Extraordinary Genius - Chapter 21 – The excited Li Shiqiang
Chapter 21 – The excited Li Shiqiang
On the surface, this transaction had earned less than 400 RMB. However, many of bonds are bought below the market value. They had actually earned close to 10,000RMB.
Unfortunately, with so much money on hand, this 10,000 RMB did not really surprise Li Shiqiang. This is the result of two months’ worth of hard work and had used 200,000 RMB as capital. Worrying for so many hours on the train and earn less than 10,000 RMB is not really worth it. He would rather collect and redeem those maturing bonds. There is more money, less tiring and also closer to home.
Not to mention, this trip had cost quite a sum for the both of them. Li Shiqiang felt that there is no need for them to come again. If Feng Yu is able to get more foreign currencies, it would be better. Exchanging foreign currencies is more profitable.
There are fewer people on the train when they return. Feng Yu and Li Shiqiang are sitting in the lower bunk. In front of them is a roast chicken, peanuts, etc. but the both of them are not drinking.
“Brother Li, let me ask you. When you acquire Treasury bonds from people, are most of the bonds, 5 RMB, and 10 RMB bonds? But the Treasury bonds still have 50 RMB, 100 RMB, 500 RMB, 1000 RMB and 5,000 RMB. Why did you only receive five RMB and 10 RMB?” Feng Yu asked while tearing into a chicken leg.
“I am not sure too. It seems that there are lesser people willing to sell bigger face value bonds.” Li Shiqiang said while throwing a peanut into his mouth.
“You guys are earning by running errands. The five-year interest for a 10 RMB bond is 2 RMB. You give them 1 RMB extra and they will sell it to you because they are lazy to go queue at the bank. But for 100 RMB bond, the interest is 20 RMB. Do you think they are still willing to sell the bond to you and forgo 10 RMB interest?” Feng Yu asked.
“Then I can also make 1 RMB out of it. For 100 RMB bonds, I can offer them 119 RMB.” Li Shiqiang argued.
Feng Yu shook his head: “This is tying up capital you know? Cost, you understand? We should try to make full use of the money in our hands and let it circulate smoothly. For example, we can earn 1 RMB with 11 RMB and now you are trying to earn 1 RMB with 119 RMB. It may seem that you have acquired a large number of bonds but do you think our profits have gone up?”
Li Shiqiang scratched his head. It really seems to be the case. But according to what Feng Yu said, buying and selling bonds between these two places is also not reliable. For less than 400 RMB, he got to work so hard and still got to take leave from work. It is not cost-effective.
Feng Yu can tell that Li Shiqiang is having some doubts. He waved the paper with the bank’s telephone numbers and said: “Bing city will start bond trading soon. When Bing city starts trading, you call these numbers and you will understand.”
Once again, Feng Yu stand guard before midnight and Li Shiqiang takes the second half of the night. When Feng Yu wakes up, it was already time to get off.
Feng Yu did not take the bus back to his school. Li Shiqiang let him hitch a free ride with the Post office’s car and Feng Yu safely reached the school before noon.
Back at school, Teacher Sun asked Feng Yu about his relative. Feng Yu just reply that his relative had recovered and so, he came back.
The next few days, Feng Yu just attends classes. After class, he would stay back in school and ask Li Na to help him with his studies. He, in return, help Li Na with Russian.
After one week, Bing city started to allow the trading of Treasury Bonds. Li Shiqiang remembered what Feng Yu said and dialed the Shen city’s Bank of China number.
“Hello, how much is the price of the Treasury bonds now? How much did you say?” Li Shiqiang eyes opened wide and his breathing became fast.
He could not believe his ears and start calling all the numbers on the paper.
The price had risen up a lot!
Now in Shen city, the price for a 100 RMB Treasury bond had become 100.5 RMB. It is only a few days and the price had risen so much.
If he brings 200,000 RMB worth of Treasury bills there, he can make 1000 RMB per trip. This business is a lot easier and faster compared to him acquiring those small-denomination treasury bonds!
Li Shiqiang immediately takes leave from work and brought all the money to the nearby ICBC (Industrial and Commercial Bank of China). At the counter, Li Shiqiang said loudly: “I am here to buy Treasury bonds. I will buy whatever you have!”
“Young man, do you know how much Treasury bonds we have? 100,000 RMB bonds! How much do you want and how much can you buy?” The branch manager said. He really looks down on those who are arrogant because they have some money.
Li Shiqiang can’t be bothered with the manager and said loudly: “Then I will buy all 100,000 RMB treasury bonds!”
“What did you say?” The manager jumped up due to the shock. He was holding a teacup and hot tea spilled onto his hand but he could not feel anything at all.
“I said I wanted it all.” Li Shiqiang bangs on the counter and places his backpack on the counter.
Everybody turned and look at Li Shiqiang. This guy is carrying 100,000 RMB cash with him?
When Li Shiqiang took out ten bundles of hundred RMB notes, everyone in the bank is staring at him with mixed thoughts. Some envied, some are jealous and some are suspicious.
“Closed those counters and help to count these cash.” The manager said.
This era, there are money counting machines in the banks but it is not very accurate. As such, most banks are still counting manually.
Long queues formed in front of other counters. At Li Shiqiang’s counter, there are many bank staff busily counting the cash. Even the branch manager stayed there. He offered Li Shi Qiang a cigarette and lit for him.
“Young man, What are you working as?” The branch manager smiled and asked.
Li Shiqiang looks at him warily: “I am in leather goods business. I had made some money and wanted to support the country. That’s why I am buying these Treasury bonds.”
To make money from leather goods, one has to go to Southern China. This young man must have just come back from the south. The branch manager looked at Li Shiqiang carefully and thought to himself: “This young man really has good luck.”
10 minutes later, the counting of the cash was completed. Li Shiqiang also checks the Treasury bonds and kept them in his backpack.
He had brought 200,000 RMB with him. He had only bought 100,000 RMB of bonds here. He needs to find another bank to buy some more bonds.
He went to another bank and once again Li Shiqiang is the centre of attraction and the object of envy and jealousy!
Li Shiqiang took the night train to Shen city alone. He remembered Feng Yu’s instruction to get an upper bunk ticket, as it is harder for things to be stolen from the upper bunk.
Although there are very few people on the carriage, Li Shiqiang tried to endure the sleepiness but in the middle of the night, he fell asleep.
He was startled when the conductor woke him up. Seeing his bag is still in his arms, he quickly checked the bag, He breathed a sigh of relief at the sight his Treasury bonds.
Once Li Shiqiang sold all 200,000 RMB Treasury bonds, he bought a few buns and rushed back to the train station. He immediately boards the return train back. Not stopping for even a minute.
It was already evening when he reached Bing city. At the railway station, Li Shiqiang called Feng Yu at his school. After 10 minutes, Feng Yu called back. Li Shiqiang shouted excitedly: “Xiao Yu, 100 RMB had become 100.50 RMB. This trip I had earned almost 900 RMB. We are going to be rich!”
Feng Yu replied in a relaxed voice: “Calm down, Brother Li. These are just small amounts. In future, there will be more to come!”