Chapter 19
Chapter 19
Translation: Godtl
"..."
Warning alarms were blaring from all directions.
This was the first time risk alerts had gone off to this extent, and Manager Kim Sang-geon could feel cold sweat trickling down his spine.
Only one thought flashed through his mind:
'We're fucked.'
Just minutes ago, there had been nothing to risk-manage, and everyone had been enjoying teatime.
But with the Chinese government's sudden regulatory announcement, sell orders exploded across the board, triggering warning alerts on every monitor.
"Team Leader! Wh-what do we do?"
Manager Kim was the first to rush to Team Leader Seong Il-gu.
But even Seong looked like he'd completely lost his composure.
"What can we do...? Should we halt trading? Everyone needs to cut their losses fast at this point."
This was beyond the Risk Management Team's control.
There was nothing they could do to change the situation.
The milk was already spilled.
It was up to the traders to figure out how to scoop up even a little of what was lost.
"Let's just pray we avoid the worst-case scenario."
All they could do was watch.
There was nothing anyone could do against a disaster of this magnitude.
Manager Kim trudged back to his seat, drained.
The nickel incident had already caused an uproar, but this was incomparably worse.
All that talk about performance bonuses and celebrations...
This month—no, probably next month too—they'd be left sucking their thumbs.
"But over here—"
Amid the ice age of a bear market where everything was flashing red, there was one place still burning bright.
The only one who'd shouted NO when everyone else was saying YES.
Not just empty words—this madman had actually bet 500 billion won on the bubble's collapse.
"Team Leader Jeong Jin-ho...!"
It was Jeong Jin-ho's Team 7.
＊＊＊
"..."
I stared blankly at the screen.
Right up until the CSRC's surprise regulatory announcement, I'd been wavering like a reed in the wind.
One moment I'd resolve to ride it out to the end, but the next, looking at the charts would weaken my resolve, making me debate whether to sell now. Then that single announcement burst the bubble.
'Sounds like all hell's breaking loose out there.'
The quiet trading department had regained its... liveliness (?).
People were running around screaming like madmen—I'd never seen such chaos since joining the company.
"Team Leader!"
Before long, the team members came pouring into my office.
They all had that half-crazed look in their eyes.
"Team Leader! H-how did you know this would happen?"
"You don't... have connections with the Ministry of Public Security, do you?"
As if.
I can't even speak a word of Chinese—no way I'd have connections there.
"You know what they say. When mothers start carrying babies on their backs to the stock market, that's the sign of a bubble about to burst."
It was something I'd picked up somewhere while studying investing.
It meant that when the market gets overheated to that extent, the bubble is bound to burst.
The problem was, the Chinese market had been severely overheated for a long time now.
So much so that people had forgotten the simple fact that bubbles always burst.
"But even so, how could you possibly—"
"Everyone, quiet. This isn't the time for that. How could ordinary people like us dare to comprehend Team Leader's foresight?"
Section Chief Seo's sharp rebuke began to calm the excitement.
"Team Leader, please give us your next instructions. Should we hold? Or sell before prices rise again?"
I hovered my mouse over the sell button.
"..."
No feeling.
Maybe I needed more time. I waited a few minutes.
"Team Leader...?"
"Shh. He's thinking."
"Ah, sorry."
Still no feeling.
Maybe I didn't have enough data.
"Section Chief, what do you think? Will it go back up?"
"The CSRC really screwed up this time. Just days ago, the Chinese government was insisting they'd maintain their stimulus policies to the end, rallying people. And then they stab everyone in the back like this... I think this shock will linger for a while."
That made sense.
"What do the others think?"
"It's true the Chinese government stabbed us in the back, but I doubt anyone expected the shock to be this severe. Today alone, the Shanghai stock market is projected to drop nearly 7%, right? At this rate, they'll either trigger circuit breakers or just shut down the market entirely."
"The problem is, the Chinese stock market currently has no circuit breakers. If the crash worsens, they'll definitely close early."
When markets overheat, there are mechanisms like circuit breakers to temporarily halt trading. But the Chinese stock market still lacked such safeguards.
Instead, they resorted to the extreme measure of shutting down trading entirely.
"Given the scale of this shock, there's a high probability the Chinese government will reverse its stance."
"They might even lift margin trading restrictions again."
"That won't happen. Most have already been hit with margin calls and forced to liquidate their positions. We've crossed a river of no return."
"Then wouldn't the Chinese government try to stabilize the situation by injecting funds themselves?"
I quietly listened to the relentless stream of opinions from my team members.
"Team Leader. The ETF price has only rebounded by the exact amount it fell, but put options have already doubled. Should we sell immediately?"
Put options involve paying a premium to purchase rights.
Their prices vary by expiration date, but you can always sell those rights to others for another premium.
One interesting aspect is that while stocks typically have a fixed upper limit of 15%, options have no such ceiling.
And those premiums had already doubled.
Just in case, I checked the trading screen again.
"..."
My intuition remained calm, like still waters.
"We're holding."
＊＊＊
The team members emerged from the meeting.
They held their breaths in the suddenly quiet office atmosphere.
Hadn't everyone been shouting and running around wildly just before entering the Team Leader's office?
"Ah. Looks like China finally shut down their stock market."
