Those Years When I Was Forced to Top the Forbes List

Chapter 306 The Second Wallet (Part 2)
The news that Changzheng Capital, which had withdrawn some funds from the stock market, announced the opening of redemptions caused a huge shock in the investor community, like a boulder thrown into a lake.

The phone rang incessantly, and the anxious questioning conveyed a palpable unease even through the receiver.
Has the market peaked? Is it unable to rise any further?

When will the next market rally arrive?

Will there be another chance in the future?

This year felt like a dream for everyone. Some people made huge bets, running to the brokerage every day to check information, watching their fund accounts grow from several million to tens of millions, wanting to withdraw but not daring to, trapped in deep self-doubt:
Is this money really that easy to make?

One year was more valuable than the years of experience he had accumulated after starting his business early on after the reform and opening up.

It felt like robbing a bank, but without hearing any sirens; it gave me the creeps.

When they heard the call from Changzheng Capital, many people finally felt relieved.

Changzheng Capital is known for its high returns and risk aversion capabilities, and their large-scale withdrawal suggests that the stock market may be in trouble.

Opportunities to get rich quick are always fleeting.

Some people were lucky enough to seize the opportunity, some regretted not making the most of it, and some made a lot of money but felt empty inside.

If you make money this easily, once you do it, you'll never want to work hard for money again.

But just as everyone was asking, Changzheng Capital's response reignited the flames:
"The stock market is doing very well! However, we have a large influx of funds, so we can't manage too many funds at the moment. We will notify you promptly if any new funds open up!"

"What??"

"Aren't you going to include us anymore??"

Investors inquired among themselves and learned that Changzheng Capital had recently added a large fund of 42 billion yuan, with even the national social security fund participating.

The sentiment is exciting.

The Changzheng Capital was in an uproar, with some people even driving thousands of kilometers from other places to come.

Where is General Manager Chen?

"How could they do this! The contract hasn't even expired yet, how can they force someone to quit?!"

"That's right! You guys can handle billions, what's a little bit more than us?"

"General Manager Chen! I'm looking for your General Manager Chen! I brought him some local specialties!"

Business owners from all walks of life in Chongqing came together to find General Manager Chen.

This also includes many people who missed out on investment funds and are extremely envious.

Changzheng Capital helped dozens of business owners become extremely wealthy, and even sparked a stock market craze in Chongqing.

Some people are shouting: "They're using your money to speculate in stocks, and they still want to take 40% of your profits. The stock market is what it is, don't you know how to speculate yourself?"

idiot?
However, some people quickly learned a lesson during the wildly volatile electric fan market from May to August. Following the rotation of themes and the hype of experts, they bought at the top and sold at the bottom, suffering heavy losses. The strongest MVP among the opposing side even lost 80% of his principal. Some people insisted on not selling and later made a small profit, but it was far from catching up with the returns of the long march.

In contrast, Changzheng Capital accurately avoided every major market downturn, and once it made a move, the price would quickly surge, demonstrating remarkable agility.

Many of those who came to see Mr. Chen with tears in their eyes were people who had lost money in the stock market and wanted to recoup their losses.

Please, Mr. Chen, take action and teach the evil stock market a lesson!

At this moment, President Chen was sitting in his office, arguing back and forth.

"I said it would go up. I don't own Kweichow Moutai, so I can't decide when it goes up. If you can't hold on, then get out. I won't lend you the money, okay?"

Chen Xuebing stared at the flat daily candlestick chart on his computer screen, cursing inwardly.

Holy crap, this is weird.

With such an impressive track record, why is it that while everyone else's stock price is rising, it's not?

"President Chen, I'm not complaining, but the money you borrowed has made so much profit, doubling or tripling it. I'm only making a little from Hudong Heavy Machinery, and I don't dare to sell my Moutai shares since they're not doing very well. I also don't know how to explain this to Leader Huang!"

Chen Xuebing raised his hand and rubbed his temples, lost in thought.

