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

Chapter 262 Time will tell.
Seoul, South Korea.

No. 20, Yeongdeungpo Road, Seocho-gu.

Here stand three silver towers, like a triangular tripod, forcing all living beings to look up at them.

The “Giant Peak” building is none other than the global headquarters of the Samsung Group.

There's a saying on the South Korean internet that describes Samsung Group like this: If you were born in South Korea, Samsung Group's businesses will permeate your life until you die.

Why is it so exaggerated?
Very simple.

Samsung Group has businesses in many fields, including electronics, commodities, finance, machinery, chemicals, and apparel, covering almost all aspects of life, including clothing, food, housing, and transportation.

As a mega-corporation, its total consolidated revenue in 2008 was 247.5 trillion won, approximately US$2201 billion.

This data includes the combined performance of its 85 subsidiaries, with Samsung Electronics contributing the most, with annual sales of $965 billion, accounting for 43.8% of the group's total revenue. The mobile phone business generated approximately $241.25 billion in revenue, accounting for 25% of the total revenue of the electronics business.

Many people believe that Samsung mobile phones are the lifeblood of the Samsung Group, but this is not the case. Its business scope is far greater than imagined, with mobile phone business contributing only 10% of the total annual revenue.

At this moment, in the chairman's office of Samsung Group's headquarters, Lee Kun-hee placed his fingers interlaced on the desk, his gaze somewhat hesitant, and asked, "Fu-jin, are you saying that a Chinese company has promised to generate 10 billion Chinese yuan in net profit for Samsung Group over five years?"

As the de facto head of the Samsung Group, Lee Kun-hee's tone carried a subtle air of authority.

Despite being 67 years old, he still cares a lot about his image, especially his silver-gray hair, which is meticulously combed, as if every strand has been precisely calculated.

Wearing a khaki trench coat, a white shirt, and dress pants, the neat and sharp-looking Lee Boo-jin nodded and replied, "The other party is Zhang Yang, the founder of Caiyan.com, so he has a certain degree of credibility."

"Financial Research Network?"

Lee Kun-hee had vaguely heard of this company.

"The young man who spent $320 million to win the Buffett charity lunch this year is currently a rising star in China's financial circle. He may be representing the interests of certain individuals because he is too young, having just graduated from university this year."

Lee Boo-jin had clearly figured out Zhang Yang's background and told him everything she knew.

Lee Kun-hee: "A four-year bachelor's degree?"

"Yes, they call it undergraduate in China."

When Lee Boo-jin nodded in confirmation, a look of seriousness flashed across Lee Kun-hee's eyes. Such a young entrepreneur was most likely a spokesperson for certain interest groups, with almost no exceptions.

Why do you say that?

The reason lies in age. Zhang Yang is actually too young, only 22 years old. Without powerful backing and involvement in a certain interest group, Lee Kun-hee does not believe that Zhang Yang could come up with $320 million to have dinner with Buffett.

Of course.

It cannot be ruled out that Zhang Yang's family may have contributed to the funding.

Thinking of this, Lee Kun-hee asked again, "Have his parents been identified?"

"They're all from small counties, with no special backgrounds. I've analyzed this carefully these past few days, and Zhang Yang is most likely a spokesperson for Bao Xingwei, the dean of finance at Shanghai University of Finance and Economics. Bao Xingwei has been staying in Beijing for many years. Going a little deeper, Zhang Yang might represent a northern interest group."

Lee Boo-jin shared her analysis.

"If the Northern interest group is indeed a spokesperson, then achieving a net profit of 100 billion Chinese yuan in 5 years is quite possible," Lee Kun-hee replied thoughtfully.

Ordinary people can only see a part of the picture when it comes to wealth; they have no idea how many interest groups exist in the world.

Forbes Rich List?

They are all puppets held by others.

Just like the glaciers at the North and South Poles, you can only see a corner of them; the real icebergs are completely hidden underwater.

"So, do you agree to let me supply him with goods?" Lee Boo-jin asked, a hint of anticipation in her voice.

The hotel business has reached a bottleneck. If she wants to advance further within the Samsung Group, she must get ahead of her brother Lee Jae-hee and acquire new businesses to develop and expand.

Most importantly, Lee Kun-hee is already 67 years old and his health is no longer what it used to be. If Lee Boo-jin cannot develop and control other group businesses while her father is still alive, she will still be the "decorative vase" role.

