Those Years When I Was Forced to Top the Forbes List

Chapter 382 Trusts, QDII
The next day.

The sunlight began to take on a distinct color, and by the time it seeped in, it was almost noon.

Mr. Chen opened his eyes groggily, feeling refreshed.

Xin Mengzhen's profile was still pressed against the pillow, her eyelashes casting tiny shadows under her eyes. Her breathing was slow and even. The blanket had slipped down to her waist, revealing a waist and back with no excess fat, like a mountain stream or flowing water.

If it were Mr. Chen, who is approaching 40, after a night of revelry, he would get up at this time to make a cup of goji berry tea to nourish his body.

But 21-year-old CEO Chen only felt that he was very strong, closed his eyes again and pretended to be asleep, secretly reaching out his palm towards the idea that human nature is inherently good.

Sleeping Beauty, with her eyes closed, precisely grabbed his wrist.

"To take a bath."

"I've washed!"

I showered when I entered the room, but not before going to bed.

"Okay, okay, let's take a bath."

Mr. Chen got up awkwardly.

Actually, I don't have much desire right now. I've already vented everything I needed to last night. I just wanted to make the other person submit to me again.

But Xin Mengzhen is only a nineteen-year-old girl, so she doesn't really need it.

When Chen Xuebing came out of the shower, Xin Mengzhen had already put on her dress again and was sitting on the sofa taking a nap—the budget hotel didn't have pajamas.

Her eyebrows were a little lighter than yesterday, but she was still incredibly beautiful.

"I've moved to Shanghai," Mr. Chen said with a smile, straightening his tie.

"It wasn't moved for me." Xin Mengzhen's voice was languid.

"Half."

Chen Xuebing knew he had been too eager last night, and now was the moment he needed to prove his feelings. He walked to Xin Mengzhen's side, put his arm around her neck, let her head rest on his waist, and said again, "I really missed you."

Older men only have a limited vocabulary to express their feelings; making it complicated would seem pretentious. Xin Mengzhen was quite accepting of this and leaned against it quietly for a while.

"Are you busy?" Xin Mengzhen suddenly asked.

"Nothing much is happening today. Liu Chuan will come to the company this afternoon to sign a contract with me. It'll be a few hours."

"Then sit down, let me lean back for a while."

"Are you too tired?" Chen Xuebing sat down and smoothed the hair on her forehead. "Manufacturing is much more tiring than investing, and it's not suitable for you. Go do investing instead. With me here, you won't starve."

Xin Mengzhen shook her head, opened her eyes, and slowly said, "It's great. It's more meaningful and reassuring than investing, my grandfather said."

She paused, glanced at Chen Xuebing's expression, and seeing no change, continued, "Investment has its ups and downs, but technology production can always make money. However, the electronics market belongs to young people, and he thinks I have better vision than Dad and Uncle."

Chen Xuebing raised his eyebrows and nodded: "He's right."

"Hmm?" Xin Mengzhen stood up, a curious smile playing on her lips. "You're not sensitive to him anymore?"

"You mean he looks down on me?" Chen Xuebing laughed back: "How can a giant Kun lament the sigh of a crucian carp?"

He didn't look down on you.

“I don’t care, and you don’t need to care either.” Chen Xuebing squeezed Xin Mengzhen’s hand and said, “If there is any resistance from your family, just go out and start your own business. Anyway, your grandfather transferred your dowry to me back then, 1100 million yuan. I helped you multiply it more than tenfold, which is enough for you to start your own business.”

Xin Mengzhen took a deep breath in surprise, then her cheeks gradually warmed up: "What dowry? I don't want it."

“That’s true, you can’t return a dowry.” Chen Xuebing grinned.

Xin Mengzhen smiled a long-lost happy smile, then, remembering something, she turned to look at Chen Xuebing, her eyes deepening, and a slight smile appeared on her lips: "Where is Qingyue?"

Chen Xuebing's smile remained unchanged, and he did not answer.

Although some of his issues are now purely legal rather than technical, he is still prepared to be slapped.

Xin Mengzhen did not show anger, disappointment, or anything else. Her maturity and experience far exceeded that of ordinary people. In Hong Kong and Malaysia, she had met people who had several wives.

However, this does not mean that she can accept it. She just thinks that the current situation between her and Chen Xuebing is not solely Chen Xuebing's fault.

She was also unwilling to wake up for the time being, and did not want to become strangers with him again. Chen Xuebing was the person who completely changed the trajectory of her life. To her, he already meant a lot. He was not a frivolous young man she had fallen for in a moment of youthful infatuation, but a man whose future was beyond the reach of her family.

Chen Xuebing gave her a great sense of security.

Being with him might mean we don't have to get married.

"Don't tell Qingyue about what happened between us."