In a two-year bull market, the index rose more than sixfold, from 1000 points to over 6000 points, and many junk stocks were able to increase tenfold.

Logically speaking, Hudong Heavy Machinery (China Shipbuilding) is a well-known leader among large-cap stocks in this bull market, and should have seen a more than 20-fold increase. So how did it rise from 13 yuan to around 20 yuan?
These two stocks haven't started to move yet.

Chen Xuebing made up his mind.

It is actually an opportunity.

He now has a lot of capital, but he lacks targets with such a large capacity.

"Here's what we'll do. I'll send someone to help you with the operation. I'll return the 220 million to you, and you can lend me another 400 million for six months. I guarantee your stock market funds will double within six months."

"Are you serious?"

He Zhiya had been watching the stock market every day for half a year. Although he made more than 100 million yuan, the daily ups and downs of the stock market were putting a strain on his nearly 60-year-old heart. He had been trying to hand over the stock market operations to Chen Xuebing, but Chen Xuebing just wouldn't take the challenge.

Chen Xuebing needed money and had no choice but to take on this job.

“Really, really. But I’m not using this 400 million for stock speculation. You can’t send anyone to monitor the funds anymore. I’ll send you a list of where the funds went.”

The two hundred million yuan he borrowed was tied to Yu Fu's Southwest Securities account; otherwise, he would have withdrawn it long ago.

How much interest can you offer on this loan?

"Same as before, 10%, okay? Just for six months, I'll pay you back next April. By then, I'll be withdrawing my BOE shares, you know that."

A 10% return over six months would be considered usury in later generations, but the inflation rate in those days was incomparable to that of later generations, and a 20% annual cost of capital was not high.

The key question is, who can come up with hundreds of millions of dollars all at once these days?
Besides banks, there are only state-owned assets.

It has to be state-owned assets that know each other inside and out.

“Okay! Send the person over, and I’ll report to Leader Huang right away!” He Zhiya said firmly.

He also wanted to see what methods Chen Xuebing had.

"Report now, and I'll send someone over this afternoon."

Upon hearing the knock, Chen Xuebing promptly hung up the phone and called out, "Come in."

The door was quietly pushed open, and Kan Zhidong's face, bearing his signature shrewd smile, peeked in.

"The situation downstairs is getting out of control; everyone's demanding to see you. Even President Hong has come in person. He's the benefactor who got you started, the investor who gave you your first pot of gold. Aren't you going to show up and appease him?"

Chen Xuebing's gaze swept over Kan Zhidong like a blade, with a hint of reproach: "When I told you to notify them, you should have followed the rules and said that we were adjusting our funding strategy and opening redemptions periodically. But you had to add something extra, saying that we had a large amount of money coming in. Now look what you've done, you're the one who got into this lawsuit, you go and deal with it."

"Tsk tsk tsk." Kan Zhidong strolled in dismissively, sat down opposite him, crossed his legs, and tapped his knees lightly with his fingers.

"This is not just adding fuel to the fire, it's adding fuel to the fire! They are willing to give 40% to Changzheng, but on the 3G industry fund side, half of the private funds have to pay 13.5% annual interest, and the other half of the state-owned funds have to take 70% of the profits, and only half of the funds (20 billion) can enter the stock market."

"Even if you set a five-fold record in the next year and earn 80 billion, how much will it actually reach Changzheng?"
"I did the math. It's over 34 billion, compared to 40 billion in fundraising. The profit margin is only 85%. And that doesn't even include funding channel fees. What about the money from the investors? You can get 160%!"

"Moreover, you control the investors' funds, without the restrictions of social security regulations. You can invest in ST stocks and small-cap stocks, earning double the profit with the same amount of money. People are also eagerly waiting for your help, so why wouldn't you take it?"

