Chapter 34: Bullish or Bearish?

The idea of a market crash for the Hong Kong stock index?

Sun Wei was initially stunned by Zhou Ming's prediction but then burst into laughter as if he had heard the funniest joke in the world. He said to Zhou Ming, "Are you out of your mind? Just because you've bought a few stocks with Wang Yunlong doesn't mean you understand finance. You think stock index futures are the same as the stocks you've bought? Don't pretend to know something you don't."

Sun Wei then turned to Lin Muqing, "Miss Lin, I know you're studying at HKU, but you might not have learned everything yet. Let me educate you on this financial knowledge. The Hong Kong stock index is calculated based on the market value of key constituent stocks in the Hong Kong stock market. It essentially represents the entire stock market in Hong Kong, and these listed companies are controlled by major financial groups. Do you think such a thing could suddenly crash? Unless all the heads of these financial groups were to die."

"I didn't say the index would suddenly crash, but there are circumstances that could cause it to," Zhou Ming reminded him.

"Mainland guy, if you were a general commanding an army to attack Hong Kong or the chairman of the Federal Reserve announcing interest rate hikes, I'd believe you. But you're neither. How can you expect me to trust your judgment about the stock index crashing?" Sun Wei dismissed him.

"I don't need you to believe me. I only need you to help me short fifty-two contracts. You're the one babbling here. If you're not annoyed, I am," Zhou Ming said curtly.

Sun Wei's eyes widened in anger as he pointed at Zhou Ming, "Mainland guy, you're really ungrateful. I'm trying to help you avoid a loss, and you're treating my good intentions with disdain!"

Zhou Ming shrugged, "Sorry, I don't see your good intentions. I only see a stubborn Hong Konger who keeps mocking me. If you keep causing trouble, I'll reserve the right to file a complaint against you with your supervisor."

"Fine, you Mainland guy, I'll help you short fifty-two contracts. When the index rises tomorrow and you lose all your money, don't come crying to me!" Sun Wei retorted, then turned to Lin Muqing, "Miss Lin, I understand you're not on the same page as this person. You're smart, so I hope you don't go crazy with him. I can open a separate futures account for you. If you take your share of the money out, I'll help you take a long position on the Hong Kong stock index. You'll definitely make money! What do you think?"

After hearing Sun Wei's suggestion, Zhou Ming nodded seriously and asked Lin Muqing, "He does make a good point. What do you think, Muqing?"

Lin Muqing smiled, "Why would I listen to a stranger? Of course, I trust your judgment. Even if you do lose, we can make it back together. It's just 520,000 HKD, not a lot."

Sun Wei, initially trying to get close to Lin Muqing, was taken aback by being labeled a stranger so directly. Unwilling to accept this, he added, "Miss Lin, I understand you still don't trust me. I'll tell you the truth: I also have a futures account. I can buy ten contracts myself before the market closes today. You'll see who's looking out for you."

Before Lin Muqing could respond, Zhou Ming interjected, "Ten contracts? That's 100,000 HKD. If I'm not mistaken, that should be all your savings, right? As a futures client manager, you should know that such emotional trading is unwise."

"Unwise? Are you saying that buying fifty-two contracts is wise? If a Mainland guy like you isn't afraid, why should I be? I can responsibly tell you that you're bound to lose!" Sun Wei said deliberately.

With that, Sun Wei led Zhou Ming and Lin Muqing to the company's trading room and had the operators place their orders.

When the operators heard Zhou Ming wanted to short fifty-two contracts of the Hong Kong stock index, they were quite surprised. Sun Wei said, "This Mainland guy is an idiot. Just ignore his thoughts and execute the order."

This statement upset Lin Muqing. She warned Sun Wei, "This is the last time I'll warn you. Watch your language, or I will file a complaint with your supervisor."

Sun Wei gave an apologetic smile and then loudly instructed the operator, "Also, place an order for ten long contracts."

Zhou Ming knew Sun Wei's comment was meant to provoke him, but he didn't waste time arguing. After personally confirming that his fifty-two short contracts were placed, Zhou Ming sighed in relief and left the futures company with Lin Muqing.

