Shanghai, in an office of the State-owned Assets Supervision and Administration Commission.
Opposite Chen Feiyun sat several leaders of the State-owned Assets Supervision and Administration Commission, and what they were discussing was about the recent fluctuations in the financial market.
In fact, this should have been the concern of the China Securities Regulatory Commission and the Banking Regulatory Commission. However, due to the particularity of the industries involved, the State-owned Assets Supervision and Administration Commission, which had a close relationship with the Spark Group, naturally became the leader of the resolution team.
"After gathering the early clues, we have basically found out everything now."
Chen Feiyun personally distributed materials to other participants and said:
"According to the information provided by the China Securities Regulatory Commission, most of the capital flows during this period mainly came from a few fixed business departments. This is basically the same as our early judgment. Behind the scenes, Honglin and Blackstone were operating."
"However, they used rat barns on a large scale this time. Objectively speaking, it is very difficult to trace and obtain evidence."
"It is unrealistic to catch them or directly convict them, but we cannot let them go. On the contrary, we should form countermeasures against them as soon as possible."
"This action must be done quickly, because their goal this time is very clear, which is to target several small companies, acquire enough equity through secondary market transactions, and then cooperate with the primary market to finally achieve Hostile takeover.”
"Currently, according to preliminary statistics, their 'hunting' targets basically include all key companies related to launch vehicles and aerospace. Among them, seven companies have direct business relationships with the Long March-9 launch vehicle."
"Once we let them complete the acquisition, we can't say how much loss we will suffer, but there will definitely be problems in future project operations and management."
"So, my suggestion is that all departments should respond quickly. Whether it is using economic means or direct administrative means to intervene, they must interrupt the other party's actions."
After Chen Feiyun finished speaking, everyone in the conference room nodded.
A man wearing glasses looked at the materials in his hand and suddenly laughed and said:
"Don't tell me, this is really interesting."
Seeing everyone's eyes focused on him, he quickly explained:
"Honglin Capital's actions this time basically replicate our M&A operations in North America, especially in the U.S. market."
"White glove trading, using the secondary market to build momentum, releasing restructuring news after the primary market acquisition to raise the stock price to cover costs, and completing industrial integration at the same time are basically the same."
"However, they seem to have overlooked one issue, which is that the current administrative environments in China and the United States are completely different."
"This method works in the United States, but can it really work in our country?"
After hearing his words, Chen Feiyun nodded slowly and replied:
"It works."
"The targets they chose were not large in size, and the plates were even smaller. In fact, if we had not prepared in advance and discovered their moves, most of the acquisitions might have been completed."
"The most typical case is Jiangsu Hi-Tech."
"The price of this stock has fallen by more than 15%, which is a considerable decline compared to the trend in the past few years."
"In general, their movements this time were extremely agile. Of course, this is Hong Lin's usual style."
"Indeed."
The bespectacled man nodded with deep understanding, and the expression on his face became a little solemn.
"In 2003, Honglin Capital participated in soybean futures trading. At that time, we were caught off guard. If Poly Technology had not reached an agreement with Argentina, we would have had a hard time getting through that level."
"In 2006, they started targeting domestic real estate again. Similarly, we only managed to maintain our basic market on the premise of technological breakthroughs and large-scale projects."
"The trader of Honglin Capital in China, the one named Jicheng, I'm pretty impressed with."
"His style is like this. Once he is identified, his movements are fast and fierce, without giving you any time to react."
"He is a very strong opponent - in his previous defeats, he was not defeated by his ability, but by the general situation."
"To be honest, even now, we are not sure that we can defeat him purely by relying on market means."
"So fortunately, we don't really need to rely on market means to compete with Honglin Capital."
Chen Feiyun answered and said:
"I have confirmed with Aerospace Dynamics and the Spark team. Their feedback is that the Chang'e-5 project will be executed according to the scheduled plan, and the probability of problems is very low."
"On the other hand, regarding the LITV technology, which has been the hottest thing recently, Spark's answer is very clear."
"Just two words, okay."
"So, based on the current situation, our strategy is already very clear."
"That is, try to slow down the opponent's progress as much as possible to buy time for the institute."