"Boss Kan, is this how you calculate things?" Chen Xuebing couldn't help but roll his eyes. "You really think the other half of the funds doesn't make money? BOE is just for show? What do you think I sent people there for? To help them boost their performance! If their performance increases several times over, they might even have a chance to grow against the cycle! Besides, let me tell you, if that deal with ARM goes through, the return on investment will blow your mind! And it's a long-term return!"

He waved his hand forcefully, his tone suddenly becoming serious: "No, this isn't about money, it's about the future. You need to be a good leader of the Long March. You need to understand more about what we're doing."

Kan Zhidong listened in silence for a moment, but then said meaningfully, "I know you want to do something big, but the health of your funds must come first. You're too good at making money, and you're too good at spending it. Mr. Cai and I are both very worried about this. We've discussed it. These social funds are different from state-owned funds and bank funds. There's no mandatory liability for the profits, and the level of supervision is low. Having more on hand can be your escape route in a critical moment. Do you understand?"

A chill ran down Chen Xuebing's spine, and he instantly understood what Lao Kan meant.

The profits generated by these social funds can indeed be converted into money in his hands at any time.

He only needs to pick a few stocks to engage in insider trading, buying them privately with his left hand and using funds to drive up the price with his right, then he can make a profit and run away.

He was merely promising a minimum return; as long as there were no losses in the end and no insider trading was discovered, he would bear no responsibility.

If he wanted to, he could withdraw the order to open redemptions now and quickly pocket the nearly one billion in profits from those investors. He wouldn't even need to be too obvious; he could just steal half and let them keep making a profit, which most investors would ultimately accept.

Many funds have low apparent returns, not because they haven't made money, but because too many fund managers operate in this way.

Chen Xuebing sneered, genuinely wanting to curse him. However, Cai Zhijian and Kan Zhidong, prioritizing failure over victory, were willing to push the boundaries of the law to devise such a solution, which could be considered fulfilling their responsibilities.

"Old Kan."

Chen Xuebing stood up, put his hands behind his back, walked to the window, and said leisurely:
"You have your concerns, and that's understandable. But we need to reach a consensus now. We're going to do something big in the future, and reputation is our second wallet. We absolutely cannot afford to lose it. There have been people in history who started out by cheating and swindling, but no one who reached a high position has ever achieved great things by cheating and swindling. Chinese history is profound and extensive. People who reach high positions like to learn from history and benefit greatly from it. It's not that we've come up with a lot of new concepts, but that our ancestors made a lot of mistakes. When you flip through history books, you can find many decision-making scenarios. While it's not possible to copy successful historical experiences, it can help us avoid many mistakes."

Upon hearing this, Kan Zhidong silently took out his cigarette case and lit a cigarette.

After a while, it exhaled a wisp of blue smoke.

How big are you planning to go?

"Changzheng Capital is already worth tens of billions, why don't you set a strategy for the next order of magnitude?" Chen Xuebing chuckled, pointing to the financial depths that are unimaginable to ordinary people.

"And don't think this is a grand ambition. It will only last two or three years at most. Money is becoming increasingly worthless. Now, a few billion can get you into the Forbes list, but in a few years, a few billion won't even be considered money."

Kan Zhidong was deeply moved when he heard this number.

He believed what Chen Xuebing said.

The largest company he ever managed, Shenzhen Capital Group, is currently worth tens of billions of yuan. He considers himself to have served as a "department-level" official. If he could have reached another order of magnitude higher, he would have enjoyed the glory of a provincial-level official and would have no regrets.

But he maintained his composure and waved his hand, saying:
"That's too much hype. What 10 billion? After withdrawing that money, the three funds will only have a little over 700 million left. Add the 19 billion shares held by the TMT fund, plus another 42 billion, and it's less than 7 billion at most. If you set such a big target, you'll not only deceive those people downstairs, but you'll probably even deceive their relatives... You'll have to call them in to invest, take everything from them, and not give anything back... Only then can you hope to grow that big."

Chen Xuebing's face darkened.

