As the helmsman of the Quantum Fund, while Soros continues to make profits in the international financial market, he will naturally understand all aspects of the situation. Knowing the enemy and knowing the enemy, you can not be defeated in a hundred battles, in such a situation, Feiyuan Investment soon entered his sight.

As an internationally renowned investment master, Soros has never looked down on Orientals, and always thinks that Orientals don't understand the economy at all, but the rise of Feiyuan Investment in the past two years has surprised him. Feiyuan Investment from an obscure small investment company, established in just a few years, the capital from millions of dollars, snowballing like a swelling, every international financial changes can be seen in its figure, and will take away a large amount of money, as if they know in advance the whole market changes, every time can properly control the rhythm and trend, so as to obtain a large number of extremely rich, prohibitive profits.

The rise of Feiyuan has become a miracle in the international financial market, and the growth is unprecedented in the world, and I dare not say that it is the last, but at least it is unprecedented. There are even many companies that regard him as a weather vane, a barometer, as long as Feiyuan Investment is heavily involved, it will cause a trend to follow. In such a situation, although the income of the quantum fund is also considerable, compared with Feiyuan, it completely loses its luster.

In order to understand Feiyuan Investment as much as possible, Soros spent a lot of effort to investigate this company, although the headquarters of Feiyuan Investment is set up in Hong Kong, but the registered place is the British Virgin Islands, which is nothing more than two purposes, one is to hide people's eyes and ears, and do not want others to know too much about the company's background; The second is reasonable tax avoidance, because the Virgin Islands registered company only charges management fees, and does not charge any taxes, so it can save a lot of taxes.

Soros has carefully studied every investment of Feiyuan, but the more he looks at it, the more shocked he becomes, every intervention and exit, the timing is appropriate, and every time it seems to be able to obtain a huge return of several times or even dozens of times the investment. Soros once confidently believed that his talent and ability for capital operation were second to none in the world, but it was a bit embarrassing to compare with every near-perfect operation of Feiyuan Investment, which seemed to be on a par with Firefly and Haoyue.

The anomaly in the Japanese stock market has long caught Soros's attention. While the entire island of Japan is indulged in unprecedented prosperity and madness. People even firmly believe that the myth of Yamato, where stock prices only rise and fall, and land prices that only rise and fall, will never break, even if the Nikkei Stock Average fell sharply after reaching an all-time high on the 29th of the month, when the "Nihon Keizai Shimbun" made a stock market forecast for 20 famous entrepreneurs, everyone was unanimously optimistic that the stock price in 1990 would continue to rise to the point that Soros believed that if God wants people to perish, he must first make people crazy. The Japanese economy has already fallen into extreme madness, so death is not far away.

To this end, he mobilized more than 20 billion US dollars to enter the Japanese market, and took advantage of the last crazy moment to make more than 30 billion yuan from Japan, earning 150% in just half a year, which has created a miracle in the international financial market. But what frustrated him was that this Feiyuan company had invested only billions of dollars, but the income had already passed through its own quantum fund, and they did not stop there, but bought all the funds into falling stock index futures.

Soros thinks that he is crazy in terms of capital operation, and when he makes high-risk, large-scale decisions, he relies on the courage and iron will of others, and he can handle it calmly, as if he is out of the matter. Perhaps one of the biggest secrets of his ability to continue to create myths in the world of finance is that he has the psychological qualities of a human being. But this Feiyuan investment is obviously bolder and more crazy than himself.

Although Soros has long known that the person in charge of Feiyuan Investment is a Chinese named Zhu Jianjun, and many industry insiders call him a "golden finger", he obviously does not believe that this young man in his twenties can create such brilliance. In his opinion, behind Feiyuan Investment, there must be a strong and powerful think tank team, and maybe even the shadow of the country, otherwise it is impossible to show this company to its current scale and strength with just a little-known Zhu Jianjun.

With these speculations, and comparing the situation between Quantum Fund and Feiyuan Investment, Soros couldn't help but have the idea of cooperating with Feiyuan. In his opinion, if you can join forces with such a company and form an alliance, then the financial order of this world is not up to you?

Although the Quantum Fund is not as famous as later generations, it is still very strong in the international financial market, and Soros himself considers himself a figure. But what annoyed him was that Feiyuan Investment obviously didn't pay much attention to it, and he was closed for the first time, and he didn't even see Zhu Jianjun.

But the more this is the case, the more firm his judgment on himself, if it is not for the strong background behind him, and he has full confidence in his own strength, how can he refuse such a good thing?

