Those Years When I Was Forced to Top the Forbes List

Chapter 166 Meeting the Big Shot
SZ City Oriental Modern Industrial Investment Management Company is located on Lianhua Street in Futian District, not far from Huaqiangbei.

The low-rise building facing the street is not impressive.

Inside lives a figure who once shook the stock market. To this day, more than 30 listed companies in the A-share market were personally or indirectly managed by him. The team he led managed the first A-share "Feile Acoustics", the first B-share "Electric Vacuum", the first stock index, the first securities brokerage, and the first merger and acquisition in the securities industry.

He, along with Wei Wenyuan, the first general manager of the Shanghai Stock Exchange, and Guan Jinsheng of Wanguo Securities, were known as the "Three Great Figures of Shanghai Securities".

But Chen Xuebing came for this person's other identity.

"Mr. Kan, I've heard so much about you!"

"sit."

The office on the third floor of the small building, located on the outer side, was quite spacious and its decor appeared luxurious compared to the surrounding street.

The middle-aged man sitting behind the huge desk looked like an old farmer. He casually raised his hand, exuding an aura that seemed incongruous with his appearance.

He looked Chen Xuebing up and down, a slight smile appearing on his face, but deep wrinkles appeared on his face.

"At such a young age, he is doing such a big thing. He is truly a force to be reckoned with."

Chen Xuebing said modestly, "Not at all, I came here today specifically to learn from the seniors."

He couldn't help but be humble in front of the person in front of him.

Kan Zhidong was the first president and founder of Shenyin Securities and Shenyin Wanguo Securities, and also the first president of Shenzhen Capital Group.

The last president of Southern Securities before its bankruptcy.

He is someone who lived through the entire era of "having children before getting a marriage certificate" in China's securities industry.

Chen Xuebing didn't actually know much about this person, but he knew about Shenzhen Capital Group.

Shenzhen Capital Group is the first truly government-guided fund. Although it does not have the name of a fund, it operates as a fund in the name of a company.

He came today specifically about the Chongqing-guided industrial fund.

When District Chief Hong was conducting research, he searched everywhere for funds but couldn't find a way in. However, Chen Xuebing knew very well where the real government fund leaders were.

Shenzhen Capital Group (SCGC) was established in 1999. At the time of its establishment, Mayor Li Zibin personally took charge and appointed Kan Zhidong as president of Shenzhen. Today, SCGC is one of the strongest local venture capital firms, managing nearly 10 billion yuan in capital and holding more than 60 companies in the queue for listing.

If anyone had the most thorough understanding of this "guiding fund," it would undoubtedly be Mayor Li from back then. However, he is now the deputy director of the FG Committee, and Chen Xuebing couldn't get a word in edgewise. He could only contact the former president of Shenzhen Capital Group during his downfall by spending some money through a fund agency in Beijing.

After the failure of his last attempt to revive Southern Securities, Kan Zhidong lost his former glory. Following the bankruptcy of Southern Securities, he faced the pressure of being sued and left the state-owned securities industry in disgrace. This year, he started his own business.

"Did you mention on the phone before that you were going to open another Shenzhen Capital Group in Chongqing?" Kan Zhidong got straight to the point.

Before Chen Xuebing arrived, he spoke with him on the phone. In order to pique the other party's interest, Chen Xuebing had to exaggerate the target a bit.

“Yes.” Chen Xuebing took out a file bag, pulled out a few pages of documents, placed them on the table, and pushed them in front of Kan Zhidong.

"This is a report that I co-authored with the district government. It's currently being discussed at the city level. Please take a look."

After exchanging a few polite words, Chen Xuebing's expression returned to its usual composed and dignified manner.

He's here today seeking cooperation.

The Chongqing government-guided fund is no small matter. Kan Zhidong has deep roots in the financial securities industry. With his support, I, an unknown newcomer, will have a better chance of success.

Coincidentally, given Kan Zhidong's current situation, he definitely needs to create new achievements to turn things around.

According to the Beijing-based company, Kan Zhidong and Wei Wenyuan are currently operating a high-tech design company called "Huarui Wind Power" through their existing investment company.

Chen Xuebing had checked and found that the company's website was quite attractive and its goals were ambitious.

"Bearing the historical mission of localizing major equipment, we take it as our responsibility to contribute clean energy to the world and all mankind."

But its performance is still nonexistent, and it's probably a long way from going public.

Having weathered many storms, how could a lion be content to remain dormant for long?

Kan Zhidong glanced at the document a few times, found a few key data points, and then put the document back on the table.

“I know about this, Document No. 39, right? Shenzhen Capital Group is also using this to transform itself. The diversification of funding factors has come to the rescue. I am very surprised that Chongqing has such vision in industrial guidance.”