Lee Kun-hee wasn't senile yet; he naturally knew what Lee Boo-jin was up to, but she was his most beloved daughter, putting him in a dilemma.

Will Lee Boo-jin's growth and expansion lead to a future power struggle with Lee Jae-yong for control of the group?

After careful consideration, Lee Kun-hee shook his head and said, "I plan to hand over the electronics market in China to your brother, Lee Jae-yong. Boo-jin, you can work harder and take over the clothing business."

"clothing?"

Lee Boo-jin looked utterly disappointed.

Everyone knows that Samsung Electronics is the biggest contributor to the Samsung Group, with sales of US$965 billion in 2008, accounting for 43.8% of the group's total revenue. In contrast, the apparel business accounts for less than 2% and has been consistently outperformed by the LG Group and World Union Group, with its net profit almost turning negative.

"The apparel business also has potential. The global economy is recovering, and domestic demand in South Korea is expanding. Moreover, as a woman, you naturally understand aesthetics and know better what kind of clothes can catch consumers' eyes."

Lee Kun-hee's words were loaded with meaning.

On the surface, it says that women understand aesthetics, but in reality, it implies that Lee Boo-jin is a woman and could not possibly take over the Samsung Group.

Although Lee Kun-hee doted on Lee Boo-jin, when it came to making choices, he would still lean towards the interests of the group.

"I understand, Father." Li Fuzhen was truly unwilling, but he did not show it.

Upon hearing this, Lee Kun-hee nodded slightly and said, "Go back and do your best to manage the clothing business well."

"it is good."

Lee Boo-jin did not linger and left the chairman's office directly.

As soon as she stepped out of the office, she no longer concealed her feelings. Resentment and anger were intertwined in her eyes. The Chinese market definitely had huge potential. If she couldn't control Samsung Electronics' business, then when Lee Kun-hee passed away, Lee Jae-yong might take back all her business and credit.

"Let it go?"

"No!"

We must find a way to try and win them back!

Li Fuzhen murmured to himself.

……

And on the other side.

Hangzhou, China.

Alibaba headquarters building.

At this moment, Ma Yun was having a face-to-face conversation with Shen Jun, the founder of Eastmoney. The latter made a direct promise: "Mr. Ma, I have received reliable information that Xueyu Securities will publicly auction its securities sales license within six months."

"As a leading internet finance company, Eastmoney has a very high probability of winning over Alibaba. As long as Alibaba supports Eastmoney, I am willing to give 15% of the net profit of my securities sales-related business to Alibaba."

"Isn't 15% a bit too little?" Ma Yun said slowly, taking a sip of tea.

To be honest, he was also a little tempted by the public auction of securities sales licenses.

However, considering the hidden barriers, he has been looking for relevant stakeholders to align with during this period, including Eastmoney, Tonghuashun, and Caiyan.com.

Regardless of which of these three companies wins, Alibaba will be the winner because it holds shares in all of them.

“I’m an open and honest person, and I only speak frankly. A 15% discount is already the limit, because besides Mr. Ma, I’ve also contacted other companies, just to secure the deal.”

Shen Jun mentioned other companies, seemingly reminding Ma Yun that Alibaba was not the only investor and that if she wanted to join, she should do so at a 15% stake.

Since learning that Xueyu Securities' "Securities Sales License" was to be auctioned, he has been attending various business dinners in the Yangtze River Delta region.

Including the 15% promised to Ma Yun, Eastmoney will have to give up 60% of its securities business revenue in exchange for investor support.

Is it a loss?

Actually, it's not a loss!

Without this capital, Shen Jun wouldn't know how to compete with Tencent, Sina, and NetEase; he would have had no choice but to invite them in and share the revenue from the securities business.

To put it bluntly, without introducing external capital, the probability of obtaining a securities sales license is almost zero. After introducing external capital, even if 60% is given up, Eastmoney will still have 40%, which is the new growth revenue.

After careful consideration, Ma Yun asked, "How much will Alibaba invest?"

"If possible, I would like this limit to be unlimited."

Shen Jun's sudden outrageous demand amused Ma Yun. He smiled and said, "No upper limit? Don't joke around. Alibaba currently has 70 billion yuan in its accounts. I can only support you up to 20 billion yuan."

"No less, let's say 30 billion."

Shen Jun didn't forget to haggle, and then continued, "Once we get the securities sales license, I'm confident we can become a top securities firm."

Currently, the leading securities firm is Huaxin Securities, which had a total revenue of RMB 65.4 billion and a net profit of RMB 47.69 billion in 2008.

