The Birth of Shanghai's First Conglomerate

“Oh yeah.”

Erpiya was so excited that she danced with joy. In just one day, one of the stocks she held had surged by 40%.

Including other small profits, I made over 100 million in just one day. That's really awesome.

Making a profit from every dollar earned is somewhat difficult.

Making 100 million from 100 million is a very simple thing.

Of course, it would be even easier to lose all of that 100 million.

This is just like betting on big or small at a gambling table; if you only have one, you can't even get on the table.

Once hundreds of millions are on the table, it often comes down to the cards the dealer holds.

Erpiya is certainly not qualified to be the dealer yet, but her older sister is, though she hasn't been able to get all of it.

When the stock market is doing well, the two sisters are overjoyed; when the stock market is doing poorly, they get just as excited as any ordinary person.

This is all just a process.

To make money in the stock market, the most important thing is to know how to restrain yourself, that is, to control your impulsive desires.

Once you enter a downturn, it's a downturn that lasts for a very long time.

After a period of time, it will rise to some extent.

Let go of what you've earned.

Wait for the opportunity during the downturn, and by repeating this process, you're likely to make some money.

The main reason why it's hard to make money is the same as gambling: you can't control yourself, and it's easy to get carried away when you lose.

Ordinary people usually gamble with tens or hundreds of thousands of yuan, at most a million.

The two sisters used hundreds of millions of dollars.

Learning to control their desires is especially important for the two sisters; their future casino will never be at those small gambling tables.

Rather, it concerns the country's future and a range of global industrial policies.

On a larger scale, they could even set up a scheme to exploit people worldwide.

This is just the first step.

With the summer vacation almost over, Chen An'an happily bought stocks at rock-bottom prices, investing 3.8 billion yuan and now only has 32 billion yuan left.

15% unrealized loss
Erpiya's initial investment of 500 million yuan fluctuated, and now it only has a little over 400 million yuan left, also with a floating loss of 12%.

The stock market is risky, and no one is exempt.

As for Chen Pingsheng himself, he would not waste time on small or short-term shares.

Tong Zhelan had asked him to set up a scheme to short a new energy technology company on Wall Street with a market value of $50 billion.

This company, like Tesla, makes new energy vehicles, but it lags far behind Tesla in terms of sales and global influence.

The most crucial point is that, despite being established for nine years, it has consistently incurred huge losses.

A company like this with a market value of 50 billion US dollars has a high probability of being trampled underfoot.

The domestic market is restricted by rules, allowing only long positions and not short positions.

The concept of short selling is also very simple.

That means finding an institution to borrow shares within the specified period.

If the agreed repayment period is six months, for example, if they borrowed it now at 100 yuan per share.

When the money is returned, it's ten yuan per share, which will make a fortune.

When you borrow, each share costs 100 yuan; when you repay, each share costs 1,000 yuan.

A tenfold difference would bankrupt even short-selling giants.

To put it simply, short selling involves limited profits but carries unlimited risks.

Even if the price drops to zero, a share of 100 yuan will only reach zero. The maximum potential return is roughly 100 yuan per share.

But once you incur losses, things are completely different; a hundred can even rise to ten thousand.

The amount of losses that need to be borne will increase almost a hundredfold.

A similar thing happened once before in the US stock market, where retail investors united in an organized and premeditated manner to fight against Wall Street giants' short-selling funds.

This resulted in these short-selling funds losing over 20 billion US dollars in a single day.

If these short-selling giants hadn't resorted to some shady tactics, many Wall Street short-selling firms would have gone bankrupt and been wiped out during that incident.

Chen Pingsheng didn't like this way of making money, but Tong Zhelan often went gambling.

Of course, she would thoroughly investigate the company before making a bet.

Then, we'll join forces with some Chinese capital to launch a joint attack.

She spent three months on this investigation, and after obtaining detailed information about the company, she approached Chen Pingsheng hoping to collaborate with him.

Because of their long-standing partnership, Chen Pingsheng shared 30% of the successes and failures.

Before short selling, you don't need to invest any money; you just need to borrow shares from an institution.

Tong Zhelan clearly intended to make a big splash this time, borrowing a total of 120 billion US dollars in equity.

The agreed term is six months.

