Reborn since 1993

Chapter 1413 Rules are meant to be broken...

Hong Kong stocks are not Nasdaq, and Zhongguancun is not Silicon Valley.

An internet company that originated in Zhongguancun went public on the Hong Kong Stock Exchange, and its market value reached HK$20 billion on the first day of trading. This is almost a groundbreaking event in the Chinese internet industry.

Yes, Feiyan Technology's market value is even higher on Nasdaq today. Since acquiring the music copyrights of the four major record labels, Feiyan Technology's market value has soared to over $40 billion, making it one of the flagship internet stocks on Nasdaq.

However, the reason why Feiyan Technology has such a high market value is mainly due to its internet business, including Himalaya FM and Himalaya Music, which are primarily based in the American market. Naturally, Wall Street has a higher level of recognition for Feiyan Technology.

In fact, many people, even in China, do not regard Feiyan Technology as a purely Chinese internet company, because more than 60% to 70% of its internet users are overseas.

The reason why China.com was able to obtain a valuation of $4.2 billion is mainly because it was going to be listed on Nasdaq, and Wall Street paid for it.

If they were listed on the Hong Kong Stock Exchange, neither Feiyan Technology nor China.com could have achieved such a high market capitalization.

3721 is listed on the Hong Kong Stock Exchange, which is a listing mainly for Chinese internet users and Chinese capital. If it can achieve a market value of 20 billion Hong Kong dollars, frankly speaking, that is quite astonishing!

At least Zhang Shuxin and Jiang Zuoxian were shocked. If things really go according to Li Dashanren's prediction, they could all imagine that the internet, Chinese investment circles, and even the Hong Kong Stock Exchange would go completely crazy this time.

It's easy to imagine that after 3721 goes public, internet companies in Zhongguancun will be highly sought after, and listing in Hong Kong will become a trend. Various investment institutions will hype up these internet companies, and countless retail investors will also chase after them frantically, all because it's profitable!

Not only Zhang Shuxin and his wife, but also the entire Zhongguancun, as well as internet companies in Shenzhen, Shanghai, Hangzhou, Guangzhou and other places, are paying close attention to today's 3721.

……

In Hangzhou, Alibaba's Jack Ma and Cai Chongxin, who recently joined Alibaba, were also watching the news on television.

Alibaba still hasn't secured a massive venture capital investment that could transform the company, but in its efforts to reach venture capital firms, it attracted Cai Chongxin, a former executive at the Asian arm of the Swedish investment giant, to join its team.

Sometimes in this world, there really is no logic to it; the aura of a king can make people bow down in submission. Whether this phenomenon truly exists is hard to say.

But Alibaba's CEO, Jack Ma, is indeed exceptional. Just as Steve Jobs's reality distortion technique only appeared at product launches, Jack Ma's eloquence has the power to make people willingly give up a $700,000 annual salary.

No one can say for sure why Cai Chongxin, who comes from a family of law students and has two degrees from Yale University, would give up an annual salary of hundreds of thousands of dollars and be willing to come to Alibaba to earn five hundred yuan a month.

But it did happen. Cai Chongxin has now joined Alibaba as its nineteenth employee and serves as its Chief Financial Officer.

When Cai Chongxin joined Alibaba, he immediately determined the equity distribution, which established Alibaba's rules and systems, and it was no longer a makeshift team.

"After 3721 goes public, the situation of the domestic internet industry is likely to change completely. If 3721 performs well, then mainland China, Hong Kong, Southeast Asia, Middle Eastern oil-producing countries, and even Wall Street institutions will turn their attention to mainland internet companies. This is an opportunity for Alibaba!"

Cai Chongxin explained to Alibaba's Jack Ma that after joining Alibaba, he began using his past connections to help Alibaba contact overseas venture capital firms, and some progress has already been made.

"Joe, what do you think it will be like when Alibaba goes public in Hong Kong?"

Watching Zhou Hongyi on television, giving a media interview and speaking with great confidence, Mr. Ma looked intently at Cai Chongxin and asked a question.

