Chapter 19

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Translated by Heavenly Cat

Read it only at Novelbyu.com & Utoon.net

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“..”

Warning alerts were ringing from all directions.

It was the first time so many risk warnings appeared, so Section Chief Kim Sang-geon felt cold sweat flowing down his spine.

Only one thought came to his mind.

‘We’re screwed.’

Just a few minutes ago, they were all enjoying tea time with nothing to risk manage.

But due to the Chinese government’s sudden regulation announcement, selling volume explosively poured out and warning alerts came to all monitors.

“Team Leader. Wh-what should we do?”

Section Chief Kim ran first to Team Leader Sung Il-gu.

But Team Leader Sung also had a mentally broken expression.

“What can we do. Should we suspend trading? Everyone has to quickly cut losses.”

This was beyond the risk management team’s hands.

It wasn’t something that would change just because they stepped up.

Already spilled water.

How to scoop even a bit of this back is something traders need to figure out.

“We can only hope to avoid the worst situation.”

All they could do was just watch.

There was nothing they could do about a natural disaster level incident like this.

Section Chief Kim listlessly trudged back to his seat.

There was already chaos from the nickel incident before, but this was a tremendous incident incomparable to that.

They were talking about performance bonus feasts and whatnot.

This month, no, even next month they’ll just be sucking their thumbs.

“But here.”

In the ice age-like bearish market with blue lights everywhere, there was a place vigorously breathing fire.

When everyone said YES, the only person who shouted NO.

Not just someone who spoke words, but a crazy person who really bet 50 billion on bubble collapse.

“Team Leader Jeong Jin-ho.!”

It was exactly Jeong Jin-ho’s Team 7.

“..”

I blankly stared at the screen.

Until right before CSRC’s surprise regulation announcement came out, I was wavering like a swaying reed.

Even while resolving to just keep going like this.

When actually looking at charts, my heart weakened and I was worrying whether to sell even now, when the bubble burst with that one announcement.

‘Seems like chaos outside.’

The trading department that was quiet regained vitality (?).

Everyone running around and shouting like crazy people, this level of chaos seems to be the first time since joining.

“Team Leader!”

Not long after, team members swarmed into the team leader’s office.

Everyone had half-lost expressions in their eyes.

“Team Leader. H-how on earth did you know this?”

“Do you know someone in the Public Security Bureau.?”

As if.

Me, who can’t speak a word of Chinese, having connections to the Public Security Bureau.

“There’s a saying. When a mother carrying a baby on her back appears in the securities market, that’s a sign of bubble collapse.”

It was something I picked up somewhere while studying investment.

It also meant that when the market is overheated that much, the bubble will burst soon.

The problem is the Chinese market had been greatly overheated for a while.

Enough to make you forget the fact that the bubble will definitely burst.

“Even so, how did you.”

“Everyone quiet. It’s not time to question things like that. Can ordinary people like us even dare understand the Team Leader’s foresight?”

At Section Chief Seo’s rebuke, everyone started calming their excitement.

“Team Leader. Please give the next instruction. Should we hold like this? Or sell before stock prices rise again?”

I brought the mouse to the sell button.

“..”

No feeling at all.

Thinking maybe it’s because there wasn’t enough time, I waited a few minutes.

“Team Leader.?”

“Shh. He’s thinking.”

“Ah. Sorry.”

Still no feeling came.

Maybe it’s because there’s insufficient data.

“Section Chief, what do you think? Think it’ll rise again?”

“CSRC caused too big an accident. Just a few days ago, didn’t the Chinese government incite people saying they’d stick to stimulus policies to the end? But to suddenly hit us in the back like this. I think this shock won’t go away for quite a while.”

That made sense.

“What do others think?”

“It’s true the Chinese government hit us in the back, but I don’t think they expected the shock to be this big. Today alone there’s a forecast that the Shanghai stock market will fall nearly 7%, right? At this level, they’ll trigger circuit breakers or just close the market entirely.”

“The problem is China’s stock market currently has no circuit breakers. If it seems like it’ll crash more here, they’ll definitely end the market early.”

A device exists called circuit breakers that temporarily prohibits trading when the market overheats. But China’s stock market didn’t have a circuit breaker system yet.

Instead, they make the extreme choice of ending the market early.

“With a shock of this level, there’s a high probability the Chinese government will change their stance too.”

“They might release margin trading regulations again.”

“That won’t happen. Most people already got margin called and underwent forced position liquidation. They’ve crossed a river of no return.”

“Then won’t the Chinese government try to extinguish it by injecting funds themselves?”

I just quietly listened to the opinions team members endlessly brought up.

“Team Leader. The ETF price only rose as much as it fell, but put options already doubled. Should we sell immediately?”

Put options are buying rights by paying premiums.

Prices vary by expiration date, but you can always sell the rights again to others receiving premiums.

One interesting point is, while stocks usually have upper limits fixed at 15%, options had no such limits.

And that premium price already doubled.

I looked at the trading window once more just in case.

“..”

Still my feeling was calm like gentle waves.

“We’ll hold.”

Team members who left after finishing the meeting.

They held their breath at the department atmosphere that suddenly became quiet.

Before entering the team leader’s office, everyone was running around shouting roughly, right?