That explained why others sat dazed like defeated soldiers, staring blankly.
"..."
Just this morning, those very people had mirrored Team 7's current state.
But now, the tables had turned.
The awkwardness made me unsure whether to laugh or cry.
"The put options are fluctuating, but other areas aren't reacting yet?"
"With ETFs, we profit exactly what others lose. But we'll have to wait for the short positions elsewhere."
"True. The earthquake just hit, and the tsunami's only now rushing toward them."
The terrifying thing about market crashes was always the aftermath.
Like tsunamis following earthquakes, an enormous shockwave would soon batter domestic markets.
"Ah, what a shame. If there'd been more put option inventory, our returns would've been even higher."
"Can't be helped. The put options in our target sector had limited supply. We scraped together everything available."
While the options market has high trading volume and diverse products, selectively purchasing specific sector options naturally faces supply constraints.
One thing was certain—Team 7 had bought up every last put option in that sector.
"But our Team Leader... truly remarkable. We bought three days ago, right? At the absolute historical low. The price had already risen slightly two days ago."
Our days of draining our souls in emptiness had borne fruit.
How had we miraculously timed the purchase at the precise lowest point?
"This is why they say buying is an art. The Team Leader knew exactly where the bottom was."
"Does that make sense? As actual skill? Based on analysis?"
"Instinct plays a part, but solid analysis must back that instinct. You investors should know that."
Which made it even more incomprehensible.
From pinpointing the bottom to predicting the bubble's collapse—and that monstrous courage to stake 50 billion won on it.
Does this even make any sense?
"I told you so. You can trust our Team Leader."
Assistant Manager Lee Hye-rin cleared her throat and shrugged her shoulders.
"Assistant Lee, I've been really curious. When our Team Leader was working under Team Leader Park, what was he like back then? Did he already have such incredible investment instincts?"
"That's probably why he got promoted so quickly, right?"
"Ugh, I'm dying to know. Just tell us a little, Assistant Manager."
Hehe. "He was absolutely extraordinary. Ah~ where should I even begin? Well, when our Team Leader first started mock investments, he suddenly went all-in on a stock called Central Insurance..."
As Assistant Lee spun her heroic tale, the team members perked up their ears and their eyes sparkled.
They say heroes emerge in turbulent times.
In this chaotic stock market battlefield, Jeong Jin-ho was their hero of the troubled era.
＊＊＊
No wonder I had such restless dreams last night.
Kim Kang-hyun, CEO of KS Securities, was still rubbing the back of his stiff neck.
"But there was no word about regulatory announcements, was there? Not even a hint. None of our informants said anything either?"
"No. There wasn't the slightest indication. It almost seems like they acted on impulse."
If they had been preparing these regulations for at least a few weeks, word would have gotten around.
But there was absolutely no sign of it.
Meaning, even the Chinese government realized their bubble had grown larger than they anticipated, so they acted before it was too late.
"If they were going to do this, they should've at least leaked some information. Wait—were other securities firms preparing for this? Have you heard anything?"
The larger the securities firm, the faster they get industry news.
Their exclusive information networks couldn't be underestimated.
"Smaller securities firms that leveraged their money here have already been hit with margin calls. Frankly, they're beyond recovery. Even mid-sized firms are taking serious hits."
Sigh. "Of course. How would anyone else know information that even we, the industry leader, didn't?"
"Right. But, CEO, there is one strange rumor going around."
"A strange rumor? What rumor?"
"Three days before the bubble burst, one securities firm bought up a massive amount of put options. Specifically in raw materials and steel. They swept up everything, regardless of expiration dates."
"W-what?"
CEO Kim Kang-hyun's eyes widened.
"Three days ago? That was when the market was soaring! And there were people buying those then?"
"Yes. Judging by the scale, it must have been a securities firm, but no one knows exactly which one."
It was bizarre.
While stock prices were skyrocketing, someone swept up billions in put options for raw materials and steel.
There was only one thing this could mean.
"Those bastards knew."
There was no other explanation for why they'd buy up all that volume.
They must have known something.
"Are you sure? There wasn't any leak from the Chinese government?"
"Yes. I checked multiple times. Even the CSRC made the decision suddenly and announced it the same day."
"Then what about those who swept up those scraps of paper? Did they read minds? Or did they summon a shaman to divine the future?"
"Well..."
Someone had known in advance.
There was no other way they would have bought up all that supply.
"You know this too, right? In this business, information is life. After the National Intelligence Service, KS Securities should be the fastest with information. That's how we stay number one in the industry. But now we're lagging behind in our own game?"
"..."
There was a reason CEO Kim Kang-hyun reacted so sharply.
This was the first time KS Securities, the undisputed industry leader, had been outmaneuvered in information.
Sure, they all loudly proclaim that insider trading is forbidden—but everyone knows the truth.
To win in the stock market, you have to stay ahead in information.
"Find out which securities firm it was."
"I'll do my best to track it down quickly."
The Chinese bubble burst?
Fine. It happens.
We'll take some losses, but we've been doing risk management to mitigate shocks like this.
But what was truly terrifying was the fear that someone was ahead of him.
For the first time in a long while, CEO Kim Kang-hyun felt a chill run down his spine.