In view of the current demon nickel incident, let's first take a look at the origin of Qingshan Holdings. Qingshan Holdings is the largest enterprise in Wenzhou and the largest private steel enterprise in China. It is the first giant in Wenzhou to enter the world's top 500, with an annual income of nearly 300 billion in 202/kloc-0. Among the top 500 enterprises in the world, it ranks around 200. What is this concept? Earn 800 million almost every morning. Qingshan Holdings once became a stainless steel enterprise that successfully went to Indonesia by virtue of the technological advantages of "Belt and Road", refined operation, infrastructure and external financial support, and got rid of the passive state of smelting enterprises to the change of international nickel price. After the rise of new energy vehicles, the mastery of nickel resources has become an important guarantee for the development of power battery industry chain.

Why hold a short contract?

Under normal circumstances, the market pursues buying low and selling high. In order to crack down on domestic enterprises, foreign capital attracts holders to sell shares by raising prices and buy all these shares. If Qingshan Holdings can't provide enough corresponding spot, it can only close down and be successfully crushed by foreign capital. At present, Qingshan can provide enough cash, and foreign investors can only buy high and sell low, otherwise they will only lose more and more with a pile of things that are not used much.

Qingshan produced its own nickel, and then bought 200,000 empty nickel. At this time, his idea is that he is in a risk hedging situation, either producing it to make money at a higher price, or the price of the empty nickel he bought drops to make money, and both sides always make money. This method is called hedging, which is a very normal and common financial operation. As a producer of nickel, the price fluctuation of nickel will directly affect the profit or loss of enterprises. Therefore, in order to prevent the uncertain risks caused by price fluctuations, enterprises will choose to short nickel in the financial market, so that if the price of nickel falls, although the spot market can't make money, the futures market can offset this loss. Similarly, if the price rises, enterprises can also make profits in the spot market, and they can choose physical delivery to close the empty orders in the futures market.