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

Chapter 286 The Enemy's Enemy: The Sentiment Logic of US and Chinese Stocks
"President He, we've really been set up!"

Yanjing Financial Street.

China Unicom Headquarters Building.

Jiang Xuan, a trusted confidant sent to investigate the decline in sales of the Chinese version of the iPhone 3GS, rushed into He Jingxing's office. He Jingxing, who was processing documents, raised an eyebrow and quickly asked, "What did you say? Who set this up?"

The defeat of the Chinese version of the iPhone 3GS left He Jingxing with a vague feeling that something was wrong, but he couldn't figure it out.

After all, the poor sales figures on Taobao's Double 11 are a genuine reflection of user votes, which cannot be faked.

He Jingxing asked Jiang Xuan to investigate, but it was less of an investigation and more of a way for him to convince himself.

It's worth noting that in order to secure the exclusive distribution rights for the iPhone 3GS in mainland China, China Unicom not only invested billions of RMB, but also signed a stringent "sales performance guarantee agreement" with Apple. Now, with poor sales, it needs to compensate Apple 25 billion RMB.

Although the losses did not exceed 10 billion, they have reached 5 billion.

"call--"

Jiang Xuan took a deep breath and came to He Jingxing, saying, "I don't know who set this up, but what I'm sure of is that someone funded and hired a group of people to deliberately inflate our sales figures for the first few days."

"How did you find out?" He Jingxing's eyes flashed with doubt, wanting to understand the whole story.

“I compared the surveillance footage from several Apple stores in Yanjing and found that there was overlap in the number of people. Someone bought a phone at the Dengshikou community store on the first day and then went to the Apple direct sales store in Dongsiying next door to buy one the next day. I found out that person’s identity and even went to his home. And guess what happened?”

Before He Jingxing could speak, Jiang Xuan revealed the answer: "He said he received 500 yuan from someone who asked him to queue up to buy an Apple phone. If it's just queuing, it's 100 yuan a day."

“I compared the surveillance footage from various stores and found that some people did answer phone calls or suddenly leave before the phone went on sale. So I concluded that someone was setting us up to inflate the sales figures for the first few days of the Chinese version of the iPhone 3GS, causing us to make a wrong judgment.”

"hateful!"

He Jingxing clenched his fists and gritted his teeth.

Originally, I was just trying to save face, but I didn't expect them to actually find something.

His mind raced, and he suddenly said decisively, "Telecom, it must be Telecom. Wei Ziqian is notoriously cunning."

Of the three major telecom operators in China, China Mobile holds a dominant position with 70.4% of telephone users. Even with slow progress in its broadband business, its telephone market share alone is enough to make it incredibly wealthy.

China Unicom and China Telecom are well aware that now that 2G is transitioning to 3G, if they want to stand out, they must compete on quantity, not quality.

Comparing call quality and network quality?
Neither of them can compete with China Mobile!

Since they can't compete on quality, both China Unicom and China Telecom have launched high-data-volume SIM cards, hoping to lure users to switch networks with data allowances.

However, the consistency of their strategies directly led to a head-to-head confrontation.

China Unicom offers high data rates, right?

Telecom launches larger data plans!

Seeing that China Telecom has launched larger data packages, China Unicom has also continued to increase its efforts by launching free data add-ons to its main data packages.

The ongoing conflict between the two companies led He Jingxing to subconsciously believe that China Telecom was behind it all, plotting to completely cripple China Unicom so that he could then compete with China Mobile for market share.

"It shouldn't be the telecommunications company."

Suddenly, Jiang Xuan spoke up.

"Huh?" He Jingxing asked, puzzled, "Why did you say it wasn't China Telecom?"

"If the telecom companies think the Chinese version of the iPhone 3GS will suffer a major setback, they can just wait and see. Why go through all this trouble?"

As soon as Jiang Xuan finished speaking, he added, "It's impossible that they would risk being caught red-handed by us just to make us lose a few million more, right?"

As the old saying goes: If you don't want others to know, then don't do it in the first place.

If it really was China Telecom that did it, they would definitely have left some clues, especially since China Unicom, China Mobile, and China Telecom all have people planted in each other's pockets. If they were caught red-handed, it would be difficult to explain to their superiors.

“But what if they just want to see us lose those millions?” He Jingxing asked again.

"No!"

Jiang Xuan shook his head and looked directly into He Jingxing's eyes, saying, "I think we should focus our attention on those who have already benefited from the situation."

"Vested interests?" He Jingxing was full of confusion. Apart from Apple, he couldn't think of a second vested interest.

But then again, Apple is a beneficiary of the existing system.
Yes, but not entirely.