Therefore, Soros is not discouraged, nor does he have the luxury of expecting one or two contacts to achieve his goal.

At his insistence, he finally met Zhu Jianjun, who was nominally in charge, but the other party was not enthusiastic about cooperation, but proposed a plan to invest in quantum funds. Soros was a big surprise.

The Quantum Fund evolved from the Double Eagle Fund, the brainchild of Soros and Rogers, like a child, brought up by his own hands, full of feelings, they never thought that one day they would let this child give it to others. However, Zhu Jianjun's conditions are very tempting: to inject $10 billion in capital, only require 51% of the fund's equity, and the name and management of the fund will not change. Feiyuan only requires absolute dominance when formulating investment directions.

Don't look at this robbery of Japan, the quantum fund has invested more than 20 billion yuan and harvested more than 30 billion yuan, but the vast majority of them are financed and are helping investors make money, and the fund only charges management fees and remuneration, and the total value of the real fund's own assets was only 6 billion US dollars in 1997. Therefore, Feiyuan Investment's move, it can be said that even if Soros does nothing now, after the injection of $10 billion is in place, the strength of the quantum fund will not only be greatly improved, but Soros's personal assets will also increase several times on the original basis.

As for the issue of investment dominance, in fact, Soros doesn't particularly care about it, because the investment vision and methods shown by Feiyuan Investment over the years are far from himself, so why do you have to fight for this right? As long as Feiyuan's decision-making can make the fund more successful and rewarding, then why should I refuse?

After repeated consideration, seeing Feiyuan Investment make another big profit on the stock index futures purchased in Japan, and poached hundreds of billions of dollars in Japan in the first half of the year, Soros finally agreed with Zhu Jianjun's opinion, and the two sides secretly signed an agreement, and the quantum fund has quietly changed hands without the world's knowledge.

After signing the agreement, Soros proposed the next investment plan, which is to snipe the British currency.

Britain joined the European Exchange Rate System, a new monetary system created by Western European countries. Soros believes that Britain has made a decisive mistake and will be able to make extraordinary profits if it seizes this once-in-a-lifetime opportunity.

However, as soon as he put forward this point, Zhu Jianjun had already put the entire set of sniper plans on his desk, and he was shocked to see it. The views coincide with their own, and they have made bold and reasonable predictions about the international situation, and in many operational links, they are very detailed, even if a person who does not understand finance gets this plan, it can be easily implemented step by step according to the plan. More comprehensive and meticulous than I thought. If the situation predicted in the plan becomes a reality, then incomplete statistics, the profit from this investment will be far more than 200% of the initial projection, and may even be reached

Seeing this plan, Soros was greatly moved, no wonder Feiyuan Company is extremely agile every time it invests, good at seizing investment opportunities, once the time is ripe, the reaction is God, and one blow will be hit. With such a wise operation plan, how can it not be successful? When he asked to meet the formulator of the investment plan, he politely declined to Zhu Jianjun. Although Soros is a little disappointed by this, he can also understand that reputation is sometimes not a good thing for an investor, but only brings disaster, and he believes that such a near-perfect plan that requires a lot of careful investigation and research and analysis will definitely not be something that can be formulated by one person.

But even so, Soros is very glad that he accepted Feiyuan as the owner, otherwise, there is such a powerful competitor, even if he mobilizes a huge amount of money, he can only drink some soup at most, and all the meat is snatched away by Feiyuan Investment. And now, it's easy to savor the meal.

In fact, he didn't know that Leng Binghan had improved Soros's own operations in his previous life according to the actual situation, making the sniping more effective and effective.

The pound has been the world's major currency for 200 years, and when it was originally pegged to gold, the pound occupied an extremely important position in the world's financial markets. It was only the First World War and the stock market crash of 1929 that forced the British government to abandon the gold standard and adopt a floating system, and the pound's position in the world market continued to decline. The Bank of England, as an important institution to ensure market stability, is a strong pillar of the British financial system, with extremely rich market experience and strong strength. No one has ever dared to stand up to the country's financial system.

