King of Capital

[Cailianshe reported on April 4: Ant Financial completed the world's largest round of private equity financing, raising $26 billion at a valuation of $600 billion, with China Investment Corporation Overseas and CCB Trust jointly leading the investment.

Strategic investors in the A round including China Life, China Post Group, China Development Bank Financial Holdings and Taihe Capital continued to invest.

After this round of financing, the Social Security Fund, the lead investor in Round A, still holds 5% of the shares, making it the largest external investor. Since the regulatory reform allowed the Social Security Fund to directly invest in corporate entities, Ant Financial is still the only private enterprise directly invested by the Social Security Fund.

“The only direct investment in a private enterprise?”

Xie Jingxing stood in front of the full-length mirror, adjusting his collar, and muttered to himself in a low voice, chewing on the taste of it.

Chen Xi silently turned off the live financial news broadcast on the Bluetooth speaker. Last year, his boss and Jack Ma went boating on the West Lake and drank wine together. Taihe Capital acquired 1% of Ant Financial's shares at % off its valuation.

At that time, the merger between Xinda and Meituan was in a stalemate due to internal and external troubles. Alibaba intended to use this opportunity to disrupt the offensive and defensive alliance between the Xie family and Tencent in the field of mobile payment as much as possible, which led to this preferential treatment.

The valuation discount of the social security fund’s investment in Ant Financial is 5%…

Uninformed bystanders call it a special honor, but when faced with such a behemoth, there is no clearer way to describe the word "carnivore" than this.

"The leverage of 30 billion to leverage 3000 billion, was it not known by the due diligence before the investment?"

Xie Jingxing had a teasing smile on his face. Chen Xi didn't dare to respond, and he didn't expect a response.

He dressed meticulously and pushed open the office door. Several group executives were already waiting in the corridor. He nodded to Liu Qiming and Tang Man, then walked out first without stopping.

It has been two days since the U.S. dollar fund opened its subscription channel. Today, the Social Security Fund took the lead and became the first potential investor to arrange a team to conduct pre-investment due diligence.

The prior communication process particularly emphasized that the team leader’s level was high, and we hoped that your chairman would personally receive him.

There is nothing much to say about this. Xie Jingxing has never left the front-line business since his debut. From the crown prince LP on the fundraising side to the founder of the angel round project with millions of dollars on the investment side, he is willing to interview them if there is a chance.

No matter how high the level can be, he is more concerned about the actual investment valuation of 30 billion yuan for Ant Financial, which leverages 3000 billion yuan with billion yuan. Then, how much actual investment valuation can Jingxing Group, which has more than billion yuan of its own assets, give?
"It's a bit hot today." Xie Jingxing looked up at the sun with his eyes narrowed.

Chen Xi quickly responded: "I just confirmed the time, it should be here soon."

"Mr. Zheng, I think you are familiar with the people in the Social Security Fund?" Liu Qiming livened up the atmosphere.

Zheng Zhe stood at the back among the executives and nodded modestly, "We weren't familiar with each other earlier. But last year, the insurance funds were allowed to enter the stock market, and they made bigger investments, so we met a few times."

"We will have to tighten the entry standards in the future." Tang Man commented vaguely.

Yao Zhenhua has been eyeing Vanke for several years, but a good cook cannot cook without rice. On the second day after the issuance of the regulatory document allowing insurance funds to enter the market for disaster relief during last year's stock market crash, insurance companies under the Baoneng Group immediately bought into Vanke, creating the classic story of the snake swallowing an elephant that is currently being serialized.

If he does something like this, something is bound to go wrong, but the impact on the social security fund will be limited. The latter and the regulator belong to the same administrative level and are an independent entity.

While we were chatting casually, a long line of cars slowly stopped in front of the company. The doors of the cars were pushed open in unison, and many people in white shirts got out and ran around.

"Mr. Xie, let me introduce you. This is the chairman of our social security." A familiar face in Demon City ran forward and bowed to introduce him.

Xie Jingxing raised his eyebrows in surprise, and Liu Qiming and the others all restrained their postures instantly.

How could this level of work not notify the exact information in advance? Compared to pre-investment due diligence, it would be more appropriate to call it an inspection!
"Your last name is Xie and mine is Xie too. We were one family five hundred years ago. Today I'm going to kill you by surprise. Can you see the true situation of the company?"

The leader, dressed in a suit and tie, looked like a senior executive of a foreign company, half-jokingly setting the tone.

Xie Jingxing really didn't expect that it would be this kind of big shot who brought his own official reporters with him. How could he say no? He adjusted his mindset in an instant and concentrated on entertaining him.

A crowd of more than a dozen people walked into the office building. Liu Qiming and others stood in a staggered position to form a fan shape. Chen Xi barely squeezed in front, nervously afraid of saying something wrong.

It wasn't even her turn to speak, Xie Jingxing turned into a dedicated tour guide and introduced the whole process.

“This layer is our proprietary business, and currently we mainly make some alternative investments other than private equity.”