Apple did win the betting agreement and is about to receive 25 billion yuan in compensation. However, compared to a market of over a billion people, it certainly doesn't want to take this money and has no motivation to resort to such a petty trick.

To reiterate, since both China Telecom and Apple believe the Chinese version of the iPhone 3GS is destined to fail, there's no need for them to try any more clever tricks. Losing money to China Unicom won't benefit them.

“That’s right, the beneficiaries.” Jiang Xuan nodded and said his guess: “The person I can think of who has the motive and can profit from this is Zhang Yang, the CEO of Caiyan.com.”

"what???"

He Jingxing was completely dumbfounded.

Show off?

What does this have to do with Zhang Yang?
Is there a conflict of interest between Caiyan.com and China Unicom?

It doesn't exist!
The two companies have no business dealings whatsoever, no overlap in business, and certainly no conflict of interest.

Seeing He Jingxing's bewildered expression, Jiang Xuan casually took out his phone, opened the Eastmoney WAP website, and found the live text broadcast of the "Fuchun Road" situation briefing.

"Zhang Yang is Mr. J."

"Mr. J is flamboyant."

Jiang Xuan handed over the phone.

"..."

He Jingxing silently took the phone.

He looked at the screen and slowly browsed through the history of the text-based live broadcast, and the image of the real culprit in his mind gradually became clearer.

Who wants the Chinese version of the iPhone 3GS to sell well? To be precise, it sold well a few days ago?
Mr. J – Showy!
According to He Jingxing, "Mr. J" Zhang Yang went to Hong Kong Island on November 2nd and signed put option contracts worth tens of billions of yuan and short selling orders for China Unicom with about ten institutions.

Why is he so confident?
The answer is now obvious!

"In other words, this guy artificially created a buying frenzy to boost demand, making it easier for him to sign put option contracts with institutions, then immediately returned the goods and refunded the money, waiting for the buying frenzy to subside?"

He Jingxing narrowed his eyes. He hadn't expected Zhang Yang to be so bold as to actually target China Unicom.

Although China Unicom is being pressured by China Mobile and is also slightly outmatched by China Telecom, don't forget that it is a state-owned enterprise with a market value of over 4000 billion yuan, and it's not something that Caiyan.com can easily mess with!

motivation?

It's already in place!

Profit?

Zhang Yang is indeed a beneficiary!
"President He, I have a plan that can help you vent your anger." Jiang Xuan chuckled, his face full of flattery.

He Jingxing: "Speak."

"It's the 'securities sales license.' Internet financial companies are all gearing up for the auction in mid-December. Perhaps we can secretly give them a push and make Zhang Yang's efforts go to waste."

Jiang Xuan offered a suggestion.

"Excellent!" He Jingxing nodded approvingly, then looked at Jiang Xuan and said, "Your idea is good. If he hurts us 50, then we should hurt him 500, ten times the amount."

“If you want a tenfold return, then I have another plan.” Jiang Xuan smiled and looked at He Jingxing expectantly.

"What is it?"

He Jingxing was extremely focused.

The sluggish sales of the Chinese version of the iPhone 3GS had him seething with anger, and he desperately needed a punching bag to vent his frustration on. Zhang Yang was undoubtedly the best choice, after all, Zhang Yang was a beneficiary of the system.

Jiang Xuan: "Help him make enemies."

He Jingxing: "Explain in detail."

"Mr. He, you've seen the live text broadcast. Zhang Yang's experience is still too shallow. He actually mentioned a transaction commission of less than 3%. You should know that leading securities firms like Huaxin Securities and GF Securities offer retail investors transaction commissions of 1% or 8%. The enemy of my enemy is my friend. Traditional securities firms must already be dissatisfied with him."

"I understand."

As soon as Jiang Xuan finished speaking, He Jingxing couldn't wait to chime in: "Now that Zhang Yang has already touched the interests of traditional securities firms, we only need to give him a little push from behind to put Caiyan.com in a difficult position and greatly reduce his chances of winning the 'securities sales license'."

"As expected of President He, you guessed my thoughts right away. Brilliant, truly brilliant." Jiang Xuan flattered him obsequiously.

"This is a good idea, this is indeed a good idea." He Jingxing was overjoyed, and then said, "Alright, I have things to do, you should go back first, thank you for your hard work these past few days."

"President He... um... it's just..." Jiang Xuan didn't leave immediately, his words trailing off.

He Jingxing glanced at Jiang Xuan and instantly knew what he was thinking. He promised, "Don't worry, I'll arrange for you to go there when a position becomes available at the Guangzhou Unicom branch."