Wall Street isn't very big, and news of Chinese investors shorting a major new energy company spread quickly.

On the first day, Tong Zhelan joined forces with major news organizations to release a series of unfavorable analyses about that new energy company.

The purpose, of course, is to further suppress the stock price.

In addition, she dumped a billion US dollars worth of shares at once to drive down the market.

If more people sell than they buy, the stock price will inevitably fall.

Whenever a listed company encounters a short-selling institution, its stock price will plummet in the early stages.

Whether they can hold on depends entirely on their own strength.

Alibaba once faced short-selling attacks from George Soros in the US stock market.

Every day, billions of dollars go in and out; short sellers have to fight, and Alibaba has to defend.

That's probably what makes the stock market so interesting.

Chen Pingsheng also reviewed the company's details and confirmed that it indeed had little potential and that it was impossible to maintain a market value of 50 billion US dollars solely through its ongoing financing.

Tesla now dominates the new energy vehicle market, with countless other companies eyeing the market.

It's highly likely that this company won't be able to stabilize its stock price, mainly because it doesn't have much internal cash flow.

Tong Zhelan recognized this point, which is why she resolutely joined forces with everyone to launch an attack.

If this were Apple, even though everyone knows its stock price is inflated.

Who would dare to short sell?

Apple's annual net profit of $90 billion is no joke, not to mention its cash reserves of over $200 billion.

To short Apple, you'd need to have hundreds of billions of dollars in cash reserves.

Otherwise, with the money in its own pocket, it could buy as much as the market offered.

Who has the ability to short it?

Even someone as powerful as Chen Pingsheng wouldn't dare to target companies with such abundant cash flow.

The same reason.

For domestic companies that rely on losses for financing, encountering a short-selling giant would be an unprecedented blow.

Tong Zhelan might make billions of dollars this time, or she might lose tens of billions of dollars.

This is also the main reason why she needs to find everyone to share the risks.

There are many ways to play the stock market, and some people who think they are clever have even managed to deceive Chen Pingsheng.

Hopefully, he can take over some low-priced stocks.

This is completely malicious; they've lost money on their own investments and are trying to trick him into taking over their losses.

To be honest, people who have risen to their level are not easily fooled. He then ignored these people completely.

Instead, he dedicated his time to teaching his two sisters how to navigate the stock market.

Time flies, and it's already mid-August.

The news that Tong Zhelan, along with a large group of Chinese capital, shorted a certain new energy giant is still causing quite a stir.

As she predicted, in just half a month, the company's market value dropped from a high of $50 billion to $38 billion.

The drop exceeded 25%.

If the price continues to fall at this rate, they will earn at least five billion US dollars by the end of their six-month period.

After all, many of the shares they borrowed were sold off at high prices.

When the repayment is due, only the low-priced shares need to be returned.

Erpiya wants to learn how to short sell, but she's not qualified at all.

Without substantial capital guarantees, what institution would lend her shares?

She still obediently followed her sister's example and learned to buy more.

During this period, something unpleasant also happened.

The main issue is that a Chinese girl violently assaulted another Chinese girl, and it was even a case of long-term bullying.

Upon hearing the news, the bullying woman arrogantly said, "Hurry up and interrogate her, I need to go back to celebrate my birthday."

In her eyes, bullying international students who are also Chinese is no big deal.

In the end, her parents did not bail her out, and she was sentenced to ten to fifteen years in prison.

The girl was so frightened that she burst into tears on the spot, and it was a heart-wrenching cry.

They probably didn't expect things to get this serious.

It's an interesting phenomenon that some people are used to being arrogant in China, and they act the same way abroad.

They dare not bully white people, but they dare to beat their own countrymen.

As a result, he was taught a new way of life.

This incident has caused quite a stir among international students. The students who were arrested were not simply taken back to their parents for a scolding.

But they really wanted to go in.

Late August.

Chen Pingsheng then took Big Pippy and Little Pippy back to Shanghai on a private jet.

I gained some things during this two-month trip, but not too much. Overall, it was alright.

The children of wealthy families have a far greater exposure to the world than ordinary people, mainly because their parents can take them on frequent trips around the world.

Rather than being confined to a specific place, the difference can be quite significant.

After the two sisters returned home, Chen An'an threw herself into her Anle Group.

