Chapter 1370 - 1364: The Battle of Exchange Rates
"Arranged by level of risk, there are four tiers: causing major turmoil in the stock market, shaking investor confidence in the Japanese financial market, massive capital outflow leading to foreign exchange market fluctuations, and creating a real economic crisis. I think it's most likely to reach the second to the third tier, but it's unlikely to trigger a real economic crisis," Mizuhara Amei said.
"Are you implying that the collapse of Sea Domain Company this time might affect Japan's exchange rate?" Lin Chuan was taken aback.
The money he withdrew from Sichuan University Group had all been converted into Japanese currency! If that's the case, he'd suffer a major loss!
Lin Chuan had not expected that his actions could affect Japan's exchange rate market. He wondered if Mizuhara Amei was intentionally exaggerating or if there was some truth to it.
Mizuhara Amei continued, "Generally speaking, Japan's scale is large enough with substantial foreign exchange reserves to surely withstand it. But the problem is Japan is an island nation, heavily dependent on imports and exports! This makes it vulnerable in terms of exchange rates. This isn't impossible."
Lin Chuan was a bit confused by Mizuhara Amei's high-level remarks. His original intent was not to impact Japan's exchange rate market but just to avenge a few brothers. At this moment, he was in no mood to enjoy hot springs, and completely disregarding his lack of clothing, he stood up from the pool and strode out: "Looks like I need to change my plan. You both come with me."
Qingzi and Mizuhara, facing Lin Chuan's "body," both blushed simultaneously but did not shy away. Instead, Qingzi said loudly, "Lin Chuan, though I'm your girlfriend, Amei is not. Can we consider—"
"I understand what you mean. Starting now, Ms. Mizuhara is also hired by Sichuan University Group. This is not the time for entanglements," Lin Chuan's voice echoed from the dressing room.
Upon hearing this, Qingzi and Mizuhara Amei were taken aback. Mizuhara had an unusual expression in her pretty eyes, uncertain if she was talking to herself or Qingzi: "Qingzi, your boyfriend is a bit too strong, isn't he? I haven't agreed to this yet."
Qingzi gave a slight smile and asked, "So, have you agreed or not?"
Mizuhara Amei replied playfully, "That depends on what position your strong boyfriend offers me."
Sichuan University Group's development to this day relied not only on Lin Chuan and his Jvyi Gang brothers' joint efforts but mainly on Lin Chuan's network connections.
Now, many brothers who once fought alongside him are gone, and the group desperately needs high-end talent.
Sichuan University's development has reached a point that affects many people's livelihoods, and relying solely on strength to expand as in the past would mean inevitable elimination.
To further grow Sichuan University Group, it must enlist talented individuals, and Mizuhara Amei is undoubtedly one of them.
When Qingzi deliberately mentioned Mizuhara and her analytical skills, Lin Chuan realized her intentions. He had also assessed her capabilities, and talent like hers should naturally be absorbed into the company.
He was quite fortunate to have known Qingzi, otherwise, he might never have had the chance to have someone of Mizuhara's caliber serve him.
Of course, their motives might not be pure. If Mizuhara's abilities were such, she would be valued anywhere. If he guessed correctly, they would likely establish their own ventures after gaining enough experience and accumulation. Nonetheless, such things are inevitable anywhere, as long as they are committed before striking out on their own.
Lin Chuan led them back to his room, opened his computer, and checked the current situation of the Japanese stock market.
Sea Domain Company's situation was already dire. Its collapse was a foregone conclusion, just waiting for the moment it gives up resisting.
Originally, Lin Chuan planned to wait for it to collapse, saving the need for repurchasing stocks, thereby maximizing profits. But if preventing the scenario Mizuhara Amei predicted, then he should act immediately!
"Qingzi, we should immediately repurchase Sea Domain Company's stocks!" Lin Chuan said to Qingzi.
Qingzi, although anticipating Lin Chuan's decision, was still startled by his decisiveness: "Lin Chuan, that's over a billion shares! Are we repurchasing all of them?"
"Yes! Not leaving a single one!" Lin Chuan resolutely stated.
Once Lin Chuan made up his mind, Qingzi raised no objections and gathered the traders to execute the plan.
