America's No. 1 financial conglomerate

Chapter 595 Let Wall Street Go to Hell

June 19, 1998.

Sunlight streams through the huge floor-to-ceiling windows of Lower Manhattan, casting a slanting glow into this café located next to the New York Stock Exchange.

Cassio Chen sat by the window, his fingertips unconsciously sliding repeatedly across the leather-covered menu, the rough edges of the pages already frayed from being rubbed.

His gaze wasn't fixed on the long letters on the menu, but rather through the glass window towards the neoclassical building of the New York Stock Exchange not far away.

The massive columns stand majestically, and people come and go in front of the gate, each footstep carrying the urgency and anxiety unique to the financial city.

The live broadcast of the CNBC channel was clearly visible on the wall-mounted TV hanging in the center of the cafe's lobby.

The anchor spoke so fast it was almost breathless, each word carrying the force of market volatility: "Dear viewers, the Wall Street liquidation war has officially begun! Those institutional investors who were once invincible in the Nasdaq market, frantically shorting, are now like ants on a hot plate."

"According to reports from our reporters on the ground at the exchange, short sellers are being forced to buy back large amounts of the YueDong Games shares they previously sold to cover their positions, but there is an extreme shortage of selling power in the market, with almost no one willing to give up their shares at this time..."

The sound from the television spread through the speakers, and the people in the café who had been talking quietly stopped and turned their eyes to the screen. The air seemed to be thick with tension.

Cassio Chen subconsciously tightened his fingers, his palm holding a crumpled brokerage receipt, the words printed in black ink still clear: stock code lc, purchase price $203.3, purchase quantity 200 shares, transaction date December 15, 1998.

His thumb gently traced the letters "lc," the rough, realistic texture of his fingertips conveying a sense of the stock market's pulse through the paper. This was a transaction he had personally completed at a brokerage firm in Midtown Manhattan last week, when YueDong Games released its annual financial forecast.

For a Chinese American who arrived in the United States from China at the end of 1996 and had been living in New York for less than two years, Cassio Chen knew almost nothing about the American financial market.

Prior to this, he had never even been involved in stock trading, and his concept of wealth had always been limited to savings and real estate.

But after arriving in New York, he gradually discovered that the country's logic of wealth was completely different from the world he had known since childhood.

In the United States, stock trading is no longer the exclusive domain of financial professionals, but a wealth movement in which everyone participates.

Here, when people have idle funds, their first thought is often not to deposit them in a bank to earn meager interest, but to invest them in financial markets such as the stock market and funds, hoping for the compound interest effect of making money work for them.

In daily life, aside from ever-popular sports events and Hollywood entertainment news, stock market topics have always occupied an important place in the social lives of Americans.

Whenever his colleagues gathered together to discuss the stock market and share their investment experiences, Cassio Chen felt like an outsider, unable to get a word in edgewise.

He couldn't understand their terms like price-to-earnings ratio and price-to-book ratio, nor could he comprehend their emotions of cheering or feeling frustrated over a few cents' worth of stock price fluctuations.

This feeling of being out of place, like an invisible barrier, intensified his loneliness in a foreign land.

Many of his friends advised him, "Casio, you should try stock trading; it's part of American life."

His best friend and colleague, Edmund, repeatedly urged him, "Don't stand outside like an outsider, join us! The stock market is like the New York subway; you have to try riding it once to know where it's going." With the repeated persuasion of his friends and his own strong desire to integrate into American society, Cassio Chen finally took this step.

He used almost all of his savings from immigrating to the United States to buy 200 shares of Leap Games.

His thinking at the time was actually very simple: the Americans around him were all talking about the stock market, and it seemed like the only way to integrate into the country's social circle and become a true New Yorker.

But he never expected that this seemingly ordinary attempt would almost push him to the brink of collapse, making him feel like the sky had fallen.

In just two trading days, YueDong Games' stock price plummeted from $203.3 when he bought it to $162, a drop of more than 20%.

