Chapter 623 Losses Magnified

"Chen Feng, stop playing coy; I'm dying of impatience."

Qin Yan deliberately pinched Chen Feng.

"Mayor Qin, I plan to use business tactics to ruin Wan Jing. As I said, I don't offend unless offended. If offended, I will strike back."

Chen Feng said with a calm expression.

"You're not going to use political means, but business means? That's a good idea. The problem is, Lida Group isn't a small company..."

Qin Yan's eyes blazed with brilliance.

"Whether it's a big company or a small company, they all have one weakness: greed. As long as Wan Jing is inwardly greedy, things will be easy to handle."

Chen Feng said confidently.

"I don't quite understand the stratagems of the business world. Please elaborate."

"It's simple. We'll use benefits to make Wan Jing lose himself, and then strike decisively."

"Won't that cost a lot of money?"

Qin Yan asked tentatively.

"Not a lot of money, but a huge sum. Wan Jing isn't a small boss, but a big boss. Ordinary petty gains won't disrupt his mind."

"Chen Feng, it sounds a bit scary to me. What if Wan Jing takes your benefits but doesn't fall for the trap? Wouldn't that be a complete loss?"

Qin Yan asked with a worried look.

"Don't worry. In this world, no one can keep their composure in the face of immense profit. As the saying goes, whom God would destroy, he first makes mad."

Chen Feng explained confidently.

"Will you handle this yourself, or will Li Hongling handle it?"

Qin Yan asked tentatively.

"Li Hongling has indeed remarkable business talent, but she doesn't have enough experience in the world. Wan Jing is a jack-of-all-trades in business, and Li Hongling is no match for him. I have to go myself."

Chen Feng explained calmly.

"Chen Feng, forgive me for saying something you might not like to hear, but your experience doesn't seem sufficient either. Wan Jing has dominated the provincial capital's political arena for over a decade; he can be considered an old fox. Perhaps it would be better if you found some seasoned veterans to help."

Qin Yan advised Chen Feng.

For a businessman to become a red-crowned official, they are absolutely not simple.

Whether it's in terms of social etiquette or political connections, they are top-notch.

Chen Feng, a young man not yet thirty-five, going into a life-and-death struggle with an old fox, seemed incredibly dangerous.

"Mayor Qin, please believe me. To be honest, if I can't even handle one Wan Jing, how can I become the top leader of Da Jiang City in the next few years?"

Chen Feng replied calmly.

"But..."

Qin Yan wanted to explain further, but Chen Feng smiled and left.

Regarding dealing with Wan Jing, there was no time to delay.

After leaving Qin Yan, Chen Feng flew directly to Seikoku Country.

Wan Jing is an old fox. If Chen Feng used his domestic companies to set a trap, Wan Jing would likely notice.

However, if he used his foreign companies, Wan Jing definitely wouldn't discover it.

"Chen Feng, why have you come to Seikoku Country?"

Kashiwaya Meizi joyfully leaped into Chen Feng's arms.

"I want to discuss with you how to drive a boss to jump off a building."

Chen Feng got straight to the point.

"For you to personally get involved, this boss should not be a small one."

Chen Feng explained Wan Jing's situation in detail.

"Chen Feng, listening to you talk about Wan Jing, I feel he's a big boss, not only rich but also cunning. This matter requires caution, or you might be backfired."

Kashiwaya Meizi advised Chen Feng.

"Wan Jing is indeed difficult to deal with, otherwise, I wouldn't be making this trip myself. However, no matter how difficult it is, I must eliminate Wan Jing. Otherwise, any cat or dog will come to trouble me in the future, and how can I remain in the political arena?"

Chen Feng said with a serious expression.

"But the problem is, the working capital of your companies in Seikoku Country isn't much either. How can you counter Wan Jing?"

Kashiwaya Meizi sighed deeply.

"That's simple, leverage."

Chen Feng replied confidently.

"Leverage? I don't understand."

Kashiwaya Meizi was stunned.

Over the years, she had managed Chen Feng's companies in Seikoku Country and her progress had been rapid, feeling she had surpassed her father's level.

However, after a brief chat with Chen Feng today, she felt Chen Feng's progress was even faster.

Without exaggeration, the gap between them was growing wider.

"You understand stock margin financing, right? Some people play stocks, and then there are specialized companies that advise these stock traders to use their stocks as collateral to finance their stock trading. Once the stock value drops, they take advantage of the opportunity to seize both the stocks and the funds of the stock traders, causing them to lose everything. This is what's called leverage."

Chen Feng explained calmly.

"You mean, lure Wan Jing into trading stocks?"

Kashiwaya Meizi asked tentatively.

"Wan Jing is a seasoned business fox. Given his nature, he wouldn't play stocks, especially Chinese stocks. Smart people know that the Chinese stock market is not a real stock market; it's more like gambling. In gambling, you lose nine times out of ten."

Chen Feng continued to explain.

"If that's the case, then how exactly do you plan to do it?"

Kashiwaya Meizi asked with great curiosity.

"It's simple. I plan to use futures leverage to ruin Wan Jing."

Chen Feng said calmly and collectedly.

"Futures leverage? I still don't understand."

Kashiwaya Meizi felt dizzy.

She originally thought that after years of managing Chen Feng's companies and making him a lot of money, her business talent had opened up. But then, in front of Chen Feng, she felt like an idiot.

"Let me explain briefly what futures leverage is. Futures and options leverage, to put it plainly, is the reciprocal of the margin. For example, if the margin is 5%, then the leverage for that future is 20 times. Leverage amplifies profits and losses. The actual profit and loss ratio of an investor's position is equal to the percentage of market fluctuation multiplied by the leverage. Therefore, the risk in futures trading is very high. The formula for calculating futures leverage is: Leverage = 1 ÷ Margin Rate. For example, the exchange margin rate for iron ore is 8%, so the leverage for iron ore is 1 ÷ 8% = 12.5, a 12.5 times leverage. Assuming the price of iron ore is 700 yuan per ton, and one lot of iron ore is 100 tons, then the value of one lot of iron ore is 700 * 100 = 70,000 yuan. An investor trading one lot of iron ore needs to pay a margin of 70,000 / 12.5 = 5600 yuan. Simply put, futures leverage deliberately amplifies the investor's profits and losses. Of course, when I trap Wan Jing, I will definitely not amplify Wan Jing's profits; I will amplify Wan Jing's losses. Once Wan Jing's futures losses are amplified, he will be absolutely bankrupt. For a business magnate like Wan Jing, once bankrupt, he can only jump off a building. With Wan Jing dead, no one will secretly trouble me anymore."

Chen Feng explained patiently.

"Chen Feng, the problem is, Wan Jing is a shrewd person. How can you make him willingly fall into your trap?"

Kashiwaya Meizi asked tentatively.

"This requires extremely strong business acumen, the ability to capture the most sensitive changes in the futures market. To put it plainly, it's being able to see futures that others think will rise but will actually fall."

Chen Feng said calmly.

"Appearances suggest a rise, but a fall in reality? How can such futures be identified? Honestly, if one had such an ability, wouldn't they be rich?"

Kashiwaya Meizi asked, feeling dizzy.

"It is indeed difficult, which is why I came to Seikoku Country to find you. The Chinese futures market is not playable; it's too obvious, and Wan Jing, being a seasoned business fox, can smell something fishy right away. The best approach is to use the Seikoku Country futures market. You are a local of Seikoku Country, and you should know the specific situations of various commodities in the Seikoku Country futures market better than I do. As long as you tell me the specific details of the commodities in the Seikoku Country futures market, I can analyze which commodity future appears to be rising but will actually fall."

Chen Feng said confidently.