The Red Era: Living in Seclusion in a Siheyuan as a Boss

Chapter 788 The Two Giants of Yanjing's Investment World!
Du Wenming smiled slightly and took a sip of the red wine in his glass.

He knew all too well that in this ever-changing financial world, every accurate prediction could mean the gain or loss of hundreds of millions of dollars.

A gentle sea breeze blew across Victoria Harbour outside the restaurant. He recalled how, when he first entered the industry three years ago, he had stayed up for three whole nights working on a report.

Meanwhile, in the conference room in Yanjing, Lu Wenqi and his team had been working continuously for eight hours.

Coffee cups were lined up on the table, and the analysts, though their eyes were bloodshot, were highly focused.

“We need to finish this report before the US stock market opens tonight,” Lu Wenqi glanced at her watch. “Clients in Hong Kong, London, New York, and Singapore are all waiting for our analysis.”

Just then, his phone suddenly vibrated.

The screen displayed an unfamiliar number from Switzerland.

“Mr. Lu, this is Hans from UBS.” The voice on the other end of the phone spoke in English with a German accent. “We noticed that your team’s forecasts for commodities last month were exceptionally accurate, and we would like to invite you to Zurich next week for a closed-door presentation.”

After hanging up the phone, Lu Wenqi looked out the window at the darkening sky.

The neon lights on Victory Avenue lit up one after another, much like the night view he had seen from Tokyo Tower.

That's how this industry works; when you're good enough, the world will make way for you.

But the price to pay is countless weekends spent missing family appointments and a constant supply of spare clothes in your suitcase.

Meanwhile, Du Wenming was watching Nadaske's information on the screen.

His assistant knocked gently on the door: "Mr. Du, CNN Business would like to invite you to do an interview about the Asian economy."

"What did the chairman's secretariat say?" Du Wenming nodded, but his gaze inadvertently fell on the photo of his daughter in the frame on the table.

The promise I made to take her to Disneyland was made six months ago.

"The chairman agrees to let you have time for an interview," the secretary replied with a smile.

“Okay, tell them to let’s do it this weekend!” Du Wenming replied.

Du Wenming put down his wine glass and began rapidly typing on the keyboard.

The Nasdaq's real-time data flickered on the screen, and he keenly noticed the unusual fluctuations in the technology stock sector.

Such subtle signals often foreshadow an impending storm in the market.

The phone rang suddenly; it was an emergency call from the Tokyo branch.

"Dusan, SoftBank just sold off a large number of tech stocks." The voice on the other end of the phone sounded noticeably tense.

Du Wenming narrowed his eyes and immediately pulled up a real-time chart of the Tokyo market.

Sure enough, the Nikkei index has begun to show a chain reaction.

At the same time, Lu Wenqi's team also received a warning signal.

The young analyst, Xiaolin, suddenly stood up: "Mr. Lu, there's an abnormal trading volume in copper futures on the London Metal Exchange!" Lu Wenqi quickly walked to the screen and pulled up the relevant data.

His fingers slid rapidly across the touchpad, his brow furrowing deeper and deeper.

“This is not normal market volatility,” Lu Wenqi said in a low voice. “Someone is deliberately shorting the market.” He immediately dialed Du Wenming’s number, and the two financial elites quickly reached a consensus over the phone.

They all knew that the next 48 hours would be a war without gunfire.

The office lights stayed on all night, and the coffee machine had been running for more than ten hours straight.

Du Wenming looked out the window at Victoria Harbour, where the first rays of morning sunlight were piercing through the clouds.

He rubbed his temples, picked up his phone, and sent a message to his daughter: "Honey, Daddy will definitely take you to Disneyland this weekend."

The global financial sector is in turmoil again, and Liu Shudong, the "supreme ruler" of "Jingxi Capital," "Liu's Financial Investment Group," and "Liu's Overseas Capital," was among the first to receive the news.

Liu Shudong stood in front of the floor-to-ceiling window, overlooking the dazzling night view of Central, the cigar in his hand glowing uncertainly in the darkness.

