Starting with a fully invested A-share portfolio to become a capital...

Chapter 257: 28 companies listed on the Growth Enterprise Market (GEM) named; Liu Bei, Guan Yu, and Zhang Fei set foot in the Central Feng Shui Bureau.
With Lee Boo-jin announcing a "response within seven days," the dinner about Samsung's LCD phone screens came to a close amidst clinking glasses.

"You two walk slowly."

Zhang Yang saw the guests off at the hotel entrance.

Samsung Group's Mercedes-Benz S-Class was parked in the hotel's parking space, and its chauffeur, dressed in a suit and wearing the brand's signature white gloves, had already opened the car door to greet them.

Li Yanfan stopped and smiled in response, "President Zhang, please wait a moment."

Zhang Yang: "Okay, be careful on the road."

Li Yanfan: "Take care, Mr. Zhang."

"Take care of yourself."

Zhang Yang and Li Yanfan exchanged polite business pleasantries, while Lee Boo-jin, the "eldest princess of the Samsung Group," remained expressionless and sparingly said, "Take care."

After saying that, Lee Yeon-beom and Lee Boo-jin turned and left.

Zhang Yang, who was standing at the hotel entrance, only looked away after watching the two of them get into their Mercedes-Benz S-Class.

To be honest, he never expected that it would be Lee Boo-jin who came to discuss this deal.

Zhang Yang described this woman as ruthless, not only towards others but also towards herself.

why would you say so?

In South Korean chaebol families, women are generally used as tools for marriage alliances. Once married, they have no further connection with the main family and can only be a breeding machine for a life of comfort and livelihood, unable to get involved in the family business.

But what did Li Fuzhen actually do?

She went on a hunger strike to marry her bodyguard, allowing him to marry into the Li family and thus preserve her status within the Li family.

As the saying goes, a married daughter is like water spilled from a cup. If she hadn't let her bodyguard marry into the Li family, she would have been reduced to a tool for marriage and lost her status in the Li family.

After marrying into the Baoquan family, Lee Boo-jin managed to get the Shilla Hotel, which had annual sales of only 4300 billion won and had been losing money for years, into the 2005 Forbes list of the world's best hotels in just four years.

Today, Hotel Shilla is no longer limited to the "Korean luxury concept" and has also launched a duty-free business. Through the "hotel + duty-free" dual-drive model, the hotel's sales have exceeded 1.2 trillion won, equivalent to 67 billion yuan, nearly three times that of 2001.

This ruthless person is labeled as a love-obsessed person by the outside world, but Lee Boo-jin has never "denied" this, and she also needs the stereotype of being a love-obsessed person.

"Lee Boo-jin's personal visit to discuss this matter may indicate that Samsung Group does not place much importance on the Chinese market, and that she may also want to further expand her business empire beyond the hotel business."

Zhang Yang analyzed in his mind.

According to a report by CCID Consulting, Samsung sold approximately 52.8 mobile phones in China in 2008, accounting for only 3.1% of the market share, with sales ranging from RMB 15.3 billion to RMB 22.3 billion. Nokia, on the other hand, held an absolute dominant position with a 67.3% market share.

It's understandable that Samsung Group doesn't prioritize a small market of 15.3 billion to 22.3 billion Chinese yuan, since for Samsung mobile phones, entering developed countries is far more important than developing countries.

Just as Zhang Yang had guessed, Samsung Group originally did not want to do business with Zhang Yang, believing that it would not bring much revenue growth and there was no need to supply Samsung LCD mobile phone screens. However, Lee Boo-jin felt that the Chinese market had huge consumption potential, but it would take time to realize it.

However, the bet proposed by Zhang Yang has left Li Fuzhen somewhat bewildered.

With a net profit of 100 billion over 5 years, how many Samsung LCD or OLED screens would that require to sell?

Where does Zhang Yang's self-confidence come from?

At this moment, Lee Boo-jin was still thinking about this question. She really couldn't understand how Zhang Yang, an entrepreneur who ran a financial website, dared to make such outrageous remarks and start a cross-industry bet of 100 billion.

After the Mercedes-Benz S-Class had driven some distance from the hotel, Lee Boo-jin slowly spoke, "Are you sure Zhang Yang's personal information is correct?"

"No, it can't be wrong."

Li Yanfan was resolute.

"That's really strange. How did he, a recent graduate from a small county, manage to run Caiyan.com and dare to promise us 100 billion yuan in net profit over 5 years?"

