Chapter 824: Panic at Sheffield Company!

London City Center. Sheffield Steel Company Branch!

In the conference room, more than a dozen company executives were in a meeting.

When the exchange sent a notice stating that all margin deposits from the long side had been fully settled, they were required to immediately prepare for physical delivery in accordance with the rules.

Upon receiving the news, the executives of Sheffield United Steel Company panicked and immediately gathered to discuss a strategy.

“Sandy, it looks like we’re facing a short squeeze this time. The other side is well-prepared, and we have no way out!” said Wood, the company’s deputy general manager, with a sigh.

General Manager Sandy said with a grim expression, “If they want spot delivery, so be it. We can scrape together over 12 million tons of steel—if necessary, we’ll buy it on the open market at a premium!”

“But the most important thing right now is to settle things with those troublemakers at the company and resume production as soon as possible. Otherwise, even if we manage to resolve this squeeze, there’s no guarantee we’ll be able to avoid the next one!”

Another deputy general manager, Ward, frowned and said, “But the workers’ demands are too excessive. A 20% pay raise would place a massive burden on the company. If we agree to their terms, we won’t be able to justify it to the board.”

“Besides, you know that this year’s rise in steel prices is due to the war. Once the war ends, prices are bound to drop, but once wages go up, they’re hard to bring back down.”

Sandy paused briefly before saying, “This strike has already cost us at least over a million tons of steel production. If we don’t resume production as soon as possible, the consequences will be unimaginable.”

“I think we should bring this up for discussion at the board meeting. Otherwise, I’m worried the shareholders might have objections!” said Wood.

“I agree that it’s best to bring this to the board,” Ward chimed in.

Sandy sighed and said, “Those board members are all about money and bickering—not a single one of them gets anything done. If this goes to the board, it won’t be resolved for at least a week.”

“Sandy, we all understand what you mean. But once the board discusses it, whatever happens will be a collective decision—and no one will be held accountable if something goes wrong later…”

Wood didn’t finish his sentence, but Sandy understood—he was protecting himself and the company’s top brass.

After a long pause, Sandy finally said, “Let’s put the resumption of production on hold for now. We need to focus on resolving the short squeeze first!”

Wood immediately replied, “I checked with the factory this afternoon. The company still has at least 7 million tons of steel in stock, and the current shortfall is just under 6 million tons. My suggestion is to immediately purchase steel from the market!”

“Alright, Ward, the sales department is under your command. I’m putting you in charge of this. No matter what, you must secure 6 million tons of steel within three days!” Sandy said in a stern voice.

“Yes, sir!”

“Ward, we have a batch of contracts expiring in early June. Find out who holds these short positions, contact them as soon as possible, and do your best to redeem these contracts!” Sandy said gravely.

“Alright, I’ll contact Mr. Shilidan at the exchange right away!” Ward replied.

“Go ahead!”

Sandy then turned to his secretary and said, “Alice, notify the board members immediately. They are to report to the company for a board meeting tomorrow morning. No one is to take a day off!”

“Yes, sir!”

After issuing the orders, Sandy announced the meeting was adjourned.

Once everyone had left, Sandy sat alone on the sofa, his face clouded with worry.

As the company’s leader and a seasoned business executive, he could already sense a looming crisis.

Over the past two months, the company had sold off a total of 1.3 million short contracts, amounting to 3,250 tons of steel—equivalent to nearly two years’ worth of their production!

They weren’t unaware of the risks involved, but they had always believed they had everything under control—after all, their company was the largest steel supplier on the London Metal Exchange, and the exchange was essentially in cahoots with them.

Over the years, they had consistently manipulated steel prices on the exchange; it was simply impossible for them to lose money.

Most importantly, Sandy’s older brother served as a high-ranking commander in the Imperial Army—the commander of an entire fleet.

Before the war began, her brother had analyzed the situation for her, concluding that the Empire was certain to win and that it wouldn’t take long.

Therefore, Sandy was well aware that the current steel prices were merely temporarily inflated; once the war ended, prices would inevitably fall.

That’s why they planned to sell more short positions while prices were high to lock in as much profit as possible. Even if there wasn’t enough physical delivery later, they could still make a killing by buying back their short positions at the high prices.

But he never expected to face a short squeeze by the bulls in late May—this was a real problem.

His only hope now is that the remaining short positions aren’t held by the very people behind this squeeze; otherwise, he’s in deep trouble.

But Sandy isn’t Chinese, so he’s never heard the saying, “Good luck never comes, but bad luck always does!”

Besides, he didn’t know his opponent. If he’d known Li Yi beforehand and understood his investment style, he wouldn’t have been so complacent…

……….

Over the next two days, Sheffield Steel began frantically buying up all available steel on the market.

But to their horror, they discovered that steel was in extremely short supply on the market.

Even the major retailers and building material suppliers had very little steel left in stock at this point.

After two days of scrambling, they had managed to acquire only 1.2 million tons—a shortfall of over 5 million tons from the 12.8 million tons required for delivery.

More importantly, the price of spot steel had risen much more sharply than futures prices, with the price per ton approaching £330—more than ten pounds higher than the futures price per ton.

This discovery left Sheffield Company stunned. They had previously noticed significant volatility in spot steel prices but had assumed it was a natural rise influenced by the futures market, so they hadn’t paid it much attention.

After all, the company’s primary business had shifted to the futures market, and with substantial spot inventories in the market, they believed this would have no impact on the futures market.

But now they’ve discovered that someone in the market is hoarding massive amounts of spot steel.

To have that much money and not invest it in the stock or futures markets, but instead invest in spot steel—that person must either be out of their mind or have an ulterior motive.

It’s certainly not a case of insanity; the only plausible explanation is that the other party has ulterior motives—and those motives likely involve forcing the steel company into a corner.

If they succeed in forcing a delivery, the consequences for their company would be catastrophic.

At that point, the exchange will have to buy back the contracts held by the long positions at market prices, and the steel company will be responsible for covering those costs—the contract holders will suffer no losses.

Furthermore, the exchange will require them, as the short sellers, to pay hefty fines and penalties, typically amounting to 15%–30% of the total value of the goods to be delivered.

Given their company’s situation, if all 30 million-plus tons of short positions were required to be physically settled, it would be impossible to gather that much cargo in such a short time, making default almost inevitable.

Moreover, at market prices, the total value of these contracts exceeds 12 billion pounds.

Using this as the basis for penalties, the maximum fine could reach 3 billion pounds.

It was easy to imagine that, hit with this combination of blows, their company would inevitably go bankrupt.

Realizing the gravity of the situation, Sandy and his colleagues panicked completely. No longer concerned with saving face, they immediately made distress calls to the company’s major shareholders.

It was only then that the major conglomerates, including the Sassoon family, realized that Sheffield United Steel had quietly caused them such a massive disaster.

Although each of them was so furious they wanted to skin Sandy, Wood, and the others alive, that was a matter for later; for now, they had no choice but to find a way to help them resolve the crisis.

Subsequently, members of the Sassoon family began leveraging their connections to buy up steel stocks everywhere, even going so far as to ship spot cargo from the European mainland.

At the same time, they dispatched senior family members to negotiate with the contracting party.

As one of the family’s key heirs being groomed for succession, and since he happened to be in London at the time, this crucial task naturally fell to him…

……….

London Futures Market. Super VIP Room!

Dawson listened with a furrowed brow as Smith reported the situation. When he learned that Li Yi’s people were secretly dumping copper and aluminum futures contracts, he was completely stunned.

“Smith, are you certain it’s them selling the futures contracts? You didn’t misread the data, did you?”

“Mr. Dolsen, the woman in charge at Star Company is the one placing the orders. She’s plump and petite—very easy to spot. I’m certain of it!” Smith said with absolute confidence.

“That’s impossible. Where did they get the contracts… I mean, when did they enter the market?” Dolsen snapped.

“Well…”

No wonder Dolsen was so shocked. Ever since Li Yi arrived in London, his men had been secretly monitoring the guy.

But what he hadn’t expected was that, over the past month or so, the man hadn’t set foot in either the stock or futures markets even once.

His chubby manager had brought people along a few times, but each time they’d only come to look around—they hadn’t made any trades or contacted any brokers.

So, Dolsen and his team had always assumed Li Yi was biding his time, waiting for the right opportunity to enter the market.

When Li Yi appeared at the futures market today, he assumed the man had finally spotted a business opportunity and was ready to make his move.

At the same time, Dolsen was preparing to pool his funds to target Li Yi. He had been on a roll lately, raking in nearly 800 million pounds in just a month—a whopping 13.6 billion Hong Kong dollars.

He was now brimming with confidence, having completely shaken off his previous slump.

In short, Dolsen felt he was back on top!

Moreover, he was confident that on his home turf, Li Yi had no chance of outmaneuvering him.

However, what he never could have imagined was that Li Yi wasn’t there to enter the market today—he was cashing out… exiting!

It was then that Dolsen finally figured it out: Li Yi hadn’t been sightseeing all this time just biding his time—he’d actually quietly entered the market long ago, and Dolsen hadn’t even known it.

“Crack!”

An elegant coffee cup was smashed violently onto the floor, shattering into a thousand pieces in an instant.

It took a long while before Dolsen managed to suppress his rage. He then turned to an elderly man standing beside him and said, “Third Uncle, find out when this Chinese businessman acquired the copper and aluminum contracts. Also, check what else he’s invested in besides copper and aluminum.”

The elderly man nodded and immediately picked up the phone beside him to make a call!

At that moment, a beautiful blonde woman standing beside Dowson spoke up: “Young Master Dowson, what should we do now? Should we try to drive down the price of copper and aluminum?”

“No need. You don’t understand that guy. Once he decides to cash out and exit the market, it means the prices for copper and aluminum have basically peaked. There’s no point in us entering the market now to try to undercut them!”

Dawson then added, “Tina, you’ve been investing in the futures market for years and have a wider network than I do. Keep an eye on this group for me. I have a feeling something big is about to happen!”

Although Tina didn’t understand why Dolsen placed such importance on these Easterners, she always obeyed her master’s orders without question. She nodded immediately and said, “Yes, Master. I promise that not a single move they make in the futures market will escape our notice!”

“Very good…”

Meanwhile, Li Yi had no idea he was already under Dolsons watch. He was still in the VIP lounge, reading the newspaper and waiting for news.

Of course, given his personality, he wouldn’t have cared even if he had known.

After all, they were already cashing out and exiting the market; one could say the outcome was already decided.

Never mind a mere Dolsen—even if the family behind him stepped in personally, it wouldn’t do them any good.

……..

Two days later!

Over the course of two full days, Pang Feiyan, Liang He, and their team successfully sold off all 120,000 copper futures contracts and 179,000 aluminum contracts.

According to calculations, their average purchase price for copper was 1,578 pounds per ton, and the average selling price was 1,840 pounds per ton, resulting in a profit of 786 million pounds.

The purchase price for aluminum was 1,167 pounds per ton, and the average selling price was 1,380 pounds per ton, yielding a profit of 954 million pounds.

In other words, from their investments in copper and aluminum alone, they made a pre-tax profit of 1.74 billion pounds.