Because the European exchange rate system will allow the currencies of Western European countries to no longer pin gold or dollars, but to each other; Each currency is only allowed to float within a certain exchange rate range, and once the prescribed exchange rate fluctuation range is exceeded, the central banks of each member country have the responsibility to intervene in the market by buying and selling their own currencies to stabilize the exchange rate of their currencies within the prescribed range; Within the prescribed exchange rate fluctuations, the currencies of member countries can float relative to the currencies of other member countries, with the Deutsche Mark as the core. Long before Britain joined the European exchange rate system, the exchange rate between the British pound and the Deutsche mark had stabilized at the level of 2.95 marks per pound sterling. But Britain was in recession at the time, and joining the European exchange rate system on the condition of maintaining such a high exchange rate was extremely expensive for Britain. On the one hand, it will lead to Britain's dependence on Germany, and it will not be able to act boldly to solve its own economic problems, how to raise or lower interest rates, and promote the depreciation of its own currency in order to protect its own economic interests; On the other hand, it is doubtful that the Bank of England will be able to maintain its high exchange rate sufficiently.

In particular, on the 7th of July, the 12 member states of the European Union signed the Maastricht Treaty. As a result of this treaty, some European currencies such as the pound sterling and the Italian lira are obviously overvalued, and the central banks of these countries will face enormous pressure to cut interest rates or depreciate their values. If these countries are unable to resist market turmoil, will Germany, as a core country, sacrifice its own national interests to help these countries?

Market insights are everything, and wrong insights can lead to self-destruction. Soros's genius lies in foreseeing future trends faster than others. At the time of the Maastricht Treaty, it was foreseen that the European exchange rate system would be difficult to harmonize because of the economic power of each country and the national interests of each country. As soon as some of the "chains" that make up the European exchange rate system loosen, speculators like him will take advantage of the situation and attack these loose "chains", while other followers of the trend will also take advantage of the wind, making the exchange rate more volatile, and eventually relying on the wind-chasing mechanism will be much greater than the market can accept them, until the whole mechanism is destroyed.

Indeed, less than a year after the Maastricht Treaty was signed, it was difficult for some European countries to coordinate their economic policies. When the British economy is in a long-term recession and is in a difficult situation, it is impossible for the UK to maintain a policy of high interest rates, and the only feasible way to stimulate the development of the domestic economy is to lower interest rates. But if Germany's interest rates are not lowered, and the UK unilaterally cuts them, it will weaken the pound and force Britain to withdraw from the European exchange rate system. Although the British Prime Minister John? Mejerdo has repeatedly stated that Britain will stick to its policy of maintaining the value of the pound under the European exchange rate system, but Soros and other speculators have been expanding the size of their positions over the past few months in preparation for a sniping on the pound.

As time went on, the British government's economic policy of maintaining high interest rates came under increasing pressure, and it asked the Bundesbank to lower interest rates, but the Bundesbank rejected the British request for interest rate cuts, fearing that the rate cut would cause inflation in the country and could lead to economic collapse. The British economy is in recession, and the British government needs to devalue the pound to stimulate exports, but the British government is constrained by the European exchange rate system and must struggle to maintain the pound to the mark at around 1. The British government's policy of high interest rates has been questioned by many financial experts, and domestic business leaders have also strongly demanded lower interest rates.

The British government has ordered the Bank of England to buy £3.3 billion to intervene in the market in order to prevent speculators from making the pound lower than the lower limit set by the European exchange rate system.2 But the government's intervention did not produce good expectations, which made Soros even more convinced of his previous judgment, and he decided to strike when the crisis came to the fore.

In January, speculators began to attack the weak currencies of the European exchange rate system, including the British pound and the Italian lira. Soros and some long-term arbitrage mutual funds and multinational corporations have dumped weak European currencies in the market, forcing the central banks of these countries to spend huge sums of money to support the value of their currencies.

The British government's plan to borrow trillions of pounds from the International Banking Organization to stop the pound from depreciating further is a drop in the bucket. Soros alone spent $10 billion in this battle with the British government. Soros sold $7 billion in pounds sterling and bought $6 billion in a strong currency, the mark, in this sky-high gamble, and at the same time, considering that the depreciation (appreciation) of a country's currency usually leads to the rise (fall) of the country's stock market, Soros bought another $500 million worth of British stocks and sold a huge amount of German stocks. If Soros is the only one to compete with Britain, the British government may still have a glimmer of hope, but the participation of many speculators in the world has made the disparity of power between the two sides of this contest huge, and the British government is doomed to failure.

After placing the bet, Soros began to wait for the middle of the month for the crisis to finally explode. Rumours of an imminent depreciation of the Italian lira are circulating in the market, and there is a huge pouring of lira selling. The Italian lira depreciated by 7 per cent, and while still within the limits of the European exchange rate system, the picture looks pessimistic. This gives Soros ample reason to believe that some members of the European exchange rate system will not eventually allow the European exchange rate system to determine the value of their own currencies, and these countries will withdraw from the European exchange rate system.