"As long as the first result appears, all the opponent's strategies will be defeated."
"It's not easy."
In the office, someone raised his hand to interrupt Chen Feiyun.
Then he continued:
"The original intention of the other party's large-scale mergers and acquisitions is the same as our mergers and acquisitions in the United States. Although on the surface it is to pursue economic interests, in the final analysis, it is still for control."
"So, maintaining a balance of power may not be a good thing for us. The shock period is the easiest time to absorb chips. We all know this."
"If you want to fight, you have to kill them all at once. Just fight to the bottom, pull them to the top, and wash out all their chips."
"The only problem is, we don't have that many bullets."
Chen Feiyun nodded in agreement.
In fact, his judgment is basically the same as that of men.
The trading logic of Honglin Capital sounds complicated, but in summary, the route is actually very simple.
First, there was a large-scale sell-off based on the negative news about LITV technology, and then it was to accumulate funds at the bottom and use subsequent developments to boost the stock price and achieve control.
Now, they have just reached the first step. If they want to interrupt their strategy, they can only forcefully pull up the stock price during their aggressive short selling, blow up all their positions, and completely cut off any further trading. possible.
But is this really that easy to do?
In the financial market, there are nothing more than two methods to control prices.
Either play the capital card or the information card.
Now, the other side has invested a huge amount of money and is still taking advantage of the information. If we want to fight back, we must invest several times more additional money.
And doing so is actually "uneconomical."
When an economic measure becomes uneconomical, it is no longer considered an option.
Chen Feiyun frowned and thought for a moment, then said:
"It's not impossible."
"Everyone should take action first, find a few key companies, and communicate well in advance to avoid actual control of the situation."
"In particular, pay attention to greeting the heads of each company and telling them that this matter is definitely not a simple 'business activity', but has a significant impact on our global strategy."
"Awareness must be established first, don't just see petty profits - big deal, they have lost money during this period, and we will use policies to make up for it in the future!"
Having said this, Chen Feiyun paused for a moment, and then continued:
"After these issues are taken care of, I will take care of the rest."
Shanghai, in the office of Redwood Capital headquarters.
Ji Cheng looked at the report in front of him with satisfaction and said to the management representative who was waiting to hear the report:
"Our plan is going very smoothly. The current short position has been invested by 20%, which is slightly lower than the predetermined risk level."
"But relatively speaking, the results we have achieved are better than what would have been achieved with the same amount of money in the budget."
"This illustrates two things."
"First, the Chinese market's confidence in the so-called LITV technology and the Chang'e-5 lunar exploration project is not as firm as official reports indicate. Once there is a disturbance, the number of retail investors who follow the trend will increase rapidly."
"Second, from the perspective of large funds, the main flow of Chinese funds recently has been in US aerospace concept stocks. There is no doubt that this is affected by Tesla's participation in the return to the moon plan."
"Taken together, capital is still smart and will always choose the direction it should go."
"Everything we do is actually just following the trend."
The employer representative opposite nodded slightly, but he did not immediately agree with Ji Cheng. Instead, he asked:
"So your judgment on technology is entirely based on the reaction of the capital market, right?"
"We are very worried about the accuracy of this judgment. What we hope to see is complete and professional due diligence results."
"Here, here."
Ji Cheng pointed to the thick stack of documents on the table, and then continued:
"It's not that we haven't done it, but we feel that the argumentation process is too cumbersome and too professional. It is actually impossible for people in non-related fields to understand it."
"But I can give a basic data, that is: the industry generally believes that if LITV technology is to be realized, it will face at least 15 key technical difficulties."
"Of course, these difficulties are not insurmountable, but each time they are solved, it will take a relatively fixed amount of time."
"Even if we follow the minimum standards, from theoretical research, to testing, to implementation, if we calculate it in two months, 15 nodes will take at least 30 months."
"According to the latest launch plan of Chang'e-5, it should fly to the moon in six months."
"Obviously, at this point, there is a mismatch between expectations and results."
"But this does not mean that there is a problem with China's aerospace technology."
The representative continued to argue.
"Of course! for sure! Otherwise, why would we invest heavily?"