At the same time, Zhang Qiusheng and his team submitted an application for physical delivery to the exchange, demanding that three short sellers—including Sheffield United Steel Company—deliver 12.8 million tons of steel.

At this point, Li Yi’s squeeze battle had taken its second step!

According to his estimates, the first phase of the squeeze would involve at least four steps.

In addition to the first step of recouping funds and the second step of applying for physical delivery, the process would still require at least two more steps: margin calls and either contract buybacks or physical delivery!

Sure enough, shortly after the spot delivery request was submitted, representatives from Sheffield United Steel Company approached Li Yi and his team, hoping to redeem their short contracts at current market prices.

This is standard practice in the futures market: when short sellers lack sufficient physical goods for delivery, they have no choice but to buy back the contracts at market price or at a premium.

However, much to the frustration of Sheffield United Steel, Li Yi—who held the largest position—resolutely rejected their offer. Even when they offered a 5% premium, he refused, insisting on physical delivery.

Suddenly, the pressure shifted entirely to Sheffield United Steel!

Upon learning that the long side insisted on physical delivery, Sheffield United Steel Company immediately began to feel the heat.

After all, their contracts maturing in late May totaled over 15 million tons, yet the company’s physical inventory stood at just over 7 million tons.

In other words, if all the long positions demanded physical delivery, they would face a shortfall of at least 8 million tons of steel.

Fortunately, the company had already contacted some institutions and retail investors, who had agreed to allow them to redeem the contracts at current market prices.

The problem, however, was that while these institutions and retail investors were numerous, the contracts they held amounted to a mere 2 million tons or so, while the remaining 12 million tons were in Li Yi’s hands.

Knowing that the other side was determined to demand physical delivery, Sheffield Company had no choice but to scramble to source steel while simultaneously contacting the institutions, requesting that they require the long positions to post additional margin—and, in an unprecedented move, raising the margin call rate to 30%.

It is important to note that margin calls in the futures market generally occur under two circumstances: one is when an investor incurs significant losses, and brokers or financing institutions, concerned about capital risks, require the investor to post additional margin.

The other is when physical delivery is involved; short sellers, concerned about settlement issues with the goods, demand additional margin. Sheffield Company fell into the latter category.

However, margin calls of this nature usually do not exceed 20%, and typically amount to only 10%.

Now they are demanding that Li Yi immediately top up 30% of the margin—which is, to put it mildly, an unreasonable demand, bordering on unfair.

But there’s nothing to be done about it. This is London, and as the most important partner in the futures market, the exchange has actually agreed without hesitation to the unreasonable demands put forth by Sheffield Steel.

You have to admit, playing on home turf gives you a “damn” big advantage!

Soon, Li Yi and his team received a notice from the brokerage: Given the enormous value of the contracts maturing this time, the exchange was requiring Li Yi’s side to post a margin equal to 30% of the total contract value, with a deadline of three days.

If the margin wasn’t deposited within three days, their contracts would be forcibly liquidated by the exchange and re-entered into the market.

The people at Sheffield United Steel were also taking a gamble. After all, Li Yi and his team held 12.8 million expiring contracts with a total value of over 4 billion pounds; a 30% margin requirement amounted to 1.213 billion pounds.

In other words, Li Yi and his team would need to raise 1.213 billion pounds within three days before the institution would arrange for the short sellers to make physical delivery.

1.2 billion pounds is no small sum, and Sheffield United Steel was betting that Li Yi and his team could not possibly come up with 1.2 billion pounds in the short term.

But Li Yi, who had already laid a trap, was not about to let them have their way. When he set the trap, he had anticipated all of Sheffield Company’s backup plans—including the margin call.

Immediately afterward, Li Yi ordered his team to deposit the 30% margin.

When the news reached them, the executives at Sheffield Company were instantly dumbfounded…

……….

On May 14, London’s renowned newspapers, The Times and The Oxford Gazette, simultaneously published a report as their front-page headlines!

The headline was incredibly eye-catching: “The Lies Behind the Victory: Is the British Empire’s Army Really Invincible?”

According to the information revealed in the report, several days earlier, the Sheffield, one of the Navy’s most important vessels, had already been sunk by the Arab forces.

Furthermore, during previous combat operations, Helicopter No. 3, which took off from the county-class destroyer “Anshun,” and Wessex Helicopter No. 5, which took off from the “Chaoquan,” were shot down by the Afghan military, resulting in the deaths of all personnel on board—a devastating loss.

More importantly, although various media outlets are currently reporting that British forces are fighting bravely and driving the Afghan army into retreat, in reality, the troops have only captured the small island of South Georgia, with no other progress to speak of.

This report casts doubt on the British military’s achievements from start to finish, alleging that they are exaggerating their victories and deceiving the public.

The influence of The Times and The Oxford Gazette in the British Isles is equivalent to that of the People’s Daily and Global Times in China.

With both newspapers covering the story simultaneously, it naturally garnered significant public attention.

That very day, large crowds took to the streets, demanding that the government provide an explanation.

As a result, the steady decline in London’s stock and futures markets came to an abrupt halt, followed by a slight uptick.

On the morning of the 15th, the Iron Lady, the female Prime Minister, gave a media interview at her official residence at 10 Downing Street, directly addressing the questions raised by The Times and the Oxford Gazette.

In her response, the Iron Lady stated that the Sheffield missile destroyer had indeed been struck by an Indian missile and caught fire; the reason this had not been made public earlier was primarily because the warship had not sunk and was still worth salvaging and repairing.

However, she also noted that the fire had now been extinguished, the ship was aground, and it was no longer worth salvaging.

The implication of her remarks confirmed the fact that the Sheffield had sunk…

When addressing the downing of the helicopter, the Iron Lady explicitly stated that the aircraft was not shot down, but crashed on the glacier due to dense fog.

As for the claim that the military had not captured any valuable targets on the Falkland Islands, the Iron Lady explained that the troops’ most important task at present was to counter the Argentine counterattack, and she frankly stated that as long as the Argentine counterattack was repelled, capturing the Falkland Islands would be a piece of cake…

Overall, the Iron Lady’s response was very candid, but the public simply wasn’t buying it.

She explained the reasons, but the public heard only the results: the guided-missile destroyer sank, the helicopter crashed, and the islands were not captured!

To many people, this was tantamount to the military falsifying battle results and the government deceiving the public.

In an instant, the people across the British Isles were enraged, taking to the streets to protest against the government and demand answers.

Chaos reigned across the island…

As a result, defense stocks and commodities like metals in the stock and futures markets reversed their previous downtrend and skyrocketed!

On May 15, the price of steel officially broke through the £300 per ton mark, while copper reached £1,819 per ton and aluminum hit £1,315 per ton.

Just one day later, steel prices rose another £10, while copper and aluminum prices also saw slight increases.

Meanwhile, the delivery date for the first batch of steel in the contracts acquired by Li Yunbao and his team was fast approaching.

Li Yi knew the time had come to make his move!

……….

Monday, May 24!

At 8:00 a.m., accompanied by Li Yunbao, Zhou Xinghua, Zhang Qiusheng, Pang Feiyan, Liang He, and others, Li Yi walked through the gates of the London Metal Exchange for the first time.

Their arrival startled Dolsons and his associates, but otherwise went unnoticed by others.

Upon arriving at the VIP lounge they had reserved in advance, Li Yi immediately sent someone out to scout the situation while also having several copies of major newspapers brought in.

When Li Yi saw the news reports in the papers about public protests, the government struggling to cope, and the nation in an uproar, he couldn’t help but let the corners of his mouth turn up slightly.

Indeed, the skeptical reports in the papers were all planted by him, and he had personally written that particular article, which Yunbao had translated.

To ensure this report spread across the British Isles as quickly as possible, Li Yi had spent a full one million pounds bribing newspapers, magazines, and media figures.

As for the content of the newspaper reports—specifically regarding the sinking of the Sheffield missile destroyer—the actual events did indeed unfold much as the Iron Lady had described.

However, it cannot be denied that the military did intentionally withhold certain information.

The missile destroyer was attacked on May 4 and sank in international waters on May 10 while being towed by the HMS Yarmouth, becoming a grave marker.

Yet they failed to report it in a timely manner; even when the Iron Lady responded, she did not mention sinking but referred to it as running aground—a distinction that inevitably gives rise to all sorts of speculation.

In the past, the government faced widespread public skepticism precisely because of this incident.

However, since they delayed the announcement until June—by which time the war had already ended and Argentina had been defeated—the matter eventually fizzled out after a brief uproar.

Now, Li Yi has simply brought this matter to light ahead of schedule. Given the perfect timing, it’s unlikely that the female prime minister will be able to sweep this under the rug as easily as she did in the past.

As for those two helicopters, it was indeed true, as the female prime minister explained, that they crashed due to heavy fog—it was Li Yi who deliberately claimed they had been shot down.

It was also true that the British had failed to capture the Falkland Islands, and the reason was exactly as the Iron Lady had stated: it was related to the operational plans of the frontline troops.

But who cares about any of that? What the public wants to see—or rather, what they’re seeing right now—is that warships were sunk, yet the government chose to cover it up; helicopters crashed, yet the government didn’t inform the public!

So they feel they’ve been duped, and they’re furious!

Just then, a bell suddenly rang outside—the signal that the market was opening.

Hearing the bell, Li Yi immediately put down the newspaper he was holding.

Just a few minutes later, Zhang Qiusheng and Zhou Xinghua returned with the latest news.

As soon as they entered, Zhang Qiusheng reported: “Mr. Li, the opening price for steel has reached 7,900 pounds per lot, which works out to 316 pounds per lot!”

“Copper is at 46,000 pounds per lot, which works out to 1,840 pounds per ton; aluminum is at 34,500 pounds per lot, which works out to 1,380 pounds per ton!”

Zhou Xinghua chimed in, “The price of steel has also risen sharply, reaching 324 pounds per ton. If we were to sell off all our steel holdings right now, we could make a direct profit of 1.4 billion pounds!”

“We can’t sell!”

Li Yi then ordered directly, “Feiyan, Lianghe, split up immediately and start selling off all our copper and aluminum contracts. But remember, you must sell in small batches—don’t cause panic in the market!”

“Yes, sir!”

“Manager Zhang, immediately tally up how many of our futures contracts are about to expire. Once you’ve confirmed the quantity, apply to the exchange for physical delivery!” Li Yi ordered again.

“Yes!”

After everyone had received their orders and left, Zhou Xinghua looked at Li Yi and asked, “Mr. Li, what should we do here?”

Li Yi smiled and said, “Nothing. Just wait!”

“Wait… wait for what?”

“We’ll wait for those steel companies to come knocking, then demand exorbitant prices and really squeeze them!”

Li Yi knew full well that the short squeeze battle had already begun. While this round might not necessarily bring Sheffield Steel down, it would certainly inflict heavy losses on them.

However, this was only the first round. Even if they successfully weathered this round of short-squeezing, the second batch of contracts would soon reach their expiration date, followed by a third round.

Given Sheffield Steel’s current state, there was no way they could hold out. There was only one outcome awaiting them—bankruptcy!

After deducing that Sheffield United Steel had been dumping a massive number of short positions to cash out, Li Yi didn’t rush into action. Instead, he continued to have his people investigate the situation at other steel companies.

