Black technology: a super empire spanning two worlds

Chapter 338 [Humanoid Robots to Have Electronic ID Cards]

The following day, Monday, January 23.

Around nine o'clock in the morning, at the headquarters of Lingjing Technology, in the chairman's office.

"We've received new information from higher authorities, but no official document has been issued. The electronic ID cards for the 'Flowing Star Language' lifelike dolls have been internally approved." Yun Shu entered Xiao Yu's office and reported this news to him.

In the future, every Liuguang Xingyu humanoid robot will have its own "ID card" just like a human. This measure is intended to optimize and unify the management of this emerging technology, and also to enable Liuguang Xingyu humanoid robots to travel conveniently by taking transportation.

Currently, they cannot enter train stations or subway systems. For example, when the owner wants to take the subway, they cannot bring the Flowing Star Language simulator with them because they will be stopped at the security checkpoint.

But this is only temporary. With the completion of the electronic ID registration for the Liuguang Xingyu simulation robot, it will be able to enter and exit major transportation hubs across the country.

With personalized features and electronic ID cards, each of the Radiant Star Language lifelike dolls can be accurately identified.

However, this is a huge project. It requires adding a set of security inspection equipment specifically for lifelike mascots to major transportation hubs across the country, as well as setting up dedicated security check lanes. Getting all this done will cost money, a lot of money.

The relevant national authorities have made it clear that they will not allocate this money. Instead, Lingjing Technology and Likang Technology will have to discuss and decide how to pay for it. In short, the government has given it to you, and you will have to figure out how to pay for it yourselves.

"To install lifelike security checkpoints at major transportation hubs across the country, we expect a budget of 3500 billion yuan. The government won't cover this expense; we'll have to figure it out ourselves." Yun Shu looked at Xiao Yu and said, "Will this budget come from Lingjing Technology, Likang Technology, or both companies jointly?"

Without hesitation, Xiao Yu said directly, "Likang Technology is the brand owner and operator, so of course Likang Technology will pay for it."

Upon hearing this, Yun Shu said, "It's impossible for Likang Technology to come up with that much funding right now."

Xiao Yu smiled faintly and said, "Then let President Zhou borrow money and ask the capital market for funds. No one dares to be a creditor of Likang Technology. Lingjing Technology can provide third-party guarantees for it."

It is highly unlikely that such a large amount of capital could be used for equity refinancing in the capital market, as the amount is simply too large.

They can only engage in debt financing, which means borrowing money and repaying the principal and interest upon maturity.

Even so, without a strong third-party guarantor, investors wouldn't dare lend out so much money. Likang Technology's creditworthiness couldn't support such a large amount, and the astronomical figure of 3500 billion yuan is not something that one or two institutions could handle. Even if they could, they wouldn't dare, as the risk is still too great.

However, if Lingjing Technology can provide a guarantee, that would be a different story.

Institutions may worry that Likang Technology will default and be unable to repay its debts, but they certainly don't need to worry about Lingjing Technology being unable to repay its debts. With Lingjing Technology as a guarantor, this becomes a high-quality debt financing target, which can be considered as good as a standard bond with rigid repayment.

After a moment, Yun Shu looked at Xiao Yu and said, "Should we notify Zhou Chengyang as soon as possible and have him prepare for debt financing?"

"No, this information is classified as top secret by the company. Zhou Chengyang will not inform him yet."

Xiao Yu immediately rejected the idea. He then turned to his beautiful assistant and added, "If we want to open windows in the house, we have to tell outsiders that I'm going to tear down the roof. We haven't told anyone outsiders that we're going to tear down the roof yet. If the outside world finds out about this, how can Liuguang Xingyu push forward with the 'compromise' plan?"

Yun Shu belatedly nodded in realization: "No wonder the higher-ups only issued a notification and didn't provide any formal written documents."

There is currently a huge controversy surrounding the product "Flowing Star Language," with waves of opposition rising and falling repeatedly.

According to the original plan, the first step was to release a smokescreen to the public, to fully penetrate all industries and create greater panic, which is to pretend to lift the roof before opening the window.