Meanwhile, Mizuhara Amei, temporarily idle, curiously asked, "Isn't this too aggressive? After all, this way we can't maximize our profits. It'd be better to repurchase three-quarters of the stock and leave a quarter. That way, even if the Japanese currency devalues, you'd secure maximum profit. Besides, whether this leads to exchange rate fluctuation is still uncertain."
"It's likely not that simple." Having been reminded by Mizuhara Amei, Lin Chuan thought even further than she did, "Now I'm worried not just about whether it will cause exchange rate fluctuations, but the extent might exceed your predictions!"
"Ah? Really?" Mizuhara looked at Lin Chuan, still not grasping his anxiety.
"Quite likely! I've had an unease in my heart. Nomura Xin's actions in the Chinese market have been noted by those with vested interests. But surprisingly, there aren't many international financial giants eyeing Sea Domain Company this time! That's very strange!"
Mizuhara hesitated and said, "Could it be they've already acted but are using the hands of Japanese domestic companies to do so? They wouldn't need to act personally for this scale."
"Heh, if that's the case, then your previous assumption doesn't hold. If they truly acted, Sea Domain Company wouldn't have any chance to fight back. Even with some company support, how could it contend with financial giants? Japan is a completely free market, unlike China's semi-closed market."
This time, Mizuhara was at a loss.
She had been confident about her analytical abilities, but the conclusions she discussed with Lin Chuan took significant time and effort to analyze.
Still, even with this, she couldn't keep up with his thinking now and truly wanted to know what Lin Chuan's brain was made of!
"If I'm not mistaken, they intentionally want Sea Domain Company to hold on a bit longer! Because Sea Domain Company's defeat in China happened too quickly, they need time to raise funds, and their target is likely Japan's exchange rate!"
Upon hearing this, not only Mizuhara but even Qingzi's face changed sharply, understanding the impact Lin Chuan's suspicions would have on Japan's economy!
"Shouldn't we immediately report this possibility to the Finance Ministry's officials? If those financial giants truly are involved, Japan's currency market would be severely hit!"
Japan is Asia's financial center. If Japan's capital market faces turmoil, surrounding countries' markets would inevitably be affected, and who knows how many would end up jumping out of windows.
Lin Chuan is no saint, but he certainly doesn't want to see such things happen.
Japan's financial department probably wouldn't take concentrated measures just for one Sea Domain Company since they are one of the freest international markets. But if it involves international financial speculators targeting the Japanese currency, it's a significant problem! Only the financial department's immediate action might mitigate this crisis.
"Forget it, reporting would just create enemies for nothing. Even if there was possible initial intervention against Sea Domain Company, its imminent collapse already makes time insufficient. We should immediately sell off, then convert our funds to US Dollar and see what happens."
Mizuhara and Qingzi could only concur.
Besides, on the other hand, they haven't heard any news about international capital movements, and all these are just Lin Chuan's guesses. They also wanted to see if Lin Chuan's analysis was accurate.
They didn't have to wait long for the truth. Two days later, they had converted most of their funds to US Dollar. However, they didn't transfer it back home, still hoping to profit from Japanese currency devaluation.
On the second day, further forces targeted Sea Domain Company in Japan, so even though Lin Chuan's group had pulled out, Nomura Xin couldn't withstand this wave of attacks. Company stock plummeted, and Japan's Securities Regulatory Council swiftly ordered a suspension of Sea Domain Company's trading. As the news hit, countless covert forces rejoiced. Those companies involved in attacking Sea Domain Company profited handsomely this time!
However, they soon couldn't laugh anymore.
While this news announced their ultimate victory, it equally greatly undermined ordinary investors' confidence in the stock market, including numerous foreign consortia's belief in the Japanese market!
The most direct manifestation was the mass outflow of capital from Japan's market!
Starting on the fourth day, Japan's exchange rate plummeted!
On that very day alone, it fell by four percentage points!
Initially, not everyone realized the seriousness, thinking this outflow was temporary. But then, on the second and third days, Japanese currency again dropped twelve percentage points!
And it was a one-sided drop, with no signs of rebound!
This time, not only were panicked Japanese enterprises alarmed; even the Japanese government was anxious. The Finance Ministry minister personally stated that an expert group would be formed to research solutions to the exchange rate crisis. They would also deploy foreign exchange reserves to stabilize the rate.