He didn’t know until he looked into it, and what he found was shocking.

It turned out that Sheffield United Steel wasn’t the only one liquidating short positions; nearly every steel company—no, every metal company—in the entire London Metal Exchange was doing the same.

That said, while some companies were liquidating short positions to raise cash, they still exercised some restraint, keeping the volume of short positions they sold roughly in line with their own production capacity.

Such companies, even if faced with a short squeeze by long positions, could mostly weather the storm unscathed, with minimal losses.

However, Sheffield’s volume of short positions was far too large, completely exceeding their production capacity. In fact, Li Yi believed they had never intended to make physical delivery from the very beginning.

This is because Li Yi had someone look into Sheffield United Steel’s trading activity over the past few years and was surprised to discover that, every so often, Sheffield Steel would leverage its dominant position in the British steel industry to manipulate steel prices.

The tactic was exactly as it is now: first, they would spot an opportunity for steel prices to rise and sell off large quantities of futures contracts to cash out.

When the market became saturated, far from stopping, they would sell even more contracts as soon as prices dipped slightly, driving steel prices down to rock bottom.

Once futures prices had been thoroughly driven down, they would buy back contracts to ensure they had sufficient physical stock for delivery.

Over the past few years, they have easily raked in over a billion pounds using this method.

Consequently, while United Steelworks of Sheffield remains nominally the largest steel producer in the British Isles, it is effectively transforming into a financial firm.

Precisely for this reason, they pay little attention to the company’s production capacity; in fact, when steel prices were at an all-time low two years ago, they shut down three blast furnaces in succession, directly reducing the company’s production capacity by one-third.

After all, when you can make money effortlessly in the financial markets, who would want to work hard at production?

If the need ever arises, they can simply purchase steel from other companies.

But what they don’t realize is that any single misstep in the financial markets could plunge the company into an abyss from which there is no return.

In his previous life, Li Yi had seen far too many large companies like Sheffield that played with fire and ultimately got burned—both domestic and international.

Take the once-famous Zhuzhou Nonferrous Metals Company, for example. They also engaged in margin trading on the London Metal Exchange, shorting massive amounts of zinc futures contracts—positions far exceeding their established trading plan.

At the time, Zhuzhou Nonferrous didn’t realize that from the moment they began shorting, they had been targeted by a world-renowned futures trader, who joined forces with other institutions to launch a full-scale “short squeeze” against them.

Before the scheme was exposed, Zhuzhou Zinc had already dumped 800,000 tons of zinc onto the market—a figure that far exceeded its annual production capacity of a mere 300,000 tons.

After the incident, although the state intervened comprehensively—taking emergency measures such as cutting losses, calling for margin calls, and reasonably adjusting delivery dates while simultaneously mobilizing supplies from other zinc plants through various channels to organize delivery—efforts were made to minimize losses.

However, due to the sheer scale of the short positions, Zhuzhou Metallurgical was ultimately forced to buy back some contracts at high prices to close out positions and fulfill delivery obligations. This resulted in losses of up to $176 million—equivalent to 1.459 billion yuan—over the final three days of concentrated position liquidation.

Other examples include AVIC Oil in 2004, State Reserve Copper in 2005, Zhonglian Oil in 2008, and Qingshan Nickel in 2022…

None of these companies had a market capitalization smaller than Sheffield Steel, yet they still fell victim to attacks by financial giants in the futures market, and almost none managed to escape unscathed!

Sheffield Steel is now completely mired in this situation; turning the tide against the odds is virtually impossible—even government intervention wouldn’t help!

However, Li Yi cannot force a delivery now either, as a long squeeze requires certain conditions.

First, the contracts must reach expiration; second, it must be confirmed that the opposing party cannot physically deliver the goods; and finally, one’s own side must have sufficient margin.

Only when the contracts reach expiration can one apply to sell the contracts or request physical delivery; if the opposing party has sufficient steel reserves, the squeeze will not succeed.

Furthermore, when physical delivery is chosen, the exchange will require the long side to post additional margin.

After all, most futures contracts today involve leveraged trading, often requiring only 10% to 20% margin—which is essentially just a down payment.

If you choose to sell the contract, that’s no problem.

However, if you want physical delivery, you must deposit additional funds; otherwise, you would be acquiring goods worth several times the value with only a fraction of the capital—which is impossible.

Furthermore, a squeeze requires a trigger!

Soon, the first opportunity arose.

In late April, the British Navy successfully arrived in the waters off the Falkland Islands and soon engaged in fierce combat with the Argentine Navy.

On April 25, the Argentine submarine Santa Fe was spotted by a helicopter from the HMS Anchor and attacked with depth charges, causing it to run aground and lose its combat capability.

Subsequently, the crew of the Santa Fe used the submarine’s remaining power to beach it on a breakwater near South Georgia Island, then went ashore to surrender to British forces, who subsequently regained control of South Georgia Island.

Upon retaking South Georgia, the British commander on the front lines immediately sent a victory report to London: “To Her Majesty: The military ensign now flies alongside the national flag over the skies of South Georgia. God save the Queen.”

The Iron Lady, the Prime Minister, promptly released the good news to the media, vividly describing it as “a celebration for the whole world”…

Upon receiving the news, the entire British Isles erupted in celebration, but the mood in the stock and futures markets turned somewhat delicate.

The smoother the front-line troops fought, the more likely the war would end early; and once the war ended early, metal prices would inevitably fall.

Affected by this, some retail investors holding contracts began to feel uneasy and immediately started selling off their contracts to cash out.

In just a single day, prices for various metals on the London futures market plummeted by 8%.

However, since the major financial conglomerates remained inactive, prices did not spiral out of control.

But good news from the front lines kept coming in one after another. First, the Argentine Air Force attempted to take out the British Royal Navy’s aircraft carrier but ultimately failed; instead, the British Royal Navy successfully completed its blockade of the waters around the Falkland Islands.

At this point, the Argentine forces on the Falkland Islands were cut off, having essentially lost all contact with the mainland.

Immediately following this, on May 2, the Argentine Navy’s cruiser General Belgrano entered the combat zone, where it was relentlessly pursued and blockaded by British submarines. Ultimately, the General Belgrano was sunk just off its home port, resulting in the deaths of 323 Argentine crew members.

As a series of victories poured in, everyone believed that Argentina was on its last legs and that the war would soon be decided.

Consequently, the London Metal Exchange saw a second wave of cash-out selling. This time, some institutions also joined in dumping contracts, causing prices for various metals to plummet.

Just then, a massive number of short positions in steel suddenly appeared on the market, the sheer volume of which shocked everyone.

Everyone assumed that a major player was cashing out and exiting the market, and soon some traders couldn’t hold on any longer and began selling off their contracts en masse.

In just a few days, prices for various metals on the London futures market continued to fall.

Steel was particularly hard hit. In early May, steel futures were trading at 7,236 pounds per contract, equivalent to 288 pounds per ton.

However, in just nine days, by May 10, the price had plummeted to £235 per ton.

While it wasn’t quite a rock-bottom price, at the very least, many institutions that had entered the market later were already starting to lose money.

Upon investigation, Li Yi discovered that the majority of the short positions that had appeared were created by Sheffield Steel. They were resorting to their old tricks again, preparing to crash the market and reap profits from the long positions.

As long as steel prices were driven low enough, Sheffield Steel could buy back the short positions they had sold—meaning they wouldn’t have to physically deliver the metal. The difference in price would be pure profit!

Seeing that the timing was right, Li Yi made his move…

………..

The British Isles have four distinct seasons, and in April, London is transitioning from winter to spring, with temperatures gradually rising.

Although the occasional light rain was a bit annoying, Li Yi was thoroughly enchanted by the city in full bloom. Famous flowers such as cherry blossoms, azaleas, and tulips could all be admired during this season.

Upon arriving in London, Li Yi did not, as everyone had imagined, dive headfirst into the futures or stock markets.

Over the past few days, under the protection of Zhang Ziqiang, Zhou Wen, and others, he has been freely exploring this city, which holds special significance in European history.

Every day, they drove through the streets and alleys of London, stopping to take photos in front of every landmark worth visiting.

Occasionally, just like ordinary tourists, they would visit parks, gardens, and nature reserves to admire the beautiful natural scenery.

They even made special trips to Detroit and Sheffield to watch flower shows and parades; anyone unaware of their true purpose would have assumed they were simply here on vacation.

Li Yi’s casual and seemingly unprofessional behavior left Dolsons and others, who were constantly monitoring his movements, completely baffled.

These foreigners were baffled—everyone knew this was a rare opportunity; the sooner you invested, the sooner you could cash in on the market.

Although the guy was physically present, he didn’t seem the least bit rushed. This left Dolsons and his team both baffled and on high alert.

This time, Dolsen and his team had raised a massive 1.5 billion pounds from Hong Kong and returned to London with Smith and the others.

To salvage the face he’d lost in Hong Kong, he’d even specially brought over a dozen experienced elite members from his family to assist him.

This time, he was determined to succeed and vowed to redeem himself!

However, out of respect for Li Yi—and that lingering fear he refused to admit—Dawson did not overlook him.

He knew Li Yi would certainly not miss this investment opportunity, and besides, the man had personally confirmed he would be coming to London.

Sure enough, the very next day after he arrived in London, Li Yi showed up as well.

Upon learning that Li Yi had arrived in London, Dolsen was overjoyed—not only because he no longer had to worry about that guy causing trouble for them in Hong Kong.

More importantly, London was his home turf; the influence of the Sassoon family and their allied European financial groups here was beyond imagination.

Don’t be fooled by the fact that the guy had 60 billion Hong Kong dollars in his pocket—converted to pounds, that was only about 4 billion. While they might be able to run rampant in Hong Kong, in London, and indeed throughout Europe, they were nothing more than slightly larger ants!

As long as Li Yi dared to invest here, Dowson believed that with the Sassoon family’s clout in this part of the world, they had plenty of ways to deal with this despicable fellow.

So, upon learning that Li Yi had arrived in London, Dowson immediately had people keep a close eye on him.

In his own words, he wanted to know every single move Li Yi and his team made in London.

However, to his surprise, once Li Yi arrived, he seemed to let loose completely, indulging in nonstop sightseeing.

He hadn’t set foot in a single market in days; every day was either spent sightseeing or on his way to sightsee.

Anyone unaware of the situation would think they’d actually come here on vacation!

But the more Li Yi acted this way, the more uneasy Dolsen felt.

In his eyes, Li Yi was like a venomous snake lurking in the shadows, ready to spring out and strike the moment they let their guard down!

What he didn’t know, however, was that Li Yi was acting this way simply because he was bored out of his mind and had absolutely nothing to do.

They did indeed have over 60 billion Hong Kong dollars at their disposal, but 57 billion of that had already been invested by Li Yunbao and his team.

Moreover, most of the money he had earned on Hong Kong Island had been used to acquire Hang Seng Bank, and the remainder was needed to keep Starry Company running.

So even if Li Yi wanted to invest in the stock or futures markets now, he simply didn’t have the funds to do so.

By the way, Li Yunbao and his team did still have 200 million pounds on hand, but that was set aside for emergencies.