Cao Cao had 200,000 men and claimed to have 800,000 troops. I have 7 billion and claim to have 10 billion. Is that what you call a lot?

"Go ahead and raise funds! But you have to distribute the money first before you can raise funds again! The No. 3 Fund is perpetual, so let's raise funds from there! Let's get all of their great-uncles out of the water!"

Shanghai is making intensive preparations for a press conference, hosted by Singularity and cooperating with Exhibitions.

On the 26th, Chen Xuebing also flew to Shanghai to expand his media and guest lineup by leveraging various connections.

There is no shortage of ordinary viewers.

Spreadtrum is currently conducting intensive training, and the presence of over a thousand trainees is enough to make the event look impressive.

In addition, 300 college students from various universities in Shanghai, 100 electronic market merchants, and 50 enthusiasts from Shanghai and surrounding areas with verified IDs were invited from pinned posts on several major online technology forums.

To avoid chaos at the press conference, it will not be open to the public.

The forum's announcement sparked even greater discussion.

The CCTV advertisement undoubtedly left a deep impression on many people. Based on basic viewership indicators, the advertisement not only had a high willingness to stay on the airwaves in the days leading up to its broadcast, but also had a large number of viewers who specifically tuned in to CCTV-1 to watch it, clearly indicating a certain level of offline dissemination.

However, after the 15th, the willingness to stay decreased significantly.

These days, ordinary people don't really have the concept of a mobile phone launch event; they're all curious about it. But those who truly pay attention to a phone that hasn't been released yet are either students or tech enthusiasts.

Of course, there are also various distributors and investment institutions.

With advertising on CCTV, distributors flocked to the door, and even some small distributors with no market at all wanted to take a gamble.

Singularity has not yet chosen to negotiate with small and medium-sized distributors, but is focusing on the two giants, Suning and Gome. However, negotiations with these two companies have been extremely difficult. Neither side agrees to multi-channel sales and insists on exclusive sales rights and pricing power before they will allow products to be sold on the shelves.

With Gree acting as a middleman, Suning softened its stance and agreed to online sales, but the price could not be lower than the offline price.

That's ridiculous. If you don't have a price advantage online, you're not competitive at all.

Gome, on the other hand, is indifferent to everything. They are not obsessed with top brands. Their main strategy is price war, focusing on a wide variety of products at low prices. If they don't have the right to dump products at low prices, they don't care whether they sell or not.

Chen Xuebing simply ordered a temporary halt to the negotiations, to be discussed after the press conference.

As for investment institutions, they basically all called Chen Xuebing and Kan Zhidong directly.

Mr. Chen is now the industry leader, and Kan Zhidong is a veteran who has served time in jail for the gang. Their response that there are no plans for the time being left is disappointing, leaving no room for deception.

On the other hand, the redemption and refinancing of Changzheng Capital has also come to an end.

The three funds totaled 2 billion yuan. Most of them exited the market. Although the overall market rose considerably in October, the large-scale exit still led to a decline in the stock prices of the holdings, realizing 12 billion yuan in profits. The remaining 20 million yuan in securities funds (7 million yuan of No. 1, 1.4 million yuan of No. 2, and 3.6 million yuan of No. 3) were also discounted by 10%, becoming 6.3 million yuan.

Despite the A-share market rising by more than 8%, the fund with a value of just over 2 billion yuan still lost nearly 200 million yuan before finally securing its profits.

Changzheng Capital exited with cash of 5.4 million yuan from its 5.83 million yuan worth of shares, which was lower than expected.

This is partly due to the fact that some institutions in the same trading group noticed Changzheng's exit and rushed to sell off their shares.

However, they will soon regret it, because the National Integrated Circuit Industry Investment Fund will be launched soon, and Changzheng will immediately start buying in large quantities again.

Moreover, Kan Zhidong even managed to raise funds from the investors' great-uncle.