…

After dinner, Zhou Ming was watching TV in his hotel room, while Lin Muqing was reading a book, though she seemed distracted today.

Seeing Lin Muqing's discomfort, Zhou Ming asked with a smile, "Muqing, what's wrong? Are you uncomfortable in the room? Don't worry, as soon as the Hong Kong stock index starts to plummet tomorrow, we'll make at least ten million HKD. I'll get us a better hotel with a sea view, one where we can see Victoria Harbour directly."

Lin Muqing, unable to focus on her book, closed it and gave Zhou Ming a look, "You're so carefree. You know I'm worried, yet you talk about these useless things."

"You're still worried about the short positions I placed today?" Zhou Ming asked.

Lin Muqing nodded, "Of course I'm worried. That's 520,000 HKD, our entire savings. How can I not worry? What if your prediction doesn't come true?"

"If it doesn't, we might lose a few tens of thousands HKD. But that's okay. No matter how much we lose, I can make it back," Zhou Ming said nonchalantly.

Zhou Ming had considered Lin Muqing's concerns, but based on the information he had gathered over the past month, the global economic trend was as he remembered, and he hadn't done anything to disrupt the normal economic order. Therefore, a financial storm was bound to happen.

Lin Muqing, however, did not have Zhou Ming's knowledge and was still worried, "But Zhou Ming, do you know? This afternoon, just before the Hong Kong Stock Exchange closed, Wang Yunlong paged me saying the index had risen another twenty points."

Zhou Ming raised his eyebrows, "It's risen again? That's even better. The more it rises today, the harder it will fall tomorrow. Just wait and see."

Just then, Zhou Ming glanced at the clock on the wall and smiled, "It's getting late. Wang Yunlong should be calling us soon."

As if on cue, the phone in Zhou Ming's room rang, startling Lin Muqing. Lin Muqing knew Wang Yunlong monitored other countries' stock markets every night, so she looked at Zhou Ming incredulously, "How did you know? Did the U.S. stock market really crash without any warning?"

"Facts speak louder than words. Wang Yunlong will give us the news soon."

Zhou Ming answered the phone and put it on speaker. Wang Yunlong's excited and trembling voice came through, "It's crashed! The U.S. stock market has really crashed! From the industrial index to the S&P 500, the U.S. market started a full-scale crash as soon as it opened!"

Hearing Wang Yunlong's ecstatic voice, Lin Muqing felt like she was in shock, unable to believe her ears.

In contrast to Lin Muqing's shock, Zhou Ming was very excited. He had finally waited for this day—Black Monday, the day that shocked the world! Although he only had 520,000 HKD, it was all he could afford. After this stock market crash, Zhou Ming believed he would at least become a millionaire. When he returned to the Mainland, not only would people like Huang Zheng be insignificant, but even the mayor of Lin City would have to treat him with respect.

Thinking about this, Zhou Ming could no longer contain his excitement. He lifted Lin Muqing and twirled her around the room. At that moment, Lin Muqing was still in shock from the news of the U.S. market crash, so she allowed Zhou Ming to hold her. It was only when she felt an unusual sensation against her chest that she realized Zhou Ming had somehow rested his head on her ample chest.

A flush of red appeared on Lin Muqing's face as she quickly raised her fists and began to hit Zhou Ming, shouting for him to put her down.

Zhou Ming had to set her down. As soon as Lin Muqing was back on her feet, she grabbed his waist and pinched him, saying angrily, "You really don't pay attention to anything!"

"I was just too excited and couldn't control myself!" Zhou Ming said with a sheepish grin. In truth, Zhou Ming wasn't lying. He had initially picked her up in his excitement but later found himself irresistibly drawn to her. 

"You still say?" Lin Muqing's voice grew firmer as she pinched harder.

Zhou Ming groaned in discomfort, realizing he had overstepped. He hadn't expected such a severe reaction from her. However, he chose to stay silent, knowing Lin Muqing was a strong woman who, despite her outward toughness, needed protection and care.