Extraordinary Genius Chapter 20 – The price rises

Chapter 20 – The price rises
Feng Yu and his sister had lunch together. In the afternoon, they went to the bank to check the price of Treasury bonds in Bing city. The price of Treasury bonds is still selling at face value. 100 RMB for a 100 RMB bond!
After dinner, Feng Yu and Li Shiqiang boarded the train. Their bags are full of treasury bonds.
Feng Yu lets Li Shiqiang sleep first while he stand guard. When Feng Yu can’t endure his sleepiness, he woke Li Shiqiang up and went to sleep.
As a result, Feng Yu slept till daybreak. Li Shiqiang, on the other hand, smoked for seven hours and didn’t even drink a drop of water did not even go to the toilet.
“Brother Li, why don’t you wake me up?” Feng Yu asked.
“Never mind. You can sleep a while more. Anyway, I can’t sleep too.” Li Shiqiang said with his two red eyes. There is 200,000 RMB worth of Treasury bonds in his bags. How can he fall asleep?
At eight o’clock in the morning, these two appear at ICBC (Industrial and Commercial Bank of China) main entrance. Seeing both of them are carrying a backpack each, the security guard kept looking at them.
“Comrade, do you buy treasury bonds here?” Feng Yu asked.
The bank staff look at Feng Yu surprised. Shen city is the country’s first city to allow secondary trading of Treasury bonds. The banks have been informed in advance and are prepared for Treasury Bonds trading. However, they did not expect that their first customer is someone in his teens.
“Of course, we have received instruction to allow the trading of Treasury bonds.” The bank staff replied.
“How much is the 100 RMB bond?” Feng Yu hastily asked.
The staff replied with a puzzled face: “100 RMB treasury bonds is of course 100 RMB.”
Crash ~ ~ ~
Feng Yu seems to hear the sound of his own heartbreaking.
How is this possible? The price of Treasury bonds has not risen? Is it because this is the first city to allow trading of bonds so the price had not gone up yet?
“What about the 500, 1000 and 5,000?” The Feng Yu asked again.
“500 RMB for 500 RMB bonds, 1000 RMB for 1000 RMB bonds and we do not have 5,000 RMB bonds as of now.” The bank staff replied.
Feng Yu felt that the bank staff is looking at his as if he is an idiot. Feng Yu sat down on the chair dejectedly. Did he remember wrongly? Or, is it because of his appearance and history has deviated from its original path?
“Xiao Yu, it’s fine. Even if we can’t make from selling to the bank, we can still earn from the interest. I had checked. Most of the bonds are maturing in two to three years’ time.” Li Shiqiang patted Feng Yu on his back, trying to comfort him.
“Brother Li, write down the telephone of this bank. Let’s go to CCB (China Construction Bank)!” Feng Yu said.
Feng Yu is not willing to accept this. There must difference in the prices between banks. He does not believe that the prices are also so low at other banks.
But after going to China Construction Bank, the answer they got is exactly the same.
After taking down the bank’s telephone number, they went to the next bank.
This year, China had begun to focus on the development of commercial banks. In addition to the “big four” banks (Industrial and Commercial Bank of China, Bank of China, China Construction Bank and Agricultural Bank of China), other banks, such as Bank of Communications, China Merchants Bank, Everbright Bank, etc. had open branches in many cities.
Feng Yu went personally to every bank to find out how much is the price of the Treasury bonds.
But the price of bonds at the banks are the same. The bonds are trading at face value!
After coming out of the last bank, Feng Yu and Li Shiqiang sat on the steps. They felt tired and powerless.
“Brother Li, give me a cigarette.” Feng Yu said.
“Forget it. Xiao Yu, let’s go back. We had spent quite a lot on taxi today. Maybe the price will rise in future.” Li Shiqiang comfort Feng Yu.
But Feng Yu seems zoned out. He kept thinking if he had remembered wrongly or history had changed. He can’t remember when that guy in his past life began making money from trading bonds. He only remembers it was after all seven cities began trading.
Did he act too early? Is the demand for Treasury Bonds is still too low and result in the price not rising?
Just then, several people drove over to the bank.
“I’m telling you, it’s better to buy Treasury bonds than savings in the bank. It is the same as a fixed deposit but with higher interest. Also, it is to support the nation-building.” One man said.
“But didn’t the Treasury bonds was sold out a few days ago? Did the government release more bonds?” Another man asked.
“No. Have you forgotten where my son works? According to the papers, Treasury bonds are allowed to trading. That is, if you are in need to use the money, you can take the Treasury bonds to the bank and sell to them. Very convenient. You think about this. Those that need money will come and sell their bonds and we can buy those bonds. Most importantly, you don’t have to wait long and you can get five years of interest in a year or two!” The first man replied.
Feng Yu’s eyes were following these people. These are the people who got the news and wants to buy treasury bills.
Since there are buyers, then the price of the bonds will fluctuate. If there is oversupply, the price will not change. But what if there is more demand?
“Brother Li, let’s have lunch first and then come back!” Feng Yu said.
Li Shiqiang wanted to say something but sighed. “Why is he so stubborn? It is also normal for the school teacher to be wrong. With the lads he hired to collect the Treasury bills, they can still earn a lot in a month.” Li Shiqiang thought to himself.
Li Shiqiang had no appetite but Feng Yu finished three big bowls of rice.
Li Shiqiang thought Feng Yu was joking just now. After lunch, Feng Yu really went back to the bank to inquire about the price. But the bonds are still trading at face value.
This time there was not a hint of disappointment in Feng Yu’s eyes. It seems that his self-confidence is back.
They found a small shop with phone and Feng Yu made calls to several banks asking about the price of Treasury bonds.
“Xiao Yu, forget it. Let’s go back.” Li Shiqiang tried to persuade Feng Yu.
“Just a while more.” Feng Yu replied.
Until the last one, Feng Yu still had not given up.
“Xiao Yu, we have gone to Bank of China twice today and the price of the bonds will certainly still be at face value.” Li Shiqiang said.
Feng Yu shook his head and dialed the last number on the paper. The bank will be closing in one hour. Please rise. Please go up!
“Is the Treasury bonds’ price up now?” How much is 100 RMB bonds worth?” Feng Yu asked.
Li Shiqiang sighed, went aside and lit a cigarette. After Feng Yu hangup, he will buy the tickets back to Bing city.
“How much? 100.2 RMB?” Feng Yu asked.
After hanging up the phone, Feng Yu pumped his fist in the air.
The price had gone up! It really went up!
It turned out he was right. The Treasury bonds had risen by several percentage points. It should be because it is the beginning now, so the price did not rise. After some time, the price will be much higher.
“Brother Li, go back to Bank of China!” Feng Yu said excitedly.
Bank of China is the first bank to adjust the price of Treasury bonds because there are many people buying and fewer people selling. The bank staff informed their higher management and they were told by their management to comply with the market. As such, they allow prices to rise up.
When Feng Yu took out his 200,000 RMB worth of the Treasury bonds, the bank staffs were stunned. The little boy had so much treasury bonds!