Erpiya went to her own big, big company.

The two sisters lost 1.2 billion yuan and 400 million yuan respectively after two months of stock trading.

This is their biggest loss to date, and it would be a lie to say they aren't heartbroken.

This is exactly the same as earning an annual salary of 100,000 yuan and losing 80,000 or 90,000 yuan playing cards during the Chinese New Year.

I didn't realize it when I was betting money, but when I got home and counted the money, I was heartbroken.

The two sisters are feeling this way right now, but he himself is likely to make three or four billion US dollars with Tong Zhelan.

It can be considered a small return.

After returning to his Anle Group, Chen An'an also carefully read many professional books on the domestic stock market.

They were all teaching her how to make money in the stock market.

"An'an, do you still want to win back the money you lost through the stock market?" Shen Youwei asked her earnestly.

Chen An'an shook her head, "I don't have that kind of thinking. My dad said that once the money is lost, it's lost. If you keep thinking about winning it back, you'll only lose more and more."

"Then why are you reading these domestic stock trading books? Besides, when it comes to stock trading, no one in China is better than your father."

"My dad is amazing, not me."

Chen An'an said, "I've learned a lot overseas this time. Putting aside short-term stocks, I'd like to invest in a few long-term stocks and see if I can make money!"

"You should ask your father about investing in long-term stocks. Most of the employees in the group follow your father's lead when it comes to stock trading. Even the drivers can earn hundreds of thousands or millions a year."

“I can’t rely on my father for everything, especially at this stage of my studies.”

Chen An'an has her own ideas. She wants to hone her skills on her own during her studies. She will only start learning from her father after she graduates from university and starts working for the group.

Shen Youwei understood her. The young lady had been trained by the big boss since she was five years old, and she could be said to be very outstanding now.

Perhaps he can truly succeed if he waits a few more years.

Erpiya is different from her. Erpiya has a very strong competitive spirit. She will get back up wherever she fails.

As you climb, the pit gets bigger and bigger.

The biggest misconception among the children of the wealthy is that I need to work hard.

The price of all that hard work was that we had only lost 400 million, but then we got another 100 million from our sister, and then we went to our father and begged for another 200 million.

Then he went to his mother, hugged her leg tightly, and got another 1.5 million.

For her, anything less than 100 million wasn't even pocket money.

Not to mention investing.

The harder you try, the bigger the hole gets.

Finally, she got so angry that she simply lay down and obediently became one of the three spendthrift CEOs.

Surprisingly, after lying down, I started making money.

Erpiya concluded from her experience that one shouldn't be too hardworking...

Especially for the children of wealthy families, they shouldn't work too hard.

Chen Pingsheng didn't pay much attention to them. Now that they've returned from overseas, the two sisters will be starting school in a few days.

He also attended a CEO training class in Shanghai. The once-glorious real estate developers collectively went bankrupt. In times of change, no one knows who will be the next to be eliminated.

Without a doubt, the land rent economy in China has come to a complete end.

Along with consumption, a whole series of industries related to real estate have suffered a severe downturn.

Under such circumstances, many large amounts of capital unconsciously want to flee abroad, and the more they flee, the bigger the pit becomes.

His own money actually flows inland, especially the money he earns on Wall Street, which is mostly invested domestically.

Nothing particularly noteworthy happened at this gathering, except that some people were already in dire straits and were on the verge of bankruptcy if they couldn't get funding soon.

Whether in mainland China or Hong Kong, housing prices are declining, and according to Chen Pingsheng's estimate, they will not finally stabilize until at least 2028.

This means squeezing out the bubble in the real estate market.

There are still five years until 2028, which means that in these five years, life will only get harder for most people.

Once housing prices stabilize, he will still allocate some funds to repurchase some commercial real estate.

As for now, no matter what others say, he's not going to put up any money and become a white-robed savior.

In 19 and 20, quite a few white-clad heroes emerged who wanted to pick up bargains, but now they are deeply locked up.

The only reason they can still breathe is because those above can't see so many real estate tycoons going bankrupt at once.

The difficulties facing the real estate industry are beyond imagination, and no one knows what the future holds.

In September, he planned to cash out some of his stocks.

The funds are mainly used for donations and supporting the AI ​​industry.

(End of this chapter)