completely unresponsive, police inactive—what should we do?
Lin Haoran remained silent for a moment.
He was actually mentally prepared for this.
So, I wasn't too surprised.
He could hear the panic in Toshifumi Suzuki's voice.
This Japanese manager, though a master of business management, was clearly at a loss in the face of this political storm.
"How much money have you lost so far?" Lin Haoran asked.
"Our branch in Mexico has made preliminary estimates that, so far, the total losses of all 711-Eleven stores in Mexico are approximately $130 million."
In addition, Lawson chain stores suffered losses of around $400,000, with the losses of the two chain brands' self-operated stores accounting for about 30%.
This matter involves you, boss, and I find it difficult to handle, so I'm calling to see if you have any suggestions.
"Mexico is our second largest market in the Americas, with substantial annual revenue, and it's expanding rapidly these days. If this matter isn't handled properly, Southern Company could lose the Mexican market," Toshifumi Suzuki quickly reported.
Upon hearing this, Lin Haoran nodded.
He didn't care about this small loss.
However, things can't continue like this. A cornered dog will jump over the wall. It looks like the Mexican government will have to respond.
He continued, "Mr. Suzuki, where are you now?"
"I'm at headquarters in Tokyo. I just received a report from Mexico and called you immediately."
Lin Haoran nodded.
"Listen carefully, there are a few things I need to do now."
"Please speak."
"First, immediately close all stores in Mexico, regardless of whether they have been affected. All employees must be evacuated to ensure their personal safety."
"clear."
"Second, we will contact our legal team in Mexico to prepare a lawsuit against the Mexican government for its inaction and condoning of violence, and at the same time, we will speak out to the international media to condemn this violence."
"clear."
“Third…” Lin Haoran paused, then continued, “You go to Mexico yourself.”
Suzuki Toshifumi was taken aback.
"I'm going to Mexico?"
"Yes, you are the president of the Southern Company. You should go there personally to handle this matter on behalf of the company. Once you arrive, hold a press conference as soon as possible to express our stance."
"We don't talk politics, we only talk business. We are a legitimate retail company. We operate legally in Mexico, pay taxes, and provide jobs. It's illegal and unacceptable for people to be incited to vandalize our stores," Lin Haoran said.
Suzuki Toshifumi was silent for a moment, then continued, "Boss, what if the Mexican government summons me and asks for your response?"
Lin Haoran naturally understood what Suzuki Toshifumi's reply meant.
He replied with a smile, "I'll fax you some information in a bit. This information is enough to prove that this is a conspiracy by the Quantum Fund. I'll only show it to you when they ask you for it."
Lin Haoran wasn't referring to the recording, but rather the document that Citibank had faxed to him.
That document alone is enough to prove that Soros was behind it all.
As for that recording, Lin Haoran had other plans.
“Yes, boss, I understand.” Suzuki Toshifumi’s voice was more confident now. “I’ll book the tickets right away and fly to Mexico City first thing tomorrow morning.”
"Okay, once you get there, call me anytime if anything happens."
"clear."
After hanging up the phone, Lin Haoran leaned back in his chair, gazing at the night view outside the window.
Guo Xiaohan looked at him, her eyes filled with worry.
"Brother Haoran, what's happening in Mexico..."
"It's nothing." Lin Haoran smiled and reached out to hold her hand. "It's just a little money loss, nothing to worry about. The key thing is that this incident gave me a chance to fight back."
This incident did indeed give him a flash of inspiration, leading him to come up with a plan to retaliate against Soros.
Previously, his idea was to stay in the shadows and let Soros lead the charge. In this way, he could quietly let Su Zhixue close out the $1.5 billion position and make a fortune, while Soros would bear all the infamy.
However, Soros's repeated provocations, and even his incitement of Mexicans to violently attack his businesses, have crossed his bottom line.
More than 200 stores were vandalized, 17 employees were injured, and more than 50 stores were burned. Although the property losses may seem insignificant to him, behind these numbers are real people, employees who trust him and rely on him for their livelihood, and the fruits of Southern Company's years of hard work.
Lin Haoran was never the kind of person who would swallow his anger.
He can endure for the sake of greater interests, strategize in the business world, and remain silent in the war of public opinion while waiting for the right opportunity.