For Casio Chen, who was new to the stock market, such dramatic fluctuations in wealth were like a bolt from the blue.

With a holding of 200 shares, he lost more than $40 per share, resulting in a total loss of more than $8000, which is almost equivalent to two months' salary as a mid-level designer.

He spent the entire night sleepless in his small Brooklyn apartment, staring at the brokerage firm's receipt in his hand, his heart filled with regret and fear.

At work, he couldn't hide his depressed mood at all.

Several of his colleagues in the office, who usually liked to tease him, soon learned that he had lost money in the stock market and began to mock him.

"Hey, Chinese kid, how much did your stocks go up?" A Mexican designer who was also his competitor would always ask loudly, his tone clearly mocking.

His colleagues around him would burst into laughter, their laughter like needles piercing Cassio Chen's heart. Just when he thought his first stock investment was destined to end in a disastrous failure, and even began to doubt whether he was suited to continue struggling in New York, things took an astonishing turn of events.

"Hey Chen, what's going on?" A cheerful voice rang out from across from Cassio Chen.

He looked up and saw a typical white American man sitting in the chair opposite him with a smile, his finger gently waving in front of his eyes, and a concerned expression on his face.

"Huh?" Cassio Chen snapped back to reality, his eyes still slightly dazed. He shrugged instinctively and forced a smile. "I'm fine, Edmund."

Edmund White was his best friend after he came to the United States; the two were designers for an underwear brand in New York.

The explosive popularity of Playboy underwear spurred a transformation in the entire underwear industry.

Overnight, old underwear was thrown into the trash can. Women's self-awareness gradually awakened, and their demand for underwear was no longer just about practicality, but also about giving it more functions.

This has led to a rapid increase in underwear sales, prompting many underwear brands to embark on a path of reform.

Young designers like Cassio Chen and Edmund have reaped the greatest benefits from this reform.

Compared to older designers, they are more open to new things and are bolder and more avant-garde.

Although Casio Chen received a Chinese education from a young age, his ancestors had certainly tried their hand at lingerie seduction. At least the lingerie he designed incorporating elements of a bellyband became one of his company's flagship products.

"Then why do you look so listless?" Edmund gestured to the approaching waiter. "An Americano, no sugar, no milk, please."

Then, his gaze fell on the receipt that Cassio Chen was clutching tightly in his hand. A hint of envy flashed in his blue eyes, and his tone was somewhat teasing, "I really didn't expect that your first stock investment would make you so much money."

He leaned forward slightly, elbows resting on the table, hands clasped in front of him, and said with a smile, "Perhaps you should systematically study this subject, Chen. Maybe you were born for this; who knows, you might become a Chinese-American Warren Buffett someday?"

Upon hearing this, Cassio Chen gave a shy smile and gently shook his head. "Don't joke with me, Edmund."

Even though he had only a superficial understanding of the US stock market, he had heard of Warren Buffett's name.

A Chinese-American Warren Buffett?

He never dared to dream of becoming such a legendary figure. His biggest wish in life was actually very simple: to be able to buy a house of his own in New York.

As for the car?

In the United States, this is a consumable item, just like clothing.

"I'm not kidding. At least when Buffett first started investing in stocks, he didn't have such amazing returns as you."

He paused, a hint of excitement in his voice, as if he himself had participated in the investment: "I just passed by the trading floor of the New York Stock Exchange and went in for a look. You have no idea, it's completely in an uproar inside."

"Every screen on the trading floor was filled with buy and sell quotes for Leap Games, the numbers were constantly jumping around, the brokers were frantic, and the phones were ringing incessantly, almost lifting the roof off," Edmund said, gesturing with his hands to try and recreate the chaotic scene. "Shareholders crowded in front of the big screens, their eyes glued to Leap Games' stock price movements, as if watching a performance put on by God himself."

He pointed to the receipt in Cassio Chen's hand. "Do you know what the stock price of Leap Games is now? It's already over $230, and it's still rising. It's about to trigger its second trading halt."