After all, once the futures delivery date arrives, if they choose to take physical delivery rather than simply selling the contracts, they’ll need to top up their margin—they can’t get by without setting some money aside.

But clearly, Dolsons and the others were unaware of this, and could only speculate over and over again about what exactly Li Yi was waiting for!

In the blink of an eye, half a month had passed!

Since the British Navy’s hastily assembled fleet was still en route to the Falkland Islands, although the two nations were technically at war during this period, there had been no actual combat between their forces.

Of course, this was understandable. After all, this was a war between two nations separated by over 14,000 kilometers—just thinking about it was a headache, so even the most bizarre events seemed entirely plausible!

Over the past fortnight, London’s futures and stock markets remained red-hot, with prices soaring for all war-related companies, commodities, resources, and energy.

The price of steel has risen to £283 per ton.

The price of copper has risen to £1,750 per ton, and even the price of aluminum has climbed to £1,317 per ton.

Everything seemed to be unfolding exactly as Li Yi had predicted…

Just then, the people Li Yi had sent to investigate Sheffield United Steel returned with shocking news…

………..

London. Castle Manor!

In the conference room, Li Yi looked at the people before him with a grave expression.

After a long moment, he cleared his throat and said, “I’ve just received word that Sheffield United Steel Company’s revenue last month reached 2.9 billion pounds!”

Hearing Li Yi’s words, everyone in the conference room couldn’t help but gasp in astonishment.

Wow, 2.9 billion pounds—that’s nearly 50 billion Hong Kong dollars!

And that’s just their revenue for a single month—it’s simply outrageous!

“Mr. Li, that can’t be right. Is Sheffield’s marketing really that strong?”

“Is this information accurate? I just don’t think it’s very likely!”

“I don’t think it’s impossible. After all, Sheffield United Steel is the largest steel company in the British Isles. Their annual output accounts for over 60% of the country’s total steel production, and with steel prices so high right now, 2.9 billion pounds in revenue is certainly possible!”

“But it’s impossible to make that much in a single month—unless they sold a year’s worth of steel in just one month…”

As everyone chimed in with their own opinions, some thought the news was unlikely to be true, while others believed it might be.

For a moment, the entire conference room descended into chaos, sounding just like a bustling marketplace!

“Quiet!”

Just as the group was arguing heatedly, Li Yi suddenly spoke up, then continued, “The news is definitely true. I spent a full 20,000 pounds investigating this!”

No sooner had he finished speaking than Zhou Xinghua frowned and said, “But last year, the combined annual steel output of the British Isles didn’t even reach 30 million tons. Even if Sheffield really accounted for 60% of that output, it’s impossible for them to have sold that much, let alone in a single month!”

Li Yi suddenly laughed coldly and said, “Don’t forget, what Sheffield sells isn’t necessarily physical steel—it could very well be futures contracts!”

“How many futures contracts would that be? Do they even have that much production capacity?” Zhang Qiusheng frowned.

“Haha, who says you need sufficient production capacity to sell contracts?”

Zhang Qiusheng was taken aback at first, then his eyes widened in shock. “Boss, are you saying Sheffield is overselling futures contracts? They’re playing with fire!”

In the industry, selling futures contracts in advance to lock in profits is quite common.

But everything has its limits, and that limit is the company’s production capacity.

If too many contracts are issued—far exceeding the company’s production capacity—there is a risk of default.

If long positions force a squeeze and the company lacks the capacity to deliver the goods, the consequences could be catastrophic.

Clearly, judging by the current situation, Sheffield didn’t anticipate steel prices would rise this much. Once they saw prices climbing, they frantically started selling contracts.

“So Sheffield’s risk of default is quite high. What should we do? Should we force a delivery or cash out and exit the market?” Zhou Xinghua asked.

Li Yi’s lips curled slightly upward before he replied, “The Sassoon family is Sheffield Company’s largest shareholder, and they are the British Investment Group’s most important backer. What do you think we should do?”

Hearing this, everyone immediately understood!

This man had been locked in a bitter standoff with the British Capital Group for so long that he’d long been itching to crush them. Now that they’d handed him the knife, was there any way he’d back down?

For a moment, everyone in the conference room found themselves looking forward to the day of the takeover…

……….

PS: That’s all for today. I actually wrote two chapters, but I’m not quite satisfied with the second one, so I’m going to scrap it and start over!

The London Suburbs!

In a luxurious castle, Li Yi slowly stepped out of the car and, flanked by Li Yunbao and the others, walked into their London residence. Zhang Ziqiang, Zhou Wen, Pang Feiyan, Liang He, and the rest followed close behind!

This grand country estate was the property of the Li family, purchased by Li Yunbao’s grandfather.

Normally, the house was managed by a butler and servants, and the Li family only stayed there when they visited.

Upon arriving, Li Yunbao and the others made the castle their temporary base. After all, staying in a hotel would make it difficult to use a telegraph machine without arousing suspicion.

Upon entering the castle, Li Yunbao first arranged a room for Li Yi.

He had originally intended to give Li Yi the master bedroom—the room with the best natural light, the largest floor area, and the most comfort—but Li Yi declined.

After settling into a clean and tidy guest room, Li Yi joined Li Yunbao in the castle’s conference room, where Zhou Xinghua, Zhang Qiusheng, and the others were already waiting for him.

In the conference room, Li Yi naturally took the seat of honor, while Li Yunbao and the others sat on either side of the conference table.

Looking around the room, Li Yi then asked, “I’ve already been briefed on the situation here—you’ve done an excellent job. Now, let’s discuss the current state of affairs!”

No sooner had he finished speaking than Zhang Qiusheng sat up straight and said, “Mr. Li, I’m in charge of futures investments. Currently, the price of steel has risen to 248 pounds per ton. We hold 1.52 million futures contracts, with a paper profit of 1.44 billion pounds!”

“The price of copper has risen to 1,679 pounds per ton, an increase of 101 pounds per ton compared to our average purchase price. Our copper futures investments show a paper profit of 303 million pounds!”

“The price of aluminum is currently £1,220 per ton, up £53 per ton from our average purchase price, resulting in a paper profit of HK$237 million! During our 18-day stay in London, our futures investments have generated a total profit of £1.98 billion!”

After he finished speaking, everyone in the conference room—including Zhang Qiusheng—looked utterly thrilled.

A profit of nearly 2 billion in 18 days—that’s over 100 million a day!

Most importantly, the currency is pounds—converted to Hong Kong dollars, that’s a whopping 1.7 billion!

However, surprisingly, after hearing this, Li Yi merely nodded indifferently, then turned his gaze to Zhou Xinghua standing nearby.

He had learned from Li Futao that this Chief of Staff Zhou was currently in charge of acquisitions in the spot market.

Noticing Li Yi’s gaze, Zhou Xinghua immediately stood up and said, “Mr. Li, as per your instructions, we’ve launched a comprehensive acquisition of steel across the British Isles. So far, we’ve acquired over 9 million tons of high-quality steel, generating a total profit of over 60 million pounds!”

Li Yi nodded and asked again, “How is the upward trend in the futures market right now?”

“Since the Navy hasn’t been performing very well on the battlefield, the stock and futures markets have been on a clear upward trend these past few days!” Zhou Xinghua replied.

The reason why the stock and futures markets rise when the military performs poorly on the front lines is that a poor military performance implies the war will not end anytime soon.

If this conflict turns into a war of attrition, the resources the nation must expend during this war will increase dramatically—it could even become a bottomless pit.

In that case, the prices of various war materials on the market would skyrocket!

Some might say, “Isn’t this just profiteering off national misfortune?”

Yes, but in Western capitalist countries, as long as it’s legal, it’s acceptable.

As for so-called patriotism or collectivism, they couldn’t care less!

Li Yi paused briefly, then said, “I’ve reviewed the situation. Now I’m going to announce a few things!”

Hearing this, everyone’s attention turned back to Li Yi, but what he said next left everyone present dumbfounded.

“Yunbao, Secretary Zhou, Manager Zhang, your tasks are complete. From this moment on, all of you are to remain at the estate. No one is to leave without my orders. All operations will be handed over to Supervisor Pang, Liang He, and the others!”

No sooner had he finished speaking than Zhang Qiusheng said with a furrowed brow, “Mr. Li, why is this? Are you not trusting us…?”

Before he could finish, Li Yunbao, standing nearby, snapped, “Shut up! Apologize immediately!”

“Young Master…”

Zhang Qiusheng tried to explain further, but Li Yunbao cut him off again: “Our current success is entirely due to Brother Yi’s leadership. I believe he has his reasons for doing this—it certainly isn’t because he doesn’t trust us. So you must apologize…”

Seeing this, Li Yi was very pleased with Li Yunbao’s actions.

“Yunbao, that’s enough!”

Li Yi then turned to Zhang Qiusheng and said, “If I didn’t trust you, I wouldn’t have entrusted you with managing tens of billions of Hong Kong dollars. That sum represents more than half of the Chinese Chamber of Commerce’s cash flow. Do you understand what that means?”

“If this investment fails, the operations of nearly every company and family within the Chinese Chamber of Commerce will be affected. Do you still think I don’t trust you?”

Zhang Qiusheng quickly bowed his head and said, “I’m sorry, Mr. Li. I was wrong!”

Li Yi nodded and said, “The reason I asked you to stay in for now and had someone else take over your work is mainly because Dolsen and his people have arrived in London, and I don’t want him to know you’re here!”

“Mr. Li, are you planning to let Dolsen and his people take the fall?” Zhang Qiusheng asked thoughtfully.

He was a smart man; hearing Li Yi say this, he immediately grasped the implication.

Once Dolsons and his team learned of their existence and discovered that they had been acquiring copper, iron, and aluminum futures contracts for quite some time, they would surely figure something out.

Given Dolsons understanding of them, if he saw them offloading their positions at that point, he would most likely refuse to take the fall—and might even follow suit and exit the market himself.

Li Yi said calmly, “I hadn’t thought of that, but if Dolsen finds out we’ve already invested all that money, he might just target our company in Hong Kong!”

“But didn’t we sign a settlement agreement with them, stipulating hefty penalties for breach of contract? How could they…”

Before Li Yunbao could finish, Li Yi shook his head and said, “You’re too naive, kid. Do you really think a single piece of paper can guarantee everything will be fine?”

“Can’t it?”

“Of course not. If he wants to stir up trouble, there are countless ways he could do it. For instance, he could just send over a small financial team from here to handle the matter. Do you have any evidence linking this to him?”

Li Yi continued, “And then there’s the fact that the British-owned conglomerate has plenty of allies in East and Southeast Asia. If Dolsons were to have them step in, could we really pin it on Dolsons? Would the Governor’s Office and City Hall back us up?”

“Well…”

Li Yi spoke again: “That agreement is just for show—to tell those people not to stir up trouble, especially now that we’ve all come over here!”

“Whoa!”

Li Yunbao and the others couldn’t help but gasp. If Li Yi hadn’t told them this, they never would have imagined there were so many twists and turns involved.

After a long silence, Li Yunbao said with a hint of resentment, “Brother Yi, do you usually think I look like a fool?”

“No, it’s just that I sometimes see a glimmer of innocent foolishness in your eyes!” Li Yi said with a laugh.