As soon as Lee Boo-jin finished speaking, she added, "Really no other background?"

“Other background…” Li Yanfan thought carefully and replied, “Dean Bao Xingwei of Shanghai University of Finance and Economics is quite close to him, and Zhang Yang seems to have become his student.”

"Is Bao Xingwei very famous?"

Lee Boo-jin asked again.

“This senior member of China’s financial think tank, though retired, still carries some weight,” Li Yanfan replied.

"So that's how it is. No wonder someone from a poor background could make a name for themselves so quickly. It turns out they had someone supporting them." Lee Boo-jin suddenly realized.

For ordinary people, university is an excellent springboard for life.

Take medical students for example. Once the professors who teach at the school leave the campus, they become experts who are so highly sought after that it can take up to six months to get an appointment. Medical students can not only easily meet with them, but also get their contact information.

It's not just medical students; the better the school, the more social resources the professors have. Companies that others dream of and desperately want to get into can be entered without an exam by a university professor with just a letter of recommendation.

University is a springboard, but only a small percentage of students can seize the opportunity; the vast majority spend their time in romantic relationships.

……

The weekend flew by, and the news was plentiful.

1. In its interest rate decision, the Federal Reserve decided to maintain the federal funds rate at 0-0.25% and stated that it would continue to purchase mortgage-backed securities until the first quarter of 2010.

2. The APEC informal meeting was held in Singapore on October 31, with the theme of "Global Economic Recovery and Trade Liberalization".

3. Starting from November 1st, the "Measures for the Testing and Supervision of Fuel Consumption of Road Transport Vehicles" will be officially implemented, requiring mandatory testing of fuel consumption of operating vehicles and publicizing models that meet the standards.

4. The comprehensive supporting reform pilot financial innovation plan of Tianjin BHX District has been approved, allowing for comprehensive operation pilot projects and the establishment of financial institutions.

The manufacturing PMI reached 55.2% in October, marking the fifth consecutive month of expansion and surpassing the 50-point threshold separating expansion from contraction.

……

The number of new A-share accounts opened in October increased by 28% month-on-month, reaching 127 million, which is expected to inject 5 billion yuan of liquidity.

9. On October 30, the day the Chinese version of the iPhone 3GS was launched, it sold 7221 units, and distributors across the country ran out of stock. China Unicom was named the biggest winner by the First Economic Daily.

10. Several authoritative financial media outlets have warned that the prices of 28 companies listed on the ChiNext board are too high and that the risk of a price drop should be guarded against.

Judging from the news over the weekend, the Federal Reserve's decision to keep the federal funds rate unchanged undoubtedly reassured the global economic recovery.

Why do you say that?

During a Federal Reserve rate-cutting cycle, the amount of US dollars worldwide will increase. This money can boost the development of relevant countries or industries wherever it flows.

In addition, China's manufacturing PMI index in October was 55.2%, showing an expansionary trend for the fifth consecutive month. This undoubtedly sends a clear signal that China's economy is gradually recovering and showing a steady and progressive trend.

To determine whether an economy is experiencing inflation or deflation, simply look at the manufacturing PMI index.

Economic inflation and economic deflation are two different investment logics.

For example, with economic inflation, currency will depreciate rapidly. A year later, 100 yuan may only be worth 85 yuan. At this time, one can purchase assets such as real estate, gold, and cars in advance to anchor the value and avoid the middle class falling back into poverty.

Looking at the 10th news item, several authoritative financial media outlets warned that the prices of 28 companies listed on the ChiNext board are too high and that the risk of a price drop should be guarded against.

The numerous authoritative financial media outlets mentioned here actually only represent one source, as the others merely repost information from the *China Securities Journal*.

[China Securities Journal]: The first batch of 28 ChiNext stocks saw an average increase of 106.23% on their first day of trading, with a static price-to-earnings ratio exceeding 110 and a dynamic price-to-earnings ratio of approximately 80. Industry experts warn that the prices of these ChiNext stocks have already overdrawn their growth potential for the next few years. Investors should pay close attention to the risks of significant price fluctuations and avoid blindly chasing the market to prevent being trapped in a long-term loss.

The China Securities Journal showed no mercy, using the phrase "the growth potential for the next few years has already been overdrawn" to point out the overheating.

The China Securities Journal, as one of the most widely read daily newspapers in China, joined the group to comment on the ChiNext market.

[Minzhong Daily]: On October 30, 2009, my country's Growth Enterprise Market (GEM) officially began operation. As a brand-new market, GEM brings opportunities to investors, but also presents many risks. Investors must have a full understanding of these risks before investing in GEM.