Assuming Eastmoney truly reaches the top and its net profit reaches 47.69 billion yuan, Alibaba can receive 7.1535 million yuan. With a loan investment of 30 billion yuan, the return on investment can be achieved within 5 years, which is not a long timeframe.

Most importantly, the trading volume in the securities market was sluggish throughout 2008. Huaxin Securities' top revenue is only for reference. In the future, net profit will only increase, not decrease. After all, Ma Yun must have known that the government was loosening monetary policy so drastically.

"I will think about it."

Ma Yun did not rush to agree.

Now that Shen Jun from Eastmoney has come knocking, who knows, in a couple of days, Yi Zheng from Tonghuashun and Zhang Yang from Caiyan.com will also come knocking.

A qualified businessman knows how to compare prices from different vendors.

Shen Jun knew what Ma Yun was up to, so he simply revealed the information to increase his standing in her eyes: "I have already convinced Legend Capital, but I hope to get funding from Alibaba even more. I also hope that Mr. Ma can give his full support. Eastmoney will certainly live up to your expectations."

When those words were spoken, Ma Yun's conscience began to tip in favor of Shen Jun.

He originally preferred the ostentatious financial research website because the young man's potential was obvious, and he also wanted to further enter the financial research website to obtain the greatest benefits.

But now?

They've already convinced Legend Capital. What is Legend Capital?
Lenovo Group's venture capital arm.

In other words, backed by Eastmoney is Lenovo Group and other potential members of the Taishan Club.

Lenovo Group's final offer convinced Ma Yun to stop hesitating, and she nodded, saying, "Okay, we'll do it your way. Alibaba will invest up to 30 billion RMB. Once we get the license, Alibaba will take 15% of the net profit from Oriental Fortune Securities' related businesses."

"no problem."

Shen Jun breathed a sigh of relief.

Having secured deals with Alibaba and Lenovo, and then integrating other investment institutions, he was confident he could succeed.

Like Shen Jun, Yi Zheng of Tonghuashun is also seeking investment everywhere. He has also approached NetEase Finance, hoping to learn from Caiyan.com's acquisition of Baidu Finance, merge the two, and jointly obtain a securities sales license.

As for Sina and Tencent, both companies were in meetings, meetings, and more meetings.

After the departmental meeting, the leaders hold theirs, and after that, the next level of leaders holds theirs to discuss how much investment should be made to obtain a securities sales license.

It's no exaggeration to say that at this point, all internet finance companies are striving for that qualification license from Xueyu Securities.

Why work so hard?

The meaning above is very clear.

They would rather publicly auction off Xueyu Securities Company and let other companies compete for it than issue a new securities sales license, which might be the only one available.

……

In contrast, the A-share market has completely transformed from a sluggish state to a strong one.

In just three days, the Shanghai Composite Index achieved three consecutive days of gains: 1.2% on October 30, 2.7% on November 2, and 1.22% on November 3, which is today, closing at 3114.23 points. It not only reached the long-awaited 3000-point mark but also firmly established itself above it.

As soon as the index stabilized above 3000 points, Li Daxiao released a video about raising cattle.

[Today is Tuesday, November 3rd, 2009. It's a wonderful day. The Shanghai Composite Index closed at 3114.23, 114.23 points above 3000. Trading volume reached 170 billion. All signals point to an upward trend, a breakout, and a climb. Therefore, I am very optimistic about the A-share market tomorrow. The bull market, which has been trapped for so long, should finally start a new round of gains. Let's cheer for this "breakthrough bull market"! Go, breakthrough bull market! Overcoming difficulties is the key to a bull market!!]
In the video, Li Daxiao is beaming with pride, basking in the glory of his accurate prediction.

As soon as he learned that the October manufacturing PMI was 55.2%, marking the fifth consecutive month of expansion, he knew that the bull market in A-shares was about to begin again.

Why so sure?
The stock market is a barometer of the economy.

One indicator that can directly judge the state of the economy is the manufacturing PMI data, because the 50-point threshold is very intuitive.

With economic support and the need for the ChiNext board to operate stably for a period of time, Li Daxiao judged that A-shares would rise for a while.

Retail investors who made money in the past two days also commented below Li Daxiao's video.

[Go with the flow]: Is this a bull market? Interesting. Made 3 yuan in three days. I feel like I'm no different from Buffett!

