In the capital market, if you say a thousand things and ten thousand, funds are the bottom line.

If you want to say that you have a big family and a big business, the National Reserve Bureau is much stronger than Dahua Industrial. Institutions such as CNPC and Sinopec often appear in a rigid image in the international oil market. They do not need bank leverage loans to buy and sell futures, and they will be delivered when they lose money. The annual output of hundreds of millions of tons of crude oil is their solid backing.

However, no leader can make up his mind to get the National Reserve Bureau, PetroChina or Sinopec to purchase a $2 billion futures contract in one go.

The responsibility is too heavy!

From the perspective of power, the significance of domestic institutions investing US$200 million in purchasing oil futures to make profits is almost the same as buying US$2 billion in purchasing oil futures to make profits. However, the meaning of 200 million in generating losses and US$2 billion in generating losses is completely different.

Zhu Enbo knows a lot about the style of state-owned enterprises. The $500 million proposed was based on the profit of $200 million. In terms of bank leverage, it is only equivalent to investing $20 million to $30 million.

With the appearance of the country, the tens of millions of dollars is indeed shabby enough. But it is quite a lot in terms of absolute quantity. So, after a brief surprise, Zhu Enbo said in disbelief: "A margin of 100 million is enough for a contract of 1 billion, but it is insufficient for a futures contract of 2 billion."

"If it is not enough, the group will consider adding a margin of US$250 million." Because Su Cheng is the boss, he can say this. Any official from the National Reserve Bureau can only work according to the established policies.

The 250 million US dollars in 1990 can no longer be considered ordinary money, but the amount of funds that the governor worships.

Zhu Enbo asked sensitively: "Does Dahua Industrial have so much capital?"

"Setan Oilfield is a new oilfield. In addition to signing some fixed supply agreements for Formosa Plastics, the newly mined crude oil enters the market freely, so the profit is relatively rich. In addition, the pipelines of Pudong's real estate and Dahua Gas Company have both received high praise from foreign banks. The financing channels are very smooth." Sucheng explained a few simple sentences.

As oil companies with extremely high cash flow, oil companies and large steel and large transportation companies are very similar. The debt ratio of 90% can operate normally, and the debt ratio of 60% will be broken by the bank. Why do you think you are so conservative? If you try it if you are a food company, a debt ratio of 40% will be forced to be collected, and a debt ratio of 25% will be said to be too unhealthy...

Zhu Enbo sighed and said to himself: If you have such a large amount of funds, you have to invest in the futures furnace if you don’t do anything...

In a blink of an eye, Zhu Enbo realized Su Zhenguo's intention to ask questions.

This is faith!

Everyone can give a reason. However, the two have different confidence in the reasons they explain.

Zhu Enbo felt that the oil price would rise, so he planned to buy more for $200 million. However, if he was asked to buy more for $1 billion, it would not work. This means that his confidence in the rise in oil was not as strong as he imagined.

Zhu Enbo kept silent, and the others stopped talking.

Su Dong was shining with his soul, and he couldn't help but compare the advantages and disadvantages of Su Xing and Su Cheng. He thought to himself: If Su Xing hadn't had a stalemate with Su Cheng, he might have a support for his business now, at least he wouldn't have to worry about capital... Maybe he could learn some skills...

Su Dongyuan finally sighed: God would have given Su Cheng's ability to Su Xing, so that the family would not be at ease now. What's the use of an illegitimate child doing such a big career? It's not good for the family. Instead, it's easy to compete...

Director Mao and Hou Haiqing admired Su Cheng very much. It is hard to speak loudly in such occasions. 1 billion US dollars is 1 billion US dollars, and 2 billion US dollars is 2 billion US dollars. In their eyes, it is already admirable that Su Cheng dared to make such a decision.

Su Zhenguo squinted his eyes, not knowing what he was thinking about.

After a long time, Su Zhenguo opened his eyes, his eyes were magnificent, and he asked: "What is the total amount of oil futures purchased at 500 million US dollars?"

"About 15 million barrels, 2 million tons." The answer was Juenbo.

"If you expect that oil prices will increase, how much money can you make?"

"If it rises above $40, the profit expectation is nearly 30%, equivalent to $150 million. If it is $50, there will be a gain of $250 million. The most important thing is that we can directly deliver oil futures to avoid oil scarcity." Ju Enbo hopes to put more attributes on his futures plan.

Su Cheng flattered his mouth and said, "China is an oil exporter. Do you still have to sell it after delivery?"

As an oil exporter, the normal futures idea is hedging, that is, buying short orders that are comparable to oil production, and buying oil prices fall. In this way, if oil rises, although short orders are losing money, oil spot rises, and there is no loss or profit. If oil prices fall and oil spot loses, but short orders produce profits, they also do not lose or profits. It sounds like hedging is useless, but in fact, it eliminates the price risks in oil production and ensures that oil producers have fixed profits.

If oil merchants want to make more money, don’t look at the rise in oil prices. They are justified by finding ways to increase production efficiency, reduce costs and increase output. This is also the main value of the futures market.

