Chapter 194: The Curse of the Skyscraper

Fanghuan Investment, a company renowned in the financial world, has an internal power structure that is as bizarre as it gets.
Su Hao, nominally elected as the new chairman by unanimous vote, is in reality a hands-off manager.
The company has an unwritten rule—no mundane matter should interfere with Chairman Su's investment "intuition."
Therefore, all the trivial matters and administrative management are dumped on the hardworking vice chairman, Lin Fan.
This arrangement sounds absurd, but the underlying logic is so simple and brutal that it's irrefutable.
First, Su Hao has been instrumental in Fanghuan's current size; he's a walking money-printing machine, the company's anchor.
Letting him manage financial statements? That's like sending an aircraft carrier captain to clean the deck—a complete waste.
Second, with the company already so large, letting this guy roam around with the title of "department director" would be a disgrace to the entire Fanghuan Group.
Thus, a tacit balance was formed:
Lin Fan willingly became the "chief steward," clearing all obstacles for Su Hao so he could focus single-mindedly on his phenomenal performance in that bloodless yet most brutal battlefield.
But now, this chief steward is facing an unprecedented storm.
"Vice Chairman Lin, someone has contacted us again, wanting to buy back a large quantity of our CDS."
"Who?" Lin Fan didn't even look up, his gaze still fixed on the complex report.
"Goldman Sachs. The total amount of CDS they sold us was a whopping ten billion dollars.
If Deutsche Bank really goes under, they'll have to pay back that ten billion in full. I reckon they're panicking."
The air in the office was thick with tension, like the impending storm, even carrying a hint of the aroma of grilled squid—the smell of short sellers being roasted over a fire.
Back when Fang Huan Investment acquired these CDS under Su Hao's direction, the premium rate was a mere 3%.
But now, with the market in turmoil, that rate has skyrocketed to 15%!
Deutsche Bank-related CDS have become a hot potato that no one in the financial market dares to touch.
"Those bastards at Goldman Sachs...do they also think Deutsche Bank is doomed?" Lin Fan finally looked up, frowning.
"Not necessarily. After all, it's a 'too big to fail' TBTF company.
Right now, very few people on Wall Street truly believe it will go bankrupt.
They're probably just paying for peace of mind, to guard against that one-in-a-million 'black swan' event."
Indeed, a behemoth, one of Europe's three major financial giants—who would believe it would really collapse?
—Except for one person.
Their elusive chairman, Su Hao.
"But Chairman Su... is still adamant about not selling, right?"
"Yes. Goldman Sachs, Morgan Stanley, and all the companies with CDS contracts with us have been requesting buybacks at high prices; the doorsteps are practically worn down, but Chairman Su has rejected them all outright."
Lin Fan's heart skipped a beat.
It seems Chairman Su is determined to go all the way, gambling with the entire world to the very end.
"Rumors are circulating that several financial companies, fearing this black swan event might actually occur, have joined forces and begun a massive lobbying campaign, spending lavishly.
They're willing to do anything to pressure the German government and the EU to save Deutsche Bank!"
This is practically a foregone conclusion, a calculated scheme.
After all, Fanghuan Investment currently holds a staggering $30 billion in CDS!
What an insane gamble!
Su Hao only spent a mere 900 million in premiums, yet he wants to swallow a massive 30 billion in compensation!
900 million betting on 30 billion.
This game is far too big, so big that even if CDS itself is a secret over-the-counter transaction, it's impossible to hide it any longer.
"Rumors are starting to circulate in the media that a mysterious force in the East has spent 30 billion to short Deutsche Bank, and major investment banks are joining forces to fight back."
The subordinate's voice carried worry. "There's a high chance our Fanghuan Investment's name will be exposed."
Fanghuan Investment isn't publicly listed, and its market capitalization has always been a mystery to the outside world.
But those in the industry know that, in terms of sheer capital strength, Fanghuan already surpasses most private equity firms in China.
If Su Hao ultimately wins this crazy zero-sum game, then based solely on its own capital, Fanghuan Investment will skyrocket to become a behemoth!
"But... no matter what, Deutsche Bank can't really go bankrupt, can it?"
The subordinate remained worried. "Perhaps... you should try to persuade Chairman Su?"
Lin Fan fell into deep thought.
If I were Su Hao, what would I do?
He asked himself this question, then shook his head with a wry smile.
He didn't possess Su Hao's beastly, "I am the truth" mentality. If someone offered a high price, he'd sell this hot potato immediately.
Frankly, he himself felt the probability of Deutsche Bank collapsing was lower than the Chinese national football team winning the World Cup.
If it weren't for his deeply ingrained trust in Su Hao, he'd rush to Su Hao's office right now and beg him to stop.
Besides, this CDS contract was for five years. If Deutsche Bank actually survived, Fang Huan Investment would have to throw out 900 million every year, resulting in a loss of 4.5 billion US dollars over five years!
"...Never mind." But he quickly dismissed the thought.
His mission was to clear all obstacles for this new god, then sit back, watch closely, and quietly observe how he would once again create a miracle of returns.
“And I have this damn premonition…” Lin Fan muttered to himself,
“Why… do I keep feeling that Chairman Su will win again this time?”
In the financial world, there’s a saying: the “skyscraper curse.”
What is a skyscraper?
It’s a tower of human ambition, an attempt to challenge the heavens.
But every time a skyscraper worthy of being recorded in history rises, an economic crisis inevitably follows.
The Empire State Building, the World Trade Center, the Twin Towers, the Burj Khalifa…
And the giant companies involved in its construction often fall into bankruptcy.
It’s practically a paranormal phenomenon in economics.
And Deutsche Bank, just recently, invested an astronomical sum in a stunningly designed supertall skyscraper project.
Now, that unfinished building looked like a tombstone they had erected for themselves.
***
At the same time, Su Hao stood before the floor-to-ceiling window on the top floor of the chairman's office, overlooking the city's dazzling night view, like a god examining his own mental model.
His phone's news feed was flooded with increasingly glaring financial headlines:
[Deutsche Bank's CDS Sees a 30 Billion Yuan Gamble! The Strongest Zero-Sum Game of the Year!]
[Rumor: The Holder of 30 Billion Yuan in CDS Is a Mysterious Organization from the East?]
[All Experts Unanimously Predict: Deutsche Bank Will Not Collapse!]
The media was in an uproar. Although Fang Huan's name hadn't been mentioned yet, every word was filled with mockery and ridicule of that "mysterious force," as if watching a clown perform his final act of madness.
The whole world was telling him: Deutsche Bank will not fall.
But his almost mystical intuition alone gave him a completely opposite answer.
That's why he rejected all the buyback offers that came his way.
"Judging by the time, it should be about time for a call."
As agreed, Qin Han, who had gone to Europe to act as his "assassin," had already held several rounds of meetings with the heads of major financial groups.
He had promised to inform Su Hao immediately once there was a definite result.
But now, the phone remained silent.
Could it be…
Buzz—
As if hearing his inner call, the phone screen suddenly lit up. It was that number.
Su Hao quickly answered: "Hello, Chairman Qin."
There was a long silence on the other end of the line.
An ominous premonition instantly gripped his heart.
"Chairman Qin?"
Finally, Qin Han's heavy and hoarse voice slowly came through the receiver.
【Brother Su… I'm sorry.】