Chapter 481: Floating Profit of Over 300 Million USD

Ma Tengdong was stunned by Chairman Xia Yu's reaction. He hadn't said anything particularly positive—mostly focusing on Sunrise's poor conditions—so he was puzzled as to why Xia Yu seemed pleased.

Xia Yu noticed Ma Tengdong's confusion but chose not to explain. After all, it was difficult to explain; could he tell Ma Tengdong that Sunrise would become incredibly wealthy in the future thanks to Mobile Suit Gundam? It was better to leave Ma Tengdong to figure it out on his own, which would also enhance Xia Yu's sense of mystery and authority.

Thus, Xia Yu directly instructed, "Tengdong, I have a task for you. Find out the asset situation of Sunrise as soon as possible and acquire the company. The cost can be higher, but as long as we can acquire it, it's acceptable!"

Ma Tengdong was momentarily stunned, then quickly became excited. "Understood, Chairman!"

In his view, this was a chance for him to strengthen his position. Although Sunrise's development was poor now, it was undeniable that the company had many talented animators, many of whom were trained by the "God of Manga" Osamu Tezuka. Their abilities were definitely not lacking, and they would be a significant asset to Jiuding Animation Co., Ltd.

Moreover, Sunrise had been specializing in animation production for six years, meaning they had a comprehensive talent pool. Acquiring them would be a strong complement to Jiuding Animation.

With the Chairman's generous terms, the difficulty of the acquisition was significantly reduced.

How could he not be excited?

Thus, Ma Tengdong resolved to seize this opportunity and acquire Sunrise.

Afterward, Xia Yu left with Li Qian and others to the central district of Tokyo. This time, they weren't looking for Wang Qi and others but were headed to the temporary station of the Galaxy Fund in Tokyo.

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Due to the Galaxy Fund's four funds all focusing on the Island Country's foreign exchange market, only a few employees were left to gather information on international crude oil and London gold markets. Liu Xiao and the other eight team leaders had all come to Tokyo.

Upon Xia Yu's arrival, he was warmly welcomed by Liu Xiao and others.

Without much small talk, Xia Yu got straight to the point, inquiring about the state of the Island Country's financial market and the actual progress of Liu Xiao and the others' work.

Currently, Tokyo's foreign exchange market was not as internationally significant as those in London and New York; it was only a regional market.

This was due to the Island Country's heavy reliance on export trade, which meant fluctuations in foreign exchange had a significant impact on the national economy. If there was a shortage of foreign exchange, it would lead to an increase in foreign exchange rates, a drop in the yen exchange rate, and the risk of rising domestic prices.

To prevent exchange rate fluctuations, the Island Country government had to implement certain market intervention measures. This was the balancing management of the foreign exchange market in the Island Country.

Due to various restrictions and market capacity, the Tokyo foreign exchange market had relatively simple trading options, mainly USD/JPY and GBP/JPY.

Although the variety was limited, the USD/JPY pair was exactly what Xia Yu needed and was currently the most traded. Since Island Country's exports were settled in USD, the USD/JPY transactions accounted for over 90%.

"Chairman, due to funding issues, to obtain as much leverage as possible, our Fund No. 1 has approached four foreign exchange banks, using leverage ranging from 40 to 50 times. As of October 15, we have fully entered the market, and the latest USD/JPY index is 226.856, with a floating profit of 134 million USD."

Liu Xiao, the leader of the first group, reported first. Despite his typically calm demeanor, he couldn't hide his excitement when mentioning this figure.

Upon hearing this, Xia Yu smiled, even though he had anticipated it.

He even regretted that only 40 to 50 times leverage was used. If they had used 100 or 200 times leverage, it would have been extraordinarily profitable!

But that was just a thought. High leverage involves various considerations, such as whether the market can absorb it, whether the foreign exchange banks can handle it, and whether large amounts of funds can be safely moved.

Liu Xiao had probably taken these factors into account, distributing the two hundred million Hong Kong dollars across four banks, with financial leverage not fixed.

The foreign exchange market was very different from the stock market.

Using ten times leverage in the stock market is already high. Achieving 100 times leverage is extremely difficult due to the high risk, with few banks willing to offer it, especially with large sums of money.

In the stock market, even a 1% fluctuation can wipe out investors' capital. If the fluctuation reaches the regulatory threshold, banks may not be able to liquidate positions in time, leading to significant losses.

In contrast, the foreign exchange market often has fluctuations to the third decimal place. High leverage is needed to amplify returns to noticeable levels.

Foreign exchange market financial leverage ranges from 20 to 800 times. In the future internet era, with easier data fluctuation regulation and faster technology, many speculators are willing to offer 100 to 500 times leverage, and traders are willing to use it.

However, in the current era, leverage is generally set below 100 times, with unfamiliar clients often below 50 times, with adjustments for large amounts of funds.

The reason foreign exchange banks and institutions can offer such high financial leverage is because the foreign exchange market is so large.

For example, in the future, the global securities market has a daily trading volume of about 300 billion USD, while daily foreign exchange trading volume reaches nearly 60 trillion USD.

Even though Tokyo's foreign exchange market is only a regional market, it is the largest foreign exchange market in Asia.

After Liu Xiao's report, Fund No. 2 Manager Xue He continued, "Chairman, Fund No. 2 also approached four foreign exchange banks, using 40 to 50 times leverage as well, with a current floating profit of 98.3 million USD."

"Chairman, our Fund No. 3…"

"Chairman, our Fund No. 4…"

Then, Fund No. 3 Manager Song Yang and Fund No. 4 Manager Li De provided brief updates.

Xia Yu calculated in his mind, and the total floating profit of the Galaxy Fund's four funds had reached 374 million USD.

Finance truly lived up to its reputation as a money-making industry!

Of course, the most important thing was that Xia Yu knew about a rare opportunity in the Island Country's foreign exchange market. During normal times, making a profit of one or two million USD in the same period while ensuring capital preservation would be impressive!

Now, it was like picking up money!

If they stopped operations now and converted the yen into USD, they would walk away with 374 million USD.

Considering that the Hong Kong dollar exchange rate is currently fixed, Xia Yu could avoid the negative impact of USD fluctuations, converting everything to Hong Kong dollars to strengthen his position in Xiangjiang.

However, whether or not to do this would depend on the actual situation.

After listening to the reports, Xia Yu encouraged everyone and then, accompanied by Liu Xiao, quickly learned about the Island Country's financial industry.