Although Alibaba's first venture capital investment has not yet been secured, it doesn't stop Jack Ma from mentioning the scenario of Alibaba going public in the future.

If an outsider heard this, they would probably think that Mr. Ma was too arrogant. He can barely afford to eat, yet he still wants to become a billionaire.

But Tsai Chung-hsin just fell for Jack Ma's rhetoric. He had only ever seen this kind of confidence in people in Silicon Valley. If a person doesn't even believe in himself, how can he expect others to believe in him?

Cai Chongxin felt that whatever Jack Ma boasted about would definitely come true in the future.

Mr. Ma had just exchanged a few words with Cai Chongxin when he saw on TV Li Dashanren's prediction for 3721. Mr. Ma, who had been talking so eloquently just moments before, suddenly fell silent.

With an estimated market capitalization of HK$20 billion after listing, Alibaba is now almost incomparable to 3721!
But there was no frustration in Mr. Ma's eyes, but rather even more enthusiasm. Given Mr. Ma's personality, he saw that if Zhou Hongyi was standing here today, why couldn't it be him in the future?
“Once Li Dongling returns to the mainland, I think we should pay him a visit!” Boss Ma said to Cai Chongxin.

Upon hearing Jack Ma's words, Cai Chongxin slowly nodded. He didn't have many thoughts on the matter, but he felt that bringing Dongke into Alibaba's investment portfolio might be a good opportunity for Alibaba.

"Masayoshi Son of SoftBank is setting up a Vision Fund of more than $30 billion to make large-scale investments in the global internet."

I've been in contact with Goldman Sachs, and I'm also interested in Alibaba.

If Dongke is brought in, Alibaba has the opportunity to obtain more funding while giving up less equity!

Cai Chongxin's idea is to use Dongke to counterbalance SoftBank and Goldman Sachs. If these giants fight each other, Alibaba will definitely be the winner in the end!
……

"It's open!"

When Zhou Hongyi forcefully struck a bronze gong, over a meter in diameter, symbolizing a resounding success and a prosperous opening, the sound echoed throughout the listing ceremony hall. At that moment, the stock, directly using the ticker symbol 3721, appeared on the Hong Kong Stock Exchange. The listing of 3721 broke a series of conventions in the Hong Kong stock market, including approval processes and stock codes. This time, 3721 did not use any other code, but directly used its own name as its code on the Hong Kong Stock Exchange!
This kind of treatment is unprecedented for stocks listed in Hong Kong, which shows just how much determination and investment the Hong Kong government has made in the Silicon Harbor project.

If a rule cannot be broken, it means it lacks weight and qualification. When a rule has absolute value, it can be broken and modified!

When the stock code 3721 appeared on the electronic screen, everyone's eyes were fixed on the screen.

……

Lu Dongliang, who has started trading stocks at home using his computer, watched the news reports on TV while keeping an eye on the stock price trend of 3721.

He just browsed the stock section of the Tianya Hong Kong forum. The Hong Kong version of Tianya forum has developed quite rapidly and has become one of the mainstream forums in Hong Kong. After all, where in the world is there a place where people don't need to post nonsense and argue?
The stock market is mostly discussing 3721, and also talking about Li Dongling's statement that 3721's share price could reach HK$31.2 today and surge to HK$100.

Some people believe that Li Dongling is trying to trick investors into buying shares, since the Zhixing Foundation, the major shareholder of 3721, is Li Dongling's. The higher the stock price of 3721 rises, the higher Li Dongling's net worth will rise.

However, some people believe that 3721 is currently too popular. The subscription rate of more than 150 times when it issued shares is enough to show how popular it is. Who knows, 3721 might actually make a big splash today.

However, Lu Dongliang observed that most people on the Hong Kong Stock Exchange forum were inclined to wait and see, and he also leaned towards this view. After all, the internet was a new concept in Hong Kong stocks, and no one knew whether Hong Kong stock investors would accept it.

