What's wrong with me being a rich man?

Chapter 666 Contact (4k)

Silicon Carbon Group's project to achieve a breakthrough in high-end lithium iron phosphate is important but not so urgent. However, the start of construction of the joint venture plant with CATL is still quite significant for Silicon Carbon Group's plans.

Chen Rijun, the director who took over Lingang, took the opportunity to communicate with General Manager Yu after receiving official progress on the project.

Unlike Zhu Zehui, Chen Rijun has been quite indifferent over the past two months, maintaining only basic contact and concern with carbon silicon, while the former likes to visit whenever he has free time.

Yu Xing felt that Director Chen's contact was a perfect opportunity, as he also wanted to build ties with the city and prepare for important matters concerning the silicon carbon group.

Accompanied by Yu Xing, Chen Rijun visited the Lingang Plant 1, which was operating at full capacity, and then observed the Lingang Plant 2, which will release its capacity next month. Finally, they viewed the planning map of the battery joint venture plant together.

He gave his assessment: "From nothing to something, from something to excellence, this first domestically produced carbon silicon car is very impressive."

Kyushu's material is very hard, and now silicon carbon is involved in the upstream of the supply chain, using the funds from its IPO to invest in research and development. Although there is controversy over the technical route, it is indeed the right path.

Unfortunately, the founder, Mr. Yu, has a slight blemish on his reputation. If it weren't for the incident involving Guo Shanfeng, the publicity surrounding him and his story would have been perfect.

Chen Rijun quickly changed his mind; it's not good to demand perfection from others.

"We've made good progress this year, and it proves that better quality can stand out in a highly competitive car market," Yu Xing said with a smile. "In the past, domestic OEMs were somewhat unsure about this."

Chen Rijun nodded slowly. It was indeed surprising that silicon carbide would start making cars in this price range right away.

He said, "I think NIO's product positioning is quite high now, and this high-end approach gives everyone confidence, but..."

Chen Rijun then changed the subject, mentioning news of competition in the car market: "I heard that GAC is working on a six-seater extended-range SUV that is comparable to yours, and that it will be cheaper. It may be launched in the middle of the year. Should we reconsider the pace of carbon silicon based on the market situation?"

The news that GAC is going to make range-extended vehicles has been circulating for a while, but it only made a splash and then disappeared. This more precise news is undoubtedly from other sources.

When Chen Rijun makes this point so solemnly on such an occasion, it must be very accurate.

Yu Xing pondered how to answer.

“Mr. Yu, I don’t understand the specific competition in your industry.” Seeing that Mr. Yu did not answer, and not wanting the other party to misunderstand, Chen Rijun explained, “I just heard about this from a friend, and I’m afraid that if the market changes, the money invested in silicon carbon may be subject to fluctuations.”

Since its IPO, Silicon Carbon has made numerous moves. Aside from the second plant already under construction, the new Ningbo plant and battery plant will require significant investment. Add to that its investments in the supply chain, and this aggressive pace...

Chen Rijun didn't just say these words on his own; he discussed them with his subordinates before bringing them up for discussion. He was worried that the decline in the competitiveness of silicon carbon would have a chain reaction, and that having the money from the IPO and revenue in hand would certainly give him more confidence.

“Director, I know you care about silicon carbide. I’ve also heard some rumors about GAC’s car. They say they’re modifying a car that’s about to be discontinued and might sell it for around 200,000 yuan,” Yu Xing said. “However, cars aren’t something you can just modify. A large part of Kyushu’s success isn’t about range extension or new energy, but about their focus on customer needs on the basis of range extension and new energy.”

"Technology is certainly important, but beyond technology, whether a product can sell well depends on how well it meets user needs."

“We segment the market to try to understand the needs of users, but a six-seater SUV is not just about six seats. At least GAC is willing to put a refrigerator, a color TV and a big sofa in the car first.”

Yu Xing had no doubt that GAC's range-extended vehicles would fail. On the one hand, the industry still had doubts about the success of silicon carbide, so it was naturally difficult to copy Kyushu's experience. On the other hand, GAC was involved in new energy vehicles, range-extended vehicles, and products priced at 20 yuan. Factions, teams, constraints, interests, and other factors were bound to be intertwined.

Leapmotor-style products may exist, but they are unlikely to appear now, and they are also unlikely to appear in GAC.