Once the time is right, take a step back. Don't lift the roof, just open a window. In other words, don't fully penetrate all industries, but only play the role of means of production in a few special industries.

For this plan to be implemented smoothly and achieve its intended goals, it must be kept secret and not disclosed to outsiders.

If the news that came down today were to be leaked to the outside world, and it were already approved by the higher-ups, then everyone would know that this matter would definitely be implemented.

If this happens, it will be troublesome. The resentment that has been building up will be transferred from Likang Technology and Lingjing Technology to government agencies. How will government agencies then play the role of the good cop and uphold justice?
The stage has been dismantled, so this whole drama of good cop and bad cop can't go on anymore.

Therefore, the 3500 billion yuan debt financing matter must be put on hold until this whole drama is over before it can be put on the agenda.

Once the Liuguang Xingyu simulation robot completes its electronic identity registration and all major transportation hubs and passenger stations have installed security check equipment for the simulation robot, the Liuguang Xingyu simulation robot will be able to enter and exit passenger stations and take various modes of transportation.

However, you also need to buy a ticket to use public transportation, and the price is the same as for adults, paid by the robot's owner.

Because the Flowing Star Language lifelike robot is different from ordinary items, it occupies public resources. For example, it needs to occupy a seat on the subway, so naturally you have to buy a ticket.

Actually, there's another reason for this: the government's 25% subsidy for Liuguang Xingyu was quite substantial. The relevant authorities didn't expect the product to sell so well in such a short period. They initially thought that sales of tens of millions a year would be good, but they didn't expect that the first day of orders would generate more than 1260 million locked orders.

The leaders who approved the 25% subsidy privately thought it was hasty, but since the decision had already been made, going back on it would be a loss of decorum and would make them seem unreliable. As the saying goes, what's said is said, and it can't be taken back.

But it hurts to spend the money, so I had to find other ways to recover. That's why I have to buy a ticket for the Flowing Star Language simulation robot to take public transportation, which is a small way to recover some money. Every little bit helps.

This is why the government won't allocate the 3500 billion yuan; it only provides policy support but not funds, leaving Lingjing Technology and Likang Technology to discuss and decide for themselves how to come up with the money.

...The following day, Tuesday, September 24.

This morning, the capital market received an epic, major positive policy announcement. Key figures from major domestic financial institutions appeared at a press conference to announce multiple favorable policies, including a reduction in the reserve requirement ratio, interest rate cuts, adjustments to existing mortgage rates, and the introduction of new tools to support the stock market.

At the press conference, the current head of the bank announced the creation of two structural monetary policy tools to support the stable development of the capital market.

One is the special relending for stock buybacks and shareholding increases.

The initial quota is 3000 billion yuan, which supports listed companies and major shareholders in repurchasing and increasing their holdings of shares.

Secondly, it facilitates the exchange of securities, funds, and insurance companies.

The initial operation will involve 5000 billion yuan, allowing relevant institutions to exchange highly liquid assets from Yangcheng Bank by pledging bonds, stock ETFs, and CSI 300 constituent stocks. The bank president stated that if the implementation proves successful, another 5000 billion yuan, or even a third 5000 billion yuan, could be added in the future.

The bank president's statement at the press conference, "5000 billion is not enough, we'll add another 5000 billion, or even a third 5000 billion," greatly boosted market confidence, and the market responded that day with a strong bullish candlestick pattern.

All three major stock indices surged on heavy volume, with the Shanghai Composite Index jumping 4.15% to 2863.13 points; the Shenzhen Component Index rising 4.36% to 8435.70 points; and the ChiNext Index soaring 5.54% to 1615.32 points.

Trading volume also nearly doubled, reaching over 9700 billion yuan, while the total trading volume of the A-share market on Monday was only over 5000 billion yuan.

Today, finally, some new funds from outside the market entered the market.

Despite the recent phenomenal performance of Likang Technology, with its focus on adult entertainment and humanoid robots, this is merely a case of a localized sector showing strong performance.

In fact, the A-share market is facing a liquidity crunch, and new shares can no longer be issued. The daily turnover of the entire market has shrunk to less than 5000 billion yuan. If quantitative trading is excluded, it may only be more than 3000 billion yuan.