Judging from this idea, the insurance practices of the National Reserve Bureau or PetroChina are to buy declines and eliminate the risks of the Gulf War. It is only because of the confidence of Juenbo or a large number of old futures people that they will make the decision to buy rises.

At this time, the decision of the National Reserve Bureau actually deviated from its job and was in a gray area.

When discussing this aspect in person, Zhu Enbo felt a little guilty. However, thinking about the story of oil prices soaring during the second oil crisis, Zhu Enbo did not retreat after all: "Once a war occurs, the supply of oil will become extremely tight. Purchasing oil is not only a pure economic problem, but also a corresponding political and diplomatic influence should be taken into account. The more oil we have, the greater the say. Even if we re-transfer it, we can get benefits other than profits, such as exchange technology, etc. Regarding this, PetroChina and Sinopec also agreed."

Su Cheng couldn't help but smile and said, "The more oil they have, the greater the say. For the country, what can 15 million barrels of oil be? The decision is a country with a daily output of 1.5 million barrels."

Zhu Enbo said: "Maybe it can increase the contract amount."

Su Cheng immediately asked: "How many?"

"This..." Zhu Enbo could only look at Su Zhenguo and Director Mao. He could not be the home of the National Reserve Bureau, nor could he be the home of PetroChina and Sinopec.

Su Zhenguo laughed twice, but looked at Su Cheng and said, "Where is Dahua Industrial's crude oil for sale now?"

“Formosa plastics got a part of it, and the rest was sold on the market.”

"Can you give you a year to take out 15 million barrels of oil?"

"Of course, it's just our half-year output."

Su Zhenguo smiled and said to Zhu Enbo: "Since that's the case, Dahua Industrial mortgaged crude oil to the National Reserve Bureau. Isn't everyone happy? The National Reserve Bureau's crude oil reserves have increased, and Dahua Industrial has obtained more funds, which is equivalent to buying short in advance..."

Zhu Enbo was frightened. He didn't want to do this. Pure purchasing behavior and gains in the futures market are two different concepts, which reduced the value of the National Reserve Bureau in the oil battlefield.

Zhu Enbo was still considering how to refuse, and Su Cheng spoke first: "I don't really want to sell crude oil to the National Reserve Bureau. If the oil price really drops, wouldn't the National Reserve Bureau lose money? I'm worried that there will be bad remarks. My suggestion, the National Reserve Bureau will do a good job in hedging and leave the futures market to our own companies."

Zhu Enbo's face turned red and white. The state institution that does futures is actually the National Storage Material Regulation Center. A very low-key national financial institution only does financial futures. It uses the country's money and other departments' materials. For them, they do not have to bear the losses themselves, and they do lack the confidence of a unit that bears profits and losses.

Director Mao never spoke, and at this time he had to come out and said: "The comrades of the National Reserve Bureau have different directions to consider the problem. Traders of foreign financial institutions are not using their own money to trade. I think the comrades of the National Reserve Bureau will do some detailed research and strive to consider it more carefully. Dahua Industrial is responsible for its own profits and losses, and does not participate or interfere."

Su Zhenguo looked at Su Cheng with a smile and asked, "Where is Dahua?"

After talking for so long, Su Cheng also let go and said, "Everyone should do their own work and the world will be peaceful."

The job of the National Storage Material Regulation Center is to hedge. Su Cheng knew that the oil price was about to fall, of course he did not want Zhu Enbo to use US$200 million or US$500 million to prove himself. There are also Dahua’s own taxes in it.

Su Zhenguo tapped the table with his finger, pondered for a moment, and said, "Well, let's do it. Dahua Industrial wants to do oil futures, and the comrades from the National Reserve Bureau want to do it too. Just sit together and discuss more, don't be too stubborn. Learn from each other and learn from each other."

Zhu Enbo was stunned. What happened?

Director Mao has experienced this kind of thing a lot. In the era of planned economy, scientific research institutions, financial institutions and local governments have to duel countless times every year in ministries and commissions. When it is too professional or difficult to make a decision, they will put it together. In the end, those who survive will naturally receive better treatment and attention.

He coughed twice and suggested: "I will arrange some rooms in the guesthouse to let the comrades of the National Reserve Bureau and Dahua Industrial live there?"

"Yes. Send people from the CC to coordinate, don't engage in opposition, but join forces." Su Zhenguo paused and continued: "Add them to the list of policy research centers. Oil prices are inseparable from the world situation. How to solve the problems of Iraq and Kuwait? Americans open the door to discuss, and we can close the door to discuss."

Su Dongyuan's eyelids twitched. The policy research center that Su Zhenguo mentioned is the policy research center of the State Council, which is equivalent to a think tank for national leaders. In addition to professional scholars, they are cadres that the state focuses on training. In many cases, the two are still the same.

Even if Zhu Enbo has some talent, he still cannot reach the threshold of the Policy Research Center. Su Zhenguo's move is obviously to cultivate Su Cheng.

This tendency makes Su Dongyuan feel weird.
Chapter completed!