Steal the enemy's base at the start and build a technological empire.

Chapter 133 Empty Orders

Nine o'clock in the morning, Central, the meeting room of Far Eastern Capital.

Ling Yun stood in front of the whiteboard, Li Ziyu and his three traders sat around the conference table, and Zhao Hu stood guard at the door.

"What's the SET Index in Thailand now?" Lingyun asked.

One trader replied, "Yesterday's closing price was 785 points."

"How much was it three months ago?"

"Around 620 points. Up 26%."

"The bubble is obvious." Ling Yun drew a chart on the whiteboard with a pen. "Real estate stocks and bank stocks have seen the biggest gains, with price-to-earnings ratios generally exceeding 30, but corporate profit growth is only 15%."

Li Ziyu nodded: "Market sentiment is overheated."

"We're going to short," Ling Yun said. "In two steps. First, stock index futures. The Thai futures market is small, so we can't make large trades. We'll start by investing ten million US dollars, leveraged eight times, to establish a short position worth eighty million US dollars."

Trader's notes.

"The second step, NDF," Ling Yun wrote down these three letters, "a non-deliverable forward contract. This is crucial."

He turned to the whiteboard and drew a diagram.

"Simply put, NDF is betting on the exchange rate at a future point in time. We sell a Thai baht forward contract, agreeing to sell Thai baht and buy US dollars at an exchange rate of 1:25 six months later. If the Thai baht depreciates to 1:50 by the expiration date, we can use half of the US dollars to buy the agreed amount of Thai baht to complete the contract and profit from the difference."

A young trader asked, "What if the Thai baht appreciates?"

"Then we'll lose money," Ling Yun said. "But the Thai baht won't appreciate. It has to depreciate."

"How much should we invest?" Li Ziyu asked.

"With a margin of 20 million US dollars, and based on the current NDF market practice of a 4% margin ratio, a contract with a notional amount of 500 million US dollars can be established."

The meeting room fell silent for a moment. A sale commitment of five hundred million US dollars, equivalent to 12.5 billion Thai baht.

"Time point?" Li Ziyu asked.

"The contract expires on September 15th," Ling Yun said. "I predict the Thai baht won't last until then."

"Okay," Li Ziyu said to the trader, "Do as Mr. Ling said. Diversify your operations and don't concentrate on one bank."

"clear."

The traders left the meeting room to begin their work.

Ling Yun told Li Ziyu, "Have your people monitor the Bank of Thailand's movements daily. If there are any signs of intervention, immediately adjust your positions."

"We're already keeping an eye on it," Li Ziyu said. "The Bank of Thailand's foreign exchange reserves are decreasing every day, and the market knows it."

"But the general public doesn't know that," Ling Yun said. "The news is still saying the economy is doing well."

"A classic case of burying one's head in the sand."

I had a simple boxed lunch in the office at noon.

Lingyun checked the transaction records. Ten million US dollars had been used to establish short positions in SET index futures in batches. The average entry point was 782 points.

The NDF contract is also underway. Two European banks and one American bank accepted their offers. A $20 million margin secured a $300 million notional contract. Two more banks are needed to fill the remaining $200 million gap.

At 2 PM, Sun Peng called.

"Brother Yun, I'm at the airport, just arrived in Hong Kong."

"Come to Central, Far East Capital."

"it is good."

An hour later, Sun Peng came in looking travel-worn. He had gained some weight and was wearing a polo shirt, looking like a construction foreman.

"Brother Yun!" He shook hands with a smile, then, seeing Zhao Hu, asked, "And this is?"

"Zhao Hu, my assistant."

"Hello, Tiger."

Zhao Hu nodded.

The three sat down. Sun Peng took a sip of water.

"Mr. Li said you're going to build a digital city in Bangkok? Five hundred million US dollars?"

"Yes. The first phase is 150 million. We need a construction team."

"Our construction team is fine," Sun Peng said. "They're qualified and have experience with overseas projects. They can handle the work visas in Thailand."

"Time is tight, so there's no rush to start construction. We need to get things moving first and make a big splash."

"There's still time. Do you have a design plan?"

"Yes." Ling Yun took out the architectural drawings from the filing cabinet. "This is the first phase, a six-story shopping mall, 30,000 square meters. There are two underground parking levels."

Sun Peng looked through the blueprints.

"Steel structure or concrete?"

"Concrete is cheap in Thailand, and building materials are inexpensive."

"What about the cost?"

"The budget is $500 per square meter. The total is $15 million."

Sun Peng performs rapid mental arithmetic.

"We can do it according to this standard. The profit margin can be controlled at around 15%."