[Loves Strawberry Tart]: Everyone says that Buffett's 20% compound interest rate in a year is amazing, but I've achieved almost 40% compound interest in three days. Am I even more amazing than him?
[I didn't actually sleep that night]: Hu Xijin might really have some inside information. There are indeed opportunities everywhere below 3000 points. I added a little less, only 10. I should have gone all in.

[Elementary school student]: You guys are all so rich. I only had 5000 yuan in capital and only made 7000 yuan in a year. I'm trying to make 5 yuan in this bull market.

Retail investors were buzzing with excitement, clearly indicating that the three days had been very profitable.

Meanwhile, in the open-plan trading and office area on the 7th floor of Building A in Zhangjiang Changtai, Liao Guopei couldn't help but complain, "China Unicom's stock price is still rising. How can it keep going like this?"

Because he and Lin Guangchang took a direct flight, they arrived in Shanghai around noon. As soon as they landed, Liao Guopei and Lin Guangchang rushed back to their base camp.

"7.66 yuan, up 0.92%. Although the growth rate has slowed down, it feels like the main funds are still increasing their buying."

Lin Guangchang continued.

"What a pity. If we had reduced our holdings today, we could have made an extra 500 million," Chen Xiaoqun remarked from the side.

On the previous trading day, Monday, November 2nd, Zeng Lingshan, Feng Weiqiang, and Chen Xiaoqun, following Zhang Yang's instructions, reduced their holdings of Huaguo Unicom shares by 500 million yuan, totaling 6684.49 million shares. The average selling price was 7.48 yuan. Currently, the "Zhangjiang Gang" still holds 2.017843 million shares of Huaguo Unicom. Since they did not engage in day trading, their cost price remains at 6.67 yuan. After deducting transaction fees, their available funds have returned to 4.99 million yuan.

Sitting on the other side, Feng Weiqiang seemed to remember something and said, "I really didn't expect it to go up. I went to the nearby Apple Store last night and asked. A new batch of Chinese version iPhone 3GS will arrive tonight, about 500 units."

"The opponent was too resolute."

Zeng Lingshan uttered a sigh.

He used to be a retail investor and thought that stock price fluctuations were a market behavior. But after joining the "Zhangjiang gang", he finally realized that all stocks in the secondary market were being manipulated.

The opponents he referred to were Xu Xiang and Ge Weidong, among others.

"Hong Kong stocks are still rising."

Lin Guangchang suddenly reminded him again.

Since Hong Kong stocks close at 4 p.m., trading is still ongoing.

The Hong Kong-listed shares of China Unicom rose 2.13% more than their A-share counterparts, currently trading at HK$11.93, a difference of HK$0.25 from the benchmark price of HK$11.68.

Liao Guopei glanced at the stock price and couldn't help but sigh, "I wonder how confident Joker is. This time we've staked everything on it; it's all or nothing."

"It's not that exaggerated. Even if we fail, it won't mean we'll die for our cause. I have confidence in Joker's judgment," Lin Guangchang said calmly.

“I have faith in him too, but speaking of which, what is he going to Shenzhen for? Why didn’t he fly directly to Shanghai with us? Could it be that he has some kind of love affair?” Liao Guopei was a bit gossipy.

Just then, Zhang Yang's slightly magnetic voice came through: "Beijing, Shanghai, Guangzhou, and Shenzhen don't believe in tears; making money is the only way to go. How's the market today?"

"The boss is back?"

When did the Joker arrive?

"Good afternoon, Joker."

"He looks radiant. Did Joker secretly go for a foot massage behind our backs?"

"I'm so sorry, boss. China Unicom has gone up again. But the good news is that the IoT concept stocks on the ChiNext board that we're interested in have fallen. We should be able to get involved in them after a while."

The members of the "Zhangjiang gang" stood up to greet their gang leader.

Zeng Lingshan, on the other hand, was like an honest man, immediately talking about the stock market situation, completely lacking in social skills and manners.

However, Zhang Yang didn't mind. Although the "three little ones" hadn't grown up yet, he already considered them brothers.

"I rushed back as soon as I arrived." Zhang Yang responded to Lin Guangchang first, then looked at Zeng Lingshan and said, "So, let's reduce the 5 million?"

"We've already reduced our holdings. We found a relatively high price and sold 6684.49 million shares. We now have about 4.99 million yuan in available funds."

Zeng Lingshan replied.

"Not bad." Zhang Yang nodded slightly, and as he walked to his seat, he asked, "How are the ChiNext stocks like Yinjiang Technology, Hanwei Technology, Xinning Logistics, Wangsu Science & Technology, Robot, and Huaxing Venture doing?"