"However, our project on high-end lithium iron phosphate batteries is about shifting from user needs to technological upgrades, and then using those upgrades to better serve users."

Yu Xingshun explained the thinking behind the latest moves of the Silicon Carbon Group.

Chen Rijun wasn't there to bother President Yu, nor was he there to give unsolicited advice. Hearing these words, he nodded and said, "President Yu, as long as you understand, that's good. Lingang and Shanghai will support the development of silicon carbon. You can raise any difficulties you encounter."

Yu Xing had been waiting for these words.

He feigned hesitation: "Well, actually..."

Chen Rijun looked at the business boss in front of him and said, "President Yu, you can speak your mind. I'm not just spouting empty words."

"Director Chen, it's like this. Silicon Carbon Group is listed on the Hong Kong Growth Enterprise Market. Even before the listing, it faced malicious attacks from short sellers, and its stock price has been fluctuating. However, because Silicon Carbon cannot be shorted in Hong Kong, we believe that it may face a wave of stock market attacks at the end of the year." Yu Xingxian explained the reason.

Chen Rijun simply said, "Yes, you're familiar with this."

Yu Xing seemed not to hear the joke and continued, "The liquidity of Hong Kong's GEM board is insufficient. I was thinking, could we include Silicon Carbon Group in the Shanghai-Hong Kong Stock Connect? This way, we can get funds from the mainland and create a short squeeze at critical moments."

The Shanghai-Hong Kong Stock Connect is a pilot program launched in 2014 to connect the stock markets, allowing investors in both regions to buy and sell stocks listed on the other's exchange through securities companies within a specified range.

Simply put, mainland investors can buy stocks listed in Hong Kong through mainland securities companies.

If you can't buy something before, but suddenly you can, the sudden change in rules will inevitably have an impact. For example, Wirkard was protected by BaFin with a short-selling ban. The original situation had already attracted attention and questions. Forcibly adding a rare short-selling ban on individual stocks at the company level directly changed the situation.

Chen Rijun was very surprised; he never expected President Yu to make such a request.

He didn't understand this and hesitated, asking, "What are you going to use this for?"

Yu Xing gave a straightforward answer: "It's for killing short sellers."

Chen Rijun fell silent. Since they were both short sellers, why rush into a fight? But then he thought, Mr. Yu was a unique type of short seller, while foreign short sellers were just ordinary short sellers.

He couldn't agree immediately, but said, "I'm not familiar with this matter, but I can ask around for you."

After saying that, Chen Rijun asked, "Is it just a matter of including the Silicon Carbon Group? Are there any other requirements?"

“If possible, it would be better to announce it quickly at a certain time.” Yu Xing really had a requirement. “For example, after the market closes on Friday or close to the close in the afternoon, and the market is closed for two days over the weekend. In principle, there should be a three-day announcement period, but when the market opens on Monday, we will not give short sellers any time.”

Chen Rijun already sensed the murderous intent. Based on his experience, he believed that such adjustments to the Shanghai-Hong Kong Stock Connect must have procedures and precedents, and based on his experience, precedents could be broken.

Take the silicon carbon group in front of us as an example. In order to support the development of the new energy industry, China can sometimes provide better policies and timely updated "management measures".

Chen Rijun didn't understand the stock market or short selling, but he grasped the key point: "President Yu, are you planning to ambush them?"

Yu Xing shook his head and denied it: "Director, I'm not planning an ambush, I'm trying to protect the Silicon Carbon Group."

Chen Rijun couldn't help but utter half a sentence: "You're a big short seller..."

He didn't continue, but shook his head: "I'll ask for you."

Yu Xing thanked Director Chen for his help. If he had asked, the matter might have been mostly settled. As for whether it could be used or not, even if it wasn't, it would still be good news for the stock price of Silicon Carbon Group.

After meeting with the director, they were greeted by a visit from BaFin Vice President Legler, BlackRock Germany President Meutz, and lawyer Dunning, among others.

Deng Ning arrived a little earlier and saw the evidence that Yu Xing's investment banks were manipulating the silver market.

He believed the accuracy of these claims almost without even finishing reading the evidence, and then sought more leverage: "President Yu, how much more does Guoshanfeng actually have? The more of these we have, the better we can negotiate with BaFin."

Yu Xing shook his head: "No more."

Deng Ning absolutely could not believe this statement; it was as ridiculous as saying that Guo Shanfeng had no goods in his possession as if he had not broken the law.