"Don't lower the price too much," Ling Yun said. "Quality must be guaranteed. This is our first project in Southeast Asia, and we want to make it a model project."

"Understood." Sun Peng put away the blueprints. "I'll fly to Bangkok tomorrow to see the site in person."

"Let Zhao Hu go with you. He knows about security and can help me keep an eye on things."

"it is good."

Sun Peng hesitated for a moment.

"Brother Yun, there's something I need to tell you."

"explain."

"Can this digital city really make money? I've heard that the economy in Thailand is a bit weak."

"In the short term, we may not make any money, or even suffer a small loss," Ling Yun said frankly. "But in the long run, the location is good, and the value will appreciate. Moreover, this project has other benefits."

"What is its purpose?"

"Cover up." Ling Yun didn't explain further. "You just focus on doing a good job on the project, completing it on time and to a high standard. I'll arrange the funding."

"Understood." Sun Peng didn't ask any more questions.

In the evening, the traders reported on the progress.

Short positions in SET index futures have been established. Average cost: 783 points.

NDF's $500 million notional contract has been fully established. A $20 million margin has been secured, locking in contracts with six banks, all expiring on September 15th, at an agreed exchange rate of 1:25.

Lingyun examined the contract documents; it was a thick stack, filled with densely packed English clauses.

He signed it.

"What's next?" Li Ziyu asked.

"Wait," Ling Yun said. "Let the bullets fly for a while."

In the evening, I had dinner with Sun Peng and Zhao Hu at a nearby tea restaurant.

Zhao Hu ate quietly, his eyes scanning the dining room.

The phone rang. It was Lee Tae-geon calling from Bangkok.

"Mr. Ling, thank you for your help." His voice was a little nervous. "Recently... things have been a bit tense."

"What's wrong?"

"The central bank is investigating large outflows of foreign exchange. But we left early, so we're fine."

"That's good."

"There's one more thing," Lee Tae-geon lowered his voice, "A few of my friends also want to exchange some US dollars. The amount isn't large, a little over a billion Thai baht. Are you still willing to help?"

Ling Yun thought for a moment.

"I won't answer for now. We'll talk when we meet."

"Okay, okay. I'll contact you again then."

After hanging up the phone, Sun Peng asked, "Who was that?"

"A friend from Thailand," Ling Yun said without elaborating.

After dinner, Sun Peng returned to the hotel. Zhao Hu drove Ling Yun back to her residence.

On the way, Zhao Hu said, "President Ling, those contracts we finalized today, if the Thai baht doesn't fall..."

"It will fall." Ling Yun looked out the window. "The fact that people like Li Taijian are starting to panic means things are already in chaos internally. They are closer to the center of power than we are, and they know the cards on the table."

"So what we're actually making is panic money from these people?"

"That's right," Ling Yun said. "Capital has no nationality. Wherever there's panic, money will flow there. What we need to do is stand in the direction that money is heading."

Zhao Hu drove in silence.

Back at his residence, Lingyun turned on his computer.

Check the Thai SET Index. It closed today at 780 points, down 5 points.

The amplitude is very small.

But the trend has begun to shift.

He emailed the Singapore company: Continue to observe, do not increase position for now.

Then I called An Shiyu.

"What are you doing?"

"Writing a paper. What about you?"

"In Hong Kong."

"When are you coming back?"

"In a few days."

"be safe."

"Know."

A few simple words, and then he hung up.

Lingyun stood on the balcony. The night in Hong Kong was a bit colder than in Bangkok.

The wind blew in from the sea, carrying a salty taste.

He currently possesses:

$80 million in short positions in SET index futures.

$500 million NDF Thai baht short contract.

There are also previously established short positions in the Thai baht spot market.

Total risk exposure is approximately $700 million.

If the Thai baht depreciates by 30%, the profit could exceed two hundred million US dollars.

If it depreciates by 50%...

The numbers will be even larger.

However, the risks are also significant. If the Thai government intervenes forcefully, or if the International Monetary Fund provides early assistance, the Thai baht may hold up.

At that time, he would lose his margin, or even face a margin call.

However, he trusted his own judgment.

The history of the past will not change.

On July 2, 1997, Thailand announced that it would abandon the fixed exchange rate system, and the Thai baht plummeted by 17% that day.

Then continue downwards.

He just needs to wait until that day.

My phone vibrated. Li Ziyu had sent me a text message: "Just received news that the Quantum Fund dumped another 10 billion baht today."

Ling Yun replied: "Continue to observe."

He put down his phone and took a deep breath.

The chessboard has been set up.

Now, all that's left is for the opponent to make a move.

Or, to put it another way, wait for the opponent to fall.