Li Yunbao: @#￥%……&

Zhou Xinghua: @#￥%

After a while, Li Yunbao looked at Li Yi and said, “Brother Yi, we’ve almost spent all our money. What are you guys going to do next?”

“Look into some things!” Li Yi replied.

“Investigate what?”

A faint smile played at the corner of Li Yi’s mouth as he replied, “Sheffield Steel Corporation!”

Hearing this, everyone was stunned once again…

………..

Tai Ping Shan. Genting Villa District!

A light drizzle fell outside, but inside Li Yi’s sprawling villa, the place was bustling with activity.

The spacious living room was packed with wealthy and influential Chinese business tycoons.

They had all received a last-minute call from Li Yi and rushed over in a hurry.

Since none of them knew why Li Yi had suddenly summoned them, they began asking each other for details as soon as they arrived.

For a moment, the living room was filled with a buzz of conversation, just like a bustling marketplace!

Just then, Old Huang’s one-armed bodyguard, Tie Ying, came downstairs and addressed the crowd: “Everyone, please quiet down. Mr. Li has asked you all to come to the large conference room on the third floor. Please follow me!”

The group then rose one after another and followed Tie Ying upstairs!

Upon arriving at the conference room, the group had barely taken their seats when they saw Li Yi stride in, flanked by Li Futiao, Huang Lixing, He Dongying, Bao Chuanwang, and others.

After the hosts and guests had taken their seats, Li Yi cleared his throat and said, “I’ve invited you all here today primarily to discuss a very important matter!”

Hearing this, all thirty-plus people present fixed their gaze on Li Yi.

Everyone was curious—what could be so important that he would take the initiative to summon them all? This was something that had never happened before.

“Those British bastards from the British Capital Group have come begging for peace!”

A buzz went through the room!

The moment those words were spoken, everyone in the room was stunned, and soon they began whispering and discussing among themselves:

“Did I hear that right? Did Mr. Li just say those foreigners asked for peace?”

“No way. Those foreigners can’t be that weak—they’re already giving up so soon?”

“Could those foreigners be pulling a fast one? I heard they just raised a bunch of funds. Why would they suddenly back down?”

“This is really strange. I just have a bad feeling about this…”

Just as everyone was buzzing with speculation, the sound of someone banging on the table suddenly rang out in the conference room.

Soon, everyone saw that it was Li Yi banging on the table.

Immediately, everyone wisely fell silent, and the conference room went quiet.

Li Yi looked around the room and said again, “Everyone, Dolsen came to see me this afternoon. He wants to do business with me!”

Then, under everyone’s expectant and curious gazes, Li Yi slowly uttered a few words: “He wants to sell Hang Seng to me!”

No sooner had the words left his mouth than a middle-aged man in the front row exclaimed in astonishment, “How is that possible? Although Hang Seng isn’t on par with Huifeng, it’s still one of the British-owned conglomerate’s most important financial assets. Why would they sell it to us so easily?”

“Exactly. Has Durson lost his mind? How could he make such a decision? Would the British-owned group even agree to this?”

“Could those foreigners be up to some kind of scheme? We’d better think this through carefully…”

Li Yi gestured for everyone to quiet down once more, then continued, “Of course, our acquisition of Hang Seng Bank comes with conditions!”

“In addition to paying market price, we must agree not to target any companies under the British-owned Group for three months and sign a corresponding agreement!”

Hearing this, everyone in the conference room was even more baffled; they were all completely thrown off by the British-owned Group’s move.

Are they trading Hang Seng for three months of peace?

Why would they do this?

Just as everyone was speculating, Li Yi recounted the rumors that Durson and his group intended to invest in London.

After listening to Li Yi’s analysis, someone couldn’t help but speak up: “I don’t think we should agree to this with those foreigners. Otherwise, their strength will inevitably grow significantly in three months, and it won’t be easy for us to deal with them then!”

“I think it’s fine to agree with them. Getting our hands on Hang Seng Bank is what really matters!”

“Right, I think we should agree for now. Not only is it uncertain whether those foreigners will make money in London, but even if they do, so what…”

Hearing everyone chime in with their opinions, Li Yi tapped the table again and said, “Enough. I’ve already agreed to this with Durson. Tomorrow morning, we’ll formally sign the Hang Seng equity transaction agreement at City Hall. At the same time, under the supervision of the Governor’s Residence and all the media, we’ll sign a non-aggression pact.”

Before anyone could speak up, Li Yi explained directly, “I know those British-owned group foreigners want to use this opportunity to catch their breath and replenish their resources. Once they’ve regained some strength, they’ll definitely make a comeback!”

“But at the same time, this is indeed a good opportunity for us in London. Those foreigners need a stable base to make money—and so do we.”

“Besides, we have even more idle funds on hand. If we don’t put them to use, how are we going to distribute the profits to everyone?”

Hearing this, everyone present fell silent.

True enough, the investment boom in London right now is a golden opportunity for the British-backed group—and why shouldn’t it be for us as well?

At that moment, Li Futiao, who had already discussed the matter beforehand, immediately spoke up: “I agree to a temporary truce with the British Capital Group. Let’s all make money first; it’s not too late to settle the score and decide who wins or loses later!”

“I also agree to accept those foreigners’ terms. After all, if we keep dragging this out, our losses will only grow!” said He Dongying.

“I also think we should agree to those foreigners’ request. The opportunity in London is simply too rare…”

Seeing that the top brass were all on the same page, the others naturally had nothing more to say. Soon, the group unanimously decided to accept the British-funded group’s terms and reach a temporary truce!

At the same time, at the Castle Manor, members of the British Capital Group had also gathered to discuss the very same matter.

Compared to the Chinese Chamber of Commerce, the members of the British Capital Group were more inclined toward a settlement.

It wasn’t just because the profit opportunities in London were rare; more importantly, Star Investment and that Li Yi were simply too formidable.

In just over ten days, he had single-handedly wrested billions of Hong Kong dollars from Hui Feng.

Moreover, without pausing for a moment, he had set his sights on Hang Seng, forcing Dolsons to sell its Hang Seng shares at a fire-sale price.

No one could guarantee that this terrifying man wouldn’t turn his sights on them next. Now that there was an opportunity to make money while simultaneously neutralizing this threat, anyone who refused would be out of their mind.

As for what happens to the people at Hang Seng, who cares!

They say a daughter who’s married off is like water that’s been poured out, but a company that’s been sold off isn’t even worth that much…

……..

The next day!

The Governor’s Residence. City Hall!

Under the supervision of the Governor and senior officials and councilors of the City Council, and witnessed by dozens of media reporters, Li Yi first signed the share transaction contract with Henry, the head of Huifeng.

According to the terms of the contract, Li Yi personally acquired 41% of Hang Seng’s shares from Huifeng for 1.4 billion Hong Kong dollars.

Both parties swiftly signed the prepared contract. After exchanging the documents, staff from both sides immediately proceeded with the subsequent handover.

Subsequently, Li Yi and Dolsen, representing the Chinese Chamber of Commerce and the British-owned Group respectively, signed the “Settlement Agreement.”

Under the terms of this Settlement Agreement, both parties decided to settle their dispute through amicable negotiations and pledged not to take any hostile actions against each other for the next three months.

To ensure both parties faithfully fulfill the agreement, they designated Huifeng Bank and Star Investment Company as collateral for breach of contract. Should either party violate the terms of the agreement, they must transfer the aforementioned companies to the other party as compensation!

This agreement is overseen by the Governor’s Office, City Hall, and the media throughout Hong Kong. The term of the agreement is three months; if both parties deem it necessary after the three-month period expires, they may negotiate an extension…

The contents of this agreement are fully public. Upon signing, the media will photograph and publish the agreement!

At the same time, Li Yi and Dolsen delivered speeches on behalf of their respective camps!

Subsequently, the entire Hong Kong media went into a frenzy!

No one could have imagined that the two factions, which had previously been locked in a bitter struggle, had secretly reached a truce—and the major media outlets had not detected a single hint of it beforehand.

Although it is merely a short-term non-aggression pact, who can guarantee that they won’t renew the agreement after three months?

However, some astute observers realized that there seemed to be more to this reconciliation than met the eye.

Overnight, the public was abuzz with speculation, and the public took a keen interest in the matter.

Hong Kong media, seemingly having struck gold, saw experts and professors lining up to share their views—and the public was more than happy to pay attention. Soon, analyses and speculations were flying everywhere!

However, Li Yi and Dolsen, the instigators of the whole affair, seemed to have vanished into thin air.

It wasn’t until a week later that they reappeared in the public eye—but not on Hong Kong Island, but in London!

Exchange. VIP Room No. 1!

Li Yi was sitting with his eyes closed, deep in thought. The battle for control of Hang Seng had reached a fever pitch; barring any surprises, the outcome would likely be decided within the next day or two.

As things stood, they certainly held the upper hand, but whether they could ultimately secure controlling interest in Hang Seng remained an unknown.

The reason was simple: the British-owned group currently held far more Hang Seng shares than he did.

If the other side chose to fight to the bitter end, it would be extremely difficult for Starry Sky to secure a 51% controlling stake.

But Li Yi wasn’t in a hurry. Initiating the battle for Hang Seng and securing a controlling stake wasn’t his sole objective.

The top priority was to keep Dolsons and his crew tied up; taking over Hang Seng was merely a bonus—a side benefit!

Securing it would be great, but failing to do so wouldn’t be a loss—after all, he had already achieved his most important objective!

Just as Li Yi was deep in thought, Pang Feiyan hurriedly pushed open the door and walked in.

The plump young woman walked over to Li Yi and said somewhat breathlessly, “Boss, Dolsen and the others are here. They say they’d like to see you. Should you meet with them?”

A faint smile immediately appeared on Li Yi’s face. He uncrossed his legs and said, “Sure. They’re bringing us money—why wouldn’t I see them?”

“Bringing money?”

“Don’t pry into things you don’t need to know, kid. Show them in!” Li Yi said.

Pang Feiyan immediately retorted, “Boss, she’s already 25—she’s not a little girl anymore!”

Li Yi glanced at the flat expanse of her chest and said, “Hurry up and go. Don’t keep him waiting!”

Pang Feiyan’s face flushed instantly, and she couldn’t help but think of the lady’s ample figure.

She shot Li Yi a withering glance before stumbling toward the door!

Watching the chubby young woman leave as if fleeing, Li Yi couldn’t help but shake his head. Surely she hadn’t misunderstood something…

Soon, the VIP room door swung open again. Led by Pang Feiyan, Dolsen and Smith entered with three middle-aged men in tow, while their bodyguards were all blocked outside by Zhou Wen and his men.

Standing before Li Yi, Dolsen stared at him for a long moment before speaking slowly, “Mr. Li Yi, you’ve shown great skill—blending truth with deception, the real with the fake. I’m truly impressed!”

Li Yi’s expression remained unchanged, however. He simply replied calmly, “Mr. Dolsen, I assume you didn’t come here just to compliment me. There’s no need for us to beat around the bush. Let’s get straight to the point.”

“Straight to the point!”

Dawson continued, “I’d like to propose a deal to you, Mr. Li Yi. I wonder if you’d be interested?”

“Shares in Hang Seng?”