Yu Xing didn't intend to convince the other party, but only mentioned the requirement of a "tainted witness" to protect Mike, the investment bank's informant, and the colleagues he had brought in.

After Mike met with a major short seller in Hong Kong and successfully made a trade, he went back and took the initiative to exaggerate regulatory investigations while using previous cases of banks abandoning or even persecuting employees to create a threatening atmosphere.

Ultimately, he dragged a colleague into the mess, who also helped secure some of the evidence.

"It should be possible," Deng Ning gave a general answer, then added with a smile, "although it's not important."

Yu Xing shook his head: "I need to protect Guo Shanfeng's reputation. After Guo Shanfeng is exposed, many potential informants will pay attention to our behavior."

With Guo Shanfeng's growing influence, many projects are now being offered to him by people with different motives, rather than Guo Shanfeng conducting research. People like Mike may not be able to hide in the legal process, so protecting him is like spending a fortune to buy his horse's bones.

Deng Ning then became serious and nodded in agreement.

Yu Xing then mentioned Mo Ci, who had come with BaFin, and asked the lawyer for his impression of him.

“Mertz, he’s very influential in Germany,” Dunning said. “He doesn’t handle the day-to-day operations, but he’s known as BlackRock Germany’s ‘breakfast meeting BOSS.’ He doesn’t need to worry about the business; he can handle the core issues of German politics, regulators, and major clients just over breakfast.”

Yu Xing was somewhat surprised: "So he's quite...smooth?"

“Are there any politicians who aren’t smooth talkers?” Dunning laughed. “He will probably still return to politics. I’ve heard that at least half of the major clients BlackRock has acquired in Germany are thanks to Mertz’s efforts. In turn, BlackRock certainly provides him with more than just a salary.”

Yu Xing nodded slightly, silently entering her field of vision.

He knew this person, but he didn't know the specific route. This time, he also learned about it through different channels. However, he knew that Moci and BaFin's president, Hufeld, had a very good relationship.

BlackRock is one of the shareholders in the Wilkart case, and also holds a large number of DAX constituent stocks in Germany.

Furthermore, both are elites with backgrounds in the German Christian Democratic Union (CDU). Huffert's nomination was driven by the CDU's financial wing, while Mertz is a key figure on the CDU's economic committee.

As for the events they attended together, there are quite a few that can be found publicly, such as the Frankfurt Financial Summit and the Atlantic Bridge Association.

"But what's he doing here?" Dunning was also puzzled by Murtaugh's arrival. "Is he here to interrogate us? Did BlackRock also suffer significant losses when it shorted car companies during the peak season? Or is he simply protecting Legrell?"

Yu Xing didn't know either, but he soon found out.

He hadn't expected that Murtaugh's coming along was because he was interested in the Peak Hedge Fund.

Metz met Yu Xing in the conference room with Legler. He barely spoke after introducing himself, but he came over directly when Legler and Dunning were having a procedural argument, appearing relaxed and even a little frivolous.

“They always need to make a fuss to justify their actions,” Moci commented on the scene in slow, clear English, then asked Yu Xing, “I heard that the Over Peak hedge fund is going to open?”

Yu Xing had been observing Mo Ci and found him to be very different from his preconceived notions. He was extremely surprised to hear such a question and asked in return, "Does BlackRock also have an interest in investing?"

Mots smiled and shook his head: "BlackRock has no interest. Although I am the president of BlackRock Germany, I will not interfere with its investment strategy. We are just curious about the hedge fund that a short-selling institution like Mountain Peak is going to make. So, we came with Legler to take a look."

Yu Xing's thoughts raced. The other party wouldn't fly over just out of curiosity; the problem was interest, and the intention to invest money. If it weren't for his current job title, it would be part of the German funding.

He indirectly replied, "Our main task now is to resolve the problems caused by BaFin."

Moci blinked, not responding to that question, but instead asked, "Is Vilcard shorting the mountain peak?"

Yu Xing shook his head in denial, saying that it was not out of the question in the future, but it was definitely not the case now.

Whether he believed it or not, Murtez simply said, "Many people like Wilcard; it's a good company."

Yu Xing was silent for a moment before replying, "No matter how many people like Vilcard, I don't know if it's good or bad, but it has attracted a lot of short sellers, so that might be a mistake."

Fraudulent listing is a crime, but being targeted by short sellers is a mistake.

(End of this chapter)