This financial tycoon, who controls a multi-trillion-dollar capital empire, is staring intently at the numbers flashing on his computer screen, his eyes sharp as an eagle's.

"Notify the senior management of the other two financial groups to send representatives to Hong Kong for a meeting..." His deep voice echoed in the spacious office, and his assistants immediately sprang into action.

Liu Shudong turned and walked toward the conference table. The six screens on the wall lit up simultaneously, connecting to Liu's overseas branches in Tokyo, New York, London, Singapore, Frankfurt, and Rio de Janeiro.

“This market anomaly is not simple,” Liu Shudong said to his senior executives. “Hmph… those old squid are playing a big game.” His fingers tapped lightly on the table as he quickly analyzed various possibilities in his mind.

Twenty years in finance have given Liu Shudong an almost intuitive market sense, and this intuition is now giving him a frantic warning.

Meanwhile, at the headquarters of the "Liu's Financial Investment Group" in Yanjing,

Group Chairman Liu Bencheng summoned his capable subordinate Zhang Lei to his office.

Liu Bencheng stood in front of the floor-to-ceiling window, watching the endless stream of cars on Chang'an Avenue, the purple clay teacup in his hand emitting wisps of steam.

"Zhang Lei, what's your opinion on the Hong Kong stock market?" he asked without turning his head.

Zhang Lei adjusted his gold-rimmed glasses and handed over the Lianxiang notebook in his hand: "Chairman, according to our analysis, this market anomaly is likely an attempt by international hedge funds to test the defensive capabilities of the Asian market. In particular, the recent actions of Blackstone and Bridgewater are quite intriguing."

Liu Bencheng took the laptop and quickly browsed through the data charts on it.

His gaze lingered on a certain number for a few seconds, then he suddenly chuckled, "Interesting. Looks like these old squids have their eyes on us again."

The air in the office seemed to freeze instantly.

Zhang Lei immediately understood: "Should we launch 'Operation Great Wall'?"

“No rush,” Liu Bencheng turned and walked to his desk, pressing the internal phone: “Notify all staff in the investment research department of an emergency meeting in half an hour.”

In addition, have the compliance department prepare all contingency plans.

After hanging up the phone, Liu Bencheng took an encrypted USB drive from the drawer and handed it to Zhang Lei: "This contains detailed information about our overseas operations. Go to Hong Kong yourself and give this to your teacher."

Zhang Lei solemnly accepted the USB drive, but then heard Liu Bencheng say, "I remember you were a student personally taught by my uncle, right?"

“Yes, if it weren’t for my teacher, I wouldn’t be where I am today…” Zhang Lei said with gratitude when talking about his teacher, Liu Shudong.

At this moment, Liu Bencheng's Huawei Mate2 Pro phone suddenly vibrated.

The screen displayed an overseas phone number.

He gestured for Zhang Lei to wait a moment, then answered the phone and said only three words: "Hello, it's me. Get to the point."

A hurried voice came from the other end of the phone: "We just received top-secret information. Wall Street is urgently mobilizing funds, and their target is likely our Hong Kong stocks."

Liu Bencheng's eyes suddenly sharpened: "How much money did they mobilize?"

"Preliminary estimate: no less than 200 billion US dollars."

After hanging up the phone, Liu Bencheng said to Zhang Lei in a deep voice, "There's no time to lose. You'd better head to Hong Kong tonight. Once you get there, follow my uncle's wise instructions..."

"Yes, Chairman!" Zhang Lei replied loudly, somewhat excited by the sudden financial battle. Zhang Lei was another investment genius in the financial field recruited by "Liu's Financial Investment Group," and he was now the head of "Hillhouse Capital," a subsidiary of the parent company.

He and Duan Yongping of "Jingxi Capital" are known as the two giants in the Yanjing investment field.

Zhang Lei of Hillhouse Capital is a legend in the domestic investment field.

What's the most impressive thing about a person? It's not having a fortune or having many people give you money, but having others willing to give you money when you have nothing.

