Once their cooperation was confirmed, Iwasaki FengLong asked: "Mr. Lin, now can you tell me exactly what kind of profitable deal this is?"
"Of course!" Lin BaoCheng nodded. "It begins with my Hong Kong enterprise, Hutchison Whampoa. A few months ago, I gained control of this listed company and used its funds to invest in gold futures. Just like our joint venture, I first went long, then short — and earned quite a lot."
"Your judgment is truly impressive. A pity I didn't follow you earlier, otherwise we would have profited more," Iwasaki said, giving Lin a thumbs‑up. Then, puzzled, he asked: "But Lin, since you knew gold would adjust, why didn't you short with all your funds? That part of your investment must be losing heavily now."
"I believe in gold's long‑term rise. I couldn't be 100% sure about the correction, so I only shorted with a small portion, ready to flip long again at any time," Lin explained. Then he turned to the main point: "The investment with Hutchison's funds is profitable. But only a few know I flipped from long to short. Many shareholders think I lost money, so they're selling stock and shorting Hutchison. What we must do is buy Hutchison shares cheaply, go long, and crush the shorts."
Iwasaki asked: "Lin, what's Hutchison's market cap now? And how much profit have you made?"
He elaborated: "If the company's market cap is high but profits aren't significant, it won't be a strong positive. If shorts have deep pockets, they can still suppress the price despite good news."
With enough capital, shorts can ignore positives, keep selling, and drive the price down. That is the power of capital.
"Hutchison's market cap is just over HK$2.5 billion," Lin said. With shareholders selling, the price had dropped again.
"I first went long with USD 150 million, using five‑times leverage, and earned about USD 31 million. Then I flipped short, financing USD 750 million at USD 195.75 per ounce. Now gold has fallen to around USD 173 — nearly 12% down — yielding about USD 87 million profit."
"Together, that's nearly USD 120 million. And since gold is still falling, I haven't closed the position — more profit is possible."
"Let's count it as USD 120 million. After fees, interest, and taxes, about USD 90 million remains. Converted to HKD, that's roughly HK$380 million."
"A company worth HK$2.5 billion suddenly gains HK$400 million profit. Iwasaki, isn't that a major positive? Won't Hutchison's stock rise? Do we have any chance of losing?"
"This is almost risk‑free," Iwasaki laughed. He was convinced this long strategy would succeed.
Lin continued: "I personally hold 49.9% of Hutchison shares. I won't sell a single one. Other shareholders have limited stock to sell. As long as we prepare enough funds to absorb supply, we needn't fear price suppression."
"Lin, hearing this, I feel reassured," Iwasaki said with a smile.
Lin nodded: "To avoid surprises, I hope you can prepare USD 200 million immediately. Best if it's transferred to Hong Kong today, so we can act tomorrow."
"No problem, I'll arrange it at once," Iwasaki replied. Visible profit was too good to miss.
Lin didn't try to detain him, watching him leave. He wasn't worried Iwasaki might act alone. Without Lin, the major shareholder, it couldn't be done. If Lin revealed the truth publicly, funds would flood into Hutchison instantly, and short positions would vanish.
Outside, Lin met MaoLi Haruko, who took him to the villa. On his last trip to Japan, Lin had given her money to buy a villa in Tokyo. She lived there normally, and Lin stayed when visiting.
At the villa, Lin asked Haruko to massage him. After more than ten hours on a plane, he was exhausted. Under her hands, he soon fell asleep.
Around 8 p.m., Lin awoke. Haruko told him Iwasaki had called a few hours earlier: the USD 200 million was already transferred to Hong Kong, and Iwasaki himself had gone there. Lin could contact him directly upon arrival.
For such a profitable deal, Iwasaki was eager. Moreover, he hadn't used Mitsubishi Bank's funds — he had borrowed from his father, interest‑free. All profits would be his.
Lin said nothing more. After dinner, he gave Haruko a gift he had brought from America, wishing her an early happy birthday.
Her birthday was two days away, but Lin would return to Hong Kong the next morning and couldn't be there. So he gave it in advance.
Haruko was delighted. She hadn't expected Lin to remember and prepare a gift.
If gold hadn't already fallen to USD 173, Lin might have taken her to Hong Kong. But since he planned to close shorts and flip long at USD 170, Tokyo's futures needed Haruko's watchful eye, ready to act on his orders.
In America, Isabella oversaw operations. In London, Pacers Securities had traders in place. Lin had arranged everything.
The next morning, Lin flew back to Hong Kong with his bodyguards. Because it was an early flight, he arrived before 9 a.m. Instead of going to the exchange, he went straight to Hutchison Whampoa.