Those Years When I Was Forced to Top the Forbes List

Chapter 129 What kind of company do you need?
The Red Army is not afraid of difficult expeditions.

The Five Ridges undulate like gentle waves, while the Wumeng Mountains surge like mud balls.

——The Long March (a poem in seven-character quatrains)

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If Chen Xuebing has only one idol, it is his father.

If there are two, the other one must be the instructor.

There are objective reasons for the veneration of teachers, based on their status.

It's not about worshipping his status, but rather that because of his status, he left behind a great deal of legacy.

People rarely have the opportunity to understand a person who is extremely great in the entire history of humankind through their experiences, poetry, thoughts, strategic vision, and even sound, light, and film. It can be said that his existence gives many people the opportunity to become great themselves by learning from him.

Many successful people study his ideas after they turn 40, and Chen Xuebing is only just beginning to understand them.

Of all the poems by the teacher, his favorite was "The Long March".

He had an agency handle the registration of Changzheng Capital Co., Ltd. after returning from Guangzhou, and they have now obtained the license.

The Long March is a meaningful name, and it also marks the beginning of an economic strategy.

……

Chen Xuebing made some arrangements for the meeting, called Shenzhen to arrange for 30 yuan to be transferred for renovations, and then took Hu Li back to school.

Hu Li used her phone's 2.5G network speed to search for information about the "sunshine private equity fund" she had just heard about the whole way.

After waiting for ages to load, there was still no information. It just opened its little mouth and silently cursed.

Chen Xuebing couldn't help but laugh.

"No need to search anymore. The first publicly offered private equity fund in China was established last year, a collaboration between Zhao Danyang and Shenzhen Guotou. It achieved an annual return of 13.98%, outperforming the market by 40 percentage points while the Shanghai Composite Index fell by 26% during the same period. It was rated as one of the 'Top 5 Best Investment Products of 2004.' What else would you like to know?"

Hu Li was even more surprised.

"40 percentage points is enough for the top 5, so what about yours... over 270%?"

"That was an accident. It's not a major bull market right now. How could the returns over a few months be so exaggerated? We went through a fierce battle between bulls and bears before, and the returns were very high."

"Oh... then why is it called a 'sunshine private equity fund'? Aren't private equity funds not allowed to raise funds publicly? How can it be 'sunshine'?"

Hu Li visited Chen Xuebing's company last night and learned that Chen Xuebing was involved in private equity funds. After leaving, she did not return to the hotel but went to an internet cafe to do a lot of research.

"The so-called 'sunshine' means that the funds are held in custody by a third party. This third party can be a trust company or a securities firm, which makes the funds much safer. In this way, in addition to raising funds ourselves, we can also have securities firms and banks help us sell fund products. In addition, investors can learn about the information we regularly release through the third party. We only need to connect with the third party, which saves us the effort of explaining to a large number of investors."

"Oh...you need to find someone to help you with sales? You're short of money? Didn't you say you raised the money?" Hu Li grasped the key point.

"It's just a matter of trying my luck. The investors recommended by banks and securities firms are all small investors who don't have much money. But as you said, private equity can't raise funds publicly, so it can't operate within its own small circle. It needs to let more people make money and gather funds through the profit effect. My first product has already exhausted my network. In the future, I will launch a second and a third product. Where will I raise funds then?"

Hu Li was still puzzled: "Aren't there websites that specialize in ranking funds? And they even list returns!"

Chen Xuebing turned to look at her, a half-smile on his face: "Didn't you see my rate of return? For funds of tens of millions or more, my rate of return is consistently among the top three in the country. So, are you going to invest or not?"

Hu Li chuckled and said, "I don't have any money. If I did, I would definitely invest."

"So," Chen Xuebing said with a leisurely smile, "the fund industry is still in its infancy and lacks credibility. Everyone needs courage to invest in an unfamiliar product for the first time. Only those who have actually made money in it can become steadfast fundraising targets. My first investor only invested a few million with me, but three months later I made him several million more. Then he brought me 60 million and invested all his liquid funds in me. That's called the profit effect. I don't underestimate any investor, even if he himself isn't very rich. The potential of a person's network is unimaginable."

"My God, are you running a Ponzi scheme?"

Hu Li frowned, sensing that Chen Xuebing's words had a hidden meaning. She moved closer to the car door, crossed her arms, and said warily:

"You...you don't really want me to get my dad to invest, do you?"