But when his bottom line is crossed, when his employees are injured, when his assets are destroyed, he will no longer remain silent. Soros, if you want to play, then I'll play with you to the very end.
A cold smile appeared on Lin Haoran's lips.
He decided to sabotage the Quantum Fund and let Soros know that he had messed with the wrong person.
Lin Haoran stood up from his dining chair and said to Guo Xiaohan, "I'm going back to my study to take care of some things."
Guo Xiaohan nodded and said gently, "Okay, you can go upstairs first!"
Lin Haoran gently kissed her forehead, then turned and went upstairs.
After closing the study door, Lin Haoran first faxed a document to Suzuki Toshifumi.
After that, he picked up the phone again and called Su Zhixue, who was far away in the United States.
At this moment, the United States, like Mexico, is still in the morning of July 7th.
The phone rang a few times before being answered, and Su Zhixue's calm voice came from the other end.
"Good morning, boss," came Su Zhixue's voice from the other end.
"Hmm, did I disturb you?" Lin Haoran asked with a smile.
"No, I just finished breakfast and was about to read the newspaper before heading to the company in half an hour," Su Zhixue replied.
It's 7:30 AM in the US right now, so there's no need for him to go to the company so early.
"How much did the price of Mexican bond CDS rise by yesterday's closing price?" Lin Haoran asked.
Su Zhixue clearly knew these numbers by heart and answered immediately.
"Boss, at yesterday's closing, the five-year Mexican government bond CDS had risen to 980 basis points, nearly double that of five days ago. The market generally believes that a Mexican default is highly probable, it's just a matter of time."
In addition, put option prices for European and American bank stocks also surged, with options for banks with the largest exposure to Mexican risk, such as Wells Fargo, Manhattan Bank, Bank of London, and Chemical Bank, rising three to four times in value.
Lin Haoran nodded.
Global Investment Company had already made arrangements in both areas, with positions in Mexican government bond CDS exceeding one billion US dollars and put option positions in European and American bank stocks reaching five hundred million US dollars.
"Given the current situation, how much can we earn if we close our positions now?" Lin Haoran asked.
Su Zhixue had obviously already calculated this, and immediately replied.
"Boss, based on yesterday's closing price, our $1 billion CDS position has a floating profit of over $1.5 billion, and our $500 million put option position has a floating profit of over $1.4 billion. Together, the total floating profit is around $3 billion."
Currently, the peso has depreciated by more than 50% compared to five days ago. Many Mexican local capital entities have taken the opportunity to default on their loans, and the rate of capital outflow is more than ten times higher than last week. Capital confidence in Mexico has essentially collapsed; all that's left is for the Mexican government to announce a default.
Su Zhixue's voice carried a hint of barely suppressed excitement.
“Boss, this is an astronomical figure! If we wait until Mexico officially announces its default, the profits can increase by at least 50%, and it's not impossible for them to double.”
Upon hearing this, Lin Haoran nodded in satisfaction.
In other words, he could make $30 billion by closing his positions now.
This money is really easy to make.
He could have earned even more if he had waited until the Mexican government declared bankruptcy.
However, there is still a full month before Mexico declares bankruptcy, and the Mexican government is still making a last-ditch effort because the bond repayment period has not yet arrived.
Therefore, even if he closes his position now, there will still be opportunities for him to re-enter the market later, and there is still plenty of time!
Although it's clear to everyone that they can't hold on any longer, as long as they haven't officially announced their default, there's still a glimmer of hope for the market.
Anything can happen during this month.
The International Monetary Fund may step in to provide assistance, the United States may change its stance, and the Mexican government may come up with some unexpected measures...
Now, Lin Haoran plans to personally intervene in this variable.
Of course, this is only a short-term change, and it's just a superficial show of support for Mexico.
As for whether Mexico can really be completely saved by throwing money at the problem?
Even if he had the ability, he wouldn't do it. After all, Mexico isn't his homeland. Why should he use his own money to fill that bottomless pit?
But it's okay to just put on a show.
It would be best to unite with other forces to offer assistance to Mexico, such as the Federal Reserve.
He believes that the Federal Reserve also does not want to see Mexico completely collapse.