“The problem is, we know this, but ordinary investors don’t know it, let alone retail investors.”
"They will only see that their expectations have been disappointed and that China has not fulfilled what it promised - and this is a huge disadvantage."
"I understand, what you are talking about is the cyclical effect of information lag."
"That's right."
A satisfied smile appeared on Ji Cheng's face.
"Just like raising pigs, retail investors will always rush in after making money, but by that time, everything will be too late."
"They think they are raising pigs, but actually, they themselves are the pigs."
"You are a big pig farmer."
the representative said teasingly.
"You can say that, but if I raise pigs, aren't you the ones eating the meat?"
"I'm just a part-time worker - after this job, I'm afraid I won't be able to stay in China any longer. Are you ready for me to immigrate?"
"Don't worry, it's absolutely fine."
"But I'm curious. Nowadays, the flow of talents to China is a general trend. You actually want to leave?"
Ji Cheng let out a long sigh and replied:
"A place without freedom cannot be my home."
"No matter how strong it is, what does it matter? Even if it reaches my level, it still can't feel any dignity."
"Is it better to live there? At least, I can live like a human being?"
"Maybe."
The representative smiled slightly and did not answer.
Ji Cheng put away the reports on the desktop and his eyes gradually became sharper.
There was only one final week left and he was going to speed up.
As long as you play out all the chips in your hand, you can retire successfully.
After all, this land is not suitable for me, and the sunshine of the west coast is right in front of me.
On the other side, Wang Tielin was staring nervously at the time-sharing chart on his mobile phone, turning a deaf ear to his wife's call.
There were beads of sweat on his head, and the expression on his face was a little distorted.
He was undergoing a huge gamble, and the chips had already been thrown.
There is no room for regret.
Today was not his rest day, but because of the important decision he was about to make, he specifically asked his leader for a day off, hoping to use all his energy and best condition to operate his stocks.
Before the market opened, he imagined that he could buy the stock at the lowest point, and then watch it soar into the sky, locking it directly on the daily limit, helping him achieve his goal of financial freedom.
But the development of things was completely different from what he expected.
Place to buy, fall.
Cover your position and fall.
Continue to cover positions and continue to fall.
He replenished his position five times, and all of his 200,000 yuan had been invested.
But the rebound trend did not appear at all.
A large number of sell orders piled up on the screen. Every time he saw the transaction price jump, his heart throbbed.
Wang Tielin regretted it very much, regretted his impulsiveness, and regretted his blind "trust".
He even wanted to liquidate his position immediately and take out all his money, but the T+1 system made it impossible for him to operate at all. Now, he can only look at his account and walk towards chronic death step by step.
He raised his head blankly and looked at his wife who was watching TV.
He didn't know how to face her or this family.
According to the current trend, there is no suspense about the lower limit the next day. Whether it can be cleared is still a question.
This time, I will lose at least 20%.
40,000 yuan--I can only save so much in a year.
He sighed, sat next to his wife, and wanted to open his mouth, but he didn't know what to say.
His wife turned her head and looked at his face, looking a little confused.
"What's wrong? Are you still not happy after making money?"
"make money?"
Wang Tielin shook his head bitterly and was about to answer, but his wife continued talking to herself:
"Hey, I said you have really good vision. You have gained so many years of skills in vain."
"This LITV just made the news. It is said that the technical verification has been successful and the results will be available next month."
"Didn't you tell me before that whether stocks make money or not depends on technology? Hey, are we rich now?"
"What!?"
Wang Tielin suddenly came back to his senses and asked in disbelief.
"Isn't it a rocket? See for yourself!"
The wife picked up the remote control and changed back to the news channel.
At this time, the content on the news was still LITV.
Wang Tielin was so confused that he couldn't listen to the lengthy technical explanations given by the host.
All he could hear were a few key words.
But those few keywords made his mood that was almost desperate just now reach the top.
He hurriedly took out his mobile phone, and at this time, the time-sharing line had already drawn an almost straight upward line.
An increase of nearly 20%, only two minutes before and after.
Wang Tielin's lips trembled, and after a long time, he stammered out a sentence:
"I knew it. I must trust it!"
(End of chapter)