“Ah. China must have closed the stock market after all.”

That’s why other people were sitting blankly in dismay like defeated soldiers.

“..”

Just this morning, their appearance was exactly like Team 7 members now.

But now that timeline reversed.

Feeling conscious for no reason, they don’t know whether to cry or laugh.

“Put options side is experiencing price changes, but the other side has no reaction yet, right?”

“ETFs, we eat as much as they drop. But other places where we took shorts, seems like we need to wait a bit.”

“Right. The earthquake happened and the tsunami is just rushing that way now.”

The scary thing whenever incidents like this explode in the stock market is the aftermath.

Like tsunamis generated when earthquakes happen, a tremendous aftermath would soon sweep through the domestic stock market.

“Ah. Such a shame. If there were more put option products, the return rate would’ve been bigger than now.”

“Can’t help it. The put option products in fields we want to buy are limited. We scraped together everything available and unavailable.”

The options market has high trading volume and many products out here and there, but buying only specific field products I want inevitably has quantity limits.

One certain thing is, Team 7 purchased all put options in that field.

“But our team leader is really amazing. We bought 3 days ago, right? But that was the all-time low point. Even 2 days ago the price rose a bit.”

The days spent anxiously shedding blood hollowly were worth it.

How did he pick the low point like a ghost to execute purchases?

“That’s why they say buying is technique. The team leader knew exactly where the low point was.”

“Does that make sense? That’s really technique? From analysis?”

“There’s probably sense too, but to solidify that sense, analysis naturally has to follow. You guys know from investing too.”

That’s why it was more incomprehensible.

From timing the low point, to predicting bubble collapse, to the monster-like heart that bets 50 billion there.

Does this make sense?

“That’s what I said. That we can trust the team leader.”

Ahem, Deputy Lee Hye-rin shrugged her shoulders.

“Deputy Lee. I was really curious. When our team leader was an employee at Team Leader Park’s place. How was it then? Did he have outstanding investment sense like now?”

“Isn’t that why he got super-fast promoted?”

“Aah. I’m so curious too. Please tell us a bit, Deputy.”

“Hoho. He was amazing. Ah, where should I start? So when our team leader first did mock investment. Then he suddenly all-inned on a stock called Jungang Insurance.”

At the heroic tale the deputy unfolded, team members pricked up their ears and sparkled their eyes.

They say heroes appear in chaotic times.

In this dizzying world called the stock market, Jeong Jin-ho was a hero of chaotic times to them.

The restless sleep tonight.

Was it because of this?

KS Securities, CEO Kim Gang-hyeon still had a stiff neck.

“But there was no word about regulation announcements, right? No signs either. Even our spread information network had no word?”

“Yes. There were no signs at all. Enough to think these guys did it impulsively.”

If they’d been preparing regulations from at least a few weeks ago, word would’ve spread.

But there were no such signs.

Meaning, the Chinese government also did it before it got later when the bubble grew beyond what they thought.

“If they were going to do this, they should’ve at least leaked information. No. Other securities firms besides us, weren’t they preparing in advance? Heard anything?”

The bigger the securities firm, the faster industry news.

Their exclusively built network couldn’t be ignored either.

“Small securities firms that bet money here with leverage already got margin called. Well, we should see them as unrecoverable. Other places of some size also took serious hits.”

“Hmm. That figures. If even we, industry number 1, don’t know the information, how would other places know?”

“Yes. But CEO. Right now one strange rumor is circulating.”

“Strange rumor? What rumor?”

“3 days before the bubble burst, one securities firm bought put options in large quantities. Raw materials and steel too. They swept everything regardless of expiration date.”

“Wh-what?”

CEO Kim bulged his eyes.

“3 days ago was when it was called a bull market and on fire, right? But there were guys buying that there?”

“Yes. From the scale, it seems like a securities firm, but exactly where hasn’t been revealed.”

It was strange.

When stock prices were soaring high, sweeping away raw materials and steel put option products worth billions of units.

This meant only one thing.

“Those guys knew.”

Otherwise there was no way they’d sweep all that volume.

They definitely knew something.

“You’re sure? That there was no word leaking from the Chinese government side.”

“Yes. We confirmed several times. Even CSRC suddenly made the decision that day and slammed the announcement.”

“Then what about the guys who swept away the toilet paper? Did they use telepathy? Or called a shaman to get fortune-telling?”

“That’s.”

Someone knew this information in advance.

Otherwise why would they take all products there?

“You know too, right? In this field, information is life. We KS Securities need information second fastest after the National Intelligence Service. That’s how to maintain industry number 1. But we fall behind in that information network?”

“..”

There was a reason CEO Kim reacted sensitively.

Because this was the first time KS Securities, occupying unshakeable industry number 1, fell behind in information.

They make noise saying investment based on insider information is prohibited, but doesn’t everyone know?

That to win in the stock market, you must ultimately be ahead in information.

“Find out which securities firm.”

“I’ll find out as quickly as possible.”

The Chinese bubble burst?

Right. It’s something that can happen.

We’ll take some losses, but hadn’t we been consistently doing risk management to cushion such shocks as much as possible?

But scarier than that was the fear that someone is ahead of you.

CEO Kim felt his spine chill for the first time in a while.