"It's still pulling back."

Chen Xiaoqun quickly answered.

Since the government cracked down on the ChiNext board, its stocks have experienced a continuous decline. Hanwei Technology and Yinjiang Technology, two "true dragons," closed at 39.61 yuan and 29.9 yuan respectively on November 3, with declines of 9.65% and 8.73%, still representing a significant pullback.

As for the four IoT concept stocks—Xinning Logistics, Wangsu Science & Technology, Robot, and Huaxing Venture—Robotics and Wangsu Science & Technology have already turned positive, closing at 49.45 yuan, up 1.27%, and 41.98 yuan, up 1.65%, respectively.

After Zhang Yang sat down, Liao Guopei said with some concern, "Joker, we've placed such a large bet this time, and China Unicom's stock price is still rising. Could something unexpected happen?"

"No, let the bullets fly a little longer," Zhang Yang said with a faint smile.

Time is a good thing; it will tell everyone the answer.

Seeing Zhang Yang's confident demeanor, Lin Guangchang changed the subject, saying, "By the way, Joker, when should we get involved in the Internet of Things (IoT) concept? Robotics and Wangsu Science & Technology have already risen in price; should we still buy these other speculative stocks?"

"I won't buy them; I'll pass on these two."

Zhang Yang said decisively.

If a miscellaneous stock rises ahead of time, it means that its "Internet of Things" value has already been realized. Of course, the Internet of Things value may not have been realized; it could very well be in other fields.

Take robots, for example. The rise in their stock price is not necessarily due to speculation on the Internet of Things, but may also be due to speculation on industrial robots themselves.

"When should we buy other ones? After China Unicom makes a profit?"

Lin Guangchang pressed for further details.

"Pretty much. During this period, we'll just do some T+0 trading to lower the cost basis of our holdings in Far East Valley and Newland. Once the money from China Unicom arrives, we'll pump up the entire sector," Zhang Yang replied.

They've basically staked all their money on China Unicom. A safer approach would be to wait for the funds to arrive and avoid fighting on two fronts.

Upon hearing the phrase "waiting for China Unicom's money to arrive," Little Crocodile Feng Weiqiang asked with a puzzled look, "Boss, I'm actually a little confused. If the domestic version of the iPhone 3GS sells poorly, will China Unicom's stock price necessarily fall? Can't even the combined efforts of institutions and speculative funds stop the decline?"

Although stocks are based on speculation about future expectations, the opposing side clearly has a financial advantage and can influence stock prices to some extent.

Faced with this question, Zhang Yang first opened the financial research website and browsed the market data before calmly replying: "The control logic of blue-chip stocks and small and medium-sized stocks is different. Even if speculative funds and institutional investors stick together, they cannot stop the downward trend."

For small and mid-cap stocks, a few billion or two billion yuan can influence the stock price.

Even setting aside whether the national team will intervene to monitor a blue-chip stock like China Unicom, given its combined market capitalization of 4000 billion yuan in the A-share and Hong Kong stock markets, what institutions or speculative funds could possibly gain control of it?

"Time will tell, let's wait patiently."

Zhang Yang kept it a secret.

Just as Zhang Yang uttered those words, the spies he had arranged had already begun to memorize the "return and refund" process fluently.

At this point, some people might ask, can contract phones be returned and refunded?
Yes, but it's a bit complicated.

In 2009, Apple's official website and product manuals clearly stated that the Chinese version of the iPhone 3GS enjoyed a "7-day return policy, 15-day exchange policy, and 1-year warranty" service, but the prerequisite for returning the product was that there was no performance failure caused by human error.

Since a "Network Service Agreement" has been signed, the operator will most likely use this as an excuse to refuse a return and refund. However, as long as you state that you will bear the penalty for breach of contract and lose part of the prepaid phone credit, and then use the terms and conditions on Apple's official website and product manual to reason with them, you can basically terminate the contract.

Of course, the return wasn't the main point, and Zhang Yang didn't stockpile a large number of official Chinese iPhone 3GS phones. What he wanted to do was set a bad precedent, so that consumers who were dissatisfied with the phone could have an example to refer to when returning and getting a refund.

This is like the first snowflake before an avalanche. Its power is insignificant, but as time goes by, more and more snowflakes are carried down, and the power that eventually gathers is enough to shake the entire world.

(End of this chapter)