“Yes. I know you’re interested in Hang Seng Bank, and as it happens, we’re considering selling…”

Before he could finish, Li Yi replied with interest, “Are you planning to invest in the London market?”

“Doesn’t Mr. Li Yi want to go over there and make a fortune?” Dalson retorted.

“No!”

Hearing this reply, Dolsen’s expression changed instantly.

It wasn’t that he couldn’t keep his composure; it was simply that Li Yi’s response had completely caught him off guard, and it would have a massive impact on their future plans.

If Li Yi had no intention of investing in London, then the massive sum of money they held would forever hang like a sword of Damocles over the British Capital Group, keeping them awake at night.

But just then, Li Yi suddenly smiled and said, “You want to invest in London but are worried about trouble back home. Are you afraid of me?”

“I wouldn’t say I’m afraid. I simply believe we share common interests and should set aside our differences to focus on overseas markets together. After all, no matter how deep our animosity runs, there’s no need to turn our backs on money!” Dolsen replied.

Hearing this, Li Yi feigned hesitation and fell silent!

Seeing this, Dalson assumed he had persuaded Li Yi and immediately pressed his advantage: “If you agree to my proposal, I can represent the Alliance in transferring our 41% stake in Hang Seng to you at market value!”

Hearing the figure of 41%, Li Yi was slightly taken aback.

He knew that the British-owned group was Hang Seng’s major shareholder, but according to publicly available information, they only held 29% of the shares—he hadn’t expected the actual figure to be as high as 41%.

This meant that if the two sides went head-to-head, his chances of securing a controlling stake in Hang Seng were virtually zero.

But if he agreed to Dolsons’ terms now, those 41% of shares would be within his grasp. Combined with the 11% he currently held, that would total 52%—enough to meet the threshold for a controlling stake.

However, he didn’t rush to agree. Instead, he stared at Dolsen and said, “You want to use Hang Seng Bank’s shares to shut me up so you can go to London and make a fortune. Do you really think I’d accept that?”

Dawson smiled and said, “I think Mr. Li Yi will, because deep down, we’re cut from the same cloth!”

“Haha, I couldn’t agree more!”

Then Li Yi changed the subject and said, “I imagine these shares won’t be easy to come by. Tell me your terms.”

“I have only one condition: as long as Mr. Li Yi, representing Starry Sky Company and the Chinese Chamber of Commerce, signs a non-aggression pact with our alliance under the witness of the Governor’s Office…”

Hearing this, Li Yi almost burst out laughing!

A non-aggression pact? Do they really think they’re an independent kingdom?

“Mr. Dolsen, how binding do you think such an agreement would be between us? Besides, you’ve surely heard the saying: ‘Agreements are meant to be broken.’ Do you really think you can rest easy relying on just a piece of paper?” Li Yi said.

Dawson fell silent. Given the bitter enmity between the two sides, a mere piece of paper truly held little binding power.

“Then what do you think we should do?”

Li Yi’s expression hardened instantly as he said coldly, “You’re right. We’re all in the same boat. I want to invest in the London market too, but I don’t trust you!”

“And don’t give me any of that ‘spirit of the contract’ nonsense. To you, that’s nothing more than toilet paper—something you only pull out when it’s convenient. If you want us to set aside our differences—or even our hatred—you’ll have to offer something far more sincere!”

“What kind of proof?” Dolsen asked instinctively.

“You put up Huifeng’s shares as collateral, and we’ll put up Star Investment as a guarantee. We’ll agree not to attack each other for three months. If either side violates the agreement during that period, the other party’s company will serve as the penalty!” Li Yi said.

Whoa!

These words not only made Dolsen, Smith, and the others gasp in shock, but also left Pang Feiyan and the others speechless.

After all, both Huifeng and Star Investment were massive corporations worth tens of billions. For Li Yi to propose using them as liquidated damages was truly beyond everyone’s expectations.

“Are you serious?” Dolsen asked, frowning.

“Yes. Just think about all the underhanded tactics you’ve used in the past. I wouldn’t trust you based on a mere piece of paper!” Li Yi said.

Dawson stared at Li Yi for a long moment before saying, “It seems you’re quite wary of us as well?”

“Fear? Are you even worthy of it?”

Li Yi continued, “I simply don’t want to waste precious capital on guarding against you. Don’t forget I currently have 66 billion in funds. As long as I set aside 10 billion, I can handle any tactics you throw at me. But if you were to set aside 10 billion, how much would you have left for investment?”

At these words, Dowson’s expression changed once more!

After a brief silence, he finally said, “Alright, I agree with your proposal. Let’s go to the Governor’s Mansion later to sign the agreement!”

“Not just the Governor’s Mansion—representatives from the judiciary and the legislature must also serve as impartial witnesses. Once the agreement is signed, it must be published in all media outlets!” Li Yi said.

“Agreed!”

“Then let’s talk about the Hang Seng shares. How much do you want?” Li Yi asked.

Dawson replied with a hint of frustration, “Hang Seng’s market capitalization has now fallen below 3.5 billion Hong Kong dollars. A 41% stake is worth nearly 1.4 billion. What do you think?”

“Deal!” Li Yi said.

“Deal…”

………..

Downtown. Li Family Estate!

Upon receiving the news from Li Yi, Li Futiao immediately picked up the phone and dialed a number.

After a few rings, the call was answered, and a slightly aged voice came through the receiver: “Who is this?”

“It’s me, Li Futiao!”

There was a noticeable pause on the other end, followed by a respectful reply: “Hello, Mr. Li. What are your instructions?”

Although the person on the other end was a man of considerable wealth, he instinctively adopted a humble demeanor when facing a heavyweight like Li Futiao.

The Li family wasn’t just about Li Futiao; the other two members of the Li family were equally influential in Hong Kong, especially the second son, who had ventured into politics and held a high-ranking position.

When it came to a super-family with such deep roots in both politics and business, there were very few people on Hong Kong Island who dared to go head-to-head with the Li family!

“I hear you hold a 2% stake in Hang Seng. I’m very interested. Name your price,” Li Futao said.

“Mr. Li, Hang Seng’s stock price has plummeted. If I sell now, I’ll take a loss…”

“I won’t let you lose money. As far as I know, Hang Seng’s stock is currently trading at only 15 Hong Kong dollars per share. I’ll offer 17. If that works for you, bring the contract to the Li family estate and find me!”

After saying that, Li Futiao didn’t say another word—he simply hung up the phone!

“Old Liang, I hear you hold shares in Hang Seng Bank. I’m very interested—why don’t we talk…”

“Mr. Kuris…”

“Mr. Douglas…”

As one call after another went out, it wasn’t long before quite a few people were driving their way to the Li Family Estate!

News travels fast, and soon, Dolsons and others at the exchange received word that Chairman Li of the Far East Association was making a high-profile move to acquire shares in Hang Seng Bank.

Moreover, the price he was offering was 10 to 20 percent higher than the market price on the exchange.

Upon hearing the news, the foreigners at the exchange began to grow restless; they were all baffled by the Chinese Chamber of Commerce’s actions.

Meanwhile, VIP Room No. 9 was in complete chaos, with the senior executives of the British-owned group chattering away, discussing the current situation.

Looking at the VIP lounge, which resembled a bustling marketplace, Dolsen’s expression darkened.

“Smash!”

Dorson slammed the coffee cup in his hand onto the floor and bellowed, “Quiet! Will all this chaos solve anything?”

Seeing Dolsen lose his temper, everyone in the room instinctively fell silent.

At that moment, Henry asked in a low voice, “Dawson, what exactly are those yellow-skinned monkeys up to? Why are they doing this?”

Dawson paused to think for a moment, then said, “There are two possible reasons for their actions. The first is that the Chinese Chamber of Commerce has set its sights on Hang Seng. While they’re having Star Company’s people drive down Hang Seng’s stock price, they’re secretly buying up Hang Seng’s shares!”

“The other possibility is that those bastards are actually preparing to bail out. This news is just meant to throw us off the scent—just like a few days ago, when they publicly announced they’d acquired a certain number of Huifeng’s non-tradable shares, but in reality, they didn’t buy a single one!”

After hearing Dolsen’s analysis, everyone present couldn’t help but roll their eyes.

“You’ve covered every possibility. It sounds like you’re making sense, but it’s basically the same as saying nothing at all.”

“So what? What exactly are those yellow-skinned monkeys up to? Are they planning to bail out, or have they set their sights on Hang Seng?” Henry, whose brain wasn’t exactly the sharpest tool in the shed, asked impatiently.

“They’ve set their sights on Hang Seng!” Dolsen said firmly.

“Shit… We absolutely can’t let those yellow-skinned monkeys get their way. We have to drive the stock price up…”

Before Henry could finish, Dolsen shook his head and said, “It’s pointless now!”

“Huh?”

Seeing the puzzled expressions on everyone’s faces, Dolsen sighed and said, “Gentlemen, haven’t you figured it out yet? Starry Sky’s target has never been the stock market.”

“The stock market is merely a platform for them to drive down Hang Seng’s share price. Their real trump card lies in the over-the-counter market. As long as they acquire enough shares over the counter, they’ll achieve their goal of controlling Hang Seng!”

Henry asked, somewhat puzzled, “We can compete with them for shares in the over-the-counter market too. How can that be pointless?”

At that moment, Smith looked at his boss as if he were an idiot. He hadn’t intended to get involved, but he couldn’t help but interject, “We can’t compete with those Chinese investors. For one thing, we simply don’t have the same financial clout as they do, and for another…”

Seeing Smith’s hesitant expression, Henry snapped, “Smith, what’s the ‘on the other hand’? Spit it out!”

“I’ll say it!”

Then Dolsen spoke in a low voice: “What Smith is trying to say is that our business reputation has suffered serious damage recently. The shareholders of Hang Seng won’t sell their shares to us unless we’re willing to pay a higher price!”

Hearing this, everyone fell silent.

They all recalled how, when Huifeng’s stock price plummeted a few days ago, the Alliance had breached dozens of contracts in a row.

Although they managed to avoid even greater losses following the stock price crash, the British-owned group’s business reputation was left in tatters. Under these circumstances, their chances of competing with the Chinese Chamber of Commerce for shares in Hengbanbanhaobangsheng were slim to none.

Not to mention, this went against their established plan!

For a moment, the vast VIP lounge fell silent…

After a long while, Henry finally frowned and said, “So what should we do now? Are we just going to stand by and watch them snap up Hang Seng shares at rock-bottom prices?”

Dawson paused briefly, then said, “I intend to go see that man across the room right now!”

“Dawson, why are you going to see him?” Henry asked, puzzled.

“To strike a deal with him!”

“What kind of deal?”

“Sell him all of Hang Seng’s shares!” Dolsen said, making a startling announcement.

Hearing this, the reactions of those in the room varied: some looked astonished, while others remained unperturbed, as if everything had been expected all along!

“You…”

Before Henry could finish his sentence, Dolsen spoke again: “Henry, the other side has already anticipated our moves. If we keep fighting this out, we might not necessarily lose, but we certainly won’t gain much of an advantage!”

“More importantly, if our resources remain tied up here, we’ll miss out on investment opportunities in London. Compared to the expected returns in London, what’s the loss from Hang Seng?”