"Or else?"

Chen Xuebing smiled slightly: "I don't mind if it's a million or two, but if he wants to invest, he has to come in person. I don't accept you investing on his behalf. It means nothing to me to help a kid like you with no connections make money."

Hu Li was completely stunned.

"Hey, isn't that a bit too domineering? Are you so sure you can make money?"

Chen Xuebing shrugged.

"I'm just saying. Whether you look for your dad or not is up to you. If your family weren't in Shanghai, I wouldn't even bother talking to you about this."

Last night, he and Hu Li had a frank conversation, and Hu Li also shared some information about her family.

Her father owns a pharmaceutical company whose main products are self-developed nonsteroidal anti-inflammatory drugs and antihypertensive drugs. Recently, he has also been planning to collaborate with several companies to research a hepatitis B vaccine.

She didn't mention her family's assets, and Chen Xuebing didn't know much about the pharmaceutical industry, but he knew which patents were more expensive.

He had speculated on hepatitis B vaccine concept stocks about 22 years ago in his previous life. Companies with related patents were worth billions, which shows how expensive research and development costs are. Even in this day and age, companies that dare to participate in hepatitis B vaccine research, even if it is a collaborative research, are by no means small companies.

He must have a wide network of connections.

It was only in Shanghai, a financial mecca, that he showed any interest.

"Does your fund offer any guarantees such as principal protection or priority compensation?" Hu Li asked slyly.

Chen Xuebing laughed: "Yes, we don't charge management fees, but we take 30% of the profits. If you want to sign a guaranteed minimum return agreement, we can take 40% of the profits."

Private equity firms charge a 2% management fee and split profits 20/80.

He certainly didn't care about the guaranteed management fees, but he wanted a larger share of the commission.

As for any guarantee of principal, after a large number of financial products collapsed in 2021, regulatory authorities have explicitly prohibited the promise of guaranteeing principal and returns, and any such promise has no legal effect.

These days there aren't any hard and fast rules. Once the redemption period is over, you can redeem your money back with the agreement and your principal guaranteed.

Private equity funds have grown from nothing to something, with fewer than 100 products nationwide and a total fundraising scale of less than 300 billion yuan. Most of them are located in Shenzhen and Shanghai, and most investors probably still have doubts about them. Therefore, he has to increase intermediary costs and adopt the "sunshine private equity" operation mode that was just proposed last year.

A principal protection agreement can also be signed to avoid any anxiety for everyone.

In fact, this is in his best interest; to break even, he can reasonably demand a larger share.

“You don’t even charge management fees…” Hu Li blinked, sensing that Chen Xuebing was really confident.

According to her understanding, these funds make money through management fees.

"Then I'll ask my dad for you."

Chen Xuebing shook his head and smiled, neither agreeing nor disagreeing with these words.

Could you ask for me?

If you don't come now, in two years your dad will probably have to rely on your connections to get me to invest again.

……

Chen Xuebing didn't go back to attend the travel agency business class in the morning, nor did he plan to attend it; he simply wasn't interested.

I listened to a brief overview of the history of tourism development in the afternoon.

It discusses the impact of the Industrial Revolution on tourism. It also incorporates elements of Western development history beginning in the mid-18th century, including urbanization, job diversification, technological advancements, and class relations.

The teacher was very knowledgeable and loved to chat, which Chen Xuebing found quite interesting.

I mentally checked it off; I could listen to this class when I have some free time.

He plans to flip through the books for other first-year courses such as "Introduction to Tourism", "Tourism Economics", "Tourism Psychology", "Tourism English", and "Hotel Management", and then choose some courses that interest him to attend later.

He flipped through the books and checked the elective course schedule on the school website. The courses and electives for this major covered the management and evaluation of hotels, restaurants, bars, travel agencies, tourism projects, and convention and exhibition planning, as well as basic courses such as geography, English, and history. It gave him the feeling that he was learning a little bit of everything but mastering nothing.

It lacks depth, making it difficult for him to think.

Students can only begin studying in a different major in their second year of university.

But since I've just become a class leader, I still have to put on a show.

The next day, he went to the Youth League Committee office of the college, picked up the latest Party and Youth League materials, and prepared to find something to do.

If you "occasionally" don't want to go to class, you have to have a legitimate reason, right?