He said with a playful smile, "You've shown me the main entity responsible for the operation and the project objectives. Aren't you afraid I'll steal your thunder?"

Chen Xuebing shook his head and smiled, "I've recently come to realize a principle: smart people like to be straightforward. Since time is precious, there's no need for you to waste your time asking around. It's my time that's being wasted."

"That's great, I like it."

Kan Zhidong looked up with admiration, thought for a moment, and said, "Investing 3 billion yuan in one company to drive the industry is a wrong approach. You haven't fully grasped the policies. When this plan reaches the higher-ups, they will only think that the lower-ups are using this as an excuse to ask for money."

Chen Xuebing frowned and fell into thought.

Kan Zhidong didn't let him guess: "I've already told you the answer. Market entities need to be diversified, and the factors of capital supply also need to be diversified. Direct financing, social financing, traditional financing, all kinds of methods need to come in. We can't just crack down on illegal fundraising without providing a way out for the vast number of enterprises. This is the background of the reform. So your plan can't just focus on industrial guidance, it also needs to guide entrepreneurship, and entrepreneurship guidance should take the lead. If you don't understand this point, your homework will be wrong."

"But the higher-ups told Chongqing to find a path that suits its own conditions, otherwise I wouldn't have dared to propose this plan."

"Freedom is always relative freedom, freedom within a framework. If you don't reflect the main intentions of the authorities, you can't pass the test. If an industry guidance fund must do 3 billion, then a venture capital fund must do 4 billion."

"hiss"

The number became seven billion, and this time Chen Xuebing gasped in shock.

"It's too difficult. Even with just 3 billion, the district doesn't dare to report it yet. Otherwise, I wouldn't have come all this way to seek cooperation with you."

"Seven billion? Don't even mention you, Shanghai can't get that much." Kan Zhidong laughed, his hair down. "A 'yield satellite per mu,' do you understand? Your tone needs to be correct first. It's not that we don't want to do venture capital, but that we need to lay the foundation for success with rapidly maturing companies, earn our first pot of gold, and use this three billion industrial fund to earn four billion in venture capital fund. We'll use industry to drive entrepreneurship, diversify the supply of capital, and at the same time meet the needs of local development. What you want, what I want, what he wants—isn't that all there?"

"Oh!" Chen Xuebing's eyes lit up, and his heart pounded.

It's always easy to gain insights from talking to smart people. The other person didn't even ask him why he wanted the 3 billion investment, but clearly explained his methodology for doing things.

“The government does things differently from the public. A three-year target is too short. Five or ten years is just a fleeting glance at the government. Let’s extend the time frame and set bigger goals. I see that your first target is the municipal government. But let me ask you, is the mayor the top leader? He may not be the top leader for several years. You need to consider whether such a large investment can still generate achievements while the person in charge is in power in order to obtain more comprehensive support.”

Kan Zhidong offered another suggestion.

Chen Xuebing inwardly applauded, but not wanting to be completely lectured, he retorted, "The situation in Chongqing is different, isn't it?"

After saying this, seeing the other person's smile, I realized that what they said was a methodology, and I nodded in agreement.

"clear."

"Let's talk about the terms." Kan Zhidong straightened up, his hands gripping the armrests. "How much will you pay to use my name and Lao Wei's name?"

Chen Xuebing gave a shy smile, like a junior: "You've already given me all the pointers I needed to know, so I don't really need to ask for anything more. Just name your price."

The implication was clear: you've said everything you needed to say, and your value has diminished considerably. Kan Zhidong, however, remained unmoved by the change in his smile.

“You came to me, so you should know the significance of this signature. It’s not that groundbreaking things can’t be done, but only a select few can do them. In many people’s eyes, I’m on that permitted list. I want half of this 3 billion management fee.”

30 billion, 1.5% management fee, 4500 million, half of that is 2250 million.

One year.

The names Kan Zhidong and Wei Wenyuan have quite a few strokes.

But asking for hundreds of thousands for one transaction seems a bit excessive, doesn't it?

"Actually, I didn't get half of your money. In fact, with this 30 billion yuan of government funds in hand, you can also attract a lot of funds from the private sector. I didn't count that part."

Kan Zhidong was very shrewd in his calculations.

However, he didn't mention profit sharing, only the guaranteed management fee portion.

In Chen Xuebing's view, management fees are not the main source of profit and can be waived.

"Mr. Kan, what I need are collaborators, not just someone to sign their name."

"Of course not." Kan Zhidong waved his hand: "Go back and revise the plan according to what I said. Using the central budget involves several important procedures: evaluation by the National Development and Reform Commission, review by the project unit, filing and approval, land and environmental impact assessment. Show me the background check results of the target company and make a good funding plan. Such a large project will not be a one-time investment. Let's work together to get the first step done. You can handle the rest yourself. The city has provided the funds and will definitely support us. These procedures shouldn't be too difficult."