As the market opened, Lü Dongliang stared at the stock price of 3721. Nearly thirty seconds after the opening, the opening price of 3721 was HK$31.2, and there was no fluctuation at all.

For a moment, Lü Dongliang even wondered if there was something wrong with the computer. He had never seen such a nearly frozen stock screen before, as if no one was selling 3721 shares.

Thinking of this, Lü Dongliang suddenly froze, staring at the page on the computer, a ridiculous thought popped into his head: Could it be that no one who bought 3721 public shares is actually selling them?

Almost a minute later, someone, out of curiosity, tentatively sold a few lots of 3721 stock, and the computer screen finally started to fluctuate. Lü Dongliang finally breathed a sigh of relief.

At this moment, sell orders finally started to appear. Lu Dongliang glanced at it a few times and the stock price began to rise, but there was nothing particularly surprising about it. Which newly listed stock doesn't have a surge in price? If it doesn't rise, how will retail investors take over?

Lu Dongliang got up to pour himself a glass of water. When he returned, he saw that the stock price of 3721 had risen by 10% to HK$34.2.

Such a price increase would be considered "ordinary" in the context of Hong Kong stocks, which have no price fluctuation limits, and there's nothing surprising about it.

Lu Dongliang decided to wait half an hour before checking again, hoping to find some clues then. He then went to Cyberport's stock page and saw that Cyberport's performance today was "ordinary" with no unusual activity.

If 3721 really explodes today, then Cyberport, which invested in 3721 and spearheaded the Silicon Harbor project, should also be a major player.

After checking Cyberport, stock forums, and various data, Lu Dongliang returned to 3721 stock. When he saw the page, he felt a little dizzy and wondered if he had misread it.

HK$46.80 is the current share price of 3721, which has surged by 50%!

This increase is already higher than the daily increase of many Hong Kong-listed companies on their first day of trading.

Just now, Lü Dongliang was inclined to wait, fearing that the stock price of 3721 might suddenly fall below its previous level. Now, however, he feels that it seems to have risen a bit too high!
Just as Lü Dongliang was hesitating, he saw the stock price of 3721 suddenly rise as if it had been forcibly pulled up. At this point, 3721 had already risen 70% from its opening price!

When the stock price reached HK$53, it became clear that more people started selling their 3721 shares, indicating that some were choosing to cash out.

A 70% increase is more than enough for a stock. It's very likely that a correction will follow, and it won't be able to reach this price again for several years. Why not sell and keep it to pass on to the next generation as a family heirloom? This isn't some oil company where one share can be passed down for three generations.

Seeing the stock price stagnate, with both sell and buy orders increasing and the price even falling to around HK$50, Lu Dongliang was caught in a dilemma: should he buy 3721?
Common sense told him that at this point, he should run as far away as possible; if he bought 3721, he might be stuck at the top of the mountain.

But another voice in my head was saying that stocks are against human nature, and 3721 is a stock with both Dongke and Cyberport concepts.

In Hong Kong, there isn't a sector called "Dongke concept stocks" yet, but in the mainland, if a stock is touted as a Dongke concept stock, then all you need to do is wait for it to hit the daily limit up.

Moreover, Lu Dongliang amassed his fortune of tens of millions through Cyberport, and now it remains to be seen whether he dares to take this gamble!

Heaven and hell are separated by a single thought!
"Buy me two million Hong Kong dollars worth of 3721 shares!"

When Lü Dongliang hung up the phone with his stockbroker, he felt his palms were sweating.

After making the purchase, Lü Dongliang saw that the stock price of 3721 had fallen below HK$50, which made him anxious. He didn't want to look at it anymore and exited the stock page. He was afraid that if he looked any longer, he would be unable to resist selling the stock.

……

Just as Lü Dongliang closed the stock page, a group of traders were working busily in an office building in Hong Kong.

The leader, who had been holding the phone the whole time, immediately shouted to the traders in the office area when an order came through the phone, "Boss Zhang has spoken, keep buying! No need to wait, buy as much 3721 stock as you can, don't worry about the price!"

(End of this chapter)