"I know this. The semiconductor industry guidance fund you are cooperating with Luzhou is not inferior to similar large funds of the financial department in terms of investment scale and investment efficiency."

"The secondary market business team has moved to the Bund, in the same office building as the Jichun Bank we invested in. If you have time this afternoon, let's go and take a look."

"I really want to see the team that fought side by side in the stock market last year. The domestic private banking industry as a whole is still in the development stage. If you enter this industry, you must make a good start and strive to build a model room."

"This is the Grapefruit office building, which is promoting the fundraising of a new batch of US dollar funds. The subscription channel was opened the day before yesterday. So far, three cornerstone LPs have been confirmed, including the Saudi Public Development Fund, the California Pension Fund, and the Walmart Family Office, with a total subscription amount of US$21.7 billion."

"Funds have been brought in and projects have been launched. Grapefruit has been recognized by the market in this regard, which is rare."

After a brief tour for a while, Xie Jingxing introduced something and the leader commented on it, but every sentence hit him so hard that he couldn't understand it.

At the beginning, the Xinhai Semiconductor Industry Fund was established simultaneously with the large industrial fund operated by state-owned assets. It was difficult to move forward and offended people. Now the more it is praised, the more it is the opposite. And this guy is the former God of Wealth!
While its teammates such as Huijin Investment and Social Security, which fought side by side during the stock market crash, are still deeply trapped, the group almost escaped unscathed and even made a small profit.

Xiyou has been recognized by the market, and the funds have been introduced, so how can we talk about launching the projects? Companies like Meituan, Didi, and Mobike are destined to go public overseas, and leave the domestic market with nothing but money burned?

Xie Jingxing felt that his brain was not enough to distinguish between good and bad. After visiting all the way, he still couldn't figure out the purpose of the "family" coming to inspect in person today. This was not in line with administrative conventions.

"Speed ​​up the process of promoting the integration of domestic financial industry with international finance...Xiao Xie, do you think we need to integrate with the international community as soon as possible?"

The tour ended near noon, and when we returned to the office to rest and wait for lunch, the leader dismissed all the accompanying personnel and suddenly asked a question.

Xie Jing Xing was caught off guard and said carefully: "The process of us bringing in foreign capital will naturally be a natural process."

"Does this question sound familiar to you?" the leader continued to ask without commenting.

Xie Jingxing slowed down his tone to delay thinking: "Since the financial reform was proposed in 2013, all financial people have often discussed this topic."

"What I just said was what you said when you returned from studying abroad in 2013. It seems that your feelings have changed after three years?" The leader slowly gave the answer.

Xie Jingxing just smiled and said what he wanted to say at each stage. In the past, he could show off his calligraphy and talk about the dream of great rejuvenation, but now he never mentions macro-value orientation in public or private occasions.

But since the leader came here for this, he would not let it go easily. He said frankly, "In fact, some people advised me not to show up. Putting you in the spotlight would be irresponsible to the investment project itself." "But our industry is no different from others. Finance and economy are the lifeblood of the country. No matter what the reason, you have set many precedents that have affected the entire industry. Now it's the turn of a private financial company that can't find a reference template to stand here, and an investment invitation that no one has ever seen is placed on the social security fund."

He looked at the young man in front of him with a special identity and said in a deep voice, "You can regard our conversation as an interview, or as a casual conversation with an old senior who is about to retire."

“Looking back three years later, how do you think you did? Did you realize your ideals? Have your ideals changed? What do you want to do in the future?”

Xie Jingxing was a little dazed when facing three consecutive questions. He had been showing off his interests like a chicken blood for more than two months. He believed that he had made full preparations and was looking for solutions in a grand and upright manner.

It turns out that the problem before him stems from thought.

"I……"

Xie Jingxing's eyes were out of focus. He seldom talked about ideas with the entrepreneurs he invested in, but the ideas did exist. They were the ruthlessness in Cheng Wei's bones and the persistence in Wang Xing's destiny.

At this moment, he himself is also an entrepreneur.

…………

【Wanda Real Estate Hong Kong Stock Privatization Invitation Signing Meeting】

Beijing, Shangri-La Hotel multi-function hall.

The standard machine-printed fonts on the background board exuded a festive atmosphere. Nine distributors gathered around Wang Jianlin. Facing the camera, he announced in a sonorous and powerful voice that Wanda Real Estate had officially entered the process of voluntary delisting - the king's feast had begun!
"Boss Miao, there's a drinking party tonight, don't leave."

Qu Dejun greeted him with a cheerful face, and Miao Nan joked that you guys can't handle drinking one cup of wine a day, and everyone around laughed and joined in the joke.

A celebratory cocktail party was held yesterday evening after the formal contract was signed. Today, they are just pretending to sign some supplementary agreement. No lunatic would ignore the contract and sign it on the spot just for the sake of taking pictures by the media.

Wanda's final version of the privatization plan will allocate the required nearly HK$350 billion in funds to nine investment entities, with an average of several billion yuan to each entity.