This involves at least two factors:
First, their character is trustworthy – they won't run off with the money; second, their abilities are trustworthy – they have the ability to repay the money, and may even bring in substantial returns.

Therefore, the initial capital for starting a business, besides one's own savings, largely comes from one's closest relatives, often parents, as friends are not an option.

In recent years, with the rise of venture capital, there have been so-called seed rounds and angel rounds. The money comes from investment institutions, and the reason why they are willing to invest mainly depends on these two factors.

Therefore, there's a saying in the investment world that goes, "Investing is about investing in people."

The first money Zhang Lei received to establish Hillhouse Capital came from his mentor, Liu Shudong.

Zhang Lei, the founder of Hillhouse Capital, is probably one of the most popular investors in China right now.

Zhang Lei, born in Zhumadian, Henan Province, was admitted to Renmin University of China in 1989 as the top liberal arts student in Henan Province. After a short period of work, he went to study at the Chinese University of Hong Kong.

Although he received a scholarship, it wasn't enough.

Finding a part-time job is a common way for many international students to supplement their living expenses. Zhang Lei wanted to find a part-time job, but after submitting many resumes and going through many interviews, he failed every time.

Just as Zhang Lei was disappointed and thought it was hopeless again, "Liu's Overseas" posted a job advertisement, saying that the manager wanted to hire an assistant.

During the interview, Zhang Lei didn't know the answers to many of Liu Shudong's investment-related questions and could only answer "I don't know".

After the interview, Zhang Lei thought he had no chance again, but to his surprise, he soon received an offer of employment.

Later, Zhang Lei asked Liu Shudong why he was hired despite his poor interview performance.

The other person said that if you don't know, just say you don't know; this kind of sincerity is what he values ​​most.

Liu Shudong is a giant and master in the investment world. The first task he gave Zhang Lei was to translate his book, "The Innovative Path of Institutional Investment," into a foreign language.

Translating a book is the best way to learn. After translating the book, Zhang Lei learned the essence of Liu Shudong's investment. After graduating with a master's degree, he stayed to work at "Liu's Overseas", mainly responsible for investments in Southeast Asia and other places.

Later, Zhang Lei decided to return to China to start his own business, and Liu Shudong provided him with $2000 million in seed funding, which was Hillhouse Capital's first investment.

In the early stages, Zhang Lei invested in companies such as Sohu, Tencent, and Taobao, achieving great success.

Zhang Lei quickly gained fame in the investment field, which soon attracted the attention of the financial giant "Liu's Financial Investment".

Under the decision of the new chairman Liu Bencheng, "Liu's Financial Investment Group" acquired Zhang Lei's "Hillhouse Capital".

In a conference room at the Peninsula Hotel, Liu Shudong was having a video conference with the heads of the Tokyo and London branches.

The lights of Victoria Harbour outside the window reflected on his sharply defined face, making him appear exceptionally deep and thoughtful.

“According to the latest intelligence, Wall Street is moving faster than we anticipated.” Liu Shudong tapped his fingers lightly on the table. “This time, they’re targeting our foreign exchange reserves.”

The words had barely left his mouth when the conference room door opened. Zhang Lei walked in, looking travel-worn, his suit jacket still wrinkled from his night travels. "Teacher, I've brought important information about the chairman."

Liu Shudong took the USB drive and quickly plugged it into the computer.

The screen immediately displayed a detailed plan for the "Great Wall Project".

His gaze lingered on a certain data point for a moment, then he suddenly smiled meaningfully: "Just as I thought, they want to replicate the methods from 1997."

Meanwhile, in a skyscraper in Manhattan, New York, Blackstone Group CEO Mark Stone was convening an emergency meeting.

“We’ve found the loopholes in the Asian market,” he said to the room full of fund managers. “This time, we’re going to teach the ‘Eastern Dragon’ a lesson.”

Back in Hong Kong, Liu Shudong had already retrieved transaction data from twenty years ago. "Zhang Lei, do you remember how we won that battle in 1997?"

Zhang Lei pushed up his glasses: "Back then, you started planning three months in advance, planting inverse options in the foreign exchange market."

