Chapter 93: Creating a Trading Opportunity
Lin Haoran already had a rough plan in mind for profiting from the upcoming Second World Oil Crisis.
Based on memories from his previous life, he knew that oil prices would remain relatively stable until sometime before December. However, once the Iranian Civil War broke out, global oil production would plunge dramatically, triggering a sharp surge in crude oil prices.
It was already the end of October.
Only a few days remained before November arrived.
Time was running out, and the window he had to prepare was rapidly closing.
After spending the entire day handling company affairs, it was time to head home and get some rest.
The remaining issues could wait until tomorrow.
Thus, Lin Haoran left with Li Weidong and Li Weiguo and returned directly to Hengfeng Building.
After enjoying a good night's sleep, Lin Haoran did not head to Qingzhou Yingni the next morning.
Instead, he stayed at Universal Investment Company.
At nine o'clock, Su Zhixue, Dai Shi, Zhao Lin, and the rest of the staff gradually arrived at the office.
Naturally, they had all heard that Lin Haoran had become the Chairman of Qingzhou Yingni.
As soon as they saw their boss, they stepped forward one after another to offer their congratulations.
Once everyone had arrived, Lin Haoran gathered the entire trading team in the conference room.
"Everyone already knows that I've become the Chairman of Qingzhou Yingni."
"This achievement wouldn't have been possible without all of your hard work and dedication."
"So, as a token of my appreciation, I've decided to award everyone a special bonus this month."
"Dai Shi, Han Zixing, Shi Zhensheng, and Qi Fen will each receive a HK$50,000 bonus."
"As for Su Zhixue, who has led our trading team exceptionally well, he'll receive a HK$100,000 bonus."
"The bonuses will be paid together with this month's salary."
Lin Haoran announced the news with a smile.
Although these outstanding traders had merely carried out his instructions, it was precisely because of their professionalism and effort that he had successfully gained control of Qingzhou Yingni.
They deserved credit for the accomplishment.
Therefore, the rewards were well deserved.
The conference room instantly erupted with excitement.
The five traders could barely contain their joy.
For them, the unexpected bonuses were an enormous surprise—far beyond what they had ever expected from their normal jobs.
Such generous bonuses were almost unheard of at other investment firms.
Yet here, they had earned them simply because one project had succeeded.
To many of them, HK$50,000 represented an entire year's salary at their previous workplaces.
Now...
It was merely an additional reward for completing a single project.
The contrast made them appreciate even more how fortunate they were to work at Universal Investment.
At that moment, Lin Haoran noticed something.
Their loyalty levels had all increased.
Previously, Dai Shi's loyalty had been 75, while the other three ranged between 70 and 72.
Now, every one of them had surpassed 80.
Dai Shi: Loyalty: 84/100
Han Zixing: Loyalty: 82/100
Shi Zhensheng: Loyalty: 81/100
Qi Fen: Loyalty: 82/100
It seemed that appropriate rewards truly were one of the best ways to increase loyalty.
As for Su Zhixue...
His loyalty had already been maxed out.
Naturally, it couldn't increase any further.
"Thank you, Mr. Lin!"
The five of them spoke almost simultaneously, their gratitude obvious.
Lin Haoran smiled.
"You've earned these bonuses through your own hard work."
"As long as you continue working with me, I guarantee your wallets will become fuller and fuller."
"And there will be countless more opportunities waiting for you in the future."
"Mr. Lin, we won't let you down!"
"We'll work even harder!"
The team members enthusiastically expressed their determination.
"Very good."
"I have complete confidence in all of you."
Lin Haoran nodded with satisfaction before turning toward Su Zhixue.
"Zhixue, come to my office."
"I have something I'd like to discuss with you privately."
"Understood, Mr. Lin."
Su Zhixue immediately stood and followed Lin Haoran into the chairman's office.
After taking their seats, Lin Haoran looked at him seriously.
"Zhixue, you've worked in the financial industry for many years."
"You should have a solid understanding of developments in the global financial markets, shouldn't you?"
Su Zhixue nodded thoughtfully.
"Yes, Mr. Lin."
"Although most of my work has been based in Hong Kong, I've always kept a close eye on the world's major financial markets."
"That's a basic requirement for anyone in our profession."
"Only by keeping up with global developments can we survive in this constantly changing industry."
Lin Haoran nodded before changing the subject.
"In that case..."
"How much do you know about crude oil futures?"
Su Zhixue frowned slightly as he searched his memory.
"Crude oil futures..."
"As far as I know, there still isn't an officially established crude oil futures market anywhere in the world."
"After the 1973 oil crisis, several futures exchanges began considering petroleum-related futures products."
"But up until now, even major exchanges like the London Commodity Exchange and the New York Mercantile Exchange haven't launched crude oil futures."
"As for the smaller exchanges..."
"They haven't entered that field either."
"So crude oil futures don't exist yet..."
"That makes things a little troublesome."
Lin Haoran muttered quietly.
In truth...
There really were no crude oil futures during this period.
Not only crude oil futures—
There weren't even futures contracts for any petroleum-related products.
According to the historical development of oil futures, it would not be until 1983 that the New York Mercantile Exchange (NYMEX) officially introduced crude oil futures trading.
The following month—November 1978—NYMEX would issue its very first energy-related futures contract, namely a contract for heating oil.
However, since it was only beginning and covered a very limited petroleum product, trading volume would remain relatively small.
Trying to make a fortune through that contract alone would be virtually impossible.
Lin Haoran lightly tapped his fingers against the desk in a steady rhythm while thinking.
Without crude oil futures...
Was he supposed to buy massive quantities of crude oil and store them?
That was certainly one option.
Purchase crude oil now...
Then resell it after the oil crisis drove prices sky-high.
But although feasible, it was hardly an ideal solution.
First...
There simply wasn't enough time to make adequate preparations.
Second...
He lacked both the facilities and the distribution channels needed to store large quantities of crude oil.
For someone who had never entered the petroleum industry...
That obstacle was enormous.
"It seems..."
"I'll have to find another approach."
Lin Haoran silently abandoned the idea of stockpiling crude oil for the time being.
Instead, he began considering other strategies that could allow him to profit indirectly from the coming oil crisis.
Sitting in his office chair, his brows furrowed tightly, countless thoughts raced through his mind.
The financial markets of this era seemed filled with limitations.
Time and again, he was forced to devise entirely new ways to achieve his goals.
The last time, he had wanted to use leverage in the stock market.
That way, he wouldn't have needed to keep running around securing bank loans.
Unfortunately...
Stock exchanges during this era still hadn't introduced margin trading.
As a result, he had been forced to design an intricate financing strategy himself.
By repeatedly borrowing against existing assets through a cycle of loans, he had eventually raised enough capital to make substantial profits from both Qingzhou Yingni and Wharf Holdings.
"If crude oil futures haven't been invented yet..."
Lin Haoran leaned back in his chair, deep in thought.
"Then..."
"Could I create something that functions like crude oil futures?"
"A trading opportunity of my own?"
(End of Chapter)
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