“I just can’t accept this!” Henry said through gritted teeth.

“Is making money more important, or saving face? Besides, business is like a battlefield—what’s one defeat? There’s plenty of time ahead, and we’ll have plenty of other chances,” Dalson retorted.

“Well… all right, then. I won’t get involved in this matter!” Henry said.

Dawson nodded, then stood up from his seat and said, “Everyone, I’m going to meet this Mr. Li Yi now. Anyone who’s interested is welcome to come along!”

With that, Dolsen headed straight for the exit of the VIP lounge, his pace slightly hurried…

………

Tuesday, April 6!

As always, the Hong Kong Stock Exchange was bustling with activity!

Although massive amounts of capital were currently flowing out of the stock market, it was the funds of large corporations and wealthy tycoons that were fleeing—ordinary citizens still had to get by as best they could.

And since the stock market is one of the few places where ordinary people can get rich overnight, it’s naturally the place where they flock the most.

Apart from that, the places Hong Kong residents love most are casinos and the Jockey Club!

In VIP Room 9, Dolsen and the others had all arrived. The group was sitting around the sofa, sipping coffee and chatting.

“Dawson, are we really going to cash out and leave today? Shouldn’t we wait a little longer?”

Henry asked in a subdued tone as he stirred his coffee cup.

After all, Huifeng is now a major shareholder of Hang Seng. According to their original plan, this sell-off would not only liquidate all 15% of their tradable shares but also dispose of a large portion of their non-tradable shares.

If Star Company was willing to take them over, they would even have to completely withdraw from Hang Seng.

Although all of this was for the greater good, it still left him feeling extremely dissatisfied.

Dawson replied calmly, “If this were earlier, we could indeed wait a little longer. But now, with massive capital fleeing Hong Kong, Hang Seng’s stock price has no room left to rise.”

“Unless we keep pushing the price up ourselves, but that would infinitely increase the risk of getting stuck with a loss. Are you sure you want to wait?”

Henry shook his head. “Never mind. You’re right—Hang Seng’s stock price really has no room to rise.”

Dawson nodded, then added, “I’ve chosen to exit the market at this point not only because the stock has peaked, but more importantly, because better opportunities are waiting for us!”

“Are you talking about London?”

“Yes, the stock market in London is booming right now—this is a great opportunity for us.”

Dawson continued, “With our family’s investment channels over there, as long as we put the money in, profits are absolutely guaranteed!”

Smith suddenly interjected, “Mr. Dolsen, you wish to transfer funds to the London market, but the person at Starry Sky may not let us have our way!”

“Are you worried they might take this opportunity to launch an attack on the Alliance’s companies?”

“Yes, I think that’s highly likely…”

Before Smith could finish, Dolsen shook his head with a smile and said confidently, “No, they won’t make a move!”

“Why?”

“Because we now share a common interest!” Dolsen declared, his words striking a chord.

“Common interests?”

At those words, everyone in the room was stunned.

Both sides were so enraged they’d do anything to wipe the other out—where on earth could there be a common interest?

Dawson paused briefly, then said, “Although I detest that guy named Li Yi, there’s no denying that he’s a top-tier investor!”

“And as an excellent investor, he wouldn’t fail to see the opportunities in London. If I’m not mistaken, they’ve already started investing in the London market. In that sense, I believe we do have a common interest!”

Upon hearing Dolsen’s analysis, everyone present fell into deep thought.

They were all merchants, and naturally understood merchants best.

Among merchants, there are no permanent friends or enemies—only permanent interests.

Now that both sides shared the goal of going to London to make a fortune, there was naturally a possibility of temporarily setting aside their disputes—it all depended on how each side chose to act.

The Earl, who had remained silent until then, suddenly spoke up: “Dawson, what do you intend to do?”

“I plan to go see that guy myself after today’s banbanhaobang and negotiate a deal with him!” Dolsen said calmly.

“Are you sure you can persuade that despicable fellow?” Henry asked.

Dawson replied confidently, “He has no reason to refuse…”

Just then, a series of crisp “ding” sounds rang out from outside—the opening bell had sounded.

At that moment, Dolsen’s expression changed, and he said in a deep voice, “All right, it’s time to close the net. Smith, proceed with the original plan!”

“Yes…”

……..

The trading floor!

As the opening bell rang, the eyes of all the investors and retail traders kept turning toward the two tightly closed doors of the VIP rooms.

“Click!”

The door to VIP Room 9 on the left opened first. Led by Smith, more than a dozen traders in suits filed out one after another and walked toward this side.

Then, under everyone’s watchful eyes, they placed the first order of the day: a bid for 20,000 lots of Hang Seng free-float shares at HK$25.50 per share.

Seeing this, everyone breathed a sigh of relief.

The offer price was HK$0.50 higher than yesterday’s closing price—a modest increase, but a positive trend.

As long as this side was still willing to push the price up, the stock price had room to rise further, and immediately, some people followed suit.

However, just then, the door to the VIP lounge on the right also opened. Led by a slightly plump woman, several young men in suits walked toward the trading floor.

Immediately, under everyone’s watchful eyes, they placed the first order of the day: selling 100,000 lots of Hang Seng shares at HK$24 per share!

To everyone’s surprise, Star Investment was dumping Hang Seng shares at a low price—and they were selling 100,000 lots at once, at just HK$24 per share.

This sent many into a panic—it seemed Star Investment was ready to throw in the towel!

Investors were immediately reminded of Li Yi’s market-crashing move from a few days earlier. In an instant, Hang Seng’s share price—which had been edging slightly higher—was crushed the moment it began to rise.

After that, it was like a deflated balloon, sliding all the way down…

In VIP Room 9, when Dolsen and the others learned that Star Investment had dumped shares at a low price before they could act, they were instantly stunned.

His original plan was to first stabilize—or even boost—the stock price in public, then quietly offload his shares.

He never expected that guy to drop all pretense and start dumping shares at a low price right off the bat—that’s just unethical.

To prevent Star Investment from successfully cashing out, Dolsen immediately ordered Smith and the others to halt their purchases of Hang Seng shares and, following Star Investment’s lead, dump their own Hang Seng shares at a low price.

Moreover, to ensure he got out first, Dolsen demanded that Smith undercut Star Investment’s listed price by 1 Hong Kong dollar, no matter what they offered!

Then, as everyone watched in stunned silence, Star Investment and the British-owned group launched into a frantic race to the exit.

“If you bid 24 HKD per share, I’ll dare to bid 23 HKD!”

If you dare to bid 23, I’ll go to 22…

And so, in just a few short hours, Hang Seng shares—which had been on an eight-day winning streak—plummeted overnight, closing at just HK$17 per share by the morning trading break.

This price was back to where it had been before the two sides began their battle for control, yet even so, neither side had managed to sell many of their shares.

After all, very few investors have the capacity to absorb the shares held by these two major forces. Even if someone did have the financial resources, no one would enter the market at this point—it’s far too risky!

In other words, so far, both sides have emerged battered and bruised from this battle for control.

After all, the money invested earlier was real, and with the stock price now plummeting, all of that money was lost!

The retail investors who jumped on the bandwagon have also suffered losses; some of the greedy ones now find it too late to bail out!

However, just as everyone was wondering if the share price had bottomed out at HK$17, Starry Company made another move, driving the price down to HK$16 per share.

On the other side, the British-owned group paused for a while before finally gritting their teeth and setting the price at HK$15.

At 3:00 p.m., Star Company adjusted its bid again, driving the price of Hang Seng shares down to HK$15.

But this time, the British-owned group did not follow suit, and the two sides were locked in a stalemate!

Meanwhile, in VIP Room No. 1, Li Yi received a report from Pang Feiyan and realized that this price was nearly at the limit of what those foreigners could bear.

Immediately, he had someone notify Li Futiao and the others that it was time to act.

Soon after, the Hong Kong stock market witnessed the most thrilling, counter-intuitive drama of the year…

………

Britain and Argentina had gone to war!

The news spread like wildfire across the globe.

In an instant, mainstream media outlets in every country were reporting on the event.

It was truly shocking; no one could believe it was real. Just how much counterfeit alcohol had Argentina been drinking to get so carried away?

They actually dared to proactively send troops to the Falkland Islands, directly launching an attack on the British garrison there—and they won, capturing the entire island’s garrison in one fell swoop.

Although Britain’s national power had rapidly declined after World War II, the once-mighty “Empire on Which the Sun Never Sets” was now nothing more than the fading glow of a setting sun.

It was neither “Great Britain” nor an “Empire.”

But as the saying goes, even a rotten ship has three thousand nails, and a starving camel is still bigger than a horse.

After all, it was once a dominant power; even in its twilight years, it was not a nation that a tiny country like Argentina could bully.

To put it simply, in terms of naval power alone, Britain still possessed several formidable warships, such as the aircraft carriers HMS Hermes and HMS Invincible; in this regard, the Argentine Navy was simply no match.

Argentina’s only advantage is its proximity to the Falkland Islands, which both sides are vying for; beyond that, it’s hard to see how they stand much of a chance.

Yet even so, this up-and-coming power in South America has recklessly taken action—a move that has taken everyone by surprise.

All eyes are now on London, as everyone watches to see how it will respond: whether it will retaliate in kind or resolve the Falklands dispute through diplomatic means.

The vast majority of nations believe that this time, London is highly likely to compromise, simply because the Falkland Islands are far too distant from the British Isles.

Even as the crow flies, the distance between the two places is 13,000 kilometers—a distance so vast it’s almost absurd.

What does 13,000 kilometers mean?

Missiles with a range of over 8,000 kilometers are classified as intercontinental ballistic missiles (ICBMs), and the distance from the British Isles to the Falkland Islands is a full 1.5 times the minimum range of an ICBM.

Moreover, everyone knows that war is all about logistics. Once London chooses to go to war and both sides enter a state of conflict, all British military supplies would have to be delivered over long distances.

A 13,000-kilometer supply line is absurd just to think about; the logistical burden alone would be enough to exhaust the aging British Navy.

Galtieri, the leader of Argentina’s military junta, thought the same. He didn’t believe London would actually go to war with him over a tiny, insignificant island.

Especially since the person calling the shots at 10 Downing Street at the time was a woman—a female prime minister who had been in office for only three years and whose approval ratings had been steadily declining.

However, this time, everyone misjudged London’s response!

No sooner had Argentina sent troops to occupy the Falkland Islands and forced the British governor’s office to surrender than the female Prime Minister at 10 Downing Street—known as the “Iron Lady”—responded: The Royal Navy would reclaim the lost territory.

This response made it clear that London had chosen to fight fire with fire—it had chosen war!

When the news broke, the world was both stunned and skeptical.

Two nations separated by 14,000 kilometers had actually declared war on each other—how on earth was this supposed to play out?

On one side was a long-established colonial empire; on the other, a newly emerging regional power—and Argentina was fighting on its own doorstep.

Consequently, almost everyone believed this would be a protracted and drawn-out conflict.

Consequently, following London’s statement on April 5, both the London stock market and futures markets were significantly impacted.

First, in the stock market, shares of all defense-related companies surged dramatically.

Shares in food, pharmaceuticals, and other war-related industries also rose, creating a rare scene of prosperity across the entire market.

