Chapter 487: Too Crazy Leverage!

Chen Mo is indeed a professional. At least in the financial realm, he’s far more proficient than Liu Yutong.

The man was already a seasoned trader, and the fact that Gu Yebai and his circle had specially brought him over from Hong Kong was testament enough to his expertise.

After all, with Gu Yebai’s connections, they couldn’t possibly entrust such a massive sum to some incompetent hack.

Another advantage of bringing in a trader from Hong Kong was his greater familiarity with international markets compared to their local operation.

The total capital Wanlong Society had prepared for this operation was roughly 4.7 billion, and according to Chen Mo’s report, these funds had already been converted to US dollars.

At the current exchange rate, that amounted to approximately $692 million.

“Miss Liu, based on our preliminary arrangements, we currently have nine relatively independent funding channels,” Chen Mo explained.

“The first operates through three trading companies registered in the British Virgin Islands and Cayman Islands for fictitious trade settlements, with daily movable funds of about $80 million.

The second utilizes two licensed casino-entertainment venues in Macau for fund pooling, with daily movable funds of $50 million, though with significant volatility.

The third channel penetrates through cross-border asset management plans using two affiliated securities firms in Hong Kong, with daily movable funds of approximately $120 million.

Additionally, we have four backup channels. For instance, we can interface with offshore-specific funds through cryptocurrency pipelines, averaging about $30 million daily. This channel offers the highest concealment but also the highest cost.

All channels have currently completed identity segregation and implemented evasion protocols…“

Chen Mo explained in meticulous detail how he and his team would mobilize these funds. Perhaps due to the technical complexity, apart from Zhu Silin, Zhou Muchen and Shen Hao were completely baffled, though impressed by what they didn’t understand.

So this is how complicated it is to move 4.7 billion offshore while keeping it secure.

Liu Yutong could follow along, however, because she had deliberately crammed relevant materials for this opportunity to fleece the Americans.

Otherwise, if this were last year, she would have been completely lost.

Even in her previous life, she would have been clueless—she had barely touched stocks back then.

The reason she could make money in the market this time around was, frankly, due to information from her previous life.

Take this year’s notorious financial crisis: practically everyone had heard about it, whether they invested or not.

So she only needed to be certain of one thing: that the market would crash this year, and that investment banks like Lehman would go bankrupt. That was enough.

After listening to Chen Mo’s report, Liu Yutong shook her head.

“Not enough. The nine channels still carry the risk of being flagged in associated reviews. I want the total funds split into no fewer than fifty portions, then injected through these nine main channels into over 100 independent trading sub-accounts we’ve pre-opened at at least eight major international banks—Credit Suisse, Morgan Stanley, Deutsche Bank, Goldman Sachs, UBS, and others.

The initial capital and subsequent leverage for each sub-account must strictly follow the allocation ratios I’ll provide, to avoid triggering internal risk-control alerts from excessive single-account balances.“

“Fifty portions? Over a hundred sub-accounts? This…”

Chen Mo’s scalp tingled at the thought—the operational complexity and demands on team coordination would increase exponentially.

Honestly, he was quite confident in his channels’ security, but Miss Liu still wasn’t satisfied.

Could she really be that confident in herself?

Confident enough to fleece the United States for an 800% return?

But even at 800%, that would only amount to roughly 37 billion in profit, equivalent to about $6.2 billion.

Truthfully, $6.2 billion is substantial, but not enough to make the other side sit up and take serious notice.

After all, daily trading volumes in the US market run in the trillions—tens of billions wouldn’t warrant serious government attention.

Not to mention actually earning that much profit remained uncertain.

He thought this to himself, but dared voice no objection, immediately nodding: “Yes, we’ll formulate a detailed fund dispersion plan immediately to ensure the funds are more scattered and concealed.”

Liu Yutong nodded. “Fund security cannot afford any mishaps. You must keep this in mind at all times.”

Everyone: “Yes!”

Liu Yutong: “Now that we’ve covered fund security, I’ll outline the specific short-selling strategy. Remember this clearly.”

Chen Mo and the others, even the Wanlong Society members watching from the sidelines, involuntarily straightened.

After preparing for so long, this was what they most wanted to hear—how their big sister Liu Yutong planned to short the other side.

“First, the core target is Nasdaq 100 index futures, but we can’t put all eggs in one basket, even within the same index.”

“You’ll proceed in three phases. First, deploy roughly 70% of the capital, about $480 million in margin, to gradually establish short positions in Nasdaq index futures across different sub-accounts at various brokerages.

Leverage should be secured between 30x to 50x based on each brokerage’s requirements and account sizes—the higher the better. Target total notional short value of $280 to $300 billion should suffice.“

“30x to 50x leverage? Only $300 billion?”

Everyone, including Zhou Muchen and the other Wanlong Society members, gasped at Liu Yutong’s numbers.

Using around $690 million to leverage nearly $300 billion—this was insane.

They had thought their big sister would do maybe ten times leverage at most, perhaps even just five.

Even at five times, executed well, they could still hit the 800% target.

But now it seemed they had vastly underestimated her ambition.

This was practically going to skin the other side alive.

While that might be hyperbole, deploying $30 billion in short positions would yield profits starting in the tens of billions.

Suddenly, everyone felt their vision had been too small—including lead trader Chen Mo.

This was truly mad.

If the market dropped as Miss Liu predicted, fine. But if it didn’t, at this leverage ratio, a mere 2% or 3% rise in the index would instantly liquidate their nearly $700 million—tens of billions vaporized.

Honestly, even a seasoned trader like him wouldn’t dare start with such high leverage.

Especially not when shorting that unpredictable place across the ocean.

This year, global markets were indeed rumored to be in poor shape, with major US investment banks potentially collapsing.

But could you really bet they would definitely collapse?

If the other side pulled something like a rate hike, spreading risk to other regions, short-sellers would be waiting to jump off rooftops.

Especially for offshore funds like theirs—perfect for harvesting to shore up the other side.

Liu Yutong ignored their shock. After rebirth, this might be her only chance at instant financial freedom—she naturally wouldn’t let it pass.

She would short-sell aggressively.

Fleece them thoroughly.