Chapter 1157: Monopoly business is fragrant

Unlike the situation at the beginning of the operation of the Hong Kong United Stock Exchange, the trading volume of the Hong Kong Futures Exchange is getting higher and higher every day.

After the total daily trading volume reached more than 1.263 billion Hong Kong dollars on the first day, it broke through 1.4 billion Hong Kong dollars the next day.

When the market closed on Friday, the daily trading volume had reached more than 1.87 billion Hong Kong dollars.

At a commission rate of 0.05%, the commission for the day alone was nearly 1 million Hong Kong dollars.

The prosperity of the Hong Kong futures market is already catching up with the Hong Kong stock market, with a difference of only 540 million Hong Kong dollars.

Yes, stimulated by the Hong Kong futures market, the daily trading volume of the Hong Kong stock market is getting higher and higher every day, and on Friday it reached 2.4 billion Hong Kong dollars again.

The Hang Seng Index surged to 1,621 points.

The Hong Kong stock market has reached this level because of the launch of the Hang Seng Index.

After the launch of Hang Seng Index futures trading, it has attracted a large number of arbitrageurs and hedgers, which has greatly increased the scale and liquidity of the stock market.

Because the trading volume of the stock market and futures market is a two-way push, they are typical complementary markets.

The launch of stock index futures will not only not divert funds from the spot market, resulting in light trading in stock spot transactions and a downturn in the market, but will instead increase the size of the stock spot market and increase market liquidity. It is an effective means to better prosper and promote the development of the stock spot market.

In the medium to long term, stock index futures will have an attractive effect on over-the-counter funds, resulting in significant growth in trading volume in both the stock market and the futures market.

Just like in the previous life, in 1986, after the launch of Hang Seng Index futures, the trading volume of the Hong Kong stock market increased by 60%. Although there were other factors that contributed to this increase, the launch of Hang Seng Index futures was a crucial factor.

In this life, not only did Hang Seng Index futures appear four years earlier, but there are also the Nikkei 225 stock index futures and FTSE 100 stock index futures, which are more well-known, have a greater influence, and have a larger trading volume.

However, Xia Yu reckons that the Hong Kong futures market will overtake the Hong Kong stock market by the end of the year, and gradually leave the Hong Kong stock market behind. Even if he manages to get the eight companies listed, it will not change this general trend.

There is nothing he can do about it. This is determined by the market size and trading mechanism, and it is the same worldwide.

The trading volume of the futures market is greater than that of the stock market.

This is because the futures market is equivalent to a natural leverage, unlike the stock market, where many institutions and retail investors speculate with their principal.

Of course, if the total trading volume is calculated simply based on the margin in the futures market, it may not necessarily exceed the size of the stock market.

But in any case, as long as it can stimulate the financial industry in Hong Kong and thus drive the Hong Kong economy to become active in all aspects, Xia Yu's goal has already been achieved.

Sunday, November 21st.

The stock market and futures market have temporarily cooled down, but Tiangong Electronics has made another big move after a period of more than two months.

This time, the global launch event was held in four places: New York, London, Hong Kong and Tokyo.

At each event, the heads of major record companies and their singers were invited to attend, and the event was attended by many stars, just like a huge concert.

The sound quality of the songs played on the Tiangong CD records was not inferior to that of the singers' live performances, which made the fans who came to the Tiangong CD-P1 portable player launch event go crazy.

Although the retail price of each CD-P1 portable player is as high as 760 US dollars, which is more than three times the price of the world's best-selling Tiangong SP-S2 portable player, it still cannot stop enthusiasts from crazily pursuing and buying it.

After all, the Tiangong CD-P1 portable player is the world's first CD portable player, and it is priced very high.

Therefore, despite the high brand awareness of Tenco Electronics and the fact that the newly launched SP-S2 portable CD player is still selling well around the world, Tenco Electronics' global distributors were also afraid to stock the product in large quantities due to the unknown market.

Therefore, despite Fok Kin-ning's first call to global distributors to come to Hong Kong for a trade fair to see the product for themselves, only 112,000 Tenco CD-P1 portable CD players were ordered before the global launch on 21 November.

Less than a quarter of the Tiangong SP-S2 Walkman!