“That’s right,” Liu Shudong stood up and walked to the window. “This time we’re going to do something even bigger. Notify all branches to immediately launch the second phase of ‘Operation Great Wall’.”

His phone suddenly vibrated, and an encrypted message appeared on the screen: "Abnormal fund flows have appeared in the Tokyo market, suspected to be Blackstone funds."

Liu Shudong sneered and turned to his assistant, saying, "Have the trading department prepare. I want to see the Hong Kong stock index rise by 500 points after the market opens tomorrow." He then looked at Zhang Lei, "You are responsible for contacting our allies in Singapore. This time, we want to let Wall Street know that the Asian market is not a playground they can come and go as they please."

Outside the conference room, a bolt of lightning suddenly streaked across the Hong Kong night sky, foreshadowing the impending financial storm.

Zhang Lei strode out of the conference room and immediately dialed the private number of Lim Chee Ming, Deputy Managing Director of the Singapore Monetary Authority.

When the call connected, the background noise of the trading hall could be heard.

"Director Lin, the situation is urgent. Wall Street funds have already begun testing the waters in the Tokyo market." Zhang Lei lowered his voice. "Our teacher hopes that you can cooperate with our actions when the market opens tomorrow."

There was a few seconds of silence on the other end of the phone, followed by Lin Zhiming's calm response: "We've just detected abnormal fund flows and have activated our emergency plan. What specific cooperation do you need?"

"Three o'clock." Zhang Lei strode towards the elevator.
"First, please release the favorable policies promptly at 9:00 AM tomorrow; second, we need to utilize your offshore RMB pool; third," he paused, "please be prepared to activate the 'circuit breaker mechanism' at any time."

After hanging up the phone, Zhang Lei immediately sent Liu Bencheng an encrypted email. While waiting for a reply, his phone suddenly received a message from an unknown number: "Mr. Zhang, I've heard so much about you. Interested in discussing cooperation? — Mark Stone"

Zhang Lei's pupils contracted slightly, and he immediately forwarded the message to Liu Shudong.

Less than a minute later, the teacher replied, "Let's play along and arrange to meet him tomorrow night."

Meanwhile, at Blackstone Group headquarters in New York, Mark Stone was staring at Hong Kong stocks on his computer screen.

His deputy asked in confusion, "Boss, why should we proactively contact our competitors?"

Stone revealed a sly smile: "Easterners value 'knowing yourself and your enemy' the most, but sometimes, knowing too much can be detrimental." He made a strangulation gesture, "At tomorrow night's meeting, I want this 'investment genius' to watch his empire crumble before his own eyes."

The torrential rain in Hong Kong finally poured down, blurring the neon lights of the financial center in the rain.

Liu Shudong stood in front of the floor-to-ceiling window of his office, a glass of whiskey in his hand, his eyes fixed intently on the lights across Victoria Harbour.

The thrilling financial war of twenty years ago seems like it happened just yesterday, and today, history is about to repeat itself—only this time, the roles of hunter and prey are reversed.

The following morning, two hours before the Hong Kong stock market opened, Zhang Lei met Lin Zhiming, who had rushed over from Singapore overnight, in the trading hall.

“We have mobilized $300 billion in foreign exchange reserves,” Lin Zhiming handed over an encrypted document. “The Central Bank of Singapore will cooperate with your operations in the London market.”

At 9:00 AM sharp, Hong Kong stocks miraculously opened sharply higher. However, Zhang Lei noticed an anomaly: Blackstone funds did not short sell as expected, but instead quietly accumulated Tencent call options.

“They’re playing a diversionary tactic.” Liu Shudong stared at the intraday chart and sneered. “Notify the Tokyo branch to immediately sell all yen bonds.”

That night, at the Peninsula Hotel's rooftop restaurant.

Mark Stone swirled his wine glass. “Mr. Zhang, you all had a fantastic day. But do you know what Wall Street excels at?” He suddenly lowered his voice. “Creating panic.”

(End of this chapter)