Whether it's the China Securities Journal, other financial media, or even the People's Daily, they are all talking about the risks of the ChiNext market.

In fact, anyone with a formal financial background could immediately see that the 28 companies listed on the ChiNext board were experiencing unusual price increases, clearly influenced by market sentiment.

Why are we being swayed by market sentiment?
The main problem is that the slogans are too catchy!
Which stock investor could resist such a temptation, given that the Nasdaq is comparable to the US stock market?

Emotions can generate premiums, but they can also become deadly weapons.

……

Monday, December 11nd.

Central, Hong Kong Island.

Central is the "heart" of Hong Kong Island, and its development history spans the island's transformation from a colonial port to an international metropolis.

In the early 20th century, HSBC and Standard Chartered Bank built their headquarters in Central. When the HSBC headquarters building was completed in 1935, it was hailed as the "most luxurious building in the Far East". The Hua Guo Bank also built its first building in 1939, forming the early "bank street", namely Des Voeux Road Central, which replaced Guangzhou as the financial center of South China.

"Is this the HSBC headquarters building? There really are two big cannons!" Liao Guopei, standing in Statue Square, looked up and couldn't help but exclaim.

"Cannons?" Lin Guangchang looked up and indeed spotted the two concrete cannons on the top of the HSBC building. He asked curiously, "Are they just decorations? Or is there something more to them?"

"You don't understand, do you? This is called architectural feng shui, and it's used to suppress evil spirits."

When the topic turned to architecture, Liao Guopei seemed to open up and told Lin Guangchang, "It is said that the land where the HSBC Building is located is a Three Killings position, meaning that there is evil energy on three sides."

"What is evil energy?" Lin Guangchang asked, puzzled.

"It's a negative energy, aura, or field that can have a bad influence on people; you can think of it as bad luck."

Liao Guopei explained the negative energy in plain language, and then said: "I heard from others that the HSBC Building is located on the south bank of Victoria Harbour, facing the sharp corner of Tsim Sha Tsui on the north bank. In feng shui, this sharp corner is called a form of negative energy. Especially when the sharp corner forms a straight line with the building, it will trigger the three negative energies, namely the robbery energies, the disaster energies, and the year energies."

"What's the difference between the Calamity Star, the Disaster Star, and the Year Star?" Lin Guangchang asked curiously.

"The Robbery Star signifies unexpected disasters, the Disaster Star signifies illness and financial loss, and the Year Star signifies an unlucky year. I heard this from my elders, but I don't know if I'm remembering it correctly," Liao Guopei replied.

"If I remember correctly."

At this moment, Zhang Yang chimed in.

The feng shui layout of buildings in Central, Hong Kong Island, has become a well-known phenomenon.

To counteract the negative energy, HSBC not only invested in Statue Square and continuously planted trees to create a layered structure to ward off evil, but also placed two lions at the entrance and left the ground floor empty, symbolizing that the negative energy "passed through the building." Finally, the cannon was used to overcome the strong with the strong.

"Joker, you know about these things too?"

Lin Guangchang was somewhat surprised.

Didn't we agree not to be superstitious or feudal?

How come you all know a little about feng shui?
Zhang Yang smiled faintly and denied it, saying, "I've only heard a little about the feng shui of Central, and after checking some related information, I don't know much."

The so-called "Central Feng Shui Layout" was actually initiated by the HSBC Tower, Bank of China Tower, and Cheung Kong Tower, with Citibank and Lippo Group subsequently adding their own architectural feng shui elements.

The HSBC Tower has a cannon on top, the Bank of China Tower has three steel blades on its sides, the Cheung Kong Tower has four iron barrels, the Citibank Tower has a knife sheath to ward off evil spirits, the Lippo Group has iron pillars for self-protection, and the Far Eastern Financial Centre has copper-colored sides, symbolizing reflection.

"You guys are quite knowledgeable; I've never heard of any of this." Lin Guangchang suddenly realized that his knowledge was too limited; he only knew that the Shanghai estuary was part of the Golden Toad Layout.

"I'll teach you a couple of tricks later. Now we should get down to business." Liao Guopei said, glancing at Zhang Yang beside him.

As soon as he finished speaking, Zhang Yang glanced at the time. It was already 9:14. He nodded and said, "Yes, let's get down to business first. You guys go to HSBC and Citibank and inquire about short selling services. See if you can use mainland securities as collateral. If you can, call me and I'll continue to talk to them remotely."