Chen Xuebing's smile gradually spread, reaching deep into his eyes. He felt he couldn't be too shameless, so after thinking for a moment, he said, "Actually, I've thought about it. I might not be suitable for marriage. Some of my current assets involve national technological security. If they were to be divided, it would be an irresponsible act."

Anyway, marriage is something to consider a few years from now, so I'll just keep lying to myself for now.

This seems very "fair".

Xin Mengzhen was very direct: "You don't need to comfort me. Just sign the prenuptial agreement. Qingyue is very obedient. She will listen to you and agree."

The more she cared about something, the less Xin Mengzhen wanted to leave herself with any expectations.

Chen Xuebing was at a loss for words.

So he changed the subject: "What's wrong? You're not listening?"

"I won't listen." Xin Mengzhen turned her head, slightly raised her chin, and said with a provocative smile, "You have to give in to me, listen to me, protect me for the rest of your life, and treat me well. That's what you owe me."

These words didn't sound like Xin Mengzhen's style; they sounded more like a vow from some kind of ritual.

Chen Xuebing nodded solemnly: "Okay, I promise you."

“You’re not allowed to leave unless I terminate the contract myself,” Xin Mengzhen said again.

"Okay." Chen Xuebing met her earnest gaze, felt a little moved, and reached out to embrace her.

"No, you can't do that now." Xin Mengzhen stood up and grabbed Chen Xuebing's dark blue tie. "I'm hungry. Come with me to eat. This tie isn't a nice color. I'll buy you a new one later."

I'm hungry too.

"listen to me."

"Alright, alright, let's eat."

After Chairman Chen signed the contract with Liu Chuan at the company in the afternoon, he disappeared for two days, which was quite unusual. When he returned on March 13, he seemed like a completely different person.

Kiton K50 full-lined custom suit, Brioni seven-pleat shirt, John Lobb Prestige Line crocodile belly leather Oxford shoes.

She also changed to a square Grand Seiko watch on her wrist.

As soon as he met Kan Zhidong on the floor, Old Kan started to say "yo yo yo".

"You look much more energetic! Are you wearing a custom-made outfit?"

Some things are expensive even if you can't pinpoint exactly where they're expensive.

Chen Xuebing grinned: "An Italian suit, British shoes, a Japanese watch—three great powers serving us, how impressive is that?"

I actually bought a lot of more expensive things these past two days, all of which are in that apartment in Renheng Riverside City.

He has a new home in Shanghai.

He and Xin Mengzhen were both rushing to work this morning, while Lin Huixiang, who was free, was currently arranging for a wardrobe store to make a wardrobe exclusively for him.

A whole bunch of clothes and a few watches, none of which belong to the top luxury category, and some are not even luxury items, but the workaholic Ms. Xin specially took a day to accompany him to carefully select them one by one, spending more than 170 million yuan.

In Xin Mengzhen's words, "We've already ordered a Rolls-Royce, so what's a little more? We don't need to blindly pursue price, but we need to be particular about our work attire."

Chen Xuebing didn't really feel anything when he swiped his card.

This is too little.

He wasn't particularly interested in shopping in the past, not because he lacked the desire to consume, but because his desire was too strong. Only investing, and increasingly larger investments, could satisfy his ever-growing desires.

His subordinates were also well aware of his spending habits.

"Right, spend more time shopping for clothes and stuff! Stop staring at those listed companies' data all day! The money you spend on one company could keep you shopping for years! The loan is coming through soon! 25 billion! We finally managed to scrape together an extra 500 million, don't spend it all at once! Keep some money in the group's account! You promised to invest in more labs for Qidian!"

Kan Zhidong earnestly reminded him.

Chen Xuebing laughed: "Don't worry, I definitely won't be voting this year."

He hasn't announced the investment in Alibaba to the group's senior management yet. A $10 billion investment would make everyone furious if it were mentioned.

Anyway, Alibaba and Yahoo's negotiations will require several board meetings before things can proceed smoothly, which will take some time. Let's wait until the stock market recovers a bit before making any decisions.

"By the way, has the trust document been released?"

"It's out! It was sent yesterday! Wait a minute!"

Kan Zhidong hurriedly returned to his office and retrieved a document.

Chen Xuebing quickly flipped through the list and found three key points.

Investment scope: Investment in overseas fixed-income products (bonds, notes), stocks (limited to public offerings), and money market instruments is permitted.

Quota management: An approval system is implemented, and an application for a QDII (Qualified Domestic Institutional Investor) investment quota must be submitted to the State Administration of Foreign Exchange.

Currency settlement: Funds can be raised in RMB or foreign currency, and overseas investment income needs to be converted into RMB and repatriated.

The reform and opening up of domestic outbound investment has finally arrived.

Following the QFII (Qualified Foreign Institutional Investor) system in 2002, QDII funds have also been gradually liberalized.