However, after Tiangong Electronics' global launch, major distributors around the world, having seen the market's enthusiasm, realised that the market for CD Walkmans not only existed, but was also very broad, and so they all placed urgent orders with Tiangong Electronics.

This time, unlike the vinyl record Walkman, there was only one model of CD Walkman in the world, and Tiangong Electronics temporarily had a complete monopoly on the market.

Furthermore, it was already the end of November, and there was only one month until Christmas.

The Christmas holiday period is also the biggest consumer holiday of the year in Europe and the United States.

The major distributors considered that the one-month period was already very tight, taking into account the time from placing an order to production, then shipping and stocking.

Therefore, after regretting their previous lack of boldness in not placing more orders, the major distributors scrambled to place new orders, all with increased quantities, for fear of running out of stock later.

A week after the launch, Tiangong Electronics received another order for 495,000 units.

Together with the 112,000 units ordered before the launch,

the total number of orders for the Tiangong CD-P1 Walkman reached 607,000 units.

This exceeded half of the sales of the Tiangong SP-S2 Walkman during the same period.

However, because the wholesale price of the Tiangong CD-P1 Walkman was US$575, the total order value reached US$349 million.

Coupled with the fact that it took several months from June onwards to reduce costs, the manufacturing cost of the Tiangong CD-P1 Walkman was reduced from US$162 to US$141, resulting in a gross profit of US$250 million and a gross profit margin of 75.5% for these orders.

The previous Tiangong SP-S2 Walkman, due to its low unit price, had an order volume of 1,053,000 units in the same period, but the total order value was only just over 187 million US dollars, with a gross profit of 141.1 million US dollars.

Although the gross profit margins were similar, the money earned from the exclusive market was more.

However, this exclusive business will only last until the end of this year. It is estimated that starting next year, members of the CD-ROM technology standard alliance will be able to launch their own CD players.

By then, Tiangong Electronics will have to rack its brains to maintain its dominant market position.

Therefore, in the next month or two, Tiangong Electronics will use all resources to increase its popularity and consolidate its market position, so as to get as much of the pie as possible.

...

As time gradually moved towards the end of November, governments around the world, debtor countries such as Latin America, the Federal Reserve, the International Monetary Fund, and commercial banks from various countries had reached a relatively unanimous solution to the sovereign debt crisis in Latin American countries.

The more than 3,000 commercial banks around the world that had fallen into the quagmire were once again dragged along by the crisis for several more months, and they gradually softened their previously tough stance.

At first, Latin American countries and other countries wanted to completely default on their debts, which was typical of the mentality of the barefooted person who is willing to throw in the towel and drag the whole world down with them.

The commercial banks of various countries around the world did not want to suffer any losses either, and not only did they intend to get back the principal, they also wanted the interest. If Latin American countries and other countries could not repay the debt within a short period of time, they could defer it, but the interest would continue to accrue.

However, after negotiations between the various parties, even large consortia such as Rockefeller, Citicorp, Morgan and Rothschild realised the difficulties, and subsequently made compromises step by step. More and more banks agreed to reduce the interest and discount the debt.

To put it bluntly, they were willing to forego the original interest and did not pray for the return of the full principal, but were grateful to be able to get back some of it.

Although this would result in a significant loss, it was better than getting nothing back.

Of course, given the current situation in Latin American countries, even if the major banks want to get back some of the principal, they can forget about it in recent years.

Because if the fundamental economic problems in Latin American countries and other countries are not properly resolved, this economic bomb will remain, and if it explodes a second time, the impact will be even more severe, and the global economy will be dragged down again.

So not only will they not be able to get back part of the principal in the next few years, the major commercial banks that have been tied up will also have to pool their money and continue to lend to Latin American countries and other countries to restore economic order.

As for the amount of money to be paid, it has risen from the 66 billion US dollars proposed by the International Monetary Fund in October to 100 billion US dollars in November!

This is equivalent to about one-third of the sovereign debt of Latin American countries that have now defaulted!

This is a huge pressure on many commercial banks!

But fortunately, a solution has been proposed, and the attitude of Latin American countries and other countries has become relatively positive.

As a result, the growth rate of income for the eight major banking fund teams began to decline.

The period of rapid floating profits has already passed.

At Xia Yu's command, the eight major teams began to harvest the funds.