Liao Guopei: "Okay, let's keep in touch."

Lin Guangchang: "Understood."

They landed in Hong Kong Island yesterday, rested for a night, and now they want to sign the bond lending agreement as soon as possible so they can return to Shanghai.

After a brief division of labor, Liao Guopei and Lin Guangchang headed towards HSBC and Citibank respectively, while Zhang Yang found a corner spot in Statue Square to sit down.

"Once the bonds are borrowed, the offshore company for Caiyan.com should also be set up. Let's set the location in Hong Kong Island," Zhang Yang muttered to himself.

Generally speaking, offshore companies prefer the Cayman Islands because they not only enjoy a zero tax rate and high legal stability, but also do not need to disclose shareholder information.

However, Hong Kong Island also has its own advantages. One is the overall controllability of funds, since it has the big brother China watching over it. The other is the low tax rate, which allows for preferential tax agreements with the mainland.

Many people may not understand why it is necessary to set up an offshore company.

The simplest point is that it is possible to legally and compliantly transfer funds from a mainland company to an offshore company through dividends for diversified international investments.

Zhang Yang wants to invest in Hong Kong stocks, but he only has a foreign exchange quota of US$5 per year. Even if he asks several relatives for help, it will be a drop in the bucket. If he wants to look to the international market, he must first set up an offshore company and invest through the company's funds.

……

While Zhang Yang, Liao Guopei, and Lin Guangchang were busy borrowing securities in Hong Kong, mainland retail investors were crying out in despair.

[I didn't actually sleep that night]: Holy crap, did the Shanghai Composite Index break some kind of law? How could it have fallen so much?!

[Super Little Flower]: What's going on? Weren't the weekend all positive news? Why did the Shanghai Composite Index drop so much?

[Kicking the lame man's leg]: 28 companies on the ChiNext board experienced sharp declines, and if nothing unexpected happens, they are the ones that dragged down the market.

[I'm not a stock market guru]: I'm quitting. Give me my money back! I'm still a kid, just started my sophomore year of college, sob sob.

As of 9:25 AM, the Shanghai Composite Index opened at 2933.82 points, down 2.07%. The four major banks and securities firms collectively sold off their shares, with ICBC down 1.78%, Huaguo Bank down 1.72%, and Huaxin Securities down 3.11%.

Why is the price falling so sharply?

the reason is simple.

It was the ChiNext board that dragged down the market!

At this point, the Shenzhen Composite Index has fallen by 3.6%, breaking through the 12000-point mark, and is currently trading at 11848.05 points.

All 28 companies that went public on the ChiNext board on October 30th experienced significant declines to varying degrees.

Zhang Yang planned to accumulate shares in Hanwei Technology, which fell by 10%, from 48.71 yuan to 43.84 yuan.

这里值得一提的是，2009年创业板的涨跌幅限制为10%，与主板市场一致，直到2020年8月24日注册制改革后才调整为20%。

The three remaining members of the group at Zhangjiang headquarters couldn't help but marvel at Zhang Yang's decision to accumulate shares last Friday.

"20 out of 28 ChiNext stocks hit their daily limit down. Luckily, we didn't buy any last week, otherwise we might have been left holding the bag by retail investors."

"Both Hanwei Technology and Yinjiang Technology, two potential leading stocks, have hit their daily limit down. The news over the weekend was indeed very impactful. We must criticize them!"

"Joker is awesome! He's a master of emotions, direction, and consensus!"

According to the original plan, the "Zhangjiang Gang" was supposed to intervene in Yinjiang Technology, Hanwei Technology, Xinning Logistics, Wangsu Science & Technology, Robot, and Huaxing Venture on October 30, the day 28 companies were listed on the ChiNext board.

If a stock opens with a surge of 80%, 100%, or 150%, who would dare to get involved?

Although the Internet of Things (IoT) concept has huge potential for hype, you can still lose money if you get involved at the wrong time.

Many retail investors choose investment directions that are not inherently wrong, but their mistake lies in entering at the wrong time.

Just like buying gold, its value fluctuates with macroeconomic fluctuations. Suppose you went back to the eve of World War II, buying gold would definitely be the right thing to do, because it can lock in purchasing power and cope with turbulent situations.

However, if you hoard gold on the eve of the end of World War II, the cost-effectiveness would be very low, as there is not only limited upside potential but also the risk of a price drop.