With such limited trading volume, liquidity is further drained by the "sexual pleasure" and "humanoid robot" themes, and the behemoth Lingjing Technology steadily draws out 40-50 billion yuan of trading volume every day. How much liquidity can the other 5000+ stocks in the A-share market get?
Today saw a broad-based rally, with over 5100 stocks rising across the market and only a few falling. Almost all sectors were on the rise.

After a correction following its breakout from a "leopard top" of 777.77 yuan, Likang Technology, listed on the Beijing Stock Exchange, rebounded strongly today with a 30cm limit-up, closing at 597.47 yuan after hours, with its market capitalization rising to 2778.23 billion yuan.

Since September, Lingjing Technology's daily candlestick chart has formed a converging triangle flag pattern at a high level. Today, it broke out of the flag pattern upwards, forming a large bullish candlestick with high volume. After hours, it surged 7.41% to 275.92 yuan, with its market capitalization rising to 23.95 trillion yuan. The daily turnover also exceeded 9 billion yuan, reaching 1416 billion yuan, an increase of 955 billion yuan compared to yesterday.

Two months ago, Lingjing Technology reached a record high of 305.11 yuan before entering a period of adjustment, with the largest adjustment reaching -19.20%.

Since its launch on August 19th, "Flowing Star Language" has been a phenomenal hit across the internet. While the stock price of its neighbor, Likang Technology, has skyrocketed, the stock price of Lingjing Technology, the technology developer of this product, has not only failed to rise during the same period, but has actually been adjusting.

This is due to the drag from the overall A-share market environment. The logic is that in the past two months, most stocks have continued to fall and hit new lows, the Shanghai Composite Index has once again plunged to more than 2600 points, and the net value of many funds has also fallen below historical lows and hit new lows.

This has led to countless fund investors becoming extremely disappointed and choosing to redeem their funds, resulting in enormous redemption pressure on the funds. Fund managers have been forced to sell stocks to raise cash in order to cope with the redemption pressure.

A fund typically buys a basket of stocks. If a fund manager sells those stocks that have already fallen to rock bottom in order to cope with redemption pressure, then they are essentially cutting their losses at rock bottom.

With little liquidity available now, even a small amount of selling pressure can trigger a limit-down, causing the net asset value to fall even further and triggering more panic redemptions from fund investors.

However, Lingjing Technology has been operating at a high level, and has even reached new historical highs multiple times this year, remaining at a high level even after adjustments.

At this juncture, to alleviate the redemption pressure on fund investors, fund managers may sell Lingjing Technology's shares to cash out. They may sell too early in the future, but at least it cannot be called cutting losses; rather, it is taking profits.

This avoids the risk of selling stocks that have fallen to rock bottom. Lingjing Technology is not only at a high level, but its liquidity is also unmatched by other stocks. Even with extremely low trading volume, the daily turnover is still 400 to 500 billion yuan.

Therefore, Lingjing Technology actually made adjustments during this period because many public funds were forced to sell and cash out.

The latest data shows that Lingjing Technology has nearly 3000 million shareholders.

What does this number mean? It means that one in five stock investors holds at least 100 shares of Lingjing Technology.

Meanwhile, Lingjing Technology has also become a super stronghold for public and private fund institutions. Half-year report data shows that more than 7400 institutions have allocated to the stock, which is the highest number of both retail investors and institutions ever.

With so many institutions clustering together and many funds facing redemption pressure, Lingjing Technology's largest adjustment from its high point in the past two months has not exceeded -20%, demonstrating an exceptionally strong resilience.

If it were any other stock, facing such heavy selling pressure from institutions, it wouldn't just drop by 20%, but would be halved again, or even suffer a massive collapse and stampede.

Fortunately, 3000 million retail investors stepped in to support the market, becoming the main force of the bulls in protecting the price and offsetting the selling pressure from more than 7000 institutions. Otherwise, the price would have been halved by the institutions long ago.

Ultimately, however, the fundamentals of Lingjing Technology are solid enough, and the expectation of high growth remains unchanged. If the price really falls too much, a lot of funds will buy the dip, so the price won't fall too deep.

……

(End of this chapter)