The abnormal spike in foodstuff prices attracted the attention of Somergrain, who was already closely monitoring the prices of foodstuffs. Almost immediately, Somergrain contacted Jasper.
Then, a large number of sell orders immediately appeared in the market.
The price of foodstuff was locked firmly within 5% to 8% of the price increase before the opening. Although there were fluctuations, no matter how much Soros devoured in the future, Somergrain could still hedge these orders by selling them.
Narrowing his eyes slightly, Jasper said, “We’re going to enter a tug of war.”
In the domestic futures market, the trading volume of the foodstuff sector was exponential, and the largest trading parties were the buyers led by Quantum Fund and the sellers led by Somergrain.
Just ten minutes after the opening, the trading volume of both parties exceeded 1 billion Somer Dollars. This trading volume was already comparable to the sum of other trading varieties at the same time.
One had to know that this was only more than ten minutes after the opening and it was equivalent to a turnover rate of 100 million Somer Dollars per minute.
Baz was overwhelmed by emotion. He whispered, “Mr. Laine, once the situation is in a tug of war, it is actually not good for us.”
“Yes, if foreign institutions continue to long domestic foodstuffs, it will cause panic in the market. If there are people who want to stir public opinions to trigger citizens to stock up on foodstuff, then it is likely to cause social unrest.”
Jasper agreed with what Baz said, and at the same time, favonovel.com began to think about what happened when Somerland was facing the foodstuff war in his previous life.
He could not remember the details, but at that time, favonovel.com remembered that several places had issued administrative orders restricting the purchase of foodstuff and cooking oil. Because of this, the people who were already panicked at the time became even more panicked.
Had it not been for the trust of the people of Somerland in the government, something terribly wrong might have happened at that time.
“This is easy to solve.”
Celine, who had been silent for a long time, said suddenly, “If the price of foodstuff has fallen, we should fully open up the inventory so that the people can see that the government has enough food for everyone.”
These words caught the attention of both Jasper and Baz.
Celine went on to explain, “It’s the same with bank runs. Usually, the run occurs because people start to lose their trust in the bank, and they believe that the bank is losing money and is facing bankruptcy. They’re worried about losing their assets in the bank, so they will be anxious to withdraw their deposits from the bank.”
“But if there is sufficient persuasive evidence to tell everyone that this bank has sufficient capital and everyone’s welcome to withdraw money at any time they want, no one will believe that the bank will go bankrupt.”
“But if you limit the amount and frequency of withdrawals for everyone, then this bad news will intensify, and eventually the it will become a self-fulfilling prophecy and the bank will really go bankrupt. The key to the question is, does the bank really have that much money?”
Celine looked at Jasper with blazing eyes and said with a smile.
Jasper sighed softly and smiled. “Unfortunately, this bank has a lot of money.”
“Then you don’t need to worry, let them continue this tug of war. This kind of transaction in which you buy what I sell is based on how deep the pockets of both parties are anyway. One fight for foodstuff stock and the other for the abundance of funds. Whoever empties his pocket first loses.”
Jasper thought for a while and finally decided that favonovel.com should not interfere too much in the foodstuff trade war. The higher-ups would know what to do with this.
He already had a lot on his plate and if favonovel.com said or did more, favonovel.com was likely to burn himself.
Now that the financial war had reached this point, Jasper had to start to consider the situation of himself and JW after the financial war. What the higher-ups needed was a positive benchmark to face society, so this was his golden opportunity. However, there were risks behind the opportunity, which was, the higher-ups were absolutely unwilling to see a political businessman who would criticize the actions of the government.
“Mr. Laine, the press conference has begun.” Baz‘s reminder made Jasper turn his attention to another screen.
Currently, the news was showing the scene of the press conference of the chairman of the Somerland Securities Regulatory Commission and several leading state-owned enterprises.
At eight o’clock, the quiet and solemn official press conference immediately announced to all of society the news of the centralized listing of state-owned enterprises.
This news could be said to have caught everyone by surprise. Even foreigners knew that under the special social system of Somerland, state-owned enterprises were truly behemoths.
Especially after undergoing the reform of state-owned enterprises and the stripping of most of the rotten assets that had been rendered ineffective, the remaining state-owned enterprises were super giants that had monopoly positions in special industries where they had no competitors at all.
The influence it brought was absolutely beyond ordinary people’s imagination.
What determined the stock price of a listed company?
Some say it could be determined by capital, but it was only needed for speculation. Capital acted as a promoter to suppress or push up a company’s stock price, so it would always only be temporary and could not last forever.
Only the profitability and business ability of the company could really determine its price. If the company’s prospects were good enough and it was profitable, it would naturally be welcomed by the market, while the stock value would also match its true market value.
As for state-owned enterprises, their state-owned nature made them destined to never fail, and their monopoly of the market determined that their profitability always exceeded that of private enterprises and that there was no fear of them not making money at all.
For example, Somerland Petroleum, PetroSomer, and the not so well-known offshore oil corporation were monopolists in the domestic oil industry. Even the oil from the private gas stations that ordinary people saw on the side of the road were purchased from the two major oil companies. Aside from Somerland Petroleum, PetroSomer, and Offshore Oil Corporation, no other industries were allowed to set foot in the private oil industry in Somerland.
The communications industry was even more extreme. With this premise in mind, the news immediately caused an uproar around the globe when it was announced at the press conference.
Soros, who got the news right after that, was furious.
“It’s here! Somerland’s countermeasures are finally here!”
“Promoting the listing of state-owned enterprises and driving market funds into the stock market to maintain the stability of the market? This has your name all over it, Jasper!”