Investing is not just about choosing a direction, but also about choosing the right time to get involved.

“When are we going to sell China Unicom? The boss told us to dump 5 million today.” Zeng Lingshan looked at Feng Weiqiang and Chen Xiaoqun.

"The buying interest in China Unicom is quite strong, and the market sentiment is still positive. The current decline is mainly due to the drag from the overall market. Let's see if there's a surge during the day, and then we can reduce our holdings when the price rises," Chen Xiaoqun commented.

After arriving in Hong Kong, Zhang Yang gave Chen Xiaoqun, Zeng Lingshan, and Feng Weiqiang a task: to reduce their holdings of China Unicom by 500 million RMB on November 2nd, which is today.

The "Zhangjiang gang" currently holds 2.686292 million shares of China Unicom, which, based on the current share price of 7.19 yuan (a 0.83% drop), is worth 19.31443 billion yuan.

"Indeed, buying interest is very strong, and the manufacturing PMI is 55.2%, showing an expansionary trend for the fifth consecutive month. I don't think the market can be pessimistic, and today there is a possibility of a recovery," Feng Weiqiang analyzed.

Although Feng Weiqiang and Chen Xiaoqun spent relatively little time with Zhang Yang, Liao Guopei, and Lin Guangchang, their trading talent is undeniable; they grasp concepts almost instantly.

Zeng Lingshan, who dropped out of school to trade stocks, is a bit different. He has slightly less talent and needs to think things through repeatedly to reach the level of Chen Xiaoqun and Feng Weiqiang. However, he is hardworking, reflective, and able to keep up with their trading thinking.

“Then let’s wait and see. I also think today is most likely a recovery, the sell-off was too severe,” Zeng Lingshan agreed.

The three chose to remain inactive for the time being, waiting to see how China Unicom would handle the internal fund transactions.

at the same time.

Zexi Private Equity's office space.

Xu Xiang looked at China Unicom, which hadn't moved for a while, and couldn't help but whisper, "Why don't Mr. J and the others take advantage of the situation to dump shares? The market is clearly correcting. If they just dump a few hundred million yuan, retail investors in China Unicom will most likely sell at a loss. Could they really be hedging their positions?"

It's unclear whether Ge Weidong's influence is at play, but over the weekend, China Unicom wasn't named by regulators. Instead, 28 companies listed on the ChiNext board were named by mainstream media outlets such as China Securities Journal, First Financial Daily, and Minzhong Daily.

The mainstream media's naming and shaming had an immediate effect; now, almost all 28 companies listed on the ChiNext board have hit their daily limit down, directly dragging down the entire market.

“They might be waiting for us to drive up the stock price, or maybe they should just take control and push it up?” Sun Guodong asked Xu Xiang.

After a period of operation, they have sold most of their shares in Shancheng Beer to retail investors. Now they have plenty of funds; Xu Xiang's Zexi Private Equity alone can mobilize more than 20 billion yuan.

"Even when the top manipulators drive up the price, they have to consider the trend. You can't be the first to stick your neck out," Ma Xinqi said, shaking his head.

“Xinqi is right. Although China Unicom has not been suspended from trading and is under investigation, it has certainly attracted the attention of regulators. We can’t be the first to step up; we have to let the mutual fund companies do it first,” Xu Haiou said.

"Accumulate shares slowly first; public funds will make the first move," Xu Xiang said in a deep voice.

He felt something was off, but he couldn't quite put his finger on it.

Sales figures for the Chinese version of the iPhone 3GS?
It's already sold out.

What are the future performance prospects of China Unicom?
With a prepaid phone credit of 3000 yuan, the number of people buying mobile phones has reached nearly 10,000, and that's for the high-end 128 yuan plan.

Using regulatory iron fist to suppress emotions?
China Unicom was not named or suspended from trading for investigation.

Xu Xiang couldn't understand it. He had been thinking about it for the past few days: what was "Mr. J's" trump card, and why did he dare to continue gambling?
In fact, it wasn't just Xu Xiang; Ge Weidong also felt uneasy, but he couldn't find the reason for his anxiety.

While institutional managers such as Xu Xiang, Ge Weidong, Zhao Danyang, Wang Yawei, and He Zhen were waiting for their chance to act, Lin Guangchang, who was being received by securities lending manager Chen Zikun in an office in the HSBC Building on Hong Kong Island, placed his mobile phone on the table and indicated, "I don't understand the ins and outs of securities lending. Let my older brother, Mr. J, talk to you."

(End of this chapter)