Chen Xuebing immediately arranged, "I just received definite news that this time, in addition to the eight trust companies that have obtained quotas, Shanghai Trust has obtained a quota of US$10 billion. You need to contact them. For the next overseas investment, we can cooperate with them, namely that company ARM. The time is probably in June, but you should not disclose the specific target yet."

The specifics of ARM's investment and its collaboration with Masayoshi Son, including the amount of investment, are still uncertain and will depend on Son's negotiations.

This was a large sum of money after all. He initially thought of raising the funds himself, but Alibaba was going to be listed in Hong Kong and the funds raised would be in Hong Kong dollars. He didn't need to convert the currency back to China; he could exchange it with Alibaba or invest with Masayoshi Son using RMB.

Now that overseas channels for trusts have been opened, you can use a Cayman Islands company to find an institution overseas to cooperate on an investment product, and then find a trust with a quota to borrow a channel to directly raise funds from within China for investment.

This is a rather complex process. The core issue is to avoid the regulations governing trust investments. Whether ARM's investment of several hundred million US dollars is a direct investment or a financing deal will have a significant impact on its future liquidity. It should be carefully planned.

If they can raise funds, they should try to solve the problem through financing. As long as they have control at each level, it's just a matter of paying some trust financing channel fees and interest, as well as cooperation fees with mainland trusts. When they have enough US dollars, they can take back the equity from this overseas product.

The overall cost should not exceed 25%.

This cost ratio is high, but it's nothing compared to his return on investment.

"We submitted the first batch of trust financing plans ahead of schedule, and the China Banking Regulatory Commission should have already approved them. We will start operations soon."

"How much should we raise?" Kan Zhidong asked.

"Open up the financing! This time, we won't go through banks; they're too slow. We'll go to our existing clients. Within ten days, we'll raise as much as we can. If the financing exceeds 15 billion (two hundred million US dollars), I'll immediately discuss revising the contract with Goldman Sachs! By the way, is the special trust investment fund ready?"

The maximum number of investors in a trust is 50. Even if 50 people each invest 2000 million, the total investment would only be 10 billion, which is far from enough. Therefore, using a fund as a middleman is crucial.

"It's approved! Only one fund can take up the trust investor slots, so the trust still has 49 slots left. As long as the number of investors is within 249, it won't exceed the limit!"

"Contact all clients in Shanghai, Chongqing, and Shenzhen, and tell them that the investment return period is about one year, with a minimum return of 15% and a maximum of 100%, most likely 100%! The fund only accepts investments of over eight million, and the trust direct investment is over ten million. We will try to fill all 249 slots."

Investing in funds is different from investing directly in trusts. Funds have a basic management fee, and the returns are slightly lower.

It was unusual for Chen Xuebing to have Changzheng give clients a notification that "there is a high probability of a 100% return." This was because the limited number of slots this time meant that investors had very high net asset value requirements, and Goldman Sachs' contract was also very tight. Without some exciting news, they couldn't attract so many ultra-high-net-worth clients.

"no problem!"

Kan Zhidong left in a hurry.

Chen Xuebing returned to his office and called Rong Xianwen over to inquire about the progress of the trust company's preparations.

"In accordance with the 'Administrative Measures for Trust Companies' and the 'Administrative Measures for Collective Fund Trust Plans,' we have submitted the trust contract, the subscription risk declaration, the due diligence report, and the explanation of the use of funds to the China Banking Regulatory Commission."

“I have also inquired about the new regulations on related-party transactions. In addition to approval by the company’s board of directors, each transaction must be reported to the China Banking Regulatory Commission. Transactions exceeding 5% of net assets require approval, and information disclosure must be specifically explained in the annual report. We need to raise a large amount of funds from Gu’an Construction, which requires both increasing the trust capital and the net assets of the construction company.”

"Currently, there are no specific regulatory rules or window guidance for cooperation with banks in sales. We can contact the branch level directly. After I complete the fundraising for the first trust plan, I plan to visit major banks in Shanghai next month."

"I've already found a Chief Risk Officer and a Chief Compliance Officer. As for the Chief Financial Officer, I think it's best if the group or General Manager Kan appoints one."

After listening to the report, Chen Xuebing had a better understanding of the situation and made the arrangements: "You are affiliated with Changzheng Fund to facilitate fundraising through collusion with the Changzheng Fund, not to be completely under Changzheng's command. Trust fundraising has a very wide range of directions, and each direction needs to correspond to an independent trust plan and specific product, each with a dedicated person in charge. Your legal risks are high, and you need to exist as an independent institution. The financial system you will need in the future will also be exceptionally large. The investment analysis department can be temporarily set up, but other departments need to be strengthened as soon as possible. You can choose a CFO yourself, someone who is easy for you to work with. Headquarters will assign you a deputy CFO."

"Xianwen, as the general manager, you need a lot of connections. You should visit PwC and your family's connections more often in the future. This is not about asking for favors, but about mutual benefit."

Rong Xianwen smiled and nodded: "Understood."

(End of this chapter)