"Thank you, Mr. He. I won't bother you any longer. Please continue with your work." Jiang Xuan seemed afraid that He Jingxing would change his mind, so he turned to leave.

"and many more."

He Jingxing called out to Jiang Xuan.

In an instant, Jiang Xuan's expression froze, and he thought to himself, "Have they changed their minds so quickly?"

When he turned around, He Jingxing handed him a cell phone, saying, "I forgot my phone."

"what?"

Jiang Xuan was briefly taken aback, then quickly thanked him, saying, "Thank you for reminding me, Mr. He."

"Let's go back."

He Jingxing waved his hand.

Seeing this, Jiang Xuan did not hesitate and quickly left the office, putting a final decision on the matter of his transfer to Yangcheng.

Sometimes, those at the same level do not have equal authority.

At the headquarters of China Unicom, Jiang Xuan had many superiors above him and countless eyes watching him, just waiting for him to make a mistake.

However, if he were transferred to Guangzhou to serve as the general manager of China Unicom's South China region, he would be the undisputed top leader of the region, and his power would rise several levels.

After watching Jiang Xuan leave, He Jingxing took out his Nokia phone from his pocket, found the number of Du Hao, the then chairman of Huaxin Securities, in his contacts, and dialed it.

"Dududu-"

Not a moment.

The call is connected.

"Hello, Mr. He?"

The other party was clearly puzzled.

"Mr. Du, it's been a long time since we've had a get-together. Shall we have a hot pot with mutton tonight?"

He Jingxing extended an invitation.

Du Hao on the other end of the phone thought for a moment and didn't refuse: "Okay, send me your location later, see you tonight."

Since they belong to the same circle, they should still be given the respect they deserve.

Many people think it's difficult to get an appointment with a leader because of the significant difference in rank. However, if someone at the same level makes the connection, it's usually much easier to arrange a meeting.

"Haha, okay, see you there." He Jingxing laughed and hung up the phone.

The moment he hung up the phone, his smile vanished, he closed his eyes, and muttered to himself, "Zhang Yang, even if you take this to Old Master Bao, I have a reason to defend myself. After all, you started this trouble first, and I was forced to retaliate."

……

And at the same time.

Shanghai, the capital of China.

Shangri-La Hotel.

After the "Fuchun Road" briefing ended, it was lunchtime, and at the invitation of Buffett and Charlie Munger, Zhang Yang also moved with them to a VIP room.

Inside the private room, besides Zhang Yang, Buffett, Charlie Munger, and Ma Yun, were three professors: Wang Xingbang, Qiang Yuzhe, and Wei Junchi, as well as the Liu mother and daughter.

Ma Yun and Wang Xingbang, needless to say, both had connections with Zhang Yang. Qiang Yuzhe and Wei Junchi, two university professors, were friends of Wang Xingbang, and Zhang Yang felt awkward about turning them away.

As for the Liu mother and daughter, to be honest, Zhang Yang never expected them to be here, especially his "ex-girlfriend" Liu Yifei, whom he met eight or nine years earlier in this life.

In his previous life, Zhang Yang met Liu Yifei while she was in the United States filming "Mulan". At that time, Zhang Yang was already a rising star on Wall Street and one of the investors in "Mulan". The two established a relationship after only a few days of contact.

However, the two did not linger for long, and announced their separation after six months.

Why did they split up so quickly?

Very simple.

In his past life, Zhang Yang was as flamboyant as his name suggested.

He simply couldn't bring himself to give up the whole forest for the sake of one tree.

Now, Liu Xiaoli takes the initiative to strike up a conversation, and even brings Zhang Yang's "ex-girlfriend" Liu Yifei along. Naturally, Zhang Yang will not refuse, after all, it's just an ordinary dinner party.

It's worth mentioning that, due to the surge in registered users on Caiyan.com, Xu Zhirou did not linger at the Shangri-La Hotel, but instead drove straight back to the company.

After taking their seats in the private room, Zhang Yang looked at Buffett and asked in fluent American English, "When did you come to China, Mr. Buffett? To be honest, I never expected you to appear at my 'Fuchun Road' briefing. This is too dreamlike."

"I arrived early this morning and happened to see that you had a public meeting, so I thought I'd drop by," Buffett said with a smile.

"I see."

Zhang Yang suddenly realized.

"Hey kid, you're not kidding, are you? A 625 million-fold return, how did you do that?" Charlie Munger struck up a conversation.

"Doubling your money in the short term is normal; you can achieve that through multiple rounds of compound interest."

Zhang Yang responded calmly.

"That can't possibly be 625 million times, can it? Do you have some stock trading secrets?" Charlie Munger pressed again.