The No. 3 Perpetual Fund has grown to 200 investors (full capacity) and has raised 20 billion again!
This was still the result of Chen Xuebing's order to control the situation and raise the investment threshold.

The news shocked the industry once again.

For the first time, the theoretical limit of 200 investors for contractual private equity funds (sunshine private equity funds) has been reached!

Some even consider this a spectacle in the entire private equity industry.

Keep in mind that private equity has only been around for a few years, and fundraising cannot be advertised. Moreover, the investment threshold is one million. Where are fund managers supposed to know so many millionaires?
Moreover, with 200 people investing 20 billion, they are no longer millionaires; most of them are multi-millionaires!

One bomb blew up all the media in Chongqing, turning their financial reporting into social reporting.

Is Chongqing rich or poor? The answer is finally revealed!

"Chongqing's wealthy elites collectively 'chase after' private equity funds: Capital anxiety behind the 20 billion yuan rush to buy funds"

Is Hurun's data accurate? The Hurun Rich List includes 2130 individuals and 4000 unreported hidden billionaires.

"150 Million Families Control 70% of the Wealth: A 2006 Report on Wealth Concentration in China"

As this round of reports gradually spread, online discussions and analyses of Chen Xuebing, a representative of the new generation of wealthy individuals, emerged: the logical dialectic between personal assets and the ability to mobilize assets, and how to create a top-tier wealthy individual more quickly.
Netizens commented: "Just tell me how much money Chen Xuebing has!"

On the evening of the 28th, at the Shanghai International Convention Center.

"Leader Huang, I really have no money left! This money was barely in my hands before it was gone!"

Chen Xuebing, who had rehearsed several times, sat in the audience, scratching his head while holding the phone, discussing accounts with the person opposite him:
“We need to invest 200 million yuan of our own capital to raise funds for the National Integrated Circuit Industry Investment Fund. Otherwise, why would I need to borrow money from Chongqing Yufu?”

"In addition, you know about our collaborative research and development with Huawei, right? The initial funding was 4 million yuan."

"I also invested in several companies this month, with an immediate payout of $14.5 million, and a battery factory worth $20 million, totaling $136 million."

"My mobile phone factory is about to start production, and the two production lines will cost more than 200 million yuan."

“After deducting the 20 million yuan interest from Yufu and some market losses, I received a total of 500 million yuan from the fund's exit. I borrowed 400 million yuan from Yufu, and I spent a lot of the 900 million yuan. So where do you think I have the money to buy a license?”

"How about you buy it for me first, and I pay you back in a few months? Or could you help me hold onto it for a bit longer? I'll think of a solution!"

Chen Xuebing shamelessly and openly bargained.

Under normal circumstances, he wouldn't dare to bargain with Boss Huang like this.

But there was nothing he could do; he had earned too much for Yu Fu.

As luck would have it, the day after he sent someone to Yufu, Moutai prices began to surge.

He immediately ordered Chongqing Yufu to transfer all 49 million yuan of its funds to Moutai, and then, within a week, the price rose from 6 yuan to 56 yuan!
(Taking into account the impact of large short-term purchases)
By the close of trading yesterday, Friday, Yufu Capital had already made a floating profit of over 60 million yuan!

He Zhiya cried and called him a stock market god.

At this moment, Leader Huang on the other end of the phone also fell into contemplation. He wondered whether Chen Xuebing had some shady methods or some divine mandate. At the beginning of Yufu's establishment, he had almost drained the financial funds within his authority. Now, it was one of the important funds that he could control. Many of his policies depended on this money, and he felt it was not good to offend this god of wealth.
"Here's what we'll do. I'll have Yufu help you get the license first. You need to raise the funds and get the license as quickly as possible. I'm taking the risk of that. You have to make 1.5 times the money from Yufu by next March."

Upon hearing this condition, a smile gradually appeared on Chen Xuebing's face.

"Row!"

1.5 times? I'll give you a bull market gift package!

(End of this chapter)