Chen Xuebing raised his eyebrows: "But if I present the background check and detailed plan for the target company so early, what if the government excludes me?"

"Kid," Kan Zhidong said again in a lecturing tone, "It's already incredibly difficult for the government to get things done. Don't judge the government by the standards of a business. A positive attitude is especially important. Otherwise, those who really want to get things done won't be able to help you at all. If you want to get things done in China, you must rely on the organization firmly and trust it."

"In other words, how much money you make, does it matter to the government?"

Two sentences evoked a complex mix of emotions in Chen Xuebing.

There seems to be both exhilaration and helplessness.

Upon closer reflection, it should be a kind of unwavering determination to endure all kinds of grievances and continue moving forward.

He felt a slight chill on his back.

How many such steadfast individuals who have weathered countless storms have been nurtured on this land?
He was tactful yet restrained, and grounded in reality.

that feeling
The older generation of revolutionaries.

Chen Xuebing met those golden eyes and shook his head with a smile.

Yes, that's too high a rating; someone who's old and shrewd should be considered wiser.

However, this conversation should be seen as his first step in growth since his rebirth.

Chen Xuebing's interest in him deepened.

"Mr. Kan, wind power projects are easy to talk about but hard to implement. Let's collaborate sometime and do something you're good at."

"Hmm," Kan Zhidong pouted and shook his head: "I'm not in wind power, I'm in private equity funds. This is what I'm good at. There's a fundamental difference between primary funds and your secondary funds. Their purposes are different. But your fundraising ability is good. 1.5 million. If you want to cooperate, I can consider opening a separate fund to help you."

A veteran in the industry will never be fooled by younger generations.

Chen Xuebing was too lazy to argue with him, and simply smiled and said:
"It seems like there's something you're even better at, isn't there? Southern Securities, is it really completely dead?"

The following day, Lei Jun and Lin Bin were received.

Lin Bin readily agreed, saying that he would return to Beijing, pack his bags, and then come to work.

Chen Xuebing gleaned some unique information from his straightforwardness.

He doesn't even need to hand over his work.

For companies like Microsoft, it's not easy to leave if you have important projects in hand. The process is quite complicated, and there are lengthy non-compete agreements. The company would rather spend more money to support you than let you go out and create a threat.

It seems that with his powerful backer Kai-Fu Lee gone, he has indeed lost some of his favor.

Chen Xuebing also talked to him about Kai-Fu Lee.

It's a real waste of talent that such a technical expert would go on to become an angel investor after returning to China.

However, it's just a casual inquiry. Not everyone is a good candidate. The higher one's position, the more complicated legal troubles they carry. Take Kan Zhidong, for example. Even though he's currently running a startup and is in a slump, Kan Zhidong wouldn't dare to recruit him. He'd only dare to discuss cooperation. If a major disaster were to strike him, Kan Zhidong's small frame simply couldn't bear the burden.

Based on the agreement reached with Lin Bin, before Lei Jun left, Chen Xuebing let him into the R&D department office, which was off-limits to unauthorized personnel, and showed him a few loose exterior drawings.

Lei Jun was somewhat surprised, but he just thought the design was beautiful. He took out four PDA phones from his bag and placed them on the table to compare with the drawings.

Which one are you imitating?

Chen Xuebing smiled and generously handed him the exterior blueprint.

"Take it back and compare it."

Lei Jun was amazed by his generosity.

You can give this away?
Chen Xuebing chuckled: "What's our relationship? We'll see."

Anyway, that blueprint is useless now.

His mindset has changed; he no longer copies the design of the iPhone 4.

On the morning of his third day in Shenzhen, Chen Xuebing took off the suit that made him look a bit older and changed into a casual tracksuit.

Take a deep breath; the fragrance emanating from the corner of the office is refreshing and delightful.

"Chairman, am I really not going with you?" Ren Ying asked.

Chen Xuebing glanced at his watch: "Go back to Chongqing and wait for me. By the way, has Yang Qingyue contacted you during this time?"

Previously, Yang Qingyue and Ren Ying had a good relationship and added each other on QQ. Chen Xuebing would often ask Ren Ying to take a candid photo of himself at work and send it to Yang Qingyue, thus tying up the kite string that was sometimes close and sometimes distant.

Ren Ying pursed her lips and shook her head.

Chen Xuebing sighed, glanced back at the hourglass on the table, slung his backpack over his shoulder, and went out.

Once Chen Xuebing was out of sight, Ren Ying quietly picked up her phone and sent a message.

He went to Shanghai; I just asked you about it.

(End of this chapter)