It is impossible to be frivolous, but it is possible to be relaxed, very relaxed!
Miao Nan was chatting and laughing with Qu Dejun, and there were all kinds of people around him to please him and flatter him. He was enjoying himself so much that he didn't want to leave and had to drink a few more glasses in the evening.

The nine investment entities are divided into four types, four of which are wholly owned by Wanda itself.

It is equivalent to these four investment entities going to the Hong Kong stock market to purchase Wanda shares, and then reselling the shares as assets to real investors. Behind these real investors may be another layer of investors, and the ultimate investors who distribute the shares step by step only invest an average of 18 million yuan each.

The second category is that Wanda jointly holds shares with China Railway and Qingdao Urban Investment Group in two investment entities, and all the equity interests acquired from Wanda belong to the latter two.

The third category is Ping An and Xiyou. Each of the two companies wholly owns an investment entity and acquires Wanda shares according to the established shares.

Finally, the subsidiaries and grandson companies of giants such as ICBC, China Life, and Juntai were packaged into one investment entity, and the media boasted about it as if it was very cool to have taken over so many state-owned enterprise giants, but the actual investment of each company was only a few hundred million on average.

Even Ping An had to redistribute the acquired stock shares to several levels through brokerage business, but Xiyou was the only one that took the 50 billion shares alone.

"What is strength?"

During the dinner, Miao Nan leaned back tactically on the wide chair, his face flushed and his mouth reeking of alcohol, puffing smoke from a cigarette between his fingertips. He was reserved and spoke little as he listened to other people's lively conversation, with the aura of a big boss.

I was secretly calculating in my heart. Last time, Mr. Song said that the bean paste made by his aunt was delicious, so he brought a few bottles with him when he came to Beijing this time. Also, the best Dongkui bayberries from Jiangsu and Zhejiang are about to be in season, so I'll get two boxes and find a time to send them over together.

It's not in vain to worship the mountain leader, otherwise why would Mr. Xie specifically ask the pan-entertainment team to be responsible for Wanda's traditional commercial real estate project.

Lao Wang initially planned to repurchase the shares at a price of around 48 yuan, but now it has been finally decided to repurchase at an average price of 52.8 yuan, which is 10% higher than the initial IPO price. This shows Wanda's confidence in returning to China for listing.

With the A-share market's high valuation of real estate, it will only take a few months for Xiyou to successfully go public before it can buy 50 billion yuan worth of stocks and make a guaranteed profit of 10-20% in the price difference. This is a project that is certain to make money in a few months.

As for the failure of listing...

On the way back to the hotel after the dinner, Miao Nan lowered the car window to let in the cool midnight breeze, which calmed his fiery mood a little. He asked, "How is the US dollar fundraising going?"

"It seems that the three cornerstone LPs have completed their subscriptions, and the total subscription amount is more than 3 billion. There should be no problem with oversubscription." The subordinate soldier is well-informed.

Miao Nan rubbed his face, took out his phone and scanned the WeChat group of senior executives. There was no movement: "Do you know when the first level will be?"

"It's expected to be the first of next month."

The source of the information for my subordinate comes from the soldiers in the fundraising department. Employees throughout the company are looking forward to helping the group create a record for financing, so they are keeping a close eye on any developments, but I don't know the specific details.

Wanda was delisted from the Hong Kong stock market, and the repurchase operation requires the use of Hong Kong dollars, that is, overseas funds.

Nine investments each showed their magical powers, but Grapefruit did not need to bother. It simply drew less than one-sixth of the total fund size from the US Dollar Development PE Acquisition Fund, which was enough to meet the 50 billion share.

The operation cycle is three months. Each company will start buying back circulating stocks on the stock market from now on and complete the overall privatization by July.

Xiyou's current fundraising is completely in time, but it's always better to be early rather than late. As Miao Nan thought about it, he returned to the possibility of Wanda's return to China and IPO failing...

"Hey, Xiao Liu, I remember you are from Hunan? I have a friend who loves cooking and asked me to help him search for local specialties. Can you help buy some Xiangxi bacon from your hometown? Money is not a problem, the bacon must be of good quality!"

Miao Nan lit a cigarette and made up his mind to visit Mr. Song as soon as possible to find out the situation of Wanda's project.

Xiyou has completed this round of fundraising, and the group has successfully carried out financing. When both funds are received, the total cash flow on the books will not be less than RMB 700 billion, and investment projects can be carried out wherever they go.

So what about apart from the financial aspect?
Whether Mr. Xie is capable and willing to push Wanda back to the A-share market, there is no reason why he would not want to do such a profitable business. You can confirm the details with Mr. Song.

If she doesn't know anything, then there's no need for me to worry. It's not my fault.

As for whether he has the ability, Miao Nan exhaled the last puff of smoke and picked up his phone to refresh it again. The WeChat group chat of the group’s executives was silent and dim.

Hearing that the head of the social security department was here in person, no one knew how Mr. Xie would respond. (End of this chapter)