Buffett didn't speak, but his gaze was fixed on Zhang Yang, as if trying to see through the young man.

He made a fortune in the middle of the year by throwing around $320 million, and now at the end of the year he's made another big move, revealing that he made 50 billion yuan in stock trading, all from an initial investment of 800 yuan.

Genius?
Genius is an understatement.

Perhaps it could be called a monster!

"Um……"

Zhang Yang thought for a moment and said, "There is indeed a trick to it, because the daily price limit of A-shares, which is 10%, plus the T+1 trading restriction, makes it easy to stir up the emotions of retail investors."

"how do I say this?"

"How will it be transferred?"

Charlie Munger and Warren Buffett asked the same question at the same time.

“US stocks do not have price limits and are traded on a T+0 basis, so investors can realize profits immediately on any positive or negative news. But A-shares are different. T+1 restricts immediate buying and selling, and the 10% daily price limit prevents retail investors from pricing the news at once. This gives us speculative funds the opportunity to manipulate retail investors and generate premium income.”

"So that's it."

Charlie Munger suddenly realized.

Buffett listened attentively and remarked, "Indeed, there is something to learn in every market; rash investments can lead to disastrous losses."

In the US stock market, if there is positive news, it can be fully realized on the same trading day, no, within "minutes," without having to wait until tomorrow or slowly count consecutive limit-up days.

When emotions are released all at once, there is naturally no premium or manipulation premium.

"I have a question, Mr. Buffett, Mr. Charlie Munger, are you here in China for tourism or something else?" Zhang Yang wanted to get some inside information.

“We were invited by BYD to visit its production plant,” Charlie Munger answered first.

Buffett smiled slightly and asked, "What do you think of BYD?"

“It has great potential.”

Zhang Yang was not lying; BYD is indeed a company with great potential, especially in the field of new energy vehicles.

Despite the fact that gasoline-powered cars still dominated the market in 2009, Tesla had already secured a $4.65 million low-interest loan from the U.S. Department of Energy and completed $8250 million in financing in the faraway United States.

In addition, Daimler's investment and joint development of electric Smart models provide Tesla with technological backing.

It's not just the United States that's developing new energy vehicles; China also mentioned new energy vehicles in its "Detailed Rules for the Revitalization of Ten Major Industries and the Dual-Wheel Rejuvenation Plan of Consumption and Investment."

As someone who has been reborn, Zhang Yang is well aware that new energy vehicles will gradually be recognized by consumers worldwide after 2016, and new energy vehicles will also be given the label of "intelligent".

There is no such thing as technology without a reason; it only takes more than a decade of groundwork.

The same principle applies to investing. If you don't know how to play the short-term game, then follow a five-year plan for long-term investment. As long as you buy leading stocks in the technology sector, you don't need to worry about losses, provided you can withstand the volatility.

Many retail investors lose money even though they know exactly which sector they want to invest in and how long they want to hold it. They can't handle even the slightest fluctuation, start to question their stock selection and the progress of the country's five-year plan, and are ultimately ruthlessly forced out of the market.

How much potential does it have?

Charlie Munger pressed for answers.

They had lived in the United States for a long time and knew nothing about BYD. It was only because someone recommended it as the future face of Chinese automobiles that it attracted Buffett and Charlie Munger.

"If you can hold it for 10 years, I estimate you can get about 5 times the return," Zhang Yang roughly gave the timeframe and approximate returns.

Liu Xiaoli, who had been unable to find a chance to interject, quickly wrote down "BYD" after hearing that it could increase fivefold in 10 years. She exclaimed in her heart, "Fivefold in 10 years, a 500% return rate. If Zhang Yang is right, he is really amazing."

Sitting next to her, Liu Yifei kept glancing at Zhang Yang.

22-year-old Liu Yifei not only has fair and radiant skin, but also the most standard oval face, exuding a youthful charm. Most importantly, her eyes are full of spirit, making people unable to help but take a second look.

"He can chat so fluently with Buffett and Charlie Munger, and speaks such good English. Is he really a year younger than me?"

To her, Zhang Yang didn't seem like a 21-year-old boy at all; he seemed more like a 30-year-old man who had been through the ups and downs of life.

There's a saying on the internet now to describe a man who looks young but has a wealth of experience: "a dad with a youthful vibe."

However, in Liu Yifei's view, Zhang Yang is "a boy with a fatherly attitude".

“With Mr. Zhang Yang’s words, we feel more confident.” Charlie Munger laughed and raised his wine glass, saying, “I’d like to toast you, cheers.”

"cheers."

Zhang Yang also picked up his wine glass.