In 1998, the Nasdaq market had not yet introduced a circuit breaker mechanism for price increases, nor did it have uniform regulations on price limits.

However, this does not mean that the market can fluctuate without restraint.

According to the relevant regulations of the U.S. Securities and Exchange Commission and the Nasdaq Stock Exchange, when the price of a single stock experiences an abnormal surge or plunge within a short period of time, reaching the threshold set by the exchange, the exchange has the right to suspend trading of that stock in order to maintain market stability and prevent excessive speculation.

After trading is suspended, the Securities and Exchange Commission will investigate the reasons for the price fluctuations. Trading will only be reopened after confirming that it is a normal market behavior and that there are no violations such as insider trading or market manipulation.

The threshold for triggering a trading halt varies from stock to stock and is determined after a comprehensive evaluation based on factors such as the stock's float, price level, and historical volatility.

Generally, the threshold ranges from 10% to 20%. The threshold for Jumping Games is 20%. Once it is reached, trading will be suspended for a period of time.

"I've heard many financial media analysts predict that YueDong Games' stock price is likely to break through $500 this time, and may even reach $600 or higher."

Edmund's voice trembled slightly with excitement, and his eyes gleamed with anticipation, as if he himself had won the lottery, not Cassio Chen.

"Chen, you bought 200 shares at a price of $203.3. If the stock price rises to $600, your holdings will be worth $12!"

$120,000 is a considerable sum for 90% of American families today. In 1998, the average annual income of a full-time worker in the United States was about $35,000, so $100,000 was equivalent to nearly three years' pre-tax income for an average American.

"Hey Chen, I think you should throw a party to celebrate this historic moment!" Edmund suggested strongly. "Invite your colleagues and your friends over for drinks, a chat, and to share your good fortune."

"Of course, Alvaro is a must."

Alvaro, the designer who mocked him.

"Of course, let's set it for this weekend." Cassio Chen agreed to Edmund's suggestion almost without hesitation.

During his two years living in the United States, although he still retained the introverted and reserved nature of an Easterner in many ways, he had a very high acceptance of American party culture, and could even be said to really like it.

American party culture permeates every aspect of life; almost anything can become a reason to throw a party.

The most ridiculous party he ever attended was one that celebrated the party host's eldest daughter getting her first period.

Another time, a current colleague successfully steamed a pot of rice.

Even though he used a rice cooker, it didn't stop him from throwing a party to celebrate and sharing his white rice with everyone.

"Oh, that's wonderful!" Edmund rubbed his hands together excitedly, his face beaming with anticipation.

Just as Edmund was immersed in his wonderful anticipation of the weekend party, someone in the café suddenly exclaimed, "Look at the TV! CNBS has big news!" This exclamation instantly broke the lively atmosphere in the café, and everyone's attention was drawn to it.

Cassio Chen and Edmund, unaware of what was happening, turned their heads simultaneously and focused their gaze on the wall-mounted television in the center of the hall.

CBS, MGM's news channel, is definitely the highest-rated news channel in the US these past two days.

Because much of the information about Leap Games is exclusively revealed by this channel.

"Dear viewers, we have just received some major positive news about YueDong Games, and we have immediately confirmed the accuracy of the information with YueDong Games' public relations department."

"YueDong Games has officially entered into a global publishing strategic cooperation agreement with Sony Interactive Entertainment. According to the agreement, all online versions of Sony's console games will be exclusively released on YueDong Games' online gaming platform in the future."

"This means that Leap Games will directly benefit from the massive user base of Sony's consoles."

"To date, the cumulative sales of the Sony PlayStation console worldwide have exceeded 5000 million units, which is undoubtedly a historic leap for YueDong Games' platform traffic and revenue growth."

The host's speech quickened: "The financial analysts we invited believe that this cooperation agreement will once again solidify YueDong Games' dominant position on the PC platform, and YueDong Games' market valuation is expected to experience another explosive growth..."

The coffee shop erupted in chaos. Some people stopped listening to CBS's analysis and reports and shouted, "Let that damn Wall Street go to hell!"