On the 15th, Soros decided to short the pound in large quantities. The pound fell all the way to 2.80 against the mark, and although there was news that the Bank of England bought 3 billion pounds, it was not able to stop the pound from falling. By the end of the evening, the pound had fallen almost to the lower limit of the European exchange rate system against the mark. The pound is on the verge of leaving the European exchange rate system.

The Chancellor of the Exchequer has taken various measures to deal with the crisis. First, he once again asked Germany to lower interest rates, but Germany once again refused; In desperation, he asked the prime minister to raise the interest rate in his country2, hoping to attract the return of money through high interest rates. During the day, the Bank of England raised the interest rate twice, which reached 15%, but with little effect, and the pound did not stand above the minimum of 2.778. In this campaign to defend the pound, the British government used $26.9 billion worth of foreign exchange reserves, but ultimately suffered a crushing defeat and was forced to withdraw from the European exchange rate system. The British call the 15th of the month, the day of the exit from the European exchange rate system, "Black Wednesday". Subsequently, Italy and Spain also announced their withdrawal from the European exchange rate system. The Italian lira and the Spanish competition towers began to depreciate significantly.

But as another side of the battle with the British government, Soros was the biggest winner in the attack on the pound, which The Economist magazine called "the man who broke the Bank of England". In the two weeks of Black Wednesday, Soros has made a profit of nearly $1 billion from short trading in the pound, and long trading on interest rate futures in the United Kingdom, France and Germany and short trading on the Italian lira have made his total profit of up to $2 billion, of which Soros has personal income of 1/3. In the year, Soros's fund grew, and he also made it to the top of Financial World's Wall Street income rankings for netting $650 million.

Now, with Leng Binghan's improved sniper plan, coupled with Feiyuan Investment as a strong backing, he has controlled hundreds of billions of dollars of funds this time using the principle of leverage. After dominating the international financial market for so long, it is the first time that Soros has controlled such a huge amount of money to create a miracle of an individual's victory over a country.

And just when Soros was secretly laying out according to the cold plan, Zhu Jianjun, who was preparing for the wedding in Hong Kong, was assigned to the Soviet Union by the "evil" cold. The task given to him was also very simple, that is, to use Feiyuan's investment as a guarantee, to dredge up various relations, to take out large loans in major Soviet banks, and to use these loans to purchase various facilities such as the Soviet oil fields in Siberia.

The collapse of the Soviet Union was imminent, and such an opportunity for the Soviet Union to be in a difficult state would not be missed. And at present, corruption is rife among the privileged strata of the Soviet Union, and as long as there are enough benefits, there is nothing they dare not do. Therefore, under Zhu Jianjun's silver bullet offensive, it was easy to obtain a ten-year loan of 70 billion rubles, equivalent to more than $80 billion, from major Soviet banks. However, it is more difficult to purchase oil fields, compared with the current state ownership system in the Soviet Union, and the Romeshkin oil field, Samatlol oil field, and Tyumen oil field are not sold.

But Leng Binghan doesn't mind, the oil fields that can be bought are better, and it doesn't matter if he can't buy them, his main purpose is to take out a loan.

On 19 July, conservatives in the CPSU staged an unsuccessful coup d'état, placing Soviet President Mikhail Gorbachev, who was on vacation on the shores of the Black Sea, in an attempt to reclaim the powers delegated to the union republics and put an end to the unsuccessful economic reforms. But with the joint opposition of the people, the army and the majority of CPSU members, the coup d'état lasted only 3 days and failed. Although Gorbachev was reinstated after the coup d'état, the Central Committee of the Union was no longer able to control the separatist forces in the union republics, which had been greatly strengthened in the process of quelling the coup. Russian President Boris Yeltsin ordered the declaration of the CPSU as an illegal organization and restrictions on its activities on the territory of Russia.

The collapse of the Soviet Union had a huge impact on the economies of the former republics. Taking Russia as an example, the official exchange rate of the Soviet Union was about 0.87 rubles per US dollar, but by the first day of the month after the disintegration, the official exchange rate had become one dollar to ruble, and the exchange rate on the 31st of the month had reached 1,012 rubles to one dollar to 1,012 rubles. The ruble change carried out by the Russian government still could not stop the wave of exchange rate depreciation, and on January 1, 1 dollar was exchanged for 28.5 rubles of old rubles.

According to this calculation, when Feiyuan Company borrowed more than $80 billion in the first half of 1991 and repaid it when it was due, it only needed to repay more than $3 million with principal and interest. For such a generous donation from the Soviet Union, Leng Binghan could only laugh unceremoniously.