As for the futures market, metal prices—which had already been soaring for nearly two weeks—saw another sharp rise. Even gold prices, which had been sluggish for over four months, have experienced significant volatility in recent days.

That’s right—volatility, the kind characterized by sharp ups and downs.

Unlike metals such as steel, copper, aluminum, and silver, which are showing a stable upward trend with prices climbing rapidly,

This is because gold is not an ordinary industrial raw material; it possesses monetary and wealth attributes that ordinary metals lack.

A war sparked by two nations separated by over 10,000 kilometers has a very limited scale and impact, insufficient to drive a significant rise in the price of gold.

Even if prices rise now, they’ll likely fall again before long—which is precisely why Li Yi hasn’t been speculating on gold.

In short, due to the war, several markets in London are currently in disarray, with various forces looking to capitalize on the situation to make a fortune…

………..

Hong Kong Island!

As one of the few colonies still under British control, Hong Kong has inevitably been affected by London’s decision to go head-to-head with Argentina.

However, unlike the massive crashes in London’s various markets, Hong Kong’s stock market saw prices plummet across multiple stocks as soon as trading opened on April 5, leaving the entire market in a state of utter despair.

The reason for the Hong Kong stock market’s plunge is simple: massive capital flight.

That’s right—capital flight!

The London market, influenced by the war, has experienced a false boom; right now, investing in any industry related to the war guarantees huge profits.

If you’re lucky enough to buy shares in a defense contractor, your investment can snowball in just a few days—far better than pouring money into Hong Kong’s moribund stock market.

Moreover, the financial sector here on Hong Kong Island is deeply intertwined with London’s. Companies here have countless ways to transfer funds to the London market in the shortest possible time.

Consequently, starting on April 2, many companies and wealthy individuals in Hong Kong began shifting their funds to London to invest there.

With so much capital suddenly withdrawn, the Hong Kong stock market suddenly lost a significant amount of hot money, making it naturally impossible to sustain prices, and the sharp plunge in stock prices was only to be expected.

However, amid such chaos, two stocks stood out the most: Huifeng and Hang Seng.

Huifeng attracted attention due to the magnitude of its price drop. At its peak last week, Huifeng’s share price had soared to over 70 Hong Kong dollars, with the company’s market capitalization briefly exceeding 70 billion Hong Kong dollars.

But in just one week, after its share price had already been cut in half, it took another nosedive. By the close of trading on April 5, the share price had plummeted to just HK$26.

This downturn has not only inflicted heavy losses on British-owned groups but also on brokerage firms.

Many of them had pinned their hopes on Huifeng’s stock price rising so they could break even and exit their positions; now that the stock has plummeted, they are utterly despairing.

Amid their despair, these investors have publicly blamed the British-owned group in the media, as their dire situation is directly linked to the group’s breach of contract.

Overnight, the British-owned group found itself in the eye of the storm!

Hang Seng’s performance, however, stands out because it is one of the few stocks on the Hong Kong stock market currently bucking the trend.

While the stocks of other listed companies have been sliding, Hang Seng’s share price has been rising. Although the gains have not been rapid, by the close of trading on April 5, its share price had reached HK$25.

Compared to HK$17 a week earlier, the share price had risen by 50%!

Just as everyone was speculating whether Hang Seng’s share price would continue to rise, Dolsons and others believed it had already peaked.

After all, Hang Seng’s market capitalization had already reached nearly HK$6 billion—an astonishing figure for an ordinary bank.

So, they were ready to cash out and exit the market!

However, just as they were preparing to quietly offload their Hang Seng shares, they never expected Li Yi to pull another one of his shenanigans…

……….

Over the next few days, just as everyone had anticipated, Star Investment and the British-owned conglomerate engaged in a fierce battle for control of Hang Seng shares.

However, the battle wasn’t as fierce as imagined. Although the stock price kept rising, by April 1st—April Fools’ Day—it had only climbed to 22 Hong Kong dollars.

A gain of just HK$5 over four days—how to describe that? It could only be called barely passable.

Although the increase represented a rise of about 25%, it fell far short of the public’s earlier expectations of the stock price doubling—or even multiplying several times over.

It’s worth noting that during the Huifeng takeover battle a few days prior, the two sides didn’t play by these rules. At that time, Huifeng’s share price was only HK$14 per share, yet it skyrocketed to over HK$70 per share in just a few short days.

That was a fivefold increase—compared to that, Hang Seng’s stock performance simply doesn’t seem to fit the style of these two parties.

This has led many brokerage firms—who had hoped to profit from the turmoil but ultimately backed out—to quietly breathe a sigh of relief.

Fortunately, they were scared off earlier and didn’t enter the market.

Otherwise, with such a massive surge, it wouldn’t have been easy for them to dare to take risks and try to profit from the chaos.

Moreover, one misstep could lead to irreversible ruin; in short, the risk and reward were completely out of proportion.

However, for ordinary investors, this is a decent opportunity. After all, their capital is limited—at most a hundred or two hundred thousand Hong Kong dollars, and at the very least just a few hundred. As long as there’s upside potential and the price isn’t too high, it’s worth buying.

Even if the stock price does drop, their losses won’t be significant.

Consequently, small retail investors have been jumping in in significant numbers over the past few days.

But since their influence is limited, their impact on the battle between the two sides is negligible.

Of course, the reason the stock price has reached this point lies primarily with Starry Sky and the British-owned group.

Right now, both sides are in a peculiar standoff: you know I’m up to no good, and I know you’re harboring ulterior motives.

Li Yi’s side is trying to buy time; a slower rise works in his favor, so he isn’t very aggressive when raising the bid.

On the other hand, Dolsons is wary of pushing the price up too quickly, fearing that Starry Company might seize the opportunity to cash out and exit the market as it has done before, so they are also acting with great caution.

In their view, this gradual upward climb was quite advantageous. Once the price had risen sufficiently, they could begin rapidly dumping their shares, effectively trapping Star Company in a losing position.

Thus, this scenario unfolded.

Just as the situation on Hong Kong Island was locked in a stalemate, Li Yunbao and his team were making smooth progress in London.

Late on the night of April 1, Li Yi received a call from Li Futiao, who reported that Li Yunbao and his team had followed his instructions to the letter: aside from retaining a small amount of emergency funds, they had successfully invested the remainder.

At present, they held 1.52 million lots of steel futures contracts, with an average purchase price of 210 pounds per ton.

In addition, they had acquired 9 million tons of physical steel from the steel and construction materials markets across the British Isles; since they had acted early, the average price per ton was only 180 pounds.

Furthermore, Li Yunbao and his team also held 120,000 lots of copper contracts and 179,000 lots of aluminum contracts, with average purchase prices of £1,578 and £1,167 per ton, respectively.

After hearing what Li Futao had to say, Li Yi couldn’t help but feel a pang of doubt—these figures didn’t add up!

According to his estimates, the British Isles’ total steel reserves should only be between 80 and 90 million tons. Even when combined with the amount that could be produced over the next three months, the total would be no more than 100 million tons.

After all, the annual steel output of the British Isles currently stands at less than 30 million tons, amounting to just 7 to 8 million tons per quarter.

And since each contract on the London Metal Exchange is for 25 tons, that means—whether you count spot or futures—the total would be only four million contracts.

But clearly, it’s impossible for all that steel to be on the futures market; half of it would be about right—roughly 2 million contracts.

Right now, they alone have secured over 1.5 million contracts. Could it be that all the other consortia combined have only 500,000?

That’s clearly impossible; something’s not quite right over there.

But Li Yi hadn’t yet figured out exactly what the problem was. He planned to head to London once he’d stabilized the situation with Dolsen and the others.

In addition to reporting that the mission was complete, Li Futiao also briefed Li Yi on the situation in London.

Reportedly, the local media and newspapers had been speculating for days that war was imminent, with the opponent being Argentina, South America’s leading power.

As a result, prices for all kinds of goods across the British Isles were rising, including food and energy—especially war-related items, which were changing by the day.

Finally, Li Fuzhao asked Li Yi a question: Was war really about to break out over there?

Li Yi didn’t beat around the bush; he told Li Futiao straight out that the probability of war breaking out between Britain and Argentina was over 80%.

If Li Futiao had asked this question a few days ago, Li Yi might not have answered.

But now it was different. If history remained unchanged, war would break out tomorrow.

That’s right—tomorrow!

As early as the beginning of this year, the half-hearted diplomatic mediation between Britain and Argentina had already failed, and Argentina immediately drew up an operational plan to forcibly occupy the Falkland Islands.

Starting in March, the Argentine Navy began loading troops onto ships at the Port of Belgrano. Various signs pointed to Argentina’s intentions, but British intelligence officers believed that “an invasion would not happen immediately.”

What they never could have imagined was that tomorrow, Argentine President Galtieri would order the invasion of the Falkland Islands, marking the official outbreak of the Falklands War.

Therefore, there is no longer any need to withhold this information. By dawn tomorrow, the whole world will know that Argentina has sent troops to seize the Falkland Islands, and at that point, it will be up to London to decide how to respond.

In fact, by next Monday, April 5, London will publicly declare that the Falkland Islands are part of the United Kingdom, that the island’s residents are subjects loyal to the British Crown, and that they will reclaim the Falkland Islands at any cost.

Subsequently, a large fleet of warships will head to the waters around the Falkland Islands, and the two sides will finally engage in full-scale combat in late April.

Having received Li Yi’s near-certain assurance, Li Fu’s mind was considerably put at ease.

After all, for this investment venture, he had not only entrusted Li Yi with a massive sum of 2 billion Hong Kong dollars, but the company had also invested 200 million pounds—equivalent to 3.4 billion Hong Kong dollars.

That was a staggering sum of over 5 billion, accounting for nearly a third of his net worth.

If anything went wrong, even the Li family, with all its resources, wouldn’t be able to withstand such a loss.

But as long as the war breaks out, this investment is a sure thing!

In fact, commodity prices in London had skyrocketed; the price of strategic materials like metals had already risen by nearly 40% since they entered the market.

In other words, they’re already making money—and making a killing at that.

But Li Futiao knew that whatever they’d earned so far was merely on paper. As long as these futures contracts remained unsold and the funds hadn’t been settled, it held no practical value.

After all, the futures market is a treacherous and unpredictable place; no matter how big a player you are, the tables can turn in an instant.

Especially with commodities like these—no one can guarantee prices will keep rising. They might plummet at any moment.

Sometimes prices can even drop into negative territory—can you even imagine that?

But after hearing Li Yi’s words, Li Futiao felt more confident; at the very least, these futures contracts still had room to rise in the short term.

He didn’t ask Li Yi where he’d gotten the information; he simply hung up the phone, satisfied.

In his eyes, Li Yi had never represented anything other than himself. Even if Li Yi claimed to know the color of a certain country’s first lady’s underwear, Li Fuzhao would believe him.

After all, this man was backed by a powerful nation—wasn’t it perfectly reasonable for him to “predict” that the two countries would go to war?

However, what Li Futao—who had enjoyed a peaceful night’s sleep—didn’t know was that many people had lain awake that very night.

Early the next morning, people in many countries around the world woke up to a piece of news that left them speechless—war had broken out between Britain and Argentina!