The Birth of Shanghai's First Conglomerate

Short dramas, that thing.

The main reason it can't be valued too highly is that its technological threshold is too low.

Anyone with a little filming knowledge can find some new media articles online, adapt them, and start filming.

The reason why Yateng Short Drama is able to make money now is mainly because it was the first to try something new.

To maximize profits at this point, it is necessary to push the company to go public before the policies or everyone else realizes what's happening.

A valuation of one billion is still quite good.

That evening, Guo Ziyi took him and Tong Zhelan to a top-tier private club in Hong Kong.

Chen Pingsheng came here simply out of curiosity. If we're talking about stock market gurus in Hong Kong, Liu Luanxiong is the first name that comes to mind.

During the 08 financial crisis, Xu Pidai, the owner of Hengda Real Estate in mainland China, faced a funding crisis.

It was only with the help of Lau, the tycoon from Hong Kong, that Hengda was able to rise to prominence.

To some extent, Xu Daipi also represents Hong Kong capital.

The situation Guo Ziyi is attending today is not complicated.

It mainly targets a pharmaceutical company in mainland China that is about to go public; calling it a shell company wouldn't be wrong.

The way everyone makes money is simple and highly profitable: they acquire 80% of the original shares of this company at a low price.

Then, over a six-month period, they artificially created positive news.

This drove the stock price up all the way.

For example, they might acquire two decent, high-quality small businesses and claim to be building an omnichannel strategy.

In addition, they would use various methods of passing the buck to drive up the stock price.

Everyone understands the psychology of retail investors: they chase rising stocks, not falling ones.

If this stock can rise for seventeen or eighteen consecutive days, it will attract a large number of retail investors to follow suit and buy.

Once the stock price reaches a certain high level, they will gradually sell off their shares.

To put it bluntly, they're just making money off retail investors.

Once these major players have profited and left, no one will care about the interests of retail investors anymore.

This kind of bookmaker-driven scheme is very common and doesn't require much skill.

As long as you raise 2 billion in cash, you can start the business. In less than a year, 2 billion may turn into 5 to 8 billion.

And these extra billions were naturally taken over by tens of thousands of retail investors.

It just goes to show that the stock market is risky. Anyone who follows the trend and buys into such manipulated stocks will be fine if they can get out quickly.

Running slowly basically means losing everything.

Chen Pingsheng had absolutely no interest in this way of making money; he was simply basing his profits on millions of individual investors.

To be honest, he's kind of like a vampire.

Not only was he uninterested, but Tong Zhelan and Guo Ziyi were also uninterested.

Nobody is short of money, so there's no need to try and make money by trading these junk stocks.

Many shell companies in mainland China are actually manipulated by insiders.

The specific operating methods are actually quite easy to figure out.

To go public, one must go through many review and approval processes.

A shell company certainly doesn't meet the listing requirements, so the only option is to try every possible way to get the key person in charge of the review process in line with the requirements.

The most common method.

Send it to beautiful girls, pure school beauties, female celebrities, etc.

As long as you want it, capital can get you everything.

If beautiful women don't work, then try your children.

After obtaining listing status through underhanded means, they then collude with several market manipulators to inflate the stock price.

In the end, it's always the thousands upon thousands of small shareholders who end up taking the fall.

Chen Pingsheng has always looked down on this kind of way of making money.

Unfortunately, many people still focus their attention on retail investors.

Even if they are found out, it will only result in a fine of several million.

This isn't a severe punishment; it's practically encouraging production.

He listened for a while and then left. The CEO training program lasted three days, and the 9th was only the first day.

The next day, Chen Pingsheng listened attentively to the lecture and took careful notes. The old professor on the stage was not just a teacher; he was also a global financial analysis consultant for an international investment bank.

He has a deep understanding of the economic situation across Asia.

Like Li Ka-shing of Hong Kong who completely withdrew from the mainland real estate market a few years ago, mobilizing hundreds of billions of dollars in cash.

They are heavily investing in infrastructure projects and hydropower in other countries.

The old professor considered it to be a very correct decision.

From a purely business perspective, without considering other factors...

Choosing to exit the real estate market at this time is undoubtedly a very prescient decision.

Also this year, Mr. Ma openly declared that future housing prices would be as cheap as cabbage.

This is hardly a secret in the upper echelons of society.

Chen Pingsheng knows that there are already many big names who are bearish on the real estate market.

The main issue is that high housing prices are affecting population growth, which will inevitably be detrimental to future development in the long run.

The key issue is that housing prices are just like the stock market.

It's okay if prices are driven up, as long as there are enough retail investors willing to buy, the market can still continue to operate.

The current situation is that most families who are able to buy a house own one or two properties.

Even those with less favorable financial conditions bought houses through loans.

Those who still have genuine housing needs can hardly afford to buy a house at exorbitant prices.

The number of houses in China is already enough to house three billion people.

Everyone needs to prepare for the receding tide in advance.

Once housing prices fall, it will inevitably mark a major turning point in the economy.

At that time, all industries will inevitably begin to engage in fierce involution.

No one can escape it.

The main issue is that the entire consumer market will be downgraded as a result.

And the existing market will continue to grow.

In this ebb and flow situation, both traditional industries and internet companies are affected.

The city has officially entered the era of involution.

For example, the catering industry will inevitably start to frantically compete for brands, services, prices, and even the traffic of entrepreneurs.

The most prominent feature of all industries is the word "scroll".

That day may come soon.

Everyone here is a big boss, so let's get ready in advance!
The old professor spoke in a calm and understated tone, yet he conveyed a message that made everyone realize the seriousness of the future situation.

Chen Pingsheng had been preparing for this day for a long time, which was the root cause of all this.

Countless middle-class families have mortgaged their income for the next ten or even twenty years because of housing.

Having spent so much money on the house, it's only natural that he would reduce his spending in other areas.

Once housing prices drop, most people will have to tighten their belts.

Just like the stock market, people tend to buy when prices are rising and not when they are falling. Once housing prices start to fall, transaction volume will inevitably decline as well.

When investors can't come in and houses can't circulate normally, the impact will be on more than just one or two people.

It can be said that housing prices are the most direct indicator of the overall economic situation in mainland China.

Chen Pingsheng wasn't too worried about this day, mainly because his industrial layout was already complete.

He had already bought up prime commercial spaces like Shuiyunjian and Tenghui Department Store in advance.

It falls under the category of self-operated business, and its cost segment is much lower than that of other companies in the same industry.

There's absolutely no need to worry about involution.

The only real concern is catering giants like Boiling Sheep.

Fortunately, he has now reduced his stake in Boiling Sheep to only 5%.

The same goes for Bobo milk tea.

You can handle this day with ease.

(End of this chapter)