Seeing this, the others also picked up their glasses and drank with Zhang Yang, Buffett, and Charlie Munger.

The dinner didn't last long; half an hour later, Buffett and Charlie Munger had to leave because they had other commitments.

After seeing off the two "stock market gurus," Zhang Yang returned to the private room.

Upon seeing Zhang Yang return, Wang Xingbang couldn't help but burst into laughter, saying, "Zhang Yang, I knew you were destined for greatness! You truly are a dragon that rises to prominence when the winds blow. You're amazing!"

"You flatter me, Professor Wang."

Zhang Yang maintains a humble attitude.

Upon seeing this, the two professors standing nearby, Qiang Yuzhe and Wei Junchi, also spoke up.

“Zhang Yang, there’s no need to be modest. We’ve heard so much about your deeds.”

"A student who can be chosen by Mr. Bao is indeed extraordinary. I admire him greatly."

Zhang Yang picked up his wine glass and smiled, "Professors, you flatter me. I'd like to toast you both and hope we can work together in the future."

"Haha, no problem."

"With a 625 million-fold return, we should be asking for your help, not turning against us!"

"That makes sense."

Everyone downed another glass of wine.

As Wang Xingbang put down his wine glass, he looked at Zhang Yang and said, "New Year's Day is coming soon, Zhang Yang, why don't you go back to the school and say a few words?"

"this…"

Zhang Yang seemed somewhat hesitant because he had promised Xu Zhirou that they would go on a group trip to Japan at the end of the year, and he wanted to see if he could plant a flag there to prepare for a global expansion.

"Is there something else?"

Wang Xingbang asked.

"I do have other things to do. The company's year-end project is planning a team-building trip to Japan, and I can't get away." Zhang Yang had just finished speaking when he added, "Next year's graduation ceremony, if there's an opportunity."

“Sure, it can also help attract more students to our school,” Wang Xingbang said with a smile.

"With the emergence of a genius like Zhang Yang, financial talents coming to the Yangtze River Delta region will probably all choose Shanghai University of Finance and Economics as their first choice," Wei Junchi said with a faint smile.

"Yes, I'm envious."

Qiang Yuzhe echoed in agreement.

One of them is a professor at Fudan University, and the other is a professor at Tongji University. Now they are at a loss and can only let nature take its course.

Another half hour passed, and Wang Xingbang, Qiang Yuzhe, and Wei Junchi left one after another, leaving only Zhang Yang and the Liu mother and daughter in the private room.

"Mr. Zhang, let me toast you. It's a pleasure to meet you. I hope we can become friends." Liu Xiaoli raised her glass and drank it all in one gulp.

After returning the toast, Zhang Yang said, "You're too kind, Ms. Liu. Your daughter's 'The Return of the Condor Heroes' was well-made. Perhaps we can collaborate if the opportunity arises."

"really?"

Liu Xiaoli was overjoyed and urged, "Qianqian, quickly thank President Zhang."

"Thank you, Mr. Zhang."

Liu Yifei thanked her softly.

"You're welcome." Zhang Yang glanced at his watch, stood up, and said, "It's getting late. Let's keep in touch."

Currently, Caiyan.com is linked to Zhang Yang's personal IP, namely "Joker God," but this is only known within the stock trading community.

People from other circles simply don't buy into the "joker god" persona.

To further expand the user base, you can find a celebrity to endorse your product or brand, and Liu Yifei is a good choice.

Anyone who has worked in the brand operations department of a large company knows that the first requirement for finding a spokesperson is the ability to expand their reach and increase exposure.

This is why some celebrities with poor public image are still sought after by companies to be their spokespeople.

In her previous life, Liu Yifei's film and television resources plummeted after 2008, reportedly because she offended a film and television company. But Zhang Yang didn't see this as a big problem. He already had the beginnings of capital, so he could just fund a canary for publicity purposes.

Seeing that Zhang Yang was about to leave, Liu Yifei quickly took out her phone and said, "Let's add each other on QQ first before you go."

"Okay, add me, 158...771." Zhang Yang gave his QQ number, then waved and said, "We'll talk later."

Liu Xiaoli: "Take care, Mr. Zhang."

Liu Yifei: "Remember to approve this."

"OK."

Zhang Yang quickly left.

After Zhang Yang's figure disappeared, Liu Xiaoli looked at Liu Yifei and asked, "How was it?"

"can."

Liu Yifei answered casually, her eyes fixed on the phone in her hand.

"Can what?"

Liu Xiaoli asked with a smile.

Coming to her senses, Liu Yifei blushed slightly and hurriedly explained, "Yes... um... we can add each other as friends now, nothing else."

(End of this chapter)