Chapter 40: The Butterfly Effect
Although Chen Hao had not known Xiang Zhiqiu for long, in his previous life, he had gained a deep understanding of the man. He was certain that Xiang Zhiqiu was someone who valued his reputation above all else. Since Xiang had already reached a cooperation agreement with him, it was unlikely that he would unilaterally break it. Moreover, Xiang Zhiqiu was an intelligent man; he would certainly recognize Chen Hao’s exceptional stock trading prowess. Any smart person would not sacrifice a long-term partnership for a fleeting, minor gain. If Xiang wanted to make more money, he would have to maintain a good relationship with Chen Hao. Therefore, Chen Hao was not worried about the agreement being broken.
"I hope so," Nina said, still looking a bit uneasy. Remembering what Chen had mentioned earlier about a "major bottom-fishing" opportunity, she asked curiously, "What exactly did you mean by that?"
"It means that the Hong Kong stock market is currently in a slump—a bear market," Chen Hao explained. "Once the stock prices hit rock bottom, we can buy in at the lowest possible cost. Then, when the market rebounds, we sell everything we’ve accumulated."
"Oh! I see," Nina nodded, half-understanding. She then asked, "When do you plan to start this major bottom-fishing?"
"My initial projection was that the Hong Kong market would bottom out by the end of June," Chen Hao said thoughtfully. "But the situation has changed."
"What’s changed?" Nina asked quickly.
"Because of the rapid, short-term trading I’ve been doing, the traders at Xiangshang Securities have caught on. They have been mirroring my trades. On top of that, Mr. Xiang entrusted me with 400 million in capital today. While 400 million isn't much in the grand scheme of the entire Hong Kong market, the sheer speed and frequency of my trades have created a massive volume of capital flow. This has triggered changes in the market; many stock prices are starting to climb, and the overall trading volume is increasing. By my estimate, the market will hit its bottom much sooner than expected. It will shift from a bear market to a bull market soon, so I have to move up the timeline for our bottom-fishing."
"So, your actions have effectively altered the future trajectory of the Hong Kong stock market?" Nina mused.
"It would seem so," Chen Hao nodded. In truth, he had anticipated this. As a reborn soul with the foresight of his past life, his very existence was like a butterfly effect—a variable that was bound to change the original path of history. Just as his presence had caused Nina to retire from the entertainment industry early, altering the cast of films she would have starred in, and had severed the fate between her and Jet Li, his current financial maneuvers were shifting the market.
"Chen Hao, you’re incredible! You’ve actually changed the direction of the market," Nina said, looking at him with admiration.
"It’s not that I’m incredible; it’s simply an inevitable result," Chen Hao explained. "You’ve studied economics; you know that prices fluctuate based on supply and demand. As I use larger amounts of capital to buy into a stock, the demand rises, driving the price up. When I dump a large amount, it sends a negative signal, causing others to hold their cash and wait, which shrinks demand and drops the price. Anyone operating with this much capital at this speed would trigger a similar chain reaction. It’s unavoidable."
"I understand," Nina said. "But I still think you’re extraordinary. No one else could maintain your speed, nor could anyone else maintain a 99% success rate over so many trades." In her eyes, Chen Hao was nothing short of a god.
After finishing dinner, the two spent time on the balcony enjoying the night view. Once their meal had settled, they practiced a session of Baduanjin qigong together. As for whether Chen Hao engaged in "a thousand rounds of combat" with Nina that night to prove his physical prowess, only the two of them would ever know.
Over the next few days, Chen Hao continued his aggressive, high-frequency trading with the capital provided by Xiang Zhiqiu, finishing on Friday. By the end of the week, the 400 million had grown to 1.52 billion. In just a few days, Chen Hao had earned Xiang Zhiqiu a profit of 1.12 billion. According to their agreement, Chen Hao was entitled to 560 million. Furthermore, under Chen’s guidance, Nina’s account had grown from an initial 370,000 to 88.69 million—a profit of 88.32 million, of which 44.16 million belonged to Chen Hao. However, given their current relationship, they no longer distinguished whose money was whose.
With the market closed for the weekend, Chen Hao decided to take a well-deserved rest. He felt as drained as if he had been hollowed out after five consecutive days of battle in the stock market.
"Exhausted, aren't you?" Xiang Zhiqiu said with a smile, patting Chen Hao on the shoulder. "Go get some rest. I'll take you somewhere special tomorrow night."