After all, Mexico is the southern neighbor of the United States, with a 2,000-mile border between the two countries, millions of Mexican immigrants living in the United States, and countless American companies having huge investments in Mexico.
If Mexico were to completely collapse, the influx of illegal immigrants, social unrest, and economic recession would directly impact the United States.
Therefore, the Federal Reserve and the U.S. Treasury must be secretly assessing the situation in Mexico.
If they can save someone, they definitely will, unless the cost is too high for them to justify saving them.
"Okay, Zhixue, after the market opens today, start closing your positions. You don't need to be too fast. I'll give you a full day of trading time. Just clear out all your positions before the market closes."
"Remember, be discreet, be discreet, and don't attract the market's attention," Lin Haoran said with a smile.
"Ah, boss, why? If we hold out until the Mexican government can't hold out any longer and declares default, then our profits might even double!"
Closing the position now means missing out on three billion dollars in profits!
Su Zhixue's voice was filled with obvious confusion and regret.
Three billion US dollars is no small sum.
Many businessmen can't earn that much money in their entire lives, and now they're giving it up like this. Anyone would feel heartbroken.
But Lin Haoran had his own considerations.
He smiled and said slowly.
"Zhixue, listen to me."
"Boss, please speak." Su Zhixue's voice carried a hint of reluctance, but he still listened patiently.
"First, we've closed out our positions now, and we've got three billion dollars in hand. That's enough for us to do a lot of things. But greed is like a snake trying to swallow an elephant. If something goes wrong along the way, those three billion dollars could be gone."
Su Zhixue remained silent and did not refute.
Lin Haoran continued, "Secondly, I am prepared to release evidence proving that Soros is manipulating public opinion behind the scenes. No one can say for sure how the market will react then."
What if the Mexican government seizes the opportunity to shift all the blame onto Soros, claiming they were framed, and then the international community comes to the rescue, market confidence recovers, and CDS prices plummet? What will we do then?
"In addition, I also plan to give Mexico some aid. Of course, my aid will not be too large. Anyway, it will be a portion of the money we earn, just a token amount."
For example, announcing additional investment, opening new stores, and creating more jobs—these actions are enough to create the illusion in the market that Lin Haoran has confidence in Mexico and that Mexico can still be saved.
Lin Haoran paused for a moment, then continued.
"And Soros, his positions are still intact. If market confidence recovers, the peso rebounds, and CDS prices fall, what will happen to him?"
Su Zhixue gasped.
"He will be liquidated."
“That’s right.” Lin Haoran smiled. “With a $500 million position and leverage, he would have to add margin if the market moves against him by 10%.”
If the price fluctuates by 20%, he'll be liquidated, and not only will he not make any money, he'll lose everything.
Su Zhixue remained silent for a long time.
Then, he spoke slowly.
"Boss, I understand. You want Soros to watch victory slip through his fingers on the eve of his triumph."
Lin Haoran nodded and laughed, "Yes, let him experience what it feels like to fall from heaven to hell."
He trusted Su Zhixue completely; the other party had a 100% loyalty level.
Moreover, the subsequent planning still needed to be done by this general, which is why he told Su Zhixue all this.
Su Zhixue took a deep breath and exclaimed, "Boss, your move is even more ruthless than directly exposing him with evidence."
Lin Haoran laughed and said, "He provoked me first, I'm just returning the favor."
"Boss, I know what to do. I'll start closing out my positions as soon as the market opens, and clear out all my holdings within a day," Su Zhixue said solemnly.
"Yes, you'll need to look for opportunities to make a second move later. When the market fluctuates because of my statement and the release of evidence, there will be a better entry point."
Then we'll launch a surprise attack and cut Soros's corpse again.
Su Zhixue's eyes lit up when he heard this, and he said, "Boss, are you trying to destroy Soros?"
Lin Haoran laughed and said, "He asked for it. I gave him a chance, but he didn't take it. So don't blame me for being impolite."
Lin Haoran's idea regarding Soros was to stay as far away as possible; he didn't want to have any dealings with him.
Unfortunately, the other party insisted on provoking him, and even resorted to such despicable means, inciting the public to smash his shops and injure his people.
Then don't blame him for being ruthless. (End of Chapter)