The "Three Represents" and the "Scientific Outlook on Development," two guiding documents of the Party in recent years, basically cover all the key points of the work of the Youth League.

Specific activities include rural education support, environmental protection and sanitation creation, volunteer activities, poverty alleviation relay, and youth organization exchanges.

I didn't find any inspiration.

These activities are too common and lack originality.

As soon as the afternoon classes ended, Xu An was waiting for him at the door.

"Chen Xuebing, Dean Zhou is looking for you."

"Looking for me? What's up?"

"Um... the institute has a task and they're planning to ask you for help. Does your company... have an office?"

Upon hearing Xu An's words, Chen Xuebing realized that a legitimate reason had been found.

"Of course I do, otherwise it would just be a shell company, and how would I fulfill my campaign promises?"

Xu An smiled upon hearing this and asked the question that had been bothering him: "What type of company?"

Chen Xuebing smiled slightly: "What type of company do you need?"

"what?"

……

With a complicated expression, Xu An made a phone call to ask for instructions and then took Chen Xuebing to the dean's office.

"Dean Zhou."

Xu An knocked on the door and entered the office, with Chen Xuebing following behind.

The room exuded a faint scent of herbs and trees, the floor was spotlessly clean, and the glass-covered wooden table facing the door reflected the light. There were some books on the table, but no computer. There was a wooden sofa, giving it a vintage feel.

The dean behind the table was a woman, in her forties or fifties.

Seeing someone come in, she took off her glasses, wiped them, put them back on, and without getting up, raised her hand towards the sofa.

"Please take a seat."

When Chen Xuebing first met the dean, he felt that the dean had a rather strong presence.

This person's rank should be at the division level or above.

However, Chen Xuebing wasn't under much pressure. Many of the things he needed to do next required contact with the top officials of the counties and districts.

He then greeted Dean Zhou, entered the office, went straight to the sofa, sat down, looked at her, and waited for her to speak.

Dean Zhou was also considering how to speak, and seeing that Chen Xuebing was relatively calm, he said in a formal tone:

"Chen Xuebing, do you know Principal Liang?"

This sentence meant that he already knew why Dean Zhou had come to see him, which meant that Principal Liang had begun to pay attention to him, and that this was a good sign.

His attitude softened somewhat, and he nodded politely, saying:

"Yes, we met once at the Wujiang Grand Bridge construction site. I have a small project there."

"So you run an engineering company, right?" Dean Zhou adjusted his glasses. "How big is it?"

"There are three projects currently in operation, with a total scale of less than 30 million."

Xu An gave Chen Xuebing a deep look and inwardly inhaled.

He just mentioned that he owns three companies, currently mainly engaged in financial services, as well as an engineering company and a technology company.

Non-core business alone accounts for 30 million.

"Oh." Dean Zhou felt this had exceeded his expectations, and his expression turned serious: "Did you open it yourself?"

"It's mine."

"In Chongqing?"

"Ah."

How is the profitability?

Chen Xuebing was a little uncomfortable with this kind of interrogation-style conversation, and smiled and said, "It's alright, Dean. Just tell me what's wrong, and I'll help if I can."

Dean Zhou pondered for a moment and said:

"Here's the thing, this year, under the guidance of the central government, the Ministry of Education launched the 'Focus on College Student Employment' campaign. The number of college graduates has increased dramatically in recent years, and higher authorities are quite concerned about graduate employment. Our school is also facing pressure to upgrade to a key university next year, with various performance indicators under pressure. We'd like to visit and exchange ideas with some companies, ideally to explore internship and job placement opportunities. Does your company have any plans in this regard?"

Originally, Principal Liang's message was simply for her to follow up on the matter of visiting companies, but after learning a few things, she had a new plan and added "cooperation" after "visit".

How difficult is it to ask local businesses for donations? There are already business owners in the institute, so wouldn't it be better to ask for more money at once?

Several students from the previous year, whose families were well-off, donated a lot to the school. However, their families' businesses were located in remote areas, so they could not offer much help other than money.

Chen Xuebing paused for a moment.

The so-called "double selection" is actually campus recruitment. This term is just a way of showing respect to students, implying that they are mutually selecting each other.

He certainly has a need for talent, but not in the humanities.

However, since he came, he was mentally prepared.

"We can give priority to providing job opportunities, but we also have an interview process for outstanding graduates."

(End of this chapter)